Multi-national organization that is an ideal candidate for acquisition - Research Paper Example

According to Miller, Vandome and John (2010) have reported that the company has furthered its growth in the foreign market and has branches in Sweden, United States, UK and other 100 countries. It is headquartered in London, UK. AS of 23rd December 2011 it had a market capitalization of approximately ? 39.5 billion. It has an operating income of US $8.15, a net income of US$ 6.33 billion, and 57,200 employees in the year 2012. AstraZeneca is involved in the development, manufacturing, and selling of pharmaceutical and biotechnological products.

According to Magidibe (2011) reported that the pharmaceutical industry is also risky because to develop a drug requires huge investments and out of the many thousands of discovered compounds. As a result, only one might be approved drug for sale with the failure rate being high and very difficult to get the return on investment. To venture into a foreign market requires a consideration of various factors. Cultural diversity plays a crucial role in the organizational structure of the business.

Cross-cultural diversity is emphasized as it helps create cohesion in the organization. To attain international business success, the organization must employ the services of the people in the nation you have established your business. This is leads to product diversity. According to McDowell (2011) found out that productive diversity refers to the business benefits that emerge through the employment of many different people. Such advantages are referred to as diversity dividend and comprise of: expanded global opportunities; an improved business to business relations; enhanced innovation and creativity; advanced communication between the parties; superior teamwork skills; quality customer service; and reduced workplace conflict.

For an organization to be effective in their translation of goals into results there must be an alignment between organizational structure and the business strategy. Alignment is attained when the shared beliefs, ways of working and values within the organization drive towards the realization of strategic objectives and goals. The pharmaceutical industry has many challenges if you want to establish the organization globally. It therefore needs a strategy in order for it to survive in the foreign environment.

According to Afuah (2009) is of the opinion that strategy is the actions taken by managers to attain certain goals and objectives of the firm. The key aspects of global strategies include: treating the global market as a domestic market; creation of a global marketing mix; creation of production and distribution systems; concentrating on the power brands. With my pharmaceutical company investing in a nation that we were not aware of the pharmaceutical industry, therefore the need to align with AstraZeneca.

The conduction of business analysis found out that pharmaceutical industry is characterized by rising consumer expectations and an ageing population which continues to create unmet medical needs. Cherubini (2013) argues that there are the enormous needs of the developing nations nearby a fundamental driver behind continued research and development (R&D) investment so as to create novel drugs. However, the costs of healthcare have consistently raised faster than GDP thus creation of an unsustainable situation in healthcare systems, whether it is publicly or privately funded.

Entry into a foreign market requires a strategy. The probable strategy to enter the European market is by utilizing