by Ben Sissom

Created on: January 09, 2011   Last Updated: January 10, 2011

“An integrated understanding of the external and internal environments is essential for firms to understand the present and predict the future” (Hitt, Ireland, Hoskisson, 2009) In order for Pfizer to remain competitive today and into the future they will need to take a long look at the six elements of the general environment: Economic, Socio-cultural, Global, Technological, Political/Legal and Demographics. Looking at these from an internal perspective as well as from the competitors point of view will provide a road map for strategic long term decisions that need tobe  made within the organization. Being profitable is key in business longevity.

In the article “Pfizer’s Funk”, Hank McKinnell is quoted saying “As for those who argue that the blockbuster model is a bust, he has sharp words: "People who advocate that don't understand our business." (Barrett, 2005) Obviously by his statement and management style the pharmaceutical industry is different in many avenues than other companies. It seems that Hank McKinnell believes in the “Go Big, or Go home” theory to business.  In order to do this we must look at where the business is currently, and where it is headed as an industry.

Economic

Currently in 2010, the country has been digging out of a recession that has affected every level of society. Many have lost their homes, seen their heating and gasoline bills double not to mention the high unemployment numbers that continue month after month.  In order to be successful they will need to market their name brand drugs to doctors as being worth the additional costs, and be able to show results. Otherwise they will lose the business to generic drugs offered by smaller companies.

Socio-cultural

Viagra was introduced in 1998 and like this erectile dysfunction pill; Pfizer will need to pay special attention to the shifting preferences regarding their product lines.  Knowing what the public is requesting and filling the demand before the competitors will be crucial in the future.

Global

To remain competitive they will need to provide their products in markets outside the United States. Taking advantage of tax breaks overseas and expanding the markets to the next generation of consumers will help maintain and grow their business.  Speaking of global financial decisions, “He certainly has the financial muscle - Pfizer is expected to generate $10 billion in free cash flow in 2005 and

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