In this report I will talk about the pharmaceutical company AstraZeneca. A brief corporate profile is included to give you relevant information about the company. In the SWOT analysis, the following topics are covered: the acquisition of biotech companies, the opportunity to enter emerging markets, the potential for slow product growth due to failed drugs, and the threat of generic competition because of key patent expirations. Finally, I will provide a three part plan to reduce the risk for AstraZeneca as it enters China.
Objectives
The goal of this report is to provide information about a potential client, the pharmaceutical company AstraZeneca, for the Rizkallah Creativity Consulting Group (RCCG). By analyzing AstraZeneca’s strengths, weakness, opportunities, and threats, RCCG will be able to approach AstraZeneca with a thoughtful recommendation that will minimize risk during the entrance of new markets and ensure success.
Methodology
Company Background
AstraZeneca is a pharmaceutical company focused on researching, manufacturing, testing, and the marketing of new medical drugs. While AstraZeneca subsidiaries are found around the world, the main headquarters are in the United Kingdom. United States accounts for 45 percent of the company’s total sales in 2007. Their next major market is Europe, with 36
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The change of leadership at AstraZeneca signaled a crucial change in corporate strategy. For example, funding for research and development increased to $5 billion, this action helps strengthen the company’s future outlooks (AstraZeneca, 2007). To combat the problems of pipeline flow AstraZeneca purchased two companies, Cambridge Antibody Technology and MedImmune, which specialize in biologics and vaccines (Hoover’s Inc., 2008). These companies already have drugs in the late-stages of product development and on the market which will add much needed numbers to AstraZeneca’s
There were two pharmaceutical companies that were looking for ways to expand globally to position themselves in a competitive advantage from their competitors. One was located in the United States, which was Eli Lilly and
U.S. based companies hold rights to most of the world’s rights on new medicines and holds thousands of new products currently being developed. As of 2012, the industry helps support almost 3.4 million jobs in the U.S. economy. It is also one of the most heavily R&D based industries in the world. In the United States, the environment for pharmaceuticals is much friendlier than other countries around the world in terms of pricing ability and regulations. Both the Pharmaceutical and Biotechnology industries have experienced significant growth in the past year with year-over-year increases of 13.02% and 34.69% respectively. It is an even more striking when looking at the past five years considering both have beat out the S&P 500 with pharmaceuticals increasing an additional 31.44% and the biotechnology sector besting an astonishing 269.3% more return than the
The company is so large that no one drug can lift it from its current sales doldrums. In addition, the company was once highly attractive to investors, but its recent stock price fell to 1997 lows. This may put pressure on the company to attempt acquisitions at a time when the company is ill-equipped to integrate a new company into its organization, and it is engaged in a cost-cutting program at a time when it may need to invest even more in research and development (McTigue Pierce, 2005).
Interestingly enough, there were some influences in the external environment that would affect the relationship with Astra. Much like other industries in 1990s and early 2000s, the pharmaceutical industry responded to the challenges of globalization and smaller companies merged to form large conglomerates to create worldwide strength. (Kyriazis and Swayne) Astra merged with Zeneca, increasing the international exposure of the new merger as the seventh largest pharmaceutical company in the world. In such a situation, AstraZeneca had Colazide low on their list of priorities and attempted to return the licensing to Salix. This would require some adjustments and avoidance of legal implications on the part of AstraZeneca, which led to their payment of Salix’s full contract and lending for acquisition of another partner.
Since its humble beginning as a small drugstore, Merck has placed a large amount of importance on improving the health and well-being of its customers. As drug patents expire and genetic forms of their top products become available, Merck’s strategy is to do the unexpected; instead of raising the price of their older products in favor of patent protected new drugs, Merck focuses on reducing their cost in order to better compete with their generic counterparts. Additionally, Merck’s plan for growth now encompasses a much more aggressive pursuit of new drugs in their pipeline through extensive research. Merck became the second largest health care company in the world after the merger with Schering-Plough in 2009 and has
The author has chosen to analyse and evaluate the business and financial performance of AstraZeneca.
