Strategic Management and Sustainability in the Pharmaceutical Industry

Strategic Management
and Sustainability
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Table of Contents
INTRODUCTION...........................................................................................................................3
MAINBODY....................................................................................................................................3
Evaluate with evidence the UK and global pharmaceutical industry.........................................3
Evaluate with evidence the competitive environment of AstraZeneca.......................................5
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11
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INTRODUCTION
Strategic management is a a business practices and a process that are being employed in a
company for retrieving their internal and external environment, that would assist business in
making best use of the available resources in best possible optimised may in order to made
sustainable strategic decision. AstraZenca in an eye for sustainability strategic management has
done fairly good historically and exposes that they are heading to position themselves for
sustainability strategically for future. Pharmaceutical industry in UK and on global level has seen
increased number of changes due to rising patent risks and low marginal product return
(Gassmann and et. al., 2018).
Thus, following report would throw light on the pharmaceutical industry and their contribution
in UK and Global level by using Porter’s five model and industry life-cycle framework. Even so,
to predict and demonstrate the competitive environment of AstraZenca, PESTEL and SWOT
analysis were being issued in order to determine the competitiveness s of the company in the UK
and global level.
MAINBODY
Evaluate with evidence the UK and global pharmaceutical industry.
AstraZenca is one of the greatest name in the pharmaceutical industry not within the UK but
also on global reach, AstraZeneca a biologics company aims to make live people better by way
of offering affordable medicines with innovation and research and development practices.
Porter’s five forces model
Porter’s 5 model would help pharmaceutical company with a strategic business management and
for to examine the industry in which their companies are operating to demonstrate what can be
done to get competitive edge over there exacting rivalries.
 Threats of entry post by new competitor-
In a pharmaceutical industry there are high entry barrier because of extensive cost in the research
and development of a new drug, there is need of lot of investment in reserach and development
for drug that might be work or not so there are high risk new company. There are also a certain
government regulations such as FDA (Sun and et. al, 2021). For a new company there is need for
extensive regulatory approval and to get patent of license and also an effective network of
distribution which make it is more difficult for a new company to enter, that is why threats of
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entry of new entrance is low to moderate where existing company like AstraZenca and Pizer are
doing outstanding.. This is because the exacting company like AstraZeneca end Pfizer are
enjoying the large economies of the scale and have the high capital requirement to fulfil nation
and global demand..
 Degree of rivalry between the exacting companies –
Generally, pharmaceutical industry are categorised as highly complex and competitive industry,
research and development and they continue development of the medicine with the innovation a
result of the intense competition with exacting companies. The level of rivalry between the
existing companies are very high after the outbreak of COVID-19, for instance both Pfizer
AstraZeneca are continuously working on introducing COVID-19 vaccine not within the UK but
for the global use for sustainable business strategy management (Stanczyk-Hugiet, Licharski and
Piorkowska, 2019). To be ahead in competition all drugs companies have tried to become global
leader innovative and generic medicines along with the COVID-19 vaccine and other consumer-
health goods.
 Bargaining power of the buyer-
Basically in a pharmaceutical industry it consists of many buyers such as hospital, patients,
doctors, drugstore and medical stores and etc. It has been found that buyer can shake the business
by seeking lower prices by looking for high quality and better services. Bargaining power of the
hospitals and drug stores are fairly very high as they purchase in large quantities and when they
are not getting the desired prices from the company they are likely switch to the other brand of
the company (Ding, 2018). Generally regular patients have lost bargaining power due to price
increasing in generic medicine, therefore bargaining power of buyers is medium pharmaceutical
industry.
 Bargaining power of supply
Bargaining power of the supplies are competitively low in pharmaceutical industry, although
drugs manufacturing company would require varying types of organic chemical and there are
already last number of chemical supply a present in the in within the industry so instead of
buying chemicals at high coast pharmacy company willing to switch to from one company to
another. Due to this aspect most of the supplier are establishing strong relation with their offering
brand because a drugs manufacturing company will buy in the bulk, therefore supplier are
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