Strategic Analysis Report: AstraZeneca's Business Environment

This strategic analysis report examines AstraZeneca, a multinational pharmaceutical and biotechnology company. It begins by describing the business environment using Porter's Five Forces and PESTLE analysis to identify opportunities and threats. The report then analyzes AstraZeneca's internal environment, evaluating its resources, key competencies, strengths, and weaknesses, and identifies core competencies through SWOT and VRIO analysis. The report also includes a stakeholder analysis and concludes with a strategy evaluation, providing a comprehensive overview of AstraZeneca's strategic position within the healthcare industry. The analysis covers various aspects including market dynamics, competitive landscape, and the impact of political, economic, social, technological, environmental, and legal factors.

Strategic Analysis Report

Contents
MAIN BODY...................................................................................................................................3
1. Describe the business environment, identify a number of opportunities & threats for assess
organisation attractiveness......................................................................................................3
2. Examine the resources & key competences of a company to identify a set of the Strengths
and Weaknesses as well as identify core competences..........................................................8
3. Strategy Evaluation..........................................................................................................11
CONCLUSION................................................................................................................................3

INTRODUCTION
Strategic Analysis is encompasses about such procedures that involves researching about
a company where business environment that it enhance to run business. Strategic analysis is
important to create strategic planning to enhance decision making or smooth working within
industry. It further involve procedure of conducting research about company operating
environment that effective formulate strategy along with identifying data relevant towards
company’s strategy (Bajcar, 2019). Defining the internal and external environment to be
detailed analysed. To better identifying about company research project towards better
environment operating to formulate strategy. By implement strategy generate opportunity and
challenges.
In this following report, the organisation AstraZeneca is the British and Swedish
multinational pharmaceutical and biotechnology company along within headquarter at the
Cambridge biomedical campus in Cambridge, England. They are having portfolio of product fo
major about effective product of disease in areas of considering oncology, cardiovascular,
gastrointestinal. Infection or inflammation. It possibly best known for its involvement
developing the Oxford- AstraZeneca COVID-19 vaccine. As per report consist about topic
related with external and internal environment along with stakeholder analysis. In external Pestle
and porter five forces by evaluating Swot analysis and VIRO analysis along with stakeholder
analysis to elaborates TOWS for better financial resources.
MAIN BODY
1. Describe the business environment, identify a number of opportunities & threats for assess
organisation attractiveness.
Porter Five Forces: This is an framework that comprise about method of analysation competition
of business. It outline industrial organisation where economics where it derives about five forces
that determine towards better competition for implementing competitive economics intensity.
Further it also help to analyse about the threat to substitute, power of buyers and suppliers along
with attractiveness towards an industry of better profitability (Bryson, 2018). In following there
is Porter five forces context with AstraZeneca company are:
Threat of new entrant; The level is having low in healthcare innovation and new ways of doing
things as allows pressure on AstraZeneca plc for abiding lower pricing strategy, decreasing costs

and enhance to provide optimum opportunity towards the customer. AstraZeneca plc has to
manage to all these challenges or create effective barriers to comprise better safe guard. Through
innovative product and services, as new product not only brings new customer and old consumer
towards better fold old customer reason to buy AstraZeneca. To building having capacities in
which they are spending about money on research as well as development. through new entrant
are less to which likely to enter are more dynamic company where AstraZeneca plc defining
towards better standard regularly.
Bargaining of Supplier: As all most companies within better healthcare industry to buy their
raw material from numerous suppliers. Suppliers in dominant position can decrease margin
where there is high bargaining power of suppliers which help to earn market (Bushuyev and
Verenych, 2018). The powerful suppliers within in health care sector use to negotiate power to
exact higher pricing better firm health care field. Through this higher power of bargaining power
can decrease the lower profitability.
Bargaining power of buyers: The power of buyer is higher in AstraZeneca plc where it often
demanding lot. As they want to buy the offering available through paying the minimum price as
possible. This put a pressure on AstraZeneca plc is better generate profitability within better long
run. The smaller and long run for AstraZeneca customer are vert powerful. As the higher the
bargaining power towards customer and their ability to seek increasing discounts and others.
Thus, thus high bargaining power helps to retain customer but it reduce the profit margin level.
Threat to substitute: The product or service means to similar customer are need to measure
different way for health care industry where their productivity suffers. As the threat of substitute
of product and service is very high and it value to offer value proposition that uniquely different
present offering towards industry. The threat of substitute product is having range of service is
very high as it offer proposition which always unique and different from present offering of
industry.
Rivalry among with competitors: The rivalry is within among existing player is an industry as
it intense where it drive prices and decrease overall profitability. The AstraZeneca plc operates
through very competitive healthcare industry. It encompasses to undertakes for overall long term
profitability within organisation. Through analysation within all competitive forces AstraZeneca
plc strategies which help to gain complete picture through what competitive with better emerging
opportunity.

