Pfizer Corporation - Research Paper Example

Examination of US Corporations Pfizer Inc. Pfizer is perhaps one of the few corporations at the top of the corporate web that appear to be synonymous with biopharmaceuticals production and supply in the global market. The gigantic stature in global market implies that the corporation interacts with the public in terms of corporate scrutiny as it does for its beneficial contribution in the healthcare sector. Despite its role in making contributions in healthcare, Pfizer has not been spared a skeptical look by the public, the impact of which has generated substantial corporate debate due to the socioeconomic connection thereon. In view of the actual corporate position occupied by the corporation, this discourse highlights various issues that associated scrutiny entails. The company’s profile in operations and market share, economic resources, leadership and general performance constitute this analysis. Company Profile As indicated above, Pfizer is a market leader in the biopharmaceutical industry, commanding a significant market share for human and animal medicines, consumer healthcare and nutrition products. Growth of the company since its incorporation in 1942 is illustrated by acquisitions of other companies, such as the recent acquisition of Wyeth in 2009 to a tune of US$68.2 billion and 92 percent of King Pharmaceuticals in 2011 for US$3.3 billion. Continued expansion at the company is testament to the achieved success, for instance as illustrated by the recent strategy enhancement of the Animal Health and Nutrition function in 2011. Reorganization of strategy is witnessed at Pfizer for instance in the recent sale of Capsugel wing for US$2.4 billion in 2011, without compromising its position in the market. Other acquisitions include those of FoldRx Pharmaceuticals in 2010 as well as Excaliard and Icagen in 2011 (EdgarOnline, 2011). Products portfolio for the company extends from specialty care that entails ordinary prescription drugs and oncology products. Animal health products such as vaccines and anti-infectives coupled with a consumer healthcare segment with supplements and personal care products complement additional market diversification. Examples of such products brands include BeneFIX, Enbrel, Genotropin, Geodon and Aromasin. Global presence across the continents illustrate business success in competing at the highest levels, with a keen interest on the emerging markets such as Africa, Latin America, Middle East as well as Central and Eastern Europe (Pfizer, 2012). Analysis In terms of the company’s size, assets and revenues of the company for the recent operating period illustrates the stature it possesses in the global market. Total assets in 2011 stood at US$188 billion, which is a reflection of a significant drop, from US$195 billion recorded in 2010. Alternatively, the company’s financial assets dropped from US$35 billion, from the previous records of US$38.6 billion. Despite the recorded drop in asset base, realized acquisition and disposals still present Pfizer as a global leader in the industry. Revenues in 2011 for biopharmaceutical products amounted to 1 percent growth from the previous year to stand at US$67.4, amid changes in operations from internal and external events that brought a slight reduction from the previous figures posted. The net income generated from the operations of the company in its global portfolio amounted to US$10 billion for the year 2012, a reflection of about 14.8 percent growth. Domestic market performance in revenue generation reduced by 9 percent in 2011, while the overseas operations posted an increase of about 6 percent, owing to financial factors such as the foreign exchange rates. The huge share of international operations in revenue generation, at about 59 percent of overall revenues offset the reduced performance on domestic market for the year 2011 (Pfizer, 2012). The company has a wide and strong directorship footing to support its operations in the global presence, with a board consisting of 17 directors. Among these directors include business technocrats and researchers who have made tremendous contributions to the success of the company’s leadership. The origin and backgrounds of directors makes the leadership at Pfizer a complicated professional and experienced pool of directors, a few included in Table 1 below. Table 1: Pfizer Inc.: directorship, interlocking-directorship and compensation (They Rule, 2012; LittleSis, 2012; Forbes, 2012) Name Position Other roles/ interlocks Compensation US $ Jeffrey B. Kindler Director/ Chairman/ CEO boards of trustees of Tufts University and Ronald McDonald House Charities 24,688,849 (2010) William H Gray III Director Director JPMorgan Chase and Dell Inc., Prudential Financial Inc., Visteon, - Dennis A. Ausiello Managing Director President Association of American Physicians, member Institute of Medicine of the National Academy of Science, Chief of Medicine at Massachusetts General Hospital since 1996 260,832 (2010) Constance Horner Director Prudential Financial Inc., Ingresoll-Rand PLC 243,750 (2011) James M. Kilts Director Director at MetLife Inc., Del Monte Foods Co., Chairman of the Board/ director Neilsen Holdiongs, Director MeadWesvaco Corporartion Pfizer 277,898 (2011) MetLife 289,124 (2011) William C. Steere Jnr Director Chairman Emeritus, Director Health Management Associates Inc., Former CEO Pfizer (2001) Pfizer 86,250 (2011) Health Mngt A. 250,100 (2011) Dana G. Mead Director Chariman MIT, Chairman and CEO Tenneco, Director Boys& Girls America - Impact on Human Lives Apparently, these individuals wield a lot of influence in the corporate and political arena, which affects the way Americans are governed. Other directors include; Ian C Read, Martin Mackay, http://littlesis.org/org/48/Pfizer_Inc._M Anthony Burns, http://littlesis.org/org/48/Pfizer_Inc._W Don Cornwell, http://littlesis.org/org/48/Pfizer_Inc._George A Lorch, Robert N Burt, http://littlesis.org/org/48/Pfizer_Inc._Michael S Brown, http://littlesis.org/org/48/Pfizer_Inc._Allen P Waxman, Stephen W Sanger, Karen L Katen and William R Howell. The network of assignments and earnings that these leaders have enabled them to make influential decisions in nearly every aspect of the modern global politics and policies. As an illustration, the political funding and donations that several of these individuals make influence the position of power in governments, hence indirectly influence outcomes in socioeconomic and political decisions locally and internationally. Pfizer has recorded milestones in its operations, in terms of facilitating provision of treatment and medication to the global population using its world-class research and development findings. One of the global objectives in these times is the reduction of suffering sustained in diseases and ailments, and reduction of deaths from such diseases. Contribution of this company towards emerging diseases and complicated ailments is invaluable and worth commendation from industry stakeholders (Shcreck, 2009). Milestones in enabling control of health conditions at Pfizer are a responsibility that extends beyond corporate objectives to include socioeconomic impacts that the world population finds appropriate. Corporate tax compliance enables the governments, on which land their plants and operations continue, to gain revenue for socioeconomic development. The impact of healthcare products manufacturing at a number of Pfizer plants has brought a negative tag to the corporate social responsibility policy at that the corporation. For instance, the hazardous interaction with chemicals in production of drugs exposes local communities to health risks, an area where the company should assist. The most recent interaction with a negative tag is the production plant at Groton, which contributes to environmental pollution (Bellack, 2008). Additionally, Pfizer has contributed to a number of malpractices, landing the investors in trouble of paying hefty fines to regulatory bodies. Environmental pollution and business process malpractices such as tampering with supply regulation have exposed the company to negative publicity. The decisions made at the company represent a complex market strategy to withstand pressures of the international markets, which evidently brings more revenues than the domestic market. In terms of the investment strategies adopted by the company, the broad market presence using the currently applicable product portfolio shows that the company is keen on accuracy against a backdrop of financial crisis at the international market. Research and development with an interest in offering solutions to emerging diseases and conditions facilitates the company’s connection with trending occurrences in the market. As an illustration of this preparedness, the provision of food supplements in the products portfolio captures the cynical market segment that would not consume chemical products. International market success in different products shows able leadership, which comprises of different expertise fields ranging from business professionals to medical technologists. These details illustrate the importance of business management practices within the broader picture of globalization trends as supported by information and technology. As such, theorists would rank Pfizer among the best ran multinationals and highlight the pressures faced by such companies from different perspectives. References Bellack, D. (2008). “Pfizer to Pay $975,000 for Alleged Air Violations at Connecticut Facility,” Retrieved from http://forums.startsampling.com/showthread.php?t=20622 EdgarOnline, (2011). “Pfizer Inc.,” Retrieved from http://yahoo.brand.edgar-online.com/displayfilinginfo.aspx?FilingID=8445225-895-231151&type=sect&tabindex=2 Forbes (2012). “Profile: Constance Horner,” Retrieved from http://www.forbes.com/profile/constance-horner/ Lewis, M. (2010). “Healthcare Reform Law Delivers New Transparency Requirements for the Health Industry.” Retrieved from: http://www.morganlewis.com/pubs/WashGRPP_FDA TransparencyRequirements_LF_29mar10.pdf LittleSis, (2012). “Persons: Dana G. Mead,” Retrieved from http://littlesis.org/person/1785/Dana_G_Mead/interlocks Pfizer, (2012). “Appendix: 2011 Financial Report,” http://www.pfizer.com/files/annualreport/2011/financial/financial2011.pdf Shcreck, P. (2009). “The Business case for Corporate Social Responsibility,” Contributions to Management Science, 13(1):124-128 They Rule (2012). “Companies: Pfizer, People,” Retrieved from www.theyrule.net Read More