Strategic Management and Sustainability

This document discusses the importance of sustainability in strategic management and its impact on the pharmaceutical industry. It evaluates the UK and global pharmaceutical industry using related frameworks and analyzes the competitive environment of AstraZeneca. The document also includes a SWOT analysis and PESTLE framework for AstraZeneca. Get expert study material and solved assignments on Desklib.

STRATEGIC
MANAGEMENT AND
SUSTAINABILITY

Table of Contents
INTRODUCTION...........................................................................................................................3
Main Body.......................................................................................................................................3
Evaluate with evidence the UK and global pharmaceutical industry. Use related frameworks
to analyse industry and sector critically.................................................................................3
Evaluate with evidence the competitive environment of AstraZeneca..................................5
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
With the rapid expansion of business firms in a global market it is becoming essential to
conduct an operational activities in such a way which have a less impact over environment.
Numerous organisation from different sectors such as food and beverages, auto-mobile,
technology firms, health care, military, agriculture are contributing equally towards sustainability
development goals. Sustainability management is defined as the practice of managing the
operational activities of an business which have a deteriorating impact on people, planet and
profit with the objective of future prosperity (Tsalis, and et. al., 2020). Business forms numerous
policies and procedures for executing operational activities which are less harmful to the
environment and are done in a socially accepted manner. Furthermore, Sustainability Strategic
Management is concerned with formulation and implementation of business strategies which
guide the efforts of a business in a economically competitive way, that are balance with nature
cycle, are legally and ethically accepted. AstraZeneca Plc is a pharmaceutical and biotechnology
firm, founded in the year 1999 through merger of Swedish Astra AB and British Zeneca Group,
headquartered at Cambridge, England. The report covers various external factors which affect
performance of AstraZeneca due to the pandemic Covid-19.
Main Body
Evaluate with evidence the UK and global pharmaceutical industry. Use related frameworks to
analyse industry and sector critically
Healthcare industry in UK and across the globe have changed and developed significantly
with an objective to prevent and cure from the infectious diseases affecting mental and physical
state of an human beings. With the massive and detailed research methodology have enabled the
pharmaceutical companies to come up with a affordable and efficient treatment methods to the
common masses so as to promote healthy and safe life (Danso and et. al., 2019). Due to the
sudden and dramatic emergence of Covid-19 have obliged and encouraged pharma companies to
conduct a detailed extensive research with the purpose of providing effective treatments,
therapies, medicines to cure and a vaccine to prevent from the disease. AstraZeneca Plc, a
Swedish-British multinational pharmaceutical and biotechnology company have responded
actively to the pandemic and have developed a vaccine which results to be 95% effective. Since
its inception, the company have made a significant growth in a health care industry and is

offering wide range of products to the disease majorly in the areas like cardiovascular,
oncology,infection, neuroscience, respiratory and inflammation. When Covid-19 emerged,
AstraZeneca announced to donate PPE kit and approximately 9 million masks to the common
people with an objective to fight and mitigating the impact of Covid-19 in a world.
Industry five forces of Global pharmaceutical industry :
Pharmaceutical industry is one of the largest and fastest growing industry generating
huge amount of sales revenue across globe, out of which majorly comes from United States of
America (Meresa, 2019). Need to address the health issue numerous companies are emerging
with new and innovative ideas due to the high growth and profit earning potential from a pharma
sector. Porter's five forces is described below to understand competitive position : Threat of New Entrants : Due to the high growth and profit earning potential have
attracted many to come up with a new and innovative idea in a pharmaceutical sectors
addressing the infectious disease with an aim to provide safe and healthy environment.
However, to enter into a pharma sector an intense research is required which involves
huge amount of cost. Giant and well established pharma firms have a less threat from the
new emerging enterprises and can get an opportunity to buy these firm when decide to
opt for exit during the initial stage of product development. Bargaining power of suppliers : Raw materials required for manufacturing a drug are the
chemical and other liquid substance that can be acquired from many sources (Stahl and
et. al., 2020). Therefore, suppliers in pharmaceutical industry does not hold a dominant
position over drug manufacturers. Additionally, various equipments, tools, techniques
and machinery required by drug manufacturer are even available from many sources thus
making a bargaining power of supplier less. Bargaining power of buyers : Among the other sectors, pharma is the only sector which
have a high bargaining power as compared to the customers. Medical patients have a lack
of bargaining power as concern for the health and health issue are at utmost priority than
anything else. However physicians, drug prescriber, and chemist are ethically not allowed
to make profit from the sale of drug. On the other hand, insurer, exercise a little power
over drug manufacture related with the price, they can deny to pay the amount if the
medicines seems to be overpriced (Hou, Wang and Xin, 2019).

