Pfizer

Report
Table of Contents
Problem Statement ........................................................................................................................................ 3
Basic Issues ................................................................................................................................................... 3
Immediate Issues........................................................................................................................................... 5
Importance and Urgency Chart ..................................................................................................................... 7
Environmental Analysis ................................................................................................................................ 8
PESTLE analysis ...................................................................................................................................... 8
SWOT Analysis .......................................................................................................................................... 12
Competitor Analysis ................................................................................................................................... 13
Case Analysis .............................................................................................................................................. 16
Alternatives ................................................................................................................................................. 17
Alternative Generation ............................................................................................................................ 17
Alternative Assessment ............................................................................................................................... 21
Decision Criteria ......................................................................................................................................... 24
Alternatives Relevant to Decision Criteria ................................................................................................. 24
Decision Tree .............................................................................................................................................. 26
Recommendations ....................................................................................................................................... 29
Selection of Alternative .......................................................................................................................... 29
Implementation ....................................................................................................................................... 29
Assumptions............................................................................................................................................ 29
References ................................................................................................................................................... 30

2
Problem Statement
Like a large part of the huge pharmaceutical area, Pfizer has battled with the deficiency of

selectiveness on key branded medications, explicitly Lipitor, detrol, spiriva and celebrux. Pfizer's

deals crested at $67.8 billion out of 2010 (Sean, 2015) and have fallen for ten continuous years to

$51.8 billion of every 2019 (Financial Report Pfizer, 2019). Further, sales of Pfizer have been

stale more than few years. In current year, 2020, 150.8M is the steady sales income (Zoominfo,

2020). Sales representative are uncritically happy with their activities and feel very little

propelled to improve further. The same is being talked about by the salespeople in the

workplaces of Pfizer. They are having complacent about themselves at Pfizer. Further,

motivation is quite a significant component in improving work efficiency (Agbenyegah, 2019).

Demotivation of the salesman is the essential issue Pfizer is confronting. All in all, Pfizer must

discover new and imaginative approaches to fix this problem rapidly on the off chance that it

would like to see its stock value head any higher and reduces cost occurred.

Basic Issues
Pfizer is facing two basic issues that shall be addressed in long run as they are non-urgent. It is

decrease in salesmen profitability and increase in the cost of human resource (HR), i.e. sales

reps, of Pfizer.

1. Salesmen Profitability

Salesmen profitability is a proportion of sales proficiency (speed through the business cycle and

the expense of exploring the cycle) and sales adequacy (finishing a sale and encouraging a

significant Customer Experience with minimal measure of exertion). It is tied in with achieving

objectives and accomplishing targets that bring about a serious win, yet in addition a customer

who is locked in and steadfast. Salesmen profitability is one of the key elements impacting sales

3
volume, efficiency, client dependability and unpredicted costs. It is imperative in business firms

since they manage basic cash related, item and customer information which could without a very

remarkable stretch be traded beginning with one venture then onto the following. The sales reps'

exhibition is an important subject for associations. Thusly, duty and profitability of agent to the

association are essential variable eventually accomplishment of the companies. Experimental

investigations show that agents of sales' upkeep brief extended sales quality and thusly, extended

sales. Additionally, efficiency of salespeople's is imperative to the future development and

accomplishment of all industry.

Salesmen profitability is one of the key variables impacting sales volume, efficiency, client

dependability and unpredicted costs. The reps of sales makes social advantages that rise above

the trade substance of a solitary exchange by giving arrangements that spare time and make more

noteworthy convenience to the client. Financial specialists similarly share their ability and

realizing which fabricates the competency of customer decision making. Pfizer has been facing

this unproductively of salesmen since couple of years. Intrinsic and extrinsic inspiration is

related to salesmen execution. It prompts enthusiasm to put more energy in a given task and in

this way, shape impression of accommodation. Extrinsic inspiration concerns the drive to play

out certain lead with the purpose behind recognizing specific destinations or prizes. Pfizer is

providing both rewards, intrinsic and extrinsic, and yet facing decline in the profitability and

productivity of sales’ reps.

2. Cost Effective

Reward framework as a piece of the control framework for a firm assumes a determinant part to

spur representatives. It can prompt a predictable high responsibility, efficiency of representatives

4
towards the usage of objectives, targets and strategies that are planned. Such planned system

could be arrangement of value services and products. Objectives of workers and firms are

incongruent and may add to the disappointment of any planned strategy or targets

accomplishment. To keep away from any such conditions, workers are offered prizes in financial

terms, yet additionally in non-monetary. This, notwithstanding, expands the expense of the

organization (Yaacob, 2009).

