This management report critically examines the analysis of internal and external influences in contemporary business and with particular regard to SmithKline Beecham Company based in the United Kingdom and has its headquarters in Brentford, London. This will entail thorough analysis of the strengths, weaknesses, opportunities, and threats that Smithkline Company undergoes in line with the ever increasing ambiguity and uncertainty that may come up due to effects of globalization and ever changing business environment.

This report will also discuss the feature of globalization and how it has impacted the policies and decision making with regard to business transactions of GlaxoSmithKline Company (GSK). This study will also critically evaluate the effectiveness of this organization response to globalization in pharmaceutical industry. This management report will further outline recommendations that this company should undertake in order to cope with ever increasing changes that arise because of globalization.

Strategic Planning is the process of developing the company’s mission and defining specific methods of accomplishing it. It can be on a broader or narrow perspective depending on the scope of the goal. Strategic Research indicates that strategic planning is a bit different from long range planning whereby since it involves processes that are to be implemented immediately while the long range planning is regarded as a process of developing the mission and visions of an organization that should be accomplished in the near future (Hoyer, 2001).

Planning comes in a number of ways since all sectors in any other business require some form of planning in order to stick to what has been planned. And it is founding to be entailing the following factors first; there is financial planning which involves the budgeting allocations for all the programs being undertaken within the company. It also includes the setting and monitoring the financial spending of the Company in view of auditing any misappropriation of funds. Provision of benefits, compensations and salaries are also taken care of at this stage.

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Another section of business organizations that need planning is the policy formulation section. This is critical in that as a profit making company, strategies must be placed correctly to counter marketing issues such as competition from companies which manufacture the same product (Lee and Carter, 2005). Long-term planning is very crucial to all contemporary businesses; it is defined as that planning that entails an organization forecasting for a long period of time normally over three years.

Usually the management of the organization is expected to forecast the activities that will take place in the future business environment for instance, market shifts among other factors. Short-term planning on the other hand is the process whereby the management of an organization plans for its goals and objectives usually for a period of one to three years and it contributes to achieving the long-range plans of the organization. (Woods and Joyce, 2003) A mission statement is defined as a statement of what an organization aspires to carry out in its business endeavours.

In essence, it shows the main reason as to why an organization exists in its business settings. Generally a good mission statement should be broad, visionary, motivational, brief and concise, easily comprehendible and realistic in its nature. GSK mission statement reads as follows; “Our global quest is to improve the quality of human life by enabling people to do more, feel better, and live longer” GlaxoSmithKline, 2008). Vision statement on the other hand is declaration that aids in coming up with a good mission statement and it usually focuses on the main objectives of the organization.

For instance a good vision statement will clearly depicts market opportunities, organization’s customers, products/services and measures to be undertaken to achieve best results among other factors. Unplanned changes are those business environment changes that include shifts by rivals and market regulators and changing needs and desires of customers among other issues and such external changes are beyond the control of an organization. A good example of unplanned changes is the high labor turnover that impacts the organization’s objectives negatively.

Planned changes on the other hand are those changes that the organization desires to have and therefore such changes are implemented by the managers in order to realize the set objectives. Planned changes may entail new product development and introduction of new technology among other factors (Pearce and Robinson, 2007). It is therefore noted that for any organization including GSK to implement strategic planning, its management team should therefore ensure that the following factors are followed: SWOT Analysis

Modern businesses including GSK are faced with many challenges in their current business undertakings and there is a need for them to fight for their survival that results from global events and competition which affects them either positively or negatively. Business environment keeps on changing as businesses strive to maintain their market share and at the same time provide quality services to their customers. Business environment refers to both internal and external factors that may impact upon the growth and overall performance of the organization.

