Global Business Strategies and Challenges

This assignment delves into the realm of global business, examining key strategies employed by multinational corporations. It analyzes various factors influencing the global level of business, including technological advancements, economic trends, and political landscapes. The document emphasizes the importance of understanding diverse cultural contexts and ethical considerations in international operations. Furthermore, it highlights the concept of global convergence and its implications for businesses worldwide.

Global Corporate Strategy
Case Study: Pfizer &
GlaxoSmithKline: Driving
Change through R&D in a
Global Pharmaceutical Industry

ABSTRACT
The development of an entity in a global context will be helpful in terms of creating the
brand image as well as have the large numbers of consumers. Therefore, there will be expansion
of the operational practices in the organisation. Moreover, to meet such requirements there will
be use of effective global strategics that will makes the firm more compatible as well as able to
meet the desired level of goals. In the present study the discussion and suggestion will be based
on analysing the various techniques and models that were used to help the business in developing
business on global level. Moreover, there will be influences of various

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
Key strategic issues................................................................................................................1
QUESTION 1...................................................................................................................................2
Competitiveness of firm in the global pharmaceutical industry.............................................2
QUESTION 2...................................................................................................................................5
Strategies alliances.................................................................................................................5
QUESTION 3...................................................................................................................................8
QUESTION 4...................................................................................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
To develop the trading practices outside the national boundaries there is ned to have
appropriate strategic guide which will be helpful in making the industry performance on the
global level. Therefore, as per developing the business on the global level there is need to have
appropriate increment in the capital collection, revenue creation as well as efficiency of the
business. In the present report there will be demonstration of Global Pharmaceutical industry
such as Pfizer, GlaxoSmithKline, Sanofi and Johnson & Johnson (USA) on their financial
conditions. Moreover, the strategy will be helpful for business in analysing the global level of
requirement as well as improving the operational ability to meet the global challenges. The
motive of this research is to facilitate the satisfactory level of marketing, production and
development of the medicines.
Key strategic issues
To expand the business operation on a global level there are various issues which were
needed to be considered by the professionals of entity such as:
 It is essentially required that the business must analyse the short, medium as well as long
term strategies De Wit and Meyer, (2014).
 Determining the goals and objectives as well as ascertain budgets for the requirements of
resources.
 In context with the products there is need to have deep analysis over government,
initiating appropriate patents, copyrights and trade marks of drugs.
 Develop appropriate strategies, policies to meet the local requirement, same as determine
economical needs such as remuneration payable to consumers.
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Illustration 1: Factor affecting global level of business
(Source: Global information technology: a meta analysis of key issue,
2002)
QUESTION 1
Competitiveness of firm in the global pharmaceutical industry
The main motive of a pharmaceutical firm is to make the satisfactory medicines and
drugs which will be helpful to consumers in improving their health as well as overcoming with
the diseases. Moreover, to develop business at global level, it is essentially required that
professionals must have blue print of strategies and plans Lynch, (2006). However, it will benefit
them in improving industrial efficiency and motivate workforce to make satisfactory efforts.
Similarly, there will be analysis of various operating techniques which were used by Pfizer,
GlaxosmithKline and Sanofi. The annual report of Pfizer will be ascertained by the researchers
as to have appropriate analysis on firm as well as strength to meet the competition in the market
Bennett, (1999). The firm has aimed at improving the health of women and child at global level
with providing best drugs. Therefore, they have adopted two techniques which will benefits them
in developing business prospective.
Global convergence perspective:
This is a technique and process which helps the firm in having the harmonised and
multiple dimensional development of the products Tarłowski, (2017). It will be across the
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national boundaries different from culture, policy as well as economic level. Therefore, the
fruitfulness of such techniques is that it funnels entity to have appropriate information from the
market which will improve their research and development plan, efficiency as well as
productivity Cummings and Wilson, (2003). To design the drugs which is necessary for local
citizens as to have better nourishments and cure with serious diseases Pfizer has to make the
survey in the market and analyse the requirements of consumers. This technique has various
merits and demerits which are need to be adopted De Wit and Meyer, (2010).
Merits:
 It is the most fruitful and beneficial technique which will help in making the adequate
analysis over various factors such as culture, society, economy of consumers etc.
 It brings the up-gradation in entity in terms of implicating the adequate technologies for
the development of work and workforce Martinez and et.al., (2017).
 The innovative ideas will be generated by the professionals in terms of designing the
pricing strategies as well as changes in the product line De Wit and Meyer, (2004).
 There will be development in the research and development of an organisation and it also
brings the smarter techniques which will reduce the costs and time utilised by the
professionals in meeting the operational needs.
Demerits:
 There is threat of having sudden changes in the market such as influences of serious
diseases, viral fever and infectious diseases which affect the health of mass population
(Global convergence perspective, 2017).
 Business has to spend more over analysing the requirements in environment as well as
the culture will become a barrier in developing the drugs. It is because many of countries
ad location there has been ban over some drugs which affect the sales and profitability of
business Ferguson and Ferguson, (2000).
 There has been differences in preferences as many of the drugs were not be sold out
without reference to any medical consultant or doctor (Bringing Resources to Bear to
Improve Global Health, 2016).
