Vision&Mission:

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.

Operating responsibly and ensuringour valuesare

embedded in our culture and decision-making helps us
better meet the expectations of society.

ANALYSIS OF MISSION STATEMENT

COMPONENTS

YES/NO

DESCRIPTION

Customer

YES

People

Product

NO

Market

YES

grow a diversified
global business

Technology

YES

simplify the operating

model

Survival Growth

YES

Increase growth

Philosophy

YES

improve our long-term

financial performance

Self-Concept

NO

Public Image

YES

to increase growth,
reduce risk

About GlaxoSmithKline Pakistan Limited

GlaxoSmithKline Pakistan Limited was created January 1st, 2001

through the merger of SmithKline and French of Pakistan Limited,
Beecham Pakistan (Private) Limited and Glaxo Welcome (Pakistan)
Limited- standing today as the largest pharmaceutical company in
Pakistan.As an industry leader we are committed to our mission of
providing patients quality products to help improve their lives.

GlaxoSmithKline (GSK) is a world leading research-based

pharmaceutical company with a powerful combination of skills and
resources that provides a platform for delivering strong growth in
today's rapidly changing healthcare environment.GlaxoSmithKline
Pakistan Ltd was formed in 2002 as a result of the global merger of
two pharmaceutical giants; GlaxoWellcomeplc and SmithKline
Beecham plc.

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:

Grow a diversified, global business

We are creating a more balanced business with a wider global reach and broad
portfolio. This expands access to our products and produces sustainable growth for our
shareholders.

Deliver more products of value

We are investing in innovation to improve our ability to create new medicines, vaccines
and consumer healthcare products that offer valuable improvements in treatment.

Create a culture of individual empowerment

We are building a culture where employees are empowered, united by our values and
able to achieve great things.

Simplify the operating model

As our business continues to change shape, we are transforming how we operate so
that we can reduce complexity and become more efficient. This is allowing us to free
up resources to invest in other areas of the business and improve shareholder returns.

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.

Corporate equality, US Human Rights Campaign Foundation

best diversity company
Diversity and equal treatment
business champion
Energy management through resilience and mental wellbeing
Most socially responsible company
Most family friendly company
Achieving significant milestones in leadershipinitiative
Global Super Achiever award
Excellence Through People standard
Supporting the local community
World-class health and safety excellence awards.
Gold H.E.A.L.T.H award
CEO cancer gold standard
best employers for healthy lifestyle gold award
Unique workplace ergonomics
Helping employees recognize health and performance links
Awards for excellence 2007

ODUCTS OF THE COMPANY

MEDICIN
ES
GSKpharmaceutical
products include treatments for asthma, HIV/AIDS,
malaria, depression, migraine, diabetes, heart failure, digestive conditions
and cancer.
GSKtop selling products in 2007 are designed to treat:
Asthma , Epilepsy ,Diabetes , Herpes ,Migraine

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:

Cervical Cancer, Diphtheria ,Hepatitis A and B, Influenza Meningitis, Polio,

Rotavirus, Whooping Cough

LIST OF VACCINES

A C W Y Vax, Ambirix,Bootrix, Cerarix, Engerix, Fendrix, Fluarix, Flulaval,

Havrix, Heptyrix,Hiberix, Infanrix, Infanrix IPV, Infanrix IPV+Hib, Kinrix,
Menitorix, Pediarix, Poliomyelitis,Priorix, Rotarix, Twinrix,, VarilirixETC.

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.

LIST OFCONSUMERHEALTHCARE BRANDS:

Abreva, Abtei, Alli, Alluna,Aqua fresh, Astriginsol.BC

Powder,Beano,Beechams,Breath Right Cetebe , Chap-et, Chlorhexamed,
Cholinex , Coldrex , Citrucel, Commit Lozenge, Committed Quitters, Contac,
Corega , Corsadyl , Cortal, CrocinDebrox, Dequadin, Dr.B
estEcotrin, Eno, Eumovate, EunovaFenbid, Feosol, Fiber Choice,Flinonose
Allergy, Formigran,Gaviscon,Gerital, Gly-Oxide, Goodys Powder,
GranufinkHibitane, Hinds, HorlicksImigran Recovery, Insto, Ioden, Iodoson

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

Gamble, Colgate-Palmolive, American Home Products, Unilever and

Johnson & Johnson. In the USA, the major competitor products in OTC
medicines are: Tylenol Cold (cold remedy),Clearasil (acne treatment),
Pepcid (indigestion) and private label in smoking cessation. In the UK the
major competitor products are: Lemsip (cold remedy), Nurofen and Anadin
(analgesics) and Nicotine (smoking cessation remedy).In nutritional
healthcare the major competitors to
Horlicks are Ovaltine and Milo malted food and chocolate drinks. The
competitors to Ribena
are primarily local fruit juice companies while Lucozade competes with
other energy drinks.