Indeed, Bonhemme has a similar concern. Salespeople of Pfizer anticipate both, financial and

non-financial related prizes. Productivity and sales growth is stale over an extensive stretch and

subsequently has expanded the expense of Pfizer against the benefits investigation. Pfizer has

been masterminding sales contests and meetings at national and regional levels in extravagant

venues with families for 3 to 4 days. Chiefs of Pfizer examined that both of these non-financial

prizes. They found that it has not added to any development of workers' productivity,

profitability, deals and benefits. To summaries, one of their concern is the increase of Pfizers’

cost, Cost > Benefit.

Immediate Issues
Pfizer is facing two basic issues that shall be addressed urgently. They are high demand of non-

financial rewards and demotivation of sales representatives. These issues are supposed to be

resolved in order to maintain businesses.

1. Demotivation of the Sales Representatives

It has been commonly acknowledged by theories of organizations that the key resource of

business can have is its HR, nonetheless, the effective accomplishment of the objectives of the

firm will be dependent upon the best possible deployment of the HR inside that firm. As claimed

5
by Lio et al., (2007), moreover, competitive edge and success of the firm or business depends on

its worker's efficiency, in this manner, the need to weight on components that will affect on

workers' motivation and productivity.

Sales force illustrates to a critical venture since it is an enormous level of absolute expenses for

Pfizer. As limit spanners, reps of sales the association to its clients and increase income. Given

the significant role sales rep play in building competitive advantage for Pfizer, their motivation is

generally perceived as a basic segment for the sales development and growth. The executives of

Pfizer have been offering different extraneous and intrinsic awards to the reps. Besides, they

offer a few persuasive compensation plans. As indicated by Bonhomme, they are offering ample

remuneration plan at sky's cutoff. Nonetheless, she has heard and seen that the sales rep feels

smug prompting low spirit. This caused stale sales for most recent few months.

2. Non-financial Rewards

Workers who are motivated work with eagerness toward the accomplishment of objectives,

targets and aims of firm. One significant thing that comes as a main priority is incentives when

we talk about motivation. It actuates a lot of thought particularly from the earliest starting point

of searching for qualified workers who can accomplish successfully and proficiently objectives

of Pfizer. The idea of the cash as a prompt motivator appears to be strong; the reality of the

situation is that numerous employees don't really believe cash to be the top spark by any means.

Thus, non-financial remuneration has the possibilities to empower employees without monetary

compensations (Wiesen, 1999).

A compelling rewards configuration impacts the conduct of sales representatives and prompts a

positive sales result. Non financial rewards are bound to improve interest and inclusion in the

work. It can accomplish a quantifiable profit multiple times higher than monetary motivating

6
force programs (Jimenez et al., 2013). Salesmen can fail to meet expectations due to a

misalignment of their intrinsic inspiration with the sort of remunerations they get (Kumar et al.,

2015). A few, non-monetary prizes are offered by Pfizer o their salesperson. Commission

system, promotion within Pfizer, sales contests, national and regional sales meetings, car

allowance, exotic vacations, gifts of jewelry, etc are some non-financial rewards Pfizer is

offering. Nonetheless, these prizes frameworks are not viable to build the growth in sales any

longer. Besides, according to executives, sales contests and national sales meetings at

extravagant venues are no more contributing to the Pfizer’s profit.

Importance and Urgency Chart

Importance

Low High

I II

Low

Salesmen Profitability Cost-effective

Urgency

III IV

High

Non-Financial Rewards Demotivation

7
Environmental Analysis

PESTLE analysis
1. Political Analysis

Political components assume a critical part in deciding the elements that can affect Pfizer's drawn

out productivity. It is working in manufacturing drugs. It gets open to various kinds of world of

politics and its related risks. Below are the political factors that Pfizer faces:

 Political strength and significance of Drug Manufacturers.

 Defilement level.

 Drug manufactures of government.

 Lawful system for contract authorization

 Licensed IP assurance

 Tariffs, taxes and regulations

 Supported exchanging accomplices

 Laws against anti-trust

 Pricing regulations

 Pay enactment

 EOBI

 Security guidelines

 Labeling of product and different prerequisites

8
 2. Economic Factors

Rate of inflation, foreign exchange, savings and interest and financial cycle decide the aggregate

demand and speculation are macro factors. While rivalry standards sway the upper hand of the

firm is the micro factor. Pfizer can utilize nation's financial factor, for example, development

rate, customer spending and so on to gauge the development of Pfizer. Below are the

environmental analysis points-

Sort of monetary framework in nations of activity – what kind of financial framework there is

and how stable it is.

