Strategic Management and Sustainability in Astra Zeneca

This report discusses the key business strategy, resources and capabilities, and environmental sustainability of Astra Zeneca. It explores how Astra Zeneca aligns its resources and capabilities with its business strategy for success and growth. The report also highlights the company's commitment to environmental sustainability and its efforts to reduce pollution and promote a sustainable environment.

Strategic Management
and Sustainability

Table of Contents
INTRODUCTION......................................................................................................................3
MAIN BODY.............................................................................................................................3
TASK.........................................................................................................................................3
Key business strategy of Astra Zeneca..................................................................................3
Resources and capabilities of Astra Zeneca...........................................................................5
Environment sustainability of Astra Zeneca..........................................................................8
CONCLUSION..........................................................................................................................9
REFERENCES.........................................................................................................................10
Books and Journals:.............................................................................................................10

INTRODUCTION
Pharmaceutical industry very important part of life as it provides medicines to the
needed ones. It is identified that this industries are become in order to develop new product
day by day. This can be possible only because of marketer’s business strategy and marketing
strategies which always assist them to develop their market. In this context, Astra Zeneca
Company is the Sweden and UK based company (Ansari and Freiberg, 2017). It is formed
with the merger of UK's Zeneca group PLC and Sweden's Astra AB. It is the one that
becomes third largest pharmaceutical company in world. They have a largest research and
development centre which invested approximate 16 million dollar every day. They produce
new medicines for gastrointestinal, cardiovascular, cancer, etc. The success depends on their
strategic management in which build best strategy in order to accomplish their aims and
objectives. This report covers key business strategy, resources and environmental
sustainability of Astra Zeneca.
MAIN BODY
TASK
Key business strategy of Astra Zeneca
Business strategy is a planning for long term period which helps organisation to
survive and sustain in the market. The success and growth of any organisation is depends
upon their business strategy which always guides them to take necessary corrective actions.
Business strategy just not only ensures the success and good but also helps them to reduce the
effect of challenges. It is identified that there are many challenges which organisation faces
specially in pharmaceutical companies (Arfvidsson and et. al., 2017). It becomes more
complex for companies after pandemic situation where they have a pressure to produce
vaccines and medicines which helps them to cure and prevent from virus. COVID-19
becomes a very serious virus which is currently spread in the environment. It becomes very
necessary for pharmaceutical companies that they have to manufacture vaccines or medicines
which make sure that it reduces the consequences of this virus.

Astra Zeneca is the third largest pharmaceutical company which have a great pressure
on manufacturing or finding out the best medication for dealing with current pandemic
situation. Due to pressure, they are unable to perform their performance in an effective
manner so that's why this time business strategy plays a crucial role which assists them to
take a corrective action (Bouchu and et. al., 2020). It is identified that w h o has listed two
version of Astra Zeneca COVID-19 vaccine which can be used for emergency situations that
was updated by 17th March 2021. It can be possible only because of their strategy which
gives them strength. This is the main reason that why business strategies plays a crucial role
in the success and growth of any company. It can be better understand with the help of
analysing the business strategy of Astra Zeneca from the last five years.
Their last 5 years business strategy can be better understand with the help of some
important models which are mentioned below:
Bowman's clock
This is strategy awaking the company in the market as compared to other competitors.
It is a model which assisted to analyse their position so that they can work on their important
element which helps them to become able for taking a competitive advantage. This model has
8 positions which are low price and low added value, low price, hybrid, differentiation, focus
differentiation, risky high margins, monopoly pricing, and loss of market share. These eight
positions show the actual position of company (Cooke and et. al., 2020). It is identified that
Astra Zeneca on the differentiate states where they provides different types of products and
services to customers. They also charged premium price for their products and services in the
market. It is identified with the help of differentiation they provide better product
performance as compared to their existing competitors. This is the reason that why companies
in the third position in world. They are adopting differentiation strategy but the success and
growth of this is strategy depends on some important factors. For those factors they bear an
extra cost searches for high marketing which promotes their products in the market. It is also
identified that Astra Zeneca enjoys many benefits due to differentiation strategy. The extra
cost is charged by company from the customers with the help of premium pricing of their
products and services.
Strategic group analysis

