Strategic Management and Sustainability Analysis: AstraZeneca's Case

This report provides a comprehensive strategic analysis of AstraZeneca, a multinational pharmaceutical and biotechnology company. It begins with an introduction to strategic management and sustainability, highlighting their importance in the current business environment. The main body of the report delves into various frameworks used to critically analyze the company and its sector, including PESTLE analysis, Porter's Five Forces, and strategic group analysis. The PESTLE analysis examines the political, economic, social, technological, environmental, and legal factors impacting AstraZeneca. Porter's Five Forces assesses the competitive environment, including industry rivalry, the threat of new entrants, the power of suppliers and customers, and the threat of substitutes. The report also explores the industry life cycle and strategic group analysis to understand the competitive dynamics and positioning of AstraZeneca within the healthcare sector. The analysis considers the impact of the COVID-19 pandemic on the company and its operations. The conclusion summarizes the key findings and implications of the analysis, emphasizing the importance of strategic adaptation and sustainability for AstraZeneca's continued success.

Strategic Management
And Sustainability
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Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Frameworks to analyze company and sector critically...........................................................3
The competitive environment of AstraZeneca.......................................................................6
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10
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INTRODUCTION
Strategic management refers to the ongoing of planning, tracking, analysis or assessment
of each necessity a industry needs to reach and achieve its objectives and goals. Changes in
environment of business will need firm to constantly access to their business strategies for better
growth. Sustainability mainly focuses on the meeting wants of present without compromising
capabilities of future generation to accomplish their needs. The basic concept of sustainability is
collection of the three main pillars that are economic, social and environmental, also known the
informally as a people, profits and planet (Alikhani, Torab and Altay, 2019). Below report is
based on AstraZeneca plc, this firm is based on British Swedish multinational pharmaceutical &
biotechnology organization located in Cambridge in the England. They are dealing in portfolio
products which are for major diseases in the area considering the neuroscience, respiratory,
inflammation, infection, cardiovascular, gastrointestinal and oncology. It has best involvement in
the Covid vaccine. This industry founded in 1999 and the founders are Leif Johansson and Pascal
Sariot. Below report includes different frameworks such as pestle, porter’s five force and
strategic group analysis which are helps in analyse the organization or sector in critical manner.
The competition environment of the AstraZeneca.
MAIN BODY
Frameworks to analyze company and sector critically
There are some effective frameworks are using in context to AstraZeneca company to
analyze the industry in depth manner and sector;
PESTLE ANALYSIS
It is explain the structure of factors which are based on external or macro environment
used in environmental scanning elements of the strategic management. There are some factors
are explained in context to AstraZeneca Plc:
Political factor: It play impotent role in determining the external factors that have impact of this
company’ profitability for ling term in market. AstraZeneca is running their healthcare in many
countries. Government of UK is very focused towards the health care system and company has
benefits from the government. Risk involvement is less in every country, tax rate are less in their
own country, before entering in other market company need to analyse the pricing regulations,
wage regulations, legal framework, level of corruption and many more (Batista and Francisco,
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2018). Due to covid government of UK take some strict actions for their people so that they can
safe. They announced lockdown at every area and provide people only some essential things to
break the covid chain. In context to this company, it is based on health care system so
government supports each health care sector so that they can find some solution to overcome
from this issue.
Economic factor: It is consider the economic condition of country which includes the
saving rate, inflation rate, interest rate, economic cycle and foreign exchange rate, these are
determine aggregate of investment, demand in economy. In context to AstraZeneca Company,
UK’s infrastructure quality is well improved in the healthcare sector, they have skilled and
experienced workforce for organization, their education level is very high in economy and their
economic growth rate is high. In current scenario due to the covid situation country face
challenges healthcare system because import and export activities are closed from other countries
and resources are available less in amount so this impact directly on healthcare sector due to less
resources they can’t work in proper manner. Every company’s work process become change and
employees are doing their job from home; it is very challenging for company and workforce to
managing work through phone calls or virtual meetings. This impact the economy system a lot in
monetary terms.
Social factor: This includes the cultures of society, population rate and many more. Due
to the covid pandemic education systems are operating their class from work through online
platforms so people are more focused towards learning something new and different. UK have
great culture in terms of their environment, gender equality and many more, they maintain their
culture in very right manner.
Technology factor: It includes the creation and innovation in technology. In context to
AstraZeneca company, there are lots of technologies are available for their health care system in
UK country and government also help them to import other new technology from different
country so that their health care system will more powerful for everyone (Brusca, Labrador and
Larran, 2018). Company makes some creations or innovations on the regular basis so that they
can provide effective and best services to society. In their sector there is less competition in
market. In covid situation they innovate and create lots of things to provide best services at
home.
Environmental factor: This includes the weather, climate changes, pollution and many
more. Due to the covid pandemic, every one stay at home and there is no use of transportation as
much so that pollution is become decrease, government focus on pollution and take some serious
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steps to avoid pollution in their country. They recycle the wastage to that they can create and
make something which can be a useful for society.
