The Values in the Pharmaceutical Line of Business - Case Study Example

Strategic Business Analysis - A Case Study of AstraZeneca Executive Summary This case study has been analyzed from a very peculiar viewpoint, where the aim is to set things rolling as far as the related line of pharmaceutical business realms is concerned. The analysis section highlights the basis of the key opportunities and challenges that AstraZeneca faces at the present as well as the detailed internal and organizational analysis of the organization. The evaluation of the competitive advantage that can be achieved by AstraZeneca in the time and age of today is also discussed in detail throughout the length of this case study. Table of Contents Executive Summary 2 Table of Contents 3 Introduction/Background 4 Approach/Methodology 4 Analysis 5 Q1 - Key Opportunities and Challenges 5 Q2 - Detailed Internal and Organizational Analysis 6 Conclusion 9 Bibliography 10 Introduction/Background AstraZeneca is a world renowned pharmaceutical company that has made it big due to its relentless efforts and endeavors, which it has been doing for the last 10 years. Since the organization was founded in 1999, this year marks the basis of a decade long struggle that has seen a lot of happy moments for the sake of AstraZeneca. AstraZeneca came about with the merger of Sweden's Astra AB and UK's Zeneca Group plc. The portfolio of both the companies was indeed a point of advantage for the eventual merger. The new products in development were referred to as the 'product pipeline' which essentially boosted the business immensely. Approach/Methodology The methodology for AstraZeneca was based on a situation where a merger could yield long term benefits for the parent organization. The pharmaceutical line of business is a very sought after business today since it reaps the best returns in a short amount of time. What is needed is to ensure quality levels and to be on top at all times to remain motivated as a global leader. Analysis Q1 - Key Opportunities and Challenges The key opportunities and challenges that AstraZeneca faces in this day and age include the fact that it has to have a globally competitive strategy which can counter the pressures that it receives at the hands of the players which are already thriving big time within the related market domains. This would mean that the competition is cut throat and there is absolutely no room for leniency at any cost. It faces immense competition from Pfizer, Johnson and Johnson, Abbott Laboratories, GlaxoSmithKline, Novartis, Merck and Co. and Sanofi-Aventis - all of which are globally accepted players. However it also faces rivalry as far as its pertinent business undertakings are concerned from the local players that are thriving on the word of mouth realms and hence are penetrating strongly within the related markets (Kassirer 2005). The key challenges would be to make its basis strong so that AstraZeneca does not fall back at its infancy stage in the future. Also there must be proper emphasis on the factor that is related with its business strategy, which relies heavily on growing the business through strengthening of the already developed products and the ones that are in the pipeline, the delivery of what has been promised, the re-shaping of the business from time to time, and lastly the promotion of a culture that is socially responsible and accountable at the same time (Hosking 2002). AstraZeneca has to prepare a business strategy that is coherent, encompasses quite a few significant areas of business and undertakes measures to resolve disputes that have a long-lasting effect and consequence for the sake of the organization. AstraZeneca must know how to take care of its customers because this is an important yardstick when it wants to establish areas where it could build upon its basis in the long run. More than anything else, there is a need to discern the exact methodology behind AstraZeneca's policy towards attracting new customers and thus retaining them for longer periods of time. All these points are very essential as AstraZeneca tries its best to uphold its strengths and cash in upon the opportunities that come its way. These opportunities would in essence pinpoint the need for having a solid foundation of AstraZeneca within the global business domains and hence the competitive business environment would not pose as a huge problem in the long run. The challenges will keep on appearing with newer competitors coming to the fore every now and then. Q2 - Detailed Internal and Organizational Analysis An internal analysis of AstraZeneca suggests that its business strategy is on the right track as far as long term goals and objectives are concerned. These have come about with a basis for strengthening the pipeline of new medicines, the delivery of full potential for all its marketed medicines, the re-shaping of the business on a proactive basis and indeed the promotion of a culture that would take into account the elements of a socially responsible and accountable citizen within the related spheres of life and amongst the organizations that have a similar work regime. More than that AstraZeneca is a company that has more than 65,000 people on board in nearly all major continents of the world. The 26 manufacturing sites within the 18 different countries signify that AstraZeneca is doing something worthwhile for the sake of its employees and is assuring them the best work regimes which could be made available to them. Its vision is geared up in such a way that the employees understand the dictum of the organization and thus gives in their best, so much so that they have made AstraZeneca a name to reckon with, as far as being one of the largest pharmaceutical companies in the world is concerned. This provides an area of commitment where the employees understand that they are a part of the global hierarchy of pharmaceuticals which have made it big immensely and thus could contribute towards the field of health in the broader perspective (Walley 2004). It is a well-known fact that the pharmaceutical companies in the time and age of today are doing exceptionally well, and because of this reason only the very best are able to get recruited within such companies. AstraZeneca is undoubtedly one of the biggest names in the related business domains and hence the employees have a sense of attachment and belonging with the company in a very effective manner. This paints a picture of commitment and trust that is shown by the employees towards their parent organization and also suggests the type of commitment that is envisaged by AstraZeneca from