1. George Barnes Christophe Chirol Dan Cooper Katelyn Griffasi

14. Strategy Diamond How will we get there? Internal Development? How will we compete? On Cost? Via Differentiation (what unique features are included)? What businesses will we be in? Products/Services, Regions, Customers What will be our speed and sequence of moves? How will achieve our competitive position? How are cost advantages generated (scope economies)? How are unique attributes created & delivered? Overview External Internal Recommendations NPV Arenas Vehicles Staging Differentiators Economic Logic

24. Industry Life Cycle “ Shakeout” Phase- growth rates, intense rivalry, margins fall, inferior products with increasing costs and processes cause a decline Goal: sustain and strengthen position within specific business segments, Increase customer loyalty and cash flows Overview External Internal Recommendations NPV

35. External Weighted Avg. Table Pharmaceutical Airline Specialty Retail Overview External Internal Recommendations NPV Strategic Factors Weight Rating Weight × Rating Rating Weight × Rating Rating Weight × Rating Opportunities & Threats Competition .2 6 1.2 5 1.0 5 1.0 Industry Growth .3 7 2.1 3 .9 5 1.5 Substitutes .2 4 .8 3 .8 6 1.2 Barriers to Entry .3 9 2.7 8 2.4 6 1.8 Total: 1.00 6.80 5.10 5.50

37. Current Financial Performance: Revenues by Business Segment Overview External Internal Recommendations NPV

38. Revenue Breakdown Graph Overview External Internal Recommendations NPV

39. Current Financial Performance vs. Rivals Revenues (millions) Overview External Internal Recommendations NPV

40. Pfizer Revenues vs. Rivals Overview External Internal Recommendations NPV

41. Cost of Goods Sold (millions) Overview External Internal Recommendations NPV

42. Pfizer COGS vs. Rivals Overview External Internal Recommendations NPV

43. Net Income (millions) Overview External Internal Recommendations NPV

44. Pfizer Net Income vs. Rivals Overview External Internal Recommendations NPV

46. Pfizer ROA vs. Rivals Overview External Internal Recommendations NPV

47. Profitability Ratios Return on Equity Industry Average = 23.2 Net Income/ Shareholder Equity Overview External Internal Recommendations NPV ROE 2007 2006 2005 2004 2003 5 Year Growth Pfizer 11.95 28.26 12.10 17.07 9.18 30.17% GlaxoSmithKline 55.95 64.74 72.21 78.32 99.19 -43.59% Novartis 26.57 19.52 19.04 17.96 16.96 56.66% Sanofi-Aventis 11.60 8.85 5.45 -16.52 36.84 -68.51%

48. Pfizer ROE vs. Rivals Overview External Internal Recommendations NPV

49. Stock Price Overview External Internal Recommendations NPV Company Name 2007 2006 2005 2004 2003 5 Year Growth Pfizer High 27.73 28.60 29.21 38.89 36.92 -26.25% Low 22.24 22.16 20.27 21.99 27.90 GlaxoSmithKline High 58.40 53.80 47.53 47.64 51.07 14.35% Low 50.03 44.17 38.80 31.85 31.35 Novartis High 60.36 61.60 54.71 50.77 46.00 31.22% Low 51.19 51.72 45.63 41.30 33.85 Sanofi-Aventis High 50.05 45.87 40.48 37.92 32.80 52.59% Low 41.65 36.60 29.22 22.53 24.90

50. Pfizer Stock Price vs. Rivals Overview External Internal Recommendations NPV

53. Value Chain Analysis http://www.themanager.org/models/ValueChain.htm Overview External Internal Recommendations NPV

58. Internal Weighted Avg. Table Pfizer GlaxoSmithKline Novartis Overview External Internal Recommendations NPV Strategic Factors Weight Rating Weight × Rating Rating Weight × Rating Rating Weight × Rating Strengths & Weaknesses Marketing & Sales .25 8.5 2.125 8 2.00 6 1.50 Innovation .25 6 1.50 5 1.25 5 1.25 Aging Portfolio .25 6 1.50 5 1.25 5 1.25 Costs (total) .25 7 1.75 6.5 1.625 6.5 1.625 Total: 1.00 6.875 6.125 5.625

60. Recommendation #1 (continued) Overview External Internal Recommendations NPV