Strategic Management and Sustainability in the Pharmaceutical Sector

This assignment focuses on the evaluation of the United Kingdom and global pharmaceutical sector using PESTEL and SWOT analysis. It also examines the competitive environment of AstraZeneca, one of the top biotechnology and pharmaceutical organizations in the UK. The report discusses the impact of sustainability and management on the success and growth of companies in the pharmaceutical industry.

1 STRATEGIC
MANAGEMENT AND
SUSTAINABILITY

Table of Contents
INTRODUCTION.....................................................................................................................................2
MAIN BODY.............................................................................................................................................2
Evaluating the United Kingdom and global Pharmaceutical sector.........................................................2
Evaluating competitive environment of AstraZeneca..............................................................................6
CONCLUSION..........................................................................................................................................8
REFERENCES........................................................................................................................................10

INTRODUCTION
Sustainability and management are the two most important and beneficial elements that
have contributed in success and excellent growth of companies. Sustainability is defined as
ability or competence that made individual able to meet strategic aims and achieve business
objectives. While management refer to process of planning, organizing, decision making and
controlling each activity of workers, and other key resource of a company. The current
assignment will be based on AstraZeneca, which falls under list of top biotechnology and
pharmaceutical organizations in the UK. The study will evaluate UK and global pharmaceutical
industry by using appropriate framework. Furthermore, lastly the report will explain competitive
environment of organization.
MAIN BODY
Evaluating the United Kingdom and global Pharmaceutical sector
In the business world, there are varied forms of industry or sector analysis methods,
techniques and frameworks available that has been used by many marketers to conduct macro
and micro environmental analysis. These analyses made them able to identify key factors
whether external or internal, which put negative or positive impact on industries (Kairuz and
et,al., 2020). Here Pestle and SWOT analysis is use to analyze global pharmaceutical sector and
UK.
PESTEL analysis-
Political factor-
Fluctuation in any political factor put direct impact on global pharmaceutical industry as
it makes changes in its existing management practices, strategies and ways of conducting
activities related to drug supply and sells. For example, in recent time, many nations along with
UK and US take initiative to change the law related to drugs pricing. As they take decision to
create laws that place strict control on pricing of medicines, which may cause negative impact on
growth and success of sector as it unable them to sell each drug according to own pricing
strategy. Just because of this factor, many pharmaceutical organizations that has operated under
chosen sector may face challenges and major losses. Fall in prices of drugs may force them to

quit. Price control is one of the biggest decision that may take by the government according to
environmental situation and changes within it, which have been taken place because of COVID-
19.
Economic factor-
In term of economic factor, recession may impact sales of global pharmaceutical
industry. Each nation including UK suffers from worst recession due to COVID-19. This
microeconomic term may make significant decline in general economic activity. It makes
individual person unable to earn good amount of money and spend it to purchase high cost
products as many people losses their jobs because several brands and shops shut down their
ventures due to pandemic. Recession is the main reason behind occurrence of high
unemployment rate. After all of these issues, it still put positive impact on global pharmaceutical
industry in term of giving management chance to hire unemployed people who are able to
delivery medicines at home and also capable to use advance technology as a mobile application
to take orders. Sector may grab this chance in term of recruiting people in cheaper rate.
Social factor-
Monitoring own health has become a global trend of current and older generation. They
take varied precautions and preventions into consideration to make their life and health healthy
and fit, for which people take initiative to take vitamin c, e and other tablets. It put positive
impact on sales and growth of global pharmaceutical sector in term of increasing demand, sales
and profitability of industry. Furthermore, along with this number of increasing online service
users also put impact on sector in same manner as it leads to increase number of mobile
application users, who place their order through this technology and buy drugs according to
medical prescription, which they prefer to receive by visiting nearby pharmaceutical outlet or by
choosing home delivery option that is quite better for older people who are unable to take one
step out at home due to pandemic.
Technology factor-
Technology advancement as a technology factor put positive impact on sales, growth and
success of global pharmaceutical industry, in term of strengthening their management to provide
on time medical service to patients and their family as well by using mobile application. It is one

