A presentation on ........Impact of globalisation process using "GlaxoSmithKline" as a case study

PRESENTED BY 1. DIPEOLU IBRAHIM - S120045852. SABIHA AHMED - S120055043. MITHUN CHAKRAVORTY - S120044884. ITTIRACHEN BABY - S12004682

DEFINITION OF GLOBALISATION AND ITS FACTORS

What is globalisation It is defined as a process that refers to the growth of inter-dependencies between national markets and industries on a world wide scale ( Brooks et al, 2011)

Factors of Globalisation Political forces (Reduction of trade barriers, Development of trade blocs, Technical standard) Technological forces (Transport revolution, Information & communication revolution) Economic forces (Increasing incomes, integration of financial markets, Global competition) Social forces (Consumerism, convergence in customer tastes) ( Brooks et al, 2011)

Drivers of Globalisation Cost Competitiveness Government Market (Yip G.S., 2003)

CONSUMER PRODUCTS

PHAMACEUTICAL PRODUCTS

VACCINE PRODUCTS

Brief History of GlaxoSmithKline

Started operation on 1st January 2001 following merger of Glaxowellcome Plc and SmithKline Beecham PlcOperates in more than 150 countries86 manufacturing sites in 36 countriesResearch and Development in the UK, USA, Spain, Belgium and ChinaFirst phamaceuticals company to sign up to the ALLTrials campaign for research transparency.Business is divided into three main segments; Phamaceutical, Vaccines, Consumer (http://www.gsk.com/en-gb/about-us/)

REGIONAFRICAASIA &THE MIDDLE EASTAUTRALASIAEUROPENORTH AMERICASOUTH AND CENTRAL AMERICA (http://www.gsk.com/en-gb/about-us/)

BRIEF HISTORY OF GLAXOSMITHKLINE

GLOBAL EXPLORATION OF GlaxoSmithKline

• Access mass market

• To maintain economies of scale within the company

• Access to resources (Highly skilled/low cost labor)

• Access to finance & tax savings

• Use of competitive advantage such as "product differentiation" and "cost leadership" over competitors through FDI

( Brooks et al, 2011)

COMPARATIVE ENVIRONMENTAL FRAMEWORKS OF GlaxoSmithKline

•

1. Political Political instabilityInappropriate treatment of foreign investors

2. EconomicMarket-driven economy- Characterised by private ownershipCentrally determined economy-Characterised by public ownership

3. CulturalDifferent cultural backgroundReligious beliefEducation

4. Societal EnvironmentSocial groupFamilyLifestyle

5. Legal EnvironmentNational lawRegional lawCompany law

(Rugman & Collinson, 2012)

COMPETITORS AND COMPETITIVE ADVANTAGE

COMPETITIVE ADVANTAGE PRODUCT DIFFERENTIATION COST LEADERSHIP SPECIALISATION

COMPETITORS PFIZER NOVARTIS

( Brooks et al, 2011)

REGIONALISATION

Integration and coordination of marketing programme within regions but not across them

LOCALISATION

Promoting international brand in local market (think global, act local)

Be culturally sensitive to the local populace through products, services, marketing and advertising.

Investing in R&D to produce product that fits specific needs of that market.

(Hollensen, 2011)

GLAXOSMITHKLINE

YEAR SALES(£) 2013 26.51B 2012 26.43B 2011 27.39B

PFIZER

YEAR SALES($) 2013 9.6M 2012 3.9M 2011 2.3M

NOVARTIS

YEAR SALES (€) 2013 40.2M 2012 39.7M 2011 48.4M

COMPARATIVE FINANCIAL PERFORMANCE

www.gsk.com www.pfizer.com www.novartis.com

ETHICAL ISSUES

Consumer sovereignty (product information) Developing sense of community Societal commitment & obligations Protection of internationally proclaimed

human rights Business should uphold effective abolition of

child labour Business should work against corruption in all

its forms, including extortion & Bribery Climate change: The green house effect

(Sullivan et al, 2012)

IMPACT ON ENVIRONMENT AND SUSTAINABILITY

"Our goal was twofold: to build a strong infrastructure; and to serve the rural community by enhancing awareness on health and nutrition in these markets, thereby building a more sustainable business".

Our long term goal is to be carbon-neutral across our value chain by 2050.

To reduce our water impact, we are exploring ways to reduce water use across our value chain.

We have committed to reinvest 20% of our profits back in to improving the healthcare infrastructure in the world’s Least Developed Countries.

We aim to make a difference to communities through economic contribution, investment, education programmes and partnerships. In 2013 we invested £221 million in communities around the world.www.gsk.com/responsibility

It is important to conclude that being a science-led global healthcare company, GSK has used that opportunity to improve the health and well-being of millions of people around the world through investment in R&D and collaborative efforts with other healthcare stakeholders. Also, efforts are being made to improve access to GSK products irrespective of where people live or their ability to pay in order to control or eliminate diseases affecting the world’s most vulnerable people.

This led us to the quote of one of the famous world leaders, Winston Churchill.

CONCLUSION

ReferencesAlan M. Rugman, Simon Collison, 2012. International Business. 6th ed. England. Pearson Graham J. Hooley, Nigel Piercy and Brigitte Nicouland, 2008. Marketing strategy and competitive positioning. 4th ed. England. Pearson Ian Brooks, Jamie Weatherston and Graham Wilkinson, 2011. The International Business Environment: Challenges and Changes. 2nd ed. England. Pearson Patrick O’ Sullivan, Mark Smith and Mark Esposito, 2012. Business Ethics: A critical approach; integrating ethics across the business world. Routledge. U.S.A Peg Tittle, 2000. Ethical issues in business: Inquiries, Cases, and Readings. Canada. Broadview Press Ltd. Steven Hollenson, 2011. Global Marketing: A decision-oriented approach. 7 th ed. England. Pearson Yip George.S., 2003. Total Global Strategy II. 2nd ed. England. Pearson. www.gsk.com/en-gb/about-us/ www.gsk.com/responsibility www.image-blog.phamexec.com

www.pfizer .com

www.novartis.com