It is the model or theory which helps organisation to strategic group analyse the
impact of strategy on organisation. This model i.e. strategic group analysis has a aim to
identify organisations which have similar characteristics of strategy. After finding those
organisations company can take a suggestion from the success of other competitors (Cross
and et. al). It is identified that Astra Zeneca has top competitors which includes Glaxo Smith
Kline and Pfizer. So that's why Astra Zeneca Company needs to analyse the industry with the
help of porter's five forces analysis of pharmaceutical industry.
Porter's five forces of pharmaceutical industry
It is the model that helps Astra Zeneca to analyse the market so that they can take a
corrective action in order to enjoy competitive advantage. There are five forces which are
mentioned below:
 Threats of new entrants: It is identifying in the pharmaceutical industry that the
entrance of new companies is very difficult because it have higher limitations and
regulations in their patent. Companies need high investment cost in research and
development programme which become one important reason.
 Bargaining power of customers: It is very low in pharmaceutical industry because the
medicines are always taken on the basis of prescription which provide by
professionals. So customer has not a right to take decision.
 Threats of substitute: The reason behind no institution is patent and copyright
regulation which cannot be easily taken by every company.
 Bargaining power of suppliers: It is identified that power of supplier is low due to
there are many suppliers which available in pharmaceutical industry. So
pharmaceutical companies take an advantage due to this point.
 Competitive rivalry: In pharmaceutical industry the competition is very tough. But it
is find out that the first mover is always gain advantage. They get pattern for the new
development in medicines.
From the above discussion, it is identified and analysed that Astra Zeneca adopts
differentiation and new product development strategy. In the last 5 years they always focus
on create and develop some new products which assist them to take a competitive advantage.

Resources and capabilities of Astra Zeneca
Resources of Astra Zeneca
Resources are the most important elements in the success and growth of Astra Zeneca
Company. It is identified resources plays a crucial role in the pharmaceutical industry for
companies because it helps them to cope with competitive environment (Ding and et. al.,
2018). With the help of resources and capabilities Astra Zeneca Company can achieve long-
term growth and success. They always make sure that aligned their resources with business
strategies. It is not just a way but also it becomes necessity for a company which assist them
to achieve goals and targets. It can be more understand with their resources and capabilities in
last 5 years. All resources and capabilities are mentioned below:
Physical resources
It concerned with equipments, buildings, machineries, etc. which should be
appropriately available in the organisation. But in the case of Astra Zeneca Company, they
are very rich in physical resources (Holder and et. al., 2018). The company is serving
facilities in many countries such as Macclesfield and Charnwood in UK, Massachusetts in
USA, etc. After pandemic situation, they produce vaccines which are now facilitated in every
country.
Financial capital
Finance as the core of any business because without dam any organisation cannot
survive in the market. It is found that Astra Zeneca Company has approximately $32,804
million. They also stand in seventh positions in the global pharmaceutical industry as
compared to their annual revenues.
Human capital
The success of Astra Zeneca Company is due to their employees' experience, training
and quality of work life, skills, etc. Company always focus on effectiveness of HR
administration and their remuneration facilities (Viña and et. al., 2018). It is the only factor
that motivates their employees to work hard with talent and high qualification in order to deal
with competitive environment. Their powerful research and development team which are

currently working in eight countries have 11600 people. They are better than their and other
competitors.
Intellectual capital
Intellectual capital resources comprises mainly of companies goodwill and their
inventions in the market. Astra Zeneca Company is one of the best and biggest
pharmaceutical company which have a strong corporate goodwill and image. It can be clearly
seen from their awards such as innovative and broad product ranges, employment rewards,
customer support, etc.
Capability of Astra Zeneca
Capability is refers to the ability which company used in order to use resources
effectively. It is very important for the company that only resources are not enough for
company’s growth and success. That means they need to effectively use in the organisation
which creates brand equity (Hot and et. al., 2019). In the history of Astra Zeneca Company it
is identify that their research and development department has a strong capability which
demonstrate long term strength and success. It is identified that the research in department
enhances the market in terms of both vaccines and biologics. They have a capability to
develop good relations in local as well as global market. This can be possible because of their
leadership team of company. They have a capability in order to organise clinical training send
program which concentrate on development of more potential medicines.
Alignment of resources and capabilities with business strategy
It is found that capability and resources develop competencies for companies. It has
management that they can align their business strategies with firms' resources. If company
can successfully align their resources and capabilities with business strategy then they easily
achieve their objectives and goals. Astra Zeneca Company has highly aligned resources and
capability to business strategy (Morgan and et. al., 2018). They successfully implement
product differentiation strategy but for that purpose, they need to confirm that day has enough
HR and financial resources. In addition to this, they adopted focus strategy which also
aligned capabilities and resources. It is identified that Astra Zeneca is successfully utilise

