Financial Decision Making: AstraZeneca's Strategy Post-COVID-19

This report examines AstraZeneca's financial strategies and decision-making processes in response to the COVID-19 pandemic. It explores the impact of COVID-19 on the company, emphasizing the importance of diversification and strategic investments for navigating the post-pandemic business environment. The analysis includes both subjective and statistical evaluations of AstraZeneca's investments, considering factors like global exposure, product quality, social impact, and reputation. Statistical methods such as NPV and payback period are used to assess investment viability. The report also delves into risk and return considerations, highlighting the role of diversification in mitigating volatility and enhancing financial performance. A SWOT and PESTLE analysis are included to provide a comprehensive view of AstraZeneca's strategic position and external environment. The report concludes with recommendations for AstraZeneca to embrace diversification, strengthen online presence, and address employee concerns to ensure long-term growth and profitability. Desklib provides access to similar past papers and solved assignments for students.

Accounting and
Finance for Decision
Making

Contents
Contents...........................................................................................................................................2
INTRODUCTION...........................................................................................................................1
The planned portfolio's motivation..................................................................................................1
Covid 19 diversity........................................................................................................................1
Evaluation of investments utilising both statistical and subjective data..........................................2
AstraZeneca investing assessment is influenced by subjective considerations...........................2
Investing evaluation is influenced by statistical parameters........................................................3
Analysis of danger and yield, as well as its possible implications on AstraZeneca's fiscal results:5
Risk and return.............................................................................................................................5
Diversity decreases or removes volatility in the following ways................................................5
Effect on monetary results...........................................................................................................6
Conclusion and recommendation:...................................................................................................6
REFERENCES................................................................................................................................8

INTRODUCTION
This document is a scenario study of a specific business and the influence of Covid-19 on
said business (Abadie, Brown and Fisher, 2019). This real world example is
regarding AstraZeneca, a multilateral pharmaceutical company that is among the largest in the
UK. Covid-19 seems to have had a tremendous impact on AstraZeneca, a global
biopharmaceutical and science firm. AstraZeneca has also acquired additional diversification
offers. Furthermore, subjective and statistical analyses of AstraZeneca's current threat and
performance have been carried out.
The planned portfolio's motivation
Covid 19 diversity
Diversity is a marketing approach which entails approaching a possible industry which
AstraZeneca does not now serve and developing a novel item for such area, or growing into
additional markets. It is employed to add functionality to an established framework. This strategy
is helpful to redirect risks and to maintain in the marketplace for the extended period of time
throughout Covid 19. It requires solid industry analysis, and AstraZeneca is currently a well-
established and experienced corporation. Consolidations and collaborations are two options.
Diversity could be achieved in a variety of methods, including generational, market, and industry
variety. Diversity would assist AstraZeneca grow increasingly robust, provide efficiencies of
magnitude, and boost company worth while also improving staff morale (Boggio, Moscarola and
Gallice, 2020). Diversity is the practise of constructing a strategy which includes a wide range of
commodities in an attempt to reduce volatility. Treasuries and currencies, unit trust, and equities
investing options could help AstraZeneca decrease exposure and broaden its portfolio. Diversity
reduces hazards but also reducing the likelihood of investment risks. It also boosts ability to pay
dividends, defends from adverse economic swings, and reduces cost. Because the Covid 19
epidemic does have a detrimental impact on practically all businesses and sectors, and because of
the country's shutdown and constrained restrictions, each company must adapt its plans to the
regulatory demands. Diversity benefits the company and protects it from unfavourable industry
settings caused by Covid 19. As the Finance Manager of the AstraZeneca corporation, I
recommend that the governing body embrace a differentiation approach by conducting
globalisation or by World economy Implications to decrease corporate danger and intend to start

making a few financing which will allow the firm maintain and develop in the big scheme of
things, and also provide AstraZeneca with a wide variety of sectors. For instance, a corporation
could engage in another nation and thereby increase its business globally.
Evaluation of investments utilising both statistical and subjective data
To verify investing assessment, there are primarily 2 sorts of studies. One technique is
quantitative, whereas the other is subjective. There seem to be a few common techniques for
determining and evaluating asset evaluation in quantifiable criteria. There are various non-
numeric aspects in the subjective process that contribute to valuation methods. Both aspects are
discussed in depth further down.
AstraZeneca investing assessment is influenced by subjective considerations
 Global Exposure as danger administration is a critical component of AstraZeneca's ability
to conquer it on schedule. It's hard to assess hazard levels because AstraZeneca has
investments in different nations, and an epidemic may harm any nation.
 Item excellence and client support as checking the standard of the firm's merchandise or
operation is among the most important quantitative elements. Covid 19 has a significant
impact on the firm's selling and profitability, and maintaining item reliability and client
support is critical in such epidemic (Donald, 2016). At this moment, any tiny error
committed by AstraZeneca, or any violation of any regulation for this epidemic that must
be followed, could cause consumers to withdraw the confidence, affecting AstraZeneca
in the big scheme of things.
 Social consequence as in the instance of AstraZeneca, the social factor is the perception
of talents dearth, the influence of removing, or relocation issues. It therefore can't speak
for the individual objectives of the executives and supervisors. As a result, subjective
criteria are helpful in determining the influence of fresh targeted audience or clients on
the business. Any consumer, whether from a current or emerging industry, is an
advantage, and their opinions, joy, and pleasure have an impact on the organization.
 Reputation as often in each company actions are chosen to sustain and enhance the
business status in the perspective of all of the customers. Upon achieving a given degree
of recognition at a local and global degree, the firm's brand and picture are extremely
important.

