Pfizer: Weaknesses and Threats
Even the strongest companies are not immune to problems. Internally and externally, Pfizer has to deal with negative factors on a daily basis. They range from minor routines like keeping enough pencils in the secretaries' supply closet, to major re-structuring strategies such as mergers. Since every company is faced with these decisions, the way the company responds to each situation is what determines if they will continue to prosper or if they are committing to their demise. This paper will touch on some of the major weaknesses and potential threats Pfizer's human pharmaceutical division is currently in the process of dealing with.Like all other pharmaceutical companies, Pfizer constantly battles with decisions about inventory. When a small drugstore or pharmacy orders drugs to stock their shelves, usually it is in relatively small quantities that will turnover in a matter of months then they reorder. This way they don't risk losing inventory to expired medicine when demand is low. On the other hand, large drug producers such as Pfizer, have to keep warehouses full of medicines ready to ship. If something decreases the drug demand, the inve
The merger scare with Merck was the figment of a creative imagination, however, in early November, Pfizer shocked everyone with the hostile takeover bid for Warner-Lambert. Pfizer's $74 billion bid came after a press conference for Warner-Lambert Co. and American Home Products Corporation that announced their plan for a friendly $70 billion merger. Then they increased their bid to 82.4 billion dollars but it was still refused. Pfizer's hostile move surprised many in the industry including analysts. CEO William Steere had always claimed that "mergers [were] usually done out of weakness."3 One of the immediate effects of the takeover bid was a sudden drop in Pfizer's stock. The shareholders have the same kind of panic reaction as do employees when there is talk of a rumor. Nobody wants any ownership in a company that may be facing severe complications ahead. Recently rumors of merger have run rampant in the drug industries. Pfizer has been at the center of several such rumors. At some point around June 1998, rumors of a merger with Merck were being whispered at water coolers all through Pfizer's corporate structure. These rumors were unfounded and CEO William Steere refuted them saying "[That rumor had ] no basis in fact." A merger rumor in a major corporation is a huge source of gossip and can drastically lower morale within the company. If people are worried whether or not they will have a job tomorrow, they certainly aren't concerned with how the company will fare. Their survival instinct kicks in and instead of writing up reports, they will be flipping through the classified want ads looking for another more stable job.
Some common words found in the essay are:
Weaknesses Inventory, FDA Panels, Trovan Ltd, William Steere, HMO's Pfizer, Weaknesses Threats, Consider Pfizer's, Johnson Glaxo-Wellcome, Products Corporation, Department Justice, fda approval, rumors merger, insurance companies, ceo william steere, pharmaceutical companies, company facing, william steere, pharmaceutical industry, testing testing, warner-lambert co, takeover bid,
Approximate Word count = 1415
Approximate Pages = 6 (250 words per page double spaced)
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