Strategic Management and Sustainability in the UK and Global Pharmaceutical Industry: A Case Study of AstraZeneca

This report evaluates the UK and global pharmaceutical industry and the competitive environment of AstraZeneca. It includes frameworks such as PESTLE analysis, SWOT analysis, Porter's Five Forces model, and industry life cycle analysis. The report also discusses the impact of COVID-19 on the industry and AstraZeneca's response to it.

Strategic management
and sustainability
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Table of Contents
Introduction......................................................................................................................................3
Main body........................................................................................................................................3
Evaluate with evidence the UK and global pharmaceutical industry .........................................3
Evaluate with evidence the competitive environment of AstraZeneca.......................................7
Conclusion.......................................................................................................................................9
References .....................................................................................................................................10
Books and journals ...................................................................................................................10
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Introduction
Strategic management is a process of managing resources of organisation for aiming of
achieving organisational goals and objectives in a most effective manner. There could be several
activities which are being involved in strategic management. These are identifying and
evaluation of competitive environment, establishing objectives of businesses and analysing of
various internals and external factors which can impact business environment. The organisation
should have to make sure about using an effective business strategy within an business
environment (Delahay, de la Fuente, and Breed, 2021). In current era, covid pandemic is just
impacting badly the functions and activities of businesses. The company selected in this report is
AstraZeneca. It is a British multinational pharmaceutical and was founded in a year 1999.
company is dealing in various products of diseases like Infection and respiratory, inflammation,
cardiovascular and gastrointestinal etc. this report includes some of a frameworks which helps
the organisation in analysing internal and external factors which impact business environment of
AstraZeneca.
Main body
Evaluate with evidence the UK and global pharmaceutical industry
AstraZeneca is one of the British Swedish multinational pharmaceutical and
biotechnology company. It was founded in the year 1999. company is serving globally and
having more than 76,100 employees working currently. Company is dealing in various
pharmaceutical products of many of diseases. During a time of covid pandemic, company is
affecting in so many ways. As this is a challenge which is can affects demands and response of
customers as well (Shephard, Zambre, and Snell‐Rood, 2021). This is not just impacting
scientific community but also it is affecting whole pharmaceutical industry, governments and
organisations which are working in this across globally. Given below is a frameworks which
helps in analysing internal and external analysis of business environment.
PESTLE analysis
Pestle analysis is a model which is used by companies and organisation in order to
analyse external environment of a business. This could impact positively and negatively to the
business environment. This includes certain factors like political, economical, social,
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technological, legal and environmental factors which could impact positively and negatively the
business environment. These are discussed below:
 Political factors : Political factor is the first factor which is impact the business
performance internally. As AstraZeneca is operating globally in various other countries to
explore their business in different areas (Vijayakumar, Nalini, and Hill, 2021). So for that
it has to make effective contacts with political parties. This factors includes various other
factors like trade restrictions, political stability, or instability, government policies and
frameworks etc. in case of pharmaceutical companies, government is pressuring on prices
because they wants to provides US and Europe citizens to provides medicines at lower
prices.
Positive impact : Brexit has helped AstraZeneca in surviving in competitive market while
having stable profitability within a market.
Negative impact : Due to political pressure, government is forcing to sell the medicines at lower
prices to customers. This will decrease the profitability of organisation.
 Economical factors : Economics factors is impacting a function of business in negative
and positive manner. It includes inflation rate, economic trends, unemployment rates,
international trade and customer income etc. this pandemic has impacted every one life in
badly way. As most of the people are left from job (Cowan, Callan, and Nimmo, 2021).
As government has made certain restriction which has lead to shutting down in
companies and this has impact overall profitability of organisation.
Positive impact : Government has made various rules in relation with Pharmaceutical industry
such as to reduce cost of research and development which helps in gaining opportunity to gain
more information.
Negative impact : in covid pandemic, AstraZeneca hand provided medicines at very lower
prices which has decreased their profitability.
 Social factor: Social factor includes customer taste and preferences, shared beliefs and
values, attitude and population growth etc. as citizen of UK are more concerned about
healthy lifestyle because they are mostly adults and middle age. So they are searching for
more healthy products. During this pandemic, people are more concerned about their
health and shifting towards healthy products which can increase their immunity power.
