Performance Report: Evaluation of GSK plc's Performance

Performance Report

Contents
Executive Summary.................................................................................................................1
Introduction..............................................................................................................................2
Background, Purpose, and Structure.................................................................................2
Literature Review.....................................................................................................................3
SWOT Analysis.....................................................................................................................3
Financial Analysis.................................................................................................................4
Ratio Analysis.......................................................................................................................4
Balance Scorecard................................................................................................................4
External Analysis – PESTEL Analysis...............................................................................5
Performance Analysis..............................................................................................................5
External Influencers.............................................................................................................5
Financial Analysis.................................................................................................................8
Balanced Scorecard.........................................................................................................................9
Appendices.........................................................................................................................................12
Appendix 1.....................................................................................................................................12
Appendix 2.....................................................................................................................................13
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Executive Summary
The study is based on an evaluation of GSK plc's performance. This was done in order to
recognize and comprehend the organization's key performance indicators, constraints, and
areas for improvement. The author provides an overview of the company, including its
history and current position. The literature in financial ideas used in external, internal, and
financial analysis has been critically debated in this report.
The PESTEL analysis was used to examine GSK's external environment, which revealed
important negative effects from political, economic, and legal factors, as well as opportunities
in social, technical, and environmental areas. This was then assessed in terms of internal
analysis using a SWOT analysis.
Profit margins, liquidity, and profitability ratio were used to evaluate GSK's financial
performance over a period. The strategic theme of business development, as well as
operational and cost efficiency, was used to create a balanced scorecard. Financial, customer,
internal business, and learning and development objectives, measures, and KPIs have been
created for the four views. The report concludes with appropriate findings and
recommendations regarding GSK's performance.
Introduction
Background, Purpose, and Structure
GlaxoSmithKline (GSK) is one of the biggest pharmaceutical research and development
firms, developing, manufacturing, and marketing a wide range of quality human personal
care products (Prange and Kattenbach, 2019). The company's headquarters are in the United
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Kingdom, but it also has a presence in the United States of America. The firm employs over
1,03,000 people and operates two distinct core businesses. Pharmaceuticals and personal care
products are the two subsidiaries. Seretide and Advair are two of GSK's most popular
products, accounting for over 85% of the company's sales (COPD). Anti-malaria drugs,
Zentel, Pentosam, antiretrovirals, and TB drugs are among the company's other important
products (GlaxoSmithKline 2013).
Andrew Witty, CEO of GSK, took a strong a philanthropic gesture by donating one-fifth of
total profits to undeveloped countries to establish health services, and promote malaria
vaccine pricing at just 5% more than the cost for lower-income countries to improve the
company's credibility (Weeden, 2011).
"We function like crazy to deal with the next excellent medicine, understanding that it is
likely to get used a lot in developed countries, but we could do something for developing
countries," says Andrew Witty, CEO of GSK (Boseley, 2009).
This report seeks to uncover the secrets to this global pharmaceutical market leader's success
by examining the internal, external, and financial factors that influence its performance. This
would reveal the reasons that contributed to its success as well as its limits.
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