Evaluation:
As per above Porter Five forces is explained through AstraZeneca company that tend to
summarised on the basis of healthcare basis. In that bargaining of buyers and having rivalry
competition both factor creates implication for AstraZeneca company (Saha, Sarmah, and
Modak, 2018). One is try to reduce the profit margin because the power of bargaining power is
high and other having high health care competition such as National Health Services is one of
biggest competition. Thus, these two factor need to overcome by AstraZeneca focus on their
product quality within better manner.
Pestle Analysis :
The Pestle analysis is majorly describes about framework of macro environment factor
which macro environment used to scanning component strategic approach. The factors are
political, economical, social, technological, Environmental and legal all these assort to mapping
external market opportunities and challenges at the time of investing or establishing business
towards internationally.
As in following there is analysation of Pestle which emphasis about AstraZeneca Company
perspective along with elaborate positive and negative impact of each factor.
Political Factor: This factor is majorly emphasis about set of rules and regulation related with
corporate governance as well as it generally handle through political strategy. The government
can having major influence through eating out industry and overall laws along with rules are
passed out through parliament. The types of laws which can affect to eating out industry. As
AstraZeneca is having office of their pharma medical in United Kingdom. Through this they
would get benefit such as foreign trade policy, exchange policy and many more. But there is
uncertainty from Brexit Market where it not allows to trade or not promote to sell pharma
medical service of AstraZeneca in European region (Hamilton and Webster, 2018). Thus, the
government regulation and legal issues have a direct impact on way to AstraZeneca operates
effective manner. On the basis of action planned through United kingdom government where it
reflect in environment reflects. Government taxation policy about to increase which affected
towards buying power within individual.
 Economic: AstraZeneca is also having impacted through economical factor nationally
and globally, either an economy is in boom, downturn or recovery will also generate

customer affect consumer confidence and behaviour. The related factor have affected the
purchasing towards power potential customer and state of internal and external economy
within short and long term. Some of elements comes under economic factor such as
Economic growth, interest rates, inflation rate, budget allocation, recession and
employment per capita income. It is been calculated that rate of interest affect the
economy through it influence within higher rate of interest rate and lower rate of
aggregate demand.
 Social: According to this factor this will involves about measure demographic changes
trends in such a manner live,; work or think better cultural aspects of thee macro
environment (Khan, 2018). Some of element are affect through better customer needs
and size of effective potential market such as population increase rate, age distribution,
internal or external attitudes to change. In perspective of AstraZeneca company they can
appoint their customer on the basis of age, gender etc.
 Technology: The complexities of accomplishing business growth through enhanced
efficiency, effectiveness and better competitiveness which combined with the modern
application towards modern technology. It majorly generated awareness of both
technologies where business managers towards better strategically oriented concept for
planning as well as management of AstraZeneca company. As this company not used to
technological based resources where the industry emphasis about speed technological
disrupts industry. Through getting slow speed will give provide more time consuming
and if the speed would in constant the profitability would provide positive outcome.
Thus, impact of cost structure in health care industry.
 Environmental: On the basis of different marketer are having different norms and
regulation related with environment standards this can raise impact towards better
profitability on organisation in specific marketers. Even within a country often states
about significant laws and liability law. Similarly there is lot if European countries gove
healthy taxes that breaks companies that specifically operates renewable sector. For
AstraZeneca entering into new business or market in which business need to start existing
market firm to should carefully to evaluate better environment standard. Some of
required factor to gain profitable. As the recent technology are Artificial intelligence,
high technology impact on producing offering.