its own people. The benefits that they receive on the job as well as the perks and privileges are due to their hard work and growth patterns which they have been demonstrating for a long period of time now. Hence the reason that AstraZeneca is a name that has a huge following in the different continents of the world. The budget allocation within the R&D zones is suggestive of the fact that a lot of significance is paid on the premise of bringing about a positive change internal to the organization. The growth basis of the business would eventually come about in a manner that is thought of by the company's top management and there is no doubt that the internal organizational hierarchy is following a set pattern - a dictum which reaps rich dividends for AstraZeneca in the long term scheme of things (Cassels 2005). As far as the organizational analysis is concerned, one must comprehend the fact that AstraZeneca has done quite a lot within the global business domains to make a name for its own self. This is the reason why its name is taken alongside the very best within the related business settings of pharmaceuticals. AstraZeneca has built its business strategy in line with the world's benchmarks which are present for the pharmaceuticals and the manner in which these could be exploited upon in a positive way in the times to come. The competitive advantage is usually gained over a period of time and AstraZeneca has done much more than it has the relevant resources. However it needs to back up its work consistently so that it can achieve success within the related organizational contexts and be a force to reckon with, as far as the pharmaceutical line of business is concerned, globally. The financial analysis of the organization is similarly something that holds a lot of value for the business processes and undertakings. This is because the financial basis embodies the need for having a clear cut perspective on the part of AstraZeneca so that the competitive advantage is both long-lasting and globally accepted. The competitors need to decipher when they communicate with AstraZeneca since they should know that is a world renowned pharmaceutical player and that its medicines rule the roost as far as the global dynamics of the said business are concerned. The current strategies and business models that have been adopted by AstraZeneca take care of its core activities - all of which are geared to meet the needs and requirements of its product line, the reliance on customers being the backbone of all such manifestations, and indeed the philosophy of the 'product pipeline' which works to good effect for the sake of AstraZeneca. David R Brennan, the CEO of AstraZeneca suggests that the business strategy is reliant on four different areas - all of which are regarded as the priority zones in the long term scheme of things. These take care of the strengthening of the pipeline for the new medicines, the delivery of full potential for all the marketed medicines, the re-shaping of the business in essence and the promotion of a culture that would essentially tackle the areas of social responsibility and accountability across the board (Carlsson 2001). AstraZeneca believes strongly on the role of the shareholders and how their investments can be exponentially doubled or even tripled with the passage of time. It has built significant strides in devising principles and policies which will essentially take care of the value provision for these shareholders, which is a very encouraging step in essence. The R&D department takes care of the mechanisms which bring forward the effective sales and marketing activities to the fore and hence undertake efforts to boost the same over a period of time. These activities are important as these inculcate the need for having a robust strategy in place - one that is built upon AstraZeneca's philosophy and organizational culture more than anything else. AstraZeneca has to believe in its core mission, vision and the philosophy so that the shareholders can come back and forth, and thus exhibit their loyalty towards the organization as well. The business models adopted by AstraZeneca have a global feel about the same and these are some of the most enticing aspects that can be talked about when one thinks of the globally acclaimed pharmaceutical companies within the related lines of business. Hence an evaluation into AstraZeneca's current business strategies and business models pinpoints the need for remaining head on with whatever is there in store for it, from a futuristic standpoint. This will ensure success for the sake of the organization in the long run, as well as guarantee its place within the world's most sought after names, under the aegis of the pharmaceutical lines of business. Conclusion In the end, it would be appropriate to state here that AstraZeneca is on a very good platform as far as its business undertakings are concerned. It is indeed following a set agenda of progress through resilience and commitment which will bear rich fruit in the coming times. The organization knows what it wants to achieve and hence the basis for its success over a period of time. The coming times would definitely see that AstraZeneca will stand out in a league of its own, as far as the pharmaceutical line of business is concerned (Lieberman 2005). What it needs to do for now is to inculcate values and principles which embody growth and prosperity within the related realms of business and to follow the dictum of 'product pipeline' so that AstraZeneca is able to achieve its objectives and goals consistently. All said and done, the analysis for AstraZeneca is elaborate and presents a true picture of how things shape up within the global domains of the pharmaceuticals. Bibliography CARLSSON, Rolf H. (2001). Ownership and Value Creation: Strategic Corporate Governance in the New Economy. John Wiley & Sons CASSELS, Alan. (2005). Selling Sickness: How the Drug Companies Are Turning Us All into Patients. Allen & Unwin HOSKING, Patrick. (2002). The Supply of Genuinely New Drugs Has Just about Dried Up. No Wonder Pharmaceutical Companies Are So Keen to Protect Their Patents on Existing Drugs. New Statesman, Vol. 131, June 17 KASSIRER, Jerome P. (2005). Ownership and Value Creation: Strategic Corporate Governance in the New Economy. Oxford University Press LIEBERMAN, Trudy. (2005). Bitter Pill: How the Press Helps Push Prescription Drugs, Sometimes with Deadly Consequences. Columbia Journalism Review, Vol. 44, July WALLEY, Tom. (2004). Regulating Pharmaceuticals in Europe: Striving for Efficiency, Equity, and Quality. Open University Press Read More