Applied Corporate Strategy

This document provides an in-depth analysis of applied corporate strategy, focusing on GlaxoSmithKline Plc. It covers external analysis, including Pestle analysis, and internal analysis using Porter's Five Forces. The document also discusses TOWS analysis and the opportunities and threats in the pharmaceutical industry. Suitable for students studying corporate strategy or business management.

Applied corporate
strategy

Table of Contents
INTRODUCTION...........................................................................................................................3
Main body........................................................................................................................................3
External analysis for the company..............................................................................................3
Porter's Five Forces Analysis......................................................................................................6
Internal analysis of GSK .................................................................................................................7
TOWS Analysis .........................................................................................................................7
VRIO Analysis:...........................................................................................................................9
EVALUATION..............................................................................................................................10
SAF Criteria..............................................................................................................................10
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................12

INTRODUCTION
Corporate strategy is the process in which define the long term vision which organisation
set to seek and also to create the long term value chain and the motivation to achieve desire aims
and objectives effectively. In addition to this, corporates strategy is the continuous process which
requires the constant effort to engage the investors in trusting the company with the money hence
this also increase the company cost in the well define manner (Boone and et., al., 2019). The
report work is based upon GlaxoSmithKline Plc which is biggest pharmaceutical firm in entire
UK. Recently firm is doing joint venture with Pfizer in order to expand the market. Apart from
this, report covers about detail explanation about Pharmaceutical industry. At last this covers
about evolution of the strategy of joint venture.
Main body
External analysis for the company
The organisation have to focus on external environment as market is very dynamic and
this is essential to maintain the environment to achieve desire aims and objectives in the well
define manner. In the context of GSK management can improvise and implement pestle analysis
to understand the market and offer better quality product and service to the customer. Here is the
detail explanation which is used for assessing the external environment which are describe
below:
Pestle analysis:
This is framework which is used by many organisations to figure out the changes to avail
better quality product and service. For the organisation like GSK plc manager can use such
techniques to have keen knowledge of market. Hence this also develops a sustainable business
model to run business successfully for the long term. Here are some points which are explained
below:
Political factor: In this factor it states about all the rules and regulation which are frame
by the government. These are considering as the various policies and international trade law
which are used for the proper functioning of organisation. The present political condition of
UK is stable and has Democratic Party as this beneficial for company to operate the business
effectively. Apart from this, government also support the business and provide them funds to
increase their market share in the shorter time span. Beside this, Brexit have impact the

business as most of the business is done through the European Union which leads expansion
and growth of the company. This in result that there is an huge threat for the Pharmacy
industry as the government have to assist with measure to increase the business effectively.
This includes the elements associated with political governance, stability and policies. This
has massive significance in the direction of the increase of a corporation. In cutting-edge
time frame the political situation in UK is quite solid that helps nice effect over all industrial
companies such as GlaxoSmithKline Plc.
Economical factor: These are the factor which is consisting of foreign exchange, inflation
rate and GDP gross domestic product. All of these have positive as well as negative impact on
the minds of customer. The UK market is developed and people have higher disposable income
which means that people can spend more which is beneficial for the firm to achieve desire aims
and objectives effectively. For the organisation like GSK plc the firm can figure out the
healthcare schemes and offer them better product as this aid to capture large market share.
Furthermore organisation can use effective channel for distribution as this keep the price
constant. This has vital factor that leads the non-stop boom of an employer. The elements
included beneath this are related to glide of coins and per capita earnings. In the cutting-edge
situation, drift of cash and per capita profits each are quite extensive that demonstrates superb
effect GlaxoSmithKline Plc in enlargement of business.
Social factor: There are different element which is associated with the social factor which is
individual beliefs, backgrounds and educational level. Such kind of components effect the
business as firm have to identify the different person background and offer them product as per
their needs and wants respectively (Cardoni, Kiseleva and Lombardi 2020.). Hence this create
image in the minds of customer and GSK can take this opportunity to execute the operational
activities under such industry. These UK customers are more concern about their health which
allow company to expand the market as to earn higher revenue. This factor includes the
perception of society and their requirement. There is requirement for providing effective services
and products to the societies or an individual that will help them GlaxoSmithKline Plc by
creating opportunity to improve sales and profitability.
Technological factor: As the technology has changed the way of doing business which
make easier for the company to use such method to improve the customer experience. This factor
involves different kind of advancement such as research and development as to improve the

