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PFIZER

(We are going to launch Pfizer into the Australian Market )

Pfizer, a number one pharmaceutical American company with its research head quarters in

Groton and Connecticut was found in 1849. It mainly produces antibiotics, anti-inflammatory

drugs, antifungal drugs,Viagra, neuropathic pain relievers and lipitor as its main products.

Pfizer's shares were made a component of the Dow Jones Industrial Average on April 8,

2004.

Pfizer pleaded guilty in 2009 to the largest health care fraud in U.S. history and received the

largest criminal penalty ever levied for illegal marketing of four of its drugs. On January 26,

2009, Pfizer agreed to buy pharmaceutical giant Wyeth for US$68 billion, a deal financed

with cash, shares and loans. The deal was completed on October 15, 2009.

Revenue us$ 67.809 billion,operating income us$9.422 billion ,Net income us$8.257

billion,Total assets us$195.014billion,Total equity us$88.265 billion,employees 110,600.

SWOT ANALYSIS

Strengths

High budget pharmaceutical industries having the revenue of $50 billion.

Its number one pharmaceutical from sales point of view and its marketing infrastructure is

well established throughout the world.

Pfizer has 7.5% of ranking corporation market share.

Pfizer has a global working network with 95,000 workers around the globe, in all the

continents.

The company profits has gradually been improved from $48.2 billion in 2008 to $50 billion

in 2009 and then jumping directly to 67.8 billion, which means that its sale has increased

from 16.02 to 22.89 %, which is the big achievement in rising revenues.

Their research and development sector is highly established and in good strength, and that is

its primary business strategy.


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Thei therapeuti coverage i very large and the innovative researchers are broadening it

further.

Their reputation has been established for years on number of products.

It has wide range of area being worked, thatincludes Human health, animal health,

customer health and corporate groups.

Involved in licensing agreements with different companies for collaborative research work.

Their main strength is R& D, sale and marketing of Lipiter, Viagra and celebrex.

Along with the increased production, Pfi ers marketing policy includes their products on

theprescription writings. This taskis done by directly targeting the customers, approaching

physicians and targeting drugs management organi ations directly.

Weaknesses

In latter stages of production they often discontinue the activity, increasing its demand.

Not specifically working in the area of primary concern in the drug markets including CV

and CNS.

Its co marketing with other companies and merging with other pharmaceuticals can halter

its global popularity.

Opportunities

Bought King pharmaceutical for $3.6 billion which would open up more manufacture and

sales adding to the capital ofthe company (Carrie, 2009).

Pfi eris reconstructing its strategically approach by cutting the manufacture cost.

High profits, revenues and funds are available to upliftthe companys progress.

Expansion ofthe biologic pharmacy market. Marketing agreements with the leading companies.


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Threats

Illegal marketing of Pfi ers drugs makes it potent notto be reliable, and forthatthey had to

pay the biggest ever penalty in the history of U.S.

Pfi eris losing its patentindividuality by focusing on one product.

Large manufacture and low research for new inductions in the market could decline

the profitability.

Same products are available at cheaper rates by other brands, like Viagra.

Outstanding competition of regional markets along with emerging markets of India

and China.

Negatively publici ed by being sued by their customers.


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Economy of Newzeland:

New Zealand has a market economy which is greatly dependent on international trade,

mainly with Australia, the European Union, the United States, China, Japan and India. It has

only small manufacturing and high-tech sectors, being strongly focused on tourism and

primary industry like agriculture. Economic free-market reforms of the last decades have

removed many barriers to foreign investment, and the World bankin 2005 praised New

Zealand as being the most business-friendly country in the world, before Singapore.

Over the past 20 years the government has transformed New Zealand from an agrarian

economy dependent on concessionary British market access to a more industriali ed, free

market economy that can compete globally. This dynamic growth has boosted realincomes -


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but left behind some at the bottom of the ladder - and broadened and deepened the

technological capabilities of the industrial sector. Per capita income rose for ten consecutive

years until 2007 in purchasing power parity terms, but fellin 2008-09. Debt-driven consumer

spending drove robust growth in the first half ofthe decade, helping fuel a large balance of

payments deficitthat posed a challenge for economic managers. Inflationary pressures caused

the central bank to raise its key rate steadily from January 2004 until it was among the

highest in the OECD in 2007-08; international capital inflows attracted to the high rates

further strengthened the currency and housing market, however, aggravating the current

account deficit. The economy fellinto recession before the start ofthe global financial crisis

and contracted for five consecutive quarters in 2008-09. In line with global peers, the central

bank cut interest rates aggressively and the government developed fiscal stimulus measures.

