Process Innovation - Assignment

INNOVATION REPORT

EXECUTIVE SUMMARY
The report had highlighted about the innovation process through company can improve
their products and expand their business operations. Further, the project had framed about the
internal factors that will help the company to manage the innovation process which is inclusive
of organisational structure namely hierarchical structure which is adopted by the company
through they had improved their production, distribution and marketing system of the company
and through this structure they will be able to provide higher quality products and along with it
had highlighted about the culture of the company like integrity, patient focus, transparency etc.,
and with that it had commented on the internal factors which are employees by providing them
various benefits like pension contributions, retirement benefits, health and well being etc.
Eventually, the report had highlighted about the external factors that had impacted the innovative
process of the company which are inclusive of political, social, economical, technological, and
environmental factor and along with it had highlighted about the recommendations through
which company can improve their innovative process.

Table of Contents
EXECUTIVE SUMMARY ............................................................................................................2
INTRODUCTION...........................................................................................................................4
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Innovation means the creation of a new product and a higher quality product technique of
production, market supply, and an organisation in an industry. Further, it additionally refers to
enhancing on a present idea or concept using a step-sensible process to create a commercially
possible product. However, the innovation process depicts the direction of translating new or
current expertise into marketable method (Fedorov,2016).
Further, the report highlights that the performance of GSK pharmaceutical company can
be influenced by both external and internal factors wherein, the inner factors are frequently
related to company governance, organizational structure, advertising selections, financial overall
healthiness or product design and thus, these components form a business from inside.
Nonetheless, there are different factors that have an effect on the business from the out of doors,
that is the case of macroeconomic variables which includes inflation, interest rates and currency
cost, or political ones, as is the case for new law affecting whole organisation or exchange
agreements with different nations that impacts their innovative process.
Alternatively, the social and cultural surroundings will influence a business enterprise
externally. However, certain traditions and conduct can affect purchaser’s selections in regard to
product selection or consumption and additionally, social agitation can also affect the way
organizations increase through the years. Therefore, with the intention to address those issues,
organization frequently increase strategic plans to count on the effects of external factors within
the enterprise’ overall performance.
Innovation Process
GSK Pharmaceutical Ltd. is one of the leading Pharmaceutical company which deals in
various types of medicines. Further, the company uses diffusion theory of innovation where they
distinguish their product innovation process on the basis of five categories through which the
product of the company may additionally find itself with five different groups of customers that
take delivery of the product or idea (Palmarini, Erkoyuncu and Roy,2017). Therefore, these
decide the success of a product. Moreover, through this concept it becomes easy for the
company how a product or concept develops most of the users. However, depending on the level
of the product, several changes are taken by the company like tons or little advertising or an
excessive or low income fee. Moreover, according to the company provide various types of

medicines for different age group of customers like anti-infection medicines, dermatology,
diabetes, oncology, cardiovascular diseases, respiratory diseases and it also provides immunogen
for various disease like pneumococcal disease, hepatitis, small pox, whooping cough etc.
Therefore, in 2003 GSK names as most honoured pharmaceutical company by business world
and Indian market research Bureau (IMRB). Further, GSK has 1 production centre at Nashik,
one research and development centre at the same location and have gained a leadership in
private vaccine market. On the flip side, GSK has various leading brands like havrix, rotarix,
crocin, Iodex and various nutrition products like horlicks and boost. However, this company has
been identified as best healthcare company by the economic times the best health brands 2016.
According to research, the company have around $402 turnover with leading healthcare and
pharmaceutical organisation with a market share of around 3%. Therefore, the business cycle of
GSK pharmaceutical company is at growing stage as the company is leading the market and
providing various types of medicines for various customers.
Swot Analysis Of GSK Pharmaceutical Company
Strength
 GSK company is one of the leading top
5 company in pharmaceutical sector.
 This company is leading the private
vaccine market in UK.
 The company have been awarded as
resource efficiency company and best
chemical manufacturing company.
 GSK provide its products in all over the
world including 100 countries.
 The company has around 95000
employees who work for the company.
Weaknesses
 GSK is facing arguments in relevance
with safety of drugs that is affecting the
reputation of company which in turn
declining their profitability (Melane-
Lavado, Álvarez-Herranz, and
González-González, 2018).
Opportunities
 The company is joining agreements
with other pharmaceutical companies in
order to boost their performance.
Threats
 The company may face the threat of
unsuccessful products of the company.
 Environmental policies of government