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Positive impact : in covid pandemic, people moves to healthy products and medicines which
boost their immunity so this has created opportunity for company.
Negative impact : On the other hand, some of the news such as rumours which could affect
customer purchasing behaviour and they stop purchasing products from company.
 Technological factor : Technological factors could affects the performance of businesses
in most effective manner. Because this is providing chances of expansion through
automation and innovation and other development of technologies. In context with
AstraZeneca, they are taking various opportunities while updated their technologies and
making use of latest technologies and method which helps them in saving time and
efforts (Toda, Chiller, and Jackson, 2021). Company is updating their profiles on social
media platform and making promotion through various digital media channels
effectively.
Positive impact : AstraZeneca could promote their products through digital media platforms and
this will helps them in saving and reducing cost of products and medicines.
Negative impact : in direct marketing, organisation is getting low responses and also sometimes
company face false rumours. This could impact their position in market negatively.
 Legal factor : Government has made a lot of rules and regulation which are to be
followed by various organisation operating in a market. It includes various laws such as
tax and discrimination, customer protection law and safety and trade restrictions.
Government have made various restriction on pharmaceutical industry. In context with
AstraZeneca organisation, there could be various restriction are made which is to be
followed by them and which could impact their business environment during the time of
Covid pandemic. As company is involving in providing vaccine of Covid 19 virus so they
are following all safety and health rules.
Positive impact : In context with AstraZeneca, government is providing and promoting their
vaccine which is being provided to customers (Lin-Schilstra, and Ingenbleek, 2021). This creates
opportunity for them.
Negative impact : Changes in legislation is impacting business internally an their functions as
well.
 Environmental factor : company is working with the objectives of “Zero carbon
ambition” that is facilitating AstraZeneca organisation to perform their function in most
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effective manner. Company is adopting waste management and CSR that helps in
retaining of their business for long in a market.
Positive impact : Use of CSR and waste managements is helping organisation in creating
opportunity for enhancing their brand image in front of customer and also this helps them in
building trust among customers (Viliam Záthurecký, and Palyzová, 2021).
Negative impact : The objectives of “Zero carbon programme” has forced organisation
in taking various radical actions that could bring impact negatively on the function of their
business performance.
SWOT analysis
SWOT analysis is a framework which is being utilised by organisation in order to analyse
their internal environment which can affects their business performance. This includes four
components. These are strength, weaknesses, opportunities and threats. In context with
AstraZeneca organisation, they are analysing their internal environment through this framework.
This helps them in improving on their weakness and gaining competitive advantage as well.
Strength Weaknesses
 AstraZeneca is a biggest British-
Swedish multinational pharmaceutical
and biotechnology company which is
consisting of various strength which
differentiated them from its competitors
(Alwani, 2021).
 At the time of covid 19 pandemic, they
have created a vaccine of virus which is
being helpful for customers.
 Company is having strong distribution
network that helps in reaching towards
potential market by offering a vaccine
of covid 19 virus.
 The major strength of organisation is
high level of customer satisfaction,
 Company is invested a large amount in
research and development departments
in identifying customer requirements as
compared to its competitive firms. This
amount will be resulting in reduction of
their profitability.
 AstraZeneca organisation is dealing in
such a complex industry in which they
faced certain problems relating to
customer taste and preferences and
government regulations.
 Company cannot able to forecast a
demands and further they did not have
goof financial planning.
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brand reputation and effective
performance in new market.
Opportunities Threats
 As by adopting latest and updated
technologies, company could be able to
increase their demands in front of
competitors as compared to
competitors.
 Company is adopting online channel in
order to promote their products and
services so to create opportunities and
also consist of stable cash flows.
 By reducing cost of transportation will
be resulting in reducing shopping prices
and overall cost of products and
medicines as well.
 The major threats for a company is that
there is an intense competition with
AstraZeneca organisation. As all
companies are trying to reduce their
cost in order to attract customers
towards their brand (Bendra, 2021).
 Next is facing lawsuits, shortage of
skilled workforce will be resulting in
serious threats.
