AstraZeneca's Global Competitiveness and UK Base Analysis Report

This report analyzes AstraZeneca's global competitiveness, specifically focusing on its strategic advantages derived from its base in Cambridge, UK, within the context of industry cluster theory. The study employs a case study approach, utilizing secondary data to assess AstraZeneca's value-creating activities, including patent rights, R&D investments, and contributions to the UK economy. The findings highlight the significance of Cambridge's collaborative environment, mobile labor market, and focus on innovation, as key drivers of AstraZeneca's success and global competitiveness. The report emphasizes the company's commitment to R&D, which contributes to innovation and economic growth. The analysis reveals how AstraZeneca's value creation activities, such as the development of new medicines and strategic positioning, have helped the company gain a competitive edge and customer loyalty. The report concludes that AstraZeneca's strategic focus on innovation and science within the Cambridge cluster has significantly contributed to its global competitiveness and benefits to the UK economy.

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Running head: Coursework 2
7BSP0355-0206 International
Business Strategy
‘A report on AstraZeneca’s global competitiveness
with regards to Cambridge, UK as its preferred
base.’

Coursework 2
Abstract
In this report, the analysis of the company AstraZeneca has been carried out based on the
industry cluster theory reflecting the value-creating activities at Cambridge, UK. The method
used for this study is a case study approach using secondary data collection tools. The
investigation revealed that the company’s patent rights, contribution towards the economy and
prioritizing R&D facilities have contributed towards global competitiveness as these value
creating activities at the base of Cambridge, UK has gained significant acceptance from the
market compared to other research facilities. Hence, it can be highlighted that AstraZeneca has
been gaining competitiveness as well as profits with its preferred base at Cambridge.
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Table of Contents
1. Introduction.............................................................................................................................. 4
2. Methods................................................................................................................................... 4
2.1 Research strategy.............................................................................................................. 4
2.2 Research design................................................................................................................ 4
2.3 Data collection method......................................................................................................5
3. Results..................................................................................................................................... 5
4. Discussion............................................................................................................................... 7
5. Conclusion............................................................................................................................... 8
6. References.............................................................................................................................. 9
Table of Figures
Fig: 1 (Reasons behind AstraZeneca’s competitiveness and success at Cambridge, UK) --------5
Fig: 2 (Industry cluster theory of AstraZeneca and its contribution towards the UK economy) ---6
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1. Introduction
AstraZeneca is one of the leading companies in the pharmaceutical industry of the UK. Although
the company influences both the Swedish and UK corporate governance system, it has been
analyzed that the UK dominance system is relatively high over the company due to majority
shareholders. Besides, the growth and sustainability that the company earned while operating in
the UK market have been credible which has been significantly considered in this study.
Specifically, the industry cluster theory highlights that intent industries in particular regions
delivers several advantages. Based on such note, this report aims to analyze the key value
creating activities and global competitiveness of AstraZeneca due to its preferred base at
Cambridge, the UK with regards to industry cluster theory.
2. Methods
As stated by Saunders et al. (2015), the methodology is an essential segment of a study
because it contributes to formulating an appropriate framework that certainly ensures
justification and validation of the entire study. For achieving the aim of the study, the following
strategy, design and data collection method has been considered.
2.1 Research strategy
As stated by Sahay (2016), the research strategy can be segregated into grounded theory.
Experiment, ethnography, action research and survey approached. Based on the scope of the
present study, the use of a case study approach has been considered. It can assist to attain
relevant information from significant sources of evidence in relation to the research title.
Besides, it does not integrate any ethical concern as there is no requirement of participants and
focuses on formulating extensive knowledge and understanding of the topic, leading to valid
results.
2.2 Research design
As put forwarded by Sundram et al. (2016), in research design both choices and time horizons
have to be considered in order to develop the base of the study. Concerning such context, the
mono-method choice has been conserved as research design as it assists to formulate the
qualitative aspects of the study. Besides, the present study has considered only secondary
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Coursework 2
sources. On the other hand, the cross-sectional time horizon has been also considered as
the study is based on a specific time frame.
2.3 Data collection method
The data collection method is one of the significant parts of the study as the results are highly
inclined towards the information gathered for the study, Taherdoost (2016). Based on such note,
the viability of the secondary data collection method is significant for the present study. The
information has been gathered from pre-published journals, websites as well as other significant
online sources. This has certainly assisted to develop in-depth knowledge and understanding to
achieve the aim of the study, Gummesson (2017). The keywords including ‘industry cluster
theory’ and ‘AstraZeneca UK advantages’ has been used for gaining relevant information from
online sources as well.
