Restructuring in business portfolio or its financing - Essay Example

This company has more than 70 establishments in more than 150 countries worldwide. (gsk.com, 2009) The restructuring of the company’s portfolio or capital structure can be attributed to the strategic priorities it seeks to undertake. As of 2008, the CEO of this company, Andrew Witty, stated that the GlaxoSmithKline Company had three main strategic priorities. The aim of these was to achieve sturdy growth rates, reduce the level of risk as well as improve the performance (financially) in the long-term operations of the business.

According to the CEO, the industry of pharmaceuticals is set to encounter big challenges since there will be an unpredicted number that will lose their patent protection. This, thus, will call for the company to work even harder to fulfill the client demand for brand new types of medicines and those which are better to use. As he states it, the loss of patenting will lead to a number of payers wanting an apt cost-effective kind of healthcare. This pharmaceutical company is therefore setting out to improve the consumers and patients’ lives, which is in line with the shareholders’ requirements.

He did not go without noting that the industry is faced with a lot of risk and a lower rate of growth to counter the same. Therefore, the companies in context need to seek greater levels of return from their R&D investments. Unique to the expansion of the GlaxoSmithKline Company is its balanced healthcare business-group as well as an overall lesser profile of risks. The aim is, thus, to ensure a better level of discipline in the provision of capital components across the various areas of the company’s businesses.

This company has a future goal of generating sales revenue growth by way of supplementing strength focused on the main small-molecule business of pharmaceuticals. This will also be through new investments in the vaccines area, which is considered to be fast growing, and also the