Strategic Management and Sustainability Report: AstraZeneca

This report provides an in-depth analysis of AstraZeneca's strategic management and sustainability within the UK and global pharmaceutical industries. It begins with an introduction to strategic management and its importance, followed by an evaluation of the pharmaceutical industry using Porter's Five Forces model and an industry life-cycle framework. The report then delves into AstraZeneca's competitive environment, employing PESTEL and SWOT analyses to assess its strengths, weaknesses, opportunities, and threats. The analysis covers political, economic, social, technological, environmental, and legal factors impacting the company. The report highlights key aspects such as the impact of COVID-19, generic medicine competition, and the importance of research and development. The conclusion summarizes the key findings, emphasizing AstraZeneca's strategic positioning for future sustainability.

Strategic Management
and Sustainability
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Table of Contents
INTRODUCTION...........................................................................................................................3
MAINBODY....................................................................................................................................3
Evaluate with evidence the UK and global pharmaceutical industry.........................................3
Evaluate with evidence the competitive environment of AstraZeneca.......................................5
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11
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INTRODUCTION
Strategic management is a a business practices and a process that are being employed in a
company for retrieving their internal and external environment, that would assist business in
making best use of the available resources in best possible optimised may in order to made
sustainable strategic decision. AstraZenca in an eye for sustainability strategic management has
done fairly good historically and exposes that they are heading to position themselves for
sustainability strategically for future. Pharmaceutical industry in UK and on global level has seen
increased number of changes due to rising patent risks and low marginal product return
(Gassmann and et. al., 2018).
Thus, following report would throw light on the pharmaceutical industry and their contribution
in UK and Global level by using Porter’s five model and industry life-cycle framework. Even so,
to predict and demonstrate the competitive environment of AstraZenca, PESTEL and SWOT
analysis were being issued in order to determine the competitiveness s of the company in the UK
and global level.
MAINBODY
Evaluate with evidence the UK and global pharmaceutical industry.
AstraZenca is one of the greatest name in the pharmaceutical industry not within the UK but
also on global reach, AstraZeneca a biologics company aims to make live people better by way
of offering affordable medicines with innovation and research and development practices.
Porter’s five forces model
Porter’s 5 model would help pharmaceutical company with a strategic business management and
for to examine the industry in which their companies are operating to demonstrate what can be
done to get competitive edge over there exacting rivalries.
 Threats of entry post by new competitor-
In a pharmaceutical industry there are high entry barrier because of extensive cost in the research
and development of a new drug, there is need of lot of investment in reserach and development
for drug that might be work or not so there are high risk new company. There are also a certain
government regulations such as FDA (Sun and et. al, 2021). For a new company there is need for
extensive regulatory approval and to get patent of license and also an effective network of
distribution which make it is more difficult for a new company to enter, that is why threats of
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entry of new entrance is low to moderate where existing company like AstraZenca and Pizer are
doing outstanding.. This is because the exacting company like AstraZeneca end Pfizer are
enjoying the large economies of the scale and have the high capital requirement to fulfil nation
and global demand..
 Degree of rivalry between the exacting companies –
Generally, pharmaceutical industry are categorised as highly complex and competitive industry,
research and development and they continue development of the medicine with the innovation a
result of the intense competition with exacting companies. The level of rivalry between the
existing companies are very high after the outbreak of COVID-19, for instance both Pfizer
AstraZeneca are continuously working on introducing COVID-19 vaccine not within the UK but
for the global use for sustainable business strategy management (Stanczyk-Hugiet, Licharski and
Piorkowska, 2019). To be ahead in competition all drugs companies have tried to become global
leader innovative and generic medicines along with the COVID-19 vaccine and other consumer-
health goods.
 Bargaining power of the buyer-
Basically in a pharmaceutical industry it consists of many buyers such as hospital, patients,
doctors, drugstore and medical stores and etc. It has been found that buyer can shake the business
by seeking lower prices by looking for high quality and better services. Bargaining power of the
hospitals and drug stores are fairly very high as they purchase in large quantities and when they
are not getting the desired prices from the company they are likely switch to the other brand of
the company (Ding, 2018). Generally regular patients have lost bargaining power due to price
increasing in generic medicine, therefore bargaining power of buyers is medium pharmaceutical
industry.
