Strategic Analysis of the Pfizer and AstraZeneca Acquisition Case

This report examines the proposed acquisition of AstraZeneca by Pfizer, a significant event in the pharmaceutical industry. It provides an overview of both companies, detailing their strategic positions and the motivations behind the potential merger. The report analyzes the challenges and issues faced, including political, economic, and human resource management concerns, as well as accounting and international business considerations. The analysis employs PESTEL and TOWS models to assess the macro-environmental factors and strategic choices. The report also explores alternative solutions and offers recommendations based on the findings, aiming to provide a comprehensive understanding of the acquisition's implications and potential outcomes. The analysis considers how the acquisition could impact market strategies and customer relationships, focusing on the need for quality products and effective management of employees.

Assessment
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EXECUTIVE SUMMARY
The organisations are having many employees and they are helping them to improve the
performance. They are having many methods to give good products to customers. The
organisations want to expand the business and they will acquire the organisation that will help
them to give good products. The acquisition is the one of the best methods to give products to
customers. The organisations should have to use methods that will help them in giving quality
products. They will have to increase the performance and make the products according to the
needs of the customers. The organisations are having employees that will help them in giving
good products to customers and they are affected by the decisions that will help the organisation
to improve the performance.
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Table of Contents
EXECUTIVE SUMMARY.............................................................................................................2
INTRODUCTION...........................................................................................................................4
Overview of the company................................................................................................................4
Analysis and findings.......................................................................................................................5
Strategic management issues face by the organization and its analysis with the aid of specific
model...........................................................................................................................................7
Alternative solutions to the problems and issues with the aid of theory..................................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12
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INTRODUCTION
The organisations in the pharmaceutical are having many employees and they help the
organisation in achieving success (Anwar, 2016). The organisations are having the issues and
challenges that are making them have a fight for the pipeline of drugs (Kolditz and et.al., 2016).
The organisation are focusing on cutting the cost and reducing the employees and they are also
spending less in Research and Development which is making the cost of the industry low. The
mergers and acquisitions are the important factors for the marketing of the organisation and they
are impacted by the external environment. The organisations have to give good products to
customers. The case study of Pfizer and AstraZeneca is on the mergers and marketing of the
pharmaceutical organisations. Pfizer is one of the largest pharmaceutical organisation of the
world and they are in 30 top companies in Dow Jones Industrial Average and it was founded in
1849 in UK (Lim and et.al., 2018). AstraZeneca is the 6th largest pharmaceutical organisation of
the world which was founded in 1999 in UK. Pfizer is having problems in developing new drugs
and they want to acquire AstraZeneca but they felt that the organisation is undervalued and they
are having problems with the strategies. The organisations are reducing the cost and they are
having less money and they are reducing the employees. They have acquired the organisation by
rescuing the employees, operations, taxes and they are having new drugs. The organisation will
have disruption in the pipeline of drugs and it will affect the customers. The organisation should
have the factors that are impacted by the decisions and they should help them in improving the
performance (Goss and et.al., 2016). The report includes the overview of the company and the
issues faced by the organisations, the problems of the organisation and the methods to give the
solutions, analysis and the findings of the organisation, the best fit for the organisations and
recommendations.
Overview of the company
The organisations have to improve the performance of the pharmaceutical companies and
they have to select the option for giving good products. Ian Read the CEO of Pfizer connected
with Leif Johansson the CEO of AstraZeneca on 26th April 2014. Pfizer was interested in
acquiring AstraZeneca and they were having the communication about the performance of the
organisation (Li and et.al., 2020). AstraZeneca felt that the option of Pfizer is not attractive and
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specific and they do not want to communicate with the organisation. They want the AstraZeneca
to have the independent business. The organisation was giving 30% of the cash and 70% of the
shares of AstraZeneca which was valued at Euro 46.61 and they were undervalued and they will
impact performance of the organisation. The AstraZeneca is focusing on the needs of the
organisation. They are having the strategy for biopharmaceutical business and in three methods
like oncology, cardio metabolism and respiratory. The organisations are focusing on the new
developing of the drugs and they are improving the performance (Lin and et.al., 2018). The
organisations in pharmaceutical are affected by the industry average and they will reduce the
performance of the drugs in the new products and they are impacted by the decisions of the
businesses (King and et.al., 2018). AstraZeneca is one of the worlds largest pharmaceutical
organization and they are focusing on the development, commercialization and discovery of the
prescribed drugs ad they are giving good products to customers. The Pfizer is having customary
diligence review, unanimous recommendations by the AstraZeneca for the acquisition for the
organisations, accept the offer and they will have to improve the performance (Tacconelli and
et.al., 2019). The UK pharmaceutical organisations are making them increase the needs of
customers. The organisations are increasing and they are affecting the business of the industry.
The organisations will help them increase the performance.
