Management in Logistics and Transport: GSK's Internal Dynamics Report

This report provides a comprehensive analysis of GlaxoSmithKline (GSK)'s organizational structure and internal dynamics within the context of logistics and transport management. It begins by describing GSK's hierarchical organizational structure, evaluating its benefits such as improved employee morale and streamlined governance, and limitations. The report then explores GSK's objectives, including strengthening its pharmaceutical pipeline and delivering strong sales, and the ways in which these objectives are achieved, such as through setting SMART goals and focusing on sales growth. Furthermore, it examines the reasons for organizational change within GSK, such as adapting to market dynamics and technological advancements, and the importance of effective change management to minimize resistance and enhance innovation. The report concludes by emphasizing the significance of internal dynamics, structure, and change management for GSK's success in the global market, highlighting the company's focus on employee engagement and operational efficiency.

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Management in Logistics and Transport
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Report 1: Internal Organisation Dynamics
Introduction
In today’s competitive business world, it is essential for the company to grow towards
environmentally and sustainable sound practices. Internal dynamics in the company are the
key drivers for implementing and developing environmental management policy and
strategies (Gutiérrez‐Rincón, 2014). The process of enhancing employee performance and
strengthening resources continuously is termed as organizational dynamics where the
company promotes and manages learning, strategic management and better business practices
(Drunis, 2015). This report is about analysing the organisational structure along with
evaluating its benefits and limitations. The discussion is based on GSK (Glaxo SmithKline)
Pharmaceuticals Company taken as an example which is based in London. Also, ways of
achieving the objectives by the company along with systems and information utilised for
measuring is to be discussed. Moreover, reasons where the company needs to undergo change
and importance of effective change management is covered as well.
Organisational Structure
In order to achieve the goals, every company make sure to define a structure for working
systematically outlining certain activities directed consisting responsibilities, rules, and roles.
The organisation structure is important to examine the flow of information based on levels in
the company. In the company, there are various departments, job and responsibilities that is
managed, controlled and authorized. It is a structure for operating and managerial tasks
performed in the company where it is essential to have coordination and correlation between
individuals permitted within the level of management (Devaney, 2019). Moreover, the
structure of the company facilitates changes and growth significantly within a dynamic
business world. The company looks out for change when notices the growth and expansion in
complexity that requires to attempt smooth operations in business through efficient

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organisation structure. Lastly, the structure of the company defines regulation and
coordination of responsibilities enabling to function as an integrated unit (Lotich, 2019).
In the UK, GSK is a healthcare organisation leading through its business and services
expansion while manufacturing, creating, developing pharmaceutical products and curing of
diseases. Further, the company provides welfare to individuals across the globe and achieved
its position on fourth in LSX (London stock exchange) and numerous awards for
achievement at high. The employees of the company work with coordination following
organisational structure and culture using technology advancement by efficiency increment
within the workplace. GSK designs the structure of the company for goals fulfilment and
helping to accomplish by following it for achievement through best way (GSK, 2019). There
are different structures such as geological, hierarchical, matrix and functional type where
GSK follows hierarchical structure within the company. However, there are various levels in
this structure possible to understand through pyramid where numerous workers are working
below supervisor directing them and so in the smaller level. The topmost level is the position
of CEO of the company looking after progress as a whole. So, continuation of series is known
to be hierarchical along of culture that needs to be followed. GSK’s structure boosts morale
of the company’s employees while encouraging them to achieve goals and perform better
with enthusiastic and motivated environment (ET Bureau, 2019). The company make sure
about employees need not face to deal with the issue of working hours where they are able to
adjust them.
Moreover, GSK launched the programme of end-to-end supply chain for simplifying it by
restructuring the framework of the company along with simple streamlined governance
model. The company ensured about complexity reduction in operations by creating and
taking right decisions. Further, employees can easily share their views on welfare, safety,
productivity and more in relation to the development of the company. And, based on the
feedback of employees, there are programs related to training conducted to improve the
company’s performance (Hasan, 2018). The main focus of GSK is on transparency,
teamwork, and values respect along with increasing the working efficiency of employees by
providing the gadgets to help such as internet, mobile and laptops. It is essential for the

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company to distribute tasks within various groups to make sure about different groups not
working on the same thing and time. As, there is a possibility of productivity affected within
the company and this working of employees together on the task forms culture (Neville &
Mooney, 2018). Thus, the culture of the company defines organizational structure that has to
be executed. In future, GSK decided to form its structure by looking towards the consumer’s
financial dynamics and different pharmaceutical divisions.
In the organisational structure of GSK defines the tall hierarchy model where executives have
the power from top to down within a functional division of employees within the company.
The employees of the company are driven by the impact having on individual’s health where
values are guiding their daily actions. There is a great impact on individuals based on the
company’s culture and structure defining the power of employees along with leadership and
its impacts (Mittal, 2014). It is essential to develop the structure of the company through
communication channels encouraging innovations through creativity. GSK’s flat hierarchical
structure is of outside suppliers’ networks or team approach showing clear results and
communication lines. It is adapted for achieving goals and performing operations where the
problem can be solved through one of the approaches with high levels of authority and
power. The benefits include improved engagement and satisfaction along with more
approachability and relative equality (Dontigney, 2019). Thus, this structure maintains the
flow of information through communicating top down; make sure about the productivity by
boosting the moral of employees to perform better and there is effective working in
management.
Organisation’s ways and measures to achieve objectives
In the company, it is essential to achieve objectives for leading towards success that is
possible by allowing and managing the steps as required with proper understanding. No
doubt, goals are broader than objectives in business and so it is needed to achieve them
through ways such as sales, operational, and production controls used for success. In
business, objectives are defined through an acronym that is SMART (specific, measurable,
achievable, realistic, and timeframe). So, the ways followed by the company to achieve its

