STRATEGIC MANAGEMENTMINI PROJECT

ON

1.2. SWOT ANALYSIS OF ASTRAZENECA

3. FAILURE ANALYSIS OF HP’S TOUCHPAD4. HOW WELL DO THE ORGANIZATION COMMUNICATE ITS PURPOSE

5. AN ACTION PLAN FOR ROBIN HOOD

SUBMITTED BYG. GEETHA (RA1452001010577)

ABHAY B RAJ (RA1452001010579)JEYA PRATHAP J (RA1452001010580)

KANAPARTHI PRAMOD (RA1452001010581)

TODr. K SADASIVAN

Associate Professor

FACULTY OF MANAGEMENT

SRM UNIVERSITY

KATTANKULATHUR, KANCHIPURAM

TAMILNADU, 603203.

OCT 2015

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INDEX

S.No Topic P. No

1. SWOT ANALYSIS of ASTRAZENECA 2

2. FAILURE ANALYSIS OF HP’S TOUCHPAD 5

3 Exercise 3

4 Exercise 4

1. SWOT ANALYSIS of ASTRAZENECA

AstraZeneca (AZ) was formed on 6 April 1999, through the merger of Astra AB of Sweden

and Zeneca Group PLC of the UK – two companies with similar science-based cultures and a

shared vision of the pharmaceutical industry. AstraZeneca are one of only a handful of

companies to span the entire life-cycle of a medicine from research and development to

manufacturing and supply, and the global commercialisation of primary care and speciality

care medicines. AZ operates in more than 100 countries and its innovative medicines are used

by millions of patients worldwide. AZ’s primary focus is on three important areas of

healthcare: Cardiovascular and Metabolic disease (CVMD); Oncology; and Respiratory,

Inflammation and Autoimmunity (RIA). AZ is also active in the Infection, Neuroscience and

Gastrointestinal (ING) disease areas.

The merger aimed to improve the combined companies’ ability to deliver long term growth

and enduring shareholder value through,

Global power & reach in sales and marketing

Ability to deliver the potential of existing and future products through the power and

reach of a combined global sales and marketing resource

Widespread class coverage in key therapy areas, such as cardiovascular and

respiratory disease, due to complementary nature of products

Major primary care presence, particularly in gastrointestinal, cardiovascular and

respiratory medicine

Leading position in a number of specialist/hospital markets, including oncology and

anaesthesia

Stronger R&D platform for innovation-led growth

Substantial research and development (R&D) expenditure

Strong combined development pipeline

Potential for further strengthening of the pipeline by enhanced discovery and

development capability through greater scale and focus on selected areas and

technologies

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Greater financial strategic flexibility

Financial strength and scale to give AstraZeneca's management greater strategic

flexibility to drive long-term earnings growth

Substantial operational efficiencies resulting in cost savings

1.1 Key facts

AZ employ around 57,500 people worldwide: 32.7% in Europe, 23.5% in North America,

6.1% in Central and South America, 4.2% in the Middle East and Africa and 33.5% in Asia

Pacific. AZ manufactures in 16 countries and are committed to ensuring a reliable supply of

medicines where and when they are needed. AZ works in over 100 countries and AZ

medicines are used by millions of patients worldwide. Revenue (CER) of AZ in 2014 totalled

$26.095 billion.

1.2 Purpose

“We push the boundaries of science to deliver life – changing medicines”, which clearly

sets the purpose of AZ to make the employees understand why they come to work every day.

The purpose clearly serves as an important reminder to the employees for why the

organization exists, and the value that is delivered to the stakeholders.

1.3 Ambition

“By 2020, AstraZeneca will be recognized leader in our disease areas, delivering 10 new

medicines to our patients. Our bold aspiration is to improve the lives of 200 million

patients and to be a $50 billion company in 2025.” This sets the clear cut ambition of what

the future will look like for AZ, if it is successful and provides an aspirational target that can

stretch the employees transform the company for travelling towards its ambition

1.4 Business Strategy

AstraZeneca has made a clear set of strategic choices and that would be to,

focus on its R&D and commercial investments

prioritise and accelerate promising assets and business development

Transform its innovation model and the way it works.

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AstraZeneca plans to do the above mentioned choices through its Strategic Priorities, which

are,

To achieve Scientific Leadership

To return to growth

To be a great place to work

1.5.1 To achieve Scientific Leadership

Delivering the full potential of AZ’s unique combination of discovery and development

strengths in small molecule and biologics, immunotherapies and protein engineering

technologies. Specifically, AZ are:

Prioritising investment in three core therapy areas: cancer, cardiovascular/metabolic

disease and respiratory/inflammation/autoimmunity. Alongside this, AZ remain active

in infection and neuroscience with targeted investments in opportunities and

collaborations.

