PHILIPPINE CHRISTIAN UNIVERSITY

GRADUATE SCHOOL IN BUSINESS

STRATEGIC MANAGEMENT

CASE ANALYSIS FORMAT FOR STRATEGIC MANAGEMENT

I. CASE BACKGROUND:

Pfizer Inc. is the world's largest research-based pharmaceutical company, discovers, develops, manufactures and
markets prescription medicines in areas including oncology, cardiovascular pain, neuroscience, and infectious
diseases, including HIV-AIDS. Pfizer is also the world's largest animal health company. Pfizer is committed to
applying science and global resources to improve health and well-being at every stage of life. Some of Pfizer’s
well-known drugs are Lipitor, Viagra, Lyrica, Zeldox, and Aricept used for people, as well as Draxxin use for
cattle. Pfizer operates from three business segments- Pharmaceuticals, Animal Health, and a third one that
contains "Corporate & Other." The Pharmaceuticals business offers human health products for the treatment of
cardiovascular diseases, central nervous system disorders, arthritis and pain, infectious and respiratory diseases,
urogenital conditions, cancer, eye disease, endocrine disorders, and allergies, among others. Pfizer is well known
for its prescription medicines and the many over-the-counter medical products it offers. The over-the-counter self-
medications range from oral care, upper respiratory health to tobacco dependence, skin and eye care, and hair
growth. The Animal Health division offers medicines for livestock and pets. The company also manufactures
empty gelatin capsules and engages in producing contract and bulk pharmaceuticals/chemicals, which it classifies
under "Corporate/other" business.

II. ENVIRONMENTAL ANALYSIS:

A. External Environment Analysis

A.1. General Environment

General Environment Opportunities Threats

Political/Legal

Economic

Socio-Cultural

Technological

Opportunities are those favorable conditions that could affect the strategic decisions of the company. Threats
are those unwanted conditions that could affect the business environment.

A.2. Industry Environment

Industry Environment Opportunities Threats

Rivalry

Bargaining Power of Consumer

Bargaining Power of Suppliers

 New Entrants & Entry Barriers

Threats from Product Substitution

Identify the opportunities and threats in the industry where the company operates and competes and those
affecting the competitive forces.

B. Internal Environment Analysis

B.1. The Functional Areas

Functional Areas Strengths Weaknesses

Finance

Marketing

Org & Mgt

Production

HR

R&D
Information Tech

Internal environment are those functional areas where the company operates. Company’s position is evaluated
with their strengths and weaknesses. Strengths are those capabilities that enhance the competitive position and
weaknesses are the unwanted conditions that weaken its competitive position.

C. External Factors Evaluation Matrix (EFE)

Evaluate the general environment and industry environments using the EFE. A Total Weighted Score of 2.5 and
above means favorable opportunities for the company. Otherwise, threat outweighs opportunities.

WEIGHT RATING WEIGHTED Rating Values

SCORE
OPPORTUNITIES:
1 - Poor response
2 - Average response
3 - Above average
4 - Superior response

THREATS:
4.0 - Highest score
2.5 - Average score
1.0 - Lowest score

TOTAL WEIGHTED SCORE: 1.0 OVERALL RATING:

CONCLUSION:
D. Internal Factor Evaluation Matrix (IFE)

Evaluate the Internal Environment using the IFE. A Total Weighted Score of 2.5 and above means favorable
strength for the company. Otherwise, weakness outweighs strength.

WEIGHT RATING WEIGHTED Rating Values

SCORE
STRENGTH:
1 - Major weakness
2 - Minor weakness
3 - Minor strength
4 - Major strength

WEAKNESS:
>2.5 - Strong
2.5 - Average
<1.0 - Weak

TOTAL WEIGHTED SCORE: 1.0 OVERALL RATING:

CONCLUSION:

E. Competitive Position Matrix (CPM)

Provide table comparison and scores among major competitors .

COMPANY
Critical Success Weight Company A Company B Company C Company D
Factors Rating Score Rating Score Rating Score Rating Score
Capitalization
Brand reputation
Market Share
Advertising
Employees
Profitability
Financial position
Total 1.0
Conclusion:
F. Assumptions On The Analysis

F.1. General Environment Stability

F.2. Industry Growth Prospects
F.3 Financial Strength and competitive position
F.4 Show relevant ratios
III. PROBLEM STATEMENT:

A. General Statement of the Problem:

A.1. Support evidences of the problem

A.2. Time Context
A.3. View Point

IV. ALTERNATIVE COURSES OF ACTIONS:

A. TOWS / SWOT Matrix

STRENGTHS WEAKNESSES
1. 1.
2. 2.
3. 3.
4. 4.
OPPORTUNITIES SO STRATEGIES WO STRATEGIES
1.
2.
3.
4.
THREATS ST STRATEGIES WT STRATEGIES
1.
2.
3.
4.

B. IFE/EFE Matrix (IEM)

IFE TOTAL WEIGHTED SCORE =

Strong Average Weak
(3.0 – 4.0) (2.0 – 2.9) (1.0 – 1.99)
High I II III
3.0 -4.0) (grow & build) (grow & build) (hold & maintain)

EFE TOTAL Medium IV V VI

WEIGHTED (2.0 – 2.0) (grow & build) (hold & maintain) (harvest or divest)
SCORE =
Low VII VIII IX
(1.0 – 1.99) (hold & maintain) (harvest or divest) (harvest or divest)
C. SPACE Matrix (SM)

Indicates whether aggressive, conservative, defensive or competitive strategies are most appropriate
for a given organization. Focuses on strategy formulation especially related to competitive position.

D. GRAND Strategy Matrix (GSM)

Focus on choosing the long term plans from the set of available alternatives.

RAPID MARKET
GROWTH

Q2 Q1
Market Dev Market Dev
Market Pen Market Pen
Prod Dev Prod Dev
Horizontal Int Forward Int
Divestiture Backward Int
Liquidation Horizontal Int
WEAK COMP Related Diversification STRONG COMP
POSITION POSITION
Retrenchment Related Diversification
 Related Diversification Unrelated Diversification
Unrelated Diver Joint Venture
Divestiture
Liquidation
Q3 Q4

SLOW MARKET
GROWTH

E. Summary of Strategies

STRATEGY OPTIONS TOWS IFE/EFE SPACE GSM TOTAL

Integration
Forward
Backward
Horizontal
Intensive
Market Penetration
Market Development
Product Development
Diversification
Concentric
Conglomerate
Horizontal
Defensive
Retrenchment
Divestiture
Liquidation
Joint Venture

F.
G.
H.
I.
V. RECOMMENDATION:

A. Quantitative Strategic Planning Matrix (QSPM)

STRATEGY 1 STRATEGY 2 STRATEGY 3

KEY FACTORS Weight Rating Score Rating Score Rating Score
OPPORTUNITIES
1.
2.
3.
4.
THREATS
1.
2.
3.
4.
Sub Total:
 STRENGHTS
1.
2.
3.
4.
WEAKNESSES
1.
2
3.
Sub Total:
OVERALL SCORE: 1.0
RECOMMENDATION:

VI. ACTION PLANS

Functional areas Objective Strategy Time Frame Budget

Marketing

Production

Organization

Finance

HRD

Information
System

R&D

VII. FINANCIAL PROJECTIONS (3 Years)

1. Projected Income Statement

2. Projected Balance Sheet
3. Projected Statement of Cash Flow
4. Projected Ratio Analysis
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