Pestle Analysis

Pfizer is a pharmaceutical and biotechnology company based in Manhattan, New York, in the United States that manufactures and markets different prescription drugs. It is affected by external factors beyond its control. The factors can be described through the PESTLE analysis framework. The political stability in the United States has helped the company grow, but since it has operations in different countries, growing tensions limit its growth. Changing government policies also increase business uncertainty for the company as governments can create policies to achieve other objectives affecting the company negatively. Economic factors include taxation, inflation, and employment rates.
High taxation reduces Pfizer’s revenues and vice versa. Conversely, unemployment levels create surplus labor and lower wages, while high-interest rates increase borrowing and investment, creating growth opportunities for Pfizer (Gregory, 2018). Social factors include demographics, buying behavior, and buying and spending patterns. Changes in demographics affect the company’s marketing segment, while cultural and societal attitudes influence consumer behaviors towards its products (Gregory, 2018). Spending patterns such as online shopping also influence the company to support e-commerce. Technological factors such as the internet influence the company, as it has adopted social media marketing strategies. Technology has also influenced its investment in research and development to compete with other competitors in the industry to develop new products (Gregory, 2018).
Environmental factors also influence the company. Because of environmental pollution, the company has been compelled to develop waste management and recycling practices as part of CSR (Dess et al., 2018). It has efficient waste management practices to prevent environmental pollution, which is a crisis, especially in urban areas with large corporations. The legal environment is not favorable for the company as it has to follow employee potation laws such as discrimination laws and health and safety regulations to ensure the safety of employees (Arnum, 2021). It also has to adhere to consumer protection laws such as those about the privacy of confidential information. Lastly, there are price laws that regulate the prices of is pharmaceutical products and quality standards, which have to be complied with.

Arnum, P. V. (2021, September 28). Inside Pfizer: The challenges and opportunities. DCAT Value Chain Insights.
Dess, G.D., McNamara, G. & Eisner, A. (2018). Strategic management: Text and cases (9th ed.). New York, NY: McGraw-Hill Companies, Inc.
Gregory, L. (2018, August 19). Pfizer Inc. analysis: Products, markets, strengths, risks, recommendations. Panmore Institute.
Kratochvil, R., & Nell, P. C. (2019). Pfizer and the challenges of the pharmaceutical industry. Ivey Publishing.

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