Business Management Project Analysis

The provided document is an analysis and management paper on business production capacity. It includes research on stakeholder relationship management, project risk reduction, business process management, and project-based learning. The paper explores the roles of information technology and knowledge management in project management metrics and integrates sustainability into project risk management.

Integrated Case Study
Analysis

EXECUTIVE SUMMARY
The present report is based on acquisition between two leading pharmacy companies in which
one of them take an initiative talk for the same. It include Pfizer which is pharmaceutical
company of United States following a strategy to acquire other brands to achieve profits and
market share effectively in one stroke. However, the another company which is going to be
acquired named as AstraZeneca which is leading company of pharmacy in United Kingdom
having better goodwill and profit share in UK market. In addition to this, the problem statement
is about post acquisition issues which AstraZeneca faced problems related to operations as
overall operational activities and procedures get disrupted. Another issue is about large number
of job losses which is not favourable but Pfizer can gain profit by reducing cost of production
and save money on taxes. The aims of present research include identifying the impact of post-
acquisition on business operations and employee of AstraZeneca and determining purpose of
Pfizer to buy AstraZeneca Company. The given investigation will focus on problems faced by
acquired company and benefits of acquirer organisation to evaluate correct solution to facilitate
this acquisition.

Table of Contents
EXECUTIVE SUMMARY.............................................................................................................2
CHAPTER 1: Introduction .............................................................................................................5
1.1 Background of the the study.............................................................................................5
1.2 Purpose of the study.........................................................................................................5
1.3 Statement of the problem..................................................................................................5
1.4 Research questions...........................................................................................................6
1.5 Research objectives..........................................................................................................6
1.6 Structure of the report.......................................................................................................6
CHAPTER 2: Case brief..................................................................................................................6
2.1 Background of the company.............................................................................................6
2.2 Strengths of the company.................................................................................................7
2.3 Weaknesses of the company.............................................................................................7
2.4 Challenges of the company..............................................................................................8
2.5 Competitors of the company............................................................................................8
CHAPTER 3: Problem statement & tools and models to be used...................................................9
3.1 Problem statement............................................................................................................9
3.1.1 Impact of post acquisition on business operations and employee of AstraZeneca ......9
HR issues................................................................................................................................9
Operational issues.................................................................................................................10
3.1.2 Purpose of Pfizer to buy AstraZeneca company.........................................................11
3.2 Sources to be used..........................................................................................................13
3.2.1 Research Strategy........................................................................................................13
3.2.2 Research approach.......................................................................................................13
3.2.3 Data collection method ...............................................................................................13
3.3 Tools and models to be used..........................................................................................14
3.3.1 Swot analysis...............................................................................................................14
3.3.2 Transformational leadership........................................................................................16
3.3.3 Ansoff matrix...............................................................................................................16

3.3.4 Maslow theory of motivation......................................................................................16
3.3.5 Kotters step model of change management.................................................................17
CHAPTER 4: Analysis and Findings............................................................................................17
4.1 Swot of Pfizer and AstraZeneca ....................................................................................17
4.2 Transfomational leadership............................................................................................17
4.3 Ansoff matrix..................................................................................................................17
4.4 Current position faced by U.K. pharma brand AstraZeneca and U.S. Brand Pfizer......18
4.5 Change management including models to overcome issues..........................................20
Action plan...........................................................................................................................20
4.6 The differential efficiency model...................................................................................22
CHAPTER 5: Conclusion..............................................................................................................23
5.1 Solutions to the problem.................................................................................................23
5.2 Conclusion......................................................................................................................23
5.3 Recommendation............................................................................................................23
5.4 Scope for further research..............................................................................................24
5.5 Limitations of the research.............................................................................................24
REFERENCES..............................................................................................................................25
APPENDICES...............................................................................................................................28

