Formative Project: GlaxoSmithKline - Business Structure and Analysis

This report provides a comprehensive analysis of different organizational structures, including public, private, and voluntary sectors, and examines how they align with business objectives. It delves into the complexities of each structure, highlighting the relationships between departments within a company like GlaxoSmithKline (GSK). The report further evaluates the macro environment using PESTLE analysis, assessing political, economic, social, technological, legal, and environmental factors impacting GSK. An internal SWOT analysis is conducted to identify strengths, weaknesses, opportunities, and threats, informing strategic recommendations for GSK's operations. The report concludes with an evaluation of potential actions for GSK based on the analyses conducted, offering a detailed understanding of its business environment and strategic positioning.

Formative Project

Table of Contents
Introduction......................................................................................................................................1
Section 1...........................................................................................................................................1
Explicate distinct type of organisation and their structure.....................................................1
How organisational structure is aligned with business objectives.........................................3
Analysis of complexities of different business structures......................................................4
Section 2...........................................................................................................................................5
Evaluation of macro environment..........................................................................................5
Conduct internal analysis.......................................................................................................7
Evaluation of actions for GlaxoSmithKline...........................................................................8
Conclusion.......................................................................................................................................8
References......................................................................................................................................10

Introduction
Business environment is defined as aggregation of distinct factors that needs to be
handled by firms but leads to relevant influence on growth, performance and profitability.
Internal factors comprise of suppliers, shareholders, customers and external factors involve
government rules, competitors, economic conditions, etc (Akhtar and Sushil, 2018). The firm is
based on GSK (GlaxoSmithKline) plc which is multinational pharmaceutical firm founded in
2000. They render their services worldwide and offers products like nutritional products,
vaccines, over-the-counter medicines and pharmaceuticals. This report comprise of distinct types
of organisations and different aspects associated with them. Along with this, macro factors will
be analysed.
Section 1
Explicate distinct type of organisation and their structure
Organisations are entirely dependent on types that depend on working standards through
which effectiveness can be enhanced. Different kinds of organisation along with their purpose
are illustrated beneath:
Public sector organisation:
This is firm that owned by government and are funded by public. They render their
services within the market for having high profit and this is being attained via selling as well as
offering enhanced care to society with rationale of development. GlaxoSmithKline offer their
services within the pharmaceutical industry and renders people with vacancies, oral healthcare,
etc.
Purpose: This is processed with intent for rendering enhanced treatment for society through
which alterations can be addressed with time.
Legal structure of GlaxoSmithKline:
 Central: This is suitable method for collecting funds that takes into consideration income
tax along with information gathered from people and Government as both supports GSK.
State: In this case businesses makes effectual use of distinct powers that is segmented according
to different regions as well as need for having medical assistance (Belas and et. al., 2018).
 Local: This legal structure implies collection of financial sources which will lead to
affirmative changes within the society in context of council taxation.
1

Private sector Organisation:
This involves businesses that are possessed by private group of people. Abzena is private
firm that renders proprietary as well as complementary solutions according to involvement
within development.
Purpose: These firms (Abzena) work together with intent for promoting scientific development
in context of pharmaceutical business.
Legal structure:
 Sole proprietorship: This acts as a basis for business that comprises of relevant
management as well as controls that is being possessed via individuals through which
higher sales can be attained and thereby high profits. For an instance medical stores
require licence, etc.
 Partnership: In this case, individual have restricted form of obligations where partners
have to come into an agreement (Brenner, 2018). This will enable them to share assets
and liabilities.
 Company: This is being followed by firms to formulate strong connection which will
lead them to have longer sustainability by attaining perfection and suitability. In this case,
profit is shared like support to shareholders and they need to abide to certain laws and
regulations.
Voluntary organisation:
The business have processed their operations with an intent for having high involvement
through which profit is utilised for addressing welfare of the society. NHS renders healthcare
facilities to society.
Purpose: The rationale of NHS is to furnish better welfare services by analysing health
situations, symptoms and accordingly render high living standards to people.
Legal Structure:
 Unincorporated Association: In this case, the agreement takes place among group as
well as set of individuals who are looking forward to work together for attaining identical
purpose instead of earning profit.
2

