LEI ANN DENDI LIZZ C. PONGOS BSA2.

1
STRATEGIC MANAGEMENT 07 ACTIVITY 1

1. Vertical expansion and turnaround strategy are the directional tactics present in the given case.
After purchasing Wyeth, Warner-Lambert, and Pharmacia, which can be categorized as
companies in their distribution chain, Pfizer displays 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, Lan Read, consolidated and focused on only five (5) areas of
pharmaceutical development, resulting in people layoffs and employment losses in research and
development.

2. The Pause/Proceed-with-Caution Strategy could help Pfizer enhance its operating efficiency. The
corporation may decide to put its huge investments on hold and concentrate on the areas
where it can make the most progress. This will save the company money on research and
development by avoiding failed investments and unneeded costs.

3. Pfizer's penicillin might be considered cash cows for the corporation because it generates
significantly more revenue than is required to sustain market share during the company's early
years. Indeed, according to the case study, the company's breakthrough in penicillin creation
paved the door for it to become a significant research center for drug development. The
company's inhalable insulin and cholesterol-lowering replacement for Lipitor, on the other hand,
can be classified as dogs because they have a small market share and are unlikely to generate
significant revenue.