International diversity perspective:
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To develop the industry of global level there is need to have recruitment of local citizens
as the employees in the organisation which will be fruitful for managing the work-culture as well
as brings the innovative transformation in entity Grant, (2002). To manage the diversity in the
workplace Pfizer has to manage the ratio of their recruited employees as well as the level of jobs
assign to them. Moreover, in various countries it is the strict rule set by the government that in
board of directors there is need to have at least 5% of women members which is the motive of
government in terms of bringing the women empowerment.
Merits:
 It helps in increasing the efficiency of organisation as the many of the innovative ideas
will be gathered by the firm interns of having the adequate increment in the profitability.
 The innovation in the company bring the adaptability in the environment which helps in
determining the new ideas and changes that will be interesting for the employees to
perform their duties as well as make the satisfactory efforts Haberberg and Rieple,
(2001).
 The influences of various ideas and techniques which will be effective in improving the
productivity as well as range of services.
Demerits:
 The diversity will create hurdles in communication process because of differences in the
language, culture, tradition etc.
 The minority group in organisation will may have lack of freedom in terms of expressing
their views and thoughts among their co-workers and supervisors Joyce and Woods,
(2001).
 To make them aware with the technique and process to perform their duties it will be
complicated in terms of training and development. Therefore, it increases the chances of
poor performance and efficiency in the work.
Suggestions to GlaxoSmithKline:
In relation with implicating key performance indicators techniques in the industrial
practices there is need to have appropriate managements of the work and workforce. Moreover,
this in the techniques which is need to involve by the professionals in terms of motivating the
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employees to make the adequate efforts Lasserre (2003). It will be helpful in balancing the costs
incurred in operations as well as improves the productivity which will create appropriate revenue
gains to organisation.
QUESTION 2
Strategies alliances
According to Yeung, (2017), in the current marketing environment many of the
pharmaceutical industry used to invest more than 20% of their revenue on the research and
development program therefore, it is due to that they don not want to loss the patent rights over
their invented drugs. In context with such needs of the firm there will be huge manipulation of
the funds and resources which created obstacle sin the financial postilion of the business
Mintzberg, Ahlstrand and Lampel, (2005). For instance, Pfizer will make huge investment in the
research and development as they have motive to bring the appropriate medication that will
improve the health of all the individuals in the society. Moreover, this influences will create the
changes in the operational practices between two or more entities. Alwan, Jones and Holgate,
(2017) stated that, it brings the competition in the environment as all the entities used to focus
over having the appropriate increment in their productivity and sales volume. They started
developing various drugs and medicines which have impacts over the health and environment.
According to Chu, Anguelovski and Roberts, (2017), there will be use of various
techniques and operations which will improve the performance of the organisation. They
implement various addictive drugs into medicines which bound the consumers to have
consumption of the particular drug. On the other side, the implication of these kinds of drugs
bring the unhealthy reaction in their body Stacey, (2000). Therefore, it creates the medical
challenges in the environment. In order to bring the effective changes in the research and
development techniques the industries must adopt the innovative techniques as well as effective
plans which will be helpful to address the current requirement in the market. França and et.al.,
(2017) stated that, R&D as the special importance in the country or in the global level as it brings
the more effective and useful drugs which brings the quick relief from any disease and health
issues Stonehouse, Hamill, Campbell and Purdie, (2000). The innovations were made by the
professionals in terms of increasing the efficiency as well as making the ease in the operational
activities of the business. On the other side, it also brings the negative impacts such as increasing
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the competition, implicating the substitute drugs or medicines in the market (11 Advantages and
Disadvantages of Diversity in the Workplace, 2016). Moreover, the availability of substitute and
duplicate products will affect the brand name and image in the marketing the environment.
Therefore, there will be various advantages and disadvantages of Research and development
such as:
Merits of Strategic alliances:
According to Kim and Chai, (2017), the advantage of R&D in strategic alliance will be
beneficial in improving the technological improvements as well as bring the adequate up
gradation of entity in meeting the long term requirements. Moreover, it will be helpful to the
society in terms of innovative changes in the operations as well as increment of environmental
health. It provokes in increasing the technology, capital and influence of innovative ideas.
Moreover, the implication of such techniques into operations Thompson, and Strickland (2003).
The strategic alliance brings the benefit to the organisation as it suggests the suitable ways and
techniques to reduce the manufacturing costs and develop the operational environment. The
strategies will help the managerial professionals in the pharmaceutical industry in ascertaining
the market requirements as well as managing the funds which will reduce the costs. Yeung,
(2017) stated that, the implication of such research and development will create reforms in the
knowledge and information about the invention of new drugs as well as it manages the
production costs. Therefore, the time consumed in the operations which will be fruitful in
executing the proper utilisation of the costs into operations.
Demerits of strategic alliances:
According to Alwan, Jones and Holgate, (2017), there will be need of implicating the
appropriate research and development department as to meet the challenges in the world but it
will also make the improper development of products. Moreover, there will be threat of having
the improper drugs in the market which will negative effective and unhealthy for the consumers.
