Glaxo Smith Kline GlaxoSmithKline - Term Paper

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He says that if the prices are still too high, the UN should offer subsidies. (Boseley, 2003)

2. Rupert Bondy - Senior Vice President and General Counsel

He played a key role in the merger between Glaxo Welcome and SmithKline as well as after the merger. Bondy developed an efficient post merger legal department and he ensured legal representation to all organizational departments. (Practical Law Company, 2003)

3. John Clarke - President, Consumer Healthcare

Clarke is the main actor on the company's Consumer Healthcare market and it is due to him that oral hygiene, over-the-counter and nutritional healthcare products have been promoted by GlaxoSmithKline. (Forbes Magazine, 2007)

4. Marc Dunoyer - President, Pharmaceuticals Japan

He extensively promoted the anti-allergy Zyrtec drugs in Japan and around the world.

5. Russell Greig - President, Pharmaceuticals International

Greig is in charge of the GSK operations outside the United States, mainly Japan and the European countries and his actions cover more than one hundred countries. (Forbes, 2007) His primary focus is on developing drugs that fight against the human immunodeficiency virus.

6. Julian Heslop - Chief Financial Officer

As CFO, Heslop is in charge of "financial reporting and control, tax and treasury, finance systems, internal audit, insurance and real estate. " (Forbes, 2007)

7. Bob Ingram - Vice Chairman Pharmaceuticals

Robert Ingram ensured the successful merger between Glaxo and SmithKline. He was responsible for the actions taking place in Latin and Northern America and in 1997, when he became Vice Chairman, his curricular responsibilities expanded at an international level.

8. Duncan Learmouth - Senior Vice President, Corporate Communications and Community Partnership

The Senior VP is in charge of "investor relations, internal and external communications, the GSK's image and its partnerships with global communities." (Forbes, 2007)

9. Bill Louv - Senior Vice President, Information Technology and Chief Information Officer

Louv has detained several it positions within the corporations and has had numerous contributions to the information sector. Today, he is in charge of "information technology, a global function that enables key business processes across all parts of the Group." (Forbes, 2007)

10. Dan Phelan - Senior Vice President, Human Resources

Former lawyer, Dan Pulman is now charged with the human resource management. As such, he is responsible for "benefits, compensation, recruitment, organisation development, leadership development and succession planning, human resource information systems and employee health management." (GlaxoSmithKline Annual Review for 2006)

11. David Pulman - President, Global Manufacturing and Supply

Prior to his current responsibilities with global manufacturing and supplies, Pulman was in charge of the supply chain and network, manufacturing strategy and logistics within North America. (GlaxoSmithKline Annual Review for 2006)

12. Moncef Slaoui - Chairman, Research and Development

The Chairman of the R&D Department leads GSK's "complex drug discovery and development activities. Furthermore, he has eengineered the development of a robust vaccines pipeline." (Forbes, 2007)

13. David Stout - President, Pharmaceutical Operations. He is "responsible for all pharmaceuticals and vaccines operations worldwide, including the U.S., Europe, International, Japan and Global Manufacturing and Supply." (GlaxoSmithKline Annual Review for 2006)

14. Chris Viehbacher - President, U.S. Pharmaceuticals

He is the company's image within the United States and his aim is to present the population with the best products that can easily prevent, cure or alleviate diseases. Viehbacher is also a supporter of aiding and addressing the issues that torment developing countries, in order to support them develop and get better access to medical care. (CI#3)

15. Andrew Witty - President, Pharmaceuticals Europe

Witty is currently the President of Pharmaceuticals Europe but he has recently been elected to succeed CEO Jean-Pierre Garnier upon his retirement in May of 2008. "Andrew's appointment follows a rigorous selection process by the Board of Directors. The fact that we have been able to select a successor to JP from three strong internal candidates is a testament to the quality of management at GSK." (GSK Website, 2007)

III. External Environment: Opportunities and Threats (SWOT)

A. Societal Environment

1. Economic factor - increased prices. This can be regarded as both an opportunity as well as a threat. As such, high prices offer the company the opportunity to increase their sales revenue. On the other hand, they pose the threat of customer dissatisfaction. The United States healthcare is a billion dollars business, registering 14.1% of the country's gross domestic product. (Shull and Morris, 2003) However, customers complain about the unjustifiable high prices. (CI#1)

2. Socio-cultural opportunity: A development opportunity is given by a demographic factor and it encompasses the aging generation of Baby Boomers.

