Pfizer’s Organizational Structure & Structural Components

Pfizer’s organizational structure meets the needs of the pharmaceutical business and its international market reach. This organizational structure or company structure is designed specifically for biopharmaceutical product development and a global market reach. In this case, the company structure and organizational design reflect Pfizer’s competitive advantages. For instance, this organizational structure emphasizes pharmaceutical product development and innovation, which are the core business and strength of the company. Through the segments and divisions of this business structure, Pfizer’s top executive leadership effectively brings organizational processes and resources together to achieve long-term strategic objectives for the company’s prominence in the international market for biopharmaceuticals.

Pfizer attains its long-term business goals through the appropriateness of its organizational structure to its business needs and the trends in the industry. For example, the objectives of Pfizer’s vision statement, mission statement, and business purpose for patients are satisfied through the operations of the company’s Oncology Division to benefit cancer patients and related healthcare services. With this company structure, Pfizer sustains its capabilities to develop and improve medicines and vaccines that match current and emerging needs in healthcare.

Components of Pfizer’s Organizational Structure

Pfizer’s structure has characteristics similar to those of many multinational business organizations. However, business goals and requirements relating to healthcare trends are integrated into this corporate structure, leading to divisions specific to the company’s biopharmaceutical operations. The following are the main components of Pfizer’s organizational structure:

1. Central Corporate Executive Team
2. Global Operating Segments
3. Biopharma Divisions

Pfizer’s Central Corporate Executive Team is responsible for the coordinated operations and development of all segments, divisions, and departments of the organizational structure. Executives of this team lead offices and departments, which have their respective hierarchies, objectives, and responsibilities for various aspects of the biopharmaceutical business organization. For example, the People Experience organization is responsible for integrating Pfizer’s work culture (organizational culture) into the company’s human resource development. Also, the corporate executive team ensures that this business structure facilitates support from all areas of the organization. For instance, in Global Supply, Pfizer’s operations management applies measures for optimal productivity concerning supply chain management. The following are the components of Pfizer’s executive team:

1. Office of the CEO
2. Corporate Affairs
3. People Experience
4. Global Supply
5. U.S. Commercial
6. General Counsel
7. Compliance, Quality, and Risk
8. International Commercial
9. Digital and Technology
10. Science
11. Research & Development
12. Finance
13. Oncology
14. Strategy and Innovation

The Global Operating Segments of Pfizer’s company structure represent two main types of business operations: biopharmaceutical development, manufacturing, distribution, and sale (Biopharma), and partnerships with other business organizations for innovation related to biopharmaceuticals (Business Innovation). With this business structure, the activities of the operating segments follow trends in the biopharmaceutical industry. For example, industry factors guide decisions on the goals set for these operating segments and the entire Pfizer organizational structure. Such correlation with external factors in the biopharmaceutical industry optimizes the performance of these operating segments. Also, through the activities of the Business Innovation segment, this company structure relates to Pfizer’s CSR and ESG strategy for stakeholders, with external partners as stakeholders in the company’s innovation endeavors. The following are Pfizer’s global operating segments:

1. Biopharma
2. Business Innovation

Pfizer’s Biopharma Divisions reflect the prioritization of biopharmaceutical operations in this corporate structure. These divisions form the Biopharma operating segment. Considering the significance of Biopharma as the main revenue generating unit, Pfizer’s organizational structure involves additional structural characteristics for the Biopharma segment. The divisions of the Biopharma segment are significant because they ensure the competitiveness of the company’s medicines and vaccines. These divisions of the Biopharma segment address competitors, like Johnson & Johnson and Eli Lilly, and the corresponding industry rivalry. The strategies and tactics included in Pfizer’s marketing mix (4P) are applied differently among these divisions of the company’s organizational structure. For example, marketing strategy for the Pfizer U.S. Commercial division differs from that of the Pfizer International Commercial division. The following are Pfizer’s Biopharma divisions:

1. Pfizer Oncology Division
2. Pfizer U.S. Commercial Division
3. Pfizer International Commercial Division

Strategic Management and Pfizer’s Structure

Pfizer’s organizational structure supports the development of the multinational biopharmaceutical business. The company’s structural characteristics prioritize the centralization of executive control through the corporate headquarters, indicating a centralized approach to managing the entire business organization. The executive departments and operating segments of this organizational structure have their respective implementations of Pfizer’s competitive strategies and growth strategies. For example, the Business Innovation segment focuses on technological innovation in collaboration with other firms to support product development and differentiation. In contrast, the Biopharma segment focuses on product differentiation through innovative research and development, and applies cost leadership through economies of scale in manufacturing Pfizer’s medicines and vaccines.

References

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• Miozza, M., Brunetta, F., & Appio, F. P. (2024). Digital transformation of the Pharmaceutical Industry: A future research agenda for management studies. Technological Forecasting and Social Change, 207, 123580.
• Pfizer Executives.
• Pfizer Inc. – Who We Are.
• Pfizer Inc. Form 10-K.