The Various Stages Of Strategic Management Commerce Essay

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At this stage organization developing a business mission, identifying external opportunities and threats, internal strength and weakness, generating alternative strategies and choosing particular strategies at particular time or stages. This depends upon these features:

i-what new business to enter , how to allocate resources and whether to enter in international market or form a joint venture and also how to avoid a take over with an other companies.

ii- No organization has a unlimited resources that's why strategists must be adopted that strategy in which the firm get more benefits.

2-Implement strategy:

For the implementation of a strategy an organization establish its annual objectives, policies, plan for the motivation of the staff and allocation of the resources.

Formulate an effective strategic supportive culture, marketing efforts, preparing budget, strong information system and motivation of individual by different prospects are the main features of implementation of strategy.

3-Strtegy evaluation and modification:

The final stage of strategic management is the strategy evalution.all the stages of strategies depends upon the future prospects because the external and internal prospects are in constant change. for the strategy evolution reviewing internal and external factors of the organization and the market because the whole future strategy depends upon these factors and check the performance to take the further decisions.

The main strategic line of an individual/organization can be explained by this diagram


Now according to our Lecturer's guideline I am going to analyze the strategy which adopted by multinational pharmaceutical company





In 1880, Burroughs Wellcome & Company was founded by American pharmacists Henry welcome & Silas Burroughs in London and keep their research in London and New York

In 1904, GLAXO was founded in New Zealand in start Glaxo was a baby food manufacturer processing the milk into baby food, after that in 1935 Glaxo opened new unit in London and become Glaxo Labortaries.In 1995 Burroughs Wellcome & company emerged with Glaxo to form Glaxowellcome.


In 1843, Beecham group was launched by Thomas Beecham which emerged with different companies to form SmithKline Beecham.


GlaxoSmithKline is a leading health care company which was formed in 2000 by the merger of two leading companies GlaxoWellcome and SmithKline Beecham.GSK consumer health care and GSK pharmaceutical Ltd. are the two main business of the company.


The world second largest company in pharmaceutical GlaxoSmithKline is a corporate headquarters in London also headquarter in United States with operation in 110 countries in the world working with the working force of 100,000 peoples around the world including 40000 in sales and marketing.


In 2008, GSK posted £24.352 billion revenue and Net income generated was £4.712 billion. Its share is listed in London Stock Exchange and New York Stock Exchange.


GSK is operating in two industry segments pharmaceutical and human healthcare. its market share in healthcare is 7% in international market of 150 countries. For the World Health Organization, GSK is one of the pharmaceutical which is working on vaccines and Medicines on major disease like HIV/AIDS ,tuberculosis and malaria's.GSK is also leading pharmaceutical industry on research of cancer.

GlaxoSmithKline and SWOT Analysis

A SWOT analysis can be a useful way to summarise the relationship between key environmental influences, the strategic capabilities of the organization and also the new agenda for adopting new strategies for the organization to compete in the market.


1-GSK world's second largest pharmaceutical is a world leader in this industry.

2-Proactive in Reputation/PR management.

3-Has a benchmark according to the reputation and social responsibilities.


1-Pharmaceutical Industry is a capital intensive industry that's why it is monetry, infrastructure and labor intensive industry.

2-Due to the High Risk because of capital intensive industry, the reward should be high.

3- The main weakness of GSK is their marketing strategy.


Global market/Globalization

Underdeveloped countries like India,Pakistan,Iran and Malaysia

Genetic cloning

Cancer research opportunities.

Easy to international trading


1- International political Regulations according to the healthcare.

2- Unknown outcome of UK health reforms.

3- Unprecedented litigious society.

4- Fake medicine.

What environmental factors are affecting the organization?

PEST Analysis

1-Political/Legal effect

2-socio-cultural effect

3-Economical effect

4-Technological effect

I examine these effects on especially on

Pharmaceutical Industry

The pharmaceutical industry included 17338 companies and $600 billions in sales. The companies that research produced and sell biological substances for the preparation of the vaccines, medicines.

These companies' faced different situations.

Geopolitical regulation & legislation

GSK faces different regulatory bodies in different countries. For example in USA Pharma industry regulated by FDA.

Industry Resources

GSK has a range of resources and research laboratories in different countries.

Industry Organization

GSK has a member and working in collaboration with different organization such as it works on HIV/AID vaccines with the help of WHO.

Industry Leader

GSK the world second largest pharmaceutical is an industry leader.the main competitor are as follow:

Abbott Laboratories

Astra Zeneca





Johnson & Johnson

Industry Segmentation

GSK products which include OTC drugs, prescribed drugs and vaccines have unique market segmentation by adopting individually marketing plans, budgets and goals.

External Environment

1-External Economic Environment

Current economic situation is worst all over the world and especially in UK the situation now is stabilizing from the banking sector crises.The new Presidential administration in U.S is also proposing new legislation according to health care.

Tax Burden

The tax burden especially in UK continues to fall with the weakening of economy. The tax burden is at a highest level in the past 50years.continued decline is expected.