Progressing our Phase II pipeline (which has the potential to double our Phase III

pipeline by 2016), and working to deliver on the promise of AZ biologics portfolio.

Aiming to launch a steady flow of specialty care products, balancing AZ’s historic

strength in primary care.

Re-building its R&D engine through innovation and distinctive science, supported by

co-location of our teams and better access to globally recognised bioscience hotspots.

1.5.2 To return to growth

Focusing our commercial expertise on key disease franchises and high potential

marketplaces. Specifically, we are putting our weight behind five growth platforms [as we

move through a period of patent expiries and revenue declines]:

Brilinta: delivering the full potential of our treatment for acute coronary syndromes.

Diabetes: achieving a leading position in the non-insulin market through our alliance

with Bristol-Myers Squibb.

Respiratory: building on the continued growth of our respiratory portfolio in key

markets.

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Emerging markets: investing to drive growth across our emerging markets, including

building on our strength in China.

Japan: capturing the potential from our established brands and new portfolio.

1.5.3 To be a great place to Work

Building a culture that is science-led and patient-focused, agile and high-performing, which

retains and attracts great people. This includes simplifying our organisation and improving

productivity while creating a vibrant, collaborative work environment.

Strategic partnering and business development is a key accelerator of our strategy. We have

been active in building early stage biotech and academic alliances in recent years and we

want to do more of these, alongside in-licensing and acquisitions to strengthen our pipeline

and broaden the range of treatment options for physicians and patients.

The challenges we face as a business and as an industry are significant. Our business strategy

positions us well to manage the challenges and leverage the opportunities to make a

meaningful and sustained contribution to healthcare.

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1.6 SWOT Analysis

Location of

Factor

Type of Factor

Favourable Unfavourable

Internal

Strengths Weakness1. Rapid decision making &

streamlined due diligence processing

2. Good commercial and R&D

presence in emerging markets

3. Active in over 100 countries

employing over 60,000 people

4. High investment in R&D with

11,000+ dedicated R&D team

5. Ten products with global sales

above 1 billion dollar

6. Product portfolio includes cancer,

cardiovascular, gastrointestinal,

infection, neuroscience, respiratory

and inflammation medicines

1. It was affected by drug shortage

crisis as in case of Cefotan

2. Product discontinuation affects the

performance

3. Legal proceedings related to

patents and pricing issues affect

image

External

Opportunities Threats

1. It can leverage its strong presence

in emerging markets

2. Increasing importance of biosimiler

market

3. Increasing global ageing

population

1. Seroquel their blockbuster drug is

facing threat of copycat generic drugs

2. Stringent drug development

guidelines

3. Competition coming up with

effective drugs

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2 FAILURE ANALYSIS OF HP’S TOUCHPAD

The Product chosen for failure analysis is as follows:

TouchPad

Company: Hewlett Packard

Year released: 2011

Revenue yr. released: $126.0 billion

Fig: HP’s TouchPad

Introduced in July 2011, the TouchPad was Hewlett Packard’s attempt to compete with

Apple’s iPad. With powerful video capability and impressive processing speeds, the

TouchPad was widely anticipated to be among the only products that could give Apple a run

for its money. Despite large scale press events and promotions, the HP TouchPad was a

colossal failure and was discontinued almost immediately. As a result of the TouchPad’s

failure, the company wrote off $885 million in assets and incurred an additional $755 million

in costs to wind down its webOS operations, ending all work on the TouchPad’s failed

operating system. Since then, HP has continued to struggle to maintain its edge in the PC

market. The once-dominant PC Company is in the midst of a multi-year turnaround plan.

While the plan may have recently begun to bear fruit, investors remain cautious.

2.1 Reasons for Failure

HP’s failure not only explains about today’s mobile market but also the company’s attempt to

enter the mobile space and the reasons of failure of its stumbling attempts at mobile

prominence. From misunderstanding Apple’s Ipad to CEO Leo Apotheker's determination to

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take HP in a new direction, HP's mobile division never had a chance to grow into a stable,

profit-generating operation. The following are the reasons why TouchPad failed:

1. Misjudging Apple

HP believed it could capitalize on the impatient would-be Apple buyers when iPhone 5 was

delayed and iPad2 was in market for a while. HP failed to realize that Apple's popularity in

the mobile space was not going down anytime soon and HP lost.

2. Failed to play the Android game

One of the biggest mistakes HP made was not accepting Android. In today's mobile market,

android is the mobile OS that people know and trust, and it has been proven to sell quite well

in the mobile space.

