MGMT 4580: Strategic Management
This article explains how Pfizer, an American multinational pharmaceutical corporation, is planning on moving part of their supply chain and manufacturing operations to outside contractors. Mike McDermott, president of global supply at Pfizer said they will partner with two outside contractors: Catalent Inc and Lonza Group AG to move their production. They are doing this, so they can free up their manufacturing facilities to produce vaccines for Covid-19 virus.
How does this article link to chapter 1: (Explain in your own words how this article explains one or more concepts of the Chapter 1)Chapter 1 talks about three times of organization stakeholders: capital market stakeholders, product market stakeholders, and organizational stakeholders. Organizations have to maintain a good relations with all three stakeholders in order to achieve competitive advantage. This article helps us explain how Pfizer’s organizational stakeholder, Mike McDermott, president of global supply, is working with two product market stakeholders: Catalent Inc and Lonza Group AG. There is race in pharmaceutical industry to see who can make the first Covid-19 vaccines. The firm who is first able to produce such vaccine will have a competitive advantage. However, firms cannot achieve this by themselves. They will have to work with different stakeholders to achieve this goal. For instance, it is going to cost Pfizer $150 million to move their productions to outside contractors.
Therefore, they will have to rely on capital market stakeholders such as banks and investors for loans. Similarly, they will have to rely on product market stakeholders such as suppliers of chemicals, instruments, and packaging to make the new vaccine. And organization stakeholders will play a big role in this operation. Employees will be in the front line of this manufacturing process, while top managers will work with different product market and capital market stakeholders to ensure that they have the support and access to resources to achieve this goal.
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