quality of the service and product. The market of UK has seen drastic change in the technology
where customer have move towards online shopping. For the pharmacy company like GSK the
management have to introduce new method of doing business as this will help in attracting large
market share effectively. There is huge guide of this component in development of the enterprise
activities. This consists of approximately the presence of technological nature. UK is especially
advances that provide the opportunity to GlaxoSmithKline Plc that use revolutionary gear and
techniques for improvement of productiveness and great in their services.
Legal factor: While conducting business opportunity firm have keep in mind the legal
opportunities and rules which are present in the market. This factor consists of different kind of
rules as well as regulation which are used to by the company for the smooth functioning of
organisation. In regards UK market there are very strict laws which are made by the government.
As there are several laws such as for buying medicines the proper prescription must be given by
the doctors to purchase the medicine. Apart from this, the legal authorities are made to reduce
theft and risk present in the market. So the company have to focus and manage all the work
effectively. This has dual impact over the operations of an company relying upon the ability of a
management. This includes the policies and policies which might be framed by way of
authorities for governing the commercial enterprise operations of a corporation. The fulfilment
of employment related legal guidelines allows constructing image but concurrently improves the
cost of manufacturing.
Environmental factor: It came in the picture in recent year where the different climate and
geographical factor are considered. In order to execute business effectively organisation has to
focus on the surrounding and reduce the carbon footprint for the coming future. UK government
have made strict rules which used to manage and control the processing of Pharmacy Company
as to reduce harmful chemicals present in the market. As this industry produce high quality of
pollution which directly impacts the environment so this is vital for the company to take
effectively measure to avoid pollution. There are different opportunities present in the market
and with the help of technology can minimize the impact and the environment cleaner and safer
for the public. It could be an possibility for the pharmaceutical companies to merge with such
organisations which are offering anti waste devices so that enterprise act could be executed
properly and able to achieve profit for the company. This component consists of the aspects
related to protection of surroundings and discount of organisational negative effect. This has

large importance in improvement of precise presence and picture in society. This creates the
opportunity for GlaxoSmithKline Plc to convey new components for constructing environmental
safety.
Hence this has been analysed from the above stated report that, there are different factor
which company should focus as to achieve desire aims and objectives effectively. The
management of the company have to analyse all the market activities and improvise the plan to
handle and operate business effectively. All these factors are used to checked properly and make
sure that each work should be managed as to make changes which increase the profitability.
Porter's Five Forces Analysis
These are the forces which are used to determine the different structure and the level of
competition present in the market. If there is strong competitive forces present in the sector
which reduce the profitability as well as market share to some extent (Činčalová and Hedija
2020). Apart from this if the company like GSK plc have low barrier to enter to have few buyers
and the supplier can charge high price present in the market. The management of the firm have to
use such model to understand the market.
Competitive rivalry: This can be used the different level of competition which are
present in the organisation. In the context of GSK plc contribute the large amount of revenue for
the UK market as this aid to increase the economic condition of the firm. There are different kind
of seller are present in the market so firm have to manage figure the strategies and improvise the
result to achieve common goal effectively. As there different company present in the market
hence this pharmacy company have to develop customer loyalty to avoid competition. Although
the business is consider very lucrative so company has to differentiate their product to reduce
any kind of frisk and uncertainty present in the market. As there is low number of substitute
present for the specific drugs.
Threat of new entrant: These are the forces which are used to determine the threat
present in the business. As the pharmacy sector is launching new drugs with the help of different
innovation which increase the competition and make difficult for the company to earn profit. As
there is high threat for the new entrants so firm has to keep their price low which help in
increasing the need demand of the company effectively. As there must be high level of
investment is require to enter in the market which affect the business for the new entry.

