1INTERNATIONAL BUSINESS STRATEGY Company Overview AstraZenecaisoneofthebestAngloSwedishglobalPharmaceuticaland Biopharmaceutical Company which is known for having its headquarters in Cambridge which is located in United Kingdom. The business organization is mainly led by various types of innovative designs, technological innovative devices, it is also known for delivering various types of electronic devices to other companies in order to proceed with the check up and serve millions of patients worldwide(AstraZeneca Annual Report 2019). The company and business organization was found out in the year 1999 by the merger companies of Swedish Astra AB and the Bitish Zeneca Group which as on the present date of April 2018 had a market capital of $90.07 billion. Regarding the product portfolio it can be said that it consists of medicines which are used for curing cancer, cardio vascular diseases, respiratory diseases and various types of infection and vaccines(AstraZeneca Annual Report 2019). The mission of the company is to turn various types of business ideas in to life changing machines which is dedicated to improve the life of the patient thus benefiting society. Critical Analysis of Astra Zeneca’s External Environment with PESTLE analysis Political factors paly a very significant role in determining the factors which can be implemented by the company to get a long term benefit. The company is functioning in the health care sector therefore it can be said that it is exposed to different types of political environment across various types of countries. Therefore in order to achieve success in the health care sector it should thus try to diversify the risks according to the political environment. The following are the factors which can help the company to regain the political factors in order to
2INTERNATIONAL BUSINESS STRATEGY operate smoothly. The company faces issue with the antitrust laws related with the health care, the company also faces various types of pricing regulations from the government. There are countries which impose high tax rates and as well as minimum amount of wage and overtime policies. The Economic factors are the macro environment factors that mainly include the factors such as inflation rate, savings rate, interest rate, foreign exchange rate, and the economic cycle of the company. However it can be said that the company should try to analyze the economic system the country is known for operating with and determine the exchange rate offered by the country for trade preferences. However the company still faces issues with the skill level of the workforce involved in the countries, the education level of the country and labor cost and productivity based on the economic conditions. Social Factors which mainly includes the culture of the society in which they are working with. According to the author (Nelson, Marrie andCulpeppe 2019)shared beliefs, attitude and willingness of the population greatly affect the performance of the company in the particular area. Few of the social factors which are known for affecting the company as a whole are the demographics, skill level of the person, the class structure, hierarchy and power structure in the society. The educational level in the society and the attitude of the people to the company (Conesa, T., 2015). Technological Factors are known for affecting the company as because it is fast disrupting various types of business across the globe. According to the author Marulkar (2017) the technological factors has been really fast in transforming the business. The technological factors which are known for affecting the company are the recent technological development in the health care industry, the impact on cost structure after implementing the technological
3INTERNATIONAL BUSINESS STRATEGY devices. It also creates an impact on the value chain of the company and the cost of the medicines and services are likely to get affected (Marulkar 2017). Environmental Factors tend to differ according to the different market trends which later on impact in profit maximization of the company. Therefore the environmental factors which are known impacting the business are the environmental and liabilities for example Texas and the US has different policies and lawsuits in the case of environmental mishaps. The attitude of the government in terms of supporting the company towards the achievement of attaining the renewable energy sources among the competitors in the business. The waste management system in the particular country and government related laws on the causes of environmental pollutions. Legal factors which are known for affecting the company are the anti- trust laws in te health care management and overall country in which they are operating with. The employee discrimination laws, the copy right and patient application laws. The company also faced issues with the data protection laws in the country which include the health and safety of the employees, the employment laws and consumer protection laws on Electronic commerce (O'mahony, Edman and Kajanus 2018). The Strategic issues which needs to be achieved for the business in short term are lack of skills and in depth knowledge among the employees who are working in different area of the company as a whole. Also the company needs to address the lowered condition in the production of various type of equipment which are manufactured under the company. Along with these the company should also try to achieve the product quality problems which has been identified in the present date (AB, 2016).
