Pharma Industry Research Method Business Strategy

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Executing Change in the Pharma Industry - Prescription for Pfizer

Description:    Pharmaceutical history is littered with the abandoned husks of great ideas, many costing a king’s
                ransom and never able to live up to their promise. Indeed, there is little doubt that in recent years
                pharmaceutical companies have been getting their execution wrong. The key to future survival and
                success is a company’s willingness to embrace change and adopt new approaches to execution.
                Pfizer’s recent implosion speaks to the heart of the challenges facing the pharmaceutical industry
                today.

                Dynamic changes are under way in this industry, and downsizing alone is unlikely to be enough to
                save many companies. This report suggests several changes to both strategy and execution that
                will help companies be viable in tomorrow’s marketplace. While there are both challenges to
                overcome and pitfalls to avoid along the way, getting execution right now matters more than ever.

                Get the Answers You Need to Shape Your Strategy

                There is little doubt that in recent years, pharmaceutical companies have been getting their
                execution wrong. What mistakes have been made and how can companies correct their execution
                of strategic goals?

                The cost structure of today’s pharmaceutical industry has changed. What procedures will improve
                effectiveness in this new business environment?

                A number of valuable opportunities for change exist for pharmaceutical management. What are
                they, and how will they affect the success of the industry?

                There are major impediments to change in the pharmaceutical industry. What are they, and how
                can they be overcome?

                Scope

                -Basic concepts affecting and impeding company change: corporate culture, strategy versus
                execution, behavior versus attitude, efficiency versus effectiveness.
                -Pfizer: victim of its own success and prescription for change.
                -Prescriptive plans for Pharma: simple strategies to improve execution of strategic goals.
                -Cost-cutting: a vicious cycle of long-term, negative effects from short-term solutions.
                -Marketing & selling: optimizing direct-to-consumer advertising and sales force size.
                -Lipitor: useful as a litmus test for the impact of promotion on sales in the current market.
                -Outsourcing and off shoring: cost-efficiencies that create tomorrow’s competition.



Contents:       Executive Summary
                Strategic Considerations
                Stakeholder Implications
                Companies Have Been Getting Execution Wrong
                Basic Concepts
                Strategy and Execution
                Behavior
                Attitude
                Strategy-Execution Disconnect
                A Vicious Cycle Arises from Shedding Employees to Cut Costs
                Knowledge/Organizational Size Disconnect
                Efficiency
                Effectiveness
                Marketing & Selling
                Efficiency and Effectiveness in Pharmaceutical R&D
                Wars of Attrition over Sales forces
            Direct-to-Consumer (DTC)
            Getting Execution Right Now Matters More Than Ever
            Prescription for Pfizer
            Pfizer in a Nutshell
            Falling on Your Sword
            Victim of Its Own Success
            Look Beyond Simplistic Downsizing
            Pfizer’s Current Predicament
            Lipitor as a Litmus Test for the Impact of Promotion on Sales
            Pfizer’s Pipeline Progress
            Pressure to Find Sufficient New Products
            Corporate Size Limits Available Targets for Development
            Increased Product Opportunities for Smaller Companies
            What Pharmaceutical Companies Can Learn from Pfizer’s Current Predicament
            Five Quick Wins for Pharma
            Downsizing the Sales force
            Changing the Focus of DTC Promotion
            Zero-Based Budgeting
            Return-on-Investment (ROI)
            Cultural Audit
            The Bottom Line
            The Curse of the Margin
            The False Prophets of Outsourcing and Offshoring



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