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The generation with the largest birthrate is now composed of senior citizens who purchase pharmaceutical products worth of billions of dollars each year.

A combination of the two features results in the population's search for cheaper medicines. A solution seems to be offered by the abroad purchase of healthcare products and services, especially from Canada and also from several European countries. (Shull and Morris, 2003) (CI#1)

3. Technological threat: The developing technologies are also posing a threat on the United States healthcare sector because they allow buyers to purchase their drugs online. If during the past years, only a limited number of citizens were able to travel abroad and buy their medicine, today, with the aid of the internet, anyone can purchase drugs from abroad at prices 80% lower than those in the U.S. (Shull and Morris, 2003) (CI#1)

4. Political-legal opportunity: Since the legislature on the matter of abroad purchase of drugs was rather inconclusive, the GlaxoSmithKline found a way to limit the amount of drugs bought from Canada by ceasing their shipments to pharmaceutical companies within the foreign country. Concerned with senior citizens' ability to purchase the drugs, the U.S. Congress desired to legalize personal import of prescribed medicines from Canada, but the bill was never implemented. (Shull and Morris, 2003)

The threats and opportunities are derived from past events and have present and future implications on both GlaxoSmithKline as well as upon the entire U.S. healthcare system. The forces are present in all countries of the globe, but have different manifestations and intensities, based on the region's particular features, such as economic status, political and legal background, GDP or living standards.

B. Task Environment

There are basically six forces that affect the healthcare industry in each country and these forces refer to new entrants, buyers, substitute products, suppliers, competitors and environmental powers. (Mind Tools, 2007) the effects these forces have upon industries vary based on each country's personal features. The influence these forces have upon the GlaxoSmithKline and the overall U.S. healthcare system are presented below:

Threat of new entrants - low: GlaxoSmithKline is the second largest medicines producer in the world, so new entrants do not pose a threat.

Bargaining power of buyers - high: consumers speak their mind and often protest against the restriction imposed by Glaxo upon sending supplies to Canada. They boycott the company and pressure the government into annulling their decision.

Threat of substitute products or services - low: However there exist alternatives to drugs and medical services (such as nature-based treatments or acupuncture), prescribed drugs are the consumers' first choice.

Bargaining power of suppliers - high: Suppliers can easily affect the company by modifying their prices and contractual conditions.

Rivalry among competing firms - medium: Since GlaxoSmithKline is the second largest producer, they face reduced competition from smaller companies.

Relative power of unions, governments, special interest groups etc. - high: special groups might influence the government into implementing laws that force GlaxoSmithKline to continue their shipments of supplies to Canada.

Threats are being posed by the consumers' demands that might force Glaxo into resuming their shipments to Canada and by the Congress' intention to promote laws that do not support the Glaxo practices.

C. Summary of External Factors

Among the most relevant forces that currently influence GlaxoSmithKline and the U.S. healthcare system are the consumers' discontent with the high prices and their search for cheaper alternatives. (CI#1) for the future, the industry is expected to be influenced by legislative rulings and the technological developments that allow consumers to easily re-import drugs.

IV. Internal Environment: Strengths and Weaknesses (SWOT)

A. Corporate Structure

GSK has expanded their activities into a total of 150 countries across Europe, North America, Central and South America, the Caribbean, Asia and Australasia, Southeast Asia, Africa and the Middle East. The corporation operates here throughout their 2 divisions: GlaxoSmithKline Pharmaceuticals and GlaxoSmithKline Consumer Healthcare, structured as follows (GSK Website):

1. GSK Pharmaceutics a) Medical Directorate: Medical Affairs, Quality Assurance, Regulatory

Affairs, Clinical Research b) Sales and Marketing c) Distribution, Logistics and Consumer Services

2. GSK Consumer Healthcare a) Sales Department b) the Marketing Department: The Brand Team c) the Dental Detailing Team

There is no ambiguity regarding the structure, as it is understood and respected by all employees. The decisions are generally taken by the top management and the boards of directors, with the assistance and consideration of operational managers......

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