Strategic Management and Sustainability in UK Pharmaceutical Industry

This report evaluates the global pharmaceutical industry and the country UK along with frameworks to analyze the industry and sector critically at large scale. Competitive environment of AstraZeneca is also analyzed and evaluated along with the identification of the external business environment on significant basis.

Strategic Management and
Sustainability
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Table of contents
INTRODUCTION......................................................................................................................... 3
MAIN BODY................................................................................................................................ 3
1. Evaluate UK and pharmaceutical industry and use frameworks to analyze industry and
sector....................................................................................................................................... 3
2. Competitive environment with the context of AstraZeneca...................................................7
CONCLUSION........................................................................................................................... 10
REFERENCES.......................................................................................................................... 11
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INTRODUCTION
Strategic management is the process of setting procedures and objectives which makes the
company or organization competitive (Kools and et.al., 2020). AstraZeneca is a British –
Swedish multinational pharmaceutical and biotechnology company which deals in the products
and services for the major diseases by providing medicines to the people.
The report will evaluate the global pharmaceutical industry and the country UK along with
frameworks to analyse the industry and sector critically at large scale. Along with this,
competitive environment of AstraZeneca will also be analyzed and evaluated along with the
identification of the external business environment on significant basis. Thus, the
pharmaceutical industry helps in evaluating the scale through which all the aspects of providing
the medicines and drugs in market for the convenience of customers when in need and
requirement. The pharmaceutical industry helps in knowing what is scale through which all
aspects can be taken into consideration for creating market to be profitable.
MAIN BODY
1. Evaluate UK and pharmaceutical industry and use frameworks to analyze industry and sector
The pharmaceutical industry is the industry which develops, discovers and produces the
drugs which are sold in the market for the use of the patients with the aim to cure them, alleviate
the symptoms and vaccinate them. Pharmaceutical companies are deals in making and
producing the medicines which are available in the market for which all the aspects of how the
raw materials and the companies are taking concern in which how effective and efficient the
medicines are provided to the patients or are taken by the customers (Kazzazi and et.al., 2017).
The pharmaceutical industry in UK directly employs many employees and individuals who
contribute in framing the scale of how the pharmaceutical business is taking place and in this
manner it helps the employees and the customers who are in taking the medicines. The
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pharmaceutical products and services are surplus in UK measured in billion. The UK is home to
AstraZeneca which is the fifth largest pharmaceutical company in the market share. There is
major presence of the pharmaceutical companies in UK who are inclined towards making and
developing the scale of producing the most effective medicines. One in the five of the world’s
biggest – selling prescription drugs were developed in the UK (Mulinari and et.al., 2018). This is
the major of consideration in which all the aspects of having the scale through which the
pharmaceutical industry is taking the concern of how the medicines are prepared and in this
manner the most important aspect which is the is effective in this form is that there is immense
growth and development of the industry which is running in UK. This is the major form in which
all the aspects of the industry is in contrary to the effective and efficient ways through which
medicines are made available to the customers and the patients (Ozieranski and et.al., 2019).
The pharmaceutical industry is the biggest player in UK. The annual turnover of the
pharmaceutical goods in UK was over 42 billion British pounds which involved the gross
revenue of the retail sales of the pharmaceutical products which are amounted in billions. The
pharmaceutical industry in the sector employs 63,000 people and generates the market value of
around 21 Billion Pounds. The pharmaceutical industry in UK is growing and developing with the
growth and developing in the nations which is happening at large scale and this is the main
thing which is considered at large scale. Amid the COVID – 19 cases, pharmaceutical industry
in UK has grown and expanded on diverse scales through the great innovation and
collaboration which helps in knowing and creating the value through which all the aspects of the
industry are growing and expanding the scale of medicine in UK (Xu, 2017). The pharmaceutical
industry has a long track in which the medicines are being made for the customers and the
patients who are in need and this has provided great scale of contribution to the society and the
people who are in need and were during this pandemic. A dynamic supply chain and the
government support is being provided to the pharmaceutical industry which helps in providing
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the changes which are to be taken and this helps in creating the rules and regulations at large
scale.