of external factors that provide a lot of benefits to sector in varied terms. It is fact that in UK,
approx. 2 million or more than it people purchase drugs continually on internet from online
pharmacies in form of services providing by certain legal and certified pharmaceutical
companies, which enable them to maintain social distance and to help needy people who need
medicines or health care treatment on time to recover health issues that has been affected due to
pandemic (Gale and et.al., 2020). It affects positively upon operational efficiency and
productivity of global pharmaceutical sector. Via online application, management may take
initiative to pack orders related to medicines earlier, before service user reach at shop as it saves
their time and efforts as well.
Environmental factor-
Customers and government major concern to reduce carbon footprint may put negative
impact on global pharmaceutical industry because it leaves a large carbon footprint, which
emerge demands for regulation for pharmaceutical sector waste. According to this concern,
whole industry may take initiative to change their drugs packaging and manufacturing process,
which consumes a lot of time and efforts as well. In additional to this, management may
restructure or re-plan each and everything from production to packaging and from supply to
sales, which requires a lot of money. Most of drugs are supplied and packaged by using plastics
boxes that affect environment in term of increasing land, air and water pollution, which put
negative impact of human and animals as well. Plastic boxes are not easy to recycle, and
negatively affect sustainable environment.
Legal factor-
Fluctuation in customer laws, health & safety and employment law may put negative
impact on global pharmaceutical industry as it drives the attention of management towards make
current and further changes in their practices, policies and activities according to new guidelines
and regulations, governed by the government. Choose sector is subjected to regulatory and
because of that it may examine all data related to above topics in effective and systematic
manner to support stability, efficacy and safety, which is really quite essential for customers and
industry as well. They may take better action regarding frauds in the context of drugs pricing and
packaging and comply with all the regulations that has been especially made for global
pharmaceutical sector. It can be said that this factor may put negative impact on management

practices of this industry, because any kind of change in regulations of each area that has
discussed above may put pressure on sector to restructure their further strategic plans.
SWOT analysis-
Strengths-
 The key strength of global pharmaceutical industry it its operational efficiency, which
made it able to manufacture and sell drugs in bulk that help to prevent and protect human
lives from harmful disease, like obesity, cancer, diabetes, etc.
 Another strength of this sector is their skilled, highly experienced and knowledgeable
workers and experience holders who contribute to grow global pharmaceutical industry
and support in its success in term of providing quality medicines to each buyer according
to their health issues and concerns. It has a pool of proficient and productive candidates
who are hardworking and flexible, as well as able to perform in any situation like current
one and that is pandemic.
 It has effective and productive management structure, which made sector able to manage
its operational and functional activities in profitable manner.
Weaknesses-
 Lack of marketing is one of the biggest weaknesses of global pharmaceutical industry,
which lead to decline its business awareness and services as well as products quality
(SWOT Analysis of Pharmaceutical Industry, 2019). Instead of taking initiative to
promote venture and making investment within it, sector focus on improving drugs
quality and make it even better day by day for which they invest a lot of money and
conduct research as well.
 Another weakness of chosen industry is shortage of supply & demand of men power in
global pharmaceutical sector. There is no need to hire new people in sector as it has lack
of designations that affect demand of workers. For existing positions, management
require highly educated and experience candidate, for which many people are unable to
apply as they have only bachelor’s degree.
Opportunities-

 Emerging digital marketing tools and channels is one of those opportunities that global
pharmaceutical industry may grab in order to advertise their quality products and gain
trust of customers, which is actually quite essential for sector. It may grab this
opportunity in term of conducting marketing activities by using social media platforms.
 Furthermore, along with this global pharmaceutical sector also take initiative to grab
other opportunities as well that exist in the business world in the context of growth and
success of ventures. For example, in term of CSR practices, it may take steps ahead of
using paper for packaging purpose, which help to reduce its large carbon foot print and its
impact on sustainable environment that lead to improve sector image in market or all over
the world and make business sustainable.
Threats-
 Regulatory changes possess the biggest threat for global pharmaceutical industry, as it
may decrease its operational efficiency, productivity and sales as well as profitability.
When health and safety law rules and policies may change, it directly impacts negatively
upon current practices and process of management.
 Furthermore, increasing demand for varied drugs also threaten sector as they are unable
to arrange everything on emergency basis because it needs more time and workforce,
which is not that easy to arrange. In today’s environment, due to pandemic drugs demand
were increased that put high pressure on global pharmaceutical sector to make proper and
emergency arrangements, in term of hiring more people who deliver medicines on time
from hospital to private clinic and to home.
 Intense competition in business environment also possess threat in the context of chosen
industry.
Evaluating competitive environment of AstraZeneca
Competitive environment is defined as dynamic external system in which a company
competes with other organization that has been operated in similar sector from longer period
(Teece, 2018). In order to evaluate the competitive environment of AstraZeneca, here industry
five forces use. This framework encompasses five key elements.
Bargaining power of customers-