Analysis and findings
The Pfizer is acquiring AstraZeneca and they are having it for a $100 billion deal which
is focusing on the pharmaceutical industry and they will have to increase the performance
(Anwar, 2016). The organisation want to acquire because it will help them in giving good
products. They will help them in having customers. The problem is AstraZeneca felt that the
organisation was undervaluing and they were getting 70% in shares and 30% cash. They want
higher money and AstraZeneca is one of the largest pharmaceutical organisation. The Pfizer is
acquiring AstraZeneca because they will help in tax saving and reducing the cost of the
organisation (Conley, Wolcott and Wong, 2017). The business of the Pfizer is helping the
organisation in getting the customers and they will save the tax and increases the quality. They
will help the customers in reducing the cost and they will get drugs from the organisation.
The problem in the organisation is that they will reduce the jobs and they are making
people reduce the jobs. They are reducing the money in R&D and the organisations are having
customers that will help to improve the performance (Georgieff and Latsky, 2018). The political
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factors have an impact on the performance of the organisation. There are many factors that are
important for the organisation and they will help them in increasing the performance. The
political boundaries of the organisation are affecting the decisions of the organisation and they
are helping them in giving good products. The AstraZeneca will have to spend lower in tax and
they will help them in giving good performance (Kumar, Kumar and Amboy, 2019). The
financial factors are affecting the business of the organisations because the acquisition of the
organisations are involving cost and they will help in giving good products (Piscitelli, 2019). The
organisations will have to analyse the external factors that will help them in giving products that
are important for the customers. They have to analyse the factors that will impact the
performance of the organisation (Kokkoris and Valletti, 2020). The customers will get the
quality and they will get the drugs which are important for giving good services. The SWOT
analysis will help the organisation in understanding the strengths, weaknesses, opportunities and
threats. The organisation should have the external factors analysis that will help them in giving
quality products. The Pfizer should analyse the organisation and they should help them in
increasing the performance (ten Have, Martinez and Demertzi, 2016).
The organisations are having different factors that are helping them in achieving success.
They will have to give products to customers and the factors that will impact the performance
should be analyse. The organisations will have to increase the performance and they will have to
give products to customers. They want to have the business of the AstraZeneca and they will
have to give the quality. The organisation are focusing on the factors that will increase the
performance (Jansen, 2017). The organisations in pharmaceutical is affected by the decisions of
the organisations and the employees will help them in improving the performance. The Pfizer
wants to acquire the commercialization of the organisation and they want to have the drugs that
will help them in improving the performance (Petit, 2018). The decisions of the organisations is
impacted by the business and they will help in giving good products.
The organisations are having products that are helping them in improving the
performance (Rinaldi and et.al., 2017 ). They should analyse the factors that are affecting the
business of the organisations. The organisations are having the problems that are important for
giving good quality. They should help the organisation in analysing the factors that will impact
the performance. The organisations should reduce the cost and they will have to give good
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products. The organisations will have to give good products to customers and they will help them
in analysing the performance.
Strategic management issues face by the organization and its analysis with the aid of specific
model
S/N Functional Area Issues Theory's and models
used for problem
analysis
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1 Marketing
management
As marketing
management is about
planing for the
products and pricing
sraterges. In order to
get higher sales. Pfizer
main objective behind
the acquisition is to
make their marketing
strategy's more
stronger by reducing
the staff and
combining the
operation method, as it
was facing the
problem in new drug
production and
marketing
management
individually. So the
the politician concern
of the UK become one
of the biggest problem
in Pfizer marketing
system.
PESTEL and TOWS
model.
2 HRM Political agenda is the
biggest issue related
the employment laws,
for Pfizer HRM. As
they wanted the less
number of the
PESTEL analysis
model is used in this
problem analysis.
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employees for higher
profit, by removing
workers cost. Their
aim was to remove the
Astra Zeneca
employee's after
acquisition. Hut this
become the political
issue.
3 Economical Pfizer strategy's is can
be harmful for the UK
economical growth,
due to its lower
employee's paling.
PESTEL analysis
4 Accounting The major problem in
this sector was the
acquiring of the
commercialization
rights for the
purchases of
accounting adjustment.
TOWS model
5 International business For international
business company
need to mange all the
micro and macro
factors. The major
problem arise from the
international
businesses function is
political, economical
PESTEL analysis
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and legal
dissatisfaction.
Pfizer and AstraZeneca are facing the multiple issues in Marketing an Acquisition as it is
very important and impacting decision for the organization growth and success (Kathuria,
2016). There are the multiple external and internal factors which can be a causes of issue for any
organization discussion and decision so it is crucial to conduct PESTEL and TOWS analysis in
order to understand the issues along with the analysis of opportunity's and solutions, by
evaluating all the elements of organization and market industry.
PESTEL analysis
It is the strategical framework use to analyse the and mange the macro environmental
factors which effects the organisation management and strategical system. The macro
environment factors are political, economical, social, technological, environmental and legal.