CHAPTER 1: Introduction
1.1 Background of the the study
The present report will focus on analysis of two pharmacy companies including Pfizer
and AstraZeneca in which one of them initiated talks regarding possible acquisition between
them. Acquisition can be described as a situation in which a company purchase another business
concern in order to take control for the same. It consist the condition when a company purchase
more than 50% or overall shares to gain ownership of other target firm to enhance their
productivity and size (Jack, 2014). In addition to this, it is necessary to analyse overall
challenges and benefits of these organisations after acquisition including the fact that Pfizer can
gain favourable benefits by acquire other company in order to improve efficiencies through cost
cutting which facilitate boost up profitability of business. However, it is essential to determine
overall consequences, challenges and benefits from the forthcoming acquisition in order to
implement the same in practical manner which is suitable for both the organisations.
1.2 Purpose of the study
The purpose of the study is to analyse overall aspects like profitability, operational
disturbance, employee disturbance, finance and other factors. It is necessary to determine
impacts of acquisition on staff members and operational activities of both companies which
provide support to make an appropriate decision for completing the same. However, the purpose
of this study is to evaluate overall circumstances of business operations, taxation rates, employee
problems and other issues faced by organisations (Kolditz and et. al., 2016). In addition to this, it
will render help to conduct meetings and make correct decision by establishing accurate contract
among both companies i.e. Pfizer and AstraZeneca accordingly.
1.3 Statement of the problem
The statement of problem is “the proposed price of deal for acquisition is undervalued its
pipeline and integration of two companies would disrupt operations and workers of AstraZeneca
face significant job losses. Herein, this statement indicates that if both the organisation merge
together than they disrupt the operation of workers in competitive market of pharmaceutical
(Nicholas and Steyn, 2017). As workers of AstraZeneca are facing many issues and problems as
they have loosed their job. Moreover, if the merger would disrupt operation and activities of

worker then their will high number of turnover of employees and staff member which lead to
create negative image in competitive marketplace.
1.4 Research questions
 How to identify the impact of post acquisition on business operations and employee of
AstraZeneca?
 What is the purpose of Pfizer to buy AstraZeneca company?
1.5 Research objectives
 To identify the impact of post acquisition on business operations and employee of
AstraZeneca.
 To explore the purpose of Pfizer to buy AstraZeneca company.
1.6 Structure of the report
The present will include the problem faced by Pfizer to buy AstraZeneca company and
impacts of post acquisition on the operations and employees of the take over firm. It include to
analyse the overall aspects related to both organisations and determine suitability in order to
make correct decision for doing the same practically (Soria and et. al., 2015). However, it will
involve brief of given case in order to analyse strength and weaknesses of selected organisation
along with determining challenges faced by firm as well as their competitors.
Moreover, it will consist literature reviews about research questions including impact of
post acquisition on operations and purpose of the same. In addition to this, the analysis collected
data is required to be done and provide discussion about findings of overall investigation in
proper way (Uhl and Gollenia, 2016). Meanwhile, the analysis of obtained solutions to specific
problems & issues and appropriate recommendations are given below.
CHAPTER 2: Case brief
2.1 Background of the company
The given investigation include two organisations such as Pfizer and AstraZeneca which
are deals in pharmacy and provide medicines for different types of health problems. Initially,
Pfizer is a US based company is known as largest pharmaceutical organisation at global level
having revenue of $52 billion along with $192 billion market capitalisation at the end of the year
(Lientz and Rea, 2016). It was founded by Charles Pfixer & Charles F. Erhart in the year around
1849 in New York and it pioneered the mas production of penicillin in 1940s. This company has

a credit to develop medicines and vaccines for various medical disciplines including cardiology,
endocrinology, oncology, immunology and neurology (Oxnard and et. al., 2018).
At the other hand, AstraZeneca is considered as British Swedish multinational
pharmaceutical and biopharmaceutical company. It was founded by in the year around 1999 in
Cambridge, UK and produce products of medicines for major disease areas such as cancer,
cardiovascular, gastrointestinal, infection, neuroscience, respiratory and inflammation (Kerzner,
2019). However, this company is known as second largest pharmaceutical company in United
Kingdom having sales approximately $25.7 billion and the year end market value is around
$89.5 billion. Moreover, they are selling various kinds of drugs such as Crestor (cholesterol
reduction), Nexium (acid reflux), Symbicort (asthma), Zoladex (breast cancer), Seroquel XR
(schizophrenia) and Synagis (respiratory infections).
2.2 Strengths of the company
The strengths of Pfizer is their strategy and methods in order to expand their business and
become large brand ta global levels. However, they have strategy of acquisition which provide
support to them to enhance their business and boost up the size of the organisation in respect of
increasing productivity as well as profitability. Moreover, it is one of the largest pharmaceutical
company in the country and spreading out is facilities over more than 50 countries at worldwide
(Harrison and Lock, 2017). With the help of proper research and development process they are
creating innovation and break throughout their product and services along with the merger and
acquisition with big pharma brands so that they can increase their brand name and reputation in
competitive market place of same industry line. For example, the Pfizer acquire Warner Lambert
for approximately $93.4 billion previously in a hostile take over in respect of becoming largest
pharmaceutical company in United States. At the other hand, the another strategy of Pfizer is
financial transaction which is all about to cutting more costs along with boosting up earnings of
company rather than improving the drug pipeline accordingly (Anwar, 2016).
2.3 Weaknesses of the company
The weakness of this company is that they did not focus on improvement of present
operational activities and methods which is necessary to satisfy the customers in proper manner.
It is essential for every business concern to put efforts for gaining perfection in operations in
respect of making products more effective which facilitate to attract new customers and retain
the current ones that results into improved profitability of organisation. Another weaknesses