3. Results
As stated by Phelps and Wijaya (2020), industry cluster theory highlights the steady presence of
suppliers, customer base and geographic concentration that certainly enhances growth, profits,
and competitiveness of a firm. Concerning such context, it has been identified from the case
study of AstraZeneca that in the case of Cambridge, the UK, the existence of leakage of
information with regards to patents is minimal due to the existence of the mobile labour market
which acts as a potential value creating activity. It offers competitiveness and growth in the
market of the UK, Linnenluecke (2017). It has been well highlighted in Fig: 1 that the company
AstraZeneca has gained significant growth in the market due to a collaborative work
environment among international researchers, scientists, engineers as well as a wide range of
expertise.
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AstraZeneca
growth at
Cambridge,
UK
International
researchers
Scientists
Expertise
Engineers

Coursework 2
Fig: 1 (Reasons behind AstraZeneca’s competitiveness and success at Cambridge, UK)
On the other hand, the annual report of astrazeneca.com (2020) also revealed that the R&D
centres at Cambridge are progressing which is certainly a contribution towards innovation and
collaboration. Based on such context, it has been identified through the case study that the
Product Strategy Team at Cambridge is developing medicines and formulas within the
therapeutic areas through significant positioning considerations. Hence, it can be stated that the
customer base of AstraZeneca UK is steady to gain competitiveness and success explicitly. In
addition, astrazeneca.com (2020) highlighted that by the year 2032, the company AstraZeneca
would contribute £1bn to the economy of the UK due to the Cambridge life sciences cluster.
This is a significant value creation activity of AstraZeneca that has gained significant attention
from customers leading to competitiveness and customer loyalty, (Refer to Fig: 2).
2022 2028 2032
0
0.2
0.4
0.6
0.8
1
1.2
0.35
0.7
1
Contributi on of AstraZeneca towards UK
economy due to Cambridge Science
Cluster and R&D centres
Fig: 2 (Industry cluster theory of AstraZeneca and its contribution towards the UK
economy)
As put forward by Heim et al. (2019), in order to sustain in the competitive market, firms within
the pharmaceutical industry must comprehend the need for innovation and science for the
developments of products and services. Concerning such context, it has been analyzed that the
company AstraZeneca in the UK, is highly prioritizing to fund R&D centres in order to gain long
term profit. This certainly a value creation activity of AstraZeneca contributing to the lives of
people through medical assistance as well as to the economy. Besides, it has been also
comprehended that as it is the 4th largest pharmaceutical company. It has gained steady
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suppliers, customer base as well as effective market penetration strategy in order to sustain in
the competitive market, Pradabwong et al. (2017).
4. Discussion
Based on the information gathered from credible sources, it has been comprehended that the
company AstraZeneca has been concentrating on developing value creation activities that have
attained the company growth and competitiveness in the UK market. Specifically, the industry
cluster theory highlighted that Cambridge has been a significant base for the company to
develop products with secrecy, patent rights and gains market sensitive information, resulting in
competitive advantage and growth compared to other companies within the pharmaceutical
industry. It has been well stated Lu et al. (2018) that firms must ensure their patents for
developing innovative products due to higher rivalry within the industry and customer loyalty.
Besides, Assadollahi et al. (2019) also suggested that AstraZeneca is focused to develop
innovative molecular dynamics that can assist to cure cancers for patients. In addition, the
results also revealed that innovation and science-based on the Cambridge cluster have been a
value creating activity of the firm that has a significant contribution towards the UK economy.
Based on the case study, the R&D centres at Cambridge act as a significant amplifier to boost
innovation that offers competitiveness and success in the market making it the potential base for
the company. In addition, the value creation activities have contributed towards its global
competitiveness maximizing shareholder’s rights and values of the UK.
On the other hand, García‐Lillo et al. (2018) stated that cluster firms must align with their
strategic competencies and develop plans that can contribute towards long-term success.
Based on such context, it has been identified that AstraZeneca’s primary focus is on R&D
facilities all around the world. However, based on the case study, it has been analyzed that the
UK base is highly moving forward with innovation and science in order to contribute towards the
economy and its development compared to the US or India or Germany or other facilities.
Hence, it can be stated that the value creation activities of AstraZeneca at Cambridge, UK has
been significant and benefitting the livelihood of people and the economy as a whole, attaining
the overall aim of this study.
