Strategic Management and Sustainability in the Pharmaceutical Industry: A Critical Analysis of AstraZeneca

Strategic management
and sustainability

Table of Contents
Introduction......................................................................................................................................3
Main Body.......................................................................................................................................3
Introduction to the global pharmaceutical industry in UK..........................................................3
Internal and external environment of Astra Zeneca....................................................................3
Competitive environment of Astra Zeneca.................................................................................7
Conclusion.......................................................................................................................................9
REFERNCES:................................................................................................................................10
Books and Journals:..................................................................................................................10

Introduction
Strategic management consist of managing all strategies made to achieve organisational
goal on time. It is essential for every organisation to manage their strategies in such a way which
will help them to manage their workforce and resources in appropriate way (Dzwigol, 2020).
Sustainability in business reflects the effect a business or organisation have upon environment
and their society. It is essential to adopt sustainability factor in every business because it not only
focuses to the growth of organisation but it also helps to develop the condition of environment
and surrounding societies. Astra Zeneca is a Biotechnological and Pharmaceutical company
which is founded in the year 1999. It is headquartered in Cambridge, UK. The following file
covers internal and external environment of Astra Zeneca and their competitive environment. For
analysing internal environment SWOT model is used and to analyse external environment
PESTEL model is used. On the other hand, for analysing competitive environment Porter Five
Forces model and Industry Life Cycle is used.
Main Body
Introduction to the global pharmaceutical industry in UK
UK is known by their good economic growth and high living of standards for their
population. Pharmaceutical industry of UK plays an important role for the growth of their
economy because few companies of UK based like Astra Zeneca and Glaxo Smith Kline serve
their products and services internationally to many other countries. Annual turnover of UK
pharmaceutical industry is 42 billion British Pounds (Leading 10 analgesic drugs dispensed in
England in 2020, by number of items (2021)). In context to customers of this industry, they
mainly focus on their healths and they are health conscious which force the industry to provide
best medical facilities to their customers. In covid 19 pandemic, the demand of their services and
medicines increases and they are require to serve their medicines to needy people on time. In this
pandemic almost every household demanded medical facilities. It is recorded that Paracetamol
medicines are more manufactured as well as sold to customers in the year 2020-2021 (Leading
10 analgesic drugs dispensed in England in 2020, by number of items (2021)).
Internal and external environment of Astra Zeneca
Swot analysis consist of analysing strength, weakness, opportunities and threats of a company
(Elavarasan and et. al., 2020). In context of Astra Zeneca, Swot analysis are explained below-

Strategic management and
sustainability

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
Determine with evidence the UK and the global pharmaceutical industry. Use related
frameworks to analyse industry and sector critically..................................................................3
Determine with evidence the competitive environment of AstraZeneca.....................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................12

INTRODUCTION
It becomes important to analyse the business environment in order to evaluate the impact
of different external macro factors on business performance and decision making. There are
certain environment analysis tools that not only determines the impact of such factors but also
supports to define the competition and the strategies that a business needs to implement
pertaining to different situational context. AstraZeneca is a British global pharmaceutical
company which headquartered in England, UK. It is a public limited company founded in the
year 1999. AstraZeneca sells pharmaceutical products for major diseases such as infection,
neuroscience, respiratory, inflammation and others. It is also a famous pharmaceutical brand
known for making Oxford AstraZeneca COVID-19 vaccine. This report talks about the industry
and sector analysis in the context of AstraZeneca and evaluation of competitive environment
supported with the theories, models and relevant sources (Alyoubi, 2015).
MAIN BODY
Determine with evidence the UK and the global pharmaceutical industry. Use related
frameworks to analyse industry and sector critically.
Industry five forces analysis
Industry five forces analysis conducted on the healthcare industry in which AstraZeneca plc
operates.
Threat of new entrants
(Porter’s Five Forces Analysis. 2021) Economies of scale is challenging to accomplish in the
industry where the AstraZeneca plc operates which makes huge cost for new entrants in the
healthcare industry and large businesses like AstraZeneca plc enjoys producing production at
large rate and attains economies of scale in the production function.
In Healthcare industry product different is strong where businesses sell differentiated products
that attracts the customers to purchase. Businesses in healthcare industry looks over strong
advertisement and customer services. Thus, such factors make challenging for new businesses in
the healthcare industry.

