Professional Documents
Culture Documents
Theopportunitytomakeadifferencetothelivesofbillio
nsofpeople
GlaxoSmithKlinehasachallengingandinspiringmissio
ntheirmissionistoimprovethequalityofhumanlifebye
nablingpeopletodomore,feelbetterandlivelonger
MISSION STATEMENT
Our mission is to help people do more, feel better,
live longer.
The business is focused around the delivery of three
strategic priorities which aim to increase growth,
reduce risk and improve our long-term financial
performance. These priorities are: grow a diversified
global business, deliver more products of value, and
simplify the operating model.
YES/NO
DESCRIPTION
Customer
YES
People
Product
NO
Market
YES
grow a diversified
global business
Technology
YES
Survival Growth
YES
Increase growth
Philosophy
YES
Self-Concept
NO
Public Image
YES
to increase growth,
reduce risk
History
GlaxoSmithKline plc is a public limited company incorporated on 6th December
1999 under English law. Its shares are listed on the London Stock Exchange and
the New York Stock Exchange. On 27th December 2000 the company acquired
Glaxo Wellcome plc and SmithKline Beecham plc, both English public limited
companies, by way of a scheme of arrangement for the merger of the two
companies.
GSK and its subsidiary and associated undertakings constitute a major global
healthcare group engaged in the creation, discovery, development, manufacture
and marketing of pharmaceutical and consumer health-related products.
GSK has its corporate head office in London and has its US headquarters in
Research Triangle Park, North Carolina, with operations in some 120 countries,
and products sold in over
150 countries.
Our Values
Respect for People
We believe that respecting each other is the key to progress and growth for
our business, employees and customers. Our employment practices are
designed to create a culture, in which all GSK employees feel valued,
empowered and inspired to achieve our goals.
Patient Focused
Our commitment to our purpose of improving the lives of billions ensures that
all our efforts, be it research, manufacturing or distribution are geared
towards improving patient access to quality health solutions.
Transparency
As our business evolves to meet global challenges, so do our existing
systems for which transparency is integral. By being transparent about what
we do and how, we earn and build trust.
Integrity
Our guiding principles go beyond complying with legal and ethical
regulations. Each member of the GSK family takes pride in doing what is right
for the patients and consumers, placing them at the heart of every decision
CURRENT STRATEGIC
DIRECTION:
Strategic Priorities
We are focused on the delivery of five strategic priorities to achieve our mission of
helping people do more, feel better and live longer. Everyone at GSK has a role to play
in delivering our strategic priorities:
Building trust
DEVELOPMENT OF THE
COMPANY
GlaxoSmithKline plc is a public limited company incorporated on 6th December 1999
under English law. Its shares are listed on the London Stock Exchange and the New York
Stock Exchange. On 27th December 2000 the company acquired Glaxo Wellcome plc and
SmithKline Beecham plc, both English public limited companies, by way of a scheme of
arrangement for the merger of the two companies. Both Glaxo Wellcome and SmithKline
Beecham were major global healthcare businesses.
GSK plc and its subsidiary and associated undertakings constitute a major global healthcare
group engaged in the creation, discovery, development, manufacture and marketing
of pharmaceutical and consumer health-related products.
GSK has its corporate head office in London. It also has operational headquarters in Philadelphia
and Research Triangle Park, USA, and operations in some 114 countries, with products sold in
over 140 countries. The principal research and development (R&D) facilities are in the UK,
theUSA,Belgium, Italy, Japan and Spain. Products are currently manufactured in some
38countries. The major markets for the Groups products are the USA, France, Japan, the
UK,Italy, Germany and Spain.
ORGANIZATION
AWARDS
business in the community award
Awards for diversity and our community work.
LIST OF
MEDICINES
Adartrel, Advair, Albenza, Alkeran, Altargo,Amerge,
Amoxil,Andropatch, Anectine, Arixtra, Argatroban, Arixtra,
Arranon, Atriance,Augmentine, Avandamet, Avandaryl,
Avandia, Avodart, Axid
Ceftin, Cicatrin, Combivir, Coreg, Coreg
CR,CutivateDaraprim, Dermovate, Dexedrine,
Digibind, Doralese Tiltabs, Dyazide, DynaCirc CR
VACCINES
GSK make over 30vaccines that protect against a wide range of diseases
including:
LIST OF VACCINES
CONSUMERHEALTHCARE BRANDS
GSK bring dental health products, over-the-counter medicines and nutritional
drinks to millions of people. Many of our brands, such as Panadol, Aquafresh,
and Lucozade are familiar around the world.