The broader implications of the results attained through this study can assist several firms within
the pharmaceutical industry to develop their value creating activities that can enhance global
competitiveness and growth. In addition, future research can be carried out among different
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industry and different economies that can assist to generalize and justify the results. As the
study is primarily based on secondary information, attaining generalized results has been a
major limitation of the methods. Runfola et al. (2017). However, the method used has assisted
to gain in-depth knowledge and understanding about the topic. In the future, the use of both
primary and secondary data can be utilized for gaining accurate and generalized results.
5. Conclusion
Hence, it can be stated that AstraZeneca has been benefitting as well as contributing to its base
at Cambridge, the UK for its value creating activities. In addition, the company’s secrecy level,
R&D development, innovation, and science as well as a contribution towards the economy has
gained the company, global competitiveness specifically due to its base in the UK, resulting in
customer loyalty and profits.
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6. References
Assadollahi, V., Rashidieh, B., Alasvand, M., Abdolahi, A. and Lopez, J.A., 2019. Interaction
and molecular dynamics simulation study of Osimertinib (AstraZeneca 9291) anticancer drug
with the EGFR kinase domain in native protein and mutated L844V and C797S. Journal of
cellular biochemistry, 120(8), pp.13046-13055.
astrazeneca.com, 2020. Cambridge Life Sciences Cluster Set To Deliver An Additional £1
Billion To The UK Economy By 2032. [online] Astrazeneca.com. Available at:
<https://www.astrazeneca.com/media-centre/articles/2018/cambridge-life-sciences-cluster-set-
to-deliver-an-additional-gbp1-billion-to-the-uk-economy-by-2032-03052018.html> [Accessed 19
April 2020].
astrazeneca.com. 2020. Annual Report 2019. [online] Available at:
<https://www.astrazeneca.com/investor-relations/annual-reports/annual-report-2019.html>
[Accessed 19 April 2020].
García‐Lillo, F., Claver‐Cortés, E., Marco‐Lajara, B., Úbeda‐García, M. and Seva‐Larrosa, P.,
2018. On clusters and industrial districts: A literature review using bibliometrics methods, 2000–
2015. Papers in Regional Science, 97(4), pp.835-861.
Gummesson, E., 2017. Case theory in business and management: reinventing case study
research. Sage.
Heim, I., Kalyuzhnova, Y., Li, W. and Liu, K., 2019. Value co‐creation between foreign firms and
indigenous small‐and medium‐sized enterprises (SMEs) in Kazakhstan's oil and gas industry:
The role of information technology spillovers. Thunderbird International Business Review, 61(6),
pp.911-927.
Linnenluecke, M.K., 2017. Resilience in business and management research: A review of
influential publications and a research agenda. International Journal of Management
Reviews, 19(1), pp.4-30.
Lu, R., Reve, T., Huang, J., Jian, Z. and Chen, M., 2018. A literature review of cluster theory:
Are relations among clusters important?. Journal of Economic Surveys, 32(4), pp.1201-1220.
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Phelps, N.A. and Wijaya, H.B., 2020. Growth and growth constraints in craft industry clusters:
The batik industries of Central Java. Singapore Journal of Tropical Geography.
Pradabwong, J., Braziotis, C., Tannock, J.D. and Pawar, K.S., 2017. Business process
management and supply chain collaboration: effects on performance and
competitiveness. Supply Chain Management: An International Journal.
Runfola, A., Perna, A., Baraldi, E. and Gregori, G.L., 2017. The use of qualitative case studies
in top business and management journals: A quantitative analysis of recent patterns. European
Management Journal, 35(1), pp.116-127.
Sahay, A., 2016. Peeling Saunder’s Research Onion. Research Gate, Art, pp.1-5.
Saunders, M.N., Lewis, P., Thornhill, A. and Bristow, A., 2015. Understanding research
philosophy and approaches to theory development.
Sundram, V.P.K., Chandran, V.G.R., Atikah, S.B., Rohani, M., Nazura, M.S., Akmal, A.O. and
Krishnasamy, T., 2016. Research Methodology: Tools, Methods and Techniques. MLSCA,
Selangor.
Taherdoost, H., 2016. Sampling methods in research methodology; how to choose a sampling
technique for research. How to Choose a Sampling Technique for Research (April 10, 2016).
Case study-
Ramirez, P. and Tylecote, A., 2004. Hybrid corporate governance and its effects on innovation:
a case study of AstraZeneca. Technology Analysis & Strategic Management, 16(1), pp.97-119.
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