PESTEL and SWOT Analysis of AstraZeneca pharmaceuticals

pestisEL and drum Analysis of AstraZeneca pharmaceuticalsThis is a report to the highest degree write in codeing a new securities industry of AstraZeneca which is maven of the worlds crackingest pharmaceutical manufacturing companies. Being an internationalistic manager of this confederacy, this report clearly shows the grocery storeing protrude of the ships company.1.0 Introduction of AstraZeneca pharmaceuticalsAstraZeneca pharmaceutical is a rapidly leading growing company that has branches in several countries. This company was formed on 6 April 1999 through with(predicate) the merger of Astra AB of Sweden and Zeneca Group PLC of the UK dickens companies with similar science- handbagd cultures and a divided vision of the pharmaceutical industry. It is a company fully focused on single purpose, to enable the people life altering condition to d salubrious advance belongs. It has a portfolio of products for major diseases like potbellycer, cardiovascular, gastro intestinal, infection, neuroscience, respiratory and inflammation. The motto of the company is to build a signifi domiciliatet difference to patient through bug out great medicines that down do good to for patients and add value for stakeholders and society.Product market characteristicsAstraZeneca is an innovative driven biopharmaceutical planetary moving in that supplies their products in more than speed of light countries. In many countries, it manufactures the products while also export products to countries where they do non incur manufacturing operations. With the aim to be success, AstraZeneca has developed flexible marketing st regulategies to market and distributes its products in local argonas of emerging market. The company focuses the skills and resources in six pregnant argonas of health cargon. It discoers, develops, manufactures and markets prescription pharmaceutical on the beas which include cardiovascular, bay windowcer, infection, gastrointestinal, r espiratory and inflammation. AstraZeneca is providing medicines for these worlds upright diseases.Now a day, people of e rattling field is suffering from divergent type of bacterial infection. The death rate in developing country ascribable to inflectional diseases is also change magnitude due to lack of detach medicine. at that place is a high demand of antibiotic medicine just approximately the world in developing countries as well as in developed countries.Performance of AstraZenecaThe performance at AstraZeneca is committed to achieve the m wizardtary and strategical objectives at the same time as importanttaining the core set as the number one priority in counting to demand the outdo products to market all told over the world. Research and Development is a key competitive advantage for this company. Without RD AstraZeneca could not dupe become the global leading biopharmaceutical company. The revenue of the company in 2009 was developmentd by 7% as well as new emerging markets logical argumentes grew strongly by 12% revenue in constant money time. There was better in cleverness throughout the organization and some extra assembles indoors early(a)(a) income. Although company revenue harvest-home is slowing down due to continuous pressure on healthcare costs and pricing as well as vast competition from generic medicines, the demand for health care leave alone derive the company future ontogeny die hard strong. (AstraZeneca Annual report 2009)2.0 International marketing planningAccording to McDonald, marketing planning is a structured way of identifying a range of options for the company, of qualification them explicit in writing, of formulating marketing objectives which are consistent with the companys overall objectives and of computer programing and costing out the specific activities most likely to bring about the achievement of the objectives.(L S Walsh, International trade, third edition)2.1 indispensable and External surroundingsIt is also needed to take into cerebrateation those internal factors close to the social unit that have a command impact on the unit and AstraZeneca strategic marketing.These lead includeCUSTOMERSAstraZeneca survive on the basis of pile uping the needs, wants and providing benefits for their customers. calamity to do so will pull up stakes in a failed business strategy. EMPLOYEEEmploying the correct staff and keeping these staff motivated is an subjective business office of the strategic planning process of a AstraZeneca. Training and development plays an essential role particular in service sector marketing in-order to gain a competitive edge. The success is due to the 62,000 people they employ in their businesses.SHAREHOLDERSIt is the responsibility of the AstraZeneca to meet the expectation of Shareholder and perception. This company is trying its take up to fulfill its strategy so that they set up meet shareholdersexpectation.When dealing with the marketi ng environment it is important for a company to become proactive. By doing so, they can create the kind of environment that they will prosper in and can become more efficient by marketing in areas with the sterling(prenominal) customer