Business and Business Environment Report: GSK, UK, and Sector Analysis

This report provides a comprehensive analysis of the UK business environment, encompassing public, private, and voluntary sectors, along with their organizational structures and objectives. It delves into different legal structures within the private sector, using Glaxo Smith Kline (GSK) as a case study. The report explores GSK's organizational structure, size, and scope, examining its role in product and service creation. It includes a PESTLE analysis to assess external factors impacting GSK and a SWOT analysis to evaluate its internal strengths, weaknesses, opportunities, and threats. The report concludes with a course of action for GSK, offering strategic recommendations. The report covers topics such as the different types of business structures and interrelationships with organizational functions. The report also covers the legal structure of the organization and the different functions that are present in the organization. The report is a detailed overview of the GSK business environment and its strategic position within the UK market.

BUSINESS AND BUSINESS
ENVIRONMENT
1

Contents
INTRODUCTION...........................................................................................................................................3
SECTION 1...................................................................................................................................................4
DIFFERENT TYPES AND PURPOSE OF ORGANIZATION PUBLIC, PRIVATE, VOLUNTARY SECTOR..............4
DIFFERENT LEGAL STRUCTURES IN THE PRIVATE SECTOR .....................................................................5
LEGAL STRUCTURE OF GLAXO SMITH KLINE ..........................................................................................6
ORGANIZATIONAL STRUCTURE, SIZE AND SCOPE OF BUSINESS AND THEIR OBJECTIVES AND ROLE IN
CREATION OF PRODUCTS AND SERVICES SOLD IN THE MARKET ............................................................6
DIFFERENT TYPES OF BUSINESS STRUCTURES AND INTERRELATIONSHIP WITH THE ORGANIZATIONAL
FUNCTIONS .............................................................................................................................................7
SECTION 2....................................................................................................................................................9
PESTLE ANALYSIS FOR GLAXO SMITH KLINE ...........................................................................................9
SWOT ANALYSIS ...................................................................................................................................10
COURSE OF ACTION FOR GLAXOSMITHKLINE........................................................................................11
CONCLUSION.............................................................................................................................................12
REFERENCES .............................................................................................................................................13
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INTRODUCTION
Any company has to work in a profitable business environment directly influences and impact
the operating and decision making of the business (Hans, 2018). The report focuses on the
function, scale and nature of different types of organizations operating in the UK including
governmental, private and non-profit organizations, along with the overview of their
organizational structure, objectives, and service provided by these kinds of firms. The report will
discuss the working of such type of organizations, PESTLE, and SWOT analysis of the
organization is done by taking an example of Glaxo Smith Kline, a pharmaceutical company.
Glaxo Smith Kline is a public company which is Pharmaceutical Biotechnology customer goods
founded in the year 2000, having headquarters at Brentford, England UK (Hans, 2018)
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SECTION 1
DIFFERENT TYPES AND PURPOSE OF ORGANIZATION PUBLIC, PRIVATE,
VOLUNTARY SECTOR
Being a business analyst the public private and voluntary sector organizations need to
be studied in brief.
PUBLIC SECTOR ORGANIZATION: Such type of organizations are governed and
managed by the government of the country. These type of organizations provide some
goods and services to the citizens these type of organizations are run by the
government with the money that comes from taxes. Public sectors organizations include
Healthcare, law enforcement and security like armed forces and police, social working
organizations, educational organizations as teacher or professors etc. the job
opportunities in this sector are categorized in two ways general or professional, these
posts are given to the individuals according to their qualification. An example of a public
sector organization is Glaxo Smith Kline Bank of England (Bouckaert et al. 2016).
For example, Glaxo smith kline is a pharmaceutical company which is established in the
year 2000 and have their headquarters in England. The company was named as the
sixth-largest pharmaceutical company in the year 2019. This is a public limited company
of the UK and has offices in about 115 countries it provides employment to about
99,000 people. As of now, the government has signed up an agreement with this
company for a Coronavirus vaccine (Bouckaert et al. 2016).
The Bank of England is the Central bank of UK and is model on which most of the
model bank are based. The bank is established in 1694 and acted as the English
government's bankers.
PRIVATE SECTOR COMPANY: Private Sector companies are those companies which
are run by the government. They are one of the major part of the economic of the
country which is run by different individuals and companies with the major intent of
getting the profit out of business.
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The private sectors organizations are governed and maintained by Organizations in the
private sector are owned privately. These corporations are profit-driven. Members,
lenders and customers prosper from the profit from private sector organizations. For
the community's profit, they offer goods and services. By creating a new enterprise or
privatizing a public sector company, a private sector organization is created. A major
company in the private sector can be privately or publicly traded (Demircioglu, and
Audretsch, 2017).