Paraphrase This Document
Need a fresh take? Get an instant paraphrase of this document with our AI Paraphraser
4INTERNATIONAL BUSINESS STRATEGY The Strategic issues which needs to be achieved for the business in medium term are revising the health and safety policies which are issued by the company to arrange a service contract. The company also needs to address the quality control programs which has been one of the most important concern for Astra Zeneca in the present date (Snell, and Yemen, 2017). The Strategic issues which needs to be achieved for the business in long term business are the competitive structure of the company in the social level, economic level, political and environmental level. The company should thus try to address these by developing various types of strategies in order to be sustainable in the long run of the company by implementing various types of strategic measures(Dertinger, Bielasa and Doherty 2019). AstraZeneca’smajoropportunities,threats,strengthsandweaknesses analysis Strengths of the company mainly includes the highest level of customer satisfaction where the company is fully dedicated in providing its customers with relationship management (Conesa, 2015).It also has a successful record of product innovation throughout the years with successful execution in new projects every six months. The company has a strong distribution network over the globe with all the products and services offered. It has a strong brand portfolio where according to the authorBauer, (2016)the strong brand portfolio help the organization to expand in any location with its product categories. It has its highly successful marketing strategies which mainly include the Go with the market strategies for all its products. Weakness of the company mainly include the gap in the product ranges offered to the customers in the market. There is a lack of choice and a huge gap between the high priced and low priced products offered by the companyBechtold, Fastnacht and Lennon, 2018). The
5INTERNATIONAL BUSINESS STRATEGY marketing of the products are also one of the greatest weakness as because it faces huge amount of problem with the marketing sector of the company. The brand has to create a good value positioning in order to market its products as a whole. Also it has been reported that the company does not have a proper financial planning system which does not help the company to efficiently work with available resources and manage them. Opportunitiesforthecompanymainlyincludestheavailabilityofthenew technologies in practice to different types of pricing strategies in the business to operate easily with the competitors. Also in the date the decrease in the cost of transportation will really help the business to trade out the products to other countries where they are remotely performing with the services. The company can also derive new customers from the online channel as because most of the competitors are investing in the online platform to get a boosted up amount of customers. Also due to low GDP in the developing countries the government is allowing business to proceed which is a good opportunity to grab (Rascol and Shaw, 2018). Threats which are faced by the company is with the growing strength of local distributors and much demanding payment margins. The faster development of new technologies over the years from the competitors is a serious threat faced by the company. Also the shortage of skilled labor is a big issues with the company in present date. Strategies AstraZeneca can draw upon in addressing the strategic issues are like providing employee training courses, equipment servicing measures and quality fix training will be able to boost the employees and help company by managing the short term goal. These strategies set a stage to solve the longer term comprehensive problems.
6INTERNATIONAL BUSINESS STRATEGY The strategies for the medium term are like implementing various types of policies and measures in order to create health and safety awareness. It will strengthen the quality control measures of the company. Long term strategies will be like developing business strategies undermining the political, environmental, technological and social factors affecting the company.
Secure Best Marks with AI Grader
Need help grading? Try our AI Grader for instant feedback on your assignments.
7INTERNATIONAL BUSINESS STRATEGY References Bauer, S., 2016. Development of a Growth Strategy for Small-and Medium-Sized Enterprises and Derived, Selected Recomendations for Action: Principles, Concept and Methodology by Means of a Practical Example. Bechtold, M.K., Cahill, J.K., Fastnacht, K.M., Lennon, K.J., Liepold, B.H., Packhaeuser, C.B. and Steitz, B., AstraZeneca UK Ltd, 2018.Immediate release pharmaceutical formulation of 4- [3-(4-cyclopropanecarbonyl-piperazine-1-carbonyl)-4-fluoro-benzyl]-2h-phthalazin-1-one. U.S. Patent Application 15/707,376. AstraZeneca Annual Report and Form 20-F Information 2019. Human medicines European public assessment report (EPAR): Pandemic influenza vaccine H5N1 AstraZeneca (previously Pandemic influenza vaccine H5N1 Medimmune), pandemic influenza vaccine (H5N1) (live attenuated, nasal), Influenza, Human, Date of authorisation: 20/05/2016, Revision: 3, Status: Authorised. Conesa, T., 2015. Technology Analysis & Strategic Management.Routledge, 2. Dertinger, S.D., Totsuka, Y., Bielas, J.H., Doherty, A.T., Kleinjans, J., Honma, M., Marchetti, F., Schuler, M.J., Thybaud, V., White, P. and Yauk, C.L., 2019. High information content assays for genetic toxicology testing: A report of the International Workshops on Genotoxicity Testing (IWGT).MutationResearch/GeneticToxicologyandEnvironmentalMutagenesis,847, p.403022. Kristek, J., 2017.SWOT analýza společnosti ZDV Krchleby(Bachelor's thesis, České vysoké učení technické v Praze. Vypočetní a informační centrum.).
8INTERNATIONAL BUSINESS STRATEGY Marulkar, K., 2017. Future of pharmacovigilance (PV) outsourcing in India.The Pharma Innovation,6(3, Part C), p.181. Nelson, L.M., Wallin, M.T., Marrie, R.A., Culpepper, W.J., Langer-Gould, A., Campbell, J., Buka, S., Tremlett, H., Cutter, G., Kaye, W. and Wagner, L., 2019. A new way to estimate neurologic disease prevalence in the United States: illustrated with MS.Neurology,92(10), pp.469-480. O'mahony, G., Kossenjans, M., Edman, K., Kajanus, J., Hogner, C.A., Cornwall, P. and Turner, A., AstraZeneca AB, 2018.Benzoxazinone amides as mineralocorticoid receptor modulators. U.S. Patent 10,017,502. O'mahony, G., Kossenjans, M., Edman, K., Kajanus, J., Hogner, K.A., Cornwall, P. and Turner, A., AstraZeneca AB, 2016.Benzoxazinone amides as mineralocorticoid receptor modulators. U.S. Patent 9,394,291. Snell, S.A. and Yemen, G., 2017. AstraZeneca: Transforming How New Medicines Flow to Patients1.Darden Business Publishing Cases. Walsh, R.R., Krismer, F., Galpern, W.R., Wenning, G.K., Low, P.A., Halliday, G., Koroshetz, W.J., Holton, J., Quinn, N.P., Rascol, O. and Shaw, L.M., 2018. Recommendations of the global multiple system atrophy research roadmap meeting.Neurology,90(2), pp.74-82.