 Trust: Here, formal agreements takes place among three distinct parties and trustee have
right to the property.
 Company limited by guarantee: In this case, there are restricted members as well as
shares within the firm.
How organisational structure is aligned with business objectives
There exist different kinds of organisation; they are public, voluntary and private there
functions, size and scope is specified below:
Public Organisation: Firms within public sector are partially or wholly owned via governmental
authorities. With reference to GlaxoSmithKline it is a public firm which are engaged within
pharmaceutical services to their people of country worldwide to ensure their health and safety.
Size: GlaxoSmithKline is liable for offering services worldwide and they have more than
3500 employees who are responsible for treating society.
Scope: GlaxoSmithKline have a scope to improvise quality of their offerings through
digitalisation for rendering quick flow of information (Brenstein, 2019).
Private Organisation: Organisation within such kind of organisational structure leads to enjoy
functions and they are less touched via interventions that are being made government. Abzena is
liable for rendering proprietary technologies as well as complementary services for organisation
that comprises of developing products related with biopharmaceutical.
Size: Abzena is life sciences group and renders wide range of solution within integrated
that can be discovered in early phase for mid-phase biotherapeutic &ADC development services.
They have 20 biopharmaceutical firms which supports within manufacturing of enhanced
treatments.
Scope: Abzena hire potential and skilled employees who are highly competent for taking
it to new heights by delivering effectual services. Firm have scope for expansion of services in
areas where they cannot reach.
Voluntary Organisation: They are formed under structure that is managed as well as owned via
certain group of individuals who are willing for coming up with a rationale to render welfare for
society (Iglesias and et. al., 2020). NHS is umbrella terms that is publicly funded system. They
came into existence in 1948 and till then they are delivering healthcare services.
3

Size: NHS delivers their services in 4 countries and has volunteers from distinct locations
for providing health services to different segments of society.
Scope: Firm can enhance their scope via rendering their services in countries where they
have not reached and offer welfare services.
Analysis of complexities of different business structures
Each firm have unique working structure where power along with responsibilities of individuals
is specified within adequate way. With reference to GlaxoSmithKline, they have opted for
having corporate culture in working premises so that they can conduct their operations in an
effectual manner (Kokodey, Gnezdova and Lomachenko, 2018). This culture is further divided
within distinct functions as well as departments. The relationship among distinct departments is
specified beneath:
Research & Development and Production Department: The R&D department of
GlaxoSmithKline carry out research by analysing the situations that prevails within the
marketplace and acknowledge the requirements. This is done to identify needs of people and
analyse the statistics like at present Covid-19 is a situation which pharmaceutical industry is
going through in context of which vaccine will treat it. The information attained is provided to
production department through which requirements of people can be accomplished. This will
assist them to render enhanced services and ensure that they are able to fight within pandemic
conditions. Accordingly the alterations will be made within their offerings and attain overall
purpose of GlaxoSmithKline.
Human Resource and Finance Department: The HR of GlaxoSmithKline is liable for
recruiting skilled and talented employees who possess relevant knowledge related with tasks they
have to conduct. Furthermore, it is important that relevant training is rendered to employees
through which they can acknowledge working culture of firm (Lindgreen and Di Benedetto,
2020. In addition to this, training will also be rendered to existing employees of
GlaxoSmithKline with reference to enhancements in the marketplace. For carrying out such kind
of activities, HR of firm needs to have funds that will be analysed via finance department. The
firm will be able to generate better results if they have well qualified employees.
4