COMPETITORS
MEDICINES
pharmaceutical industry is highly competitive. GlaxoSmithKline believes
The
thatits competitive position is dependent upon the discovery and
development of new products, togetherwith effective marketing of existing
products. Within the pharmaceutical industry, the introduction of new
products and processes by competitors may affect pricing levels or result
inproduct replacement, and there can be no assurance that
GlaxoSmithKline's products may notbecome outmoded,notwithstanding
patent or trademark protection. In addition, increasing government and
otherpressure for physicians and patients to use generic pharmaceuticals
VACCINbrand-name medicines may increase competition for products
ratherthan
that
EShave gone off patent
GlaxoSmithKline's
major competitors in the vaccine market include
Aventis Pasteur, Merck and American Home Products.Engerix-B
andHavrix compete with vaccines produced by Merck -Comvax and
Recombivax HB for hepatitis B and Vaqtafor hepatitis A.Infanrixs
majorcompetitors are Aventis Pasteurs Tripedia and TriHIB
it, and Wyeth Ayersts Acel-Imune and Tetramune.
CONSUMERHEALT
The
major competitors in the consumer healthcare markets are Procter &
HCARE
ABOUT EMPLOYEES
Pharmaceuticals
competition
Pharmaceutical company
Eli Lilly and Company is an American global pharmaceutical company with
headquarters located in Indianapolis, Indiana, in the United States. The company
also has offices in Puerto Rico and 17 other countries
Pfizer
Pharmaceutical company
Pfizer, Inc. is an American multinational pharmaceutical corporation headquartered
in New York City, and with its research headquarters in Groton, Connecticut, United
States. It is one of the world's largest pharmaceutical companies by revenues.
Merck & Co.
Pharmaceutical company
Merck & Co., Inc., d.b.a. Merck Sharp & Dohme, MSD outside the United States and
Canada, is an American pharmaceutical company and one of the largest
pharmaceutical companies in the world. Merck headquarters is located in
Kenilworth, New Jersey
SWOT Analysis:
Strengths:
GSK has Strong Sales.
Their balance sheet and financial statements is good and
comprehensive.
Good marketing infrastructure.
It has strength in Industry leading R&D team.
GSK has an effective implementation and execution of strategic
priorities, life
cycle management strategies and business fundamentals.
Weaknesses:
It also has the ability to reduce on costs.
GSK, has no clear, widely shared goals for the system.
Lack of sustainable training and management skills.
It faces difficulties with continuity of care (leading to frequent cases of
patients
lost in system).
Raising cost sharing- this is as an expression of inability to cope with cost
Increases.
The inter-sectorial linkages between health care, public health and social
care is
Poor.
The possibility of Co-marketing agreements limiting GSK's global presence.
It also has an unsustainable revenue base.
Opportunities:
GSK possess a strong cash and assets position. It is an opportunity for
GSK to entry into
antibodies and biologics segment of
market.
GSK has the potential to deliver strong growth by R&D team.
The effect of generic products sales on sales of the company.
It also has the potential to expand business in emerging markets.
Positive change in governmental and federal laws that may concerns with
the
healthcare.
Threats:
C ompetitors
C ompetition
1. Abbott Laboratories
2. Amgen
3. AstraZeneca
4. Bristol-Myers S quibb
5. J ohnson & J ohnson
6. Merck
7. Novartis
8. P? zer
9. R oche Holdings
10. S un Pharma
Strengths
GSK is ne of the top 5 largest pharmaceutical companies.
GSK is one of the worlds largest investor in R&D and UK
Biggest private
sector fund of R&D.
HAS a strength of over 97000 employee.
GSk is a global presence is in over 100 countries.
Robust sales growth forecast for launch portfolio
Industry-leading player with regard to implementation of lifecycle management strategies
Strong business fundamentals and robust balance sheet
Demonstrated ability to drive cost elimination
Weaknesses
Failure of R&D pipeline to deliver initial commercial expectation.
Controversies regarding issue of safety of drug effects companys
image.
Patent expiry for a number of bulk buster products.
A conglomerate of relatively independent companies.
Sometimes they can go off the reservation, such as what
appears to have happened with McNeil Consumer Healthcare
and the making of the children's medicine now being recalled.
Several of its big drugs have lost or will soon lose patent
protection.
Many of its products are commodities. For instance, other
adhesive bandages exist, not just Band-Aid.
FINANCIAL POSITIONS
NET INCOME
Cash flow in
PKR
CASH
Netsales
Horizontal
Analysis
2013
25,230,878
2012
23,149,964
Costofsales
(19,007,165)
(17,104,983)
Grossprofit
6223,713
6,044,981
(3,635,914)
-3028364
Administrativeexpenses
(920,396)
(784,866)
Otheroperatingexpenses
(153230)
(192,617)
454,916
330,125
Operatingprofit
1,969,089.
