HR7002 Organisational Behaviour And Global Strategy Assignment Sample 2023
1. Introduction
The organization, GlaxoSmithKline is a biopharma company as the company has global business and the headquarters are located in London, UK. The company is famous for research on medical or pharmaceutical products as it innovates, develops, manufactures and supplies human health products all over the world. In August, GSK and Pfizer Consumer Healthcare had an agreement on a joint venture with a 68% stake in consumer health products (fiercepharma, 2022).
Total assets of the GSK is £79.103 billion by 2021 data collection and the revenue of the company is 24,507 million from Pharmaceutical and vaccine and 9,607 million from Consumer Healthcare and British pounds by 2022. The company’s present employee numbers are 94,000.
Figure 1: revenue earned by GSK from 2006 – 2022
(Source: Stastista.com, 2022)
Mission and Vision and Values of GlaxoSmithKline (GSK)
Mission
The company’s mission is to help feel as if it can contribute through its research and development and make the patients or people better with longer life.
Vision
The company has its vision to make an opportunity for millions of people by making different types of products in their everyday life.
Values
The values of the company are to focus on patients by giving respect to everyone and can make integrity with patients’ focus.
Aims and objective
GSK has the power to make success with the help of its customers as its strategies are exceptional and have three types of a strategic plans aiming for growth of the company and improving long-term financial support by reducing risks.
2. Critically Analyse the strategy of the company
One of the biggest consumer healthcare companies in the world is “GlaxoSmithKline plc.”. This organisation mainly follows three strategic pathways to grow and enhance the financial sector along with reducing risk. The focus is on delivering more “products of value”, “growing a balanced global business”, and “simplifying the operating model”.
GSK maintains the global commercial structure to develop a single commercial center in London for managing the business in Europe, Japan, and Asia Pacific markets.
2.1 Analysis of the organisation’s strategy by strategic model
Blue Ocean Strategy model
The “Blue Ocean Strategy” helps an organisation like GSK to make its new demand in an uncompetitive market space. GSK has explored new market spaces that are not competitive or used by other businesses or industries yet. It altered its rules by following this particular strategy and successfully removed the irrelevant and unimportant competition (Barber et al. 2019). It has achieved growth in its performance as well as financial profits by adopting the broader framework of the “Blue Ocean Strategy”.
GlaxoSmithKline plc. also adopts the “Red Ocean Strategy” based on the nature of the product and business market spaces.
| Red ocean strategy | Blue ocean strategy |
| Defined the industrial boundary by competing with the existing market areas. | Redefined the industrial boundary by exploring a new market area that is not competitive. |
| “Value-cost-trade-off” is made by the organisation. | “Value-cost-trade-off” is broken by the organisation. |
| A specific direction was chosen by GSK for differentiation through low cost and related strategic activities. | The activity of differentiation is being continued and new, innovative demands have been formed by GSK. |
SWOT analysis
The strengths, weaknesses, opportunities, and threats of a particular company like GSk can be identified and explored through SWOT analysis.
| Strength
● GSK has a strong Research and Development team. ● This company has expanded its sales and distribution network globally ● (Sadik, 2020). ● It maintains good customer relationships. ● It provides its workers with proper training along with career growth. |
Weakness
● GSK has been accused of illegal practice. ● Generic medicines and other products have been exposed in contesting market areas for the flagship. |
| Opportunity
● Acquisition and collaboration help GSK in its growth. ● Launching new products and new technologies are the best opportunities for GSK. ● In emerging nations, the demand for quality healthcare has been a great opportunity for GSK. |
Threats
● Pricing is controlled by the Government. ● Government regulations can restrict its sales. ● Competition with other companies. |
2.2 identify the competitive advantage
GSK has a certain competitive advantage for innovating patent-protected drugs and the next generation of medicines. A strong improvement in the area of oncology and rare disease has been reflected through GSK’s strategy of true innovation of new products. This company shifted its focus from the competitive or developed market area to the emerging area.
This strategy has some additional risk of legal violation but the developing emerging areas will help the company for its growth in the long term (Rizhamadze, 2020). GSK has pointed out more than 3 billion pounds in cost savings annually and successfully achieved by the year 2015 which helped the company to reduce the pricing pressure. The strong cash flow of GSK helped it to launch new products in emerging areas.
3. Significant event, challenge, transformation or merger of the organization
Every company faces challenges due to the merger of the company and the transformation of the company. The company has spread all over the world and transformed itself with a pipeline with higher risk and emphasized shifting from higher risk, higher margin to lower margin and higher volume in the pharmaceutical and vaccines products.
The challenges in transformation due to covid-19 have lots of transformation and that makes a remarkable solution in business transformation strategy and the digital transformation of technology (Lezaun, 2018). Innovative products and solutions to any disease by creating products and engagement strategy can transfer business with a new strategic vision by creating sustainable development. The changes in the business model in GSK to transformation have enormous challenges.
- The company has taken a strategy of “sustainable performance” through innovation and expansion in medicines and in vaccination at the time of the Covid-19 pandemic. The business model has changed and that makes more challenges for GSK in front of customers. The higher volume with low price model has been adopted by the GSK in developing countries and for developed countries, it has capped the prices on patented medicines. As recommended by Arshad and Shehzad, (2021), 25 % more prices are charged in developed countries.
- Transparency can reshape the earth or the world. The GSK has changed the sale and marketing strategy for products. Reps are introduced to reward their technical knowledge (Fuchs et al. 2022). The company has the practice to pay healthcare professionals and they have to speak about the patient’s interest which makes the patients confident and that is the most challenging task to believe in the products and services to get fitted.