Threat of substitute: It occurs when the buyer can easily find the substitute for the
products with the attractive prices or the better quality of the product and service present in the
market. The buyers tends to purchase the product at low price with high quality. As there is high
demand of medicine present in the market whereas there is low demand of raw material presents
in the market as this increase the price of the product.
Bargaining power of suppliers: There is the strong bargaining power which allow
supplier to sell higher priced or the low quality of raw material from the different buyers. So to
avoid bargaining power the management of GSK have to develop effective supply chain which
reduces the monopoly of the firm in the well define manner. This occur when there are few
suppliers and many buyers. There is high chance of earning profit and it also essential to
improvise the structure of the company must use different suppliers as to reduce such factor
effectively.
Bargaining power of buyers: Buyers have become more demanding as there are
different options present in the market. So the organisation have analyse the market and then
offer the product and service which help in increasing the need and demand of the firm
effectively. As firm have to keep their price low where the revenue for the product and to
increase the high quality product and service to minimize the impact of the buyer. There are
many substitute which are used by the company to focus earn more profit effectively.
Internal analysis of GSK
TOWS Analysis
GSK's
INTERNAL
ANALYSIS
strengths (s) weaknesses (w)
 The company have adaptive
organisational structure which tends to
increase the profitability of the
company.
 Beside this effective research and
design method is used to achieve
higher aims and objectives.
 The company major
weakness is there sales
service which should
be managed and
control as to capture
large market.
OPPORTUNI  There are vast opportunities present if  There are different

TIES (O)
the company expand their business
internationally.
 Although the improvement in
technology have changed the business.
needs and requirement
which must be
managed effectively.
THREATS
(T)
 The major threat present to the
company is the rivals who deal in the
similar product and service.
 As there has been
political uncertainty
which create the threat
like Brexit and corona
virus and reduce the
sales of the company.
This is essential for the company to evaluate the strength as well as weaknesses and take
precaution to reduce such impact present in the future. The TOWS analysis of the firm would be
on several factors is discussed below:
Strengths/Threats: It it crucial for the company like GSK to maintain figure out the
market effectively and focus on the environmental concern to achieve desire aims and objectives.
The prime strength for the company is highly robust service and product quality in pharmacy
sector which improve the positioning of the organisation. On the other hand, the major threat for
the company is there competition that also provides similar drugs to the consumer. As to
minimize the threat firm have to merger with the other company as to reduce the risk and theft.
Weaknesses/Opportunities: One of the major opportunities for the company if they
expand their business at the international platform. Along with this, firm can develop new
medicines which tend increase the market share. However the GSK management can have direct
contact with the hospital as this method will increase the sales of the firm for the longer time
period. Where the weakness of the firm is there production and the price as the firm have to keep
there price low as to overcome the rivals.
Strengths/Opportunities: One of the major strength of the firm is their presence in the
market and they have better image. The company is using advance technology and the rising
customer as well as market trends which help in increasing the demand for the firm. Along with
this, they have efficient supply chain which help to maintain the demand and supply present in
the market. Also there are different opportunity exist for the company by conducting research

and development as this help in identifying the actual need and offer better quality product and
service as to capture large market share.
Weaknesses/Threats: The UK market is very concern about their health and service
which tent to increase the image and work of the company effectively. As due to Brexit this has
hampered the business. However the company use different kind of method in which company
lacks to promote their product which include low variety of suppliers which tend to reduce the
productivity of the company.
VRIO Analysis:
This is the model which is used and effectively designed to avail better quality product
and service to the respective customer. There are different kind of benefits depend upon the
longer term as so organisation like GSK plc have to develop plan which are based upon the value
which is used to organise the work and manage the activities as to accomplish desire aims and
objectives (Hong and et., al., 2019). There are different factor which must be consider while
developing this model which is explained down below in detail manner:
Valuable: This is the factor which is used add the value for the company as per the
different valuable when they enables the firm as to implement the different strategies which
improves the firm efficiency by exploiting the different opportunities present in the market. For
the organisation like GSK plc the company have to manage and control the different aspect such
as cost and customers who are consider valuable for the firm.
Rare: Secondly the resources are rare and they are present by the few companies so this
is crucial for the company to manage and control all the activities effectively. Apart from this,
resources like machine, employees and raw material which is consider rare and enterprise have
to manage and control all the essential resources effectively. In the context GSK the management
has to develop unique method which reduces the waste of resources and provide higher quality
product and services to consumer.
Inimitable: As there are different ways through which the company can imitate the
resources. This can be occurring as directly or indirectly depend upon requirement of the firm.
As for the organisation like GSK plc the historical condition the resources are used which are
costly and they are used to intimate. Along with this, there is casual ambiguity which is usually
differing from person to person.

