Strategic Management & Sustainability Report: AstraZeneca Case Study

This report provides a comprehensive analysis of AstraZeneca's strategic management and sustainability practices. It begins with an introduction to strategic management and its importance for business success, emphasizing the role of sustainability. The main body of the report delves into t...Read More

Strategic Management
& Sustainability

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Strategic analysis for businesses: ...............................................................................................3
CONCLUSION ...............................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Strategic management is about managing strategies for business which is related for
achieving business goals. It is about planning, analysing, managing necessary for businesses
which needs for achieving its goals. It helps businesses for managing business activities which
helps for better performance which helps for higher profitability for businesses. It includes
process for generating goals for viewing businesses more competitive. It helps businesses for
generating its goals, mission, vision. Sustainability for business is about how business has sustain
its activities for achieving generating goals. This report is about strategic management &
sustainability. The company which is includes for this report is AstraZeneca. It is British
multinational pharmaceutical business. It founded for 1999, headquarter situated for UK. This
report includes topics which is strategic analysis for businesses. Apart from this it includes topics
which is frameworks for analysis industry which helps for better performance which helps for
higher profitability for businesses (Adams and et.al., 2016).
MAIN BODY
Strategic analysis for businesses:
Impact of COVID-19 on AstraZeneca-
Like other pharmaceutical companies, there was a high-level of impact which was
created by COVID-19 on AstraZeneca. This is so because due to the impact created by the
pandemic and the subsequent lockdown which followed the company ran into losses. However,
with the use of strategic techniques and methods strategy formulation was done in a right way by
Astrazeneca. This helped a lot in ensuring that the company was able to use its strategies in the
right manner and therefore ensure that it manages out its needs and requirements in a proper
manner.
However, Since the company has been involved in the COVID-19 vaccine rollout, it has
ensured that it makes itself stable as compared to the other pharmaceutical companies in the
market. This will be quite helpful for it in ensuring that the impact of the pandemic was reduced
by it in the right manner. Therefore, it can be said that the COVID-19 created a very high-level
of impact on the company but with the use of the appropriate strategies and methods it was able
to come out of the losses it faced and with the vaccine rollout it aims to make itself stable in the
market.

PESTEL Analysis:
The company which is includes for this report is AstraZeneca. It is British multinational
pharmaceutical business. It founded for 1999, headquarter situated for UK. Here we are
explaining PESTLE analysis of the company. Which includes all the political, economical,
social, technological, legal, and environmental factors that impacts on the company.
Political factors:
Political factors are basically government's regulation and policy change impact on the
company. Astrazeneca, is providing it's products in more than 100 countries, so political stability
and government regulations of particular country impacts company's business a lot. When Brexit
war started among UK and other European countries, Astrazeneca had to face severe impacts of
that and it hampered it's business (Al Shobaki and Abu-Naser, 2016). This entity works with
army and aerospace and because of that it has a better hold on the political factors.
Economical factors:
Economical performance and stability of host country affects the company's business
such as inflation rate, consumer's purchasing power etc. Astrazeneca is better pharmaceutical
goods so it has all the high end customers (Baumgartner and Rauter, 2017). Company is working
better in most of the developing countries because of increasing earning power in urban areas in
the country. Unemployment and interest rates are some of the factors that make a huge impact on
the sales of the company (Engert, Rauter and Baumgartner, 2016).
social factors:
Social and cultural trends which are prevailing in the country can impact company's work
in many possible ways. Income distribution among people, workforce being ready to work in
certain circumstances are few social factors which might impact company businesses. New
entries in the pharmaceutical segment maybe a threat to company but this entity works in posh
and premium goods so it cannot be sabotaged easily.
Technological factors:
Company's connection with latest trends and latest technology is necessary for company's
overall growth. Astrazeneca is expected to invest in it's R&D to match up quality goods. There
are various company which wants to work with the pharmaceutical company to re-module the
outer structure of their goods so company will have to go with the current technological trends in