say-so. It is important to place equal emphasis on both(prenominal) the macro and microenvironment and to react accordingly to tilts within them.External strategyThe PEST analysis examines throws in the marketplace caused by Political, Economic, Social, Technological factors. Political is governmental change whether it be through the European Union or the UK, from one party to another in control. Economic influences are the level of stakes judge and the level of inflation. Social change involves changing attitudes and lifestyles. Technological change creates opportunities to invest in new products cutting costs.Political factorsThe government can have a major influence on the eat out industry, as all laws are slide downed through parliament. The types of laws that can affect the eating out industry are, tariffs on imports, a possible raise in value added tax and new health and safety laws, and also there is the possible introduction of laws from the European Union. So government regulations and legal issues have a direct impact on the way AstraZeneca operates.In result of growing awareness of the environmental consequences, U.K Government is planning actions to ensure airmanship reflects its environmental impacts. Proposals are emerging for a tax on aviation, can and VAT on air tickets. Governments taxation policies and decision about the increase in the petrol prices have affected the buying power of the individuals in U.K.All of the above can cause a exclude in costs so prices may rise in order to pass the costs onto the consumer. frugal factorsAstraZeneca is also affected by scotchal factors nation considerable and globally. Whether an Economy is in a boom, recession or recovery will also affect consumer confid ence and behavior.Economic factors have affected the get power of potential customers, and the state of the internal/external economy in the short and long-term. As a result the company needs to consider Economic growth Interest rates Inflation rate calculate allocation The level of inflation Employment level per capitaInterest rates are the lowest they have been for forty years and this affects the rate of consumer spend on goods and service. The rate of interest affects the economy through its influence on aggregate demand, the higher the rate of interest, the lower the rate of aggregate demand. A fall in interest rates usually means that assets rise in value this means that consumers become wealthier.Social factorsSocial factors will include the demographic changes, trends in the way people live, work and cogitate and ethnical aspects of the macro environment. These factors affect customer needs and the size of potential market Population growth rate Age distribution Internal /external emphasis on safety Internal/external attitudes to change What is the stakeholder expectation of the unit?Technological factorsThe complexities of achieving business success through change magnitude efficiency, effectiveness and competitiveness, combined with innovative applications of modern technology, has heightened the awareness of both technology and business managers towards more strategically oriented approaches for planning and management of AstraZeneca.SWOT FactorsSWOT factors refer to the strength, weaknesses, opportunity and panics of the company.The main strengths of AstraZeneca are its brands. It has an ability to redeem the potential of existing and future products through the power and reach of a combined global sales and marketing resources. It has a wide break up class coverage in key therapy area such as cardiovascular and respiratory diseases due to complementary nature of product. It is focused on constantly developing new products to expectations. Since it is a global industry it is a member of many organisations all over the world.The world population has double in the last 50 years from three billion to over six billion and is expected to reach nine billion by 2050. In addition, the number of people who can access the highest standards of healthcare lapses to increase, curiously among the elderly, who represent a rising proportion of populations in developed nations and continue to offer opportunities for the industry to supply an expanding number of patients who can benefit from medicines.Currently, the threat of new viable competitors in the global industry is not very substantial. The main rivals of the company are GlaxoSmithKline plc, Merck Co.Inc, Novartis AG. The threat of substitutes, however, is a very documentary threat. The UK, and especially London, has been a prime target of the religious fundamentalists and terrorist outfits. London and other cities in the UK have been frequently under high alert since9/11 in general and after the war in Iraq in particular.2.3 Marketing goals and objectivesThe main objectives of the company is to be the worlds largest pharmaceuticals company and to build a solid difference to patient all the way through great medicines that bring do good to for patients and add value for stakeholders and society. Boosting efforts to source improvement from alfresco the company and working in partnerships across all aspects of RD to ampleen the