GSK

GSK: Global Business Challenges

[Name of the Institute]

Executive Summery

GlaxoSmithKline PLC is a British pharmaceutical company, one of the largest in the world. It has Headquarter in Brantford, a suburb of London. The company was founded in 2000 by the merger of Glaxo Wellcome and SmithKline Beecham. The research design of this report is qualitative. The data is collected trough secondary sources and analyzed in Qualitative method. In order to collect appropriate various literatures were reviewed. After the collection data, information was analyzed in logical and descriptive manner.

GSK is a multinational and the company has faced certain issues in global operations. The rationality for global expansion is based on the fact that people around the need cure to disease and many countries do not have high tech resources, therefore, global expansion of companies like GSK is blessing for developing countries. However, companies are not also motivated by the will to serve. Issue of patented medicines sheds light on the profit maximizing thinking of companies.

GSK received criticism surrounding the price of its antiretroviral drugs in the developing world which led to GSK voluntarily licensing some of its best-selling drugs to companies in countries worst affected by the HIV/AIDS epidemic. The crux of the matter is that drugs cost money to produce and drug companies must recoup that money, plus some profit, to reinvest in new products. Price reductions and voluntary license agreements will go some way to increasing the availability of these drugs, but without an extensive improvement in the infrastructure to manufacture, transport and administer them. In order to balance humanity vs. profit maximization goals, GSK should implement cost leadership strategy and follow other discussed recommendations.

Table of Contents

Introduction4

Research Design and Method5

Discussion6

Profit as a Goal6

Humanity as a Goal7

The Case of Patients7

GSK Strategic Plan for Expansion9

The development of a diversified global business10

Increased Production of Important Drugs10

Simplifying the Operating Model11

Conclusions / Recommendations11

References13

Appendix14

GSK: Global Business Challenges

Introduction

GlaxoSmithKline PLC is a British pharmaceutical company, one of the largest in the world. It has Headquarter in Brantford, a suburb of London. The company was founded in 2000 by the merger of Glaxo Wellcome and SmithKline Beecham.

GlaxoSmithKline is the world's second biggest pharmaceutical company (after Pfizer) on turnover of pharmaceutical companies. Besides pharmaceuticals, the company is engaged in microbiology and products for body care. The main production facilities are concentrated in the UK, Spain, Ireland, USA and Singapore. The main selling drugs in therapeutic areas include respiratory diseases, cancer, HIV / AIDS, diabetes, mental disorders, prevention of infectious diseases (vaccines for various age groups), the drugs sold in pharmacies on a doctor's recommendation include Augmentin, Bekotid, Zinatsef, Zinnat, Fortum, Energin, etc. Symptomatic drugs sold in pharmacies without a prescription include Panadol, Coldrex, Solpadein, etc. GSK has a lot of research work, the main research centers are located in Grinforde (a suburb of London), Harlow (UK), as well as in the states of North Carolina and Pennsylvania (USA).

Company has total staff of about hundred thousand (2008). Revenues in 2008 amounted to 24.35 billion pounds. Net income for the period amounted to ...