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AstraZeneca And IBM Case Study Analysis

What mistakes did AstraZeneca make?

AstraZeneca should never have outsourced its main sector which was research and development considering that it is the most fundamental to a pharmaceutical company. Furthermore, if their goal is innovation then research and development is an integral part. Vertically integrated companies became outsourced so the structure remained same throughout globally hence there is little adaptation and change. They say they are covering 60 countries. Each country has a different style of adapting and functioning and that is not being accounted for here. Moreover, they concluded the SLA beforehand. They should have taken measures on these transitional obligations in advance.

AstraZeneca is that organization that leads to the development and maintenance of the pharmacist material. The number of items they are going to manage the research and development part of the pharmaceutical department in other organizations. The drug amount that they are going to make for the development of their other newly made department after a lot of research and new innovations they are going to made the new pills that not only increase their organization’s efficiency but also they are going to make the pills very much effective for the people while they use it as well.

The numbers of drugs they are going to make are very much in a large amount as well as they are efficient to fulfil the need of the people. The mistake they performed is that they are not going to make extra efficient for the people they just made a single infrastructure which causes loss to them in the start.


What mistakes did IBM make?

Mistakes that IBM did be that was that firstly it had a “consistent infrastructure” and a “single infrastructure linking all functions, regions, and markets”. This does not take into account the fact that there are different dynamics of each country. Furthermore, there is a certain degree of autonomy to IBM so there can be a dichotomy between the two. They also failed to have a cost-benefit analysis like AstraZeneca said they did before taking every step. Hence they were they didn’t have a backup or couldn’t predict what the final impact of this would be.

The IBM Company is a competitor company with the AstraZeneca. The number of competitors you have the more you became efficient in working in that organization. The number of competitors allows you to do more efficient work in terms of making them more successful. The IBM Company made a mistake that they changed their infrastructure strategy in implementing in the making of new drugs into the organization as a matter of fact for the help of people. The drug pills are the essential need for the people as they always wanted unique drugs in terms of making themselves healthy and unique as well as they are going to manage the workings of the employees fast and efficient.

The IBM Company surrenders in the working efficiency of the competitor company in a sense that they are going to meet the true needs of the pills department as well as they are going to manage the efficiency of the organization more efficient and more developed. The research and development they made are not according to the need and want of the pills innovative making so that they can be done according to the need.

Why are outsourcing contracts for five or more years?

Outsourcing is generally a long-term goal because it encompasses all long-term plans. Outsourcing any part of a business requires that operations will either be altered or started fresh. This states that strategic changes can be made in the long term. Also, business relationships take time to develop and long-term outsourcing requires these business relationships to continue and be maintained in the future. The profit earned will be less in the adaptation part and will gradually increase in the years to come. Outsourcing is that term that leads to the taking help of the different department in terms of expanding our business.

The outsourcing companies always performed a number of steps in order to do the best help of the company that is going to take the help of them. A number of people of too many organizations take help from the outsource from the other departments that not only they managed the working of the organization smooth and active. As a matter of fact, the number of work you outsource from other organization may sometimes cost you high but they did efficient work for you as well.

The Outsource companies do not work on an individual basis they work on with a number of people by making a team as a must. The whole team works on a single project at one time. The number of people you have in your team they all depends on the contract you made with the other teams. The people whom you outsource your organization must be dealing with a lot of people. Therefore they made a contract with the party with which they are going to work for five years as a security of finance issue.

Why do you think two major corporations could make such mistakes?

I think there was no realization. They were strutting on the concept of yin and yang. They thought that they were so different that they could work together with their differences. However, operations vary within organizations as well as industries. Even if they believed that with kaizen they could get better the changes they made were not substantial and not effective enough considering that they belonged to different industries. One belonged to a pharmaceutical industry and the other belonged to an IT industry. They also took immediate action and refused to acquire market knowledge of any sort.