2,369,259
Financialcharges
(159217)
(47,512)
Profitbeforetaxation
1,809,872
2,321,747
Taxation
(747609.)
(995,243)
Profitaftertaxation
1,062,263
1,326,504
Selling,marketinganddistributionexpenses
Otherincome
Differences
% in Change
2080914
8.99%
(1902182)
11.12%
178732
2.96%
(607550)
20.06%
(135530)
17.27%
39387
-20.45%
124791
37.80%
(400170)
-16.89%
(111705)
235.11%
(511875)
-22.05%
247634
-24.88%
(264241)
-19.92%
The above analysis of income statement has been made for two years; the comparison i s
between 2013 and 2012. The above analysis shows that the net income has gone down in the year
2013 by 20% around as compared to 2012.The decrease was due to high financial charges. Good
increase in sales in 2013 as compared to 2012.Sales increased by 9%,the increase in cost of goods
sold was higher in 2013, 11% as compared to 2012, which converted the increase in sales in
better net income.
Balance Sheet
As at December 31, 2013
The above analysis of Balance sheet has been made for two years; the
comparison is between 2013 and 2012.The above analysis show that the
total assets of 2013 is increased by 10.39%as compared to 2012.the
increase of debt in 2013 is around 35.67%as compared to 2012.the
company uses more debts in 213 as compare to 2012.increase in total
assets, current assets increase by 16.43%in 2013.the equity of financing is
decreased by -0.39%in 2013 ascompared to 2012 due to uses of reserves
Netsales
VerticalAnalysis
2013
25,230,878
%Change
100.00%
2012
23,149,964
%Change
100.00%
Costofsales
19,007,165
75.33%
17,104,983
73.89%
Grossprofit
6,223,713
24.67%
6,044,981
26.11%
3,635,914
14.41%
3028364
13.08%
Administrativeexpenses
920,396
3.65%
784866.
3.39%
Otheroperatingexpenses
153,230
0.61%
192,617
0.83%
Otherincome
454,916
1.80%
330,125
1.43%
1,969,089
7.80%
2,369,259.
10.23%
159,217
0.63%
47,512
0.21%
1,809,872
7.17%
2,321,747
10.03%
747,609
2.96%
995,243
4.30%
1,062,263
4.21%
1,326,504
5.73%
Selling,marketinganddistributionexpenses
Operatingprofit
Financialcharges
Profitbeforetaxation
Taxation
Profitaftertaxation
The above income statement shows the two years of analysis that has made
for two year the comparison is between components of2013 and 2012 with
their sales. The above income statement shows that the net income is
decrease in 2014 by 1.52%as compare to 2012.the net income of 2013 is
4.21%and in 2012 of net income is 5.73%. The gross profitwas in
2013is24.67%and in 2012 was 26.11% .the income statement shows that
the cost of goods sold was in 2013 is 75.33%and in 2012 was 73.89%.
Balance Sheet
As at December 31, 2013
Non-CurrentAssets
2013
%Change
2012
%Change
Fixedassets
5,973,404
33.30%
5,814,504
35.78%
955,742
5.33%
955,742
5.88%
Long-termloanstoemployees
Long-termdeposits
70,079
16,865
0.39%
0.09%
81,959
16,761
0.50%
0.10%
7,016,090
39.11%
6,868,966
42.27%
156,548
0.87%
140,691
0.87%
6,271,405
34.96%
5,080,220
31.26%
Tradedebts
349,950
1.95%
350,362
2.16%
Loansandadvances
248,463
1.39%
243,070
1.50%
Tradedepositsandprepayments
118,592
0.66%
92,542
0.57%
9,753
0.05%
12,205
0.08%
46,951
0.26%
40,759
0.25%
392,202
2.19%
445,872
2.74%
1,231,588
6.87%
660,092
4.06%
224,269
1.25%
198,118
1.22%
1,872,999
10.44%
2,117,626
13.03%
10,922,720
60.89%
9,381,557
57.73%
TOTAL ASSETS
17,938,810
100.00%
16,250,523
100.00%
Intangible-goodwill
CurrentAssets
Storesandspares
Stock-in-trade
Interestaccrued
Refundsduefromgovernment
Otherreceivables
Taxation-paymentslessprovision
Investments
Cashandbankbalances
Total Current Assets
The above analysis of Balance sheet has been made for two years; the
comparison is between 2013 and 2012.The above analysis show that the
total current assets was difference in two year 2013 and 2014 is 3.16.The
noncurrent liability margin decreased by 0.47 in 2013.The shareholder equity
margin increased by around 6.24%% as compare to 2012.The shareholder
equity margin is 63.27%in 2014 and70.11%. Was in 2013.The increase is
due to increase in share reserves of the company
Weighted
Score
Opportunities
Varying benefits of merging with Wyeth
.08
.24
.08
.08
.15
.60
.15
.60
.06
.08
2
3
.12
.24
.10
.40
.10
.40
Threats
Multiple and diverse regulatory
The
environments
loss of jobs to contend with from
international and domestic.