Section 2
Evaluation of macro environment
The macro-environmental factor leads to creation direct influence on productivity as well
as performance of business. This can be analysed by usage of Pestle analysis and in context of
GlaxoSmithKline, this is specified beneath:
Political: This factor comprises of certain laws and decisions that are being taken by
government. This comprises of trade restrictions, political stability and many other aspects. The
positive and negatives are:
Positive: Due to change in power and Brexit there is instability in UK but firm delivers their
services worldwide who have certain stability within their rules & regulations which render
GlaxoSmithKline with opportunities for growth (Newman and et. al., 2020).
Negative: Altering powers in different countries lead to alterations within rules &
regulations. This implies that GlaxoSmithKline needs to formulate strategies through which they
can sustain within the marketplace.
Economic Factors: These factors lead to creation of direct influence on country where distinct
firms are rendering their services in distinct sectors. This involves inflation rate, foreign
exchange rates, etc.
Positive: Brexit and covid-19 have created strong influence on currencies and sales have
also declined. But as GlaxoSmithKline deals within pharmaceutical industry the firm has not
faced such decline within their operations as medicines were needed by people as they go
through different health issues.
Negative: There is fluctuation within prices of different countries so organisation needs
to take into consideration different pricing strategies (Popescu and Popescu, 2019).
Social Factors: They implies factor that deals with conditions which prevails within the market.
This comprises of demographics such as population, age, etc.
Positive: GlaxoSmithKline renders opportunities to individuals on the basis of their
capabilities irrespective of sexuality within their working premises. This enables them to render
job satisfaction to employees and thereby productivity can be amplified.
5

Negative: With instability within the market, people have become very particular about
treatments or medication that is given by firms. This becomes necessary to have interaction with
practitioners so that they can have vaccine from particular brand.
Technological Factors: Technology is rapidly altering with alteration within requirements of
consumers. It implies that changes within demands that have to be executed by new
technologies.
Positive: They are liable for rendering mobile application to customers so that they can
have social distancing and furnish them with adequate services. This will enable
GlaxoSmithKline to deliver services easily to their customers (Tajeddini, Martin and Ali, 2020).
Negative: The technology is evolving rapidly and it might become difficult to identify
which technology will be able to deal with the requirements of GlaxoSmithKline. Changing the
technologies after certain instance of time can be expensive.
Legal Factors: This factor involves distinct laws, regulations and policies that have been
developed via government. This is carried out for ensuring health & safety of employees so that
any kind of discrimination or safety of employees can be considered.
Positive: GlaxoSmithKline ensures that they adhere to all the regulations that have been
developed by government where they deliver their services. This is done for providing workforce
with healthy and safe environment.
Negative: In case if GlaxoSmithKline do not abide to rules or policies of government
then they can be penalised and even their licence might be terminated.
Environmental Factors: This is necessary for firm that they visualise influence that is being
created by their operations on the environment. With respect to this, they have to develop
strategies and accordingly adhere to them (Tuan and et. al., 2019). Through this,
GlaxoSmithKline will be able to minimise their contribution within polluting the environment.
Positive: GlaxoSmithKline is opting for renewable means through which their products
can be furnished. Furthermore, for packaging they can make use of recycled materials and make
sure any kind of damage is not caused by them.
6

Negative: For being sustainable within the marketplace, it is necessary that they develop
effective strategies and emphasise on productivity by minimisation carbon footprints.
Conduct internal analysis
The SWOT analysis is being used for having internal analysis. The SWOT analysis of
GlaxoSmithKline is illustrated below which aids within identification of different assets that will
enable them to formulate strategies accordingly.
Strength The GlaxoSmithKline conducts strong R&D which will lead them to boost up
their portfolio and expand it on timely basis for effective development. This
induces giving high benefits that will aid within suitable progress which will
strengthen market positioning along with their place in market. This leads to
enhance sales and marketing network of GlaxoSmithKline which is wider for
having accessibility. Furthermore, firm have developed their strong global
presence around the world which minimises interdependency of risks (Wu,
Buyya and Ramamohanarao, 2019).
Weaknesses Various fraud allegations within healthcare industry leads to create impact on
market image, values and also leads to promote unlawful prescriptions. The
false pricing, reports and charges leads o hamper brand image. An instance can
be taken like promoting antidepressants charges across US are not approved via
FDA but leads to create a strong pessimistic influence on the sales and
productivity of GlaxoSmithKline.
Opportunities The firm have conducted strategic expansion for supporting collaboration along
with acquisition of GSK as they amplify their portfolio. They have collaborated
with Pfizer, HIV specialist, ViiV and Shionogi specialist firms. For an instance,
Nucala is launched via GSK for treating refractory asthma that prevails in
adults. The awareness and demands related with healthcare in countries like
India leads to enhanced growth and ensures sustainability within the
marketplace.
Threat The price of drugs controlled via distinct countries along with new pricing
policies that are being developed as well as leads to reduction within production
rate of drugs. There lies intense competition in pharmaceutical industries that
are faced via price war which is liable for limiting selling market of the
7

