Orcine, Ellyssa Therese
Strategic Management
1. What is/are the directional strategy/ies present in the given study?
– The directional strategies present in the given case are vertical growth and
turnaround strategy. After purchasing Wyeth, Warner-Lambert, and Pharmacia,
which can be categorized as companies in their distribution chain, Pfizer showed
vertical growth, particularly forward integration. After a failed P140 billion investment
on inhalable insulin and a cholesterol-lowering alternative for Lipitor, the business
demonstrated its turnaround plan. According to the complaint, the company’s CEO,
Ian Read, consolidated and focused on only five areas of pharmaceutical
development, resulting in layoff and employment losses in research and
development.
2. How can Pfizer improve its operational efficiency using stability strategies?
– Pfizer may improve on its operational efficiency by using Pause/Proceed with caution
strategy. The corporation may put its big investments to good use by concentrating
on the main areas where it can improve. This will save the company money on
research and development by avoiding failed investments and unnecessary costs.