Information of Gsk Target Group

1) Product markets and geographic markets in which GSK is present GSK’s core mission is to “improve the quality of human life by enabling people to do more, feel better and live longer”. To achieve this mission, they operate in three main areas of businesses: the Pharmaceuticals (£18 Bn in 2012, or 68% of their revenues), the Vaccines (£3.3 Bn, or 11% or their revenues) and the Consumer Healthcare (£5.1 Bn, or 19% of their revenues). In particular, the Pharmaceuticals cover medicines to treat a broad range of serious and chronic diseases (including therapies for Respiratory, Cardiovascular, Anti-bacterials, amongst others). Their Vaccines business is one of the largest in the world, producing both paediatric and adult vaccines for a total of 900 Million doses distributed in the world. Finally, the Consumer Healthcare business covers the Total wellness, the Oral care, the Nutrition and the Skin health1. As for the geographical markets, GSK operates over more than 100 countries around the world, of which their two largest markets, USA and Europe, account for 60% of their revenues. The Emerging Markets Asia Pacific represents £6,780 Million of revenues (26%), while Japan account for £2,225 Million. The rest of countries (including Canada and Australia) represent £1,660 Million. Over the past five years, GSK has substantially increased their investment in higher-growth areas such as emerging markets and Japan, for the Vaccines and Consumer Health businesses2 It must be noted that GSK businesses are structured by regional units or area of focus. More precisely, Pharmaceuticals and Vaccines operate in geographical segments that combine those two businesses, whereas the Consumer Healthcare business runs as a global unit3.

2) Example of resource shared between two business units One example of resources shared across business units is the investment realized in R&D. In 2012, GSK spent more than £3.5 Bn in Core R&D expenditure. For instance, the business units USA