Monday, December 2, 2019
Pfizer Organization Financial Strategies
Opportunities for Improvement Pfizer organization has a high level of liquid assets. With its diverse healthcare services such as primary healthcare, special oncology and care, animal healthcare, and nutrition products among others, it is clear that the companyââ¬â¢s amount of health services is likely to continue increasing.Advertising We will write a custom report sample on Pfizer Organization Financial Strategies specifically for you for only $16.05 $11/page Learn More The increasing demand of animal medical products and many unexploited business products are major business opportunities for the company. However, the evident problem is that the company has very little fixed assets. This is reflected by the fact that Alcon comprises 24.5% of the companyââ¬â¢s liquid assets. Amount of debts At the amount of both long-term and short-term debts, Pfizerââ¬â¢s debt level leads in its risk factors. Its major expansion strategies are based on long-te rm debts. The company uses both debt instruments and equity debts to address its financial needs and enhance the efficiency of its operations. The existence of many financial instruments presents a major opportunity for the companyââ¬â¢s quick expansion. However, it is a challenge to some of the shareholders since some of them prefer to have quick returns on their investments. Pfizer has got an unfavorable credit rating. Product-lines bringing in cash The sale of its products is a good way of generating cash revenues. As an opportunity for improvement, the company should pursue markets in underdeveloped states across the Globe. Unfortunately, repatriating revenue from its foreign investments has increasingly become a major problem to the top level managers. The company can still get more income avenues by innovating new medical and health products. The acquisition of King presents a new revenue generating opportunity (Mennen, 2010). Extent and specifics of borrowings As the world ââ¬â¢s leading research institution, the company borrowing ability is focused on generating revenue for its research operations (Ferell Hartline, 2010). This approach presents a lot of financial constraints to the companyââ¬â¢s demand for finances to address its financial demands that relate to expansion of its operations and infrastructure development.Advertising Looking for report on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More The company does not have a huge borrowing capacity as it would otherwise be assumed.à Pricing of products or services Fund transfer is a pricing mechanism employed by the Pfizer organization. The point that the company often increases prices of old drugs due to the fact that the patent protection for such drugs is lost over time could make some clients shy away. Although aimed at compelling customers to switch to new and better products and services developed by Pfizer, there is a ri sk for pricing mechanisms to portray the company products and services as very costly in the healthcare market. Identified Solutions Pfizer has got a high level of liquid assets that presents a major challenge to the future strategic investment mechanisms for the company. To address this problem, the company should endeavor to have many fixed assets that would help generate income and thus encourage sustainable growth due to state income. While debts could be unavoidable in business, Pfizer organization should focus on minimizing its short-term debts and instead utilize long-term debts such as government and corporate bonds that have a long maturity period with fairly low interest rates. Bowing should be restricted to acquiring finances aimed at expanding company operations, improving the state of infrastructure and enhancing the level of manufacturing and cost effectiveness in Pfizerââ¬â¢s business operations (Ahati, 2008). On challenges facing its products that bring some cash in, the company should streamline its operations and ensure that matters related to foreign operations and Global Health strategies stocking of large multinational health corporations are focused on maximizing its revenue streams. The solution to the possible challenges facing its pricing strategy is to focus on enhancing the level of efficiency and cost effectiveness. The company could also opt to sell its products to managed-care organizations at a lower or affordable cost thus minimizing its market prices hence enhancing its competitiveness.Advertising We will write a custom report sample on Pfizer Organization Financial Strategies specifically for you for only $16.05 $11/page Learn More References Ahati, T. (2008). Marketing Analysis: Merck Co., Inc. Pfizer Inc. Web. Ferell, O. C., Hartline, M. (2010). Marketing Strategy,5th Ed. Connecticut, USA: South-Western CENGAGE Learning. Mennen, M. (2010). Innovation Growth ââ¬â A case study of Pfizer Essay. Die Deutsctsche, Auflage: GRIN Verlag. This report on Pfizer Organization Financial Strategies was written and submitted by user Barbara Abbott to help you with your own studies. You are free to use it for research and reference purposes in order to write your own paper; however, you must cite it accordingly. You can donate your paper here.
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