 The company is increasing
consciousness among the people
regarding the healthcare needs.
 GSK can increase their product quality
in order to avoid the controversies
regarding their safety products.
have been increasing day by day.
 The revenue of the company may
decline due to economic recession in
the country.
Organisational Structure And Culture And Internal Factors
GSK pharmaceutical company follows hierarchical organisation structure wherein this
organizational structure of company carries an instantaneous chain of command from the top of
the corporation to the bottom that means senior manager makes all crucial decisions, which
might be then surpassed down via subsidiary ranges of control (Graillot and et.al., 2015).
Further, in this company if a person at the lower level of the organizational structure wants to
make a selection, they pass the request up for approval, for which a selection will ultimately be
back. Moreover, this organisation structure works well with the hierarchical structure whilst
there are little merchandise which might be offered in excessive volume, in order that tight
manipulate may be maintained over the layout, quality, manufacture, and arrangement of goods.
Further, the senior manager of company controls the quality of the products and accordingly
manage the production and distribution system of the company. However, in order to maintain
brand image of the company, they follow the hierarchical structure which help them monitor the
production, distribution and marketing of products effectively which in turn enhances the
profitability of the company.
However, culture and values of company drives the innovation process and help the
company to build strong customer base and market share. Further, major values of the company
are patient consciousness, integrity, admire for human beings and transparency and they assume
their personnel to share values, to act transparently and with unity. Moreover, the company
encourage their personnel to position their values in each decision they make via robust
leadership, providing man or woman improvement opportunities and rewarding employees for a
way they work in addition to what they obtain. Nevertheless, they create a culture where every

employee experience happy surroundings with the activities that they do, the organisation they
work for, and the distinction they make.
Furthermore, the consciousness at the individual, doing what's right for sufferers and
customers and they are dedicated to provide the best moral medical exercise and governance in
their work. Likewise, they are bound up to an efficacious and responsibly managed deliver chain,
that is important for production teams to provide extravagant exceptional medicines and products
to sufferers and consumers (Smith and Jarisch, 2019). Therefore, in order to maintain such
culture they jointly work with their companions and customers to amend healthcare and locate
new drug treatments and vaccines and they earn recognize with the aid of taking the time to look
at troubles through the eyes of others and offering merchandise of real advantage. Hence, they
make this manifest by focusing on the affected person's and consumer's needs in studies,
ensuring affected patron protection is predominant and making sure product quality and
reliability of deliver.
Even so, the GSK company create a culture of integrity by doing what is good for their
sufferers and consumers. Therefore, by doing so, the company show integrity in movement, at
each level. However, in order to maintain unity within the company they act legally and
honestly, and according to the regulations and guidelines proposed by the government. Further,
they encourage personnel to talk up if something doesn't experience right or doesn't align with
their values and they make practical commitments and hold their promises and at the same time,
inspire employees to find steering when they are facing any issue (Gereffi,2017).
Further, the company creates such culture where they guide and encourage their
employees to help them be the satisfactory they can be and to attain their goals. Thus, principal
to this is their daily working subculture, which includes that they will make sure that their
workplace is secure and free of molestation and domineering, and they actively try to find, fee
and draw at the differing cognition, appearance, revel in and patterns found in their global
network of employees and they create a surrounding of honesty, wherein concerns of the
personnels are responded quickly.
Nonetheless, the company ensures that its group of workers have everything they need
for his or her every day wishes and promote flexible manner of working and it additionally
makes use of its variety of programmes to inspire personnel to take duty for their very own