 Bargaining power of supply
Bargaining power of the supplies are competitively low in pharmaceutical industry, although
drugs manufacturing company would require varying types of organic chemical and there are
already last number of chemical supply a present in the in within the industry so instead of
buying chemicals at high coast pharmacy company willing to switch to from one company to
another. Due to this aspect most of the supplier are establishing strong relation with their offering
brand because a drugs manufacturing company will buy in the bulk, therefore supplier are
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always trying to offer lucrative offer to the buyer in order to continue their supply to the
pharmaceutical company
 Familiarity of substitute product:
Almost it has been found that the basic substitute in pharmaceutical industry are generic
medicines, these are copies of branded or earlier a patent medicine which are no differ from
brand names. Generic medicines are often less in price in compare to brand medicines. Therefore
threat of the substitute are quite high (Hering and et. al., 2018). This is because is generic
medicines are easily available in the market and they have same composition as the branded
company has which would affect the sales of the existing brand. Therefore in UK or in the global
level there is tight competition between the Generic and branded medicines.
Industry life cycles
After the COVID-19 outbreak, pharmaceutical market is very competitive, beside that many
more competitors are coming into the industry and offering product cheaper and more quality
table in compared to AstraZeneca, for example Pfizer. Other companies are continuously add
innovating feature the product efficiency process which picture in the growth stage. AstraZeneca
is a company with raging history, but for now a promising future by focusing and restricting the
COVID- 19 vaccine. AstraZeneca is a merger of 2 companies that is Swedish pharmaceutical
company with UK pharm company Zeneca and this is the largest ever European merger at that
time. In the last 5 years there have been many competitors in Pharmaceutical industry in UK
such as Glaxo Smith Kline, mark and company and Pfizer over doing the same thing which are
doing which has boosted the competition, customers are being intense in the pharmaceutical
industry therefore the strategy for company during the maturity stage become one of the survival
state of a business (Durand, Paugam and Stolowy, 2019). In maturity stage pharmaceutical
company like AstraZeneca has continuously differentiating their models through patent
technology so that the market is knowledgeable about the differences in the company’s product
and then competitor’s product.
Evaluate with evidence the competitive environment of AstraZeneca
PESTEL analysis
 Political-
Political and government has major influence on the pharmaceutical industry, AstraZeneca is
operating in a drugs and biological manufacturing which often for centre this kind of government
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such as intellectual property protection rights imposed by the political to safeguard their
developing knowledge an innovation idea of the company. Bureaucracy and interference in drug
manufacturing is majorly high by the government. Tariff law indicted by the government after
the takes BREXIT has probably rises in the value added tax and new health and safety law are
also there is possible to international law which can consequently increases the cost and can
direct impact on the way AstraZeneca is being operating its business since (Willigers, 2020).
Government taxes in policy would have direct play affecting the buying power of the individual
in the UK. Also, there is political stability in the UK therefore, for the existing company like
AstraZeneca who is doing business since a long time there is time to time government support
when company doing something for the mankind. Economic
AstraZeneca has affected by the economic factors after implementation of Brexit from the cost of
living under growth of the economy not within the UK but also on global level. AstraZeneca
interest level is lowest one since they are operating for more than 40 years, consequently this will
affect the rate of consumer spending on goods and services. The rate of interest influence the
economy through its impact on the collective demand this is because the higher the interest rate
there is low rate of aggregate demands. Although a fall in the interest rate automatically rises up
the value of the asset which means that consumer become wealthier and they spending limit is
rising up. Unemployment rate in UK is fairly low, but the company is facing stability issue of
exchange rate of host country currency (Breen, Papalexi and Xie, 2020). AstraZenca have wider
economies of scale which made it more contributing to the nation economy and GDP and also
when they are supplying the COVID-19 vaccine to the world there is high profit margin which
can be utilised in the re-construction of the UK economy which is brutally affected after the
COVID-19 outbreak. Social
Social factor include the change in the demographic and lifestyle trend in which people live
think and work. People are switching more towards the generic medicines because of the low
price characteristics. Although, after the outbreak of coronavirus in UK and on the global level
people are becoming more health conscious and demands of immunity drugs conception are
being rising. The acceptance of particular vaccine or a drugs define only can be deliver it meet
or satisfy the beliefs and attitude of the population therefore for trading on a global level
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AstraZeneca need to understand the customer and insight and then offer their product in target
market.
