Strategic Management Report: AstraZeneca and Competitive Strategy

This report provides a comprehensive strategic management analysis of AstraZeneca, a multinational pharmaceutical and biotechnology company. It begins with an introduction highlighting the impact of the COVID-19 pandemic on the pharmaceutical industry and AstraZeneca's role in developing vaccines. The main body of the report applies the Ansoff matrix to assess AstraZeneca's internal analysis, examining market penetration, market development, product development, and diversification strategies. It then delves into the company's existing business strategy, focusing on its core treatment areas, global presence, and commitment to innovation. A VRIO analysis is conducted to evaluate AstraZeneca's resources and capabilities, determining their value, rarity, imitability, and organization. The report also discusses sustainability, incorporating relevant business, market, environmental, and financial theories. Key findings, including the company's focus on innovation and R&D, are presented, followed by recommendations for improvement, such as strategic investments and marketing efforts.

STRATEGIK
MANAGEMENT ASTRA
ZENECA

TABLE OF CONTENT
Introduction......................................................................................................................................1
Main body........................................................................................................................................1
Astra Zeneca and its sector..........................................................................................................1
Existing business strategy of company........................................................................................2
VRIO and strategic capabilities...................................................................................................2
Sustainability...............................................................................................................................4
Key findings.................................................................................................................................6
Recommendations........................................................................................................................6
Conclusion.......................................................................................................................................7
REFERENCES................................................................................................................................8

Introduction
Coronavirus has changed business for almost every industry. The pharma industry is under
constant pressure and are evolving with recent trends. Company like Astra Zeneca also framing
new business strategy in order to survive in such situation. Astra Zeneca is the multinational
pharma and biotechnology company. It has wide products which is helpful in fighting with
various diseases. Company got more famous during pandemic because of its major contribution
in COVID19 vacancies. This report will discuss company’s internal analysis relating to internal
approach of business strategy. Further existing business strategy and VRIO has discussed. This
report will also discuss sustainability, findings and recommendations.
Main body
Astra Zeneca and its sector
Ansoff matrix will be applied to ascertain internal analysis. It is an important instrument
created to work with and control company in choice relating to business development. It has four
elements:
Market penetration:
This strategy refers to growth with existing products in the existing market. Expanded creation
limit will permit AstraZeneca PLC to rise at more customer inside a same market. Expanded
appeal and competitive pricing inside a same market will prompt expanded deals and use – and
subsequently a higher market penetration.
Market development:
In this strategy existing products is launched in new market. The AstraZeneca PLC ought to
invest in research and development to see conceivable new business sectors and customer
portions for its products. Worldwide extension will permit AstraZeneca PLC to get to various
shopper gatherings, and increment its portion of the pie.
Product development:
This strategy refers to launch new products in the existing market (Namugenyi, Nimmagadda
and Reiners, 2019). The AstraZeneca PLC can present adjustments and update in existing
products to offer buyers new and improved contributions. The AstraZeneca PLC participates in
needful associations to investigate alternatives for item advancement too. The company can
likewise participate in new item advancement through presenting diverse quality items in a same
market.
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Diversification:
The strategy refers to launch new products in the new market. Vertical diversification for the
AstraZeneca PLC imply searching for development and business advancement by presenting
new products under existing product offerings. The AstraZeneca PLC can likewise enhance into
turning into a conglomerate by taking part in an alternate business by and large (ANSOFF
MATRIX 101., 2020).
Existing business strategy of company
Driven by innovative science and our enterprising society, AstraZeneca is centered around
the conveyance of groundbreaking meds that are fuelling development and contributing worth to
patients. The essentials of organization methodology are clear. They focus on creative science
and administration in the three fundamental treatment zones: Oncology; Renal, Cardiovascular,
and Metabolism; and Respiratory infections. Sponsored by a worldwide presence, with strength
in Emerging Markets, especially China, they have an arrangement of forte and essential
consideration drugs. the world around is changing and the weight of sickness is expanding.
AstraZeneca is reacting by expanding center around development through advancement - being
more quiet driven, accomplishing more with innovation, computerized and information, and
propelling seriously bleeding edge science. Dispatching a consistent progression of forte
consideration items, adjusting the organization's memorable strength in essential consideration.