The economy posted a 1.7% decline in 2009, but pulled out of recession late in the year, and

achieved 2.1% growth in 2010. Nevertheless, key trade sectors remain vulnerable to weak

external demand. The government plans to raise productivity growth and develop

infrastructure, while reining in government spending.

Economy of Australia:

The economy of Australia is a developed modern market economy with a GDP of

approximately US$1.8 trillion. In 2011, it was the 13th largest national economy by nominal

GDP and the 17th largest measured by PPP adjusted GDP, representing about 1.7% of

the World economy. Australia was also ranked the 19th largestimporter and 19th

largest exporter.

The Australian economy is dominated by its service sector representing 68% of Australian

GDP. The agricultural and mining sectors (10% of GDP combined) account for 57% of the

nation's exports. The Australian economy is dependent on imported crude oil and petroleum

products,the economys petroleum import dependency is around 80% - crude oil + petroleum

products.


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Australia's abundant and diverse natural resources attract high levels of foreign investment

and include extensive reserves of coal, iron ore, copper, gold, natural gas, uranium, and

renewable energy sources. A series of majorinvestments, such as the US$40 billion Gorgon

Liquid Natural Gas project, will significantly expand the resources sector. Australia also has

a large services sector and is a significant exporter of natural resources, energy, and food.

Key tenets of Australia's trade policy include support for open trade and the successful

culmination ofthe Doha Round of multilateraltrade negotiations, particularly for agriculture

and services. The Australian economy grew for 17 consecutive years before the global

financial crisis. Subsequently, the Rudd government introduced a fiscal stimulus package

worth over US$50 billion to offset the effect of the slowing world economy, while the

Reserve Bank of Australia cut interest rates to historic lows. These policies - and continued

demand for commodities, especially from China - helped the Australian economy rebound

afterjust one quarter of negative growth. The economy grew by 1.2% during 2009 - the best

performance in the OECD - and by 3.3% in 2010. Unemployment, originally expected to

reach 8-10%, peaked at 5.7% in late 2009 and fell to 5.1% in 2010. As a result of an

improved economy, the budget deficit is expected to peak below 4.2% of GDP and the

government could return to budget surpluses as early as 2015. Australia was one of the first

advanced economies to raise interest rates, with seven rate hikes between October 2009 and

November 2010. The GILLARD government is focused on raising Australia's economic

productivity to ensure the sustainability of growth, and continues to manage the symbiotic,

but sometimes tense, economic relationship with China. Australia is engaged in the Trans-

Pacific Partnership talks and ongoing free trade agreement negotiations with China, Japan,

and Korea.

Trading:

Australia and New Zealand share a broad, deep and successful economic and trading

relationshi p. Each country represents an important market for the other, with Australia

featuring as New Zealands largest trading partner, taking over 23% of all New Zealand

exports. In comparison, New Zealand is Australias 7th largest overalltrading partner, butits

largest market for manufactured products and 6th largest export destination.

The relationship is supported by the worlds most comprehensive, effective and mutually

compatible free trade agreement, which is constantly updated and modernised. There is


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substantial political ambition to further liberalise the relationshi p forthe benefit of both

countries.

The foundations for the current extensive trading relationshi p are contained within the

Australia New ZealandC

loserEc

onomic

Relations Trade Agreement (CE

R). Bothcountries have worked hard to ensure thatthe trans-Tasman trading structure is kept modern

and liberal, with many successive expansions to the original CER Agreement, and more

recently through the ambitious drive toward a trans-Tasman Single Economic Market

(SEM).