the market. This has introduce its various branches that is from next generation and possible to
provide an positive impact on the sales of the company.
Legal factors:
Legal factors include laws applied by the government in the nation that affect company's
business. In India there was a shit from BS4 to BS6 because of that company had to face
numerous difficulties. Legalities may also help company sometimes when company such as few
countries have introduced use of hybrid and completely laws in the country and Astraxeneca has
already introduce various goods for its businesses so it has increased it's sales (Garcia and et.al.,
2016).
Environmental factors:
Climate change, scarcity of the natural resources and awareness towards negative impact
on the environment are few facts that make a big impact on company's business (Domingues and
et.al., 2017). Pharmaceutical sector always has always been a threat to environment because it
affects the environment and increase global warming so company will have to work by keeping
that in mind.
Porter's five force analysis:
Porter's five force analysis explains five forces which might appear to be a threat to the
company in near future and stop maximisation of the profit of the company. These five forces are
buyer's power, supplier's power, competition in the industry, threat of new entrance and threat of
substitution.
The company which is includes for this report is AstraZeneca. It is British multinational
pharmaceutical business. It founded for 1999, headquarter situated for UK.
Buyer's power
Though Astrazeneca Plc is a huge pharmaceutical brand still people manage to bargain
and get products in a lower price which lessen the profit of the company. Buyer's bargaining
power makes a huge impact on the sales and profit of the company. Competitive companies are
going to be merged and customers may turn to them so company will have to provide better offer
and discounts to keep the customers stick with them and attract them. To keep the business
profitable these businesses will have to increase the number of customers. For increasing the
number of customers company should introduce new products in the market with the help of
R&D.

Supplier's power
If the suppliers are dominating it impacts company's profit margin which is not a good
sign. Astrazeneca being giant have numerous suppliers and because of that supplier's power does
not affect company's profitability. It is having more than 2500 suppliers at present, 100 of them
are it's strategic partners. A powerful supplier may extract higher charges from the company for
the supply. To avoid such circumstances company should create strong chain of supply.
Company should focus over cheaper substitutes available in the market for the raw materials. If
price of one of the specific raw material rises in the market company can use it's substitutes.
Competition in the industry
There are several companies in the UK market and though AstraZeneca is leader still
other companies give an intense competition to the businesses giant. Every now and then price-
wars take place among them and it affects company's profit margin. To tackle such situations
company is collaborating with it's competitors to acquire and increase market size. It is trying to
find effective solution to this high pressure of the competition in the industry. Company is
opening some new subsidiaries to give a hard end competition to the new rising companies in the
market.
Threat of new entrance
AstraZeneca is a very big name in the UK pharmaceutical market and no one else is in a
nearby competition with the giant. If any new company wants to enter the market then they will
have to put huge capital to give a slight competition to the company. So there is no big threat yet
to the business but may be in future some companies enter in the market and give a better for its
businesses goods. For that company has to keep innovating new products and invest in R&D to
tackle whatever competition may appear in the market.
Threat of substitution
When some new or existing company comes in the market and provide a cheaper or
sustainable options for your product it creates a threat of substitution to the company.
AstraZeneca provides a wide range of day to day and premium products to the customers.
Company is also engaged in providing substitute products for so many other products in the
market. In pharmaceutical industry innovations keep coming every other day so businesses is
trying to understand the needs of the customers. Company works on service oriented model

instead of product oriented model and it decreases the threat of customers moving to other
substitute of their products.
Strategic group analysis: It is about which includes players performance for competitive
environment & factors which managing businesses profitability (Hansen and Schaltegger, 2016)
(Hazen and et.al., 2016). It shows various elements for businesses which characterise strategies
for competitors which includes strategic elements. In context to it, the business runs
pharmaceutical goods it has various competitors. In COVID 19, it has increases its businesses for
it brand value which helps for its better performance which helps for higher profitability for
businesses. Strategic group analysis helps for assess group elements which views businesses
goals, mission, vision.
SWOT Analysis:
It is about internal analysis for business which includes strengths, weaknesses, threat,
opportunity for business (Jansson and et.al., 2017).
AstraZeneca PLC is most leading business for its businesses. It manages its prominent
performance for market by analysing the SWOT analysis. SWOT analysis is interactive process
which needs better coordination for various departments which includes production, marketing,
finance. SWOT analysis is framework which facilitates businesses for knowing its internal
strategic factors which is strengths, weaknesses, external strategic factors which includes
opportunities, threat. It is known as matrix which views SWOT matrix which helps for
generating profitability (Kurucz and et.al., 2017).
Strengths: It is most leading business for its businesses, AstraZenca PLC has various
strengths which generate its thrive for market. These strengths helps it for protect market share
for existing market, helps for penetrating for new market.
 High level for customer satisfaction: The company has dedicated customer relationship
management department which able for achieve high level for customer satisfaction
among customers & better brand image for potential customers.
 Successful track record for developing new products: It is about businesses has goods
innovation.
 Good returns for capital expenditure: It is successful for execution for new goods for
new projects, generate good returns for capital expenditure by generating more income
for its businesses (Missimer, Robèrt and Broman, 2017).