ABOUT EMPLOYEES

GlaxoSmithKline plc is rated # 5 in number of employees category among

related companies. The total workforce of Drug Manufacturers - Major
industry is currently estimated at about 789,792. GSK retains roughly 99,451
in number of employees claiming about 13% of equities under Drug
Manufacturers - Major industry.

About Number of Employees

Employee typically refers to an individual working under a contract of
employment, whether oral or written, express or implied, and has recognized
his or her rights and duties. Most of corporations are included as employees
and contractors are generally excluded. Compare Gsk to competition predict
GSK.
Based on recorded statements GlaxoSmithKline plc is currently employing
99.45 K people. This is 1190.38% higher than that of the Healthcare sector,
and 546.29% higher than that of Drug Manufacturers - Major industry, The
Number of Employees for all stocks is 967.71% lower than the firm.

Pharmaceuticals
competition

The pharmaceutical industry is highly competitive. GSKs principal competitors

range from small to large pharmaceutical companies often with substantial
resources. Some of these companies and their major products are mentioned
below.

Eli Lilly and Company

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

What is company doing?

GSK manufactures drugs and vaccines for major disease areas
such as asthma, cancer, infections, diabetes, digestive and
mental health conditions, the biggest selling of which
were,Avodart,Flovent,Augmentin,Lovaza, and Lamictal in
2013Many medicines were historically discovered or developed at
GSK and its predecessor companies and are now sold as generics.
Its drugs and vaccines earned 21.3 billion in 2013. Its consumer
healthcare division, which earned 5.2 billion in 2013, sells oral
healthcare and nutritional products, drinks and over-the-counter
medicines, including Sensodyne Boost and Horlicks.
GlaxoSmithKline received top ranking among international
pharmaceutical companies in the Access to Medicines Index in
2010, 2012 and 2014.In 2014 the company applied for regulatory
approval for the first vaccine against malaria. The vaccine was
developed as a joint project with the PATH vaccines initiative and
the Bill and Melinda Gates Foundation. The company has
committed to make the vaccine available in developing countries
for a price set at 5% above the cost of production.

GlaxoSmithKline PESTEL Analysis

GlaxoSmithKline PESTEL Analysis.The level of implementation of
GlaxoSmithKline (GSK) marketing strategy is subject to a range of external
and internal factors that shape overall marketing environment for the
business. PESTEL strategic analytical tool can be used to study the impacts of
external factors to the business where the abbreviation stands for political,
economical, social, technological, ecological, and legal factors.
Political factors: Political factors affecting the implementation of GSK
marketing strategy include possible changes in international trade regulation
and competitive regulation likely to be introduced by the governments of
China and India.
Economic factors :Economic factors impacting GSK marketing strategy
include high rate of economic growth in China and India. Moreover, current
economic uncertainties associated with European markets might have
negative implications on the marketing strategy
Social factors: Social factors with potential implications on GSK marketing
strategy are changes in consumer lifestyles, shifts in consumer attitudes and
opinions etc. However, Cameron (2012) specifies increasing level of customer
resentment towards large amounts of profits made by pharmaceutical
companies and sliding images of large pharmaceutical companies as the most
significant social factor in the current environment.

Technological factors: Technological factors include breakthroughs in

pharmaceutical industry, issues associated with licensing and patenting
drug manufacturing technology, as well as, the level of development of
industry technology.
Ecological factors: Ecological factors also have specific implications on
GSK marketing strategy that include problems related to global warming,
and impact to the environment of GSK activities, and the reaction of
stakeholders to this impact
Legal factors:Legal factors as one of the most important factors involve
rules and regulations directly and indirectly related to GSK operations in
local markets, as well as, European law and international trade rules,
regulations and agreements.

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:

The threat of demographic change and ageing

The threat of counterfeit drugs being sold in competition with legitimate
products
Higher expectations of people to health system
The increasing cost of drug trials and ever higher standards imposed by
national drug approvals bodies.
An increase in the number of safety issues surrounding products The
threat of competition from products similar to GSK's in R&D that reaches
the market close to or before GSK's products.
The ecological and public health threats
The new economic potential of emergent China, India and competition in
diverse regional markets.

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

Income statement in PKR

Year on year GlaxoSmithKline Pakistan Ltd grew revenues 10.51% from
25.23bn to 27.88bn while net income improved 58.82% from 1.06bn to
1.69bn
REVENUE

NET INCOME

Cash flow in
PKR

In 2013, cash reserves at GlaxoSmithKline Pakistan Ltd fell by 218.48m.

