Welcome Everyone to

the Presentation
Session

Report
on
International Strategic Management:
A Case on GlaxoSmithKline Public
Limited Company (GSK)

My Profile
Name: S.M. Rayhan Rahad
Roll No.: 1003003
Reg. no.: 02918

Introduction
Origin of the Report
Scope of the Report
Objective of the
Report
Limitation of Report

Methodology of the
Report
Problem and Different
Component
Definition
International Strategic Management
Global efficiencies
Multinational flexibility
Worldwide learning

strategic planning
Strategic alternatives
Global Strategy
Transnational Strategy
Home Replication
Multi-domestic Strategy

Methodology of the
Report (Contd.)
Presentation
of the Report
Data Analysis
Data
Collection
Report Design
Approach to
the Problem
Problem
Definition

Company Overview
Timeline

History
Plough Court pharmacy, the forerunner of Allen & Hanburys Ltd, is

1715

established in London by Silvanus Bevan.

Glaxo acquires Allen &

Hanburys in 1958.
1830

John K Smith opens his first drugstore in Philadelphia

1842

Thomas Beecham launches the Beecham Pills business in England.

1865 Mahlon Kline joins Smith & Shoemaker - as John K Smith & Co

1865

had become. Later the company becomes Mahlon K Smith & Company,
which is renamed Smith, Kline & Company in 1875.
1873 Joseph Nathan establishes Joseph Nathan and Company, the

1873

foundation for the Glaxo company to be formed later.

Burroughs Wellcome & Company is established in London by American

1881

pharmacists Henry Wellcome and Silas Burroughs.

1989

SmithKline and Beecham merge to form SmithKline Beecham.

1995

Glaxo and Wellcome merge to form Glaxo Wellcome.

Glaxo Wellcome and SmithKline Beecham announced their intention to

2000

merge on 17 January 2000. The merger was completed in December that

year,

GlaxoSmithKline has also an establishing story of Bangladesh

Company Overview
Company vision, Mission
(Contd.)
Vision

vision of the company is, To become the indisputable leader in the Pharmaceutical
industry not only in terms of size but also by to achieve their mission and improve
the quality of human life.

Mission
To improve the quality of human life by enabling people to do more, feelbetter and
live longer.

Company Overview
Company
Objectives and Goal
(Contd.)
Grow a diversified global Deliver more products of Simplify GSKs operating
business
value
model
Drive
growth
in
the
pharmaceutical business in
our core market
Full the potential
Emerging market

of

Diversify through model in

our
core
markets
externalization
Re-personalize R&D

Expand our business in

Asia
Build our leadership
dermatology

Focus on the best science

in

Grow the vaccines and

Consumer
Healthcare
businesses

Focus
on
investment

return

on

Evolve
our
commercial
pharmaceutical business
Re-shape manufacturing
Streamline our
Emerging Markets

processes

Reduce working capital

Company Overview
(Contd.)

GlaxoSmithKline (GSK) is one of the worlds largest research-based

pharmaceutical companies that that discovers, develops, manufactures and
markets human health products.

Country: United Kingdom

Headquarters: United Kingdom

Ownership Model: Public Limited company

Type of Industry: Pharmaceutical Industry

Ticker Symbol: GSK-LN

Number of employees: 99,451 (as of Annual Report December 31st

2013)

Revenues:

2010: USD 44,008 million (GBP 28,392 million)

Geographical Revenue Breakdown

2011: 32% United States; 30% Europe; 38% Rest of World

2013: 33% United States; 28% Europe; 49% Rest of World

2011: USD 44,093 million (GBP 27,387 million)

Company Overview (Contd.)

Organizational Structure
Board of Directors
(Sir Christopher
Gent)

Chairman and CEO

(Sir Andrew Witty)

Deputy Chairman

Reseaech and
Development
Commitee
(Dr Moncef Slaoui)
Trade Net
Department

Advisory Comitee
on Administration
Department

Sales Management
Department

Executive Directors

Quality control
Department

International Trade
Department

National Sales
Department

Product Line Q.C.

