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

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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Strategic management
and sustainability

Table of Contents
INTRODUCTION ..........................................................................................................................3
MAIN BODY...................................................................................................................................3
External environment analysis....................................................................................................3
Competitive environment............................................................................................................8
CONCLUSION .............................................................................................................................10
REFERNCES:................................................................................................................................11
Books and Journals:..................................................................................................................11
Online........................................................................................................................................11

INTRODUCTION
Strategic management refers to the process in which management is require to make
effective procedures, objectives and goals for a company in order to enhance the competitive
ability of employees and gain competitive advantage in the market (Makadok, Burton and
Barney, 2018). An organisation is required to have effective strategies so that they can be able to
make effective use of their resources. This requires a company to use their resources sustainably
which will help them to enhance their profitability. This report is going to explain about the
strategic management and sustainability in AstraZeneca Plc. It is a multinational company
having their headquarters in Cambridge Biomedical Campus in Cambridge, England and was
founded in the year 1999. It is a pharmaceutical and biotechnological company which deals in
several products to provide treatment for the major disease like oncology, cardiovascular,
gastrointestinal and many more (AstraZeneca PLC PESTEL Analysis, 2018). This report is going
to contain discussion related to global pandemic and its impact on pharmaceutical industry.
There is use of numerous models that help to strategically analyse the external business
environment.
MAIN BODY
External environment analysis
It is vital to note that Covid-19 has impact on every business organisation. Each and
every company should work in a proper manner so as to deal with the environment. The external
environment is dynamic and huge so a business has to know about the changes taking place in
external environment (Mease and et.al., 2019). It is seen that there are numerous factors in
business environment that influence the working of company. It is seen that AstraZeneca Plc.
Has its operations in various parts of world. It has big contribution in developing Oxford-
AstraZeneca COVID-19 vaccine. The mission of company is to turn the ideas into life changing
medicines that improve life of patient and benefit of society. So, to understand the external
environment, PESTLE Analysis will be helpful.
PESTLE Analysis
It is one of the famous tool that is used to study the external environment of an
organisation. It is seen that there are huge number of challenges that are faced by AstraZeneca
Plc. So by studying its external environment it will be easy for the management of company will

be able to formulate strategies that will help them to deal with the challenges. There are certain
factors such as political, legal, social, technological, economic and environmental that influence
the performance of business organisation. PESTLE Analysis in relation to AstraZeneca Plc. Is
discussed below:
Political factors: Political factors include tax policy, trade restrictions environmental
regulations, and tariffs, reform, also political stability. There is great role of government in
political factors as they can change the policies anytime (Batraga and et.al., 2020). In respect to
AstraZeneca Plc. The organisation is operating in healthcare sector in various countries so they
have to face risk of political conditions of various nations. It is seen that AstraZeneca Plc.
Checks various factors while entering a new market. The company check the rules and
regulations formulated in relation to healthcare sector and then follow all of them to operate
smoothly. The trade relations and tariffs are also analysed. It is analysed that AstraZeneca Plc
makes strong strategies that help them to work by following the health and safety rules and other
important aspects such as pricing regulations, taxation etc. in order to achieve success.
Economic factors: There are various factors that are included in economic factors such
as economic growth/decline, exchange, interest, inflation as well as wage rates, credit
availability, and cost of living. All these factors have influence of the operations of the
organisation. In relation to AstraZeneca Plc, they are able to earn good profits and also
contributes to economy of nation. It is seen that the company gets benefits of various government
initiatives in various of healthcare sector. They work in an effective manner and provide
employment opportunity to various people due to its large scale operations. Also, the company
spends huge money in research and development and work on providing the best to society
(Nádasdi and et.al., 2021). Also, it is essential to consider the situation of Covid-19. The lock
down situation in the country was problematic. But, at the same time AstraZeneca Plc operating
in pharmaceutical industry has not faced any loss. They were able to perform effectively by
gathering opportunities and that enhanced sales. By spending good amount on research and
development and were able to develop vaccine.
Social factors: Society is one of the major part of economy. Each and every business
works to satisfy the customers that are important part of society. There is need to focus on needs
and wants of society and provide the goods accordingly. There is rise in diseases and that leads
to increase in diseases. AstraZeneca Plc tries to understand the attitude and beliefs of society and