Strategy Management of GSK

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Edexcel BTEC Level 5 HND (QCF) in Business (Year 2)
Business Strategy Assignment 1

Sze Ka Chun

March 4, 2014

Scenario:

You are required to focus on a specific Transnational Corporation (TNC). The organization could be selected from those comprising the latest ‘Fortune 500’, ‘Business Week Global 1000’. Note that the choice of a specific organization should be discussed with your lecturer.

You will need to conduct a detailed research assessment of the chosen organization with respect to its business activities in order to understand the strategies specific to that organization.

For example, you could look at:
Coca-Cola
L’Oreal
McDonalds
Nokia
Siemens, the German electrical engineering and electronics company
United Parcel Services

Before starting your assignment, you should ensure that the company you are researching provides you with information you need.

Task 1

In your chosen company, identify the mission; vision; strategic intent; objectives; goal; core competencies; strategic architecture; strategic control; strategic thinking: future direction of the competition; needs of customers; gaining and maintaining competitive advantage; Ansoff’s growth-vector matrix; portfolio analysis

Introduction

Based on a report conducted by a pharmaceutical magazine, Glaxosmithkline plc (Also known as GSK) is the fifth largest pharmaceutical company around the world (Contract Pharma, 2013). And it is also tided at No.112 on the 2013 's Global 2000 list, the list that manifests the 2000 most enormous companies in the world (Forbes, 2013). The researches above have indicated that GSK is one of the largest Transnational Corporation in the world.

Top 10 Pharmaceutical Companies based on 2012 pharma revenues (Contract Pharma, 2013)

1
Pfizer
$51,214
2
Novartis
$46,732
3
Merck
$40,601
4
Sanofi
$38,259
5
GlaxoSmithKline
$33,787
6
AstraZeneca
$27,973
7
Johnson & Johnson
$25,351
8
Abbott Laboratories
$23,133
9



References: 1. Access to Medicine Index, (2012, November). Ranking. Access to Medicine Index. [Online] Available at: http://www.accesstomedicineindex.org/ranking [Accessed April 30, 2014]. 2. Ansoff, I. H. (1957), Strategies for diversification, Harvard Business Review, Vol. 35, No.2, p.113-124. [Online] Available at: http://shr.receptidocs.ru/docs/1/509/conv_1/file1.pdf 3. Ansoff, I. H. (1989), Corporate Strategy, rev. edn, Penguin, Harmondsworth. 4. BBC, (2013, July 11). GlaxoSmithKline executives face China bribery probe. BBC. [Online] Available at: http://www.bbc.com/news/business-23265958 [Accessed April 30, 2014]. 5. BBC, (2014, April 13). UK drug company Glaxo 'paid bribes to Polish doctors '. BBC. [Online] Available at: http://www.bbc.com/news/business-26970873 [Accessed April 30, 2014]. 8. Forbes, (2013). Global 2000 list. Forbes. [Online] Available at: http://www.forbes.com/global2000/list/ [Accessed April 30, 2014]. 9. GlaxoSmithKline Plc, (2007). About R&D. GlaxoSmithKline Plc. [Online] Available at: http://www.gsk-china.com/english/html/research-development/about-research-development.html [Accessed April 30, 2014]. 10. GlaxoSmithKline Plc, (2013). Adapting our business model. GlaxoSmithKline Plc. [Online] Available at: http://www.gsk.com/explore-gsk/business-strategy/a-new-business-model-for-new-markets.html [Accessed April 30, 2014]. 11. GlaxoSmithKline Plc, (2013). Our history. GlaxoSmithKline Plc. [Online] Available at: http://www.gsk.com/about-us/our-history.html [Accessed April 30, 2014]. 12. GlaxoSmithKline Plc, (2013). Our mission and strategy. GlaxoSmithKline Plc. [Online] Available at: http://www.gsk.com/about-us/our-mission-and-strategy.html [Accessed April 30, 2014]. 13. GlaxoSmithKline Plc, (2013). What we do. GlaxoSmithKline Plc. [Online] Available at: http://www.gsk.com/about-us/what-we-do.html [Accessed April 30, 2014]. 14. Halliday, R.G., Drasdo, A.L., Lumley, C.E., Walker, S.R. (1997). The allocation of resources for R&D in the world’s leading pharmaceutical companies, R&D Management, 27, 1, 63-77 15 http://www.psychologytoday.com/blog/side-effects/201101/bad-medicine-glaxosmithklines-fraud-and-gross-negligence [Accessed April 30, 2014]. 16. Lynch, R. (2003), Corporate Strategy, 3rd ed., Prentice Hall Financial Times. 17. Macmillan, H. & Tampoe, M. (2000), Strategic Management, Oxford University Press. http://www.who.int/trade/glossary/story073/en/# [Accessed April 30, 2014].

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