For example, Bestway is known as the largest privately owned organization in the UK, it
was established in the year 1976 and by Sir Anwar Pervez, the company runs 798
pharmacy shops in the UK, this is a multinational corporation having headquarters in
London and employs about 36000 people. This works in the pharmacy industry as well
as cement and banking (Demircioglu, and Audretsch, 2017).
The legal structure of the private companies is that to form structure private company
need to have a small numbers of shareholders who come and start the company for
social cause for profit motive.
VOLUNTARY SECTOR ORGANIZATIONS: The voluntary sector organizations implies
to companies whose primary goal is to achieve social impact instead of profit. They are
also referred to as the third party, public society, or the non-profit sector. In order to help
the public sector save money and provide quality programs, charitable groups will make
a great impact. Locally-based groups often also have the trust of persons who are
deemed 'hard to access' by public bodies and may assist public bodies in
communicating with and addressing the needs of those populations (Jones, et al.
2016).
For example: "Save the Children" is a voluntary organization established in the UK in
the year 1919, this is a non-government organization (NGO) the international
headquarters of Save the Children is located in London. The organization works in the
welfare of children and in improving their lifestyle by providing them education and other
essential skills that are needed, this also helps children economically and for the
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abandoned children they provide food shelter and other facilities too (Jones, et al.
2016).
DIFFERENT LEGAL STRUCTURES IN THE PRIVATE SECTOR
The private sector has a separate legal identity in the market. Mostly the private limited
companies are mostly small and run as a family business kind of thing; the
shareholders of these types of organizations have the liability of being a part of the
business as each and every shareholder of the company has equal rights in the
organization and also a limited obligation in the organization’s amount overdue. A
variety of formal papers must be fulfilled before a corporation can be founded the
Written agreement and the Agreement is by far the most important, (Uddin, 2018) the
priorities of the organization are-
 Its registered office and headquarters
 The capital sum to be earned by the selling of the shares
 Information on meetings within the organization
 The arrangements for auditing the company's finances.
The legal structure of the Private Sector companies: -
1. Sole Trader
2. Partnerships
3. Cooperative
4. limited companies ( Private and Public )
LEGAL STRUCTURE OF GLAXO SMITH KLINE
The legal structure of the organization Glaxo smith kline consists of board members, the
chairman, executive directors, and there are twelve independent of non-executive
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directors The pharmaceutical companies are governed by DHSC in the UK. The
organization ensures the health and safety of the citizens and also to improve the
quality of the industry or business by providing a suitable care of guidelines and policies
of the government regarding the use of drugs in the industry. The establishment of the
pharmaceutical industry in the UK requires to follow the Medicines act, 1968 and the
pharmacy order 1968. (Uddin, 2018)
Chairman
Corporate executive Team
Board Committees
Audit and Risk
Figure 1 Legal structure
SOURCE: (Uddin, 2018)
Chairman
Corporate executive Team
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Board Committees
Audit and Risk Committees
Nomination Committees
Finance Committees
CSR Committees
The legal structure of the GSK is into the hierarchical, it start from the Chairman Sir
Philip Hampton. After that they have a corporate executive team which is made to
handle the different corporate situation. The company have Boards of Directors, then
different committee for different purposes. The organization is govern by the boards
committee and have official control of governance.
ORGANIZATIONAL STRUCTURE, SIZE AND SCOPE OF BUSINESS AND THEIR
OBJECTIVES AND ROLE IN CREATION OF PRODUCTS AND SERVICES
SOLD IN THE MARKET
VISION: To improve the quality of business and to create a balanced business and
product portfolio this is capable of providing sustainable growth of the organization.
MISSION: The mission of the organization is to make people feel better and live longer.
OBJECTIVES: The Company has defined some objectives that include
 Growing as a diversified organization
 To deliver enhanced quality offerings
 To Improve working frameworks of the organization
 Continuing to grow as a trustworthy brand (Rono, 2020).
SIZE AND SCOPE: GLAXO SMITH KLINE is known as the biggest organization
having scope in the revenue, range, and exposure in the national and international
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market. The GSK has a great performing capability; this is a multinational company or
large-sized business organization. The GSK has an expanding scope in the
pharmaceutical industry and as of now in the times of coronavirus, this is proving to the
best because the government has made up a tie-up with the organization that’s why it
has a great scope in the future (Rono, 2020).
