Applied Corporate Strategy: External Analysis, Resources & Competencies

Applied corporate
strategy

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK 1............................................................................................................................................3
1. Carry out external analysis to identify opportunity and Threat as well as assess industry
effectiveness?.........................................................................................................................3
TASK 2............................................................................................................................................8
2. Analyse the resources & key competencies of company...................................................8
............................................................................................................................8
TASK 3..........................................................................................................................................12
3. Evaluate the given strategy using the criteria related to SAFe with regards to selected
organisation? ........................................................................................................................12
CONCLUSION .............................................................................................................................15
REFERENCES..............................................................................................................................16

INTRODUCTION
Strategies is a plan that are developed and formulate by the company for short term or
long term. Before creating any plan, it is necessary for company to analyse the internal as well as
external environment. For that SWOT and PESTLE analysis is conducted by smart managers of
organisation. In this each element is deeply study so that effective policies & strategies
developed which helps in achieving the objectives on time. The organisation that was selected
for the project is Astra Zeneca as it is British -Swedish multinational pharmaceutical &
biopharmaceutical company. It has its headquarters in Cambridge, England. As the company
Astra Zeneca has great portfolio of products for major diseases such as cardiovascular, cancer,
heart disease, neuro disease, gastrointestinal, respiratory, inflammation and infection. The chief
Executive officer of the company is Pascal Soriot. The company has its headquarters in
Cambridge, United Kingdom. On 6th April, 1999 it was incorporated. The topics that are included
in this project are Description of PESTLE analysis along with opportunities and threat. Use of
two models such as VRIO and Value chain model. How the organisation gain advantage with the
theory is also explain in detail. Application of SAFe is also cover in this assignment (Bernard,
2020)
TASK 1
1. Carry out external analysis to identify opportunity and Threat as well as assess industry
effectiveness?
PESTLE Analysis
Political: Political factors plays an important role to determine the factors which make
impact on profitability . In more than twelve countries it operates their business in
pharmaceutical globally and expose itself to different type of political environment as well as
political system risk. The achieve success in respective dynamic pharmaceutical industry across
various countries is to diversify the systematic risk of political environment. Before taking entry
in specific competitive market, organisation can thoroughly analyse the factor before investing in
some market. Few examples of these factors are corruption level, political stability as well as
importance of pharmaceutical sector in the country’s economy, Intellectual property protection,
pharmaceutical related tariffs and trade regulations, anti-trust law which are based to health care,

taxation, mandatory workforce benefits, wage legislation, industry health & safety regulations ,
product labelling as well as other necessary requirements in context to health care (Lound ,
2018)
There is now growing political focus and pressure on healthcare authorities across the World.
Also there will be more harmonization of healthcare system across USA.
Opportunity Threat
 If the Inflation rate is low than it tends
to increase the purchasing power of
audience so Astrazeneca has great
opportunity for business to introduce
their new products in the market which
leads to increase the chances of
business growth and survival (Borner ,
2018)
 Unfavourable change in the tax rate is
the most common threat which
Astrazeneca business face because rate
of taxes are unpredictable as
governments regulation regarding
taxations may vary time to time
(Budsaratragoon and Jitmaneeroj,
2019)
Economical: Micro environment factor like competition norms make impact the competitive
advantage of the firm. Country's economic factor are used by Astrazeneca like inflation rate,
growth rate, exchange rate, intervention of Government in free market, labour cost and
productivity in the economy, economic growth rate, unemployment rate, inflation rate etc.
Due to the reason to make reduction in consumer disposable income will have an impact
on those countries who use health insurance model particularly where part payment is require.
As Respective economic pressure are seeing an increased growth in strategic buying group who
are forcing down prices.
Opportunity Threat
 If the cost of labour is low than it is
great chance for business expansions
for Astrazeneca because workforce to
perform the activity is easily available
at low cost.
 Threat of increase in interest rate
affects the business most. If company
Astrazeneca borrow money from banks
or Financial institutions and the rate of
interest is high than it is the liability to
pay large amount as interest as it makes