AstraZeneca: Transforming How New Medicines Flow to Patients1

Abstract

This case is currently taught in Darden's ““First-Year Strategy”” course. Scott Snell also teaches it in his second year elective, ““Developing Organizational Capability””. The case would be useful in any course that examines the topic of core capabilities, organizational change, or strategic alignment. This field-based case provides an overview of reorganization at AstraZeneca UK Limited (AZN) and focuses on the processes, systems, and people (human and social capital) in the R&D unit. It allows for an examination of AZN’s core capabilities and how enterprise leadership requires making an explicit connection between investments in people and performance that benefit the firm. The strategy includes: build a pipeline with new prescription drugs that were unique enough to provide a differentiated benefit to patients, grow the business globally, streamline the organization and increase efficiency, and build a culture of courage, creativity, and collaboration. What areas of R&D should the company invest in, and what would the R&D transformation look like?