Legal factor: This includes the law, regulations, employment law, safety, data protection
and many more. In this pandemic government is more focused towards the health and safety law
to overcome from this pandemic and live their regular life. Their legal factor is strong and
effective for society. In lockdown many more are suffering from job issues and work problems
so that government give order to company to follow all the legal laws for better development.
Strategic Group Analysis
It looks at the players' positions in environment of competition and the highlight factors
that are determine a industry’s profitability, productivity as well as dynamics of competition of
an company. It attempts to the characterize business strategies of each important competitors
along the huge strategic dimensions. It is used to analyze the environment based on competition
or rivalry among the different competitors in industry. It assists to identify strategic direction of
direct rivals in sector. This will turn support shape strategic moves of business (Cavaleri and
Shabana, 2018). This group is created on the basis of lots of dimensions that are brand
identification, channel selection, quality of product, technological position, services, government
relationship and many more. In context to AstraZeneca company, through this company can
identify the competition around them so that they can improve more in market by taking some
steps and adopting different techniques to increase the productivity and performance rate of
business. In health care there is less competition so they have competitive advantage from other
companies.
Industry life Cycle
At phase where AstraZeneca Company is marketplace is more competitive or this trend
continues in early phase of maturity stage. As well many other competitors providing their goods
other firms continue service-differentiation procedures which begin in success stage. From past
five years there are lots of competitors are arrive such as the GlaxoSmithKline, Merck & Co. and
Pfizer who are doing similar to the AstraZeneca plc, this is characteristics of maturity phase.
With large number of the firms by producing the goods, competition for users becomes a quite
strong; strategy for company during maturity phase becomes survival, as lots of competitors will
ultimately withdraw from marketplace (Grainger-Brown and Malekpour, 2019). In this situation
AstraZeneca has sustained differentiating their concepts so that society is aware of differences in
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firm’s products or competitors’ goods. In covid situation this company have major involvement
in preparing the Covid vaccine and providing services to the people for their recovery.
The competitive environment of AstraZeneca
Porter’s Five Force analyses
This structure is method for examining competition of company. It draws from industrial
companies economies to the derive five forces which are determine the intensity based on
competition or therefore attractiveness of a company in terms to their profitability. Porter's Five
Forces based on industry analysis concept that assist to describe why different sectors are able in
sustain various levels of productivity and profitability. The concept was published in the Michael
E. Porter's book, " The Competitive business Strategy: Techniques for the examiner Industries or
Competitors" in the year of 1980. Five Forces concept is broadly utilize to examine the company
framework of a industry as well as business strategy. Porter identified the five patent forces that
are playing a important role in shaping each market or industry across, with other caveats. Five
forces regularly used to evaluate the competition power, attractiveness and profitability of a
company and market. There are five forces which are explained below as;
Competition in the Industry
The first of this five forces model defines to number of the competitors or their capability
to demean a firm. The huge the number of the competitors, with number of the equivalent
products or services they provide, the less significant the power of an organisation (Mahase,
2021). Buyers or suppliers seek out the firm’s competition if company are able to the give a best
deal and lower cost. Conversely, when the competitive rivalry is minimum, a industry has best
power to make some charges in higher cost or set terms of best deals to accomplish the higher
profit and sales. In context to AstraZeneca Company, they have less competition around their
business. In UK there are less rivalry in health care sector.
Potential of New Entrants into a company
A firm’s power is also impacted by force of the new entry into marketplace. The
minimum money or time it costs for the rivalry to enter a industry’s market or be an effectual
competitor, more an recognized firm’s standards could be a considerably weakened. A company
with effective barriers to a entry is model for active other firms within that company since
business would be a able to make some changes in prices or discuss in best terms. In context to
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AstraZeneca, there are less chances to entry of new health care company because for new entry
the legal procedure is very strict and lengthy because these type of organisation are directly
connected with the health of people and government do not take risk for their health.
Power of Suppliers
The second factor of this model address how simply suppliers are make up price of the
inputs. It is impacted by number of the suppliers of inputs of a services and goods, how exclusive
these inputs are as well as how much cost a firm to switch on the other supplier. There are fewer
suppliers to a company; more a firm would interdependent on single supplier. As outcome,
dealer has power or can make up input price or push for the other benefits in the trade (Nawaz
and Koç, 2018). On another hand, when there are lots suppliers and less switching costs between
the competitor suppliers, a firm can keep their input expenses minimum or increased its profits.
In context to AstraZeneca, the power of supplier is high because demands for health care are
always on high rate. In this Covid pandemic health care sectors have huge role in managing
people and their health. They work regularly to find some effective solutions for Covid to
recover the people and live their happy life.