Modern businesses are forced to build economic and political connections that usually take the form of transfer of funds, goods, and people across state boundaries. This aspect of connection has also seen collective sharing of ideas and principles which have resulted to increase in the speed of change, vagueness, doubt, and unpredictability in business undertakings. Due to these changes in contemporary business, there is emergence of new opportunities and strengths that businesses including GSK have to take advantage of them in order to increase their productivity of their operations.

However, there exist new threats and weaknesses to modern businesses including GSK which makes the operations of these businesses more cumbersome and hence if not carefully taken care of may lead to reduction in productivity and hence a decline in revenues of businesses. The importance of SWOT analysis should be emphasized in order to get rid of unnecessary shortcomings that involve business transactions. Using the SWOT analysis technique, business environment examination is very crucial and can be divided in to two types of analysis; the external environment analysis and internal environment analysis (Collett, 1999).

Strengths Strength is said to be a particular ability or distinguishing proficiency that a company has and can utilize it in order to perform better than its competitors and hence attainment of its strategic goals effectively without much difficulty. GlaxoSmithKline Company has a strong brand name of its products which helps the company to have a competitive advantage over the other pharmaceuticals producing organizations. As the second biggest pharmaceutical company, the company has diversified to over seventy countries in the world.

Due to this diversification, the company managed to collect revenue of almost twenty billion pounds from sales of its products. GSK has over one hundred thousand employees in its all investments around the world. The company has diversified much because of its best marketing strategies that the company uses. For example GSK has around forty thousands employees in the sales department that have enabled the company to do well globally. The employees are said to be competent enough to perform their marketing responsibilities, for example, the sales staff are constantly trained to adapt to changes brought about by globalization.

The company has the best distribution channels in the industry which has been a strength that has significantly helped the company to cope with completion and thus dominate the pharmaceutical industry market for a long time. The other strength associated with GSK Company is it has the ability to identify the market segments and hence the competitive position of the company and has in the process developed workable marketing strategies. GSK has networked well and it is for this reason that the company can compete with Pfizer Company, the largest pharmaceutical company in the world.

The amount of revenues generated which is estimated to be twenty three billion pounds with almost eight billion pounds net profit annually has been attributed to the success of the company in coping with competition in the local market and the international market. Indeed, GSK Company is quoted in both London and the New York stock exchanges which have helped the company to strive better than its other competitors (Anthony, 1998). Weaknesses A weakness can be defined as any feature of the company which may deter the company from achieving its objectives or goals.

Usually, it covers the firm’s assets, resources, and capabilities. Latest research indicates that GSK company is faced with few weaknesses which if not taken care of it may hinder the company’s success. GSK Company’s set of laws, measures, and policies are said to be unworkable in some markets, a reason which have seen the company’s performance deteriorate in some of its market. For example in African countries, GSK products have performed poorly in the market due to lack of vigorous advertisements by responsible departments.

GSK Company has also been associated with the weakness of lack of commitment on the side of its employees. According to research conducted among the employees it was evidenced that there was a habit of reluctance by employees on fulfilling their duties. The report suggested that the employees have a weakness of being aggressive because they have an attitude that the company’s products are already doing well in the market and they only have little to do. This weakness is mainly associated with GSK sales and marketing staff, because they have been reluctant on using aggressive methods of attracting and retaining their customers.

Reports suggest that they have not come up with suitable marketing strategies to cope with the ever increasing competition in the industry. The organization culture of doing things and reputation has been questioned by many people outside the UK and especially in Africa. There has been an argument that the products that the company is producing are harmful to human health, a development which has reduced their market share. The systems of production, controls, and work methods have been under scrutiny in the past few years.

The company has failed to address this weakness and thus have been facing competition that they have not been able to cope in pharmaceutical industry (Anthony, 1998). Opportunities An opportunity is an attractive venture for a company’s operations which if exploited will lead to a significant upward change with desired results such as increase in profits margins and growth. An opportunity in this dimension can be defined as any event, development, or a feature of the external environment which creates conditions that are beneficial to the business in relation to the company’s strategic objectives.

