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