 Mediation of Government

 Depreciation and appreciation of exchange rates

 Productivity of monetary business sectors

 Foundation quality

 Competitors in the economy

 Expertise level of labor force

 Qualification of the employees

 Work expenses and efficiency in the economy

 Business cycle stage

 Optional pay

 Joblessness rate

 Loan interest rate

 Inflation rate

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 3. Social Factors

Society's way of life and method of doing things sway the way of life of a business. Common

convictions and mentalities of the populace assume an incredible function in how advertisers at

Pfizer Inc. will comprehend the clients of a given market and how they plan the advertising

message. Social factors that initiative of Pfizer are -

 Socioeconomics and expertise level of the populace

 Class structure, order and force structure in the general public.

 Qualification level

 Innovative soul and more extensive nature of the general public. A few social orders

empower business while some don't.

 Perspectives (wellbeing, natural awareness, and so on)

 Recreation interests

4. Technological Factors

Technology is quick disturbing different ventures no matter how you look at it. A firm ought not

exclusively do mechanical examination of the business yet in addition the pace at which

innovation disturbs that industry. Low pace will give additional time while quick speed of

technological disturbance may give a firm brief period to adapt and be beneficial. Below are the

technology impacts-

 Ongoing mechanical improvements by Pfizer contenders

 Product innovation

 Effect on value chain and cost structure

 Pace of mechanical dispersion

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 5. Environmental Factors

Prior to entering new business sectors or beginning another business in existing business sector

the firm ought to painstakingly assess the environmental guidelines that are needed to work in

those business sectors. A portion of the ecological components that a firm ought to consider

already are -

• Change in climate and weather

• Laws directing climate contamination

• Air and water contamination

• Management of recycling and waste

• Sustainable and green ecology

• Endangered species

• Environmentally friendly power

6. Legal Factors

The legitimate structure and establishments are not strong enough to secure the protected

innovation privileges of an association. An organization ought to painstakingly assess prior to

entering such business sectors as it can prompt robbery of association's mystery ingredient along

these lines the by and large serious edge. Below points shows legal analysis for Pfizer:

 Against trust and discrimination law

 Copyright, licenses/IP law

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  Purchaser security and internet business

 Business law

 Wellbeing and security law

 Information Protection

SWOT Analysis

Below is the SWOT analysis of Pfizer

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Competitor Analysis
COMPANY MARKET
REVENUES INCOME EMPLOYEES
NAME CAP

Pfizer Inc 48,648 234,671 8,719 78,300

Abbott

Laboratories 32,221 190,710 3,382 77,000

Allergan plc 16,096 64,063 -2,479 10,500

Amgen Inc 32,341 134,542 7,352 17,900

Biogen Inc 14,263 38,392 5,143 7,550

Bristol Myers

Squibb Co 39,395 137,615 -28 25,000

Eli Lilly And

Company 23,214 145,567 5,573 39,135

Johnson and

Johnson 80,856 405,974 16,986 126,500

MEDIMMUNE,

INC. 0 0 0 0

Merck and Co

Inc 47,347 210,307 11,538 70,000

Procter and

Gamble Co 70,950 355,265 13,103 110,000

Mylan N v 16,861 8,208 266 25,000

13
SCHERING-

PLOUGH

CORPORATION 0 0 0 0

Watson

Pharmaceuticals

Inc 0 0 0 0

Wyeth 0 0 0 0

Actavis Plc 10,573 4,714 -751 19,200

Cephalon, Inc. 0 0 0 0

Celgene Corp 16,982 78,961 1,834 6,012

Gilead Sciences

Inc 23,147 76,568 1,234 7,000

Covidien Plc 10,880 0 1,605 39,500

Patterson

Companies Inc 5,542 3,070 -508 7,000

Hospira Inc 6,921 0 -8 0

Abbvie Inc 40,893 190,262 6,522 26,000

Baxter

International Inc 11,531 0 885 0

Zivo Bioscience

Inc 0 54 -11 2

Balchem 689 3,649 83 1,060

14
 Corporation

Petvivo Holdings

Inc 0 59 -2 4

SUBTOTAL 549,351 2,282,651 80,437 692,663

Pfizer Stock Performance Relative to it’s Competitors from 12th December 2019 – 2020.