include the tough competition from another major pharma brands means limited scope for
market share growth. Moreover, negative brand image due to involvement in largest healthcare
fraud of marketing its drug in legal manner (Ramalingam and et. al., 2018). Furthermore, its
weakness is that they are not good at demand forecasting which are leading to higher rate of
missed opportunities as compare to its competitors. They are also not highly successful at
integrating firms due to different work culture as it have to share its failure to merge firms that
have different work culture.
2.4 Challenges of the company
In context of Pfizer, there are several challenges which are required to be focussed in
order to overcome the same for profitability of company. Initially, it has a challenge to launch
new products and gain success of them because it is analysed that few of fresh goods did not
became successful in the market (Kanneganti and Synn, 2014). However, another challenges to
cope up with changing regulatory environment as it becoming more and more stringent. In
addition to this, one other challenge has been determined that economic showdown in European
markets. Moreover, these challenges should be overcome in respect of maintain better goodwill
in market and increase profitability as well. Furthermore, their biggest challenge it that they are
awaiting for the biggest approval of their eight programs such as including dermatitis drug
crossable as well as addition for cancer treatment drug lbrance in Europe. Because of high risk
factor and safety issues it could arise in clinical trial if any kind of problems occur within int.
2.5 Competitors of the company
The Pfizer company has various competitors as it is global brand then it is necessary to
make an appropriate strategies and policies in order gain competitive advantage. However, the
main competitors of Pfizer are Abbott Laboratories, Amgen, AstraZeneca, Bristol Myers Squibb,
Johnson & Johnson, Merck, Movartis, Roche Holdings and Sun Pharma Industries (Torres and
et. al., 2018). Moreover, it is important for Pfizer to analyse competitors' strategies and put
efforts to make brand more effective as compared to others to in respect of grabbing better profit
share in market.

CHAPTER 3: Problem statement & tools and models to be used
3.1 Problem statement
The problem statement is that AstraZeneca would face several problems after
forthcoming acquisition by Pfizer including price of this project of deal is significantly
undervalued its pipeline. It also include that post acquisition integration of these two
organisations would disrupt operations as well as staff members would face significant job losses
which is not favourable (Park and et. al., 2016).
3.1.1 Impact of post acquisition on business operations and employee of AstraZeneca
The acquisition of AstyraZeneca by Pfizer is beneficial for acquirer company but it
would impacts negatively on several aspects in context of AstraZeneca. As per view point of
Katsanis (2015), it includes that they did not get proper value for this project and it effects on
operational activities which results into inappropriate outcomes of production procedures.
However, there are several post effects of acquisition on AstraZeneca regarding business
operations and employees in which few of them are explained here.
HR issues
Loss of jobs – The employees of AstraZeneca would face job losses which is not suitable
as workers are backbone of an organisation whose efforts are responsible for overall brand image
and profitability of business. However, job loss of workers in large number increase the
employee turnover of an the organisation which increase cost of hiring which facilitate to
improve overall cost of business and reduce expected profits respectively. According to opinion
of Ertürk (2015), the old employees were trained but after job losses, the company is required to
further invest on training and learning programs and spend duration on that to make new workers
able for performing properly. Overall, job losses is not beneficial and it is necessary to retain
previous employees of AstraZeneca for achieving more benefits from acquisition by Pfizer.
Integration issues – In context of post acquisition, the people belongs to different culture
and nation work together then it will create conflicts and issues between them which impacts
negatively on overall atmosphere of organisation (vom Brocke, Zelt and Schmiedel, 2016). It is
necessary to maintain better employee relations for completing operational tasks in proper
manner regularly. However, it takes time to establish desired relationship among staff members
by implementing effective policies or rules for maintaining peaceful working environment.

