Leadership and Development - Pfizer Pharmaceutical Company - Case Study Example

Leadership and Development Proposal Introduction As the Corporate Learning and Organizational Development Manager of Pfizer Pharmaceutical Company, together with other departmental heads of our organization, we are focused towards the rapid growth of the company. Just to remind you, for the last decade we have improved in the development, production, and distribution generic drugs with nongovernmental markets in the Europe and Asia (Bolt, 2007). Pfizer is expanding into emerging markets and sustaining its rapid growth the organization has recognized the need for strong leadership and management. In this proposal paper, I am going to develop a direction and administration program for the top 30 managers of our company across the globe. The Roles and Importance of Leadership and Management Development in Organizations Leadership only refers to that art of influencing individuals, employees and the general public among others, towards conducting themselves in undertaking different perspectives in the most desired way (Bolt, 2007). For the case of managers, leadership refers to that process whereby the manager influence employees in undertaking their various assigned tasks in a more willingly, efficiently as well as effectively way. As the managers, we can are to provide a positive and professional environment in planning and controlling in more efficient ways, and the processes to which they view their responsibilities. By engaging the employees, we can we can experience a significant growth in our business. If we undertake small employee engagement in our company, then cases of frequent absenteeism accompanied with the failure of tasks completion and achieving the set targets are likely to get experienced (Kets de Vries and Korotov, 2011). Skills needed for leadership as well as management are not exclusive of each other, but instead leadership is crucial in the top management levels in our organization (Gilmore and Williams, 2009). The process of becoming an effective manager involves an individual showing qualities and competencies in major six areas (Kets de Vries and Korotov, 2011). They run across both leadership and management skills, and they form the basis for the award of a manager considered to get chartered and include the following: • Leading the employees in providing the purpose as well as inspiring their trust. • Have good management towards creativity that encourages change and driving dynamism. • Fulfilling the needs, demand and the desires of the customers by upgrading the quality of products and services to realize customers’ satisfaction. • Planning, coordinating and controlling the information and knowledge together with communication to assist in final decision making. • Keeping track of activities and resources management within the required span, to give adequate room for budgeting and meeting the required quality. • Having self-control by making use of influence as well as persuasion, to realize the achievement of personal goals (Liu, 2009). All the managers in our organization need to get equipped and have high levels of preparedness towards their management and leadership roles. The most sensitive section of this is to know how to lead and motivate our employees, across the deferent departments of the organization (Liu, 2009). I, therefore, advise our managers to come up with practical skills through a broad range of processes such as internet learning, events, and Consequential Professional Development. I believe that if we increase investments in practices resulting from employee engagement by 10%, our organization can realize an increase in profits by $1,500 employee annually. We have 1200 employees; with this figure we may realize a profit increase of $1.8 M annually (Nicholls, 2006). Leadership is the most important role of management, and it helps in boosting the efficiency levels and the realization of the set organizational goals and targets. In justify the importance of leadership, I will give the following points in concern. 1- Leadership initiates action - All the managers should begin the work by passing all the information pertaining policies and procedures to the subordinates where the work has to start from. 2- Motivation - All the managers need to prove that they are playing a most incentive role in the mainly concerned work. The managers should come up with employee motivational schemes, such as economic and non-economic rewards since this will lead to good performances on the job from the subordinates. 3- Providing guidance – Apart from the supervision role, a leader has to undertake the guiding role for the subordinates too. In providing guidance, the managers are expected to instruct and show the way forward for the subordinates on how they are supposed to perform their work in effective and efficient ways (Gilmore and Williams, 2009). 4- Creating confidence – confidence is one of the fundamental factors in the workplace, and can its achievement can get realized through the expression of the work efforts of the subordinates. Here, the managers are expected to explain the roles clearly and provide the subordinates with the knowledge of effectively achieving their goals. It is also relevant to give time to employees on issues regarding their grievances. 5- Building morale – morale leads to individual willingness and desires towards co-operation of the employees towards their duties, and this purely involves making them have confidence and winning their trust. Therefore, all the managers need to have the qualities of morale boosting to by the achievement of total co-operation. This will ensure that they give the best of their abilities as they target achieving the goals. 