Political- These is one of most important macro environmental element which highly
impact the organisation, growth, strategy's, planing and success (Hess, and et.al., 2017). This
basically involves the political agenda, political issues, lows and regulations related to the
organisation. In the case of Pfizer and AstraZeneca marketing an acquisition political agenda is
the biggest issue related the employment laws. As it was the aim of Pfizer in acquisition with the
AstraZeneca to reused the employees cost and increase the medical drug production along with
profit. But UK politician not getting agree on their decision (Morgan, and et.al., 2018).
Economical- For Pfizer economical macro elements are interest rate, foreign exchange
rate, saving rate and economical cycle which effects the decision-making of investment and
demand. So for the organisation acquisition with AstraZeneca it requires the satisfaction of UK
government economical factors. Some how there lower employees cost strategy is effecting the
economical growth rate of the country and this is its biggest drawback (Miravitlles, . and et.al.,
2016).
Social- It involves the social requirements, beliefs and attitudes of population which
highly effects the strategic planing of the Pfizer. Organisation have to take care of particular
target customers and their beliefs in order to get success in plan (Myhre, and et.al., 2020). But
company is facing employment protest from the side of public, which is the major issue of the
acquisition.
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Technological- In the developing market and growing population, technology is
developing highly and this can be a strength of every company to be very productive and get
profit if they can implement the updated techniques in the organisation. In terms of Pfizer
technology is disruptive for it as it is not giving time to cope with this (Masunaga, and et.al.,
2018). Organisation objective through acquisition with AstraZeneca is to get the technical
support of them for better growth.
Environmental- It involves the environmental factors safety standard's, environment
norms and every country have their own environment standards, which should we followed by
the company's. In case of the Pfizer for acquisition organisation need to focus on their
environmental laws and rules some how they are facing problems in UK to collaborate with
AstraZeneca (Garcia-Rivero, and et.al., 2017).
Legal- This includes the legal laws and rules of the particular place such as the
registration and business development permission laws, tax low, employment low health and
safety laws, and so on (Heres, and et.al., 2016). An to for the acquisition Pfizer need to follow
the legal factors of the UK and the employment low is one of the issue if they want to remove the
employees of the AstraZeneca after the acquisition.
Tows matrix
This the frame work which aid to analyse, develop, compare and the finally select the business
strategy's. It is modified framework of SWOT analysis which stands for threat, opportunity,
weakness, strength. It is highly essential tool of the strategy development and selection. As it aid
to analyse the exact issues and relevant solution or strategies according to it issues, for Pfizer
problem analysis and solution development this is the best theory (Timmins, P., 2020). Here is
the acquisition strategies is of Pfizer is analyses to identify the problems and issues of this plan
and to evaluate solution for it.
SO (Strengths/opportunity)- Pfizer is one of the largest pharmaceutical company of
the world and there are the multiple opportunities for more development of it such as the
innovation of the product business by the aid of organic growth and specialisation of science
model which can helps to produce customer required life saving medical drugs (Zeschel, E. and
et.al., 2015). They can use the their market leading position for their higher growth. From some
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past years Pfizer has been earned the higher growth and profit, due to the pricing strategy they
increased the price on their old successful drugs (Conley, ., Wolcott, and Wong, 2017).
WO (Weaknesses/opportunity)- Pfizer weaknesses are the developing growth of the
biological market as there are in the competitive market biotechnology is the field through which
multiple company's are successfully producing biological medical products, and these product
inhibit the growth of Pfizer (Glintborg, and et.al., 2018). Another weakness of the company is
their lass employees strategy in acquisition which causes the issue for accomplishment of
acquisition plan. Biological market is can be a best market segmentation opportunity for Pfizer
theough which they can achieve much more growth. With the changes of financial strategy's
company can make this possible, according to balances sheet company can easily develop new
biological products. Organisation can use the acquisition for use of staff too along with other
important resource of company in order to expend brand capabilities and revenues (Shaw, and
et.al., 2017).
ST (Strengths/threats)- Employees are one of the strongest element or factor of the
organisation, as Pfizer is having best qualified staff with innovative skills, who work harder and
creative to produce life saving drugs for the health care management system. But in their
acquisition strategy with AstraZeneca their major threat is employment laws and rules according
to which their acquisition strategy is not good for very one as company aim is to get more profit
and product development with the aid AstraZeneca tools and techniques and less employees cost.
So their less employees strategy is threat of their plan (King, and et.al., 2018). Company can
change this strategy for its benefits where they can use the complete staff of both organisation in
demographic growth of the company.
WT (Weaknesses/threats)- Pfizer is facing the financial issues from past five years it is
approximately lower than $6.96 billion. The financial weaknesses is can be a biggest threat for
organisation growth as it prevent the supply important resources (Katsanis, L.P., 2015). Financial
system of the organisation should be balanced properly before the rises of other problems.
Organisation need to be financially stable before the acquisition as it requires lots of financial
support.
Alternative solutions to the problems and issues with the aid of theory
Kurt Lewin three-step model
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