In this paper, a discussion regarding a company is going to be elaborated on while considering its current strategic and management position. The paper is aimed to review an article related to the business of Pfizer which can be regarded as one of the largest pharmaceutical businesses in the United States. By considering the current business situation of the company and the industry, it can be stated that a challenging phase is being gone through by the business and the other entities associated with the industry. The company is facing a great challenge as the industry is getting considerably competitive. On the other hand, the business is facing a significant issue while keeping the price of their items considerably high. One president of the United States has tweeted that the company is requiring more prices than normal, and they are doing injustice to poor people by doing the same. It can be regarded as a great challenge for the business. Along with that, the US and EU markets have some differences in regard to the marketing environment and it is causing a significant issue in regard to the process of running the business smoothly. By considering the scenario, a discussion is going to be elaborated on that would show how the business is strategizing, missioning vision, and working by considering these market-based issues.

 

Section 1: Strategy

1.1 Strategizing: Puzzle

The business market is getting highly competitive and that is why businesses are facing the requirement to adopt effective strategies (Mosteanu et al., 2019).  By considering the case study it can be concluded that the strategizing problem of the business is a puzzling type. The puzzling problems are referred to as challenging problems that can be resolved with an optimised solution. Pfizer has always been the market leader when it comes to the overall revenue generated per year. Besides all these Pfizer has several setbacks and its competitors were giving it a tough time and coming close to the leading position. When Pfizer drug patents were about to expire the other competitors were about to enter the market which is considered to be a greater problem. The increase in production always demands pneumatical needs and people nowadays also prefer early checkups because of the awareness and the importance of health being the first priority. There are mainly two types of drugs that are available in the market: prescribed drugs and over the counter drugs. Prescribed drugs are the drugs that are only prescribed by the doctors and on the other hand, OTC is the drugs that can be purchased without a prescription (Renate Kratochvil and Phillip, 2019). The main problem arises for Pfizer when their drug patents expire and they need to think out of the box and come up with something new that can give tough competition to the competitors. So to overcome the same Pfizer came up with an idea to focus on cancer drugs which were a great success. The cancer treatment drug was accepted by the FDA in the year 2015 and its sales jumped sharply as accepted. By considering the above-mentioned facts it can be concluded that Pfizer has a puzzle strategizing aspect and that got resolved by introducing the new cancer drug which helps them to rule the market and give tough competition to its competitors and also boost the revenue of the company. By analysing the way they are doing their business and dealing with any challenging situation, it can be stated that they are using a diversification strategy, and it means that they are working on an optimal solution based on the problematic situations, and it has been contributing to be business success until the incident of 2018. It means that the puzzle strategizing approach is being considered by the business.

1.2 Missioning and Visioning: Puzzle

Considering the case study, As per the Mission is concerned it can be said from the case study that Pfizer is always forced on the acquisition and trust merger of companies that always boost the existing strategies. Its mission is to expand its business by introducing new drugs and vaccines to the market. Pfizer is more into prescribed drugs that cannot be purchased without the doctor's prescription. They always try to make innovative drugs as it is patent protected as compared to generic drugs. Pfizer always considers working on the drugs where they can rule the market and other competitors have no option to be near them. One of the innovative drugs that they created is breast cancer drugs and different kinds of other vaccines. Pfizer is expanding their business in such a way by making innovative drugs in therapeutic areas like immunology, metabolic disease etc. so that they can grab the market and be on the top list for higher selling drugs. On the other hand, their main vision is to rule the market and earn revenue every year.  From the case study, it is justified that Prevnar vaccine is the top-selling drug for Pfizer for the year 2017 (Renate Kratochvil and Phillip, 2019). Pfizer's core business is drugs and they are expanding it in such a way that no other competitors can come near them when it comes to selling prospective. Both their mission and vision can be considered optimal and they are also not creating dilemmatic situations in their mission and vision. Hence, it can be stated that any problem related to mission and vision has an optimal solution, and it is the main feature of a puzzling problem. So by considering all the points it can be stated that Pfizer had a good vision regarding their drugs and policies to make it better every year. Pfizer is investing in prescribed drug innovative drugs every time and with the help of that, they can rule the market without any competitors.

 

Section 2: Content

2.1 Business level: Puzzle 

By considering the case study, it can be stated that the problem is puzzling with respect to the business model of the organisation. The business level can be regarded as the foundation of key business activities (Fatehi and Choi, 2019). In this regard, the business model of a particular pharmaceutical department is going to be considered and the business model of the drug manufacturing unit is being considered here. They are considered innovative, and that is why any problem related to the business level should have an optimal solution that can be offered by this manufacturing unit, and it implies that the problem is puzzling in this case. Pfizer always tries to introduce innovative drugs where there is no competition in the market like the breast cancer treatment drug in the year 2015 which can be considered to be a masterstroke as there are no other competitors in this particular field (Renate Kratochvil and Phillip, 2019). Cancer medicines are very demanding all over the globe and due to this the selling price also increases with time making the sales rate go very high. By considering all other threads in this article it can be stated that Pfizer's drugs costs are very high as compared to the other pharmaceutical companies, but as Pfizer always makes innovative drugs they face no problem in the market as there is no competition. While other companies deal with generic drugs only, it becomes a plus point for Pfizer to rule the market and be on the top. The global sales rate of Pfizer increased every year in huge numbers irrespective of their prices as cancer units drugs are considered to be most demanding and where other pharmaceutical units failed to fulfil the demand Pfizer always comes to the rescue. There are many ongoing projects Pfizer is currently working on and one of which is sickle cell disease which is an inherited red blood cell disorder that will be another masterstroke if innovative medicine is considered as there will be no competition in the market.

