AstraZeneca: Company Overview, Stakeholder Mapping, PESTLE Analysis, Porter's Five Forces, SWOT Analysis, Industry Life Cycle

This document provides an overview of AstraZeneca, including its vision, mission, values, and key strategies. It also includes a stakeholder mapping analysis, PESTLE analysis, Porter's Five Forces analysis, SWOT analysis, and industry life cycle analysis. The document discusses the company's offerings, revenues, and location. It provides insights into the pharmaceutical industry and AstraZeneca's strategies for growth and development. The document is relevant for students studying strategic management, business, and the pharmaceutical industry.

AstraZeneca

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Company Overview................................................................................................................1
Stakeholder Mapping..............................................................................................................3
PESTLE Analysis...................................................................................................................4
Porter's Five Forces................................................................................................................7
SWOT Analysis......................................................................................................................9
Industry Life Cycle...............................................................................................................11
Key Findings........................................................................................................................13
CONCLUSION..............................................................................................................................13
References:.....................................................................................................................................15

INTRODUCTION
Strategic management can be defined as the proactive administration in an organization
in which strategies plays an important role in formulating the policies, rules, regulations, norms,
goals and objectives. Every function is performed strategically such as human resource
management, marketing management, operations management and many more (Sullivan,
Thomas and Rosano, 2018). Sustainability can be defined as the efficient use of the resources
with minimal wastages of the time, energy and cost. Environment sustainability is for the safety
of environment from various different hazards such as pollution, gas emissions and many more
that are caused because of industries operating nationally or internationally. Pharmaceutical
industry deals with the chemicals and medicines to supply in hospitals or to the doctors so that
they can generate and prescribe it to the patients or the person who require it. Organization
chosen here is the AstraZeneca, it is one of the leading international pharmaceutical company
based in UK in 1999. It offers products and services such as chemicals and medicines specially
for the diseases like oncology, cardiovascular, gastrointestinal, infection, neuroscience,
respiratory and inflammation areas. The following discussion is based on the company overview
of AstraZeneca, stakeholder mapping analysis, pestle analysis, porter's five forces analysis, swot
analysis, industry life cycle analysis and key findings with proper evaluation and conclusion.
MAIN BODY
Company Overview
Vision
AstraZeneca’s vision statement is to make commitment for purposeful variation to
patient's health which is discovered on advanced science. In a quickly dynamic world, their
vision is to transform the way and where their business to grab most of the opportunities that
new sciences and engineering bring up for new medication.
Mission
AstraZeneca’s mission is to generate a significant difference in the lives of the people
they serve and the employees who work under them.
Values
Their values examine how they work collectively and the behaviours that are
constitutional to their thrust for succession in accomplishment of the goals. Their values lead
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decision making, determine their impression and surrogate a powerful AstraZeneca culture
(Willigers, 2020).
Key Strategies
AstraZeneca are impelled by advanced science and their enterprising culture, they are
centred on the bringing of life-changing medication that are accelerating development and
contributively worth to patients and society. At the same instance, the world around them is ever-
changing and the load of illness is increasing. AstraZeneca’s key strategies are to answer by
fostering their direction on growth and development through invention - being more patient-
centric, performing more with practical application, digital and information and progressing
more cutting-edge scientific discipline by grabbing the opportunity in Covid-19 pandemic to
develop vaccine for the same.
Offering
They target on forward-looking science and leading activity in their three primary
medical care areas: Oncology, Cardiovascular, Renal and Metabolism and Respiratory diseases.
Revenues
18.67 billion pounds in 2020: The Anglo-Swedish pharmaceutical giant reported product
sales totalling 18.60 billion pounds for 2020. Total revenue came in at 18.18 billion pounds for
the year, and 5.34 billion pounds for the fourth quarter. Last year's performance marked as
significant step forward for AstraZeneca.
Location
Cambridge, England, United Kingdom.
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Stakeholder Mapping
Anticipate and meet needs
First element of stakeholder mapping, this situation occurs when there is a high influence
of stakeholders but low interest of stakeholders. AstraZeneca engage and consults on interest
areas of stakeholders which tries to increase the level of interest and they aim to move into right
hand box.