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Case Analysis
As shown in the fourth quadrant of urgency and importance chart, motivation of the sales

representatives needs to be addressed on urgent basis as it is highly important. Moreover, the

remaining quadrants are correlated and can influence on each other collectively. For instance: to

augment motivation of sales rep, non-financial rewards can play vital role. If the role of non-

financial rewards be effective, in long haul, productivity of sales rep is improved, eventually

declining the cost of Pfizer. However, to deal with all the three quadrants (1, 2 and 3), fourth

quadrant has to be addressed. As per my analysis, it’s the demotivation of the reps that has

resulted to the increase in cost of Pfizer and decline profitability.

Bonhomme noticed complacency in attitudes of sales reps. As indicated by research, an

adjustment in conduct happens because of dissatisfaction brought about by sitting tight for

promotion longer than anticipated and a sensation of not being acknowledged. Unwittingly,

people with certain character characteristics may adjust perilous conduct and this self-induced

complacency smugness (Fahlgren, 2011). Close by, it is an ignorance of genuine inadequacies

that causes an unnecessary vanity. It is related with, for example, pomposity, denseness,

obliviousness, and an absence of self-reflection. It includes a hazardous absence of propelled

activity or exertion, where this is an aftereffect of the absence of an adequately powerful urge or

felt need to keep up (or improve to) a fitting degree of achievement. Under such conditions, there

could in any case be some activity required or effort made (Kawall, 2006). This reduces the

growth, productivity and profitability of the employees and firms (Bielic et al., 2020).

To recognize the ideal explanation for this low morale various investigations and explores were

examined. Boredom of job and at workplace has been related with dull and additionally tedious

errands (Melamed et al., 1995). Dreariness in the work and undertakings sway on HR rehearses.

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Tedium of the employment causes a negative relationship with work quality (Molleman and van

lair Beukel, 2007). Employees that accomplished high dreariness were less inclined to see

adaptability as having ideal results regarding proficiency, quality and advancement Moreover,

Various examinations discusses the conceivable symptoms of boredom. They are

counterproductive work practices (CWB) (Spector et al., 2006) and lower work performance

(Loukidou and Daniels, 2009). According to motivation, some have contended that boredom

reflects hesitance to activity, efficiency and benefit (Greenson, 1953). These impacts were

halfway intervened by the degree to which the employees' work or challenges were repetitive,

recommending that PMS may have unintended results on occupation plan by empowering a few

(tedious) components of task performance and demotivating representatives. The significance of

motivation as a precursor of workplace boredom has just been recommended by Barmack

(1938), who contended that boredom creates as a result of insufficient motivation. Further, this

boredom can be influenced by provision of intrinsic and extrinsic motivation (Hoof and Hooft,

2017). On account of Pfizer, same has been found. Sales reps have been doing repetitive tasks

with monotony non-financial rewards. Their complacent was at a point where no further

challenges, innovation or different rewards or tasks were offered. They all knew about the same

pattern, objectives and performance management system (PMS) approach. Although, Pfizer had

the best targets and rewards set for their employees. But, they were all same over several years.

Alternatives

Alternative Generation
1. Change Management and Team

At Pfizer employees are facing complacent and demotivation due to the stagnant approach of the

management. Such stagnant sales target results in boredom. To overcome this trouble,

17
management and team shall be changed. This can be done in several ways. Firstly, top

performing representatives can be shifted to the team and branches that are unable to achieve a

given target in a better way. This will give them a lead to perform as leaders. Next, different

teams can be made and asked to set a given target, above the benchmark already set by Pfizer.

This will let the representatives set higher targets and would achieve them efficiently and

effectively. Below is the flowchart about how these amendments shall be taken into execution.

2. Employee and Job Satisfaction Measure

Sales reps are complacent about their job. However, as per executives, growth of sales is stale.

Pfizer must measure satisfaction of representatives to check which factors are contributing them

to be complacent. Recognition of factors will let amend at strategic level. Pfizer should

18
implement quarterly representatives’ surveys that will establish and improve on issues that are

making them complacent. The survey can also suggest ways in which the Pfizer and reps can

help improve employee sales productivity. The questionnaires should be reviewed by strategic

management at quarterly meetings in order to come up with solutions and plans for issues that

arise.

3. Strategic Involvement

It alludes to a firm's cycle of characterizing its strategies, decision making or magnitude of

decision on distributing assets including its capital and HR. Representatives involvement is

commonly characterized as a way in which representatives' are influenced for making decision

with lessen biasness or keep up agreeable connection between all the authorities of the board.