2.2 Corporate level: Dilemma

By considering the case study, it can be stated that the corporate level related area of the business is in a dilemma. In this type of dilemmatic problem, the company has to choose between two alternatives. In this regard, the business management team is facing the need to choose options between innovation and mergers and acquisitions. Innovation can be regarded as the key to business success (Colvin et al., 2020).  By taking the example from the case study it can be stated that after the CEO changed for Pfizer in the year 2010, Pfizer paid attention to five high priority therapeutic areas like Immunology and Inflammation, oncology, cardiovascular and metabolic diseases, neuroscience and pain and vaccine and they stop prioritising in other departments. Doing this brings a lot of change and they were able to grab the market. The business has been able to meet the position while ensuring innovation. On the other hand, based on the case study, it can be stated that the business is highly interested in mergers and acquisitions. Hence, they can consider eradicating problems related to the corporate level by considering both areas that are innovation and merger and acquisition and these options can cause the business to face dilemmatic situations, and that is why it has been stated that the problem related to the corporate level of the company is dilemmatic.

 Section 3: Process

3.1 Formation: Puzzle 

By considering the case study, it can be stated that the process related area of the business is puzzling with respect to the business model of the organisation. The main issue with the strategic formation within the organisation is the competitive market environment as it requires the business to pay attention to a number of factors when the matter comes to forming a strategy. For instance, they may face the requirement to think of the competitors’ working process, their pricing process, and their innovative approaches and other factors to ensure that the strategy that they are forming would ensure their success in the market. However, it is also a fact that the business has an optimal solution to the problem, and it means that the problem is puzzling. The optimal strategy is nothing other than being innovative (Grab et al., 2019). Hence, Pfizer is only concentrating on the innovative types of drugs that make them different from the other competitors and this step was properly formulated when the other competitors were closing down to the top position as yearly sales are compared (Renate Kratochvil and Phillip, 2019). Moreover, Pfizer is only into prescribed drugs and not much into the self-diagnosis drugs that can be bought without a proper prescription. The formation of Innovative drugs takes place when they consider the fact that once the patent will expire other competitors can take over. Hence they understand the fact of proper formation in the organisation and come up with the innovative drugs that were the optimal solution to the problem.

3.2 Change: Dilemma

By considering the case study, it can be stated that the change-related area of the business is a dilemmatic. Dilemmatic problem is such a problem that it may have two types of solutions. It has already been stated that a problem can be regarded as a puzzling problem when it has a clear and optimistic solution. Change can be regarded as an integral part of a business process. By considering the current situation of the business, it can be stated that they are facing issues related to the price of their product. The issue can be resolved in an easy manner while changing the process of its items and while adopting a competitive pricing strategy where the business’s pricing policies would have a clear and evident similarity with the process of their competitor's items. Hence, there should not be any dilemmatic situation. However, the matter is that the business is thinking more about innovation and product diversification. In order to manage the issue properly, the business is facing the need to keep the prices of their hotels high and the business is trying to attract the market not by keeping cheap prices but by ensuring the best quality. It means that the problem requires the business to think of two change-related aspects that would ultimately solve the issue. In the first case, they would face the requirement to keep the price low in order to manage the situation. On the other hand, they can bring changes to their innovative approaches and quality-based manufacturing practices in order to offer consumers cheap-rate items. It means that the business is facing a dilemmatic situation in regard to the process of identifying the best change-related approach that can suit the business situation in the perfect manner, and it is creating a problem for the company. It means that the change-related problem for the business is dilemmatic.

Section 4: Context

4.1 Industry context: Paradox

By considering the article, it can be stated that the problem related to the industry is a paradox. In other words, it can be stated that the industry is suffering from paradox type problems as there is a severe market difference between the United States and Europe with respect to the industry, and both marketing situational needs contradict in an effective manner. In such a situation, it is truly difficult for a company like Pfizer to understand whether it should adopt the EU-based industry norms or they have to adopt the US-based industry norms. The business is working throughout the US. Now, if they adopt strategies based on the US-based norms, then it would be complex for them to manage the EU market properly. On the other hand, if a business like Pfizer would adopt a strategy by thinking of the industry norms of the EU, it can face issues in acquiring the market of the United States. The whole industry is facing issues in this regard where a contradictory industrial norm is limiting their market expansion and innovation processes and procedures, and that is why it can be stated that the problem related to the industrial context is a paradox. However, in order to deal with the issue in an effective manner, all businesses like Pfizer have to be strategic. In such a situation, businesses are also required to be able to prioritize their market by considering their current operational perspectives, situational demands, revenue generation process and such other factors (Ferreira Gregorio et al., 2018). By considering the paradox problem with respect to the industrial context, it can be stated that the concerned business and other companies related to the industry should follow the industrial norms of the country where they have the biggest market share. For instance, the company has the biggest market share in the US as they have a 48% market share in the country. In the EU, they have a 22% market share. It means that they have to make any decision by considering the market situation of the United States, and it can be regarded as the only solution to overcome the paradoxical issue that has been raised in this regard.