Customers hold low to medium extent bargain power, because they are unable to make
bargaining for medicines as each pharmaceutical company like AstraZeneca provide drugs at
same price tag. It made each customer unable to switch to purchase goods from other
organizations and because of that they may buy medicine without making bargaining and pay
according to price label (Porter Five Forces Analysis, 2020). This force may put positive impact
on firm in term of retaining their customers base and increase it more than last few weeks or
months. There are less chances exist in pharmaceutical sector where, customers make
comparison that may not affect much upon sales and success of company, which is quite good.
AstraZeneca in sector has develop and sell goods that have least side effects on health of drugs
users, as it offers medicines according to health problems.
Bargaining power of suppliers-
Bargaining power of drugs suppliers in industry where AstraZeneca operate is low
because of numerous supplier’s existence in market who are able to supply medicines and raw
materials within pharmaceutical sector. Just because of this force, each supplier is enable to
demand for make change in supply chain pricing strategy. They are unable to decrease the profits
margin of AstraZeneca may earn in market by selling quality drugs, especially during pandemic,
because many people suffer from corona virus infection and need those medicines that help to
spread its inflection in their body. Low bargaining power make suppliers unable to utilize their
negotiating power to increase prices from company. It leads to manage the relationship between
suppliers and organizations as help to increase the profitability, which is quite beneficial for
individual stakeholder that has connected with firm.
Threat of new entrance-
The extent of this force is medium, because in order to enter into pharmaceutical sector a
new company may face many barriers in term of spending a wide amount to produce, test and
then sell medicines in market, which is not that easy to do. Furthermore, government concerns
related to drugs quality also put a lot of pressure upon companies that has been operated in
chosen industry. Each firm is not able to do so at large level and because that they are unable to
enter into new market, which put positive impact on existing companies like AstraZeneca that
operates its venture into pharmaceutical industry in England from longer duration. This force

may put positive impact on its growth in market and give better success, which is unpredicted
and beyond expectations of organization.
Threat of substitute products or services-
Threat of this force is low, because there is no substitute exist in the world that prevent
people from harmful disease like COVID-19, etc. In recent time, everyone seeks to take a dose
of those medicines which prevent them as well as their family members from painful death due
to pandemic. It affects negatively upon individual person life and bring the biggest challenges for
pharmaceutical sector to take better initiative to overcome the negative impact of this virus.
Yoga, and other health care practices just help to make person fit and healthy, it does not
contribute to save their life from any major effect of diseases. Lack of substitute services and
goods drives the attention of each customer towards purchase of AstraZeneca drugs that has been
supplied under monitoring and by taking better precautions. There is no room for mistakes in
company.
Competitive rivalry between existing companies in pharmaceutical industry-
Competition between existing organizations in sector is high, because they give touch
competition to each other for purpose of increasing loyal customer base and increasing
profitability, which is actually quite necessary to increase while operating in pharmaceutical
industry. It may put negative impact on AstraZeneca consumer base, for which its management
may take major initiative to deal with this situation that is really quite important. Organization
operates in high competitive environment where intense competition does take toll on entire long
term profits margin of firm. Due to this factor, company may felt pressure in the context of
performing better.
CONCLUSION
By summing up above analysis, it has been concluded that organization has provided
valuable and useful services to its customers and local people during pandemic, because it has
utilized mobile application as an advance technology. By taking initiative to offer online
services, company has maintained social distancing and fulfilling the needs of individual person.
Furthermore, from above study, it has been summarized that by analyzing current market needs,
building strong relationship with suppliers and retaining customers, company has gained

competitive advantages and increase its customer base, which made it capable to become a
market leader within industry.

REFERENCES
Book and Journals
Gale, A and et.al., 2020. Medflow Architecture for Online Medicine. International Journal of
Research in Engineering, Science and Management. 3(9). pp.62-65.
Kairuz, A.R.P. and et,al., 2020. PESTEL analysis of environment state responsibility in Ecuador.
Neutrosophic Sets and Systems, Book Series, Vol. 34, 2020. An International Book
Series in Information Science and Engineering. Special Issue: Social Neutrosophy in
Latin America. p.70.
Singh, H., Majumdar, A. and Malviya, N., 2020. E-Pharmacy impacts on society and pharma
sector in economical pandemic situation: a review. Journal of Drug Delivery and
Therapeutics. 10(3-s). pp.335-340.
Teece, D.J., 2018. Dynamic capabilities as (workable) management systems theory. Journal of
Management & Organization. 24(3). pp.359-368.
Online
Porter Five Forces Analysis. 2020. [Online]. Available Through: <
http://fernfortuniversity.com/term-papers/porter5/analysis/1560-astrazeneca-plc.php >
SWOT Analysis of Pharmaceutical Industry. 2019. [Online]. Available Through:
https://bizfluent.com/about-6694152-swot-analysis-pharmaceutical-industry.html