Pfizer: Letter from the Chairman (A) Harvard Case Solution & Analysis

This case is the maximization of shareholder value as a target in the executive decision-making. For nine years, three different CEOs Pfizer making important decisions aimed at increasing shareholder value. But the results are disappointing. To allow students to explore these solutions, the case provides excerpts from the letters of four chairpersons of the annual report to shareholders of the company Pfizer, and then the description of the circumstances of each letter. In the 2000 annual report, the then-director Bill Steer discusses Pfizer's growth in the industry with the acquisition of fame Warner-Lambert. The report for 2003, the new CEO Hank McKinnell, Pfizer discussing performance goals and acquire Pharmacia, which gave him control of anti-arthritis drug Celebrex. In the 2005 report, McKinnell discusses his decision to keep Celebrex on the market, despite the health risks. In the 2006 report, the new CEO Jeff Kindler barely mentions (disputed) McKinnell for early retirement, and describes efforts to reform the company. The case is closed in February 2009, just after Pfizer announced plans to acquire rival Wyeth. Beginning in 2000, the tremendous growth of Pfizer's assets through the acquisition did not lead to a significant increase in net profit and shareholder value. Finally, students were asked what Kindler should write a letter to the shareholders of Open-2008 Pfizer's Annual Report. "Hide
by Robert L. Simons, Natalie Kindred Source: HBS 19 pages. Publication Date: July 7, 2009. Prod. #: 110003-PDF-ENG

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