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objectives are setting SMART goals, increasing sales, improving awareness about the
product, and focus on targeting new customers (Jensen, 2016). Thus, the objectives should be
attainable, clear, and actionable. GSK’s objectives the company want to achieve is excellent
implementation of its key launches and strengthening the pipeline being a pharmaceutical
company by focusing well along with improving business and medicines development. Other
than this, delivering strong sales continuously and implementing R&D approach along with
accelerating priority assets and transactions optimisation of current strategic business
development are also the objectives of the company (GSK Co., 2018).
The ways of achieving objectives are based on the performance of the company based on the
growth along with effective investment in business, competitively execution, and people’s
development. GSK wanted to grow sales specifically in markets, therapy areas and
categories, increase margins of operation along with delivering improved cash flow, and
lastly, strengthening the top talented profiles performing key roles (Monaghan, 2018). So,
there is a need of driving sales growth continuously and performance of operations as well
with delivering restructuring plan and benefits for the consumer healthcare business’s
integration. Also, the company accelerates the capability to build in relation to priority areas
consisting digital analytics and data. The company focuses on the levels of supply service
with defining the approach of new global health, and competitive employee engagement as
well. Thus, company follows right measures while making decisions to focus on executing
portfolio and simplifying network, and also delivering modern employer programmes for
empowering employees to be the way there are along with keep growing and feeling good at
GSK (Unilever, 2018). The company aims on growing as a diversified business, operating
models simplification, value products delivery, and growth responsibility in business along
with access in emerging market to attain competitive advantage as well. Objectives are
measured through utilizing systems and information by setting targets and looking towards
performance. It helps in keeping track of the business’s progress and provides information
about execution of strategies based on target-setting system (Baraka, Baraka, & EL-Gamily,
2015). The company measures the sales, customer complaints, returning items, and order
fulfilment.

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Organisation’s reasons to undergo change
In today’s time, the major challenge for the company is to overcome resistance to change
required for improvement practitioners continuously. It is essential to manage change within
an organisation and the reasons of the company to make change consists of performance
gaps, crisis, opportunities identification, new technology, mergers and acquisitions, reaction
to external and internal pressure, and planned abandonment. Moreover, there is change in the
CEO of the company sometimes that requires proving that there will be a change in a good
direction for the sake of an organisation and its board (Swaim, 2014). GSK keep on
practicing to flow with the unstable and changing environment for filling the gap. It is
essential to achieve objectives where there is a situation of making change. The company
look forward towards emphasizing innovation and creativity under the process of change
management where the reason can be risk of being in a high competitive pharmaceutical
industry. The reason can be R&D department making transformational attempt within the
company to fulfil objectives of making change under organisational structure and culture
(McGuire, 2014).
Though, there is a possibility of making change based on the impact of environmental,
political, economic, technological, legal and social factors. Thus, there is need of change
management in GSK for building the performance of the company considering different
aspects. The impact of change can be on particularly the R&D department and the company
for attaining competitive advantage. The process of change management can have effect on
resources, leadership, process and people consisting key performance indicators and
customers. GSK made changes in its global marketing and sales practices for making sure
about considering patient interests as a priority by setting plans to evolve the way of
marketing and selling its products to professionals in healthcare (GSK Plc., 2013). The
change can be in consumer buying patterns and demography, legal pressures complied with
laws, change in interest and inflation rates or booms in any common economic activity,
related to government orders, and new technology developments (Tanner, 2019).

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Thus, one of GSK’s changes was merging with Pfizer for stronger consumer healthcare arms.
As, change is hard but led to growth, progress and improvement as the effective change
management focuses on impact on business and to make sure about the success of the
company’s change initiatives and overcoming hurdles noticed at the time of change. Change
management is important and effective for the companies to adapt because it minimize
resistance, improve performance, increase engagement, reduce costs, and enhance innovation
(Span, 2019). It is important to manage change for ease tension and creating a smooth
process, saving the company’s resources and time, innovating and creating adaptable
workplace for GSK leading to success by making transitions along with executing
appropriate strategy helpful in facing challenges effectively (Smith, 2014).
Conclusion
To conclude, the internal dynamics of the company are based on its structure, ways of
achieving objectives and making change while managing it to reach success. Every company
define its structure based on the reasons related to communication and productivity of
employees within the company effectively, and so does GSK. It is essential for the company
to achieve objectives through appropriate ways utilising systems and information to measure
them through performance. Sometimes, the company needs to make change based on some
aspects for performing better and working hard for operations where it is important to
manage change along with employees of the company. Here, GSK gives priority to its
employees and try to boost their morale for better performance of the company within the
market and society across the globe.

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