Moreover, integration of acquired organisation can bring several challenges including
undercurrents of anxiety and anger among employees which impacts on productivity of business.
Operational issues
Operations disruption – In context of acquisition, company may faced various kinds of
challenges in order to conduct regular basis operational activities and processes due to stretching
of completion of project of acquisition (Kerzner, 2018). It include the the distraction of staff
members from their own tasks and roles because the managerial focus get diverted away from
internal development as well as daily operations accordingly. AstraZeneca would face these
problems which impacts negatively in their productivity and profitability of business which is
appropriate for future growth and success. In addition to this, operation are key to production to
supply product in market for completing demands of customers but disruption in operations
directly impacts on supply and profits.
Diseconomies of scale – The acquisition impacts negatively as the company face
diseconomies of scale from the increased size and workers of acquired firm feel uncomfortable
for performing with new managers. As mentioned by Papadimitrakopoulou and et. al. (2018), it
may results into lack of same degree of control and struggle to encourage employees for
improving their work efficiency as well as productivity on daily basis. Moreover, motivation of
workers is very important and make them feel secure wile working in an organisation is an
important aspects for retaining employees with better productivity as it is favourable for
achieving more profits of business. Additionally, it is essential for new company authorities to
focus on several diseconomies of scale in respect of maintaining the effective brand image for
increasing profitability.
Marketing issues
Communication challenges: Communication factor is one of the top factor that caused in
case of acquisition. Herein, it is necessary for an organisation to communicate to about
acquisition to its employees, staff member and customers so that they have proper knowledge
regarding mergeR. Herein, communication is one of the key term in merger and acquisition as it
is necessary for an respective organisation to inform about minute details to general public so
that each and every one are informed about its project of acquisition (Milosevic and Martinelli,
2016). Moreover, in such case general people can also help them to take right decision in taking
such decision-making process so that they can achieve their gaols and objectives respectively.

Cultural challenges: In toady's context merger and acquisition usually occurs due to
financial crises or else fail to raise up the cultural implication that may occur within the
organisation (Hwang, Zhu and Tan, 2017). Culture is long standing implicitly shared values,
beliefs and assumption that influences influences behaviour of employees and customer towards
an organisation. In case of AstraZeneca they were facing problems within an organisation of
employees so they decided to adopt the strategies of merger which leads to create negative
implication on competitive marketplace. Herein, both the companies will face cultural problem
as both their cultural of working place differ from each other. Thus, cultural can create problem
in merger of a particular company in competitive market place.
Leadership issues
Leader play's an effective role in effective role in acquisition such as they have to
managed both current task as well as post task after merger. Their main goal is to eliminate those
negative internal and external factors before they become of the significant problem. Herein,
some of the issues face by a leader within acquisition are that they need to listen keenly about
each and every activities so that they do not misplace any king of communication which may
lead to bring out any kind of fault with process of merger. For such purpose they need to
communicate on regular basis to general public as well as management so that effective decision
can be taken with stipulated period of time (Batkovskiy and et. al., 2016).
3.1.2 Purpose of Pfizer to buy AstraZeneca company
The Pfizer initiated talks regarding acquisition in order to acquire another pharmaceutical
company named as AstraZeneca which is a pharma brand of united Kingdom. However, Pfizer
has an old strategy to buy other firms to expand their business along with increase profitability
and competitive advantage (Sherry, 2018). Meanwhile, it include the purpose of Pfizer for
acquire other company in respect of bringing better products to market faster with the help of
combining the drug development pipelines of two leading companies to attain better outcomes in
business. This acquisition is beneficial for Pfizer as they want to acquire AstraZeneca to improve
their operations and expand brand along with achieving better growth ans success of business
respectively. The purpose of Pfizer for acquisition to gain various benefits in which some of
them are described below.
Reduce cost of production – This refers to reduce the overall costs of production which
facilitate to increase the profit margin on order to boost up profit achieved by business

organisation (Cardona and et. al., 2017). It include to focus on every purchasing and expenses of
operations which can be reduced by Pfizer through completing acquisition with UK based
pharma company through which they expand size of organisation as well as improve the
profitability. However, it will provide support to acquirer company for reducing the overall cost
of manufacturing which they can save as their profit margin in order to gain further growth in
business respectively.
Save on corporate Taxes – Every organisation is required to collect particular amount of
as taxation and required it to government according to set regulations of taxes. As er views of
Gutiérrez-Gutiérrez and et. al., (2017), it is necessary for each business concern to focus on
legislation related to taxation in respect to pay appropriate amount on time for running business
in proper manner. In context of Pfizer, they become capable to improve efficiencies of cutting
the cots in terms of saving amount on taxation which provide support to boost up profit margin
of company. In addition to this, by acquiring UK brand of pharma, Pfizer can reduce their
taxation and save money for improving profitability.
Grab more profit share – This include to make effective strategies and take actions in
terms of grabbing more profits share of market and make strong position in front of competitive
firms (Bourne, 2016). Meanwhile, it is necessary to make improve brand image and expand the
product demand which facilitate to improve profitability and company can increase their position
in top pharma companies at global level. However, acquisition of Pfizer with AstraZeneca
provide support to reduce competition and increase customers are one stroke which helps to
enhance business for increase brand at global level to achieve more profits share.
Market power – The given acquisition is helpful for Pfizer as it will facilitate to quickly
build market presence of new company which provide support to increase market shares
effectively. However, it is also favourable in terms of reducing the competition's strong hold
which helps to attract new customers along with retaining the current ones in respect of
increasing profit share in market and improve market power of company as well (Geradin, 2014).
New resources and competencies – Considering the acquisition by Pfizer, they become
capable for gaining new and effective resources and competencies which were not holding by
organisation previously. It is favourable for improving efficiency of overall organisation which
facilitate to boost up production of pharma products which results into increase effectiveness of

