Management Principles Term Report for GlaxoSmithKline Pakistan

1. GLAXOSMITHKLINE
PAKISTAN
Group Members:
Asad A. Shamsi 1611381
Daniyal Khan 1611357
Farhan Khan 1611345
Fatima Zehra 1518158
Moazzam Zia 1611335
Presented to: Mr. Fahad Zuberi
Course: Management Principles (BBA-2G)
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2. Introduction
 GlaxoSmithKline is a world leading research based pharmaceutical company.
 It is the only British organisation in the worlds top 20 pharmaceutical companies.
 Subsidiary companies established in over 50 countries.
 The company is divided into three major regions: Europe, USA, International.
Pakistan comes under the international region.
 GSK Pakistan deals majorly in two industry segments: Pharmaceutical and
Consumer healthcare.
 In Pakistan the company does business in Anti Infective, Vaccines, Skin Diseases,
Nervous system etc.
 Their leading pharmaceutical brands include Augmentin, Zantac, Calpol.
 Renowned customer healthcare brands include Panadol, Horlicks, ENO etc.
 Well known vaccines: Synflorix, Infanrix Hexa, Rotarix etc.
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3.  Vision
“The opportunity to make a difference to
millions of lives everyday“
 Mission
“To do more, feel better and live longer”
 Company values
• Respect for people
• Patient focused
• Transparency
• Integrity
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4. The company operates in two industry segments. These segments are further divided
into Primary Care, Dermatology and Vaccines. The two industry segments are:
 Pharmaceutical
These are prescriptions, medicines and
vaccines comprising of antibiotics,
antidepressants, dermatological, cancer
and cardiovascular medicines.
 Consumer healthcare
This section includes products related to
oral health, skin care, over-the-counter
drugs and nutritional production.
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5. 1. PLANNING
 Priorities for the long term
In 2008 GSK Pakistan established for itself strategic priorities which included:
• To grow a diversified global business.
• To deliver more products of value.
• To simplify the operating model.
• To create a culture of individual empowerment.
• To build trust.
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6. SWOT Analysis
 Strengths
• 14% share in Pakistani markets by
volume.
• Large investments in research.
• Among the top 5 pharmaceutical
companies in the world.
• Presence in more than 100
countries.
 Weaknesses
• Controversies regarding side-
effects and safety of their
medicines.
• Patent expiration of researched
medicine formulas.
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7.  Opportunities
• Increase in demand of healthcare
products.
• Strategic agreements with other
pharmaceutical organisations in
research.
• Increase in awareness regarding
healthcare.
• Stability in Pakistani economy.
 Threats
• Risk of unsuccessful product
launches.
• Economic slow-down in Pakistani
markets.
• Rising local competition.
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8. PEST Analysis
 Political
• GSK imports almost 90% of their raw material because in Pakistan raw
materials are not produced to their standards.
• Its main concern because of this is to have easy import transactions.
• The government of Pakistan controls the price of the drugs.
 Economic
• The inflation rate of Pakistan in 2016 was 3.75% which is good for
businesses.
• GDP growth rate increase from 4%.
• The current economical situation for the company is favourable.
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9.  Social
• Pakistan suffers from trust issues with modern medication.
• Herbal and homeopathy are widely trusted in Pakistan.
 Technological
• GSK is indifferent to technological factors when it comes to research and
development.
• IT department continually brings innovative changes to the organization.
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10. Competitive Forces Analysis
 Current rivals
• Major international players: Abbott, Novartis, Pfizer etc.
• Local competitors: Getz and Sami.
 Threat of New Entrants
• There are countless new entrants in the market.
• They are emerging in the over-the-counter drugs sector.
 Threat of Substitutes
• The molecular formulae of GSK’s researched products are secured by patent
rights and cannot be copied by anyone else.
 Bargaining Power of Suppliers
• Raw materials are procured from importing so the price competitiveness
allows companies to choose the best possible price.
 Bargaining Power of Consumers
• GSK products are sold in grocery stores, hospitals where consumers do not
have the ability to bargain prices.
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11. 2. ORGANISING
 Company structure
GSKs major presence is in Karachi. Company sectors are divided into sales,
global manufacturing services, pharmaceutical and consumer healthcare
functions. The three Global Manufacturing Service sites of GSK in Karachi
are:
• West Wharf GMS
• F-268 Site GMS: Company’s biggest manufacturing facility in Pakistan
• Korangi GMS
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12. BOARD OF DIRECTORS
 Names
• Dylan Jackson
• M Aziz Ul Haq
• Sohail Ahmed Matin
• Abdul Samad
• Hussain Lawai
• Mehmood Mandviwala
• Nicolas Raggot
 Position in the company
• Chairman
• Chief executive
• Non chief executive
• Chief financial officer
• Independent Director
• Non executive Director
• Non executive Director
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13. FUNCTIONAL DEPARTMENTS
The company comprises of five major departments. The roles assigned to
each department are different but they are all inter-related. The departments
include:
 Human Resources
This department is responsible for recruiting and looking after employees. At
GSK, employees are carefully looked after. In this company a culture of
“running after” promotions does not exist. Job vacancies are both internally
and externally posted.