Unlike most modern Free Trade Agreements, CER does not currently include provisions

regulating foreign direct investment between the two countries. The Governments of

Australia and New Zealand agreed to negotiate an Investment Protocol to CER, aimed at

promoting further cross-Tasman investment. In their meeting of August 2009, Prime

Ministers said that good progress was being made on negotiations of this Protocol, and

announced the respective screening thresholds for foreign direct investment from each

country into the other would be AUD$953 million for New Zealand investments in Australia

and $NZD477 million for Australian investment in New Zealand. Negotiation of an

Investment Protocolis continuing.

New Zealand and Australia share ajoint system of food standards, which is served by Food

Standards Australia New Zealand (FSANZ), a bi-national agency for the development of

food standards. The joint system was instituted by The Agreement between the

Government of New Zealand and the Government of Australia Establishing a System

for the Development of Joint Food Standards (1995) , commonly known as The Food

Treaty, which is one of a suite of agreements that sit within CER. Thejoint system has been

successfulin, amongst otherthings, aligning food standards, reducing unnecessary barriers to

trade and providing both countries increased influence in the establishment of international

food standards.


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Rules of Origin are the criteria used to define where a product was made. They are an

essential part ofCER. They determine whether a product qualifies fortariff-free entry when

being traded between New Zealand and Australia.

The currentROO were finalised in 2006 and entered into force on 1 January 2007. They arebased upon satisfying a change in tariff classification, orCTC, ratherthan the previous 50

percent regional value content threshold.

The new, more liberal, CTC approach means that forthe majority oftarifflines, an exporter

need simply satisfy the condition thatthere has been a change in tariff classification between

any imported inputs from third countries and the completed good that is being exported to

Australia/New Zealand. This shifts the focus from the origin of inputs, and gives

manufacturers a greater choice of materials. This will help increase efficiency and

competitiveness for Australian and New Zealand businesses. The rules also significantly

reduce the need to keep financial cost records to support rules of origin claims. Under the

agreement exporters will have the option of using existing rules until 2012.

Reasons to choose this region:

The main reason to choose this region is the rank of ease of doing business for Australia is 10

and for Newzeland is 3. And rank for start up the company is 1 for Newzeland and 2 is

Australia. This shows that we can easily startup the company or expand the business in those

regions.


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Economic facts :

AUSTRALIA.

Australia is a stable, culturally diverse and democratic society with a skilled workforce and a

strong, competitive economy. With a population of more than 21 million, Australia is the

only nation to govern an entire continent. Itis the earths biggestisland and the sixth-largest

country in the world in land area.

Recent

economic

indicators:

2006 2007 2008 2009 2010(a) 2011(b)

GDP

(US$bn)

(current

prices):

785.8 954.6 1,061.0 986.6 1,236.0 1,448.2

GDP PPP

(US$bn)

(c):

737.1 793.6 831.9 850.6 882.4 918.5

GDP per

capita

(US$):

37,645 44,893 48,823 44,509 55,160 64,351

GDP per

capita PPP

(US$) (c):

35,310 37,321 38,282 38,751 39,699 40,816

Real GDP

growth (%

changeyoy):

2.5 4.7 2.4 1.4 2.6 3.0

Current

account

balance

(US$m):

-41,503

-59,214 -47,442 -42,096 -31,868 -5,529

Current

accountbalance (%

GDP):

-5.3 -6.2 -4.5 -4.3 -2.6 -0.4

Goods &

services

exports (%

GDP):

20.0 19.1 22.3 20.0 21.1 21.5

Inflation

(% change

yoy):

3.3 3.0 3.7 2.1 2.7 3.0


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Looking atthe table we could see that austalias gdp is growing at a steady rate.

Festivals.

Australia hosts a number of events and festivals, especially in the summertime. Below is a listofthe most popular events in each state and territory.The Perth International Arts Festival: Itis the oldest annualinternational multi-artsfestivalin the southern hemisphere and is Western Australia's premier cultural event

New South Wales: Sydney Festivalthatis celebrated in January: Itis the largest Australian

celebration of arts, culture and entertainmentin Australia's largest city

Gay and Lesbian Mardi Gras: Itis celebrated in February. Each year, Sydney is home tothe largest gay and lesbian gathering in the world. The month-long festivities conclude with amassive parade and all-night party.