4.2 Organisational Context: Puzzle

The problem related to the organisational context is puzzling. In order to provide rationale regarding the same, it is important to compare two business leaders working in the industry so that it becomes possible to find out the problem that the business is facing and the type of problem that can be defined. The company is actually leading the US market with an effective market share. Johnson & Johnson can be regarded as the main competitor of them and the main problem related to the business context is a high level of competition as several new businesses are also entering the market. However, the matter is that the business has an effective solution to such a problem. By ensuring adequate innovation and by coming up to the market with highly demanded drugs such as the drug of cancer, the business can easily dominate the competitors in an effective manner. It means that the problem in regard to the organisational context has an effective and optimal solution and that is why the problem is being regarded as a puzzling problem in this regard. In this context, it can be stated that by keeping the prices of the product low, the business can ensure proper domination of competitors (Kurpayanidi, 2018), and if two options become available in this regard, the problem would be dilemmatic. However, the matter is that the business would not be able to ensure proper success just by paying attention to the pricing issue. If the innovation-based factor is provided with adequate attention, then leading the market would definitely be the easiest process for them, and that is why there should not be any dilemma, paradox, or trade-off associated with the issue. By considering all of these aspects, it can be concluded that the puzzling problem is relevant in this regard.

Conclusion

Company’s management of strategic tension

By considering the discussion made in the above-stated passages, it can be stated that most of the problems of the company are puzzling problems. In regard to the management of such problems, a business should not face any significant issues as such problems come with an optimal solution. In regard to the process of managing such problems, a business does not face the requirement to think of any new strategy as the implementation of the optimal solution can help them in managing the issue in an effective manner. However, some problems are dilemmatic and the industry context-based issue is a paradox. By considering the case study, it can be stated that the management team is handling the problems in an effective manner. In order to handle most of the problems, they are paying attention to their product diversification strategy and innovation strategy. For instance, the change-related problem has been found to be a dilemmatic problem in this regard as there are two options that the business can consider adopting in order to manage changes properly based on situational needs. However, by considering the working process of the company, it has been possible to understand that the business is paying more attention to innovation in this area of concern, and such management strategies are helping the business in leading the market properly.

Actions to be taken

However, in order to bring an improvement to their position in the market, the company is recommended to pay more attention to the pricing factor. It can be regarded as the most significant issue that the business is currently facing. The company is required to bring an effective change to their products’ prices so that people show adequate interest in buying their drugs.

The business is innovative. However, they are required to be a bit more innovative in order to ensure more market shares in the US and EU. They have to analyse the drug-based needs of people in an effective manner and based on the same, they can consider launching drugs that would suit the current needs of people without any severe side issues. It is a fact that businesses are working hard to battle cancer. However, if they could pay more attention to other health issues too and if they would come to the market with significant medicines related to those issues, running the business smoothly might be easier for them.

 

References

Colvin, R.M., Witt, G.B. and Lacey, J., 2020. Power, perspective, and privilege: the challenge of translating stakeholder theory from business management to environmental and natural resource management. Journal of Environmental Management, 271, p.110974.

Fatehi, K. and Choi, J., 2019. International business management. Springer.

Ferreira Gregorio, V., Pié, L. and Terceño, A., 2018. A systematic literature review of bio, green and circular economy trends in publications in the field of economics and business management. Sustainability, 10(11), p.4232.

Grab, B., Olaru, M. and Gavril, R.M., 2019. The impact of digital transformation on strategic business management. Ecoforum Journal, 8(1).

Izagirre-Olaizola, J. and Morandeira-Arca, J., 2020. Business management teaching-learning processes in times of pandemic: Flipped classroom at a distance. Sustainability, 12(23), p.10137.

Kurpayanidi, K.I., 2018. Questions of classification of institutional conditions, determining the structure of business management in Uzbekistan. ISJ Theoretical & Applied Science, 9(65), p.1.

 Mosteanu, N.R., Facia, A., Torrebruno, G. and Torrebruno, F., 2019. Fractals–A Smart Financial Tool to Assess Business Management Decisions. Journal of Information Systems & Operations Management, pp.45-56.

Renate Kratochvil and Phillip C. Nell, 2019, PFIZER AND THE CHALLENGES OF THE PHARMACEUTICAL INDUSTRY (A)

Renate Kratochvil and Phillip C. Nell, 2019, PFIZER AND THE CHALLENGES OF THE PHARMACEUTICAL INDUSTRY (A)