Manage most thoroughly
Second element of stakeholder mapping, this situation occurs when there is a high
influence of stakeholder as well as high interest of stakeholders. AstraZeneca focus on the efforts
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of this group by involving in governance and decision making bodies and they engage and
consults regularly.
Regular minimal contact
Third element of stakeholder mapping, this situation occurs when there is a low influence
of stakeholders as well as low interest of stakeholders. AstraZeneca informs through general
communications via newsletters, websites and mail shots and moreover, they aim to move into
right hand box (Tsolakis and Srai, 2018).
Keep completely informed
Fourth element of stakeholder mapping, this situation occurs when there is a low
influence of stakeholders and high interest of stakeholders. AstraZeneca makes interest through
involvement in low risk areas, keep informed and consult on interest areas and potential
supporter and goodwill ambassador.
PESTLE Analysis
It is defined as the scanning of the external environment of the business to better know the
opportunities and threats available for the business in business environment. It stands for
political, economical, social, technological, legal and environmental factors.
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Political factor
This is one of the factor of pestle analysis that is the political factor which consist the
government's role in an industry in terms of political stability, health of the government, level of
corruption, trade policies, fiscal policies and many more. In context of AstraZeneca, there is a
both positivity and negativity because of some reasons such as they face the uncertain issues due
to the Brexit incident in UK and moreover, due to Covid-19 pandemic, there is an increased
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spending on health care products and services by governments by rendering health care
programmes like Obama care and Modi care.
Economical factor
This is an another factor of pestle analysis that is the economical factor which consist the
employment and unemployment rates, inflation and deflation rates, demand and supply, national
and gross income, gross domestic product and many more. In context of AstraZeneca, there is a
positivity for the company in above mentioned factors because of some reasons such as there are
various steps taken by the government due to Covid-19 pandemic to lower drug prices and
moreover deteriorating returns on the research and development department investment in the
pharmaceutical industry (Shtal, Buriak, Ukubassova and Tlegen, 2018).
Social factor
This is also the one of the factor of pestle analysis that is the social factor which consist
taste and preferences of the society, recent fashion, current trends, income of the family, health
and safety, birth rates, population and many more. In context of AstraZeneca, there is a positivity
in above mentioned factors because of some reasons such as ageing population will lead to
greater growth and opportunities, this results in significant growth in the number of patients that
are suffering from illness which are majorly caused by the urban life style and moreover due to
the rise in income levels of the families as well.
Technological factor
This is also an another factor of pestle analysis that is the technological factor which
consist artificial intelligence, automation, hardware and software requirements, technical and
specialised people, applications, compatibility, platforms, internet, networking, connections and
many more. In context of AstraZeneca, there is positivity in above mentioned factors because of
some reasons such as there is a good investment in building innovation centre to promote and
boost quality manufacturing in an industry and moreover, there is a good use of artificial
intelligence and tracking systems to aid in drug evolution or discovery by tackling counterfeits.
Legal factor
This is the factor of pestle analysis that is the legal factor which consist different laws,
regulations, norms and policies such as zoning laws, consumer protection laws, health and safety
laws, privacy and data protection laws, antitrust laws, civil rights laws, employment laws,
banking laws, intellectual property laws, tax laws and many more. In context of AstraZeneca,
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there is a negativity in above mentioned factors because of some reasons such as there is a
decline in drug approval from the regulatory bodies, frequent changes made on the tax rates of
the nation and moreover, there is an adverse impact of General Data Protection Regulatory
(GDPR) on operation and development of drugs (Hans, 2018).
Environmental factor
This is an another factor of pestle analysis that is the environmental factor which consist
those elements which harms or does not harms the environment in any way which defines the
sustainability factor for an industry. In context of AstraZeneca, there is a positivity in above
mentioned factors because of some reasons such as they have taken the step to tackle the global
climate change by adopting the strategic leadership styles and roles performed in an organization
so handle out such situation in an effective, efficient and potential manner.
Porter's Five Forces
It is defined as the analysing of the external environment of the business to know about
their level of treats associated with the business by examining the threat of new entrants, threat
of substitutes, bargaining of suppliers, bargaining power of customer and competitive rivalries.