Melbourne Cup: First Tuesday of November: The country comes to a standstill each yearas 24 horses run Australia's most famous race. Restaurants and pubs offer extravagant menusand people take off workto bet and grab a beer.

Australia Capital Territory (ACT) Floriade; mid-Septemberto mid-October: This spring

festival celebrates the Canberra's blooming bulbs and annuals. More than a million are in fullglory during this time. Main festivities are held atCommonwealth Park.

The Revelation Independent Film Festival : The Revelation Independent Film Festival(RIFF) has always maintained a high focus on documentary. The festival's history has seen

the screening of a wide array of contemporary and archival documentaries including Oscarnominated pieces, progressive works from the international scene and work from theinternational underground.

National Folk Festival: Held overthe Easter weekend in Canberra every year, the NationalFolk Festival draws together people from all around Australia and the world.

Political and legal system

Australia's system of government

Australias system of governmentis founded in the liberal democratic tradition. Based on the

values of religious tolerance, freedom of speech and association, and the rule oflaw,

Australias institutions and practices of government reflect British and North American

models. Atthe same time, they are uniquely Australian.

Responsible government


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One ofthe oldest continuous democracies in the world, the Commonwealth of Australia was

created in 1901 when the former British coloniesnow the six statesagreed to federate.

The democratic practices and principles that shaped the pre-federation colonial parliaments

(such as one man, one vote and womens suffrage) were adopted by Australias first federal

government.Australias governmentis based on a popularly elected parliament with two chambers: the

House ofRepresentatives and the Senate. Ministers appointed from these chambers conduct

executive government, and policy decisions are made in Cabinet meetings. Apart from the

announcement of decisions, Cabinet discussions are not disclosed. Ministers are bound by the

principle ofCabinet solidarity, which closely mirrors the British model ofCabinet

government responsible to parliament.

A written constitution

Like the United States and unlike Britain, Australia has a written constitution. The AustralianConstitution defines the responsibilities ofthe federal government, which include foreign

relations, trade, defence and immigration. Governments of states and territories are

responsible for all matters not assigned to the Commonwealth, and they too adhere to the

principles of responsible government. In the states, the Queen is represented by a Governor

for each state.

The High Court of Australia arbitrates on disputes between the Commonwealth and the

states. Many ofthe courts decisions have expanded the constitutional powers and

responsibilities ofthe federal government.

The double majority provision makes alterations to the Constitution difficult. Since federation

in 1901, only eight out of 44 proposals to amend the Constitution have been approved. Voters

are generally reluctantto support whatthey perceive as increases in the power ofthe federal

government. States and territories may also hold referendums.

Parliamentary sovereignty

The Australian Constitution sets outthe powers of governmentin three separate chapters

the legislature, the executive and thejudiciarybutinsists that members ofthe legislature

must also be members ofthe executive. In practice, parliament delegates wide regulatory

powers to the executive.

Governmentis formed in the House ofRepresentatives by the party able to command a

majority in that chamber.

Anything said in parliament can be reported fairly and accurately without fear of a suit for

defamation. The rough-and-tumble of parliamentary Question Time and debates is broadcast


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and widely reported. This has helped to establish Australias reputation for robust public

debate, and serves as an informal check on executive power.

Frequent elections

A national general election must be held within three years ofthe first meeting of a new

federal parliament. The average life of parliaments is abouttwo-and-a-half years. In practice,

general elections are held when the Governor-General agrees to a request from the Prime

Minister, who selects the date ofthe election.

The governing party has changed about every five years on average since federation in 1901,

butlength of hold on government has varied greatly. The Liberal Party led a coalition with

the longest hold on government23 yearsfrom 1949 to 1972. Priorto World War II,

several governments lasted less than a year, but since 1945 there have been only seven

changes of government.

Voting

For all citizens overthe age of 18 itis compulsory to vote in the election of both federal and

state governments, and failure to do so may resultin a fine or prosecution.

Parties

Australia has four main political parties. The Australian Labor Party (ALP) is a social

democratic party founded by the Australian labour movement. The ALP has governed since

late 2007. The Liberal Party is a party ofthe centre right. The National Party of Australia,

formerly the Country Party, is a conservative party representing ruralinterests. The

Australian Greens is a left-wing and environmentalist party.