6- Coordination – this can get realized by the reconciliation of personal interests with the set organizational objectives, objectives, and goals. Proper and efficient co-ordination needs to be the primary motive of all the managers in our organization. If all this is get undertaken, then our company can realize improved store sale, a significant positive change in the lower performing stores (Gilmore and Williams, 2009). We will all experience a stronger teaming and relationships, as well as upgraded retention of employees with pilot groups in our large pharmaceutical retail and wholesale. Reduction in the levels of employees turnover, an improvement in recurring client business, as well as high levels of employee engagement and satisfaction in our world distribution of generic analysis. The Organization’s Background Our company manufactures markets and distributes over 322 drugs in the United States, and we have four medications that get listed among the leading 100 drugs by US sales. Our organization is the leading pharmaceutical company that is research-based, coming up with ways, developing, as well as manufacturing medicines (Pinnington, 2011). Some of the therapeutic areas where we offer our services include oncology, cardiovascular, pain, neuroscience, among other diseases, proved to have infections such as HIV/AIDS. Some of the generic pharmaceuticals we are manufacturing include Lyrica, Celebrex, Viagra, Prevnar 13, Accupril, Accuretic, Acetaminophen, Acova, Actifed Cold & Sinus, Advil, Alavert, Alsuma, Antivert and Aricept among many others. Our company is also the world’s leading animal health company, having the largest and broad range of veterinary services. We manufacture range medicinal products and medication services, both for the domestic animals and other endangered species, living in the world life. Pfizer Inc has an approximate of 90,000 employees around the world, with nearly 1200in the United States and all get devoted towards working for the improvement of the world’s health. The organization has the highest levels of biomedical research than the other rest pharmaceutical companies. The firm has employed 12000 medical research professionals working in its six major R&D sites around the globe, and among them includes Sandwich in Kent. The firm has more than $550 million investments in the UK R&D every year and more than $10 million get recorded on a weekly basis. The company’s headquarters in the USA gets based in New York. In the United Kingdom, the company has its European R&D headquarters based at Sandwich, and the UK headquarters get located in Surrey. The headquarters in Surrey is the leading supply of all the medicinal products and services to NHS. The organization has a website where it interacts with its potential clients by sharing the information concerning their levels of satisfaction and other updates on their health status. In this website, the firm advertises some of its products, including the new ones in the market. Competitive Analysis This organization is categorized as one the firms forming the SIC Industry 2834, Pharmaceutical preparations, and other companies in this criteria are Johnson & Johnson, Merck, Novartis and the most known GlaxoSmithKline. The USA patenting procedures give room for organizations to produce same, but unidentical, pharmaceutical products towards addressing the a particular health condition or crisis. This has led to a direct competition among the companies when it comes to issues to do with research on these drugs, other than their production and sale. I have come up with a review of the Porter’s Forces to provide a summary of this phenomenon together with other primary drivers of the generic drugs industry (Probert and Turnbull James, 2011). Internal Rivalry The pharmaceutical production industry gets featured with high levels of competition and series of rivalry for the sequential blockbuster drugs. The discovery process of a new blockbuster drug means billions of dollars in incomes for the discovering firm or the patent firm, hence referred to as “winner-takes-all” type of patent race. The patent company is guaranteed a stable revenue flow since it will have beaten out its competitors and leaves them costs for designing and researching. Pfizer together with the other large competing firms, in this industry, distinguish their pharmaceutical products from those of the other smaller competitors, by mass production and intensive sales. Nevertheless, the other small pharmaceutical firms have a chance of facing off with the other larger ones in competition since the industries future depends on individualized drugs based on peoples DNA (Russell, 2005). This kind of pharmaceutical products has some levels of specialization, thereby their emergence in the give the room for the more market to fill. Barriers to Entry and Exit The process of researching and coming up with a drug demands millions of money. To some extent, the therapeutic discoveries and development possess some advantages of the innovation firm since they can do this at a quick and comparatively lower cost. To some extent, firms spend more amounts of money, and they only benefit from lessons they learn from this, but not revenue. These risk and high costs incurred in the whole process, the barrier entry exhibit some levels of consideration. The pharmaceutical companies are required by the law to meet some requirements, by the stringent laid down regulations and specifications set by the American Federal Drug Administration. Apart from the American Federal Drug Administration, there are other similar agencies around the globe with almost same stringent regulations and specification. There are also some barriers to entry existing in the forms of the levels of loyalty and sales reach the company has towards the commercial markets. Taking Pfizer as an example of an established company, it has gained a lot of its loyalty from its customers who trust its generic pharmaceutical products. This is because they have the name of the company with them in their packages, and the reverse is true when it for the case of the other smaller companies. The smaller and other upcoming firms find it hard to get into a position in convincing as well as persuading companies about their products reliability and validity. They can only manage to undertake this in the presence of a proven performance track record. The other developing firms have spent a lot of resources in towards the processes of informing the public, private companies, and other nongovernmental organizations, about the existence of their products. The opposite is opposite when it comes to large pharmaceutical organizations having large volumes of sales, market groups and correctly established a promotional budget and programs. Substitutes and Complements Whenever a patient has gotten a diagnosis with a treatable disease, in particular for the drugs that are still patent, the threat of their substitution tends to get minimal. The absence of substitutes, leads to competition absence, thereby the inherent of high revenue earnings in this industry. The expiry of a patent means that generic drugs come in and start up the game, by sharing the market demand, hence undercutting in the initially set price (Shinn, 2006). There are also some preventive health strategies that different patients may undertake their substitution for diagnosis on a long term basis, especially when the expense of the prescribed medication is growing. There are some factors that influence on drugs consumption as time goes. They include better physician care, upgraded dietary practices, increased exercises and trends in consumption of organic food, among other healthy lifestyle behaviors. Supplier Power In the pharmaceutical industry, there exists vertical arrangement of firms. They conduct research, development, manufacturing, promotion and sale their products leading to very minimal supply power in the industry. Labor force forms that biggest supply power source; therefore all that a company needs to increase its supply power is to employ high-skilled employees. Strategic Issues In the current pharmaceutical industry, Pfizer has predominated, and produces the global leading income top drug Lipitor, and possess a market capitalization approximated to $180 billion. In the year 2011 our company made it to a net profit margin of more than 30%, and this figure has not yet gotten envied. In other words, the company is facing an extremely dynamic market, therefore the previously used formulations that have performed well over the last decades may start failing shortly. Issue #1: A Changing Industry The standard approach to the organization entailed conducting numerous researchers with an aim of coming up with “blockbuster drugs”. These particular type of drugs have consistently earned the group an excess of $1 billion annually. The firm has had success in the discovery of these pharmaceutical products, such as Lipitor and Viagra, which are the largest income generators. This has made the company to have the ability to hire high experienced profession in drug products, as well as experiencing high levels of bureaucratic inefficiency. The industrial is likely to undergo some crucial dynamism that may affect the operations. Issue # 2: The Rising Role of the US Government in Description of the Drug Market The US government has come up with measures to ensure that everyone must have Medicare, hence qualifying for a prescription. The government requires everyone to have a medical insurance, and this will impact on the declining pressure on the prices of drugs. The emergence of the national health care system will mean that the revenue earned in the pharmaceutical industry will decline, leading to poor performance of most of the companies, Pfizer inclusive. Recommendations 1. Maximizing Income, Both in the Short and Long Run This can get realized if the company maintains a product pipeline that will give a steady flow of pharmaceuticals. These products should get hoarded, and only a smaller portion of it needs to get released to the market (Gilmore and Williams, 2009). Since the firm has patent rights to some products, there will a rapid increase in their demand, resulting to price shoot up and after this is when they’ll get released. The company can also realize this by protecting the income of its current services portfolio, despite the loss of exclusivity of the products. The fact behind this is that most of the company’s products have gained a lot of loyalties from the public, despite the high pricing. 2. Coming up With a Low Highly Flexible Cost Base and Making the Company the Best Place to Work The company has to dismiss some its employees, remain with an adequate and significant number to whom it can pay them better. This will enable the organization to reduce on the excess resources spent on the salaries of the excess employees, thereby a substantial increase in the organization’s revenue margins (Shinn, 2006). This will also enable the organization to streamline the employee’s base resulting in a total accountability and responsibility of each employee to his/her signed duty. The resultant effect of this is that the organization will get I a position to improve on its production and service provision qualities, despite having a fewer number of employees. 3. Making Emphasis on Key Comparative Advantages The company has to ensure that it captures the advantages resulting from the economies of scale in the areas of sales, production, and marketing. The doctors employed the firm need to have knowledge of the existing and available drugs, and due to the company’s size the organization will have an upper hand in providing this information than the others. Since the company has a high sales force, it will get in a position to produce more products and conducting high levels of promotion and awareness. The loyalty level, as well as the trust gained by the public to the company, will make the organization beat others in the market share. The body can also experience this by expanding overseas, opening other new outlets in other continents, such as Africa and Australia. Conclusion It is our hope as well as the organizations objectives, goals and targets that our company continues predominating in the pharmaceutical industry. These can only get realized if all the stakeholders and shareholders come together towards providing ideas, guidelines and help to help improve in decision making (Nicholls, 2006). It is the mandate of managers, for the different departments, overseas and in America to improve their service provision towards their employees as outlined above foe the company to realize benefits from this sustainable change. This will ensure that the firm develops in its service provision, quality, and quantity, thereby outplaying our global competitors. Bibliography Bolt, J. (2007). Leadership development. [San Francisco, CA]: Pfeiffer. Gilmore, S. and Williams, S. (2009). Human resource management. Oxford: Oxford University Press. Kets de Vries, M. and Korotov, K. (2011). Leadership development. Cheltenham, UK: Edward Elgar. Liu, K. (2009). Systemic leadership development. Leadership in Action, 19(3), pp.12-13. Nicholls, J. (2006). Congruent Leadership. Leadership & Org Development J, 7(1), pp.27-31. Pinnington, A. (2011). Leadership development: Applying the same leadership theories and development practices to different contexts?. Leadership, 7(3), pp.335-365. Probert, J. and Turnbull James, K. (2011). Leadership development: Crisis, opportunities and the leadership concept. Leadership, 7(2), pp.137-150. Russell, L. (2005). Leadership development. Alexandria, Va.: ASTD Press. Shinn, G. (2006). Leadership development. New York: Gregg Division/McGraw-Hill. Read More