 Technology
Notably, in a pharmaceutical industry technology are being playing a vital role as it is the most
important way of being competitive in the market dome. Technology is the driving force of the
globalization which has increases the economics of scale in context of AstraZeneca. In order to
achieve business success through increasing efficiency despite of a complex process company
need to invest more on the research and development and focus on continuous improvement on
the technological aspects by combining innovative application with modern technology in
biological and medicine Manufacturing way (Kaplan and et. Al., 2020). When pharmaceutical
company like AstraZeneca combine innovative application of model technology with that
exciting production system they are strategically oriented in order to achieve economies of scale
goal and also deliver efficiency in their production system.
Technology is the core essence offer drugs manufacturing company because coronavirus
outbreak has rapidly increases the demand of the various drugs for trade for the cure meant of
this deadly disease and also for various healthcare issues. AstraZeneca were planning to
manufacture COVID-19 vaccine and for that company needed a high first class technology
which would produce the desired doses of the vaccine in order to fulfil vaccine demand not win
not within the UK but also on global level.
 Environmental-
Different nations have difference norms of environmental standard which can influence the
profile, performance and competitiveness of AstraZeneca when operating on those nations.
There are various laws in UK regulating environment pollution among which air in water
pollution regulations in drug manufacture are major one. People and government has hope from
the big companies like AstraZeneca for waste management in healthcare sector. Company need
to address climatic issues and should focus on recycling in order to lower down the emissions of
carbon reduce greenhouse effect. For that company like AstraZeneca should develop attitude
towards and ropes renewable source of energy in there plants to set an example to other
companies also (Ang and et. al., 2020). Moreover, when operating on global level company
made to be aware about the climatic change and terrain variation because this can impact
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performance of company so company need to access understand about the various environmental
concern and factor.
 Legal-
Legal factor includes the certain legislations and regulation which were enacted by home
country or on the country which company is merging or partnering. For a pharmaceutical
company there is need to undertake and implement current legislation to ensure its accountability
incept in healthcare. There are certain laws regarding the intellectual property which bind a drugs
manufacturing company to not copy the knowledgeable idea of patent brands otherwise legal
action will be initiated against them, that would affect both performance and the market image of
the company. AstraZeneca have more funds on the research and development of the various
drugs and to conduct research they need to get legal approval for either for human trial or to
undertake permission for researching the biological virology. There are various laws
pharmaceutical industry such as antitrust law in healthcare sector which was implemented not
within the UK but on overall every nation where company were operating.
SWOT analysis
Strength
 AstraZeneca has global presence and
the company is active on more than
100 countries with employee strength
over 62,000 peoples.
 AstraZeneca is a company with no debt
and the company with zero promoter
play
 The core strength of AstraZeneca its
exciting pattern and intellectual
property rights which are protecting
their brands sing from me number of
years (Yáñez and et. al., 2019).
 AstraZeneca have good business and
this is practices in their amazing market
with made quick decision due to
Weakness
 Financial planning is not done properly and
efficiently this is because the current asset
ratio and the liquidity ratio of the company
is high which means that company can use
cash more efficiently then what it is doing
at the current time.
 AstraZeneca also faces legal related issues
because of using the to the patent
technology and idea which affect the
company brand image who stop
 There is shortage out drugs crisis which
can be found in case of Caftan.