If there are two different people working in an organization then they should manage the working according to the needs and wants that are suitable for the organization or any other institute or the issue or matter that they are working upon is to make them more efficient and understood well. The contract when two people agreed upon must be made on the rules that best suit the good performance of that contract as well as they are going to manage the workings of the contract or matter more efficient. The number of people you add in your contract affects a number of dangerous in your working experiences.

Realization depends on the facts that what actually a person wanted to do with the organization. One of the most important factors in this issue is that they should work hard and work more actively in the matter in which their workings is involved. The numbers of people you add into the amount of working you have the more you will get the right path. A successful realization depends on the fact that how much true facts you added in that type of workings. The more you put the more you get.

Do you think the 2007 SLA was doomed to fail?

Yes the 2007 SLA was doomed to fail. This had to happen not only because of the uncertainty surrounding this agreement but also because of the loopholes in the contract because of this agreement. There were undecided measures and because of this, this venture had to fail as they rushed into it too quickly. The preliminary details were not taken care of. The agreement was very much poorly made as they are going to manage the workings of the organization compatible and efficient, as well as they, are not going to manage the workings of the contract smooth and effective to make it more suitable.

The 2007 SLA was failed due to many reasons as they are not more able to manage the actual needs and wants of the contract that he or she should be managed by its resources. The too many things that surround this agreement are not very much uncertain as they are going to manage the workings of the contract based company more efficient and more précised. As the only fact is that the 2007 SLA was failed due to their outsider’s associations and nominees in terms of having a positive result at the end of the organization. In order to get the best result, the contractor must highlight all the essential points in its workings.

The 2007 SLA doomed to have a height of proper working in the highest efficiency of the organization’s workings. As well as they are going to manage the efficiency of the organization very much active and precise in order to get the best result from it.

What provisions in the 2012 SLAs protect AstraZeneca and the vendors?

The key clauses in a service level agreement generally include dispute regulation and termination of the agreement. This worked in AstraZeneca’s favour because even when a conflict arises they can get out of it by reaching a solution peacefully and not accumulating any costs to repair the damage. Payment terms are also decided so that the company does not go into a loss if the venture should fail. The number of clauses that you made in order to make the working of the new company or the organization strong must be able to handle to organization strong and active.

The clauses must fulfil the needs of the organization as well as they must evaluate the working of the company and the vendors. The vendors are very much effective and efficient people in terms of making contracts with a number of people in order to get the best out of the worst. The more you get involved in it the more accuracy you get from it. A number of vendors move into the market to get the best result among the others vendors who are also working very much effective in the organizations too much accuracy and efficiency as a matter of fact. The more you get involved in this vendor shipment the more you became highlighted in the workings of the organizations.

The organization makes its workings smooth and efficient as well as they managed each of their tasks very much précised and efficient as well as they are going to manage the working of the organization with which they connect themselves very much smooth and effective as well.

Why would parties prefer to use an arbitrator instead of filing a lawsuit in court?

They would prefer to use an arbitrator rather than filing a lawsuit because it saves time and cost. As both the parties have agreed to use the arbitrator they are willing to be more flexible in their negotiation as court seems unfavourable to both of them. An arbitrator has more expertise in the concerned field than a judge because he is usually a professional. Moreover, all the legalities and paperwork involved in a trial court are not needed here. The arbitrator is actually a process of resolving disputes between both the parties that having a case in the courts of the state or city they live in.

The number of people involved in this process can make it more complicated and efficient as well as they are going to manage the workings of both the parties more suitable for the people who are involved in this type of process. The cases if they went into the courts then they do not be able to live properly as well as they do not even bother to have the best result out of the rest. The process needs a complete procedure for completing that procedure parties can defend well against each other and can resolve their disputes as a must.

The cases in the courts are sometimes become very much hectic and disturbed for both the parties that they avoid making it a part of their lives. The courts and the cases in it make the life of the people so much depressed that they prefer to resolve the disputes by an attribute processing with accurate procedures so that they easily avoid the court’s process disturbance in their lives.


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