3. The WebOS

WebOS lacked enough third-party applications, and its functionality was simply too different

from iOS and Android to attract consumers. In addition the operating system was not known

to everyone.

4. The iPAd’s copy

HP made the device look awfully iPad-like, complete with a similar design, identical price

tag and the same screen size. On the contrary, devices like the Samsung Galaxy Tab 10.1 are

different enough from the iPad 2 to justify a purchase.

5. The smartphones were boring

HP's line-up of smartphones simply was not interesting. They featured small displays, sub-

par functionality and designs that seemed rather derivative from other vendors' older earlier

models. They contributed heavily to the decline of HP's mobile business.

6. Leo Apotheker

When HP CEO Leo Apotheker came in, he focused on software and discussing his vision for

the future of HP, in which mobile was not a high priority. As soon as the mobile business

started to falter, Apotheker, who has no real experience in hardware to begin with, saw a

chance to kill it. One of the key reasons HP's mobile business failed was because of

Apotheker's desired market focus.

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7. Bad timing

When it comes to the release of the TouchPad and the latest version of WebOS, HP's timing

was horrible. The company ostensibly believed that by delivering its latest and greatest

solutions over the summer, it could gain the entire market. However HP failed to realize that

Apple is still incredibly dominant in the mobile market.

8. Distractions galore

The problem at HP prior to its decision to discontinue the TouchPad and shutter its

WebOS hardware business was that the company was distracted. It was trying its luck in a

host of markets and trying to get a new executive acquainted with how the firm was run. All

the while, it was trying to salvage the pieces of a Palm mobile phone unit that was shattered

by the HP acquisition just a year ago. It was a perfect storm of sorts at HP, and that mobile

business did not have a chance for survival.

9. It played Apple's game instead of Google's

HP erroneously believed that it could be Apple. The company decided that in order to be

successful in the mobile market, it would need to offer both hardware and software. But the

plan backfired. Instead, HP should have simply followed Google's lead and either used

Android in the devices it developed or licensed WebOS to other vendors.

2.2 Reviving HP’s TouchPad

The first reviews of HP's TouchPad tablet wasn't all bad, of course. Most everyone liked

webOS's elegance, and many described the TouchPad as being "promising" or "having

potential", something that HP's Jon Rubinstein seized on in an email to his team attempting to

lift morale in the face of all these tepid reviews. The problem is that it's not enough for

webOS to be something that might potentially be good someday. We've been hearing about

webOS's promise ever since it was first unveiled way back in January of 2009, but device

after device that has failed to live up to the potential of the thoughtful OS powering it.

By the time HP issues software updates to address several of the TouchPad's most glaring

problems, there's a good chance that Apple will have launched a third-generation iPad, one

that might put HP even further behind the market leader. HP needed a game-changing, head-

turning entry if they wanted to compete in the tablet wars, and it's hard to imagine them

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grabbing a sizable slice of the market with it. This puts HP, which made webOS the center of

its mobile and connected device strategy when it bought Palm, in a difficult position. HP

simply cannot afford to be marginalized in the mobile space. If the TouchPad doesn't succeed

-- and my guess is that it will only sell in modest numbers -- they're going to be even further

behind than they already are. HP made a big bet by going with their own platform rather than

just using any other OS, but it looks fairly clear that the TouchPad isn't going to have the

impact they wanted, at least not anytime.

In order to Revive TouchPad the following could be done:

1. Cut the price of the TouchPad

Apart from a nice UI there don't seem to be a whole lot of reasons to buy a TouchPad over an

iPad. HP's bottom line is that it should have priced the TouchPad at $399 and positioned it as

an iPad-quality tablet without the iPad price. It's not hard to see plenty more people deciding

to buy one at that price and a clear differentiation from iPad. 

2. Improvise TouchPad

If HP does not cut its margin they absolutely need to improve the product. HP needs to spend

more time and money to make some drastic improvements to both its hardware and software

and do it quickly, since the TouchPad was already late to the game. Along the way, they

absolutely need to come up with some killer features to differentiate it from the other tablets.

4. Attract developers

 Offering good, easy-to-use development tools and doing tons of outreach is important, but

until webOS reaches some kind of critical mass HP probably doesn't have a ton of options

besides just paying people to make apps for their platform. Microsoft has done this with

Windows Phone, although it has not solved all their problems, it has helped them grow their

app catalogue to a pretty decent size quickly considering how small its user database is.

