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Pfizer Global Protection Of Intellectual Property Case Study Solution

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Pfizer Global Protection Of Intellectual Property Case Study Solution

Business is currently one of the greatest food chains worldwide. It was established by Henri Pfizer Global Protection Of Intellectual Property in 1866, a German Pharmacist who first launched "FarineLactee"; a mix of flour and milk to feed infants and decrease mortality rate.
Business is now a transnational company. Unlike other multinational companies, it has senior executives from various nations and tries to make choices considering the entire world. Pfizer Global Protection Of Intellectual Property currently has more than 500 factories around the world and a network spread throughout 86 nations.

Purpose

The purpose of Business Corporation is to enhance the quality of life of people by playing its part and providing healthy food. While making sure that the business is prospering in the long run, that's how it plays its part for a much better and healthy future

Vision

Pfizer Global Protection Of Intellectual Property's vision is to offer its clients with food that is healthy, high in quality and safe to eat. Business envisions to establish a well-trained workforce which would help the company to grow
.

Mission

Pfizer Global Protection Of Intellectual Property's mission is that as presently, it is the leading business in the food market, it believes in 'Good Food, Excellent Life". Its mission is to provide its consumers with a variety of choices that are healthy and best in taste. It is focused on providing the best food to its consumers throughout the day and night.

Products.

Business has a vast array of products that it uses to its customers. Its products include food for babies, cereals, dairy products, treats, chocolates, food for family pet and bottled water. It has around four hundred and fifty (450) factories around the world and around 328,000 workers. In 2011, Business was listed as the most gainful organization.

Goals and Objectives

• Keeping in mind the vision and objective of the corporation, the business has actually set its goals and objectives. These objectives and goals are listed below.
• One objective of the business is to reach no landfill status. (Business, aboutus, 2017).
• Another goal of Pfizer Global Protection Of Intellectual Property is to lose minimum food during production. Most often, the food produced is squandered even before it reaches the clients.
• Another thing that Business is working on is to improve its product packaging in such a way that it would help it to decrease the above-mentioned complications and would also ensure the delivery of high quality of its items to its consumers.
• Meet global standards of the environment.
• Construct a relationship based upon trust with its consumers, service partners, workers, and government.

Critical Issues

Recently, Business Business is focusing more towards the strategy of NHW and investing more of its profits on the R&D innovation. The nation is investing more on acquisitions and mergers to support its NHW strategy. Nevertheless, the target of the business is not accomplished as the sales were expected to grow higher at the rate of 10% per year and the operating margins to increase by 20%, given up Exhibit H. There is a need to focus more on the sales then the innovation technology. Otherwise, it might result in the declined earnings rate. (Henderson, 2012).

Situational Analysis.

Analysis of Current Strategy, Vision and Goals

The existing Business technique is based on the principle of Nutritious, Health and Health (NHW). This technique deals with the concept to bringing change in the customer preferences about food and making the food stuff healthier worrying about the health issues.
The vision of this method is based on the key technique i.e. 60/40+ which merely indicates that the items will have a rating of 60% on the basis of taste and 40% is based on its nutritional value. The products will be made with additional nutritional value in contrast to all other products in market acquiring it a plus on its nutritional content.
This strategy was adopted to bring more yummy plus healthy foods and drinks in market than ever. In competition with other business, with an objective of maintaining its trust over clients as Business Business has gained more trusted by costumers.

Quantitative Analysis.

R&D Costs as a percentage of sales are decreasing with increasing real quantity of spending shows that the sales are increasing at a greater rate than its R&D costs, and permit the business to more invest in R&D.
Net Earnings Margin is increasing while R&D as a percentage of sales is decreasing. This indication also reveals a green light to the R&D spending, mergers and acquisitions.
Debt ratio of the business is increasing due to its spending on mergers, acquisitions and R&D development rather than payment of debts. This increasing financial obligation ratio posture a danger of default of Business to its investors and could lead a decreasing share rates. In terms of increasing debt ratio, the firm needs to not spend much on R&D and ought to pay its existing financial obligations to reduce the threat for financiers.
The increasing threat of investors with increasing debt ratio and decreasing share costs can be observed by big decrease of EPS of Pfizer Global Protection Of Intellectual Property stocks.
The sales growth of business is likewise low as compare to its mergers and acquisitions due to slow perception structure of consumers. This slow growth likewise impede business to further invest in its mergers and acquisitions.( Business, Business Financial Reports, 2006-2010).
Note: All the above analysis is done on the basis of computations and Charts given in the Displays D and E.