.08
.16
.06
.18
Total
1.00
3.2
Weight
Rating
Weighted Score
0.05
0.15
0.06
0.18
0.09
0.27
Company structure
0.20
0.8
0.10
0.4
Increase in size
0.05
0.10
0.20
0.20
Lacks Biologistics
0.10
0.20
Strengths
Weaknesses
BCG
Matrix:
Cash cows:
are units with high market shares in a slow-growing industry. As a leader
in a mature market, cash cows exhibit a return on assets that is greater
than the market growth rate. Meaning, they generate more cash than
they consume. These units are milked by extracting the profits and
investing as little as possible.
Dogs:
have a low market share and a low growth rate. It does not generate or
consume large amount of cash but it is a cash trap due to the cash locked
up in the less potential business.
Question marks:
Stars:
are units with a high market share in a fast growing industry, with the
hope that the stars will eventually become cash cows if it is maintain in
the category of leadership.
GSK has high relative market share and high market growth
rate along with good cash flow. This puts GSK under star
category in BCG matrix. GSK has a product portfolio with a
significant cash flow position this in turn has spurred on a
meaningful gearing by GSK management. This puts the
company firmly in a star performing position. With asset
consolidation of $23.5bn USD over three years, the company
is likely to attain double-digit earnings growth, with mid-digit
growth in 2012 impacted by generic competition.
Core Values
INTEGRITY
Keep Companys Interest above self. Acts in ethical manner. Promote ethical
business environment. Take effective actions if observers unethical behavior
or situation. Seen & known to be honest. Lives within means. Intellectually
honest.
EXCELLENCE
Makes positive contribution towards the achievement of SSGCs Vision.
Strives for Continuous improvement. Respond effectively to customer needs.
Takes timely & Quality decisions.
TEAMWORK
Builds strong relationships within across functions. Works well with all type of
peoples and corporate with others. Solicits and share ideas/best practice with
others. Supports the achievements of Company/team goals. Contributes to
team effectiveness using peoples different skills and styles. Arrives at
constructive solutions while maintaining positive working relationships.
Demonstrates sensitivity.
TRANSPARENCY
CREATIVITY
Comes up with new ideas. Encourages innovation. Promotes modified
approaches. Convert ideas into actions.
RESPONSIBILITY TO STAKEHOLDERS
Stays abreast of change in operating environment that impacts our business
(i.e. markets, competitors, technology, customers, suppliers, employees,
regulatory, political and public). Create solutions to make customer needs.
Develops colleagues and team members to improve their skills and
performance. Ensure optimum utilization of resources. Balances short term
and long term priorities to maximize on results. Ensures compliance of law.
PORTERS STRATEGIES:
THE FIVE FORCES THAT SHAPE INDUSTRY
COMPITITION
Explanation:
Deferred Annual bonus plan : The deferred annual bonus plan encourages
long term share holding, discourages excessive risk taking and help focus
on GSKS key strategic priorities.
Performances hare: the performance share plan ensure focus on the delivery
of GSKS strategic priorities and long term shareholders returns relative to
other pharmaceutical companies
Competitors:
In the vast industrializing world , there is obviously room for business
competition. Similarly , GSK has many competitors.
The highly classified companies namely Novartis , Pharma , Abbott , Nutrilite
, ParkeDavisetc , are all competitors of GSK.
They also have a vast range of medical products and compete at a very
critical state.
Why GSK?
Customer feedback and statistical data says that as compared to other
companies , 63% of people still recommend GSK products for use.
INTERNAL Strength
FACTORS 1. Industry-leading
EXTERNAL
FACTORS
Weakness
1. Controversies
player with regard to
regarding issue of
implementation of life- safety of drugs affects
cycle management
companys image
strategies.
2. Patent expiry for a
2. Strong R&D focus
numberof bulk-buster
and exploring new
products
markets
3.Controversies
3. GSK is a global
regarding issue of
presence is in over 100 safety of drug effects
countries
companys image.
