Issues Facing Glaxosmithkline in the Implementation of Business Strategies - Example

Issues facing GlaxoSmithKline in the implementation of business strategies. Name Course Lecturer Date INTRODUCTION The report entails the issues that face the implementation of the business strategies that are set forth by the company so as to achieve its goals and objectives. The reason behind the assessment is so as to see if there are better methods in achieving the same goal or reinforcing the same ones with more pressure so as to increase the turnovers (Chenhall & Langfield-Smith 1998). The method used to get the finding is mostly online research especially from the company’s website, other sites and a few books on strategic planning. FINDINGS GlaxoSmithKline’s mission is to better the health of all people thus making the world a better place. Their aims are focused on their strategic objective which is to grow a diversified global business by delivering better valued products to the market hence simplifying the operational model. By doing that the company will increase its growth, reduce risk and improve long term performance (Langfield-Smith, 1997). Despite the company having good strategies, implementing them has become hard due to numerous issues arising for example government requirements on the reinventing the research and development sector of the companies in terms of doing more clinical trials on a drug and seeking its approval before it hits the market (Abu-Kasim & Minai, 2009). Best selling drugs are coming off patent to the market but later taken out the market due to safety reasons hence the shortfalls in their profits. For example in this company due to the shortfalls when it comes to patent drugs they have resulted to making some generic drugs to cover their losses. Also in running of tests to make sure they are safe an approved it costs them money but a lot is wasted on research and trials hence or no profits (Sim & Teoh, 1997). Since the need to reinvent the research and development sector the company resulted to expanding its markets to the world to increase profits of the approved drugs, also overflowed the markets with generic drugs and biosimilars to counter their losses and lastly by migrating into new product categories. These 3 planning techniques have helped to curb or lessen the companies’ losses (Sim &Teoh, 1997). The planning techniques the company has used to achieve all its objectives, sustain growth and also increase productivity in the research and development sector since the sector need refurbishing of some sort and also be to code with the FDA approval. Also by forming alliances with other pharmaceuticals thus buying revenues has helped in sharing of costs in research and production and also finding new drugs. For example GSK struck a deal with Dr. Reddy (Indian generic pharmaceuticals) which gives them access to the portfolio and its supply chain. Its expansion to other countries has also helped in sustaining its growth and profits. For example GSK has expanded to Kenya and their products have been received well in that country thus being the best top selling pharmaceutical supplier. METHODOLOGY The research will utilize company’s information that is available in its website as well as secondary sources which have elaborated on the topic RECOMMENDATIONS Despite having problems with their patent drugs distribution due to the FDA reports of safety, they still should invest in creating one by identifying a promising blockbuster drug, conducting clinical trials and if deemed to be successful promoting the drug to the global market the costs of such breakthroughs exceeds 1billion pounds thus taking longer but still it is possible. Also, investing more on the approved patent drugs by direct-customer advertising and making them more accessible to the market will increase the profits. Investing more on product diversification in that instead of making drugs for humans they can also make for animals it is now a good ready market that needs to be tapped on. Despite there being efforts to enter the market they need to invest more in it. To: CEO, CathKidston, Subject: Review of possible strategies for growth of CathKidston From: Date: A REPORT ON THE AUDITING OF CATH KIDSTON COMPANY INTRODUCTION The report was written and researched conducted so as to know if the company is a good investment. And from the assessment I have conducted the company is a good investment for anyone to be a part of as you will read the findings below. FINDINGS The company has tried to market itself to the global scene using catalogues and emails to communicate with clients but has got good results from the annual sales especially the international sales are at 50% and also profit margins are as high as 24% worldwide. The product value and position in the market is good in that the commodity is being received well by the public hence the massive turnovers in profits. For a company that was founded in 1993 has grown over time even though in a slow rate but with the right marketing strategy for example using other modes of advertisement and investing more to get the word out. Products designed in the company are targeted to mostly women since it all about floral prints and home furnishings. And as the CEO said “One in four women owns something from CathKidston today and we've got a very loyal customer base. We obviously want those people to keep buying from us, but we also know there are still three out of four women who haven't shopped with us," (the guardian) The PESTLE and SWOT analysis proved that the company was in good since having one of its manufacturers in Shanghai means cost of production thus less money used in manufacturing and the threats which are the company’s competitors but by diversifying their products and having a good marketing strategy the company will survive and be stable. Through its merger with TA Associates in 2010 which gave them 60% of the company, the stakeholders have helped in the e1xpansion thus taking the company to the next stage especially overseas and took them to the next level to open new stores in UK, China, Japan, Korea etc. And through that expansion thus the immense profits especially the Asian market the home furnishings sold with a boom. METHODOLOGY The methods used in acquiring the data was mostly online research and the case study preview that was in the assignment papers. RECOMMENDATION Expanding further to other countries and outlet supply chains plus also have more than two flag posts (UK and Shanghai) so as to increase productivity in the company hence more profits. Marketing the brand and products more vastly and in all modes of advertising to attract even new customers for examples online marketing using the social networks to localize and also get the word out about the product. Diversifying the commodities to suit both genders or making the brand more of a family name thus fetching more customers other than just women. For example make a line for male furnishings or man purses. Going with the trends of fashion is what her type of marketing should be about. REFERENCES Abu-Kasim, N.A. and Minai, B. (2009). Linking CRM strategy, Customer performance measures, and performance in Hotel Industry. International Journal of Economics and Management, 3(2), 297-316. Chenhall, R. H., and Langfield-Smith, K. (1998). Relationship between strategic priorities, management techniques and management accounting: an empirical investigation using a systems approach. Accounting, Organizations and Society, 61:243-264 Langfield-Smith, K. (1997). Management Control Systems and Strategy: A Critical Review. Accounting, Organizations and Society, 22(2):207-232 Sim, A. B., and Teoh, H. Y. (1997). Relationships between business strategy, environment and controls: a three country study. Journal of Applied Business Research, 13(4):57-124. Read More