Australias major political parties have structured ways to involve their members in

developing party policy on issues. Elected politicians rarely vote againsttheir parties in

parliament.

Although Australian commentators observe that elections have become more presidential in

the sense that some American campaign methods are used, the basic structure ofthe

Australian system tends to emphasise policy stances ratherthan the character ofindividual

politicians.

As in other democracies, the cost of election campaigns and the source of funds for political

activity are issues in Australia. Since 1984, a system of public funding (administered by the

Australian ElectoralCommission) and disclosure for election campaigns has been in place.

Parties must receive atleast 4 per cent ofthe valid vote in the elections they contestto receive

this public funding.


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Parties must disclose campaign expenditures and sources of donations above a specified

threshold. Individual candidates must also disclose sources of donations above a certain

threshold. Parties and individuals contesting non-consecutive elections must disclose gifts

and donations received between the campaigns.

Relations between levels of government

The Council of Australian Governments (COAG) is a forum to initiate, develop and

implement national policy reforms requiring cooperative action between the three levels of

government: national, state orterritory, and local. Its objectives include dealing with major

issues by cooperating on structural reform of government and on reforms to achieve an

integrated, efficient national economy and a single national market.

COAG comprises the prime minister, state premiers, chief ministers ofthe territories, and the

president ofthe Australian Local Government Association.

In addition, ministerial councils (comprising national, state and territory ministers, and,

where relevant, representatives oflocal government and ofthe governments of New Zealand

and Papua New Guinea) meet regularly to develop and implementinter-governmental action

in specific policy areas.

Key facts

y The Commonwealth of Australia was created in 1901 when the former British coloniesnow

Australias six statesagreed to federate.

y Although Australia is a fully independent parliamentary democracy, Queen Elizabeth II of

the United Kingdom is also formally the Queen of Australia.

All citizens overthe age of 18 must vote in both federal and state government election.

Comparison of New Zealand and Australia


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ANALYSIS OF SALIENT COSTS & DIFFERENCES BETWEEN NEW ZEALAND AND AUSTRALIA

VIA CAGE MODEL

Cultural:

Language: In New Zealand, men and women pronounce their diagnostic vowels in the

same fashion. On the other hand, the male Australian accentis significantly different

from the female accent. Another difference is that Newzealanders have difficulty in

pronouncing i sound properly.

Environment: New Zealand receives high rainfall, has huge rivers fed by meltingglaciers, and has nutrient rich soils. The country is also famous for skiing, fishing,

farming, bush walking or mountaineering while Australia has deserts, droughts, and

leached soils.

New Zealand is more racially conscious than Australia.

Maori culture is far more prominentin New Zealand society than Aboriginal cultures

are in Australian society.

Administrative:

The law of Australia consists ofthe Australian common law (which is based on

the English common law), federallaws enacted by the Parliament of Australia, and

laws enacted by the Parliaments ofthe Australian states and territories. The most

importantlaw of Australia is the Constitution of Australia, which describes Australia's

system of constitutional monarchy, and forms the basis forthe government of

Australia.


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The primary sources of New Zealand law are statutes enacted by the New Zealand

Parliament and decisions ofthe New Zealand Courts. At a more fundamentallevel,

the law of New Zealand is based on three related principles: parliamentary

sovereignty; the rule oflaw; and the separation of powers. As a former British colony,

the New Zealand legal system is heavily based on the English legal system, and

remains similarin many respects. There are also important differences, which reflectthe unique legal culture that has developed in New Zealand.

The Australian Government controls the acquisition of Australian properties and

businesses by foreign investors through the Foreign InvestmentReview Board

(FIRB). If foreign interests own or control 15% or more of an Australian company, it

may be treated as a foreign company by the FIRB. In addition to this, Australia's

various state governments have controls and rules in relation to foreign investment.

Foreign investors which do not comply with Australian Federal and State Government

rules may be subjectto penalties such as

o cancellation of contracts and/or forced sale of Australian property;o 2 years imprisonment or a fine of $50,000 (foreign persons);o a fine of AU$250,000.00 (foreign companies).