base for a success.Market analysisNow a day, people of both country is suffering from opposite type of bacterial infection. The death rate in developing country due to inflectional diseases is also increasing due to lack of appropriate medicine. The demand for health care is more in every country so the companys future is bright and growth remains strong. Population are increasing and people are victuals longer. There is a high demand of antibiotic medicine about the world in developing countries as well as in developed countries. Although this company has its market in different countries, there are more countries where this company can gain its market. So, I have a target to provide medicines for inflectional diseases in new market. Merrem/Meronem (meropenen) is an ultra broad spectrum injectable antibiotic for a wide variety of serious infections, including meningitis and pneumonia.To meet the goals of the company even though it has its market in more than degree centigrade countries, being an international manager of the company I would like to enter into other new market. So, first of all I am pass to research the business environment of the country. I have chosen 4 countries Singapore, Bangladesh, Sri lanka and New Zealand. By doing PEST analysis of these countries I would choose the best one for my new market.PEST ANALYSIS OF FOUR COUNTRIESCountriesPolitical factorsEconomical factorsSocio cultural factorsTechnological factorsDemographic factorsSingaporePolitical condition is abiding as t here is parliament republic ,English law is accepted super developed and free market economy and GDP rate is also higher than other developed countries.Mix of culture and education is the main instrumentExcellent passage, communication systemPopulation is less than other three contries ,total area is 756950sqkmBangladeshpolitical condition is not enduring,Poor economic condition due to recessionDifferent types of languages and religions, health standard is upModern communication system and advanced road systemseventh highest population in the worldSri lankarepublicDeveloping country, estimated GDP growth rate is 3.5%Various languages and religion, multi ethnic countriesSophisticated transportation communication servicesPopulation is estimated 20,238,000New ZealandFree market economy, can compete globallyModern, Prosperous and high standard of livingRich in culture, different religiousExcellent technological factors servicesPopulation is 43677000.Source Wikipedia of all countriesAc cording to PEST analysis, I found New Zealand and Singapore are the strong country than Bangladesh and Sri lanka in every aspect. Among these two countries I am going to choose New Zealand for new market for my product.New Zealand is one of the prosperous and high living standard countries. Political environment is stable so there is no difficulty for the businesses. Since 99% of people are educated they are aware about their health and they demand for better healthcare. The average life expectancy is 80 years, as people live longer they suffer from different diseases.3.0 Market Entry StrategyThere are different methods of entering an overseas market. Expansion of business into international market can be done through following mechanisms which are discussed below.exportationJoint Venture (franchising, licensing)Foreign work out InvestmentExport It is a traditional and well giveed method of market portal to foreign markets. This method is less expensive as we dont have to establi sh new company in other market but have to find distributor for my product.Joint venture In this type the two or more companies in different countries agree to perform the business and share the profit and bear the losses. Nowadays this method is famous as there is low risk and burden is divided. Joint venture can be done in two ways licensing and franchisingLicensing It is a wide range of agreements relating to the sale or leasing of industrial or commercial expertness by one party to other in returns for valuable considerations.Franchising it is a form of licensing by which the franchiser provides a standard package of components or ingredients unneurotic with management and marketing services. The franchisee provides capital, market knowledge and personal involvement.Foreign Direct Investment It is the direct ownership of facilities in the targeted country. It is the 100%investment in that country. It can be done by acquisition of existing company in the targeted country.Advanta ges and disadvantages of market entry methodsMethodsAdvantagesdisadvantagesExportLess expensive, minimize investment, efficiency as there is speed entry.Limits access to local information and market, transportation cost may be high, risk of exchange rate of currencyjoint ventureLow risk, less investment required, overcomes ownership and cultural distancesConflict between two parties, differences in cultures and management stylesForeign direct investmentGreater knowledge of the market, 100% control, gives the company fully fortressHigher risk than other methods, lack of managerial skills as well as ,expensive,4.0 Implementing marketing planpsProductPrice shopping centerpromotion.