Evaluate with evidence the competitive environment of AstraZeneca
Porter five forces model
This is a model which is conducted by organisation in order to analyse their external
environmental and their competitive forces that could impact their business performance
(Clawson, 2021). Porter five forces model of AstraZeneca organisation is discussed below:
 Bargaining power of suppliers: In this bargaining power of suppliers is low of
AstraZeneca organisation because these healthcare industry is purchasing their raw
material from supplier and supplier are not in condition to controls prices. As there could
be low switching cost because buyers can easily find suppliers whoa re providing them
quality of materials. This organisation is creating effective supply chain with suppliers
and develops gain material on a definite time period.
 Bargaining power of buyers : Now a days buyers are lot demanding. They are searching
for new every time. And should have to purchase best with paying minimum amount of a
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products. In this pharmaceutical industry, number of suppliers are more than buyers so
that is why they do not have a control on prices. There could be alternative products are
available in this industry (McDowall, 2021). So bargaining power of buyers in this is low
of this organisation. AstraZeneca is creating large customer base and creating innovation
in their products as well.
 Threats of new entrants : as entrants of new organisation becomes new innovation. But
on the other hand, it brings difficulty to existing organisation. Being in a pressure for new
entrants, AstraZeneca have to also lower its prices of products and reduce their other cost
of operations. Organisation should have to adopt various strategies and they have faced
certain challenges are coming. So this could be attract new customer and they brings
more to the organisation.
 Threats of substitute products : Threats of substitute products is low. In pharmaceutical
industries many of the products are having certain substitutes of their products. But these
substitutes are of higher prices as compared to the original. AstraZeneca focus on
providing quality of products to the customer so that they could not move to substitute
products. So that is why there is a threat of substitute products are low in a market.
 Rivalry among existing competitors: Rivalry is impacting the performance of business
in most effective manner and also it is impacting the profitability of business.
AstraZeneca company is investing large amount on its functional and activities are being
performed in business environment which could helps them in gaining higher competitive
advantage (Pereira, 2021). AstraZeneca creates a sustainable differentiation an also it
helps them in enhancing their market share.
Industry life cycle analysis
This is a framework which is used by companies in order to analyse their business
functions. This consisting of certain stages such as introduction, growth maturity and decline
stage. The covid vaccine is supplied by both AstraZeneca and Oxford which is across the globe.
Below is a industry life cycle of AstraZeneca:
 Introduction phase: this phase includes marketing activities which are coming before
launching of a product in market. AstraZeneca has collaborated with Oxford for aiming
of providing vaccine of covid virus to a general public and also check its effectiveness.
This is apply for gaining approval of government on a particular vaccine in several
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nations. AstraZeneca has gained an authorization in selling of their products to various
nations and countries.
 Growth phase: As in context with vaccine provided by AstraZeneca and Oxford, its
demands is being raised by customers (Malvestiti, Esteves. and Dandolini, 2021). So this
becomes a growth rate for a company as customers are taking interest in their products
and services provided to them at a reasonable rates. AstraZeneca is more concentrating
on reducing the side effects from vaccine and trying to focus on influencing people to get
fully vaccinated. As by increasing in patients of covid, the demand for vaccine is more
and this becomes a growth stage for a company.
 Maturity phase: IN this stage, a demand of covid vaccine is stable at a particular time
and government are focusing on reducing a cost of vaccine to earn more profit and so that
it could be more liked by customers. As in this stage organisation is facing no profits no
loss. As there could be certain side effects which are coming such as blood clotting, fever
etc. so in this stage company gains market positions.
 Decline phase: This is last stage of industry life cycle. As in this organisational
efficiency get reduced and also there could be reduction in demand of vaccine
(KardanMoghaddam, Rajaei, and Fatemi, 2021). As in this there is a reduction in sales
volume and there could be low profitability of company. From the view point of
government, most of the nations said they are fully vaccinated so there could be decline
phrase of pharmaceutical industry. In this AstraZeneca reduce their production and
searching for right time to gain competitive advantage again.
Conclusion
From the above can be concluded that companies are implementing various strategies in
order to achieve their organisation goals and objectives. This helps in identifying their position in
competitive market. Company is conducting PESTLE and SWOT analysis that helps in
formulating various strategies in order to examine the factors which could affect business
performance. Further, there is a use of porter five forces and industry life cycle which helps them
in adopting various strategies that could be used to develop new opportunities for them and they
could compete with their competitors as well.
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