Executive Summary
AstraZeneca PLC Report
Introduction
AstraZeneca is a global biopharmaceutical company that was created when the Swedish company ‘Astra’ and the British company ‘Zeneca Group’ merged in 1999 (Jerrang & Goldberg, 2011). Since then, it has immersed itself into the competitive pharmaceutical market and become a very successful business that specialises in the “research, development, manufacture and marketing of prescription pharmaceuticals” (AstraZeneca, 2011).
PEST Analysis
Political
Regulations for testing the drugs could change
Growing pressure to release more cost-effective drugs
Becoming increasingly harder to launch a new drug onto the market because of the regulations enforced by organizations such as the F.D.A.
Economical
Invested heavily abroad in emerging markets e.g. China and India
Increased pressure from shareholders, leads to more mergers and acquisitions
Consumers choosing not to try new products
Social (& Cultural)
There will always be a market for new drugs, e.g. Aging population therefore there is a shift in the drugs needed
Animal rights activists could prevent the testing of a new drug to take place
Technological
Improved IT communications between suppliers and itself
Invested heavily in software such as Lean Sigma to improve cycle time efficiency of the drugs
Table 1: PEST Analysis
Company Overview
Porters Five Forces
Image 1: Porters Five Forces
In 2010, AstraZeneca’s most successful drugs were (Cooper, 2010):
1. Nexium: A drug for heartburn and stomach ulcers
2. Crestor: An anti-cholesterol drug
3. Symbicort: A drug that is used to treat asthma (respiratory drug)
4. Armidex: A breast cancer drug
5. Seroquel: An anti-psychotic treatment (SEROQUEL XR, 2011)
Value Chain
The value chain was developed by Michael Porter and can be a powerful tool when analysing a company’s organisation and performance. It allows key areas to be highlighted as it offers a
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