Strategic Management and Sustainability in UK and Global Pharmaceutical Industry

Strategic management
and sustainability

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK ..............................................................................................................................................3
Evaluation of UK and Global Pharmaceutical industry..............................................................3
Evaluation of competitive environment of AstraZeneca............................................................7
CONCLUSION .............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Strategic management is defined as the process of managing organisational resources for
the purpose of achieving defined goals and objectives in efficient manner. There are various
activities are involved in strategic management such as establishing business objectives, identify
and evaluate competitive environment, formulate strategies, analyse internal factors of business
and ensure the management role in business strategies across the organisation. The pandemic of
Covid-19 impacts business performance and functionality across the globe (Albareda and
Hajikhani, 2019). In this report the chosen organisation is AstraZeneca which is British
multinational pharmaceutical as well as biotechnology organisation founded in the year of 1999.
Headquarter of respective organisation is situated in Cambridge, UK. Organisation provides
variety of products that includes cardiovascular, inflammation, gastrointestinal, infection and
respiratory. AstraZeneca has recently developed Oxford Covid-19 vaccine. In this report Pestle
analysis and swot analysis in the context of AstraZeneca is covered. Furthermore, competitive
environment of respective organisation that includes porter's five forces and industry life-cycle is
mentioned in this report.
TASK
Evaluation of UK and Global Pharmaceutical industry
PESTLE analysis
PESTLE analysis is defined as the strategic framework used by the organisation for the
purpose analysing external environment factors which impacts business performance in positive
as well as negative manner. Factors of Pestle analysis in the context of AstraZeneca are
mentioned below:
Political analysis: Political factors plays important role in in analysing the factors that
impacts business profitability and performance in competitive business environment. As
AstraZeneca organisation conducts its operations in various countries and explore business in
various political environment. In political environment various factors such as political stability
or instability, government policies, trade restrictions and foreign trade policy are included that
affect business functionality (Atiku and Abatan, 2021). Organisation is getting affected by
government policies. Pricing pressure on pharmaceutical products affect business in Europe and
US because government is trying to provide medicines to citizens at low prices.

Positive impact: Brexit facilitates AstraZeneca to survive in competitive environment with stable
profitability through analysing the effective market trends.
Negative impact: As per the political pressure, organisation al profitability is being affected
because business provides medicines to customers at lower prices during the pandemic of covid-
19.
Economic factors: Economic factors affect business functionality and profitability in
positive as well as negative manner. Economic trends, international trade, inflation rate,
unemployment rate and consumer possible income is included in economic factors. The
pandemic affect the lives of every individual in various manner (Bodhanwala and Bodhanwala,
2018). As there are various restrictions are imposed by the government because of that industries
and business are shutting down , impacts overall functionality of business.
Positive impact: Government has formulated various rules for pharmaceutical industry that helps
AstraZeneca to survive in business environment. Low cost of research and development that
capable business to gain all information of economic condition and help to survive in downturn
condition as well.
Negative impact: Due to the impact of Covid-19, economic downturn is faced by the health and
other business sectors. AstraZeneca provides its pharmaceutical products at lower price for the
purpose of surviving as well as capturing the eyes of customers that reduces the profitability
ratio. At the pandemic time consumer possible income is also low that negatively impacts
business performance.
Social factors: In social factor various factors that affect business are included that are
attitude, shared beliefs, population growth, and customer life style trends are included. As people
of UK specially young and middles aged adults are more conscious about healthy lifestyle
(Cokins and Căpușneanu, 2020). The pandemic of Covid-19 affect the life of everyone and make
them more conscious about their immunity as well as compile them to take vaccination doses.
Positive impact: In the pandemic people starts regular practising and haves healthy chooses that
enhance their immune system. This attitude of customer's facilitates AstraZeneca organisation to
increase sales of pharmaceutical and other products that intimately enhances organisational
profitability ratio.