ROLE OF THE BUSINESS IN CREATING PRODUCTS AND SERVICES: The
business provides medicinal products and with innovation and keeping in mind of
providing no harms to the environment and the long term products as well. The GSK is
famous for its approach in the research and development of the pharmaceutical
industry. The consumer healthcare research and development team at GSK focuses on
developing the products in five categories oral health, pain relief, respiratory, nutrition,
and gastrointestinal, skin health etc. (Sartor, and Beamish, 2019.). GSK is focused in
making different kind of health care prodcts and medicines, they have products in
Pharmaceuticals, vaccines, oral healthcare, over the counter medicines, nutritional
product.
DIFFERENT TYPES OF BUSINESS STRUCTURES AND INTERRELATIONSHIP
WITH THE ORGANIZATIONAL FUNCTIONS
THERE ARE VARIOUS ORGANIZATIONAL STRUCTURES:
FUNCTIONAL STRUCTURE: A functional hierarchical structure with a chain of
command is followed by most organizations. In other words, different divisions have
multiple roles that report to branch heads, or departments like HR, R&D, marketing etc.
these operate by providing different task or works to the different professionals. The
structure comprises of the levels in which on the top there is a CEO who monitors the
activities of the employees (Sartor, and Beamish, 2019.).
DIVISIONAL STRUCTURE: In such type of structure the organization is based upon the
products that are being offered by the organization. The product lines have working
standards in different organizations such as HR, marketing, finance etc. The structure
is divided into the small different parts in which there are all the essential elements or
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resource and functions are included in order to support the production or the products
of the organization (Zhang, et al. 2018).
MATRIX STRUCTURE: The large-sized organizations follow such type of structure in
the business because this is a complex structure; the working is divided in the
accordance with different projects provided to the people for their accomplishment of
targets on time and in an effective manner. Basically, this implies working or reporting
to two or more managers about the work or the task that has been assigned to an
individual (Zhang, et al. 2018).
The organizational structure is the sum of various tasks carried out in order to
accomplish organizational objectives by the various divisions of the corporation. GSK is
a large organization that follows a hierarchical structure in which there are multiple
levels which can be understood as a pyramid of tones of staff employed under it that
are directly monitored by a lower level above them, who are often supervised by people
above them. An organizational structure is a framework that specifies the course of
such operations in order to accomplish an organization's objectives. Laws, duties and
obligations should be used in these tasks. The organizational structure also defines
how knowledge moves within the organization across stages (Zhang, et al. 2018).
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SECTION 2
PESTLE ANALYSIS FOR GLAXO SMITH KLINE
POLITICAL: This is the most important aspect for a business especially for a
pharmaceutical company like Glaxo smith kline, for checking out the stability and the
profitability of the organization. Most of the countries have a ban on some drugs that are
used in the making of medicine, which can be an important factor to keep in mind. The
political factors include the stability of the government, the regulations that are made for
trade, the anti-trust laws created by the government etc. (Francis, et al.2020)
ECONOMIC: There are several economic factors that influence the growth of the
organization the economic factors include most importantly the economic growth of the
country, the economic system of the country and to its stability as well, the exchange
rates and buying rates, the labour costs required and the efficiency of the market at
specific places etc. (Francis, et al.2020)
SOCIAL: Social factors play an important role in the pharmaceutical organization, the
population's values and behaviours play a significant role in how advertisers at
GlaxoSmithKline understand the consumers of a particular industry. The social factors
include demographics, the standard of living of the peoples and their culture; these are
the factors that play an important role in the growth of a business organization (Vallati.
and Grassi, 2019,).
TECHNOLOGICAL: Technology rapidly destroys different industries from around the
board. The market has been really transforming fast over the last 5 years, the
technological changes made by the organization are technical development, the impact
of technology on the offering of the product, impact of the costing strategies, rising rates
of the technological distribution in the market. These factors have a great influence in
making the business successful and building a healthy environment in the business
(Vallati. and Grassi, 2019,).
LEGAL: The organization when tries to enter a new market then some of the legal
factors need proper attention and are required to be checked, these factors include
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laws and regulations of the particular place. The laws include customer protection laws,
to ensure the safety of the citizens there is a health and safety law, discrimination law
and a law that is required for employee's protection etc. (Vallati. and Grassi, 2019,).
ENVIRONMENTAL: The pharmaceutical industries have some norms of their own like
some medicines are required to be stored in a suitable climate where heat and warmth
are not allowed, for Glaxo smith kline this is important to choose an environment which
is good for the manufacturing of medicines. These factors include climate, weather,
laws regarding pollution, and the environment protection acts of the countries. The
company is required to have all its concentration of making good high-quality medicines
by providing no impact on the environment (Vallati. and Grassi, 2019,).