Investing evaluation is influenced by statistical parameters
There seem to be various approaches (quantifiable criteria) for measuring the impact of
investing assessment, the most successful of which are NPV and payback period. As a result, the
assessment for both methods for the AstraZeneca corporation is as follows (Grohmann and
Schoofs, 2018).
Payback period
Year
Annual
Cash
Inflow
Annual Cash
Outflow
Annual Net Cash
flows
Cumulative
Cash
Inflows
0 0 180000 180000 0
1 100000 800000 -700000 -700000
2 400000 200000 200000 -500000
3 500000 0 500000 0
4 800000 0 800000 800000
5 800000 100000 700000 1500000
Calculation of Net Present Value
Years Net Cash
Inflows Discounting @ 8% PV of Cash Inflows
1 -180000 0.926 -166680
2 -700000 0.857 -599900
3 200000 0.794 158800
4 800000 0.735 588000
5 900000 0.681 612900
Net Present Value 593120
Calculation of Internal Rate of Return
Discounting Factor @8%
Years
Cash
inflows
Discounting Factor
@8%
PV value of cash
inflow
1 -180000 0.926 -166680
2 -700000 0.857 -599900
3 200000 0.794 158800
4 800000 0.735 588000
5 900000 0.681 612900
Total Cash inflows 593120
Discounting Factor @15%
Years
Cash
inflows
Discounting Factor
15%
PV value of cash
inflow

1 -180000 0.87 -156600
2 -700000 0.756 -529200
3 200000 0.658 131600
4 800000 0.572 457600
5 900000 0.497 447300
Total Cash inflow 350700
SWOT analysis-
Strengths Weaknesses
Decisions are made quickly, and proper checks
are completed quickly. In developing
countries, there is a strong marketing and R&D
activity.
The effectiveness is impacted by item
withdrawal. Trademark litigation and price
difficulties have an impact on reputation.
Opportunities Threats
It could take advantage of its excellent position
in international economies. The world
demographic is elderly.
Detailed rules for pharmaceutical research.
Good medications are being developed by the
industry.
PESTLE analysis-
Political Economic
BREXIT has created instability. Public
expenditure on medicine has improved as a
result of medical initiatives.
Federal initiatives to reduce medicine costs.
Earnings on R&D investments in the drug
business are decreasing.
Social Technological
As the populace ages, there may be more
prospects for development. The number of
individuals dealing from ailments induced by
urban living has increased significantly.
Creating a technology platform to encourage
high-quality production. Research in this area
and counterfeiting will be aided by advanced
computer and monitoring technologies.
Environmental Legal
AstraZeneca is taking a leading part in the
conflict against worldwide environmental
disruption.
Pharmaceutical clearance has been denied by
governmental organisations. Modifications to
the business taxation level in the United States.

Analysis of danger and yield, as well as its possible implications on
AstraZeneca's fiscal results:
Risk and return
Yield on investing is defined as the profit computed as a proportion of the upfront outlay.
It could take the appearance of a number or a letter. Income and investment income are both
included in earnings. Rewards include both the actual revenue from a venture and the rise in the
worth of cash. The fundamental portion or the recurring net profit from the deal, which could be
in the kind of royalty or payouts; and the change in the stock's value that is generally alluded to
as the financial profit or reduction (Hicks, 2019). The AstraZeneca-4D Pharma PLC merger has
highlighted a plethora of concerns. Amongst these are comparative edge, investment strategy,
and the growth of elite challengers. The Trade Law, as written, is unable to immediately tackle
the issue of combines and purchases. In the big scheme of things, eliminating these global
winners would be bad to the society.
The merger of 4D Pharma PLC and AstraZeneca is another a further red flag for
the legislative apparatus. He goes on to say that the final goal is to verify "equitable
competition." Unfair competition tactics are employed to promote particular products above
others. As the business strives to access and build its business in India, AstraZeneca's spending is
getting increasingly visible. It takes time for taking on leadership in foreign country and study its
workplace environment and organisational techniques. India confronts numerous obstacles, both
legal and economic in character, as is generally recognized. AstraZeneca will be required to
spend taxation as terms of the contract, and that might be a fiscal major hurdle. There are several
obstacles, but the scarcity of resources is a big draw for any investment (Islam and Awal, 2020).
Diversity decreases or removes volatility in the following ways
The initial step AstraZeneca may take is to address employee concerns and enhance Hrm
administration procedures. By increasing its investment in 4D Pharma PLC, AstraZeneca has
much more chances to deploy its money in India. India is a booming business for innovative
goods and activities to be introduced. By actively adopting ecologically responsible measures,
AstraZeneca could achieve a significant contribution. The main step AstraZeneca may take is to
address employee concerns and enhance Strategic hr processes. For the corporation's progress,