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Threat of new entrants
There is a low threat of new entrants for AstraZeneca because the pharmaceutical
industry is an expensive one which initially requires the high cost infrastructure, raw materials
and human resources with specialised capability. The one who can invest high amount of capital
in initiating their business in pharmaceutical industry can only survive in the market place.
Threat of substitutes
There is a high threat of substitutes for AstraZeneca because the pharmaceutical industry
consists so many companies such as Sanofi, GSK and many more which produces and offers the
customer similar quality, similar pricing and similar quantity of goods and services by small
scale industries and large scale industries as well. So people and retailers can easily switch from
one company to another if they find any better offer from another organization (Bruijl, 2018).
Bargaining power of suppliers
There is a low bargaining power of suppliers for AstraZeneca because the AstraZeneca is
one of the branded, leading and most trusted organization which deals with chemicals, medicines
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and drugs for the welfare of the people which operates at international level. Therefore, suppliers
don't want to lose the dealings with AstraZeneca as they purchase in bulk for high production
with the prices offered to them
Bargaining power of buyers
There is a moderate level of bargaining power of buyers for AstraZeneca because the
company is associated with both the factors, one is that it is branded and good image in the
market place and second is competition in the market, so there can be low as well as high
bargaining power of the buyers as per the situations (Pervan, Curak and Pavic Kramaric, 2018).
Competitive rivalry
There is a high level of competitive rivalries for AstraZeneca because the pharmaceutical
industry consists large number of companies which gives the tough competition to the
AstraZeneca such as Decipher labs, Daiichi Sankyo, Boehringer Ingelheim, Sanofi, Novartis,
GSK, Amgen and Bayer.
SWOT Analysis
SWOT analysis can be defined as the internal scanning of the business environment which
analyses the strengths, weaknesses, opportunities and threats of the company to take proper
measures for future considerations (SWOT Analysis, 2021).
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Strengths
This element is considered as the merit for the organization through which they can gain
stability in the market place. Strengths of AstraZeneca are that they have rapid decision making
process and streamlined processing, they have good commercial and research and development
existence in the rising market, they are operating in over 100 countries with 60,000 employees
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working for them, they are investing high in research and development department with over
11,000 people in a team, they have ten products with international sales more than one billion
dollar and they have vast and diverse portfolio of products they are offering (Phadermrod,
Crowder and Wills, 2019).
Weaknesses
This element is considered as the disadvantages for an organization because of which
they suffer in the market place. Weaknesses of AstraZeneca are that they are highly affected due
to the drug shortage crises in case of Cefotan, and due to Covid-19 pandemic they have suffered
product discontinuation many a times which has adversely affected their performances and their
image is affected negatively due to the legal proceedings related to patents and pricing issues in
the organization.
Opportunities
This element is considered as the favourable conditions in an organization through they
have the chances to grow, develop and expand their business. Opportunities for AstraZeneca are
that they can leverage its strong presence in rising market place, biosimilar market place is
increasing very frequently across the world on an international basis and moreover, ageing
population is increasing rapidly day by day globally and moreover due to Covid-19 pandemic,
they have the opportunity to invent the vaccine so that more and more sales generations could be
pssible (Vlados, 2019).
Threats
This element is considered as an unfavourable condition in an organization because of
which company suffers in its productivity. Threats of AstraZeneca are that one of their
blockbuster drug Seroquel is facing threat of copycat generic drugs, due to Covid-19 pandemic,
drug development guidelines are strict and moreover, they are facing high rivalries in an industry
mainly in segment of drugs.
Industry Life Cycle
It can be defined as the life cycle of the industry which states and depicts that when the
industry will grow, shakeout, mature and decline in terms of time and industry output.
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Start-up
This is one of the element of industry life cycle analysis that is the start-up which states
the situations in pharmaceutical industry such as slow growth, high prices, significant investment
and high risk stage.
Growth
This is an another element of industry life cycle analysis that is the growth which states
the situations in pharmaceutical industry such as rapidly increasing demand, improving profits,
falling prices and low competition stage (Albrecht and Fischer, 2021).