The capital required for entering into healthcare industries is relatively higher than any other
industry therefore it creates hindrance and a challenge for new entrants into the market.
Bargaining power of suppliers
The control of suppliers is less as there are large number of suppliers in the healthcare industry
that means that suppliers have a weaker control for influencing the prices in the market.
The products offered by the suppliers in the market are standardised and that helps businesses
like AstraZeneca to conveniently switch suppliers (Amason and Ward, 2020).
Threat of substitute products
The industry in which AstraZeneca operates have a very few substitute products. The substitute
products are produced by small businesses earning lower profit as a result there is no a fixed
ceiling over the profit in which AstraZeneca operates.
The few substitutes operating in the industry sells products at higher cost in order to cover
quality and the cost of production. AstraZeneca sells products at lower prices covering quality
than the substitute products which leads the buyers no reason for switching to substitute
products. This also concludes that the threat of substitute products is relatively weaker.
Rivalry among the existing firms
The competitor in the healthcare industry where AstraZeneca operates are relatively less. Most of
the businesses are large-scale businesses. The lesser number of competitors in the market makes
rivalry among existing firms weaker.
The few competitors in the industry in which AstraZeneca operates are generally large
businesses where there are more chances that these businesses become market leader, thus, it can
also be said that rivalry among existing firms is stronger (Barca, 2017).
The industry in which AstraZeneca operates have a positive industry growth that also leads to
conclusion that the competitors do not want to capture each other’s market share. Thus, such
factors make rivalry among the existing firms weaker.

Strategic Management and
Sustainability
1

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
2

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
3

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
4

Strategic management
and sustainability

Table of Contents
INTRODUCTION...........................................................................................................................3
Evaluation of UK and Global Pharmaceutical industry.........................................................3
Evaluation of competitive environment of AstraZeneca........................................................6
CONCLUSION ...............................................................................................................................9
REFERENCE..................................................................................................................................9

INTRODUCTION
COVID 19 has handicapped the market across the globe which results in various
challenges in the essential supply chain and an upsurge in pharmaceutical industry. AstraZeneca
is taken as base company. AstraZeneca is a British Swedish multinational pharmaceutical and
biotechnology organisation which is established in 1999 with having headquarter in Cambridge,
UK. They having portfolio of products for diseases such as cardiovascular, infection,
gastrointestinal, inflammation and respiratory. Recently, they have developed Oxford
AstraZeneca COVID 19 vaccine. In this report, it covers various frameworks for analysing the
industry as well as sector critically. It also includes the competitive environment of AstraZeneca.
Evaluation of UK and Global Pharmaceutical industry
PESTLE analysis
PESTLE analysis is a framework for analysing all the macro environmental factors which
has an impact on the organisation. In context to the selected organisation, PESTLE analysis is
mentioned below:
Political analysis: Political factors has a significant role in identifying all the elements
which could create impact on the selected organisation and its profitability. The organisation is
operating in more then dozen nations and also expose itself to various distinct forms of political
environment. The major primary political factor which is affecting is pricing pressure form the
government in countries such as Europe, US. This could be affected by the outbreak as
government would be trying to provide pharma product to citizen a low prices (Zaidi, 2020).
Positive impact: AstraZeneca has opportunity of Brexit for surviving with stable
probability for elevating the market share.
Negative impact: The political pressure of reducing the price hike could lead to
loss for several firms and this could affect the organisation's probability as the firm would not be
able to increase based on the demands.
Economic analysis: COVID 19 has impacted the lives of every individual in a way or
other. The restriction created by COVID 19 has lead to shutting down of many industries and
due to this, the research and development is slowed down.