This share in making and participating in strategic planning and decision making augments

persuasive force and incredible brain research esteem it advances agreement and harmony among

representatives and the executives. At the point when representatives take an interest in decision

of firms, they can see the 10,000 foot view plainly, i.e., how their activities would add to over the

entirety of the organization. They can offer input promptly dependent on their encounters and

improve the nature of making decision fundamentally. Since they are engaged with the making

decision from the earliest starting point, they will own the decision, and attempt to make an

interpretation of the manner of speaking into solid activity plans with participation having energy

and eagerness that makes them more capable. They are happy to step up to the plate and

contribute cost sparing proposal and development arranged thoughts. The sensation of being

treated as equivalent power raises confidence and reduces objections towards any strategy, plan

or decision.

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Since, they approached with deference. Presently, they being to see the work and the firm as

their own and engage with loyalty and commitment in authoritative exercises wholeheartedly

two-sided decision assistance in bringing out extremist change in hierarchical frameworks and

plans all the more effectively representatives don't feel compromise by such moves, as they

comprehend and like the explanation for such movements of strategies. Moreover, initiative shall

be welcomed from representatives while strategic planning. This motivates representatives to

come out of complacent and keep on setting and achieving higher targets.

4. Non – Financial Rewards

Although, good non-financial rewards are being distributed to the representatives, yet they are

not motivated extrinsically due to the same set of non-financial rewards provision over years.

Reps may be recognized publically for their good performance in Pfizer. It will motivate them

intrinsically and extrinsically. Public recognition of the reps can be done on bill boards,

magazines, newsletter, etc. Further, travel vouchers, theatre tickets, club subscription, hot air

balloon flights, pampering voucher, retail vouchers and reserved car parking space. Additionally,

education of children and house buying offers can play vital role in motivating representatives to

grab the attention and growth of the Pfizer in the market. This will increase the morale and

motivation of reps.

Further, a chance to be a part of stock holder can be used to appreciation in Pfizer. This is known

as stock or share based compensation. It is a method of paying representatives of an organization

with portions of proprietorship, shares and stocks in the business. It is normally used to motivate

representatives beyond monetary rewards and to adjust their inclinations to those of the

organization. Shares given to representatives are normally dependent upon a vesting period

20
before they can be sold. Organizations remunerate their workers by giving them investment

opportunities on shares and stocks. The offers normally vest over a couple of years, which

means, they can't be sold by the representative until a predetermined time frame has passed. On

the off chance that the representative resigns from the organization before the offers are vested,

they relinquish those offers. However, if the representative stays for long run in the organization,

all of their shares will vest. They can hold the stocks uncertainly, or offer them to change over

them into money. It might incorporate shares, restricted share units, stocks, phantom shares or

employee stock ownership.

Alternative Assessment

21
 Alternatives Pros Cons

1. Change Management and Team

a) Top performing representatives can be A > Weak areas may A > Dictatorship can be

shifted to the team and branches that are overcome. established.

unable to achieve a given target in a better

way. This will give them a lead to perform

as leaders.

b) Teams can be made and asked to set a B > Competitive edge B > Extra resources will be

given target, above the benchmark already can be gained. utilized.

set by Pfizer.

2. Employee and Job Satisfaction Measure

Pfizer must measure satisfaction of

representatives to check which factors are

contributing them to be complacent.

Recognition of factors will let amend at Complacent would be Representatives may fake

strategic level. Pfizer should implement deduced. the response given in

quarterly representatives’ surveys that will surveys.

establish and improve on issues that are

making them complacent.

3. Strategic Involvement

a) Representatives’ involvement is A > Ownership of the A > Biasness may take

commonly characterized as a way in representatives. over.

22
 which representatives' are influenced for

making decision and strategies with lessen

biasness or keep up agreeable connection

between all the authorities of the board.

b) Initiative shall be welcomed from B > Research and B > More hiring would be

representatives while strategic planning. development would be done and overall cost and

This motivates representatives to come out encouraged. expense of the firm will

of complacent and keep on setting and increase.

achieving higher targets.

4. Non – Financial Rewards.

a) Reps may be recognized publically for

their good performance in Pfizer.

b) Further, travel vouchers, theatre tickets,

club subscription, hot air balloon flights,

pampering voucher, retail vouchers and A, B and C > A, B and C > Increase in

reserved car parking space. Acknowledge the cost of the firms.

c) Additionally, education of children and productivity beyond

house buying offers can play vital role in the norms.

motivating representatives to grab the

attention and growth of the Pfizer in the

market.

d) A chance to be a part of stock holder can D > Aligns the D > May not be useful for

be used to appreciation in Pfizer interests of employees recruiting or retaining

23
 and shareholders – employees if the share

both want to see the price is going down.

company prosper and

the share price rise.

