Professional Documents
Culture Documents
Students ID Number:
12091008
The merger of the Glaxo Wellcome and SmithKline Beecham has already stirred the
pharmaceuticals world as in terms of turnover these two companies are ranked the number fifth
and twelfth largest.
Definitely this merger happens to bring out good for the organisation. Basically, this merger
happens to
Expand the product and market portfolio merger of Glaxo Wellcome and SmithKline
Beecham will have a market portfolio of 30 new drugs 19 vaccines in clinical trial.
To gain the more market share merger of these two pharmaceuticals companies now
aligned in one. The Glaxo Wellcome is the fifth largest company that indicates to large
market share and SmithKline Beecham is the twelfth largest company that also indicates
to a significant market share. Merging benefits them to have greater market share.
Other than these two reasons there may be some reasons possibly like gaining the top position in
the market as this merger already displaces Aventis from the top position.
This merger may bring out both benefits and problems. But, mostly as we can see the facts these
are benefits. Such as
The merger of these companies has made a savings together of 415 million USD
Apart from these benefits, this merger may face some problems too. These are actually uncertain.
For instance
An impact may be upon the stock market. If this merging doesnt bring good
performance, shareholders may be unhappy and as a result share prices may be dropped.
Now, if we compare this merge with the organic growth, this has the both advantages and
disadvantages. As Capon (2008, p. 247) says that when an organisation intends to expand
business by using its own resources and competencies is called the organic or internal growth
that often is a slow process. But, the merge of Glaxo and SmithKline benefits them to have a
quick growth in their business. But, in terms of adaptation of organisational culture and
formulating strategies the merger of Glaxo and SmithKline may face problem. From this aspect
organic growth is less risky.
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