Week 89 (28.12.08)

Learn (Exploring Corporate Strategy - Strategic Choice, Pg 21)

Strategic analysis provides a basis for strategic choice.

1. Identifying bases of strategic choice.

• Some of these bases of strategic choice arise from an understanding of stakeholder expectations and influence; and it may be important to reflect these in statements of strategic mission and intent which provide overall guidance about the nature of aspirations of the organisation.
• There are also bases of strategic choice in terms on how the organisation seeks to compete, at SBU level.
• This requires an identification of bases of competitive advantage arising from an understanding of both markets and customers, and special competences that the organisation has to offer which contribute to its generic strategy.

1. Generation of strategic options.
2. Evaluation and selection of strategic options.

• In deciding between options, we have to ask a series of questions.
• First, which of these options built upon strengths, overcame weaknesses and took advantage of opportunities, while minimising or circumventing the threats that the business faced?
• This is assessment of the suitability of the strategy. (If the resource capability can be developed, or "strectched", to yield new opportunities)
• Second question is to what extent could a strategic option be put into effect? These are questions of feasibility.
• Eg: Could required finance be raised, sufficient stock be made available at the right time and in the right place, staff be recruited and trained to reflect the image was trying to project?
• Even it these criteria could be met, would the choice be acceptable to the stakeholders? Would this be acceptable to the corporate centre? All these acceptable risk is an important criterion.

Useful though such criteria of evaluation are, there is unlikely to be a clear-cut 'right' or 'wrong' choice because any strategy must inevitably have some dangers or disadvantages.

So, in the end, choice is likely to be a matter of management judgement. It is strongly influenced by the values of managers and other groups with interest in the organisation, and ultimately may very much reflect the power structure in the organisation.

Unlearn

NIL

Relearn

Strengthen learning from the past.

In making a clear strategic choice, we must know clearly the strategic intent's of our organisation. In meeting Pfizer's purpose and mission, our strategic intent is to deliver high value of dividends for our stakeholders through innovating new medicines and achieving the aspirations of delivering fast medicines to our patients via new business units structure.

Week 88 (21.12.08)

Learn (Exploring Corporate Strategy - Pg 19)

• The mission of an organisation tries to encapsulate its purpose.
• The issue of corporate governance is important.
• The question is: which stakeholder group should the organisation primarily serve and how should managers be held responsible for this?
• The expectations of different stakeholders affect purpose and what will be seen as acceptable in terms of strategies advocated by management.
• Which views prevail will depend on which group has the greatest power, and understanding this can be of great importance in recognising why an organisation follows the strategy it does.
• Cultural influences from within the organisation and from the world around it also influence the strategy an organisation follows. All of this raises ethical issues about what managers and organisations do and why.

Together, a consideration of the environment, strategic capability, the expectations and the purposes within the cultural and political framework of the organisation provides a basis for the strategic analysis of an organisation.

Hence, Is the current strategy capable of dealing with the changes taking place in the organisation's environment? Is it likely to deliver the results expected by influential stakeholders?

Unlearn

NIL

Relearn

Reflecting on what i have learnt above; Pfizer's mission is encapsulating its' purpose. Our mission and purpose as below:

Our Purpose:

Work Together For a Healthier World

Our Mission:

Applying Innovative Science to Improve World Health

The corporate governance for the pharmaceutical industry is the requirements for all ethical companies to comply to the Pharmaceuticals Association of Malaysia's (PhAMA) Code of Conduct and the Foreign Corrupt Practices Act (FCPA) in the United States.

Week 87 (14.12.08)

Learn (Exploring Corporate Strategy - Pg 19)

The resources and competences

• makes up its strategic capability.
• Just as there are outside influences on the organisation and its choice of strategies, so there are internal influences.
• One way of thinking about the strategic capability of an organisation is to consider its strength and weaknesses (what it is good or not so good at doing, or where it is at competitive advantage or disadvantage).
• Strengths and weaknesses are resource areas of a business, such as its physical plant, its management, its financial structure and its products.
• Competences which provide real advantage are "core competences" - are more likely to be activities, know-how and skills which in combination provide advantages for that organisation which others find difficult to imitate.
• Here, resources and competences are seen as not so much to be "fitted" into environmental opportunities or demands; but rather to be "stretched" to create new opportunities.