business. By introducing generic products, there is direct influence that is
created on sales of pharmaceutical products and their availability needs to be
increased.
The interrelationship that prevails between strengths along with weaknesses and external
factors render adequate knowledge related with productiveness of GSK. The company is having
relevant growth because of pandemic situations which prevails across the world and individuals
need medicines for treating them. Along with this, Covid-19 and Brexit have relevant influence
on income of public (which is reduced due to minimised economy or declining economic
conditions). The GlaxoSmithKline is able to have relevant profit as they have collaborated with
other organisation through which their accessibility and profitability is amplified in an
affirmative manner (Zhu and et. al., 2020). The technological factors are not aligned with this as
it leads organisation to bear high cost and it is evolving at rapid pace so it becomes difficult to
identify which will accomplish all the requirements of the organisation. This enhances
production cost which further leads to decline within the revenue.
Evaluation of actions for GlaxoSmithKline
GSK is a pharmaceutical company and the conditions which prevail worldwide have not
created any pessimistic impact on the way in which services are delivered as medicines are
needed by almost each individual. The firm have wide range of portfolio and their situations are
altering. They have formulated strong policies and strategies by which they have collaborated
with different firms in order to enhance their offerings. This leads them to have high efficiency
along with effectiveness. As per consideration of environmental and legal factor company is in
better position.
Conclusion
Based on the above discussion, it is inferred that business environment aids within
carrying out analysis of the market as well as their capabilities. This aids them within
formulation of effectual strategies. There is distinct kind of organisation which leads to process
working of business along with their ability for making high profits in restricted frame of time
that is being attained via perfection as well as have enhanced suitability. For this, they need to
adhere to legal framework so that they do not fall into any kind pessimistic situations. This assist
8

them within carrying out business operations in an adequate manner and turn their limitations
into strengths.
9

References
Books & Journals
Akhtar, M. and Sushil, S., 2018. Strategic performance management system in uncertain
business environment. Business Process Management Journal.\
Belas, J.and et. al., 2018. Relationship of gender to the position of Slovak University students on
the socio-economic determinants of the business environment and the development of
entrepreneurship. Entrepreneurship and Sustainability Issues.
Brenner, B., 2018. Transformative sustainable business models in the light of the digital
imperative—A global business economics perspective. Sustainability. 10(12). p.4428.
Brenstein, R., Electronic Credit Systems Corp, 2019. Business to business marketing system.
U.S. Patent 10,489,794.
Iglesias, O. and et. al., 2020. Corporate brand identity co-creation in business-to-business
contexts. Industrial Marketing Management. 85. pp.32-43.
Kokodey, T., Gnezdova, I. and Lomachenko, T., 2018, October. Modeling the global business
environment based on polycyclic theory. In The International Science and Technology
Conference" FarEastСon" (pp. 487-499). Springer, Cham.
Lindgreen, A. and Di Benedetto, C.A., 2020. How to become a top business-to-business
marketing scholar.
Newman, C. and et. al., 2020. Corporate social responsibility in a competitive business
environment. The Journal of Development Studies, pp.1-18.
Popescu, C.R.G. and Popescu, G.N., 2019. An exploratory study based on a questionnaire
concerning green and sustainable finance, corporate social responsibility, and
performance: Evidence from the Romanian business environment. Journal of Risk and
Financial Management. 12(4). p.162.
Tajeddini, K., Martin, E. and Ali, A., 2020. Enhancing hospitality business performance: The
role of entrepreneurial orientation and networking ties in a dynamic
environment. International Journal of Hospitality Management. 90. p.102605.
Tuan, L.T. and et. al., 2019. Customer value co-creation in the business-to-business tourism
context: The roles of corporate social responsibility and customer empowering
behaviors. Journal of Hospitality and Tourism Management. 39. pp.137-149.
Wu, C., Buyya, R. and Ramamohanarao, K., 2019. Value-based cloud price modeling for
segmented business to business market. Future Generation Computer Systems. 101.
pp.502-523.
Zhu, Y. and et. al., 2020. Business-to-business referral as digital coopetition strategy. European
Journal of Marketing.
10