technological advances so that they can match with clinical regulations and need of external
environment.
Environment sustainability of Astra Zeneca
Pharmaceutical industry is one of the industries which give the biggest contribution in
environmental pollution. For the production of medicines and vaccines they are polluted
environment very badly. In the manufacturing of medicines there are many chemicals which
are releasing on the daily basis in environment (Remneland Wikhamn and Styhre, 2019). It is
necessary for the companies that they have to make a sure about sustainability in
environment. That means pharmaceutical companies need to make a business strategy in
which they find the best way to produce medicines with environment sustainability. It is not a
just message for companies but also it is the duty of company that they need to do some for
their corporate social responsibility. Environment system ability is the part of corporate social
responsibility. In the case of Astra Zeneca Company, they built their business on the basis of
five pillars of sustainability. There are five pillars are mentioned below which gives the idea
of their strategy:
Access to healthcare: It is identified that health care should be increase for
undeserved patients because they are suffering from a critical situation as they cannot get
health care facilities. Astra Zeneca Company set goals that they reach to 1 million people
with the help of Young Health Program.
Environmental sustainability: Astra Zeneca is aiming that they have to enhance their
competitiveness with the help of resource conservation. They also aim for efficiency across
their supply chain and business activities. For that purpose, they are focusing on reduction in
operational greenhouse gas footprint. They also focus on reducing hazardous waste and non
hazardous waste. Environment and sustainability is very important for environment. It
becomes necessary that companies need to take and corrective action because day-to-day
environment get more polluted (Snell and Yemen, 2017). In the path of environmental
sustainability, companies need to make sure that they are reducing hazardous gases and
chemicals which harms environment. If day to day pollution is increasing in environment
then it creates difficulties for people and wildlife habitats. They are unable to live in that
environment. Environment sustainability is the rate of pollution creation, depletion of non
renewable resources, and harvesting in renewable resources. Environment sustainability is

necessary and important because it helps in improving quality of life and health of people.
Environmental sustainability is affected by six factors which decide their success. All
important key factors are mentioned below which helps to make more sustainable
environment:
 Optimisation of fossil fuels that means companies need to reduce energy consumption
so that they can save fossil fuels.
 Companies need to look forward in eliminating waste so that they can reduce
production cost and provide good quality of products to their potential buyers.
 It can be more effective if company can recycle their products. Latest dam to reduce
waste.
Great place of work: Sustainability can be seen from the employee's interest in the
workplace. So that's why company need to provide good place of working conditions in
which they are focusing on collaboration.
Ethical business practice: It is very important for the organisation that they have to
perform ethical business practice because it shows the sustainability. It is identified that a
company need to perform their activities in an ethical manner so that they can build
customers’ trust (Suvorov and et. al., 2018). Company need to provide best quality of
medicines which helps customers to improve their disease and health. In pharmaceutical
industry, the ethical practices are playing a very important role because it depends on their
life of people. This is the main reason that why Astra Zeneca Company give concentration on
people life.
CONCLUSION
It is concluded from the above discussion that organisation should effectively
formulate their strategy in order to manage their activities. It is very important for
organisation that they manage their strategy in order to get success in group. In the case of
pharmaceutical industry, it becomes very necessary that they should formulated strategy in
order to get sustainability. Sustainability is very important for company as they can provide
best quality of products to the consumers. For that purpose, companies need to look on their
resources and capabilities which should be align with their business strategy.

REFERENCES
Books and Journals:
Ansari, A. and Freiberg, E., 2017. Supporting Strategic Decisions for Operational Changes
through the use of Discrete Event Simulation: A Case Study in Production Scheduling
at AstraZeneca.
Arfvidsson, C., and et. al., 2017. AstraZeneca and Covance laboratories clinical bioanalysis
alliance: an evolutionary outsourcing model. Bioanalysis, 9(15), pp.1181-1194.
Bouchu, J., and et. al., 2020. Federation of Imaging Data for Life sciences: current status of
metadata collection for high content screening, mass spectrometry imaging and light
sheet microscopy of AstraZeneca, GlaxoSmithKline and NPL.
Cooke, E., and et. al., 2020. Acquisition and management of high content screening, light-
sheet microscopy and mass spectrometry imaging data at AstraZeneca,
GlaxoSmithKline and NPL: a survey report.
Cross, S., and et. al., Who funded the research behind the Oxford-AstraZeneca COVID-19
vaccine?.
Ding, M., and et. al., 2018. Application of high-throughput flow cytometry in early drug
discovery: an AstraZeneca perspective. SLAS DISCOVERY: Advancing Life Sciences
R&D, 23(7), pp.719-731.
Holder, M., and et. al., 2018. Strategy in the Biopharmaceutical Industry. Aligning Business
Strategies and Analytics: Bridging Between Theory and Practice, 1, p.67.
Hot, A., and et. al., 2019. AstraZeneca versus Pfizer. European Journal of International
Management, 13(5), pp.637-661.
Morgan, P., and et. al., 2018. Impact of a five-dimensional framework on R&D productivity
at AstraZeneca. Nature Reviews Drug Discovery, 17(3), p.167.
Remneland Wikhamn, B. and Styhre, A., 2019. Managerial challenges of outbound open
innovation: a study of a spinout initiative in AstraZeneca. R&D Management, 49(4),
pp.652-667.
Snell, S. A. and Yemen, G., 2017. AstraZeneca: Transforming How New Medicines Flow to
Patients1. Darden Business Publishing Cases.
Suvorov, N., and et. al., 2018. Medical Science Liaisons in Real-World Evidence Studies:
Experience of AstraZeneca Russia. Therapeutic innovation & regulatory
science, 52(1), pp.57-61.

Viña, G., and et. al., 2018. AstraZeneca PLC (AZN). Update, 7, p.00.