FE4055QA - AstraZeneca's Business and Economic Environment: A Study

This essay provides an analysis of AstraZeneca's business and economic environment, focusing on the UK manufacturing industry and the pharmaceutical sector. It elucidates the structure of the manufacturing industry and the nature of AstraZeneca within that context. The analysis employs the STEEPLE framework (Social, Technological, Economic, Environmental, Political, Legal, and Ethical) to examine the external factors influencing AstraZeneca's operations over the past 5-10 years. The essay also discusses the challenges and problems arising from these external factors for AstraZeneca and its stakeholders, particularly in light of the COVID-19 pandemic and its impact on the pharmaceutical industry. The study concludes by emphasizing the importance of understanding and analyzing the economic environment for businesses to make informed decisions and navigate potential challenges.

Understanding of the
Business and
Economic
Environment

Table of Contents
INTRODUCTION.........................................................................................................................3
The elucidation of the structure of the manufacturing industry..................................................3
The explication of the nature of AstraZeneca in regards to the industry.....................................4
The utilisation of STEEPLE for the external business analysis of AstraZeneca.........................5
Examination of the challenges and the problems in respect to the external factors on the
relative parties of AstraZeneca....................................................................................................6
CONCLUSION..............................................................................................................................7
REFERENCES..............................................................................................................................8

INTRODUCTION
The term "economic environment" alludes to all of the outside economic variables that
influence how consumers and businesses make purchases and, as a result, how well a business
succeeds. These factors, which might be comparatively tiny (micro) or massive (macro), are
sometimes beyond a control of a company (micro). The state of the economy is crucial because it
reflects how confident individuals are in their surroundings (Al-Omoush, 2022). Because of a
healthy economy, businesses grow, workers have more employment options, and consumers
spend more money. The purpose of this study is to explicate the structure, nature as well as the
significant implications of the chosen industry in accordance to the UK Standard Industrial
Classification (SIC 2007). The selected sector for the elucidation is the manufactory industry of
UK in regards to the pharmaceutical business. The company that will assist the illumination is
AstraZeneca PLC, which is a global pharmaceutical and biotechnology firm with its
headquarters in Cambridge, England's Cambridge Biomedical Campus.
MAIN BODY
The elucidation of the structure of the manufacturing industry.
The linkages between resources inside a firm are described by its organisational structure.
It starts with people but also includes things like resources, cash, and knowledge. Traditional
structures are typically used by manufacturing companies to organise their resources.
Departmentalization is usually always used by the businesses in this industry so that related
duties can be grouped together. An organisational structure for manufacturing is a way to
describe the hierarchy of jobs and duties inside a business (Charfeddine and Zaouali, 2022).
Depending on the size, breadth, and type of the company's products, the structure will vary.
Regarding the pharmaceutical sector, they increase manufacturing and team up with brokers to
market the medication through a variety of channels (direct-to-consumer or concluded with the
supply channels such as dispensaries and infirmaries). AstraZeneca’s organisational structure can
thereby be showcased through a pictorial representation thereby.

Figure 1 AstraZeneca Organisational Structure
The explication of the nature of AstraZeneca in regards to the industry.
Using tools, labour, machinery and chemical processing, manufacturing is the process of
transforming raw materials or components into completed goods. Similar to this, the
biopharmaceutical company AstraZeneca Plc (AstraZeneca) concentrates on the development,
production, and commercialization of a range of prescription drugs. It produces products to treat
diseases like cancer, immune system disorders, infectious diseases, neurological disorders, and
respiratory, cardiovascular, obstruction, and lipid metabolism issues. The company's product line
includes biologics, prescription drugs, and vaccines (Estevo, Lopes, and Penela, 2022).
AstraZeneca sells its products through distributors, regional representative offices, and
completely owned regional marketing businesses. Both general practitioners and medical
specialists are the customers of the company. The COVID-19 vaccine from AstraZeneca has
received approval for conditional marketing or emergency use. Europe, the Americas, Asia,
Africa, and Australasia are among the regions where the company operates. The corporate

headquarters of AstraZeneca are located in Cambridge, Cambridgeshire, in the United Kingdom.
Priorities for the company include expediting the advancement of the next generation of novel
molecular docking, enhancing our immunology and competence in rare diseases, exploring
innovative and scientific methods, increasing R&D productivity, engaging with the business and
society with a focus on inclusivity, continuous learning, enhancing access to healthcare,
protecting the environment, ethics and transparency, and implementing our Ambition Zero
Carbon initiative.
The utilisation of STEEPLE for the external business analysis of AstraZeneca.
STEEPLE analysis is a straightforward strategic management technique that examines
external elements that will affect a firm or organization's decisions. Although it is based on the
STEEP study, it includes additional, more in-depth consideration of a number of other elements
that the STEEP analysis does not. The L stands for legal analysis and the E for ethical
evaluation. All of these variables are outside the control of the firm. This specific examination
can be utilised to provide a thorough breakdown of the external business-related elements that
may have an impact on the operation of AstraZeneca (Masenya, 2022).
 Social – Demographic trends, patterns in social influences include aspects of the external
factors such as psychosocial aspects of how people are living, works, and communicate.
These elements have an impact on potential market size and consumer needs.
Understanding AstraZeneca requires an understanding of its commitment to safety, rate
of growth, and demography. The expectations of the stakeholders should also be taken
into account.
 Technological factors – The challenges of achieving corporate success through enhanced
performance, potency, and competitive edge, along with creative uses of contemporary
technology, have made both technology and management consultants quite cognizant of
the need for more advantageously oriented practices to AstraZeneca's planning and
administration.
 Environmental factors – Due to patient medication intake and excretion, incorrect
disposal of leftover and outdated medications, and industrial effluent from production
facilities, drugs may wind up in the environment. AstraZeneca must seriously consider
this if it wants to compete in the market with strength and respect (Rouse, 2022).