Thus the pharmaceutical industry helps in providing the scale to the UK through the best
medicines which are being provided at large scale (Morris and et.al., 2020). This is the means
through which all the aspects of knowing and creating the value of how the things are taken into
consideration and this has brought growth and development through which all the aspects are
taken into consideration and this brings the changes through which developmental and the
societal concepts through which the aspects are taken into consideration in which all the basic
information and the data which is being collected in the pharmaceutical industry is taking the
base through which all the concerns are being provided and this creates the value through
which all the concerns are major into which effective and efficient sources are taken into
concern and this brings the changes in pharmaceutical industry which is seeking growth and
development at large scale.
Framework to analyze industry and sector is done with the help of framing and applying the
PESTEL and SWOT analysis. The PESTEL analysis is framed and evaluated and briefly
described as follow.
PESTEL Analysis –
Political – There are different types of political tensions between different countries in which
AstraZeneca is taking its platform for growth and development on political scales. There are
instabilities and tensions which are being created in measurement of political factor which is
affecting pharmaceutical business at large scale in insignificant manner (Pan and et.al., 2019).
Economic – The business performance of AstraZeneca is being affected through the economic
factors which take place in economy and this change policies and procedures through which
industry work at large scale. But apart from this, there are also various opportunities which are
being provided to AstraZeneca so that industry grows.
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Social – For choosing the right market segment there has been scale through which all aspects
are considered at large scale and this includes factors of equality and power distance which are
being studied and evaluate for customers know how and what are their requirements in
pharmaceutical industry through the market (Nurmi and et.al., 2018).
Technological – The technological factors consist of the social media marketing of how
effective and innovative business of AstraZeneca can be done. AstraZeneca should consider
the on – going technological changes and innovations so it stays ahead in competition. There is
also research and development on the information which becomes useful for pharmaceutical
industry.
Environmental – Recycling and waste management is the major environmental factor for the
pharmaceutical industry. AstraZeneca should adopt efficient waste management practices so
that there is no waste that is being produced and harming the environment at large scale.
Renewable technologies should be used and processed effectively and efficiently which helps in
maintaining the environment (Memişoğlu and et.al., 2021).
Legal – AstraZeneca must follow employee protection laws which are related to their health and
safety and this helps in maintaining a secure work environment so that company and
pharmaceutical industry can make and initiate changes which takes place at large scale. There
are certain laws which are being framed and formulated to be followed by industry.
SWOT Analysis –
Strength – There is rapid decision making and streamlining in process of the industry work.
There is research and development and presence in emerging markets which helps in making
and framing scale of industry at large scale. Ten products AstraZeneca have global sales which
are above 1 billion dollar (GURL, 2017). The company is active in over 100 countries. There is
effective and significant commercial presence in emerging markets which initiates in helping
scale through which all the aspects of growth are significant.
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Weakness – There are some weaknesses of AstraZeneca which affects the performance of
work due to product discontinuation. There are some pricing issues and patents which affects
the image of the company which comes under the legal proceedings. AstraZeneca was affected
by the drug shortage crisis which was for the case of Cefotan. These are the causes and
weaknesses of how the pharmaceutical industry is taking and leaping changes towards the
scale through which all the aspects are in consideration of how the industry works.
Opportunities – There is opportunity for AstraZeneca that it can leverage its strong presence in
the market which helps the company and the pharmaceutical industry to know the scale through
which all the aspects are taken into consideration and this helps in making and framing the
social media presence more effective and efficient (Vlados, 2019). There can be the opportunity
of global ageing population through which the pharmaceutical industry can be benefitted. There
can be the opportunity to the pharmaceutical industry that it provides biosimilar markets.
Threats – There is threat in the guidelines which is provided by the stringent drug which is
being developed. There is competition in the market within the pharmaceutical industry which is
coming with the effective and more popular drugs to make its available in the market for use.
Seroquel is the drug which is facing problem for the threat of copycat drug which is generic and
this is the major problem which is the threat to the company at large scale.
2. Competitive environment with the context of AstraZeneca
An analysis of the extent of competition is an important aspect with regard to every
company. This is because it enables the company to have an analysis of competitor moves
along with framing its future course of action and plans. With the competitive analysis company
can grab their desired aim.