Shake out
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This also the one of the element of industry life cycle analysis that is the shake out which
states the situations in pharmaceutical industry such as again slowing growth, intense
competition and declining probability and focus on cutting cost.
Maturity
This also an another element of industry life cycle analysis that is the maturity which
states the situations in pharmaceutical industry such as little of no growth, industry consolidation
and high barriers to entry.
Decline
This is the element of industry life cycle analysis that is the decline period which states
the situations in pharmaceutical industry such as negative growth, excess capacity and high
competition (Nain and Ying, 2018).
Key Findings
It is discovered and evaluated that there is moderate level for AstraZeneca in political
factors, there is an opportunity for AstraZeneca in economic, social, technological and
environmental factors and there is threat in the legal factors for AstraZeneca. There is low level
of threats of new entrants, there is high level of threats of substitutes, there is low level of
bargaining power of suppliers, there is moderate level of bargaining power of buyers and there is
high level of competitive rivalries associated with the AstraZeneca (Wise, 2021).
CONCLUSION
It is concluded that strategic management and sustainability of pharmaceutical industry is
an essential part to focus because chemical industry emits maximum harmful gases so it is highly
requiring to manage such operations in a strategic manner. It has a great role in the COVID-19
pandemic situations as they have contributed to produce the vaccine which has benefited the
people at maximum. Therefore, it is important to analyse the company overview of AstraZeneca,
it is essential to examine the stakeholder mapping analysis, it is necessary to determine the pestle
analysis, it is significant to justify the porter's five forces analysis, it is crucial to investigate the
swot analysis, it is mandatory to study about the industry life cycle analysis and it is required to
learn about the key findings of the whole scenario. Hence, this report covers all such areas to
better understand the concept of strategic management and sustainability of pharmaceutical
industry so that an individual can apply such theories and practices in their real time occupation
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and organization and moreover, they can get an efficient knowledge about the current trends
going on in an industry at the time of COVID-19 situations. This can have enhanced a person in
educating well about the business environment strategically.
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References:
Books and Journals
Albrecht, S. and Fischer, M., 2021. Cooperation of Young Researchers from Science and
Industry—Life Cycle Assessment in Theory and Practice. In Progress in Life Cycle
Assessment 2019 (pp. 1-4). Springer, Cham.
Bruijl, G.H.T., 2018. The relevance of Porter's five forces in today's innovative and changing
business environment. Available at SSRN 3192207.
Hans, V.B., 2018. Business environment–conceptual framework and polices. Internatioal
Educational Scientific Reseach Journal. 4(3). pp.67-74.
Nain, A. and Ying, J., 2018. Initial public offerings over the industry life cycle. Available at
SSRN 3239726.
Pervan, M., Curak, M. and Pavic Kramaric, T., 2018. The influence of industry characteristics
and dynamic capabilities on firms’ profitability. International Journal of Financial
Studies. 6(1). p.4.
Phadermrod, B., Crowder, R.M. and Wills, G.B., 2019. Importance-performance analysis based
SWOT analysis. International Journal of Information Management, 44, pp.194-203.
Shtal, T., Buriak, M., Ukubassova, G. and Tlegen, T., 2018. Methods of analysis of the external
environment of business activities.
Sullivan, K., Thomas, S. and Rosano, M., 2018. Using industrial ecology and strategic
management concepts to pursue the Sustainable Development Goals. Journal of Cleaner
Production, 174, pp.237-246.
Tsolakis, N. and Srai, J.S., 2018. Mapping supply dynamics in renewable feedstock enabled
industries: A systems theory perspective on ‘green’pharmaceuticals. Operations
Management Research. 11(3-4). pp.83-104.
Vlados, C., 2019. On a correlative and evolutionary SWOT analysis. Journal of Strategy and
Management.
Willigers, B., 2020. How advanced analytics create (Core) value: an example from a
pharmaceutical company, AstraZeneca. Journal of Business Analytics. 3(2). pp.122-137.
Wise, J., 2021. Covid-19: New data on Oxford AstraZeneca vaccine backs 12 week dosing
interval.
Online Reference
SWOT Analysis. 2021. Available through <
https://www.mindtools.com/pages/article/newTMC_05.htm>./
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