medicines to satisfy the customer. Moreover, it will increase customers for brand which facilitate
to increase sales and profits of organisation along with improving and image in market.
3.2 Sources to be used
3.2.1 Research Strategy
Research strategy refers to focus on project or topic of investigation in order to select
appropriate design and other method for conducting the same in proper way (Kliem and Ludin,
2019). It can be divided into several categories including case study, quantitative survey,
qualitative interviews and action oriented research. The present investigation will prefer to use
research strategy of case study in order to determine actual findings regarding problem for
completing acquisition between Pfizer and AstraZeneca.
3.2.2 Research approach
Research Approach can be described as a procedure and plan that includes step of wider
assumption to detailed data collection method, analysis and also interpretation. It is based on
nature of research issues which are being addressed. Inductive and deductive are two different
kinds of research approaches (Matteo and Baño, 2016).
Initially, inductive approach include the criteria that it starts with theories and observations
which are proposed towards end of research process as observation results. It is helpful in
proving the existing theories by developing tentative hypothesis. In addition to this, deductive
approach- In this, new theories are developed and also proves by creation of the hypothesis.
Outcomes are to confirmed by observing the current facts and figures. This approach is based on
quantitative research method. This research follows inductive research approach because it is
based on quantitative research method and provide in- depth analysis of information and data.
3.2.3 Data collection method
Data collection can be explained as a method through which information can be collected
by using various sources. There are two different data collection methods such as primary and
secondary sources. However, primary method consists the collecting fresh data related to specific
subject area (Boyer, Brealey and Davis, 2015). Under this, data is collected first handed and not
used before. In order to collect primary information, researcher use different sources like
surveys, questionnaire etc. in contrary to this, secondary method include the data which is
already collected through primary research. It is mainly used in conducting literature review part.

Meanwhile, it involve different sources of collecting data or information are books, journals,
articles and many more (Vom Brocke, Petry and Gonser, 2016). The present case study research
will focus on secondary data in order to provide discussion of position faced by selected
company and gain findings.
3.3 Tools and models to be used
The differential efficiency model states that more efficiency firms will acquire less
efficient firms and realise gains by improving their effective abilities. However, it is necessary to
implement excess managerial capabilities in order to acquire AstraZeneca by Pfizer. Moreover,
differential efficiency would be most likely to be a factor for improving overall capabilities of
business concern to grab more profit share. Herein and organisation are adopting
transformational leadership model in their merger and acquisition as this leadership is found of
all levels of organisation such as team, departments, division as well as organisation as a whole
(Eskerod and Jepsen, 2016). Moreover, it help in creating and promoting consistent vision,
mission and set values to members of a organisation in an effective so that they perform their
work as per their gaols and objectives. Apart from this such kind of leader always motivate its
followers to perform task in an effective manner with innovation and creativeness in it. Thus, it
empowered to make decision which are always provided and need to support and implement in
decision making process.
3.3.1 Swot analysis
Swot analysis of Pfizer –
Strengths Weaknesses
 It has an excellent research &
development which is responsible for
creating innovative and breakthrough
products.
 It has another strong point if having
mergers and acquisition with big
pharma brands increasing brand
reputation (Heldman, 2018).
 It face tough competition from other
major pharma brands means limited
scope for market share growth.
 It has negative brand image due to
involvement in largest healthcare fraud
of marketing its drug illegally.
Opportunities Threats

 It includes strategic agreements with
other pharmaceutical companies and
organisations to boost up their reach.
 It has increasing demand fort quality
healthcare solutions.
 They have a risk of unsuccessful
products in market (Walker and Lloyd-
Walker, 2016).
 The regulatory environment is
becoming more & more stringent.
Swot analysis of AstraZeneca –
Strengths Weaknesses
 It involves the rapid decision making
and streamlines due to diligence
processing.
 It has a product portfolio which consist
cancer, cardiovascular, gastrointestinal,
infection, neuroscience, respiratory and
inflammation medicines (Müller and et.
al., 2016).
 It was affected by drug shortage crisis
as in case of Cefotan.
 It has legal proceedings related to
patents and pricing issues impatiens on
their brand image.
Opportunities Threats
 It has a opportunity that they can
leverage its strong presence in
emerging markets.
 It has increasing importance of
biosimiler market and boosting up
global ageing population
 Seroquel their blockbuster drug is
facing threat of copycat generic drugs.
 It includes competition coming up with
effective drugs.
The swot analysis of Pfizer and AstraZeneca is required to be carried out in order to
analyse their strengths and weaknesses so that appropriate vision of business can be established
for success of upcoming acquisition respectively. However, it will facilitate to utilise strengths of
both brands in order to make more accurate goal for growth of business in future after proposed
acquisition. This is helpful to align vision, mission and objective of business for future growth
(Smith and Dodds, 2017).