AstraZeneca should now strengthen its online sales webpage and solve technical challenges.
Every transaction represents a modest portion of the overall in a well diverse portfolio.
As a result, every vulnerability which leads the price of a particular item or collection of
commodities to increase or decrease would have a minor influence on the total investment. Firm-
specific actions could have a positive or negative effect on the pricing of certain assets in an
investment throughout period. As the investment grows bigger, the chance decreases (Killins,
2017). As a consequence, it's reasonable to assume that in excess capital, favourable and
unfavourable aspects would balance themselves and have zero effect on the overall danger
profile. Furthermore, diversification a transaction lowers the volatility connected with that as
well. Diversifying is a way to decrease uncertainty riskiness by combining a variety financial
choice inside a holding. It could be distributed both inside and throughout commodity types. It
could likewise be regionally varied by participating in both local and international industries.
Effect on monetary results
Diversity has a favourable relationship with corporate success, implying that diversity adds
benefits for the company. Likewise, there is indeed a link among company performance and total
diversity, meaning that good outcomes contribute to more diversity. Diversified has a beneficial
relationship with a company's fiscal success, meaning that diversity provides worth to the
organisation. Likewise, there is indeed a positive correlation among company profitability and
general variety, implying that excellent result will lead to higher diversifying. The next step
AstraZeneca may take is to address employee concerns and enhance HR administration
standards. For the firm's progress, AstraZeneca should therefore strengthen its online marketing
portal and manage issues associated. Monetary success could be measured by analysing critical
accounting parameters such as assets ratio, payout ratio, business profitability, earnings per
share, and so forth (Lloyd-Sherlock, Penhale and Ayiga, 2018).
Conclusion and recommendation:
In this assessment and suggestion for the possible funding campaign to assist the company
thrive in the post-COVID-19 climate as a finance director of the AstraZeneca firm. Diversity is
among the effective approaches to survive in the post-Covid-19 climate, as all of the estimates
and data reveal, and it also increases the decent earnings. The Covid-19 epidemic has a negative
impact on the global business, including Employment, earnings, and profits. The majority of

businesses are altering their sales and advertising strategies. Marketing activity, as well as brand,
capital, and company diversity.

REFERENCES
Books and journals
Abadie, R., Brown, B. and Fisher, C. B., 2019. “Money Helps”: People who inject drugs and
their perceptions of financial compensation and its ethical implications. Ethics &
behaviour. 29(8). pp.607-620.
Boggio, C., Moscarola, F. C. and Gallice, A., 2020. What is good for the goose is good for the
gander?: How gender-specific conceptual frames affect financial participation and
decision-making. Economics of Education Review. 75. p.101952.
Donald, E., 2016. Helping Patients and Families Understand the Financial Impact of End-of-Life
Care. AJN The American Journal of Nursing. 116(12). p.11.
Grohmann, A. and Schoofs, A., 2018. Financial literacy and intra-household decision making:
Evidence from Rwanda.
Hicks, J. B., 2019. Examining the Relationship between Leadership Styles, Environmental
Uncertainty, and Financial Performance in Health Care (Doctoral dissertation,
Northcentral University).
Islam, M. A. and Awal, M. A., 2020. Factors Influencing Physicians' Clinical Decision-making
at Upazila Health Complexes in Bangladesh. Global Journal on Quality and Safety in
Healthcare. 3(4). pp.125-133.
Killins, R. N., 2017. The financial literacy of Generation Y and the influence that personality
traits have on financial knowledge: Evidence from Canada. Financial Services Review.
26(2). pp.143-165.
Lloyd-Sherlock, P., Penhale, B. and Ayiga, N., 2018. Financial abuse of older people in low and
middle-income countries: the case of South Africa. Journal of elder abuse & neglect.
30(3). pp.236-246.