health and financial statements. Moreover, they provide various benefits which encompass a
healthcare facilities with, share save scheme and percentage incentive plan (Sip), performance-
connected bonuses, and a trust-based totally defined contribution (DC) pension scheme, are all
planned to promote employees empowerment and obligation. Further, the company's business
method line up with reinforcement and with the business objectives and it boosts sustainable
excessive performance, and it enhances worker engagement, duty and empowerment via shared
obligation. As an instance, if personnel make contributions to their Sip, GSK will buy an
additional share for them and simultaneously pensions are similar; in the event that they placed
extra contributions in, GSK will suit it up to 70%. Moreover, their healthcare policy also
consider about the shared duty (Wang, Plump and Ringel,2015).
Furthermore, the organisation moved from a non-contributory to a contributory pension
arrangement in step with its auto-enrolment and prior to this, team of workers had been no longer
required to contribute, even as GSK installed a minimum 5% for each worker, matching
contributions up to an additional 5% if employees chose to make a contribution. However, all
personnel had been already auto-enrolled into the scheme, so they could have 100%
participation. Therefore, to conform with auto-enrolment, GSK enforced an obligatory worker
contribution of 2% with a matched business enterprise contribution up to 7%. However, the
company had personnel who had been not making contributions, so this involved a sequence of
communications to inform them about the changes and let them realize that, from the March
payroll, they would be reducing less than 2%, with an equal growth in the company endeavour.
Thus, GSK inspire group of workers to take duty for his or her very own monetary future, and
simplify the undertaking by way of supplying three rounds of financial workshops, in partnership
with Wealth at their job and these concentrates on distinct age people and factors in a person’s
running lifestyles.
Nevertheless, the company also maintains pre-retirement course for personnel elderly
over 50 wherein, they arrange a total of 80 workshops in 2012 and additional workshops that
were centred on a selected theme, which includes share save maturity. The organization’s three-
year share save scheme, manage by using Equiniti organization, has an annual entrance window.
However, the workshop turned into round ensuring employees in the share save scheme
recognise what their alternatives are while the scheme matures. Moreover, the financial training
workshops have assisted to enhance participation in diverse benefits programmes. Further, 2/3 rd

of GSK’s personnel are in the share save scheme, and 85% take part in the Sip and it additionally
has 80% consideration of its healthcare. However, the company also promote staff to take
responsibility for his or her very own wellness, with every employee who needs to participate
being accountable for a co-charge of 15%. Hence, they teach personnel that in the event that they
manage costs, their premium remains low, because it activity GSK has, and the 15% enables
train employees to have in mind of that. Furthermore, being a healthcare organisation, GSK also
gives quite a number other fitness and wellness advantages that focus on creating a healthful,
productive team of workers. Moreover, the company has an occupational fitness department, a
physiotherapist and a gymnasium, and provides an employee assistance programme (EAP) and
annual fitness tests (Schuhmacher, Gassmann and Hinder, 2016).
External Factors Of GSK Pharmaceutical Company
GSK is stricken with the political instability of the country that directly impacts the
advertising strategy and the changes brought on in international alternate could also have an
effect on the preparation and selling the product evolved by using GSK. Further, the aggressive
regulation can affect as the change of raw substances want by means of the GSK might be
stimulated by means of political instability. Moreover, GSK must hold in thoughts the protection
policy issued by the government and making pills according to it and some other evinces that
GSK should follow is to provide the wide variety of medication encouraged by way of the
authorities guidelines (Alam,2018).
Furthermore, GSK pharmaceutical company can use country's economic factor consisting
of growth price, inflation & industry’s economic facts inclusive of Drug producers fundamental
industry increase growth rate, patron spending and many others to forecast the boom trajectory
of the organisation.
Nonetheless, from 2016 GSK company have introduced that the organization will not
document drug patents in the lowest-earnings regions of the world which indicates is that low
priced healthcare will be accessible without difficulty to all. Moreover, GSK also invests 20% of
any income its makes within the least-developed international locations into medical experts and
constructing scientific substructure. Furthermore, with a growing old worldwide population,
GSK have announced in 2017 the move toward a new shape of HIV treatment and conventional
pill remedy can show intricate as humans end up older. However, GSK understand the social

