Strategic Management and Strategic Competitiveness Case

Assignment 1: Strategic Management and Strategic Competitiveness  

Myeshia Callender

Strayer University

BUS490 Business Administration Capstone

Professor Christopher B. McGrath

April 19, 2015

Abstract

On January 1, 2001 GlaxoWellcome plc and SmithKline Beecham plc merged and birthed GlaxoSmithKline plc (GlaxoSmithKline, 2014). GlaxoSmithKline plc healthcare company is trailed by a slew of acquisitions and mergers before it reemerged as the London based organization of GlaxoSmithKline plc. GlaxoSmithKline plc is a global healthcare company. The organization handles research and development in a series of products in three primary areas of pharmaceuticals, vaccines, and consumer healthcare (GlaxoSmithKline, 2014).

Global Position

GlaxoSmithKline (GSK) has a significant global presence with commercial operations in more than 150 countries, a network of 84 manufacturing sites in 36 countries, and large R&D centers in the UK, USA, Spain, Belgium, and China (GlaxoSmithKline, 2014).  The business of medicine is a global business and GlaxoSmithKline is looking to make its mark by accessing markets with high growth potential, such as Asia Pacific, Latin America, and Japan (GlaxoSmithKline, 2014). The global pharmaceutical market continued to grow with sales of $393 billion in January through September 2014, up from $362 billion for the same time period in 2013 (United States Securities and Exchange Commission, 2014).

The company did see some shortfalls, sales were down 7 percent and the total earnings per share was down 40 percent (GlaxoSmithKline, 2014). Despite some pressures in the market, the organization saw strong performances from a number of other areas of the business, further progress in R&D delivery, multiple new product launches as well as continued delivery of operations and financial efficiency through the restructuring of their cost base (GlaxoSmithKline, 2014). At the same GlaxoSmithKline also protected the investments the company needed in order to preserve other business ventures for future growth of the organization (GlaxoSmithKline, 2014).

Life expectancy has increased globally due to advances in medicine and people all over the world are taking a more active role in their health and healthcare decisions which is creating a tremendous demand for healthcare products. With pricing and demand frequency pricing pressures and competitive intensity in both the public and private marketplaces makes it vital for GlaxoSmithKline and other manufacturers to improve the quality of medicines and vaccines in order to insure the safety of patients and the fidelity of the healthcare system throughout the global market (GlaxoSmithKline, 2014).

Technology Impact

Pressure to manufacture cheap medications has led GlaxoSmithKline to embark on its most recent venture, CodeEvolver, which will enhance development of novel enzymes for use in manufacturing of GlaxoSmithKline’s pharmaceutical and health care products (GlaxoSmithKline, 2014). The organization will also use the technology to develop new therapeutic, diagnostic, and prophylactic products in the human health field. This technology transfer is currently being installed at the Upper Merion, Pennsylvania research and development site (GlaxoSmithKline, 2014).  GlaxoSmithKline’s $25 million dollar investment is projected to reduce costs and increase efficiencies in pharmaceutical manufacturing. The use of biocatalysts to manufacture pharmaceuticals has the potential to reduce the number of manufacturing steps, reduce the use of hazardous chemicals, curtail the production of toxic waste, and reduces the energy strength of the process all of which are beneficial not only to the company but also to consumers and the planet (GlaxoSmithKline, 2014).