Department

General Ad
ministration
Department

Provisional Srvice
Department

Product Q.C.
Department

Planning and
Finance Department

Area Sales
Department

Finance Department

Audit Department

Human Resource
Department

Selection and
Recruitment
Department

Marketing
Department

Strategic
Management
Department

Product
Managemetn
Department

Company Overview (Contd.)

Prescription Medicine and Vaccine
Consumer Health Care Products

Company Overview (Contd.)

Quality Control
Marketing Activities of the Company
Total Market Condition

International Business Strategy

Management of GlaxoSmithKline
PLC.
Different International Business Management
Strategy
1. Global Efficiency
Business in more than160 countries
Core Competency
Product Variety

International Business Strategy Management

of GlaxoSmithKline PLC. (Contd.)
Different International Business Management
Strategy (Contd.)
2. Multinational Flexibility
3. Strategic Alternatives Followed by GSK
Transnational Strategy
4. Strategic Component of GSK
Distinctive Competence
Scope Of Operation
Resource Allocation

International Business Strategy Management

of GlaxoSmithKline PLC. (Contd.)

Level of International Strategy followed by

GSK
Corporate Strategy
Related Diversification Strategy

Business Strategy
product differentiation
cost leadership

International Business Strategy Management

of GlaxoSmithKline PLC. (Contd.)

Process of Achieving Vision, Mission,

Objective and Goal
Investment in research and development products.
Producing high quality products with a low production cost.
Targeting populated countries
Products of value
Free healthcare service and worked with WHO and IOC (in
2012)

International Business Strategy Management

of GlaxoSmithKline PLC. (Contd.)
Functions of GlaxoSmithKline PLC. From the perspectives of
Bangladesh

Functioning in our country as GlaxoSmithKline Bangladesh LTD. Since preliberation war

Stocks in DSE and CSE

High quality product with low cost.

Free healthcare services.

SWOT Analysis

Strength
E
xt
er
n
al

GSK is one of the top 5 largest pharmaceutical companies.

Weakness

GSK is one of the worlds largest investor in R&D and UK's biggest private sector
funder ofR&D.

Winner of chemical industry manufacturing and resource efficiency award.

Strong R&D focus and exploring new markets

GSK is a global presence is in over 100 countries

Has a strength of over 99000 employees

Sound capital base

Good infrastructure

Large market share

In
te
rn
al

Controversies regarding issue of safety of drugs affects companys image

Patent expiry for a number of bulk-buster products
Ineffective online presence
Low level of flexibility due to the large size of the company
High dependency on only several products

Ability to cut down on costs due to global efficiencies

Threat
Risk of unsuccessful new Products

Opportunity
Strategic agreements with other pharmaceutical companies and organizations to
boost its research.

Increasing awareness about healthcare needs

Global penetration through mergers and acquisitions

Increasing demand for quality healthcare solutions

Potential to deliver strong growth by R&D team

Increasing the level of presence in south Asian countries

patent expiry on drugs that generate strong income

Developing vaccines for persistent diseases Chance to have the crick

Regulatory environment is becoming more & more stringent

Economic slowdown in European markets
Lower cost competitors or imports

political pressure to sell at prices that fail to pay for the development o
new drugs or to recover past development costs

Findings of the Report

Over the decades, GSK has become a global pharmaceutical company.

High investment in R&D department has enabled it to establish cost

leadership and cost differentiation.

It has focused on related diversification as its corporate strategy.

Due to competition in developed countries it has been focusing on LDCs as

an emerging economy as well as target market.

Having operation in several countries has enabled it to become a global

company.

Global efficiency and economy of scope is another component for GSKs

success.

GlaxoSmithKline is a proactive company for corporate social responsibility

(CSR).

It has several authorities in several regions for controlling the operation of the
company.

GlaxoSmithKline is mainly focused on research and development of newly

scientific pharmaceutical products and vaccines.

It faces competition in Bangladesh but it is also a market leader in our

country.

Recommendation
If it focuses on new business diversification in
healthcare service, it would be good for both people
and them.
As GSK is passing, its management system is getting
complex day by day so it should pay heed to it.
As well as product differentiation it should focus on
cost leadership too.

Conclusion