SWOT ANALYSIS
STRENGTH:
 GSK has made concerted efforts to establish a large section for research and
production.
 The firm has made advances products for infections, HIV, and cardiovascular
medications.
 The devotion of GSK to technology-driven R&D advancement lets the
organization improve its role in the industry (Prayogi, and Wandebori., 2020).
 The strong global presence: GSK product are having a presence worldwide
and they are selling their product in over 100 countries, this help the company in
not relying on few market.
 The sales and distribution network: the networking of the organization is very
good which help them in making good business, they arte keep on working in
increase to the sale and creating wider distribution network continuously.
WEAKNESSES:
 GSK has been accused, in some nations, to have inappropriately advertised
prescribed drugs, misleading price charges, and failed to disclose safety results.
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 It also has charges of endorsing antidepressants that have not been approved by
the FDA in the US for example.
 The cases of faults affected the company's brand value (Prayogi, and
Wandebori., 2020).
 Healthcare fraud allegation affect brand image: the organization is charge by
the unlawfully promoting of prescription drugs, false price charges which caused
the brand image a lot of effect.
 Generic competition and reaching maturity of blockbuster products:
Multiple GSK products and vaccines are exposed to the competition from diffren
generic medicine and some of the other product have reached maturity. This can
affect the overall sale of the GSK products.
OPPORTUNITIES:
 In recent years, GSK has completely naturally expanded its range.
 GSK has recently introduced different products, specifically in the metabolic and
respiratory market.
 The recent conditions of Covid have been a great opportunity for the company
(Prayogi, and Wandebori., 2020).
 Strategic expansion through Acquisitions and collaboration: GSK is
expanding and has organized a lot of ways in dealing and finding opportunities
through the strategic expansion. They earlier in the past did the collaboration and
acquisitions with the Pfizer and Shionogi and acquisition of GlycoVaxyn in
Switzerland.
 Product launches strengthen business: increasing and launching of new
product can make a strength in bushiness and it can also help in making new
goals achieved.
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 Increase demand and awareness about the quality healthcare: the increase
demand for high quality products into healthcare in developing countries is a
good opportunity for Pharmaceutical companies like GSK.
THREATS:
 Prices of drugs are managed by the legislation in many countries, which is a
major threat for GSK.
 GSK's personal care goods and pharmaceuticals are subject to heavy
competition from the market (Prayogi, and Wandebori., 2020).
 The drug pricing control: the pricing laws are one of the threat for the business
as there are countries where the pricing law and the pricing policies have which
may result in prices of the drugs decrease.
 Competition in industry: the intense competitino is one of the major threat into
this industry and it need to be make sure that they are having a good impact on
the business.
COURSE OF ACTION FOR GLAXOSMITHKLINE
There are some parts of the organization that are strong enough and they do not need
to make any changes in them, but some of the points are discussed in the above report
that shows some weak points or areas of the organization that are needed to the
noticed and the organization is required to take some actions on the in order to grow in
this sector. Sometimes the company has been accused of using the inappropriate drugs
in some places or areas where it was prohibited. The company should take care of the
legal aspects of the rules and laws of the government regarding the manufacturing of
the medicines (Haria, 2016).
The pricing strategies or the competitive marketing can result in the downfall of the
organization in the marketplace that’s why they are required to have a proper pricing
strategy or the proper actions for competing in the marketplace. The company also
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faced the charges for selling the antidepressants which were not allowed by the
government, all these circumstances happened due to the lack of knowledge about the
legislative policies of lawsuits of some locations, most of the problems in the
organization occurs due to the less research of the market. Such type of cases result in
the negative marketing of the products or the brand itself that’s why it is needed to be
taken care of all the factors external or internal that may affect the environment, the
PESTLE analysis plays an important role in the determination of such things (Haria,
2016).
GSK is having a good global market image and tey need to make sure that they work
accordingly. They should follow all the possible ways to increase the standards of the
industry they are working and should focus in providing a wider product line to the
customer. They are are innovators and they need to make regular products and focus
on the maturity of the old products. The pricing strategies for some countries need to be
changed from the organization so that they can get better result from different countries.
CONCLUSION
The environment of a business has a great impact on the growth and development of a
business. The impact of the business environment is explained by taking an example of
the Glaxo Smith to kline organization which is a pharmaceutical company. The PESTLE
and SWOT analysis of the organization is done also the size scope and structures of all
types of organizations are explained in brief along with their interrelation with the goals
of the company and the goods and services provided by the firms. The report also put
influence on specific roles of Glaxo smith and their interrelationship with each other in
achieving the business objectives and their impact on the structure of the company.
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