3.3.2 Transformational leadership
Transformational leadership refers to an effective model in which leaders encourage, in
spite and motivate employees in order to innovate & create change that facilitate growth of
company. It consist the criteria of motivate staff members for criteria new ideas in respect of
facilitating growth & shape the success of future of the organisation. In context of proposed
acquisition, new company can utilise the transformational leadership model in order to sort out
specific leadership issues like improper or lack of communication after acquisition due to which
operational problem may also take place. It is necessary for leaders to become familiar with new
employees belongs to acquired company in terms of improving productivity of whole
organisation by conveying desired information accurately (Smith, 2017).
3.3.3 Ansoff matrix
The Ansoff matrix can be used by Pfizer in order to solve marketing issues in order to
maintain profitability of Pfizer company. It includes the problems of communicating about new
brand to employees and customers in order to make them aware about the same (Kasemsap,,
2018). Meanwhile, Ansoff matrix consist number of strategies such as market penetration,
product development, market development and diversification in which most suitable one can be
applied by Pfizer for solving marketing issues in proper manner. The proposed acquisition of
Pfizer and AstraZeneca can utilise strategy of diversification which focuses on entering a new
market with introduction of fresh products.
3.3.4 Maslow theory of motivation
The HR issues regarding proposed acquisition between Pfizer & AstraZeneca including
jobs loss and integration problems re required to be sort out because it may responsible for
increasing employee turnover. It is necessary to use Maslow theory of motivation in order to
encourage people to remain in the same organisation after acquisition (Silvius, 2018). However,
this theory consist hierarchy needs which can be used to motivate employees for gaining better
from the company. Meanwhile, it involves physiological needs, safety needs, love &
belongingness needs, esteem needs and self actualisations needs which can be used by
organisation to retain employees of both brands in order to gain maximum profits from proposed
acquisition.

3.3.5 Kotters step model of change management
The Kotters model is also supportive for to apply number of changes which are required
for proposed acquisition between Pfizer and AstraZeneca for achieving maximum profitability of
the same. This model consists eight steps which should be followed in correct sequence in this
acquisition of implementing necessary modifications in business for attaining desired outcomes
respectively (Gambles, 2017). However, it consists number of steps such as create a sense of
urgency, build a guiding coalition, form a strategic vision & initiatives, enlist a volunteer army,
enable action by removing barriers, generate short term wins, sustain acceleration and institute
the change. These are helpful to Pfizer & AstraZeneca conduct change management in
appropriate way for gaining better results of acquisition.
CHAPTER 4: Analysis and Findings
4.1 Swot of Pfizer and AstraZeneca
The strengths and weaknesses of Pfizer and AstraZeneca is necessary to be analysed in
order to make combine mission, mission and objectives for achieving maximum output by
proposed acquisition between them (Martens and Carvalho, 2016). It is necessary to set strategic
goals and objectives of acquisition fort attaining further growth and success of business with the
help of utilising strengths & weaknesses in proper way.
4.2 Transfomational leadership
The transformation leadership has a criteria of motivating staff members to create
innovative ideas and thoughts in order to improve effectiveness of operations for increasing
growth opportunities of business. Moreover, it has been analysed that Pfizer can adopt
transformational leadership style in respect of encouraging staff members of both organisations
for provide creative ideas which facilitate to grow & shape brand in future for achieving
maximum profits by proposed acquisition between Pfizer and AstraZeneca respectively (Rossano
and et. al., 2016).
4.3 Ansoff matrix
The Ansoff matrix can be described as an effective as well as efficient model which
provide support to carrying out change management in appropriate manner. It involves several
strategies including market penetration, product development, market development and