 There are found gap in the product range
the product sold by the company, this
shortage of selection can provide a new
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diligence processing.
 Other core strength of the AstraZeneca
is its product portfolio which include
oncology cardiovascular infection
respiratory information and also
COVID-19 vaccine and medicines
which differentiated its product from
there competitor.
competitor a grip in the market.
Opportunity
 AstraZeneca have greater opportunity
in the emerging market where demands
of the COVID-19 vaccine is high and
company can gain pharmaceutical
share within the targeted country.
 The innovative technology can cater
opportunity to AstraZeneca for
practicing differentiated pricing
strategy within the new market which
is developed due to COVID-19
outbreak.
 Telemedicine sector is another stage
where company should target to gain
competitive advantage over their rival
partners (Drobyazko and et. al., 2019).
 Company should made appropriate
cash planning and to create stable free
cash flow, when cash are managed
properly they can be re-invested in the
innovation and research &
development perspective for the
company.
Threats
 There are number of competitor rising in
the pharmaceutical industry in the industry
life-cycle not within the UK but also on
global level.
 Shortage of the raw material can impose a
threat for AstraZeneca profitability.
 There is shortage of the skilled labour
because of rising pat scaled level which
can impact the competitiveness and
company cannot grab the opportunity to
fulfil the demands of various nations.
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CONCLUSION
Therefore, from the carried out study it has been concluded that strategic management is
more important for a pharmaceutical industry due to rising opportunity and emerging
market. For the market development and new product Development a business require to
deliver strategies for their business. Following report has discussed the competitiveness of
the pharmaceutical in which it has been concluded that entry of new entrant due to
intellectual property rights and extensive investment in the research and development that a
new entrant cannot make and counter with incumbent industry.
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REFERENCES
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A Review of Research Landscape and Implementation Barriers for Circular Economy
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Sustainability and Beyond. In Global Pharmaceutical Policy (pp. 29-52). Palgrave
Macmillan, Singapore.
Ding, B., 2018. Pharma industry 4.0: Literature review and research opportunities in sustainable
pharmaceutical supply chains. Process Safety and Environmental Protection, 119,
pp.115-130.
Drobyazko, S., and et. al., 2019. Factors of influence on the sustainable development in the
strategy management of corporations. Academy of Strategic Management Journal, 18,
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Durand, R., Paugam, L. and Stolowy, H., 2019. Do investors actually value sustainability
indices? Replication, development, and new evidence on CSR visibility. Strategic
Management Journal, 40(9), pp.1471-1490.
Gartenberg, C.M., 2021. Purpose-driven companies and sustainability. Available at SSRN
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Business?. In Leading Pharmaceutical Innovation (pp. 17-39). Springer, Cham.
Hering, S., and et. al., 2018. Can lifecycle management safeguard innovation in the
pharmaceutical industry?. Drug discovery today, 23(12), pp.1962-1973.
Kaplan, A., and et. Al., S. and REG Adherence Working Group, 2020. GINA 2020:
Opportunities and challenges for primary care. The Journal of Allergy and Clinical
Immunology: In Practice.
Stanczyk-Hugiet, E., Licharski, J.M. and Piorkowska, K., 2019. THE DYNAMICS OF INTER-
FIRM RELATIONSHIPS ALONG THE INDUSTRY LIFE CYCLE: THEORETICAL
BACKGROUND AND CONCEPTUAL FRAMEWORK. Transformations in Business
& Economics, 18.
Sun, G., and et. al, 2021. Current State-of-the-art In-house and Cloud-Based Applications of
Virtual Polymorph Screening of Pharmaceutical Compounds: A Challenging Case of
AZD1305. Crystal Growth & Design.
Willigers, B., 2020. How advanced analytics create (Core) value: an example from a
pharmaceutical company, AstraZeneca. Journal of Business Analytics, 3(2), pp.122-
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Yáñez, S., and et. al., 2019. The sustainability report as an essential tool for the holistic and
strategic vision of higher education institutions. Journal of Cleaner Production, 207,
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