 Threats from the substitute products : In order to create a effective medicines, therapies
and treatments requires a detailed research report on the specified disease. When new
inventions and development of drugs in curating a major disease takes place, companies
aims to protect it from theft by acquiring intellectual property rights. Once the drug loses
its patents or copyrights there are other companies which sells the medicines at low price
with same content, features and solutions. There are also serious threats from the generic
medicines which are cost effective and easily accessible which may affect overall
profitability of a drug manufacturers (Cai and et. al., 2019) .
 Threats from the existing rivalries : Small and medium enterprises are entering into a
pharmaceutical sector due to the high potential for high rate of return. There is intense
amount of competition in the pharmaceutical sector due to the high demand of quality
drugs and every business firm is heading towards creating and improving strong brand
image with their low pricing strategy and high quality drug. However the intensity of
competition can be low if drug manufactures prevents its invention and innovation with
the help of intellectual property rights.
Evaluate with evidence the competitive environment of AstraZeneca
Analysis of external and internal environment helps in understanding the competitive
position of a business and helps in maintaining and enhancing the business position in a long run.
SWOT analysis and PESTLE frameworks help AstraZeneca in identifying strengths through
which company can exploit numerous opportunities and addressing the business weakness along
with preventive measures so as to prevent it to be a threat for the company.
SWOT Analysis of AstraZeneca
Strength Weakness
 AstraZeneca is serving to the healthcare
needs of people at a global scale with a
wide range of products in many streams
such as cardiovascular, oncology,
gastrointestinal etc. Strong and wide
range of products can help the
AstraZeneca in future growth and
 Improper and inefficient financial
planning of AstraZeneca represents
that the company does not use the
financial resources in efficient manner
that would affect over profitability and
investment decision of a company
(Partidário, 2021).

expansion strategy.
 One of the major reason behind the
success story of AstraZeneca lies in a
huge amount of investment in research
and development. Through extensive
reports AstraZeneca have been able to
develop new products catering to the
health needs of common masses
(Yacob, Wong and Khor, 2019).
 AstraZeneca have succeeded in market
through small-large merger and
acquisitions. However the company
have faced lot of difficulties and
challenges in getting along with the
work culture of a another company due
to their own rigid and complex working
culture.
Opportunity Threat
 AstraZeneca spend lot of money into
research and technology which have
positioned the company on top at
global scale in matching the needs and
wants. With the online platform
AstraZeneca have an opportunity to
develop a large customer base through
understanding the customer and their
needs in a better way.
 Quick respond to the global pandemic
Covid-19 have opened a new path for
AstraZeneca. Creative a 95% effective
Covid vaccine have enhanced the brand
image and have developed a valuable
trust and confidence among the people
of UK and the world.
 Due to the emergence of Covid-19,
each and every company is doing their
best to come up with a more effective
vaccine that could be useful in curating
excruciating disease. Rising intense
competition from the rivalry firms may
result in declining profitability of a
company (Pushpakumara and et. al.,
2019). To overcome this AstraZeneca
needs to make continuous improvement
with their R&D programmes so as to be
leader in market environment.
 Maintaining and delivering a standard
quality products in pharmaceutical
industry is on high demand. Changes
and laws and policies may affect the
performance level of AstraZeneca in a
long run. Adhering and complying with
numerous laws and policies set out by
the government can help AstraZeneca

in avoiding penalties, fines and
prosecution.
PESTLE framework for AstraZeneca
PESTLE framework is widely used by the business firms in order to understand external
macro factors that have a significant impact on the overall performance of a company. These
factors gives an insight about an the extent or degree to which these factors affect the business
and what strategies company must adopt in order to minimise the overall impact of these factors
(Hong and et. al., 2019). AstraZeneca use PESTLE framework to look the market environment
with different angles with an aim to have a strong strategies related with new product launch,
diversification or future growth and expansion in overseas market. Political factors : Political factors are concerned with the policies and norms formulated
and regulated with the government of respected country. These factors take into
consideration foreign trade policy, tax policy, environmental law, trade restrictions with
other nations etc. AstraZeneca operates in numerous geographical regions which affects
the business performance and profitability to a greater extent (Bamgbade, and et. al.,
2019). In order to mitigate the risk of these political factors there are few suggestion that
could help AstraZeneca in entering into a new market such as, taking into account trade
regulations and tariffs related with health-care, wage legislations related with minimum
wages and working hours, pricing regulations as there are nations which offers free
medicines to the citizens of nation, along with the political stability and importance of
drug manufacturers in a economy. Economic factors : Another significant factor that may affect the profitability of a
company is inflation rate, interest rate, foreign exchange rate, savings rate that
determine the overall demand and supply in a related economy. These factors are taken
into account by AstraZeneca while expanding its business operations and planning for
growth and success (Rosati and Faria, 2019). For example, frequent changes in currency
rates and instability in host currency will affect the cost of a company, education level
of an economy, what are the labour cost and cost of raw materials, unemployment rate,
business life cycle stages such as recession, prosperity, recovery will help in positioning
the company in a specified economy. Additionally buying habits of a customer and
attitude towards health will also determine success and growth of AstraZeneca. For