 Economic factors – Numerous domestic and international economic issues have an
impact on AstraZeneca. Customer trust and conduct will also be impacted depending on
whether the economy is in a peak, a depression, or a restoration. Economic factors have
an effect on both the long- and short-term stability of the local and international
businesses, as well as the purchasing power of prospective consumers. As a result, the
business must take into account the following: Interest rates, budget allocation, inflation
rates, economic expansion, etc. Additionally, the impact of interest rates on aggregate
demand, which decreases as interest rates rise, has an impact on the economy. Typically,
a decline in interest rates results in an increase in asset value, which increases consumer
wealth.
 Political factors – Every country has a unique regulatory framework for the
pharmaceutical industry. This includes laws governing medicines, laws governing safety,
and laws governing accreditation. Although these regulations are not as tight in many
nations, they are quite strict in less developed economies and hinder the growth of the
pharmaceutical industry. Therefore, these governmental directives and legal concerns
directly affect how AstraZeneca conducts business.
 Legal factors – All industries are being forced by the current situation to embrace a new
paradigm. This is especially true for the pharmaceutical industry, which has recently been
affected by a number of passed legislation and enactments. Market players remark that
while judicial practises are inconsistent, emergent support measures, in accordance with
the adoption of relevant enactments and their execution thereof, would include risks that
would outweigh any potential benefits. The national investment climate is negatively
impacted by all of this. AstraZeneca's officials must maintain strict adherence to these
legal considerations to avoid any unintended consequences (Suwelack, Stegemann and
Ang, 2022).
 Ethical factors – Narcotic security, cost structure, data disclosure, processing and
distribution, clinical design of the study, advertising constraints, sales promotion, animal
testing, the global market, emerging economies, concerns regarding vaccines, the rise of
counterfeit medicines, the cost-effectiveness of treatments, and over the past ten years,
pharmaceutical fraud, are the most frequently reported issues. To avoid any potential for

moral transgression, these aspects should be mentioned in the ethical declarations created
by the firm leaders.
Examination of the challenges and the problems in respect to the external factors on the relative
parties of AstraZeneca.
Scientists from all around the world have been challenged to speed the large-scale
worldwide clinical investigation and development of new medicines and vaccinations to possibly
treat or prevent COVID-19 as a result of the virus's urgent need for a response. The
manufacturing of AstraZeneca's medications often rises in step with their development through
clinical testing, and when they are prepared for commercial release, a centralised supply chain is
already in place to facilitate supply (Xuan, 2022). But during the pandemic, a different strategy
was needed because of the pressing necessity for the quick creation of efficient medications and
vaccinations. These difficulties stem from political changes that did not take into account
problems with the supply chain.
CONCLUSION
An inference can thereby be made that, although businesses frequently have no influence
over it, they can nevertheless analyse it before determining if to penetrate a particular industry or
market or use other strategies. Because they have a direct impact on the goods, services, and
consumers, the relative economic factors discussed in this study are crucial. They also have a
considerable impact on the significant business's capacity to conduct business in its own country
and form alliances with firms in other nations.

REFERENCES
Books and Journals
Al-Omoush, K.S., 2022. Understanding the impact of intellectual capital on E-business
entrepreneurial orientation and competitive agility: an empirical study. Information
Systems Frontiers, 24(2), pp.549-562.
Charfeddine, L. and Zaouali, S., 2022. The effects of financial inclusion and the business
environment in spurring the creation of early-stage firms and supporting established
firms. Journal of Business Research, 143, pp.1-15.
Estevão, J., Lopes, J.D. and Penela, D., 2022. The importance of the business environment for
the informal economy: Evidence from the Doing Business ranking. Technological
Forecasting and Social Change, 174, p.121288.
Masenya, T.M., 2022. Integrating Talent and Knowledge Management Practices in the New
Normal Business Environment: Developing Future Leaders in Public Sector
Organizations. In Navigating the New Normal of Business With Enhanced Human
Resource Management Strategies (pp. 113-144). IGI Global.
Rouse, W.B., 2022. Transforming Public-Private Ecosystems: Understanding and Enabling
Innovation in Complex Systems. Oxford University Press.
Suwelack, T., Stegemann, M. and Ang, F.X., 2022. Understanding the Outside World:
Customers and the Surrounding Environment. In Creating a Customer Experience-
Centric Startup (pp. 53-84). Springer, Cham.
Xuan, L., 2022. Big data-driven fuzzy large-scale group decision making (LSGDM) in circular
economy environment. Technological Forecasting and Social Change, 175, p.121285.