5. Find partners

There are already some rumblings that HP would like to license webOS to third parties like

Samsung that might be afraid of becoming overly reliant on Google and Microsoft. Would

this be a smart thing for HP to do? Well, it would certainly help them reach the scale that

webOS needs, but it also would put HP in the awkward position of building and selling

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webOS devices that would compete against those of its licensees. This, of course, is exactly

the position that Palm found itself in just over a decade ago, and the result then was a

disastrous split of the company into a hardware business and an OS business. I'm not sure that

history would repeat itself, but deciding to license webOS to other manufacturers isn't as

simple as just handing them some code. It'd require HP to adjust its entire strategy, and

having to keep partners happy may actually slow down their ability to innovate and roll out

new improvements to both the OS and hardware.

6. Focus on enterprise

Positioning the TouchPad as an enterprise device could potentially be a good way to segment

the market. One of HP's advantages here is that it already has sales relationships with tons

and tons of companies of all sizes, and I'm sure they will try to position the TouchPad as a

secure, enterprise-ready option that'll work with existing infrastructure. 

If enterprise is HP's real focus, should they even pay much attention to the consumer market?

It may be difficult to do both at the same time. While there is obviously going to be a lot of

overlap, what businesses will need out of a tablet will often be very different than what

consumers are looking for. It cannot be declared as the tablet is "enterprise-ready" and sell

them bundled with laptops and servers, you have to make sure that your product supports the

security and management tools that any decently-sized company is going to need before it

feels comfortable deploying a new piece of hardware to its employees. It sounds like HP is

making a big push here, but even they admit that the pieces aren't all in place yet and so it

may be a long time before enterprise IT departments feel comfortable making that

investment.

Possible Outcomes

Introducing a better product at a better price with tons of apps and all sorts of fancy new

features is a tall order, but it's basically table stakes if you want to make a dent in the

burgeoning tablet market. For better or for worse, Apple is doing so much better than

everyone else that the tablet market may end up like the portable media player market was a

few years back, with one product (i.e. the iPod) dominating everyone else. That would be an

absolutely awful outcome, and while it’s encouraging that there are so many companies

trying to compete, fighting to be second-best is not exactly inspiring. If HP wants to make

webOS anything more than a footnote in history they need to start delivering on those

promises.

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3. AstraZeneca Mission Statement

As a company, AstraZeneca US is committed to a mission of improving human health. 

The people of AstraZeneca are dedicated to:

Discovering, developing, and delivering innovative, meaningful medicines and

other healthcare solutions that help enrich the lives of patients, as well as their

families and communities

Putting the health of patients first by providing educational programs,

resources, and tools designed to help empower and inform

Creating a challenging and rewarding work environment that inspires our

employees

AstraZeneca Vision Statement

To be a global biopharmaceutical business delivering great medicines to patients through

innovative science and excellence in development and commercialization

A science-led, innovation strategy

Broad R&D platform focused on 3 core Therapeutic Areas (TAs)

Balanced portfolio of specialty and primary care products

Global commercial presence, with strength in emerging markets

Philosophies relating to Vision and Mission Statement

The two-factor theory (also known as Herzberg's motivation-hygiene

theory and dual-factor theory) states that there are certain factors in

the workplace that cause job satisfaction, while a separate set of factors cause

dissatisfaction. It was developed by psychologist Frederick Herzberg, who theorized

that job satisfaction and job dissatisfaction act independently of each other.

Plato’s philosophy 1: The Platonic bodies are the substrate of this world (Heisenberg):

In the end, the way to the intrinsic structures of knowledge (in the objects and

subjects) is only successful by means of formal sciences: We are talking about the

construction of formal concepts of the sources of the shadows and the implicit

knowledge.

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Plato’s philosophy 2: Knowledge is knowledge of humans for humans. Formalization

and technicalization of the knowledge must do their work under a surface of

intelligibility.

Plato’s philosophy 3: According to Plato knowledge serves a purpose which lies

neither in recognizing nor in controlling but in the acquisition of the ability to do the

good.

Plato’s philosophy 4: Knowledge Management comes true only as a moment of a

new practice, otherwise it remains a data- or information-management: away from the

shadows.

Remodified Vision and Mission Statement:

Modified Mission Statement:

Contributing to the health of people around the world through the

provision of highly effective and trustworthy pharmaceuticals, while

continuously increasing the enterprise value.

Modified Vision Statement:

Astrazeneca is committed to bringing innovative products for the healthcare

professional to improve the health and wellbeing of individuals. We capitalize on the

strengths of

Our scientific expertise to develop new and improved products and

product line extensions;

Manufacturing technology, expertise and infrastructure;

Financial resources.

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