 It has successful track record for integrating complimentary businesses by merger,
acquisition. It successfully integrate various technology businesses for generating its
activities for build reliable supply chain.
 Strong distribution network: It has built more better distribution network which helps
for reach majority for its potential customers.
Weakness:
 There are gaps for goods range which sold by businesses. It gives choice which is less for
its customers.
 Not very good for goods demand forecasting which leading for higher rate of miss
opportunities compare for its competitors. The reason for why its days inventory is high
compare for its competitors is it is not very good demand forecasting it keeps less
inventory for storage.
 Its goods has success for sale but its positioning, unique selling point is not truly views
which affects its segment for its competitors.
 It is successful for integrating business for various work culture.
 Financial planning is not views properly. The current assets ratio, liquid asset suggest, the
business is able to using its cash for more better performance which helps for generating
income.
 Profitability ratio, contribution less for businesses (Missimer, Robèrt and Broman, 2017).
 Limited success for core business: It is most leading businesses for its business which
has issue for expanding business for various goods segment.
Opportunities:
 It has technology which gives an opportunity for AstraZeneca PLC for generating price
differentiation for new market. It will enables business for maintaining its loyal
customers for its great service.
 It reduces its transportation which is reason for less shipping prices which reduces its
goods costs which gives opportunity for businesses which helps for better performance
which helps for higher profitability for businesses (Seyfang and Longhurst, 2016).
 New customers which by online selling: It investing more money for online selling. It
opens new sales element for its businesses. Its businesses has leverage opportunity for
knowing its better service for customers which generating more income for businesses.

 Economic uptick & increase for customers spending is opportunity for capture customers
& its more market segment.
 Stable free cash flow gives opportunity for invest its goods department. It has
opportunities for it for open various goods for businesses.
 Opening up for new market by government agreement: The adoption for new
technology standard, government free trade gives it opportunity for increasing its
businesses.
 Lower inflation rate: The low inflation rate gives more stability for market, it gives
funds for less interest rate for customers.
 Trends for customers behaviour gives opportunity for open new market for businesses. It
gives better opportunity for businesses for generating more income, increasing goods
which helps for better performance which helps for higher profitability for the businesses
(Sroufe, 2017).
CONCLUSION
From the above report it has been concluded that strategic management is about
managing business activities for achieving businesses goals. It is about sustain growth for
businesses. It manages activities for businesses for generating more income for businesses. It
includes process for generating goals for viewing businesses more competitive. It helps
businesses for generating its goals, mission, vision. It managing businesses activities which helps
businesses for better performance which helps for higher profitability for the businesses.

REFERENCES
Books & journals:
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sustainability into strategic management: a literature review. Journal of cleaner
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Garcia, S. and et.al., 2016. Corporate sustainability management: a proposed multi-criteria model
to support balanced decision-making. Journal of Cleaner Production. 136. pp.181-196.
Hansen, E. G. and Schaltegger, S., 2016. The sustainability balanced scorecard: A systematic
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theory-driven research agenda. Computers & Industrial Engineering. 101. pp.592-598.
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Kurucz, E. C. and et.al., 2017. Relational leadership for strategic sustainability: practices and
capabilities to advance the design and assessment of sustainable business models.
Journal of Cleaner Production. 140. pp.189-204.
Missimer, M., Robèrt, K. H. and Broman, G., 2017. A strategic approach to social sustainability–
Part 1: exploring the social system. Journal of Cleaner Production. 140. pp.32-41.
Missimer, M., Robèrt, K.H. and Broman, G., 2017. A strategic approach to social sustainability–
Part 2: a principle-based definition. Journal of cleaner production. 140. pp.42-52.
Seyfang, G. and Longhurst, N., 2016. What influences the diffusion of grassroots innovations for
sustainability? Investigating community currency niches. Technology Analysis &
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Sroufe, R., 2017. Integration and organizational change towards sustainability. Journal of
Cleaner Production. 162. pp.315-329.