Unlearn

NIL

Relearn

Reviewing Pfizer's (M) resources and competences in identifying our competitive advantage and disadvantage in order to be "stretched" to create new opportunities.

Strength
Strong Financial resources
Biggest Sales force
GFK customer satisfaction survey - 1st in 2007 survey
No 1 since 2000
Patented & established products
Established Company with strong support from various department
Good Corporate image
Leader in driving corporate governance ie GPIHP, FCPA, PhAMA

Weakness
High turnover of sales rep
Lack of products' pipeline
New & inexperience Middle managers - new management
Poor Talent Management & Not concrete succession planning
Lost of government tenders (Value RM100million)
Uncertainity in Biz Structure
Lack of interdept communications
Poor colleague engagement

Opportunities
Oncology products
New marketing initiative – Pfizer Value Program, Branded Value (generics)
Asia Strategy
New product launch – Lyrica, Eraxis, Maraviroc,
Compete for Government tender


Threats
Pressure to reduce price
Price War with generics
Government efforts in promoting generics
Reduce antibiotic use to reduce resistance
Champix – low support from Gov & public
Outsourcing to continue

Week 86 (7.12.08)

Learn (Exploring Corporate Strategy - Strategic Analysis, Pg 19)

• The aim of strategic analysis is, then, to form a view of the key influences on the present and future well-being of the organisation, and what opportunities are afforded by the environment and the competences of the organisation.

The environment

• The organisation exists in the context of a complex commercial, economic, political, technological, cultural and social world. (PESTLE)
• Many of those variables will give rise to opportunities and others will exert threats on the organisation.

Unlearn

NIL

Relearn

Scan the current environment status following PESTLE:

Political

There will be a change of Prime Minister in March 09. Unsure how it will affect healthcare industry, most probably not much impact.

Economical
Economic growth 2009 - 3%
Economic growth 2009-2013 - to find out
Inflation rate - 7.6 % (Oct 2008)
GDP - 5.9%
Per capital drug expenditure rise – reason purchasing power & private insurance increase, gov shift drug cost to pts.
Msia is the fastest growing pharmaceutical market in asia pacific ( BMI chp 5)
Pulling out of foreign investor - due to global economy recession
Discuss on 9th msian plan – what is the helping factor for the healthcare industry.

Socio-cultural
Prevalence of Diseases
Presentation rate of patient seeking treatment in Government Hospital vs Private Hospital
Health Insurance growing - really growing?
Total population
Population by age group (important for champix)

Health warning label on the harzardous of smoking – government’s move of anti-smoking

Technological
Robotic surgery
Drug info & disease awareness via Internet
Paperless hospital - e-prescribing system

Legal
No protection from government on patent products
Counterfeit enforcement insufficient – (code value from BMI)
Asean Free Trade Agreement (to find out more)
PhAMA code of Conduct not practiced by all – not standardized

Week 85 (30.11.08)

Learn (Exploring Corporate Strategy - Chapter on Strategic Analysis, Pg 18)

• Strategic analysis is concerned with understanding the strategic position of the organisation.
• What changes are going on in the environment, and how will they affect the organisation and its activities?
• What are resources and competences of the organisation and can these provide special advantages or yield new opportunities?
• What is it that those people and groups associated with the organisation - managers, shareholders or owners, unions and others who are stakeholders in the organisation - aspire to, and how do these affect what is expected for the future development of the organisation?

Unlearn

NIL

Relearn

When reviewing our group SALP project, these 3 points of "changes in environment", "resources and competences of the organisation", and "people and groups associated with the organisation" are taken into much consideration in recommending strategic choice as a basis for Pfizer's competitive advantage.