You will prepare and submit a term paper on Glaxo Smith Kline. Your paper should be a minimum of 2000 words in length. First of all, strategic planners at GSK had expressed their intention in 2008 towards accomplishing goals of rapid business expansion, growth and sustainability through offering and ‘delivering more products of value’ to their clients and increasing their focus on Research and Development to gain a competitive edge over their rival multinational pharmaceutical competitors such as Pfizer, Novartis and others etc. Therefore, the managers identified ‘new growth areas such as biopharmaceuticals, vaccines and other consumer healthcare products’ as part of their Diversification strategy. Secondly, GSK devised a strategy to restructure / reorganize / reengineer its organizational operations so that it could reduce the costs of doing business thereby increasing its operating margins and return on investments in the short and long run. In addition, the company managers have also considered the role of Brand Management and Effective Marketing Strategies in today’s highly globalized, unstructured, unclear, unexpected and unpredictable business environment. Hence, they have made ‘Brand innovations and adjustments in their marketing / advertising strategies’ to enhance their reputation and goodwill in the marketplace while accomplishing their goal of reaping financial benefits and excessive profits simultaneously. The strategies formulated and expressed in 2008 were openly communicated to employees, shareholders and stakeholders while implemented in subsequent fiscal years. (GSK Press Release, 2008) and (Pharmalive, 2010)It is worthwhile to mention that overall demand for pharmaceuticals is relatively inelastic while it is highly inelastic for live-saving drugs. Hence, the economic recession is not among the major factors that reduce the demand for drugs for a company. Rather, there are strictly internal factors such as higher costs of business, management inefficiencies, poor quality (side effects), etc or external factors such as ban by governments, expiry of patents, lawsuits, legal licensing and registration barriers, the threat of substitutes from competitors and potential new entrants that lead to stiff competition among different producers. .
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