Remaking the R&D motor through advancement and particular science upheld by co-area
of our groups and better admittance to universally perceived science bunches. Significantly
working on the business, improving efficiency and building a culture that supports long haul
achievement. Utilizing business advancement and acquisitions to convey potential gain to the
organization's base arrangement and to fortify the pipeline further. We will change the manner in
which we complete innovative work. To help accomplish reasonable logical authority and
improve pipeline profitability, company will reshape the impression and advance the working
model. The formation of independent biologics and little atoms biotech units is intended to
improve advancement and speed up dynamic.
VRIO and strategic capabilities
This Analysis of AstraZeneca PLC will take a gander at every one of its inward assets
individually to evaluate whether these give sustained competitive advantage.
Valuable:
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The financial resources of AstraZeneca are exceptionally important as these assistance in putting
into outer freedoms that emerge (VRIO Analysis of AstraZeneca PLC., 2018). These
additionally help AstraZeneca in fighting outer dangers. AstraZeneca PLC's employees are a
significant asset to the firm. A huge part of the labour force is profoundly prepared, and this
prompts more beneficial yield for the association. Distribution network is a valuable asset. This
aides it in connecting with an ever increasing number of clients. This guarantees more
noteworthy incomes for AstraZeneca PLC.
Rare:
The financial resources of AstraZeneca PLC are discovered to be rare. Solid financial assets are
just controlled by a couple of firms in the business. The workers of organization are an rare
resource. These employees are exceptionally prepared and talented, which isn't the situation with
workers in different companies. The better remuneration and workplace guarantee that these
employees don't leave for different firms. The distribution network of company is an uncommon
asset. This is on the grounds that contenders would require a ton of investment and future time
up with a preferable distribution network over that of AstraZeneca PLC.
Imitable:
The financial resources of AstraZeneca are exorbitant to imitate. These assets have been
procured by the company through delayed benefits throughout the long term. New participants
and contenders would require comparable benefits for an extensive stretch of time. The
employees are likewise not expensive to imitate. This is on the grounds that different firms can
likewise prepare their workers to improve their abilities (Dalpiaz and Parente, 2019). The
distribution network is likewise exorbitant to imitate by rival company. This has been created
ov`er the course of the years continuously by AstraZeneca PLC. Contenders would need to
contribute a critical sum in the event that they are to emulate a comparable dispersion
framework.
Organisation:
The financial resources of AstraZeneca PLC are organised to catch esteem. These assets are
utilized deliberately to put resources into the correct spots, creating utilization of open doors and
combating dangers. Employees of company are also well organised and they know their
responsibilities and work hard to achieve organisational goals. The distribution network of
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AstraZeneca PLC is organised. AstraZeneca utilizes this organization to contact its clients by
guaranteeing that items are accessible on the entirety of its outlets.
valuable Rare Imitate Organisation
Financial resources Yes Yes No Yes
Employees Yes Yes Yes Yes
Distribution
network
Yes Yes No Yes
Swot summary:
Here the strength is the innovative work has an advancement of new item and
improvement in a biological industry (Vlados and Chatzinikolaou, 2019). And yet the weakness
is to putting away more cash to the R and D. AstraZeneca has unloading their cash to R and D
focus instead of other department. So it should adjust the speculation to other business and other
factor. And yet, it should focus is R and D to improve new medication pipeline. There are gaps
in the product range sold by the company. This absence of choice can give another competitor a
traction on the lookout.
Advanced technology is biggest opportunity for company. Diminishing expense of
transportation on account of lower dispatching costs can likewise cut down the expense of
AstraZeneca PLC's items in this manner giving a chance to the organization. Increase in
competitors are the threat to the organisation. The organization can confront claims in different
business sectors given - various laws and consistent changes in regards to item principles in
those business sectors. Lack of talented work force in certain worldwide market addresses a
threat (Yudiono, Wilopo and Iqbal, 2019).
Sustainability
Business theory
Henri Fayol's Principles of Administrative Management:
He analyzed an association through the point of view of the supervisors and the circumstances
they may experience. He accepted that company has six central functions: to forecast, plan,
organize, command, coordinate and control. He created 14 standards of organization that layout
how managers ought to arrange and associate with employees. His complete standards, which
have become central rules in a significant number of the present work environments, cover
points going from the importance of keeping an organized and clean office to the benefit of
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advancing worker activity and collaboration. This can help company to become more
competitive.