Competitive analysis of AstraZeneca through Porter’s five force model:
Threat of new entrants:
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As per this force the companies will be affected in terms of threat of new entrants (Bruijl,
2018). In case of pharmaceutical industry new entrants bring innovation and come with different
practices in terms of improved quality and relative low price product. This will lead to have an
impact over the AstraZeneca in terms of affecting its sales and business operation. With regard
to AstraZeneca this force carries a high impact because with the outburst of Covid pandemic the
entire economy with regard to pharma industry opens up. This has created a high pressure on
AstraZeneca which can be managed only when innovation can be marked and high quality with
price concentration can be performed.
Bargaining power of suppliers:
It is concerned with supplier power that may have an impact over the company pricing
strategies and profit margin (Grebenshchikova and Yakushev, 2017). As the entire
pharmaceutical industry is depended on suppliers with regard to raw material and the suppliers
who hold dominant position have a major impact over the company including AstraZeneca. With
the holding of dominant position supplier may affect the prices of the production and thereby
profit of the company. This means that the supplier power with regard to AstraZeneca is high.
Bargaining power of buyers:
This aspect is related with the power of customer and their impact over the company. As
the customer share is large and they want to buy the product at low prices which will put an
impact over the companies in terms of affecting their profit (Hole, Snehal and Bhaskar, 2019).
However, being a field that is related with lifesaving drugs and medicine the overall impact of
the customer with regard to their power is minimum. Thus, AstraZeneca’s business is having a
minimum impact with regard to bargaining power of customers.
Threat of substitutes:
This is related with the availability of substitute with better efficiency and at lower price
(Martin, 2017). In case of pharma industry this force has high intensity because of the existence
of large number of substitute and companies. This means that AstraZeneca with the presence
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of many substitutes being affected with respect to their business. However, this can be
mitigated if the company would be focused towards its quality and price concern.
Rivalry among competitors:
This is related with the extent of competition in the industry. With regard to AstraZeneca
this force holds a higher percentage of degree. This is because being a healthcare industry
there is an existence of large number of competitors with the availability of improved product.
This may lead to have a direct impact over the AstraZeneca in the context of its profit and sales
percentage.
As majority of forces of the porter carry strong intensity with the context of AstraZeneca
so it would be right to said that the company exist and operate its business in highly competitive
market. Likewise, there are many other forces that may have a severe impact over the company
and its business in terms of affecting its profit and sales margin.
Industry life cycle:
With the context of AstraZeneca there is an existence of competitive market at the stage
of its start-up till maturity. This is because at the initial phase of the company there is an
existence of high competition because of the presence of large number of competitors in the
industry. The policy of the AstraZeneca and other companies were also same because almost
all the company of pharma industry follows the same concept of product differentiation.
With regard to maturity stage of AstraZeneca the following of same business operation
and adoption of strategies in association with the other companies including Pfizer, Merck &Co.
clearly indicate that the company is pursuing well with respect to maturity stage.
In addition of this it is also to be noted that every company including AstraZeneca need
to be careful with regard to the strategy which is being carried out while making survival in the
market. This is because all the company and the competitors are using the same or the similar
strategies which may lead to create intense competition in the market and thereby affect the firm
and their business. Likewise, many firms also make withdrawal from the market and thereby
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create competition for the customers. This means that the maturity stage for the AstraZeneca is
very important in order to make survival in the competition market.
Thus, in order to make survival in the competition market and continue its uniqueness,
AstraZeneca is continuously evolving its product and adopting innovation so that it can make its
product to be different from other competitors and make stay in the market.
Hence, it would be right to said that there is an existence of high intensity of competition
in the market of pharma industry and in order to meet such competition and the strategies of the
competitors AstraZeneca need to be careful with regard to analysis of the environment and
inculcating various innovation in the company and its products so that it will remain sustain in
the market along with meeting intense competition.
CONCLUSION
From the above report it can be concluded that the external environment as well as
competition in the existing pharma industry is very high with regard to AstraZeneca. In order to
make sustain and survival in the market AstraZeneca need to make careful analysis of the
external factors of political, legal, environmental and various other factors. Likewise, it also need
to be focused towards the extent of competition of market so that it can along with operating its
business would be able to maintain its uniqueness in term of meeting its competitors too. By
focusing over these aspects along with inculcating innovation in its product AstraZeneca is
being able to stay in the market.
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REFERENCES
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Management.
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