Strategic
Management and
Sustainability

Table of Contents
INTRODUCTION ..........................................................................................................................3
MAIN BODY...................................................................................................................................3
CONCLUSION ...............................................................................................................................8
REFERNCES:..................................................................................................................................9
Books and Journals:....................................................................................................................9

INTRODUCTION
The word strategies can be understood by all those efforts to achieve organizational
goals and objectives, and where one can play to succeed or win. It determines a particular
course of action that drives from the current position to the future position. Strategic
Management is a process in which goals and targets or procedures are set in order to provide a
company competitive benefits (Ariza, 2021). On the other words, employees and other
resources are deployed achieve desired goals. The essay highlights the organization named
AstraZeneca which is British multi-national company, specialized in pharmaceutical and
biotechnology. The company was introduced in 1999. it headquartered in Cambridge, UK. The
company has a portfolio of their goods and services for major diseases in areas such as
infection, inflammation, cardiovascular, oncology and many more. The company operates their
business in more than 100 countries. The company is also very well-known for his major
involvement in the development of Oxford-AstraZeneca Covid-19 vaccine. As the
pharmaceutical industry deals a high pressure due to the Covid-19 situation, the essay includes
various aspects and frameworks such as PESTLE analysis or industry five forces that has a
major impact on the business environment.
MAIN BODY
The Strategic Management assists companies take stock of their current situation,
strategies have been chalk out, deploy them and examine the effectiveness of the strategies
that are implemented. These are involve five general strategies and while implementing it can
be varied which is depending the business surroundings. It is a process of implementing and
formulating strategies depending on the business goals and objectives and these initiatives are
taken by managers on the behalf of the stakeholder of the company. In context to AstraZeneca,
it cater overall direction to the company which is consist with goals, developing plans and
policies, and allocation of resources. It is based on the assessment of internal and external
surroundings in which business is operated. The pharmaceutical industry involves both private
and public sectors. While considering UK, it plays a vital role in the pharma sector globally. Also,
it has big pool of engineers and scientists who have potential to lead this industry to the greater
achievements. The Covid-19 and its resultant lockdown majorly affect the pharmaceutical
industry as well. Due to this unpredictable situation and challenging time, the pharmaceutical
companies are highly impacted and rapid challenges are arise from disruption in supply chains.
Many business process needs to be change to handle this situation (Buckley, 2018). As the
situation already affected a lot but if it lasts more longer than expected, the supply of active

Strategic management
and sustainability

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Evaluate with evidence the UK and global pharmaceutical industry through different
frameworks. ................................................................................................................................1
Evaluate with evidence the competitive environment of company............................................7
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10
.......................................................................................................................................................10

INTRODUCTION
Strategic management refers to the procedure of implementing goals and objectives in
order to make an organisation more competitive. It provides entire direction with the help of
developing certain plans and policies which are mainly designed to achieve goals and objectives.
In context with sustainability in strategic management, it includes evaluating, formulating and
establishing different business strategies that are competitive and socially responsible (Vildåsen,
Keitsch and Fet, 2017). In relation with a business organisation, both strategic management and
sustainability is important because it helps a company to achieve growth and achieve competitive
advantage. The below report is based on AstraZeneca which is a British multinational
pharmaceutical company with its headquarters in England. The company is established to deliver
all strategic priorities sustainably and focus on the development of prescription medicines. The
report involves a strategic analysis of the pharmaceutical industry and its competitive
environment.
MAIN BODY
Evaluate with evidence the UK and global pharmaceutical industry through different
frameworks.
Global pharmaceutical industry has the responsibility for research, production and
distribution of medications. Due to COVID-19 pandemic, the pharmaceutical sector has faced lot
of pressure due to which many changes happened in the industry. With respect to this, a strategic
analysis has been done with the help of PESTLE analysis and industry life cycle. In context with
UK and chosen organisation, it is being explained below: -
PESTLE Analysis: - It is described as a framework of all kinds of macro-environmental
factors like political, economic, social, technological, legal which are used in the environmental
scanning of entire strategic management.
 Political factors: - It refers to those factors that defined at what degree a government
intervenes in the economy. There are several political factors like government policies,
labour laws, trade restrictions and so on. In context with UK, its main strength is political
stability which has made them one of the most powerful country (Henry, Buyl and
Jansen, 2019). However, due to the arrival of Brexit and COVID-19 pandemic, the
country faced many uncertainties. In context with the global pharmaceutical industry,
1