example countries which are health conscious and are less prone to the infectious
disease will affect the future growth of AstraZeneca. Social factors : Social factors plays a significant role in determining the success and
growth of a business (Ashrafi and et. al., 2020). Society's culture, beliefs, traditions,
way of thinking, taste and preferences of customer will help the marketer of
AstraZeneca in understanding the target market customer needs and wants. Marketing
strategies will be designed and developed as per the size and scope of a target market.
These factors have a less impact on the business performance, however AstraZeneca
consider various aspects with regards to its such as, attitude of a society towards health
and environment, education level as well as the education standards of AstraZeneca. Technological factors : Technological aspects covers a new innovation and
terotechnological advancements made in an market environment which determines
overall competitiveness of a business firms (Danso and et. al., 2020). AstraZeneca have
been recognised as a business firm which have actively responded to the current market
trends in a technological sector which have helped the company in gaining competitive
edge over others. Recent example is that the AstraZeneca have adopted a modern
technology to deal with the global pandemic challenges and have come forward to
deliver a 95% effective vaccine with the support of Oxford University. One of the
largest contributor to the growth and development of AstraZeneca is their creative and
innovative thinking, new methods of research and development and adoption of new
technological tools. Legal factors : The legal factors involves the various laws and regulations of an
economy that may affect the overall business operations of AstraZeneca. These laws are
related with the employment and wages laws, fair and adequate working conditions,
discrimination laws, consumer protection laws, copyrights and patent laws, health and
safety laws etc. (Raharjo, 2019). AstraZeneca consider these factors while operating into
a distinct economies as changes in laws and policies may impact the performance of a
business in a long run. These factors are necessary to ensure that the AstraZeneca
execute their business operations in a legal and ethical way. AstraZeneca have been in
controversies for the exploitation of various legal factors, in order to have a smooth

functioning of business operation it is imperative for AstraZeneca to take into account
significant legal factors (Tsalis, and et. al., 2020).
 Environmental factors : Environmental factors are the utmost priority of each and
every business to operate in a business environment with minimal impact on nature,
planet and natural resources. These factors are at the forefront because of numerous
reasons such as depletion of natural resource, rise in pollution, carbon footprints,
pollution of water and air, sudden climate change etc. Risk of these factors over
AstraZeneca have a significant impact as drug manufactures cause a intense damage on
the environment. Before entering into a distinct geographical reason AstraZeneca must
consider the environmental standards set by the government to carry out the business
operations. AstraZeneca presently working towards the sustainable approach which is
based on three principles which is access to health care, environment protection, ethics
and transparency (Danso and et. al., 2019). Evidently AstraZeneca have reduced the use
of water up to 20% since 2015 and up to 60% reduction in emission of green house
gases.
CONCLUSION
From the above mentioned report it is concluded that, in a fastest growing and dynamic
environment it is essential for each and every business firm to conduct a micro,macro, internal
and external factors that affects the overall profitability of a company in a long run. Business
make a strong strategic planning which act as guidance, where company follows a prescribe path
with the objective of attaining organisation goals. Business firm also make strategic planning for
sustainability which help them in conducting the business operation in a legal, ethical and
sustainable way with a minimal effect over environment and contributing largely towards the
society development.

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Justification for using the sources: These sources are used in order to justify the above
discussed information with full-fledged evidences. As each and every source provide suitable
information regarding the respective company and for this, respective sources are given. Along
with this, I also mention the proper justification of the useful technology and other factor used in
the project with the help of source 3 and also given explanation about the opted strategies and
useful financial terms and tactics. Apart from this, I also describe the PESTLE analysis in the
above part and for which I also give proper justification by providing suitable evidence with the
help of online sources (source 6 and 7).