In the influences of geostrategic alliance into business operation will create the obstacles into the
industrial practices. Therefore, the motive of professionals in the market is to retain the adequate
amount of profit and better revenue generation which impacts over the quality of drugs produced
by them. Consumers retention is the important aspect and need of the business which is fruitful
in improving the sales revenue and efficiency of the entity but the use of addictive and wring
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drugs will create the challenge to their health. Kim and Chai, (2017) stated that, in terms of
developing the business on the global level there is need to have fair trade practices the use of
substitutes and the duplicates will affect the health of individuals. Therefore, the strategic will
create the negative impacts over the brand image.
Merger and Acquisition:
According to França and et.al., (2017), to have the appropriate growth of business
Additionally, it is the growth technique which has been implicated by the various big
organisations. They have started acquiring the small scale industries in the particular location as
to have the better development of their business objectives. Therefore, it helps them, in having
appropriate information about the location and the knowledge regrading the consumer wants. It
will be helpful for them in developing the appropriate strategies and planning that will have the
positive response in the market. Moreover, improvement in social environment will create
appropriate development organisational strategies. In relation with achieving the long terms
outsourcing, cost effective production, appropriate distributional channel, increment in the
production as well as better information regarding the market and market environment will be
helpful to have the adequate development of the framework. Chu, Anguelovski and Roberts,
(2017) stated that, there will be huge benefits in acquiring the business of the new location which
will creates the win-win situation. The helpfulness of such acquisition will be effective to the
business in terms of having better distribution of work, high level of funds as well as appropriate
increment in the growth and productivity of the business. There is not need to make extra efforts
in terms of attracting the consumers or brand marketing.
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Illustration 2: targets and goals
(Source: We can end global poverty by 2030 – United Nations report, 2015)
QUESTION 3
According to Tarłowski, (2017), to have the appropriate analysis internal control over
business that will increase the efficiency of entity in the global market. There are various
department in the organisation which are need to be monitored and executed by the
professionals. In order to meet such requirement there has been preparation of appropriate
corporate governance in which the various teams were introduced by the professionals such as
risk management team, auditing team etc. Thus, the corporate governance is needed to be
balanced and must have appropriate development of work (Corporate governance, 2018). To
execute the business tasks there will be need to have appropriate analysis over the business needs
such as effective leadership and balanced financial position. Martinez and et.al., (2017) stated
that, the influence of various directors and leaders will be helpful to entity as they will have
guidance and innovative techniques from each members. There will be development of
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appropriate strategics that will be beneficial in increasing the business efficiency as well as
improve the financial situations.
According to Yeung, (2017), The importance of corporate governance which helps in the
managing the work loads, risks as well as capital structure of the business. It will create the
effective image in the external market which will be attractive as to have good impression of the
business in the external market which will be attractive to them in investment purpose.
Ethics plays a significant role in almost all sort of organizations where pharmaceutical
plays a vital role in the economy and is also considered to be a sensitive field of work. Herein,
the companies are required to undertake effective approaches to protect both their workers as
well as its associated users. It is with a special consideration of employing effective approaches
to protect the workers from sensitive criteria of work. Also, the users are required to acquire
products that are accurately manufactured with no risk of getting affected in a negative way. This
implies about the date of manufacturing of the medicines and their expiry which should be
correctly mentioned on the drugs packaging.
CSR together refers to a vital consideration of the pharmaceutical companies where they
are not only required to protect themselves and their users but also required to have a responsible
outlook towards protecting the surrounding. It is with a special concern of using resources in a
proper manner with no wastage and depletion of useful resources. Also, their manufacturing
procedures must be apt and should not be damaging the environment at any cost. Apart from this,
using animals for testing is also referred to be a strictly prohibited act and must be avoided at any
cost. However, in case, there is a requirement of doing so, then they must do it in an informed
way with prior permission for the same.
QUESTION 4
The development of various pharmaceutical industry at the global level will be
challenging tasks and will require higher attention from the professionals. Moreover, as I have
accessed through various units and industries I have learnt that before initiating any action there
is need to have adequate plans and strategies which will be helpful to them. I have leant that the
importance of corporate governance stargates which will improve the efficiency of firm in
meeting the targets on the right time. Therefore, there can be effective development of the plans
and policies which will be accurate as to have better framework. To manage the operational
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activities in the business there is need to have better corporate social responsibility. The merger
and acquisition will be helpful in improving business operations as well as makes it capable to
have long terms profitability.
CONCLUSION
By analysing through the proposed study it has been concluded here that, to develop the
industry over global segmentation the changes is operations activities are essentially required.
Therefore, there are various issues and relevant suggestion has been provided to the corporations
in relation with making the satisfactory changes in the business activities and in the financial
conditions. Further the critically evaluated various terms such as global convergence perspective,
international diversity perspective etc. which will be helpful to the pharmaceutical industries in
terms with analysing the market and make productive efforts. Further, there has been various
strategies which will be helpful to develop the operations on the global level by such industries
such as merger and acquisition etc. therefore, in order to improve the efficiency of the firm the
professionals need to implicate various modern techniques of analysing the data set such as CSR
reporting, SPSS software etc.
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