Power of Customers
The capability that consumers have to drive the cost less and their levels of the power is a
single of five forces model. It is impacted by the how lots of buyers and users an organisation
has, how important every consumer is, as well as how much costing for a firm to explore new
users and marketplace for their results. A lesser or more powerful customer’s base defines that
every user has power to discuss for less cost or great deals. A firm that has lot, minor,
independent users will have easier time frame charging upper prices to enhance profitability. In
context to the AstraZeneca Company, the power of users is extremely high on rate. Because in
covid pandemic people wants to be safe from this virus and they take pre treatments to avoid
this.
Threat of Substitutes
The final factor of five forces concept focuses on the substitutes. Alternative services and
services that are used in area of workplace goods and services pretence as an threat. Firms that
are produce services or products for the which there is no close substitute will have power to the
rise cost or lock in positive terms. When the close alternatives are available, users will have more
option to forgo purchasing a industry’s goods and a firm value can be weakened. In context to
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AstraZeneca Company, there is no threat of alternative because health care systems are providing
services and treatment as per people’s budget and less costly.
SWOT Analysis
This analysis is strategic planning of technique utilized to support the company or person
identifies the strength, weakness, opportunity and threats which are related to the industry
competition and planning or project (Simandan, 2019). In context to AstraZeneca, their strength
is in R&D, marketing, managing the covid pandemic or sales that made them a co-worker of
option for the lots other firms in pharmaceutical based company or they are concerned in a huge
range of investigation collaborations or a wider number of the licensing based agreements along
with the university, learning place or company.
Strength:
R&D proceeds with the huge healing experience.
Broad physical treatment or beneficial areas
Active patent defence for the number of years on major products
Weakness:
Discontinuation of goods in latter steps of better development
Enhanced size or functioning difficulty makes the AstraZeneca fewer responsive
companies
They have less resources, due to the covid pandemic import and export activities are
close somehow.
Opportunity:
Falling development time frame through the flattering R&D collaborations based
globalization for the new drugs, medicine and products.
Marketing based agreements along with firm wishing to the take advantage of
AstraZeneca’s marketing basis Strengths, offering AstraZeneca profitable growth in procedures.
They have wider opportunity to provide services through application or some digital
platforms to reach maximum people.
Due to the Covid situation the demands for health care sector become increased.
Threats:
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Competition from goods similar to the AstraZeneca’s in R&D which are reach
marketplace close to and before the AstraZeneca’s services and goods. .
The new health emergency in different countries competition in the diverse regional
marketplace.
Due to the covid pandemic they have high competitors rate in market because government
allow all health care sectors for overcome from this virus.
CONCLUSION
It is conclude the above report, to analyse the industry framework company adopt some
theories and concepts so that they can analyse the external factors which are affecting their
business. As per pestle analysis external factors are favourable for company. strategic grouping
analysis helps to company in understanding the competitor’s strategies and concepts so that they
can measure the competition around them. Industry analysis is important to understand the
products and services of company in well manner so that company can improve that. Swot
analysis is essential for the understanding the internal based factors which are impact directly to
the business growth and productivity. Through all the analysis company can find out the best
solution to provide better services to customers and create less competition in market.
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REFERENCES
Books and Journals
Alikhani, R., Torabi, S.A. and Altay, N., 2019. Strategic supplier selection under sustainability
and risk criteria. International Journal of Production Economics, 208, pp.69-82.
Batista, A.A.D.S. and Francisco, A.C.D., 2018. Organizational sustainability practices: A study
of the firms listed by the corporate sustainability index. Sustainability, 10(1), p.226.
Brusca, I., Labrador, M. and Larran, M., 2018. The challenge of sustainability and integrated
reporting at universities: A case study. Journal of Cleaner Production, 188, pp.347-354.
Cavaleri, S. and Shabana, K., 2018. Rethinking sustainability strategies. Journal of Strategy and
Management.
Grainger-Brown, J. and Malekpour, S., 2019. Implementing the sustainable development goals:
A review of strategic tools and frameworks available to
organisations. Sustainability, 11(5), p.1381.
Mahase, E., 2021. How the Oxford-AstraZeneca covid-19 vaccine was made. bmj, 372.
Nawaz, W. and Koç, M., 2018. Development of a systematic framework for sustainability
management of organizations. Journal of Cleaner Production, 171, pp.1255-1274.
Simandan, D., 2019. Iterative lagged asymmetric responses in strategic management and long-
range planning. Time & Society, 28(4), pp.1363-1381.
Sullivan, K., Thomas, S. and Rosano, M., 2018. Using industrial ecology and strategic
management concepts to pursue the Sustainable Development Goals. Journal of Cleaner
Production, 174, pp.237-246.
Teece, D.J., 2019. A capability theory of the firm: an economics and (strategic) management
perspective. New Zealand Economic Papers, 53(1), pp.1-43.
Torjesen, I., 2021. Covid-19: AstraZeneca vaccine is approved in EU with no upper age limit.
Wise, J., 2021. Covid-19: New data on Oxford AstraZeneca vaccine backs 12 week dosing
interval.
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