Following is a summary ofthe rules most commonly encountered:

o Existing residential properties may not be purchased by a foreign person unless aproposal for substantial redevelopment orimprovement ofthe property is undertaken.FIRB approvalis required.

o New residential properties which have never been sold by the builder and havenever been lived in may be sold to foreign persons if certain conditions are met.

Builders and developers may only sell half ofthe dwellings they constructto foreignpeople. FIRB approvalis required.

o Off-the-Plan units may be sold to a foreign person where the developer has pre-approvalto do so (up to 50% of such a development may be sold to foreign persons).

Normally the developer gains written approval from the FIRB in advance.o Businesses/Commercial property valued atless than AUD50 million may normally

be sold to foreign persons without approval (much largerinvestments are acceptablewhere USA investors are concerned). Businesses orCommercial property valued inexcess ofthe approved amount requires FIRB approval. However, special rules applyin many industries including banking, natural resources, media, aviation,telecommunications and others. Seeklegal advice before signing a contract.

o Vacant land may be purchased by a foreign investor who undertakes to commence

construction of a building on the land within twelve months of acquisition. FIRBapprovalis required.o Rural landis subjectto FIRB scrutiny and approval. There is a polciy document

devoted entirely the ruralland rules.

y The rules regarding FDI in New Zealand are as follows:

o Coverage - the definition ofthe strategic assets for which screening is required has

been amended slightly, to increase the business assetthreshold, but also to expand


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strategic assets to include special properties such as all foreshore and seabed land and

sites subjectto a heritage order.

o Criteria for screening - when considering an application for foreign investment,

investors will now be required to submit and investment case thatincludes a land

management plan. (A land management plan will need to cover active management of

the land to meet natural and historic heritage objectives and public access obligations,where relevant.) Also foreign investor's investmentintentions, residency intentions

and the proposed economic development benefits oftheirinvestments will be subject

to greater scrutiny priorto consent being given. Finally, the New Zealand

Government will have a right of first refusal for any foreshore and seabed land that a

third party intends to sellto a foreign investor.

o Monitoring - investors will be required to confirm their compliance with the

conditions of consent, periodically, afterthe consentis given.

o Enforcement - New Zealand regulators will have the powerto impose administrative

penalties if foreign investors failto report regularly on how they are complying with

the terms oftheir consent. New Zealand courts will also be given the powerto fine

foreign investors that do not comply with conditions of consent.

Geographic:

New Zealand encompasses two main islands and a number of smallerislands while,

Australia encompasses a wide variety of biogeographic regions being the world's

smallest continent butthe sixth-largest country in the world.

The climate is mostly cooltemperate to warm temperate in New Zealand and the

mean temperatures range from 8 C (46 F) in the South Island to 16 C (61 F) in the

North Island. On the other hand, most of western Australia is desert.

The common natural hazards in Australia include: cyclones along the northern coasts,

severe thunderstorms, droughts and occasional floods & frequent bushfires where as

in New Zealand, natural hazards include: earthquakes, tsunamis, floods and volcanic

activity in central North Island Volcanic Plateau.

Neighbouring countries of New Zealand include Australia to the northwest

and Tonga and Fijito the north and the neighbouring countries of Australia are

Indonesia, East Timor and Papua New Guinea to the north, the Solomon

Islands, Vanuatu and the French dependency of New Caledonia to the east, and New

Zealand to the southeast.

Economic:


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Country Risk Assessment:

1. Political:

The Corruption and Crime Commission (CCC) is a leading Australian anti-corruption body.It works to improve the integrity ofthe Western Australian public sector and helps public

sector agencies minimise and manage misconduct.If an Australian citizen, you perform an act

of bribery offshore, you can be fined $1 million,jailed for 10 years and your company can be

fined $10 million. It has been observed in the recent pastthat Australia is climbing down the

international corruption ladder.

New Zealand predominantly suffers from corruption. This can be proven from the

Following Statistics:

Religions in New Zealand include Anglian, Christian,Ratanaand Ringatu while religions in

Australia includes Christianity, Hinduism and Islam.

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