Initial unemployment claims

At this moment claims appears to have stabilized but the future is unexpected that have a negative impact on the economy.

Real Wages

Real wages are continuously decline due to the price falling of energy that has bad effect on economy and the consumer purchasing power is very low.

Real Home Prices / Real Estate

The home prices are at its lowest level all over the world. The decline in home prices has made buying home more easily.

External social Environment

U.S society has developed a strong holding on Pharmaceutical industries due to the misuse of marketing strategy, mis-marketing of drugs and extra ordinary cost of the medicines. Due to the mis conduct of the legal framework Pfizer faced a record breaking fine of $2.3 billion.

External Political Environment

GlaxoSmithKline and core Issues

GSK are competing with a number of reforms in health care, increasing profit for its share holders and accessibility to medicine from the governments all over the world. In response to these issues GSK said that they are ready to face this competition and they are ready for adopting the change.GSK's mission to improve the quality of human life by enabling the people to do more ,feel better and live long.

According to the Porter's Theory Company faces five type of forces which is explained by this diagram

Competitive Rivalry

Potential entrants

Threat of entrants


Threat of Substitutes


Bargaining power


Bargaining power

Corporate Business Strategy of GlaxoSmithKline

GSK's business performance and development are based on these three major strategic options which increase profitability, increase growth rate and long-term performance that is as under:

Grow a diversified business by adopting different strategic planning.

Produced a valuable product.

Simplifying the operating business plan from top to the gross route level.

Dominant Feature of the Company

GSK engagement in different level of prospective

We engage with Health care professional/doctor through our sales representative and trial base clinics.

We engage with the Government officials and engage a debate on legislation according to their country's rules and regulation.

Our Government affairs department meets with the healthcare professional through marketing of those medicines.

Our patient advocacy department which consists of scientist and researchers meet personally with the patient and diagnose their disease.

We also get feed back from our employee through our regular survey program for in the best future of company and for the future strategy.

On the ground route level we conduct meeting through local sites of the company with the local people.

NGO's national or multinational is also on our targets, we engage them through our educational and reforms programs.

We engage debates at School, colleges and professional institutions for the health reforms.

We hold a better relationship with national and international suppliers and resolve the problems when we meet on a specific periods.

As a member of the pharmaceutical industries organization such as EFPIA and IFPMA, we engage with the peer companies.

GSK's Approach in developing and poor countries

We engage a debate on the access of medicines such as

Accessibility of medicines especially of HIV/AIDS medicines to the people in the developing and poor countries.

Expanding more on the research and development in developing and poor countries.

on the platform of government, NGO's, investors and journalist

Culture and Behavior at GSK

GSK's mission is to improve the standard of human living by enabling the people to do more, feel better and live long.

Culture and behavior of organization play a vital role in the prosperity of the organization which that is going to be expected with its staff's is also expected from their staff that they must be from the point of Culture

Dedicated t their job/company.

Be focused on patient.

Integrity with job.

According to Behavior

Market Leadership

Innovative thinking

Quality of as a team member

GSK's contribution in Global health Market

GSK getting a good business all over the world by producing a significant medicine in the markets.GSK is the largest producers of the health care in developed and under developing countries.

We invest in R&D department for the research and diagnose the disease in developed and under developed countries.

While we believe that we are gaining more and more business we are also focusing on the neglected disease by sharing with government, NGO's and other pharmaceutical companies.

The Role of Vaccines

Vaccines play a vital role in the preventing and diagnose of any disease. it is estimated that millions of children's saved from the disability through the vaccines.GSK is the world leader in providing the vaccines.GSK has 30 vaccines for marketing and 20 in pipelines of the R&D department. we are committed with the WHO priorities disease such as HIV/AIDS,TB and malaria.

Combat chronic disease

GSK's triple solution approaches with the partnership of government and individual has three stages:

Prevention: Find out the causes of chronic disease such as smoking, poor health and lack of exercise.

Intervention: Manage these chronics disease to avoid the hospitality and wastages of time.

Innovation: Find out new ways of treatment at a low cost.

Research Practices

High standard of our S&D department maximize the positive results and minimize the risk of the product's is focusing on the patient at every cost and make our medicines safe by evaluating the risk at every stages of research at our R&D department's also focusing on the following ethical research.

1-Animal Research

2-Cloning technology/sperm storage of human being

Animal Research

Animal research remains small but a vital role in GSK strategy that is a better way to test the medicine before using on the human being.

GSK has animal research laboratories in USA, Europe and Asia. Some animal research conducted by different organization on the behalf of GSK.Almost all the animals are used by GSK such as rat, mouse, rabbit, dog, chiken, pig and goat.

Human tissue Research

Using human tissue for the research and diagnose of the disease is the main research approach of GSK.This research should be conducted in a manner that respect the research participant.

Medical Governance

GSK is committed to provide high standard of ethical medical practice. Medical governance at GSK is the set of principles, policies and accountability that ensure we should apply better medical approach at this stage GSK followed these principles

→ Patient safety is the first priority at GSK.

