GlaxoSmithKline (GSK) Case Study - Management Assignment Help

Assignment Task:

Introduction

Company Overview
GlaxoSmithKline (GSK) incorporated on December 6, 1999 is one of the world’s largest research-based pharmaceutical companies that that discovers, develops, manufactures and markets human health products. It is an innovative company that produces branded products only, which it has created itself. The company operates in two main divisions, pharmaceuticals and consumer healthcare. The consumer healthcare businesses of GSK consist of over-the-counter (OTC) medicines, oral care products, such as the toothpaste brands Aquafresh, Macleans and Sensodyne, and nutritional healthcare drinks. The pharmaceuticals division is the largest part of GSK’s businesses and can be divided into prescription drugs and vaccines (Weyzig, 2004).
In 1998, the merger between the two top British drug companies seemed virtually complete with Glaxo Wellcome shareholders having 59.5 per cent of the new group, leaving 40.5 per cent to SmithKline Beecham (SB) shareholders. With a market capitalisation of US$110bn, the deal would create the biggest pharmaceutical company and the world’s third biggest corporation. During the mid-1970s, Glaxo was a small British firm with its origins in the dried milk business and had most of its sales in antibiotics, respiratory drugs and nutritional supplements. During the 1980s Glaxo grew organically and rapidly thanks to the commercial success of its R&D efforts. By 1994 Glaxo had reached the top industry position in sales as they totalled £5,656 million or 3.6 per cent of the world market with earnings emerging from a strong presence in Europe and the US (Batiz-Lazo, 2004).
 

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