Pfizer Inc is a multinational investment company. It ventures in the medical and pharmaceutical industry. It is renowned as a giant pharmaceutical company, founded in 1849. It is based in the United States, New York, Manhattan at Midtown. It is the largest universal producer and trader of pharmaceuticals (Turner, 2005, pg 161). Some of the products availed to the market by the company are Lipitor, Lyrica, Diflucan, Zithromax, Zoloft, Viagra and Celebrex. These products are targeted to patients and persons in need of enhancements in their body systems and anatomy. It has an employee capacity of 12000 people in all its departmental sectors and sub-branches. The sub-branches are distributed all over and in all continents (Turner, 2005, pg 163).
Astrazeneca Pharmaceutical company, apart from its global positioning has placed itself in the Gulf countries also. The reward and recognition policy at Astrazeneca is common for all its branches throughout the globe. This research intends to find out the relevance of the reward and recognition policy of Astrazeneca amongst the gulf citizens. It tends to understand whether Astrazeneca in the gulf is able to motivate its employees enough with is reward policy to achieve organization goals. This research tries to identify gaps in Astrazeneca’s reward strategy to the gulf citizens and also emphasizes on possible ways to fill this gap so that this organization reforms its reward strategy to suit the preferences of the gulf citizens.
Pfizer has come a long way since its modest beginnings in 1849, when it founded by cousins, Charles Pfizer and Charles Erhart and their sole product was citric acid, which would lead to the development of penicillin. Today Pfizer is the world’s largest research-based pharmaceutical company. The company consists of three Strategic Business Units: Health Care, Animal Health, and Consumer Health Care. Pfizer’s portfolio consists of 168 prescription products which is a big accomplishment since its inception 162 years ago (pfizer.com, Janu). However, as a mutual fund’s manager, one must look at various analytical tools and resources in deciding
AstraZeneca has a vision of becoming a company which is most valued by businesses, customers and patients. The company also has a mission of establishing medicines with a main and purpose of treating and curing diseases, sufferings and symptoms. The company was founded by two cousins in the year 1849 and in the year 1900 it was converted from a business of the family to incorporation. In addition in the year 1944 it became the leading producer of penicillin and citric acid (Thayer 92).
This company profile provides a preliminary investigation and analysis of Novartis International AG, a multinational pharmaceutical company based in Basel, Switzerland. Novartis is one of ten companies the Investment Board will consider for further in-depth research for a multimillion-dollar investment.
This report provides an analytical strategic review of the global pharmaceutical industry; its origin, evolution,
Competition, typically the most powerful external force, is increased by the advent of globalization. The number of companies and the number of countries where these companies operate and the way governments are dealing with the impacts of globalization is accelerating. The interaction of changes in government policy and business innovation has actually made globalization even faster. If a company does not become a global, it would simply be shut out of new markets. The reasons for the turmoil are numerous: a sputtering economy, increased global competition, the implementation of new technologies that displace jobs, the deregulation of certain industries, and the general
Although R&D has been retained by the large pharmaceutical firms, there has been a continuous decline in the R&D productivity. Controlling R&D is imperative to the success of a Pharmaceutical firm. However, as the pharmaceutical industry is maturing, there are diminishing returns to the R&D investment. Fewer and fewer blockbuster drugs are being discovered and therefore R&D is not the most value adding component in the value
This is a strategic analysis of GlaxoSmithKline that examines the key factors that influence the company and its activities. The strategic analysis will examine key factors in the company’s internal and external environment and their influence on the company’s strategies. GlaxoSmithKline is a global healthcare company that offers pharmaceutical, vaccines and consumer products. The company is a product of various mergers, the latest occurring in 2001 between GlaxoWellcome and SmithKline Beecham. The company started in London United Kingdom in 1715 as Plough Court pharmacy and has evolved to become one of the leading global healthcare companies. The healthcare company operates in more than 150 countries with 89 manufacturing locations and research centers in the USA, China, UK and Belgium. In 2015, the company’s sales grew to £23.9 billion from £23.0 billion in 2014 (GlaxoSmithKline plc. 2015).