There are many opportunities that exist for GlaxoSmithKline Company in relation to pharmaceutical up-and-coming markets all over the world. Because of successful exploration of new markets for example in Africa and Australia, the company has an opportunity to divest to these markets without much difficulty. The products offered by this company are on demand are widely known and they should take the advantage by increasing their production. GlaxoSmithKline Company has an established financial base as compared to its competitors.

The company should therefore use its surplus funds in building new markets and thus they will experience an opportunity for higher profit returns. GSK Company has not fully utilized this opportunity, because to be realistic enough the company should increase its market dominance by serving not only seventy countries but it should be more. The company also has an opportunity of technological advancements as a result of globalization and the organizations response to change in technology has been reported to be fair.

For example, GSK Company has responded well to selling of its products electronically. The company has fully utilized the use of internet by adopting a policy e-commerce which has helped the company to access many new markets of its products. The company also enjoys a good political/legal relationship in its various markets with the host governments. This is because the company has fully complied with licensing activities and its products have been approved by the respective bureau of standards in those countries.

This opportunity has presented the company with a chance of diversification within those markets and thus it has witnessed significant increase in company’s revenues (Anthony, 1998). Threats Threats in modern businesses are numerous and differ due to the nature of transactions being undertaken. A threat can be termed as an existing environmental feature which will cause problems which are likely to deter the accomplishment of managerial objectives. Threats can manifest themselves in the form of, stiff competition, escalating interest rates, government laws and rules related to business, decreasing real income among others.

GSK Company is now facing stiff competition from its main rivals like the Pfizer Company, which has seen the company drop some of its markets in order to concentrate on some other markets which the company does not encounter stiff competition. GSK Company has been subjected to threats of government legislation and legal restrictions. Reports indicate that in some countries, the company have been threatened to be deregistered by the host governments because of the nature of competition that they are engaged in with the local companies.

This threat has affected the business undertakings of GSK Company in that it has lead to reduction of profits because the company does not enjoy good business environment (Collett, 1999). GSK and Globalization Globalization can be defined as a trend towards a more integrated global economic system that occurs with increased disregard for national borders. Globalization may apply to the world, country, industry, a business or even a function within an organization or company.

The growing economic interdependence among various countries marks increased globalization. Because of development of advanced technology the world has increasingly become a global village and thus international business concept has come up. In the recent past, trading activities has become increasingly global in some way because of the need to gather and increase the company’s financial bases. Advancement in technology including communication efficiency and better international relations has contributed to the promotion of the international trade.

Competition has however become a great challenge to the success of global business management but most companies are rising to the challenge. To take advantage of the world being global village and to achieve greater investments and better market opportunities in the international market, it is necessary that GSK Company should undertake primary and secondary market research to ensure that information regarding the target markets in countries desired is obtained (Lee and Carter, 2005).

GSK Company has not been left backwards in international business concept through globalization. Indeed the company has diversified in many countries because of the aspect of globalization. Globalization has led to both prosperity and impoverishment of GSK Company. However, the advantages of globalization in respect to GSK Company have outweighed the disadvantages. The aspect of globalization in relation to the company has affected the company’s policies and decision making. The Company’s structure has been affected greatly by globalization immensely.

For example because of increased in competition, the management of the company have had to come with decisions that can create a good environment for business transactions that will help the company maintain its customers and thus sustains its growth. The entire management of GSK Company has had the task of applying plans of actions that include policies designed to respond to threat of new entrants to the market, bargaining power of buyers, bargaining power of other suppliers, threats of substitute products, and rivalries among existing firms.

Decisions regarding to employees, operations management, and the marketing decisions have been constantly revised by the management of the company in order to match international standards that will foster success in a global environment. For example, employees have been trained to cope with new changes like introduction in technology, marketing strategies developed ensures fair competition in the industry, and the products of the company have been developed and designed to meet required international standards (Hill, 2005).


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