Corporate Strategic Analysis - Assignment

Added on - Dec 2020

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Applied Corporate Strategy
Table of ContentsINTRODUCTION...........................................................................................................................3EXTERNAL ANALYSIS................................................................................................................3INTERNAL ANALYSIS.................................................................................................................7EVALUATION STRATEGY........................................................................................................11CONCLUSION.............................................................................................................................14REFERENCES..............................................................................................................................15
INTRODUCTIONBusiness organisations are established to achieve various objectives and toachieve these objectives strategies that are planned by companies. Corporate strategytakes a portfolio approach to strategic decision making by looking across all thebusinesses to determine how outputs can be maximised. This strategy is builds on topof business strategy which is concerned with the decision making for an individualbusiness. It encompasses a firm's corporate actions with the aim to achieve long termobjective of business organisation. This strategy is also used for introducing a newinnovation that organisation tries hard to be successful.In this report GlaxoSmithKline plc and Pfizer Inc both the organisation are takento define corporate strategy (Balsmeier, Bermig and Dilger, 2013). GlaxoSmithKline plcis established in the year 2000 by a merger of Glaxo Wellcom and Smithkline Beecham.It is worlds sixth largest pharmaceutical company whose headquarters are situated inUK. Pfizer Inc is an American pharmaceutical corporation situated in New York, UnitedStates and founded in the year 1849 by Charles Pfizer and Charles F. Erhart. Adisruptive innovation of data preprocessing is introduced by a joint venture in both theorganisation. Based on this external and internal analysis will be done and strategyevaluation will take place.EXTERNAL ANALYSISExternal analysis is considered as a analysing the environment of industry of firmthat includes factors like competitive position, competitive structure and so on. It alsoconsider the PESTLE and Porters five forces model analysis. The main objective of thisis to ascertain the opportunities and threats in industry which drive growth, volatility andprofit.PESTLE analysis is a strategic management tool which is considered significantfor pharmaceutical industry as with the help of it whole industries tries to maker effectivedecisions to identify the opportunities and face the threats(Barros, Boubaker andHamrouni, 2013).GlaxoSmithKline generally operates in dynamic environment where it isinfluenced through the technological changes, enhancing environmental policy between3
customers, decisions of government, aggregate social trends and so on. All factors arementioned below:Political factors:The change caused in international trade which can affect the innovation ofproduct or services createdby whole pharmaceutical company. As it include factors likeforeign trade policy, tax policy government policy and so on that either act asopportunity or threat for GlaxoSmithKline.Opportunities:With the innovation like data preprocessing, GSK produce morenumbers of drugs suggested through government policies (Bender, 2013).Threats:As GlaxoSmithKline is dealing with approx all countries. Therefore, theycan face problems such as political instability, various rules and regulations of differentcountries.Economical factors:The manufacturing is affected through uncertainty of dynamic market situationwithin European.This can lead to low production of various industries likepharmaceutical as include factors like interest rate, disposable income etc. that directlyaffect the performance of company.Opportunities:GlaxoSmithKline can manufacture the drugs for enhancing thecountry's economic growth rate. Enhancing trade policy of liberalisation assistrespective firm to invest more into those regions that are as yet off-limits to thecompany.Threats:customers disposable income have remain stabilized but the leadinginequality in society will negatively affects the sentiment of customers and therefore,impact the clients expenditure behaviour (Clacher and Hagendorff, 2012).Social factors:Production of GSK is effected by the variation in social factors that involve peoplelife style and attitude towards product.Thus, strategy must be build on the basis ofSAFe framework which helps to decide availability of resource, ability of workforce andaptitude to implement the strategy on the basis of acceptance of geographical area toachieve the organisational success.4
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