Organised: The focal aspect of the company is developing the capabilities which are
used to manage and control the activities which are used to deliver better quality product and
service effectively. GSK plc manager have to create vital structure and make new policies which
makes better structure which help in increasing the sales and profitability of the company.
Application of VRIO analysis
The VRIO framework is a strategic evaluation tool designed to help corporations uncover
and protect the resources and abilities that provide them an extended-time period aggressive
advantage. The framework ought to be put into play after the introduction of an imaginative and
prescient announcement, but earlier than the strategic planning manner. This will help GSK in its
business expansion and achievement of competitive advantages within limited time period.
EVALUATION
SAF Criteria
This is known as the complex method for the manager to analyse and use different
strategies which are used by the organisation. Hence this is essential for the GSK to enter in the
new market by expanding their business with the help of joint venture. As this is consider as the
safest method which reduce the market risk and provide feasible solution for accomplishment of
desire aims and objectives. Here is the detail explanation which is explained briefly down below:
Suitability: As to appropriately figure out the suitability, the company have to manage
and evaluate the various kind of aspect which is present in the market. As the company can sell
their drugs online which tend to capture large market share effectively? Along with this,
suitability also aid GSK to develop feasible method to operate business successful for the longer
time period. Apart from this, organisation has to intensively conduct the research as the market is
very versatile and this will reduce any kind of risk and uncertainty present in the market. Thus,
these variables would help GSK after its joint venture with Pfizer to attain advanced digital
capabilities, especially in relation to portfolios of the firm which are complimentary.
Acceptability: This is highly essential for the company to focus on the strategies which
are beneficial for the firm as to their employees. As this consists of different risk which are
consist of different strategy which are likely to be used to and managed the work effectively. As
there are different department which present in the organisation of GSK plc and management

have to make sure that each and every employees which is useful to achieve desire aims and
objectives effectively.
Feasibility: As to identify the strategy there are different kind skill which should be
needed to fulfilled in the well define manner. From this reasoning, it could be official that the
strategy is quite effective in terms of feasibility. Moreover, to make it more successful, financial
resources would also be needed by GSK to go through effective purchase consideration with
Pfizer's management.
Application of SAF on SWOT
Suitability: In accordance to the objective of a company, this evaluation facilitates in
ascertaining both form of information whether internal or outside. This genuinely depicts that it
matched with the goal of an organisation.
Acceptability: SWOT analysis is straightforward to behaviour and does not required harsh
efforts. The amount of returns associated with this analysis is greater satisfactory in comparison
to the targets. Also, the chance related to same is low. It meets the want of a company too
wherein it affords each kind of statistics.
Feasibility: This tested by means of the involvement of finances inside the analysis and
budget has by an employer. This is a common evaluation that does not require too much fund.
This can even offer the possibility to analyse all form of required facts. Also, the GSK has
efficient quantity of price range thru which they could easily conduct the evaluation with the
resource of SWOT technique.
CONCLUSION
From the above project report this has been concluded that corporate must have strategies
which are used to manage and control the activities. Hence this help in capturing large market
share in the shorter time span. Apart from this, Pestle analysis has taken into account which is
used to manage and analyse the external market effectively. Apart from this, VRIO model is
been used to determine the strength and weakness. At last the SAF is used to vary the entity for
implementing new method to achieve larger marketplace.

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