→ Clinical research is conducted at a ethical manner which safe the patient privacy.

→ Information provided on our medicine is accurate and ethical so that our medicines are appropriate helpful to the patient and have a minimum risk.

Training Process for clinical Trials

At GSK all employs are conducted with the training for the better results in the field of clinical performance. All type of training which is required by the health reform institution we introduced to our staff.

Auditing for Clinical Trials

Auditors at GSK over through the process which is going through the company at clinical trials to see the performance and examine the weakness

Focus on the patient

In 2008, we focused on the case study of patient which help our R&D department for the research and improvement purpose. In this year we engaged a number of seminar in which thousand of people participated.

Relationship with healthcare professional

We provide the funds to educate the Doctors, Physician, Nurses and other staff to attend our healthcare programmed which we conduct after our new research and study.

We have a sponsorship program as well for the healthcare professionals which help us exercise the current and future market of our products.

Policies at GSK varies from region to region it means in US and UK our policies are different as compared to Asia, Middle East and Japan.

GSK's international marketing and promotion department are focusing on Asia Pacific and Japan that is a big Market in the world.

Marketing Strategy of GSK

→ GSK adopted the direct to customer approaches (DTC) which is allowed in the US which is only on prescribed medicines. This is also allowed in Korea, Bangladesh and New Zealand. Wherever we are using this approach we followed the principles of health reforms of that country.

→ over the counter is an other marketing strategy with the help of the health reformers/government officials and NGO's we are enabling to display our products on the counter of Medical practitioner, pharmacies, advertisement poster on walls etc.

→ We strictly follow the roles that either in healthcare or in consumer products children's under the age should be avoided in any advertisement campaign.

GSK Business communication System

GSK has an internal communication system which holds the employee communicates each other on the platform of GSK.

There are so many plat forms to communicate like as

CEO engages a plat form from all over the world of 250 top people from different sections of the company to help the strategic change in different sectors of the company.

A CEO advisory board which helps the CEO from their ideas from across the world is also established.

The online version of magazine is published on the 100% recycled paper.

An online access on GSK TV to download the views and progress inside the company.

GSK has also an internal business communication system via intranet through that the messages, meeting across worldwide be conducted.


GSK is committed to bring different prospective and experiences at its plat form from all over the world's.GSK respect all its employees from any race, sexuality, gender and religion.

Employee Network: At GSK employee network is the important diversity. GSK has a strong employee network which depends upon Americans, Asians, Africans, guy, lesbian and bisexual.

Disability: GSK encourage the disable people to join their people and in UK it also work with employer form of disabilities.

Gender Diversity: GSK set a flexible plan for working in the company which is not effected their personal/home life especially women.Thats why women played a vital role in the growth of GSK by leading at their key role in the company. Worldwide positions of women are as follows:

Class No.

1- Executives/vice president 25

2- Directors 36

3- Managers 41

4- Different Management position 38

Human Rights condition at GSK:

GSK is committed to follow the rules from delivered by UN to the international human right commission. GSK uphold a high level of human rights with the employee, suppliers, communities and social network

A high standard of human right is essential for the GSK because:

1- Build our image in the society

2- Good relationship with the suppliers

3- Support the relationship with the communities near to our plants.

Relationship With suppliers:

GSK as a buyer of the raw materials, manufactured goods and services around the world has a better relationship according to the human rights commission.

Relationship with local communities:

GSK aims to have a good relationship with the local communities.GSK wants to minimize the influence on the local communities and aim to prosperity of the area.

Activities in the risky Areas

GSK aims to provide the medical facility in those countries where the political situation is not stabilized and crimes and wars are at these countries such as North Korea, Sudan and Burma because we are holding human rights.

Political contribution

GSK has adopted a new strategy for those countries where they are authorized by laws such as US and Canada GSK contributes in the political situation. GSK contributes £ 34700 in US and Canada.

Local Programs

→ GSK arrange a wild range of training programmes in the world. GSK trained 540 midwives in Vietnam from different ethnic groups

→ with the partnership of Hospice Casa Sperentei in Romania GSK arrange a program for the ill children.

→ GSK arrange $1 million donation for the new hospital in Philadelphia.

→ GSK introduced healthcare Impact award in the UK.

Working in Disaster relief Programmes

GSK adopted a humanitarian relief program for the emergency and disaster. In Burma after the disaster of cyclone GSK supplies the medicines with the partnership of Americares.After the earthquake in china and Hong Kong GSK gives 10 million Yuan and supplies basic medicines.

In 2008,GSK provides funds to the British Red Cross for a program to overcome the sanitation problems in Zimbabwe


GSK the world leader in the pharmaceutical company which Owens majority share in this industry working across the world.There are some strengths and weakness in the company. My suggestions to the company are these first of all pay attention to the field of advertisement and next of this are to expand its business in China and Japan which is a big market. Few weeks ago I heard about the company's strategy to focus on the Japan. One more thing is opportunities cost of medicines which is highly priced in the under developed countries. That's why company need to produced medicines at a lower price.