 Legal: There are number of countries where the legal framework about institution which
can reboot through enough protect the rational property in which suitable form of
industry. A firm should careful evaluate towards better leads measure organisation
system in property right of company. A firm should cautiously assess before entering
such market which can leads towards overall competitive edge. There is some of legal
factor enhance AstraZeneca leadership must include while entering towards new market
are: Anti trust, in the healthcare industry as well overall towards country, discrimination
laws, employment laws, copyright etc.
Positive and negative impact of Pestle Analysis:
Pestle Analysis Positive Impact Negative Impact
Political It allows different type of policy
which can generate tax policy,
environmental regulation, trade
restriction as well as political
stability.
The only negative impact is
uncertainty of policy fluctuation
as well as Brexit Market in UK.
This can reduce the growth of
AstraZeneca company.
Economic Some of factors are economic and
growth, wages, minimum wages,
working hours, credit availability
around of cost of living.
The negative aspect can be
concluded on inflation,
recession as well as long term
challenges for company such as
inflation, recession. Downfall
economy.
Social This factor is consisting about to
select people through
demographic factor such as age,
gender, caste etc.
The negative impact is that
Astra Zeneca cannot creates
products and services of heath
care as per to the taste of
customers always (Kreutzer,
2019). As it leads ti negative
impact to business organization
Technological The positive impact of this factor
to this company is that,
management is using effective
There is excessive use of
technology could raise more
challenging towards Astra

technology as well as they
upgrading their engineering's and
focuses on scanning check out
methods, computerised stock
commanding and many more
useful technologies in their
company as it leads to positive
impact .
Zeneca Company.
Environmental The positive part of environment
is that company from health care
or other company generate better
work outcomes through CSR
activities and better contribute
towards society.
The negative impact of
environment allows Astra
Zeneca as they some use drug
chemical for manufacturing
medicine which is need to ba
approved from UK government
otherwise it creates major
consequences.
Legal The plus point of legal factor is
that in health care every part there
is involvement of legal practise
such as employment law, health
base laws.
The company begins to
neglecting about to facing
challenges along with better
issues regarding with consumer
law where Astra Zeneca not
follows these laws which creates
implication towards their
growth.
2. Examine the resources & key competences of a company to identify a set of the Strengths and
Weaknesses as well as identify core competences.
Internal environment: It is refers about the culture, members where then events and factor within
an organisation that has ability to better influence for enhancing decision of the company
perspective. About the forces or condition within surroundings within boundary in internal
environment of the organisation. There are many sources to mapping internal environment

related information such as Swot Analysis and VIRO analysis. In following there is analysation
of Swot and VIRO detailed manner.
Swot Analysis: This is framework to measure about brand, company with strength, weakness,
opportunities and threats highlights. In which strength and weakness are come under internal
factor and opportunities and threats are undertakes external factor.
Strength Weakness
 They have rapid decision making and
streamlined due to diligence
processing.
 Better research and development team
who constantly measure about presence
of emerging market as well as
scrutinise information related with
opportunities and threats.
 Active in over 100 countries with
having employing through over 60,000
people.
 High investment in research and
development with having more than
12,000 manpower in research and
development as well as other operation
department too (Levchenko, 2018).
 AstraZeneca company’s related product
portfolio includes cancer,
cardiovascular, gastrointestinal,
infection and information medicines.
 Due to high raise of Covid-19 situation
AstraZeneca have shortage of drug
within shortage crises within in case of
Cefotan.
 Product discontinuation which affect
the performance.
 Due to company faces legal issues
within product patent and pricing
having issues affected image.
Opportunities Threats
 This can be leverage its strong presence
within emerging towards market.
 Increasing of importance within
biosimilar market.
 As there in recent times of spreading
Coronavirus where the shortage of
vaccine could create chaos to
AstraZeneca company team.

 There is high range of global ageing
population.
 There is some limitation towards
government from United Kingdom for
drug development restriction.
 Huge competition can be raised in
upcoming days or years for Covid
drugs from AstraZeneca competitors
are Amgen, Genentech and Teva
Pharmaceuticals.
VIRO Analysis:
This analysis is basically used by business purposes and it also having form of part in firm’s
strategic scheme. The basic strategic process that any firm begin within vision statement nd
continues on through objectives along with internal and external analysis. It stands for Valuable,
Rare, Imitable and Organised.
Basic Valuable Rare Imitable Organised
Human
Resource
Yes Yes Yes Yes
Brand
Awareness
Yes Yes No Yes
Access to cheap
capital
Yes No No No
Supply Chain
Network
Yes No Might be yes or
no
Yes
Intellectual
property rights,
copyright and
trade.
Yes Yes Yes Yes
Evaluation:

