Critical Competitive Dimensions in Pfizer Inc.

Critical Analysis: Pfizer
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Table of Contents TOC \o "1-3" \h \z \u Introduction PAGEREF _Toc104365794 \h 3Critical Competitive Dimensions of the Pharmaceutical Sector PAGEREF _Toc104365795 \h 3Climate Risks of the Pharmaceutical Industry PAGEREF _Toc104365796 \h 3Income Statement Analysis PAGEREF _Toc104365797 \h 5Use of Technology and Data for Managing Climate Risks PAGEREF _Toc104365798 \h 6The company focus on Climate Change on Social Media PAGEREF _Toc104365799 \h 7Conclusion PAGEREF _Toc104365800 \h 7References PAGEREF _Toc104365801 \h 8
“Critical Analysis: Pfizer”
Introduction
Due to rising temperatures, climate change disruptively affects global industries, a growing threat to humanity and the environment. In that case, organizations proactively take measures to minimize the risk factors to overcome the losses concerning climate change (Seidler et al., 2018). Similarly, Pfizer, the pharmaceutical company, is leading responsive measures to tackle this issue and manage the social, governance, and economic risks in the work settings.
Critical Competitive Dimensions of the Pharmaceutical Sector
The abrupt changes in the pharmaceutical industry have transformed the key success dimensions, which are the prime focus of modern organizations to attain high sustainability. According to Kwon, Kim, and Lee (2020), the pharmaceutical industry is adopting innovations proactively to be more responsive in dealing with emerging health issues such as the COVID-19 and other pandemic diseases. Henceforth, top management effectiveness, technical readiness, innovation capabilities, competitive advantage, financial strength, robust business strategies, high sustainability, strong staff morale, product efficacy, and quality are critical success factors to maximize the results. Also, a strong relationship with customers is another success factor for the pharmaceutical industry (Dadfar et al., 2014). Likewise, Pfizer focuses on the mentioned dimensions to maintain its competitive edge in the industry by eradicating the rising risk factors. With the focus on the competitive success dimensions for Pfizer, understanding the climate risk considering its impact on the business risk at macro and micro levels is potent to discuss, which is mentioned below.
Climate Risks of the Pharmaceutical Industry
Based on the adverse impact of climate change on the pharma business, the big giants are extracting opportunities from the situation by maximizing their profits. However, the pharma imposes risks on the environment. Kerdpitak (2020) highlighted that climate risks are severe on the pharma’s financial, economic, social, and environmental performance due to higher temperatures that lead to health issues and premature deaths. The following are associated risks due to climate change in the pharma industry, considering the Pfizer case. As per Pfizer's (2021) report, Pfizer analyzed that the company faced risks to human health, a disrupted value chain, and severe weather conditions that directly affected its capability to manage the rising demand for vaccines and medicines.
Physical Risks
Based on the Pfizer (2021) report, Pfizer evaluated the physical risks with the observation of the 5000 suppliers and magnified that the temperature rose from 0.2 to 3⁰C, which directly imposed the risk on the organization’s performance and credibility to meet the demand of the rising rate of diseases. In that case, the risk scorecard proposed that the physical risk imposed risk on the operations due to the expansion of diseases in the temperate zones. Thus, Pfizer’s management deals with the acute physical risks through the Business Resilience program at local and enterprise levels.
Transition Risks
Climate change affects the adopted policies and strategies for the business, as Pfizer faced the transition risks due to the evolving environment; as the chart below shows, each stakeholder faces the risk of the changing situation.
Figure 1: Transition Risks related to stakeholders (Pfizer, 2021)
Operational Risk
Pfizer (2019) particularly highlighted that the business faced the strategic issues due to rising operating costs due to the carbon taxation, disruptive supply chain, reduced revenue margins, and climate-related disruptions, including the growing demand for the low-carbon products, medicine upsurge for the new and unknown diseases, and climate-related diseases. In that case, Pfizer is taking measures based on the operational risk evaluations (OREs), which support the business in managing to eliminate carbon emissions.
Market Risk
According to the focus on the Pfizer market risk, Pfizer (2021) magnified that c...