Market theory
The market framework permits people to trade services and products deliberately, in view of
costs, without knowing each other (Butarbutar, Tricahyono and Djatmiko, 2017). Markets
improve expectations for everyday comforts. To start with, for any condition of information and
innovation markets accomplish an effective designation of assets. Adaptable costs and
competition convey messages that achieve this. Consumers choose the goods and services that
fulfill their needs most successfully. Firms pick the sources of info and yields that boost the
worth of what is created. Laborers pick the occupations that best apply their gifts and interests to
social requirements.
Environmental theory
In Florence Nightingale's Environmental Theory, she recognized five natural components:
outside air, unadulterated water, neatness, effective waste or sterilization, and light or direct
daylight. In the period that we are in today, we are confronted with ecological conditions past
what should be characteristic and sustaining (Nam and Yi, 2020). A portion of the worldwide
natural issues we have now are an unnatural weather change, atomic radiation dangers, human-
made ecological catastrophes, and contamination. From these events, Nightingale's model
appeared to be ideal. Her idea of giving natural air to patients is being referred to with the
present industrialization impacts. Notwithstanding the investigation of the idea of ventilation, it
isn't generally helpful for all customers to have outside air.
Financial theory:
Finance is the way toward diverting cash from savers and financial backers to substances that
need it. Savers and financial backers have cash accessible which could procure revenue or profits
whenever put to gainful use. People, organizations and governments should get cash from some
outside source, like advances or credit, when they need adequate assets to work (Palazzo and
Ferri, 2020). Finance manages how and why an individual, organization or government obtains
the cash required – called capital in the organization setting – and how they go through or put
away that cash.
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Key findings
The Astra Zeneca has advance more item and converging with other driving drug
organization for growing all the more new item and meds for driving future market among
competitor. The AstraZeneca has building up its more significant new item advancement and
improve drugs pipelines (Phadermrod, Crowder and Wills 2019). There is utilizing more
innovations and utilizing growing more natural labs for building up its new prescriptions for the
item. Company can follow market penetration strategy so that company can earn profit with
existing product and within existing markets. To achieve competitive advantage with this
strategy company can come up with competitive pricing strategy. In order to attract more
customers company can also cut down the prices of their products. Company can also decrease
operational costs to increase their market share. As if the costs will decrease then sales of the
company can be increased.
Company should adopt this strategy because this helps in reaching towards different
groups of customers. Organisation can also develop leverage by diversifying distribution
network and supply chain (Chintalapati, 2020). After adopting this strategy company can identify
additional features of the existing products for the existing markets. Astra Zeneca should also do
advertisement so that customer can know about their products.
Recommendations
AstraZeneca the drug business has putting away more cash to innovative work, it intends
to they are unloading their just to explore itself. It should likewise consider the advertising office
to improve their powerful deals development. The R and D office should run over more
medication pipeline sicknesses like pig pipe, disease, cardiovascular, gastro intestinal,
contamination, neuroscience and respiratory and aggravation. The R and D should utilize more
agri item as opposed to the synthetic substances. So it prompts greater quality to the patients. The
organization should likewise centre on marketing department of the fact that there is more
contenders to this industry. The organization should utilize advertising methodology viably
which are considered into this review.
Reinforce portfolios with more expansion As a method of tending to the huge expansion in drug
disappointments in the previous years, organizations ought to grow better risk evaluation and the
board measures. All pharma organizations should remove their most vulnerable mixtures, with
trained and consistent portfolio the board (Popenkova, 2017). They should zero in on the leaders
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with a couple of remote chances that may create better yields. Measure the patient experience
Although a moderately modest amount of drug organizations measure the patient experience, it
can have astounding advantages.
Conclusion
Through this study it can be concluded that Astra Zeneca is the big name in pharma industry
but company is also exposed to various risks and also enjoy opportunities. Report has discussed
ansoff matrix through this model it is analysed that how launching new products can beneficial
for the company. Along with new products doing business in new markets can also help to get
increased profits. Company is focusing on launching new products in the market in order to get
competitive advantages. Company also adopted competitive pricing strategy so that they can
increase sales which results in increased revenue. Report has also evaluated VRIO capabilities.
Employees, distribution channels and financial resources are valuable for the company.
Although employees can be easily imitable but financial resources and channels of distribution
cannot easily imitate. Technology is the opportunity for them whereas threat in the increased
competition. The strength of company is they have strong research and development department.
Its weakness is there product portfolio is not wide so that is why competitors arise here. Report
has also given findings and recommendations. To identify the sustainability different theories are
analysed which are business, financial, market and environment.
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