diversification. However, Pfizer can use diversification in order to supply products of U.S brand
in United Kingdom and sell goods of AstraZeneca in U.S.
4.4 Current position faced by U.K. pharma brand AstraZeneca and U.S. Brand Pfizer
Considering above literature review about problems faced by company in context of
acquisition related to operations and staff members is not favourable. This company has better
brand value in UK market due to which they are capable to earn much profits with the help of
heir effective operations (Niosi, 2017). However, this company is serving the products of
medicines at global level in order solve various health problems such as cholesterol reduction,
acid reflux, asthma, breast cancer, schizophrenia, and respiratory infections. They have effective
brand image in market through which they attract new customers and earn sufficient amount of
profit by selling their product globally.
At present, the initiative of other company to acquire the AstraZeneca create problem for
them by providing a proposal because the price of this project is not suitable for them. However.
The news of acquisition of AstraZeneca by other organisation impacts negatively on brand image
of firm which effects the on mind sets of customer and government agencies. In addition to this,
the executive of this company are discussing about the post acquisition effects because
acquisition by Pfizer is not suitable for overall operational activities and procedures as well. The
operations are main factors of company which are responsible conducting manufacturing and
other related aspects in order to supply required amount of product in market to fulfil actual
demands of customers (Lim and Suh, 2016). However, the completion of needs of clients on time
is essential in respect of retaining them with brand for a long time for ensuring long terms profits
of business accordingly. Consequently, post acquisition impacts negatively on operations which
facilitate to reduce effectiveness of resources and capabilities of organisation and the goal
increasing brand image & profitability will not be fulfilled.
At the other hand, it has been analysed about another challenge which would be faced by
AstraZeneca after acquisition is related to their human resources which is important for
conducting all the procedures in organisation on regular basis. It is necessary to retain better
skilled employees in company as they are responsible for solving problems immediately and
apply perfection in production. However, takeover by Pfizer results in large number of job losses
which facilitate the loss of effective talent and efficiency of operational activities (Taylor, 2016).
In addition to this, human resource is back bone of every business concern but huge loss of

previous employees working in AstraZeneca impacts on effectiveness of organisational
capabilities. Meanwhile, news of acquisition also harm the brand value of AstrazZeneca in
market which reduce the profit share (Eide and et. al., 2016).
The Pfizer company is pharma company which has a permanent strategy to conduct
acquisition with profitable brand to expand business along with increasing number of customers
and profitability at one stroke. They have already acquire other brands previously in terms of
increasing their brand value and profitability at global level which facilitate them to become
large pharma brand. However, in this context they have analyse one more company named as
AsytraZeneca for conducting an acquisition with them in order to enhance their business as well
as improving the profit margin. It has been analyse that the acquisition of selected company is
beneficial for Pfizer as they can reduce overall cost of production which provide support to boost
up profitability of organisation. It is founded that this project is helpful to terms of grabbing lrage
number of clients as the acquired firm is also deal at global levels then Pfizer will become largest
pharma company globally. In addition to this, it is determined that Pfizer can expand their
business and grab more profit share and competitive advantage in global market which helps to
boost up brand image. Pfizer did not have appropriate goodwill in market which can be improve
by acquiring selected company in order to gain satisfaction to customers to retain them with
brand for attaining better outcomes respectively (Lueken and et. al., 2014).
The Pfizer have goals to increase overall efficiency of operations and boost up
profitability with the help of completing acquisition with AstraZeneca. It include to take an
appropriate initiative to provide an effective proposal for convincing the executives of selection
company for accepting the same. Currently, it is founded that the situation of Pfizer is depends
upon the decision of acquisition because it is beneficial for them and controversial statement of
AstraZeneca will impacts negatively on brand image of Pfizer accordingly. It has been analysed
that Pfizer can acquire effective resources and competencies of selected company which render
help to increase profits share of organisation in global market successfully. Meanwhile, it is
favourable for Pfizer as it will provide support to bring better products in market according to
new demands of customer which helps to achieve growth of business (Kasemsap, 2018). At the
other hand, this acquisition is suitable for organisation in order to combine the drug development
pipelines and make is a method of continuing efforts in respect of boosting up efficiencies
through cost cutting which results into increase profit margin. Furthermore, it is analysed that

this acqusiitions is way for Pfizer to save on corporate taxes by moving combined company's
headquarters to the United Kingdom.
4.5 Change management including models to overcome issues
The change management is very important to make HR policies same for employees of
both organisation in order to retain them. It is necessary to create an innovative ideas and apply
desired modifications in new organisation in order to gain maximum benefits by completing
acquisition among Pfizer and AstraZeneca. Kotters model is appropriate for using in order to
conduct proper change management after acquisition. Transformational leadership theory is
required to be implemented for solving leadership issues.
Action plan
Gantt chart –

The action plan of acquisition between Pfizer and AstraZeneca has number of steps
which are required to be followed by then in order to gain better outcomes of acquisition project.
However, an acquisition consist certain aspects to be completed including motive development,
information gathering, proposition evaluation, proposition selection, acquisition and re-
evaluation. It involves several phases which should be considered to obey them and these steps
are explained below –
Phase 1 – This involves the criteria of carrying out an effective as well as efficient
assessments of present operations in order to apply required changes that are favourable to
proposed acquisition between Pfizer and AstraZeneca.