4. Has a strength of
4.Patent expiry for a
over 97000 employees number of bulk buster
products.
Opportunity
OS
OW
QSPM
Strategic Alternatives
1
Weight
Opportunities
AS
TAS
AS
TAS
0.03
0.06
2. Strategic Acquisition
3. Focusing on Research & Development for Chronic diseases vs.
Acute diseases
0.09
0.36
0.18
0.07
0.28
0.21
0.03
0.03
0.06
0.04
0.16
0.08
0.07
0.28
0.14
0.06
0.24
0.12
0.08
0.16
0.24
0.07
0.28
Threats
0.06
0.24
0.08
0.08
0.04
0.08
0.02
0.06
0.04
0.03
0.02
0.03
0.09
0.06
0.04
0.12
0.04
0.03
0.09
0.09
0.08
0.16
Total
Strengths
0.05
0.15
0.1
0.05
0.05
0.08
0.24
0.07
0.28
0.07
0.07
0.28
0.07
0.06
0.18
0.18
0.04
8. IPhone application
0.05
9. Transparency
0.03
0.03
0.06
0.07
Weaknesses
0.03
0.12
0.08
0.08
0.07
0.21
0.21
0.06
0.18
0.03
0.12
0.02
0.06
0.02
0.02
0.06
0.07
0.07
0.02
0.03
3.62
3.2
TOTAL
SWOT Matrix
The SWOT matrix puts together the internal and external audits to focus on
each aspect and how they can influence new strategy. It can also be a helpful
way of finding new ideas.
1.BrandImageandAwareness
revenues)
2.MerckLobbiesforhealthcarereforms
2.Vioxx-ProductLiability($750million)
3.HighestProfitMarginintheindustry
4.HighvolumeofproductapprovalbyFDA
3.HighestR&Dwithhistorically
increasingexpenses
4.Lowinnovationinresponsetoweak
economy
5.DiversifiedProductPortfolio
5.Highsalaryofskilledpharmaceutical
representatives
6.Knowledgeofbenefitsandrisks
6.Revenuedropat$347million
7.SophisticatedOnlineSearchTool
(mercksource.com)
7.Weakcoreportfolio(Overlydependent
onjointventure)
8.IPhoneapplication
8.Growthrateunstable(Hardtoforecast
futurerevenues)
9.Transparency
9.Aggressivemarketingopentoscrutiny
bygovernmentagencies
1.
Expansiontodevelopingcountriesinan
attempttoprovideaccess
Opportunities
S-O Strategies
W-O Strategies
1.Increasingelderlypopulationworldwide.
2.StrategicAcquisition
3.FocusingonResearch&Developmentfor
Chronicdiseasesvs.Acutediseases
4.Drivingoutcompetitorswithlowerprices
5.Potentialdrugrevenuesaftera
competitorspatentexpired.
6.PenetrationofVaccineandBiologicsfor
emerginginternationalmarkets(Gardasil)
7.ProductDiversificationthrough
Acquisitions
8.Diversificationintobiologics,diabetes,
oncology,andinfectiousmarketsegments
9.Constantgrowthofpharmaceuticaland
HealthCareIndustryby10%
(W10, O10)
Threats
1.Riskofexpensiveclassactionlawsuits
2.Lossofpatentprotection
3.TighteningofFDARegulatoryOversight
S-T Strategies
W-T Strategies
4.Increasedglobalcompetition
5.Priceofprescriptiondrugsincreasewhich
isreducingMedicaiddrugbenefits
6.Failuretoidentifyrisksduetolackof
time&studyoflong-termeffects
7.Competewithsmallergenericcompany
alongwithotherlargerfirms
8.ExpensiveResearch&Developmentcosts
9.Industrymarkedbyrapidadvances
10.Hardtoforecastexternalfactors
SPACE Matrix
The space Matrix gives us a clearer way to see which directions our strategy
should be headed in based on where we are. It coincides with the above
matrices and gives a sense of guidance.
FinancialStrength(FS)
ReturnonInvestment7,808,400/47,195,700=16.54
*HighestProfitMargin
QuickRatio
EPS
SalesGrowth
Average
CompetitiveAdvantage
Score
EnvironmentalStability
Score
TechnologicalChanges
-5
3.5
PriceElasticity
Competition
BarrierstoEnter
Average
-4
-5
-1
-4
Score
IndustryStrength
Score
MarketShare
-2
GrowthPotential
ProductQuality
-1
ProfitPotential
BrandAwareness
-2
R&Dcostsvs.Risk
Information
-2
Patentprotection
Average
-1.75
Average