TWOS Analysis


TWOS analysis can be utilized to derive different methods based upon the SWOT Analysis provided above. A short summary of TWOS Analysis is given up Exhibition H.

Strategies to exploit Opportunities using Strengths

Business must present more ingenious products by big quantity of R&D Costs and mergers and acquisitions. It could increase the marketplace share of Business and increase the earnings margins for the company. It could likewise offer Business a long term competitive benefit over its rivals.
The international expansion of Business must be concentrated on market catching of developing countries by growth, bring in more consumers through client's loyalty. As developing nations are more populated than industrialized nations, it could increase the customer circle of Business.

Strategies to Overcome Weaknesses to Exploit Opportunities

Swot AnalysisPfizer Global Protection Of Intellectual Property should do cautious acquisition and merger of companies, as it might impact the customer's and society's perceptions about Business. It must get and combine with those business which have a market credibility of healthy and healthy business. It would improve the understandings of customers about Business.
Business must not just spend its R&D on development, rather than it needs to also concentrate on the R&D costs over evaluation of cost of numerous nutritious products. This would increase expense effectiveness of its items, which will lead to increasing its sales, due to declining rates, and margins.

Strategies to use strengths to overcome threats

Business should move to not just developing but likewise to industrialized nations. It must widen its circle to different nations like Unilever which operates in about 170 plus countries.

Strategies to overcome weaknesses to avoid threats

Pfizer Global Protection Of Intellectual Property must sensibly manage its acquisitions to prevent the threat of misunderstanding from the consumers about Business. It ought to get and combine with those countries having a goodwill of being a healthy company in the market. This would not only improve the perception of consumers about Business however would likewise increase the sales, earnings margins and market share of Business. It would also allow the business to utilize its prospective resources efficiently on its other operations rather than acquisitions of those organizations slowing the NHW method growth.

Segmentation Analysis

Demographic Segmentation

The market division of Business is based upon 4 factors; age, gender, income and occupation. For instance, Business produces a number of items related to babies i.e. Cerelac, Nido, etc. and related to adults i.e. confectionary products. Pfizer Global Protection Of Intellectual Property items are quite cost effective by almost all levels, but its significant targeted consumers, in regards to income level are middle and upper middle level customers.

Geographical Segmentation

Geographical division of Business is composed of its existence in nearly 86 countries. Its geographical division is based upon two primary aspects i.e. typical earnings level of the customer along with the environment of the region. For example, Singapore Business Business's segmentation is done on the basis of the weather condition of the region i.e. hot, warm or cold.

Psychographic Segmentation

Psychographic division of Business is based upon the personality and lifestyle of the client. For instance, Business 3 in 1 Coffee target those customers whose life style is rather busy and don't have much time.

Behavioral Segmentation

Pfizer Global Protection Of Intellectual Property behavioral segmentation is based upon the mindset knowledge and awareness of the customer. For example its highly nutritious items target those consumers who have a health conscious attitude towards their intakes.