Human Resources: This resource factor in VIRO can be calculated as better competitive
advantage where it is very important for AstraZeneca company where it valuable, rare, imitable
and organised.
Brand awareness: This is creates more value to business in terms of growth and well as help to
generate about productivity. But it is not sustainable competitiveness because the brand
awareness of AstraZeneca company where it is not imitable or not can be acquired by other
company.
Access to cheap Capital: It is stats about accessing normal capital where the investment is lower
price. It is very less sustainable competitive advantages where it only valuable from company at
the time of financial crises (Macnamara and Gregory, 2018). But it is not calculated as rare,
imitable and organised.
Supply chain Management: According to this aspect it creates major role in Astra Zeneca
company supplies of raw material. For this situation, it is valuable and organised but not rare and
imitable.
3. Strategy Evaluation
By using TOWS analysis for mapping about internal strength and Weakness along with
external opportunities and threats n perspective of Astra Zeneca company.
Tows Analysis External Opportunities External Threats
Internal Strength To become more efficient
leverage health care in
competitive market.
Astra Zeneca can create better Covid
vaccine for people as to reduce this
devasting situation.
Internal Weakness Some certain limitation to not
use harmful drugs, but
AstraZeneca company can
opted legal drugs to make
prominent type of medical
facilities.
The process of product supplies
discontinuation creates implication
within challenges in development.

Stakeholder Analysis: This is procedure of systematically collection along with analysation
qualitative information to better determine interest which should be taken into account for better
developing implement policy and program.
In following there is AstraZeneca healthcare stakeholder analysis are:
 Insurance industry: It is currently raising funds as premium and strict requirement are
keeping many people from obtaining better health insurance. The nature of insurance
company is profit driven through effective major focus on profit as well as adequate
hardship of obtain hardship in financial. This causes insurance companies to determine
strict regulation against pre-existing condition to mostly healthy individual towards better
selected of their plans.
 Physicians: It is plays an important role for better ensuing about their patients receive
adequate better healthcare. Through it also help their patients to better controlling their
health care facilities. Utilising modern technologies which is suitable toward health and
AstraZeneca company can assort for their patients relief.
 Patients: It is also have an ethical responsibility towards growth for their growth own
heath is controlling towards costin (Neubert, 2018). While, it would be impossible to
implement a program that forced people to live in lifestyle which not suitable for them.
But that particular lifestyle is necessary and quite have reason to assume that life style in
better manner.
Power and Interest Matrix :
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The using of stakeholder which is depending about their power along within their interest within
the project. There are four grid in which high level shows trust within employers is more
stronger along with team member. It is area of external facilitator to construct through adding
value. Further in this, determine about high and low power affect to task and who is reliable
having high or low interest. People who are in high power they need to keep them satisfied and
high interest to keep informed.
High power- High Interest: These stakeholder are those who having authority to making
decision and have biggest impact towards their organisation or project. But it is essential to
maintain the stakeholder expectation. For example: for AstraZeneca company their high power
and high interest are Employees and Board of Director where their decision plays an important
role in health care services.
High power-Low Interest: As per in this situation stakeholder are those who need to keep them
in loop with what is happening on actual project. Although they have not interest in outcomes
which kept in the loop. The power of these stakeholder could be consider into negative way. For
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example: Astra Zeneca company suppliers, physician and government are come under this
stakeholder.
Low power- high interest: These keep to people adequately informed as well as and talk to
ensure about some major issues to ensure about to no measure are arising (Rieckmann, 2018). In
Astra Zeneca hospital their patients are commence into to arising. These people can often be very
helpful within detail of better project.
Low power and low interest: These can be monitor about people but it not spend time to
communicate in excessively.
CONCLUSION
From above report of Strategic analysis report evaluation is sumamarised about external as
well as internal to measure better competitive advantages. Ink external Pestle and Porter fice
forces in which these both help to measure about opportunities and challenges within health
care. Apart from it, Swot and VIRO analysis for internal assessment for mapping strength
weakness, opportunities and threats regarding health care. At last strategic evaluation is
highlight about towards measure stakeholder is consider through health care system.
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