need for new styles of treatment and invested closely to meet a new marketplace demand.
Moreover, in view that 2015, GSK have worked to assist fight the global epiphytic of the Ebola
Virus. Even so, working in business concern with the world health organisation, GSK are
investment initiatives to improve existing Ebola vaccines (Mory, Wirtz and Göttel,2016). The
effective publicity has ended in GSK retaining a tremendous image of social responsibility via
customers.
Historically GSK were ranked one of the lowest in phrases of investment into R&D in
opposition to their competitors in 2016, thus, in order to meet buyers needs, GSK have endowed
to restructure their R&D zone in 2017. Further, in July, GSK have disclosed their present day
funding inside the field of artificial intelligence and as part of a $43m deal, GSK is using AI to
expect how drugs will behave to store time and money on useless traditional exams. Moreover,
from 2016 GSK have closely invested in mechanization solutions to boom manufacturing levels
via software program investments, GSK have now reduce manufacturing request instances from
three weeks to four days which has allowed GSK to resupply groups faster and provide
economic saving in manufacturing times and minimise pricey downtime. Even so, GSK also are
partnering with records handling organizations to spend money on supercomputers where GSK
will lessen the time it takes to perceive a disease and the gain of this would permit for quicker
development on scientific remedies and the aggressive advantage on being leading to market
with treatments.
Moreover, From 2015 GSK have switched manufacture to continuous production which
permits for drug treatments to be made inexpensive, quicker and with a smaller impact on the
environment. Further, GSK carry out their operations inside an especially regulated and
implemented industry and within the nations GSK operate, they have to comply with a huge
variety of law, policies and conformity earlier than promoting their merchandise. Therefore, to
meet these requirements, GSK spend upwards of £100m in prison prices to make sure the
business enterprise operates within guiding principle boundary. Moreover, after the Chinese
corruption outrage, GSK have reinvested their funds into the $10bn marketplace. All the same, to
fulfil new laws and regulations, GSK have had to invest closely in new anti-bribe schooling for
their drug reps. Further, the hiring of latest in-residence compliance officials, the funding of
education and the removal of inducement all have proven to demonstrate GSK's allegiance to
repairing their popularity within China (Huq, Pawar and Rogers, 2016).

Recommendations
It has been analysed that pharmaceutical agencies appeared to outsourcing as a minimum
part of their R&D strategies to emerging markets and low price facilities and in other industries,
extensive financial savings can via determining sure operations to regions wherein labour fees
are less expensive. Therefore, GSK pharmaceutical company and biotech companies must
outsource as a minimum a share in their scientific trial management system as outsourcing is a
system as essential to the achievement of the organization as R&D contains powerful dangers.
Further, the company needs to supply innovative new treatment options if it's miles to
overcome its essential, long term venture, i.e. the revenue hole produced by using the industry’s
success to broaden enough, new, patent-protected scientific treatments to offset the sales
misplaced as existing products lose their patent security.
Moreover, making an investment in technological improvements is a worthwhile
commercial enterprise approach for a GSK pharmaceutical company. However, traits along with
accelerative competition, globalization, and shorter product-cycle instances are actual demanding
situations for the enterprise (Obeidat and et.al., 2017). Further, technological innovations allow
a pharmaceutical business enterprise to deal with those demanding situations by reaching greater
consumers and suppliers, receiving instantaneous feedback at a less expensive fee and one such
approach is using e-detailing, wherein a company conveys a product’s information on the
internet and consumers are capable of agenda appointments online and learn about merchandise
or have an agency deal with their questions in real time. Nevertheless, GSK pharmaceutical
enterprise can also use a cellphone application to have consumers test the dangers and benefits of
a product on their telephones. Therefore, technological based commercial enterprise
improvement strategy assist innovations of drug upgrades or manufacture of new drugs.
Nonetheless, approaching new and functioning markets is an essential commercial
enterprise method within the rather aggressive prescription drugs enterprise for GSK
pharmaceutical industry. Further, it has been estimated that 80 percentage of the monetary boom
in the next decade will develop from future markets. However, the approach provide instructions
to the company regarding the way to hire salespeople who recognize the way to promote
products in rising markets. Therefore, in order to remain combative in new markets,

pharmaceutical organizations also ought to offer exceptional and differentiated services and
products (Alam, 2015).
CONCLUSION
This report briefly summarises about the Innovation theory of GSK pharmaceutical
company on the basis of diffusion innovation theory which is inclusive of five stages through
company have innovated their products. Further, the project have outlined about the internal
factors of the company through which they can improve their products like employees and along
with it have framed about the organisational structure and culture of the organisation. Eventually
the assignment have commented on the external factors of the company which are inclusive of
political, legal, economical, environmental and technological factor and along with it have
highlighted about the recommendations through which company can improve their innovative
process.

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