Pfizer Global Protection Of Intellectual Property Alternatives

In order to sustain the brand name in the market and keep the client undamaged with the brand name, there are 2 alternatives:
Alternative: 1
The Company needs to invest more on acquisitions than on the R&D.
Pros:
1. Acquisitions would increase total assets of the company, increasing the wealth of the company. However, costs on R&D would be sunk cost.
2. The company can resell the acquired systems in the market, if it fails to execute its strategy. Quantity invest on the R&D could not be restored, and it will be considered totally sunk expense, if it do not offer potential outcomes.
3. Investing in R&D offer sluggish development in sales, as it takes long time to present an item. Acquisitions offer fast outcomes, as it supply the company already developed item, which can be marketed soon after the acquisition.
Cons:
1. Acquisition of company's which do not fit with the business's values like Kraftz foods can lead the company to deal with misunderstanding of consumers about Business core values of healthy and healthy products.
2 Big spending on acquisitions than R&D would send a signal of company's inefficiency of establishing ingenious items, and would results in consumer's frustration too.
3. Large acquisitions than R&D would extend the product line of the business by the products which are currently present in the market, making company not able to introduce new innovative products.
Alternative: 2.
The Business ought to invest more on its R&D rather than acquisitions.
Pros:
1. It would allow the company to produce more innovative products.
2. It would offer the company a strong competitive position in the market.
3. It would allow the business to increase its targeted customers by introducing those products which can be used to a completely brand-new market section.
4. Ingenious items will provide long term benefits and high market share in long run.
Cons:
1. It would reduce the earnings margins of the business.
2. In case of failure, the whole spending on R&D would be considered as sunk cost, and would impact the company at large. The threat is not in the case of acquisitions.
3. It would not increase the wealth of company, which might offer a negative signal to the investors, and might result I decreasing stock prices.
Alternative 3:
Continue its acquisitions and mergers with considerable costs on in R&D Program.
Vrio AnalysisPros:
1. It would enable the company to present brand-new innovative items with less risk of converting the spending on R&D into sunk expense.
2. It would supply a positive signal to the financiers, as the total properties of the business would increase with its significant R&D spending.
3. It would not affect the profit margins of the company at a large rate as compare to alternative 2.
4. It would offer the business a strong long term market position in terms of the business's general wealth in addition to in regards to ingenious items.
Cons:
1. Risk of conversion of R&D spending into sunk expense, higher than option 1 lower than alternative 2.
2. Risk of mistaken belief about the acquisitions, higher than alternative 2 and lower than option 1.
3. Introduction of less variety of innovative products than alternative 2 and high variety of innovative products than alternative 1.

Pfizer Global Protection Of Intellectual Property Conclusion

RecommendationsIt has institutionalised its techniques and culture to align itself with the market changes and customer behavior, which has actually eventually allowed it to sustain its market share. Business has established significant market share and brand identity in the metropolitan markets, it is recommended that the company should focus on the rural locations in terms of developing brand name loyalty, awareness, and equity, such can be done by developing a particular brand allowance technique through trade marketing techniques, that draw clear difference in between Pfizer Global Protection Of Intellectual Property products and other competitor items.

Pfizer Global Protection Of Intellectual Property Exhibits

PESTEL Analysis
P
Political
E
Economic
S
Social
T
Technology
L
Legal
E
Environment
Governmental assistance

Changing requirements of international food.
Enhanced market share. Transforming assumption in the direction of much healthier items Improvements in R&D and QA departments.

Introduction of E-marketing.
No such impact as it is good. Issues over recycling.

Use of sources.

Competitor Analysis
Business Unilever PLC Kraft Foods Incorporation DANONE
Sales Growth Greatest given that 5000 Highest after Service with less growth than Organisation 8th Least expensive
R&D Spending Highest since 2004 Highest possible after Organisation 3rd Most affordable
Net Profit Margin Greatest because 2004 with rapid development from 2005 to 2016 As a result of sale of Alcon in 2019. Virtually equal to Kraft Foods Incorporation Nearly equal to Unilever N/A
Competitive Advantage Food with Nourishment and also health and wellness variable Highest possible number of brand names with lasting practices Largest confectionary as well as refined foods brand in the world Largest milk products and mineral water brand name in the world
Segmentation Middle and upper middle degree customers worldwide Individual customers along with house team All age as well as Earnings Customer Groups Middle and upper center degree consumers worldwide
Number of Brands 4th 8th 3rd 6th

Quantitative Analysis​
Analysis of Financial Statements (In Millions of CHF)
2006 2007 2008 2009 2010
Sales Revenue 41698 624259 983369 443547 368285
Net Profit Margin 4.78% 6.61% 69.32% 3.38% 68.44%
EPS (Earning Per Share) 34.57 8.87 8.48 2.58 26.48
Total Asset 125583 585551 199556 612943 22892
Total Debt 36641 52911 83912 12668 67518
Debt Ratio 13% 31% 59% 88% 78%
R&D Spending 5341 7918 9886 8813 2673
R&D Spending as % of Sales 1.72% 8.34% 1.76% 3.34% 5.51%

Executive Summary Swot Analysis Vrio Analysis Pestel Analysis
Porters Analysis Recommendations