Phase 2 – The second step includes development of strategy and action plans to facilitate
acquisition in an appropriate manner.
Phase 3 – This consist to finalise and sign purchase agreement regarding proposed
acquisition.
Phase 4 – The next step assume control in order to monitor risks and solve them
immediately.
Phase 5 – This final step include the criteria to conduct post implementation of action
plans and follow up on respect of attaining desired outcomes of proposed acquisition.
4.6 The differential efficiency model
The acquisition of AstraZeneca by Pfizer has several problems which are required to be
sort out by implementing more effective as well as efficient model for making it possible
respectively. It include to make an appropriate strategy and utilise desired model in respect to
increase possibility of completing the proposed acquisition (Gilleard, 2014). However, it is
necessary to make an appropriate strategy for solving problems faced by acquired company in
terms of carrying out proposed acquisition. In addition to this, it is analysed that differential
efficiency model can be used to facilitate the acquisition of Pfizer and AstraZeneca for
enhancing business to improve profitability and brand image. Moreover, it is necessary to follow
appropriate model for merging resources and efficiencies of two leading companies in pharmacy
which results into grabbing more customers and profits share in global market. Furthermore, the
different efficiencies of two organisations can be merged in terms of making overall operations
and resources effective by producing perfect products for improving goodwill of new brand.
It has been analysed that Pfizer can gain much benefits by this acquisition where as the
AstraZeneca face several issues related to operations as well as human resources which are key
to business for achieving success. Meanwhile, it has been founded that differential efficiency
model states that differentiated efficiencies consisting two companies can adopt an acquisition or
merger to combine the both capabilities of new organisation. It include the criteria that more
efficient firm can acquire the less capable enterprise and realise gains with the help of boosting
up their overall efficiencies (Kumar, 2019). Moreover, it is determined in study that differential
efficiency model is likely to be a factor in acquisition carried out between companies which are
related to same or relevant industry. It has been found that appropriate model or theory is
required to be used for completion of acquisition of AstraZeneca by Pfizer respectively.

CHAPTER 5: Conclusion
5.1 Solutions to the problem
The acquisition of AstraZeneca by Pfizer create several issues related to human resource
and operations of acquired company which are required to be solved for completion of this
proposed project in proper manner. It is necessary to apply the solution including use of an
appropriate approach and make effective plan to conduct acquisition by reducing problems of
operations (Escaping, 2014). However, acquisition strategy is very important which has several
main factors such as business strategy, contracting strategy, major contracts, technical data
management and sustainment. However, business strategy includes maintaining effectiveness of
operations as it mandatory for running organisation successfully. Contract strategy consist
favourable points of both companies by acceptance of respective executives and ensure security
& management of data in correct way.
5.2 Conclusion
From the above report, it has been analysed that acquisition was proposed by a global
levelled pharmacy company to another relevant company of other country. It include the strategy
of an acquirer company to acquire other firms in order to expand business along with attaining
better profitability by improving efficiencies. However, the given case study is analysed with
help of using secondary sources of information which facilitate to gain desired findings of the
investigation. In addition to this, it consist problem in proposed acquisition including that it
would impacts negatively on operations as well as large number of job losses. Moreover, the
differential efficiency theory can be applied to complete acquisition between two leading
companies of pharmacy at global level.
5.3 Recommendation
Considering above discussion, it has been recommended that selected two leading
companies should use appropriate approach and make an appropriate plan of action for
completing acquisition properly. It includes analysing the problems and benefits of both
organisations to make appropriate contract so that new company would become more profitable
and successful. However, it is suggested that differential efficiency model is required to be used
for completing acquisition correct way which is suitable for both business concerns.
Additionally, it is recommended that Pfizer should focus on problem of AstraZeneca and provide

accurate and effective proposal of this project to gain positive response in order to improve profit
share in global market.
5.4 Scope for further research
The above conducted investigation is helpful to analyse actual problems which are take
place for carrying out acquisition of two leading pharmacy companies properly. It is evaluated
that Pfizer can gain a lot of profit whereas the AstraZeneca would face issue regarding their
operations and loss of jobs of staff members which is not favourable. However, the scope of
further research is to determine appropriate way to sort out problems faced by acquired firm and
acquisition can be completed in correct manner. It is suitable to analyse solutions to make this
acquisition possible in an effective way.
5.5 Limitations of the research
The limitations of this research are that the duration of time for carrying out overall
investigation which may effects the results. It include the utilisation of secondary sources
including articles which are not sufficient as actual information has not taken from relevant
individuals and that may impacts on outcomes of research. It includes that due to less duration, it
is not possible to collect much information and use limited articles to gain findings.

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APPENDICES