Decision Criteria
1. Motivational rate- the alternative will increase (+), decrease (-), or neutral affect (n)

on the motivation of sales reps. Motivational rate criteria begins, direct and rise the

goal oriented behaviors.

2. Non-financial reward - the alternative will positively (+), negatively (-), or no affect

(n) on non-financial reward. Non – financial reward criteria talks about whether it is a

part of extrinsic remuneration for the representatives.

3. Cost effective – the alternative will increase (+), decrease (-), or no affect (n) on the

cost of Pfizer. This criteria talk about the cost that incurs for Pfizer.

4. Sales growth and productivity – the alternative will increase (+), decrease (-), or

neutral affect (n) on the sales growth and productivity. It sees the impact of the

alternate action in long run impact on sales growth and overall productivity.

Alternatives Relevant to Decision Criteria

Decision Criteria

Motivational Non – Cost Sales

Alternatives
Rate Financial Effective Growth and

Rewards Productivity

Change Option + - + +

24
Management A

Option n n + +

Employee and Job n n + +

Satisfaction Measure

Option + n + +

Strategic A

Involvement Option n n n +

Option + + n n

Option + + n n
Non –
B
Financial
Option + + n +
Rewards
C

Option + + n +

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 Decision Tree
Best Case
1 2 3 4
+ n - +

Most Likely
1 2 3 4
Option A + n - +

Worst Case
1 2 3 4
+ n n n

Change Management Best Case

and Team 1 2 3 4
+ n - +

Most Likely
1 2 3 4
Option B + n - +

Worst Case
Demotivation of Sales Reps 1 2 3 4
+ n n n

Best Case
1 2 3 4
+ n + +
Employee and Job
Satisfaction
Most Likely
1 2 3 4
+ n + +

Worst Case
1 2 3 4
n n + +

26
 Best Case
1 2 3 4
+ - n +

Most Likley
Option A
1 2 3 4
+ - n +

Strategic Involvement Worst Case

1 2 3 4
+ n n +

Best Case
1 2 3 4
n n + +

Option B
Most Likely
1 2 3 4
Demotivation of Sales Reps n n + +

Worst Case
1 2 3 4
n n + n

Best Case
1 2 3 4
+ n + +

Most Likely
Non - Financial Option A
Rewards 1 2 3 4
+ n + +

Worst Case
1 2 3 4
n n + n

27
 Best Case
1 2 3 4
+ n + +

Option B Most Likely

1 2 3 4
+ n + +

Worst Case
1 2 3 4
n n + n

Best Case
1 2 3 4
+ n + +

Demotivation of Sales Option C

Non - Financial Most Likely
Reps Rewards 1 2 3 4
+ n + +

Worst Case
1 2 3 4
n n + n

Best Case
1 2 3 4
+ + - +

Most Likley
Option D 1 2 3 4
+ + - +

Worst Case
1 2 3 4
+ + + +

28
 Recommendations

Selection of Alternative
Based on the decision tree and the alternatives provided, it is recommended that Pfizer
implement alternative 4, option D. With this alternative, Pfizer will effectively increase
motivation and decrease complacent leading to augment of sales and productivity through non –
financial rewards. This decision tackles the immediate issue of demotivation of the sales reps to
meet expansion in sales growth. It will, in long run, reduce cost of Pfizer. Moreover, it is
recommended that Pfizer consider the other alternatives in the future as they can help with some
of the basic issues that the company is facing inclusive of sales growth, productivity and
profitability.

Implementation
Pfizer must set a meeting and talk about the productivity downfall with the sales representatives.

They must inform representatives about the stock or share based commission in detail. Within

one week each regional branch shall be notified with the procedures about its implementation

and eligibility criteria. Moreover, they can also mention to their representatives that if they do

not achieve a rise in sales, the other non – monetary benefits that are already being availed would

be taken away. Further, every fort-night or month, sales reps would share their contribution to

the ordinates and ordinates to the chiefs.

Assumptions
Below are the assumptions taken into consideration while analyzing the case, but identified

through various researches.

 Job and workplace incentives boredom.

 Representatives are self – satisfied, but not job satisfied.

29
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