However, the company earned 1.06bn from its operations for a Cash Flow
Margin of 4.19%. In addition the company used 285.20m on investing
activities and also paid 989.81m in financing cash flows.
CASH FLOW

CASH

Profit and Loss Account

for the year ended December
31, 2013

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

Profit and Loss Account

for the year ended December
31, 2013

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%

Total Non-Current Assets

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

Industry Analysis: External Factor

Evaluation (EFE)
Matrix
Key External Factors
Weight
Rating

Weighted
Score

Opportunities
Varying benefits of merging with Wyeth

.08

.24

Diversification of product offerings and

make further inroads into emerging
markets

.08

.08

Benefits of giving away Pfizers products

to unemployed citizens

.15

.60

Strategic placement: Bold and

innovative alliances with natives of the
emerging markets

.15

.60

.06
.08

2
3

.12
.24

Unexpected changes could yield

unpredictable currency fluctuations

.10

.40

High competition in all its business

segments due to the presence of many
players in the industry.

.10

.40

Threats
Multiple and diverse regulatory
The
environments
loss of jobs to contend with from
international and domestic.

Termination of its long-standing

partnership

.08

.16

Decline in revenue sales

.06

.18

Total

1.00

Internal Factor Evaluation (IFE) Matrix

Key Internal Factors

3.2

Weight

Rating

Weighted Score

Increase in size and cash flow

0.05

0.15

Product distinctive competencies

0.06

0.18

Distinct Research organizations

0.09

0.27

Company structure

0.20

0.8

Patient and prescription assistance

program

0.10

0.4

Increase in size

0.05

0.10

U.S. vs. International sales

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:

it is characterized by rapid growth and

therefore consumes high amount of cash. However, they have low
market shares and do not generate much money, but it has the
potential to gain higher market shares and become a star and finally a
cash cow when they market grow slow

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

LONG TERM OBJECTIVE

- Grow a diversified global business
- Deliver more products of value
- Simplify GSKs operating model
In a presentation to investors today, Andrew Witty, CEO GlaxoSmithKline,
set out three new strategic priorities that aim to increase growth, reduce
risk and improve GSKs long-term financial performance.

Grow a diversified global business

GSK will seek to generate future sales growth through supplementing
strength in the core small-molecule pharmaceuticals business, with new
investments in fast growing areas such as vaccines and consumer healthcare
and new growth areas such as biopharmaceuticals, said Witty. At the same
time, we are actively seeking to unlock the geographic potential of our
different businesses, particularly in emerging economies.

Long term objective

The business is focused around the delivery of three
strategic priorities which aim to
Increase growth rate
Reduce risk factor
Improve our long-term financial performance.
Deliver more products of value, and simplify the
operating model
GSK creating a more balanced business and product
portfolio, capable of delivering sustainable sales growth.
Our business continues to change shape, we are
transforming how we operate so that we can reduce
complexity and become more efficient

Deliver value products:

Focusing on the best science

Focus on research and development
Diversifying the level of externalization in research to focus on
disease area , where GSK believe the prospects for successful
registration and launch of differentiated medicines

implifying the operating mode

As GSK continue to change shape , so it is essential that reduce the
complexities in operating model, improve efficiencies and reduce cost.
Re-shape manufacturing

hallenging and aspiring Missio

GSK has a challenging vision and mission is to improve the quality of
human life by making people to do more feel better and live longer.
Long term incentive plan:
Long term incentive plan
Awards are made to executives under the following long
term incentive plan,
i)Deferred annual bonus plan
ii)Performance share plan

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

1.Strategic agreements with

other pharmaceutical
companies
andorganizationstoboostits
research.
2. Increasing awareness about
healthcare needs
3. Increasing demand for
quality healthcare solutions

Strong sales and

marketing infrastructure
and Strong R&D
departments can provide
the extra benefits to
company from this GSK
Future prices will help in
providing to employees.

Company has a chance to

grow well cause of
agreement with other
pharmaceutical
companies for the
number of bulk buster
products.

QSPM

The QSPM is designed to determine how feasible and attractive possible

strategies are and to weight them against each other. It Co-insides with
Internal and External Analysis as well as the SWOT Matrix.

Strategic Alternatives
1

Utilize all aspects of

strategic Acquisitions for

Better employee programs to

heighten perceived

For maximum expansion

and diversification

Value of salary, benefits, and

self recognition

Key External Factors

Weight

Opportunities

AS

TAS

AS

TAS

1. Increasing elderly population worldwide.

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

4. Driving out competitors with lower prices

0.03

5. Potential drug revenues after a competitors patent expired.

6. Penetration of Vaccine and Biologics for emerging international
markets (Gardasil)

0.03

0.06

0.04

0.16

0.08

7. Product Diversification through Acquisitions

8. Diversification into biologics, diabetes, oncology, and infectious
market segments
9. Constant growth of pharmaceutical and Health Care Industry by
10%
10.Educate staff to promote loyalty through relationships from
distribution channels