• Succession Planning: When a key member leaves the organisation on
short notice GSKs succession plan helps managers choose an employee
from with in the organisation to take the position. They may be of three
types: Ready now, Ready soon and Ready later.
• Future Leading program: It is a management trainee program that lasts
five years in which trainees are revolved around different departments of
GSK so they have a good understanding of the inner mechanism of the
entire organisation.
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14.  Marketing
GSK organise webinars and taking health-care professionals (HCPs) on board
and educating them GSKs products so that they prescribe them to patients. The
activities of a marketing department include:
• Designing and implementing sales strategies.
• Designing and carry out promotional activities.
• Conducting marketing surveys when required.
 Finance
The company’s financial goals and ambitions are:
• Deliver finance strategy.
• Be a world-class finance team.
• Balance risk and opportunity.
And their various activities include:
• Controlling accounts.
• Completing annual budgets.
• Allocating payments to employees and vendors.
• Keeping a check on revenues and expenses etc.
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15.  Medical Affairs
This department comprises of qualified physicians and doctors. The purpose
of this department is to reaffirm GSKs stance as a patient focused
organisation. In terms of research and development it carries out clinical trials
and vaccine trails.
 Information and Technology
This department is responsible for developing and implementing IT solutions
for the company. The company has recently developed a Customer
Relationship Management (CRM) system that helps field staff and medical
representatives enhance their interaction with the company.
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16. 3. LEADING
 Leadership style
• GSK leans towards a democratic stance.
• Projects and decisions are discussed with employees.
• Though they do a global policy when changes are rolled out.
 Team building
• Employees are sent on training trips around the world.
• These trips strengthen the the skills of individual employees and revitalise
their work attitudes.
 Motivating employees
• The motivating practices of GSK are a mix of both intrinsic and extrinsic
value factors.
• Good performance does not go unnoticed.
• Bonuses are rewarded to individuals who are successful in yielding high
performance and results.
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17.  Inclusion and diversity
• Being an inclusive organisation helps in attracting, retaining and
motivating employees that comprise of diverse communities in which the
company operates in. GSK is committed to the following principles:
1) To make employment at GSK a possibility for people who are differently
abled.
2) Offer equal opportunities to all employees regardless of race, colour,
ethnicity, age and gender.
3) To treat all employees equally regardless of their: gender identity,
expressions, religion or belief.
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18.  Developing workforce
• GSK invests heavily in training and development to harness the most
talented people.
• In order for GSK to enrich their employees with skills and abilities these
opportunities are offered:
1. On the job experience: Managers offer frequent feedback to employees
to help them identify where a person might need development.
2. Developing relationships: They encourage employees to receive support
and feedback through coaching and mentoring.
3. Formal development: This makes up minuscule amount of exposure that
one receives while working at GSK.
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19. 4. CONTROLLING
 ERP System
For controlling day-to-day activities of it’s employees GSK has AccessGSK.
The online application helps employees keep track of their personal
information, performance, objectives and leave applications.
 Performance Management System
It aims to sharpen employee focus on effective leadership, effective
deployment of strategies and positivity in managing performance. GSK has
clearly outlined what it expects from it’s employees:
• To measure the difference between desired and actual performance.
• To set direction and inspire.
• To develop capability.
• To work across boundaries.
• To drive performance.
• Release positive energy etc.
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20.  Feedback control
Feedback plays vital role in organisation growth and enhancement. Surveys
are conducted in an organisation taken account the stakeholders. Feedback
content allows managers to use information from past performance to bring
future goals into reality.
• Strategic planning: A major part of feedback control which aspects give
qualitative analyses of the company’s current position in the market.
 Warehousing, Distribution and Quality management
The QMS standards of GSK make up the foundation of the company.
• Raman Spectrophotometer: The technology used to test raw materials.
This technology helps testing in the shortest time interval with high
accuracy.
• GSK urges suppliers to comply with it’s quality standards.
• A major part of controlling is that the awareness workshops are executed
in local language across Pakistan.
• Shortage and warehousing standards need to be according to GSK
standards.
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21.  Commercial trade channel
GSK’s vision to develop a commercial value chain that works efficiently and
improves patient access to quality medicines. The priority of the commercial
trade channel team is to ensure that high quality products reach their
patients.
• CTC Teams: They are responsible for the continuous availability of
medicines in different districts across towns and rural areas.
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22. THANK YOU!22