0.07

0.28

0.14

0.06

0.24

0.12

0.08

0.16

0.24

0.07

0.28

Threats

1. Risk of expensive class action law suits

0.06

0.24

2. Loss of patent protection

0.08

0.08

3. Tightening of FDA Regulatory Oversight

0.04

0.08

4. Increased global competition

5. Price of prescription drugs increase which is reducing
Medicaid drug benefits
6. Failure to identify risks due to lack of time & study of longterm effects
7. Compete with smaller generic company along with other
larger firms

0.02

0.06

0.04

0.03

0.02

0.03

0.09

0.06

8. Expensive Research & Development costs

0.04

0.12

0.04

9. Industry marked by rapid advances

0.03

0.09

0.09

10. Hard to forecast external factors

0.08

0.16

Total

Strengths

1. Brand Image and Awareness

0.05

0.15

0.1

2. Merck Lobbies for healthcare reforms

0.05

0.05

3. Highest Profit Margin in the industry

0.08

0.24

4. High volume of product approval by FDA

0.07

0.28

0.07

5. Diversified Product Portfolio

0.07

0.28

0.07

6. Knowledge of benefits and risks

0.06

0.18

0.18

7. Sophisticated Online Search Tool (mercksource.com)

0.04

8. IPhone application

0.05

9. Transparency

0.03

0.03

0.06

10. Expansion to developing countries (Access)

0.07

Weaknesses

1. High Layoffs (Response to loss of revenues)

0.03

0.12

2. Vioxx - Product Liability ($750 million)

0.08

0.08

3. Highest R&D with historically increasing expenses

0.07

0.21

0.21

4. Low innovation in response to weak economy

0.06

0.18

5. High salary of skilled pharmaceutical representatives

0.03

0.12

6. Revenue drop at $347 million

0.02

0.06

0.02

7. Weak core portfolio (Overly dependent on joint venture)

0.02

0.06

8. Growth rate unstable (Hard to forecast future revenues)

0.07

0.07

9. Aggressive marketing open to scrutiny by government

agencies

0.02

10. High institutional Ownership (IO)

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.

A SWOT analysis should not only result in the identification of a corporations

core competencies, but also in the identification of opportunities that the firm
of due to a lack of appropriate
is not currently able to take advantage
Strengths
Weaknesses
1.HighLayoffs(Responsetolossof
resources.

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.

1. Create product knowledge program geared towards

older people who

1. Higher staff salary to encourage learning

and effectiveness

2.StrategicAcquisition

May not be a technology savvy as the average

customer, also in different languages geared toward
different cultures

(W1, W5, W10, O10)

3.FocusingonResearch&Developmentfor
Chronicdiseasesvs.Acutediseases

4.Drivingoutcompetitorswithlowerprices
5.Potentialdrugrevenuesaftera
competitorspatentexpired.

(S1, S2, S6, S7, S9, S10, O1, O6, O9)

2. Utilize all acquired companies and their products to
emerge in combined markets

(S5, S6, S7, S8, O2, O7, O10)

6.PenetrationofVaccineandBiologicsfor
emerginginternationalmarkets(Gardasil)
7.ProductDiversificationthrough
Acquisitions

3. Make access problems known to public and set up

convenient ways for people to donate

8.Diversificationintobiologics,diabetes,
oncology,andinfectiousmarketsegments

4. Utilize Combined capacity to stay ahead of

competition and exceed industry growth of 10%

9.Constantgrowthofpharmaceuticaland
HealthCareIndustryby10%

(S2, S3, S10, O1, O6)

(S5, O2, O8, O10)

5. Utilize not only products and product knowledge/

10.Educatestafftopromoteloyaltythrough Research to better both companies products. Combine
relationshipsfromdistributionchannels
research to make new products

(S4, S5, O2, O3, O7, O10)

2. Human Resource restructure geared

towards higher morale and loyalty

(W10, O10)

Threats

1.Riskofexpensiveclassactionlawsuits
2.Lossofpatentprotection

3.TighteningofFDARegulatoryOversight

S-T Strategies

W-T Strategies

1. Focus research on stable Top sellers (Innovation)

1. Form a layoff plan that will clearly show how

employees to be layed off are

(S4, S9, T2, T7, T9, T10)

2. Human resource restructure geared at providing more

programs for employees

4.Increasedglobalcompetition

And a better sense of team and belonging

5.Priceofprescriptiondrugsincreasewhich
isreducingMedicaiddrugbenefits

(W1, W5, O9, O10)

6.Failuretoidentifyrisksduetolackof
time&studyoflong-termeffects

7.Competewithsmallergenericcompany
alongwithotherlargerfirms

8.ExpensiveResearch&Developmentcosts

9.Industrymarkedbyrapidadvances

10.Hardtoforecastexternalfactors

Chosen (W1, W2, W5, W10, T1, T2)

2. Increased research on growing epidemics

and new illnesses
(W3, W6, W8, W9, T8, T9)

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