- According to Light and Lexchin (2021), The partnership has increased and that makes the task more challenging when collaboration happens. The biggest challenge in healthcare is collaboration because every pharmaceutical company has its own mission and vision which makes it more challenging to think similarly.
- The collaboration has happened with the BSR to global partnership which saves the children (Amin, 2018). The mission is to help the world’s most vulnerable children with the help of NBGO by refunding them.
- The company has an innovative partnership with Barclays in Zambia to improve affordable healthcare products. As per the views of McComb et al. (2022), There are more poor or middle-class people in the world and that’s why the company has its mission to make lower price products with high effectiveness.
- The company also has a partnership with the Vodafone company and gives prop[er vaccination to every child in Mozambique.
- GSK has developed CureVac to make five vaccines based on mRNA and monoclonal antibodies (Kumar, 2019).
- Technological transformation is one of the major changes during the pandemic time with digitalization in the pharmaceutical company. As emphasized by Mackey and Cuomo (2020), The technological transformation has been done with digital data and analytics solutions. The problems arise with the transformation and adaptation skills with an agile way of working and the acceleration with a product-centric approach to delivery technology with the management process.
- Tagging the data with the metadata is a major challenge. Automation in tagging so that the data can be transferred to all the researchers at the same time (McComb et al. 2022). Metadata needs to be applied in layers of architecture which is the major challenge.
- The technical transformation is one of the major challenges that has been faced by GSK in that to access all the data to share globally and also the collection of data or storage are cost-effective. As suggested by Fuchs et al. (2022), R&D and supply chain have major concerns to change the strategy of GSK.
4. Strategy to manage challenges
i) Leadership Capabilities
The major challenges come in an organization to manage employees with good leadership qualities. The company, GSK follows Transformational leadership (visionary) as it has adopted change within the individuals and social system (Asbari et al. 2020). Positive changes are the main goal to be seen by leaders by creating value. Transformational motivate employees by giving moral values to the company.
Transformational leadership has a high expectancy in setting clear and consistent goals. It encourages others and influences others to have charisma. As considered by Purwanto et al. (2020), The leadership style also inspires employees to take on challenges so that growth can happen in the work. In the pharmaceutical company, challenges are required to make innovative things in continuous ways. Leaders also encourage other members beyond their group to increase their self-interest for the betterment of the organization.
ii) Communications
The communication model followed the communication process, thoughts, ideas and concepts through diagrams. It can help to understand verbal communication and non-verbal communication and paraverbal communication. The “interactive communication model” helps to interact with people with one another (Subandi et al. 2018). One-to-one communication has massive impacts as the solution and discussion are needed in the pharmaceutical company to snake innovative products.
This communication process is a two-way process by which feedback from another person’s comments comes. As recommended by Kaczorowska (2018), Encoding and decoding processes are circulation forms in which if one person sends a message then another person receives the message.
Then another person sends feedback by his or her own evaluation and analysis that time he or she is the encoder and another person decoders. Group discussion with a small community is required or one-to-one communication needs in the GSK like pharmaceutical companies by giving priority to the medicine.
iii) Organizational culture
Kevan Scholes and Gerry Johnson to approach or evaluate the paradigm within the company introduce cultural web models. The cultural models investigate the various aspects and important decisions to manage the organization. This model helps to influence people to reach out for the right things in the organization (Cooper et al. 2019).
Organizational culture helps in the story making, making symbols, and helps in the power structure. The organizational structure control system in the organization with the term Cultural Web. Rituals and routines are needed to be maintained in an organization so that a company can make better products.
GSK follows this model because it inspires people to think better and faster. Cultural adoption and assumption with practice can change the culture. As considered by Ullah, (2021), Plan is required in the organization to provide the best opportunities to the employees so that they can influence and feel good. Employee satisfaction is important in the organization so that research can be better in the pharmaceutical company as this is a very serious process as one mistake can harm people’s lives.
5. Organization’s strategy impacted the management
The organizational strategy needs to be changed because of effective productivity and the main reason behind this is to overcome the challenges. Change in strategy also impacted the management department because in the management department all strategies have to be established with new strategies and have to adopt techniques.
The change management model has been adopted by GSK as it needs to change concepts, theories, and methodologies. The navigation transformation process ensures the changes by analyzing the problem which can be faced by the organization. Change management processes help to make changes in the frame design of strategies, and the strategies need to be easy.
Lewin’s Change Management Model
Lewin’s Change Management Model has been developed in three phases or processes unfreeze, change, and refreeze.
Unfreeze
The organization first needs to unfreeze the existing process or strategy to adopt or implement a new strategy. The Existing strategies have to be analysed first as their effect or not, then the strategy needs to be changed by knowing the drawback of existing strategies. Existing strategies’ weaknesses need to be noted so that new strategies can be implemented properly by choosing effective strategies (Bashori et al. 2020). The organization has to inform the employees also about the changes before changing and their opinions also matter.
Change
Unfreezing existing on requires strategy changes and then the new strategy can be applied. Two types of strategy cannot be run along with the existing one. Employee feedback can give a solution and that can motivate organizations which could be easier and more effective because the work will be done by employees.
Refreeze
Strong opinions and knowledge need to be gained to implement new strategies. As emphasized by Rosenbaum et al. (2018), throughout the transition process the employers need to be aware and trained about the strategy. The overall strategy also needs to be given to the management department first to implement the strategy so that they may not face any problems.
A long period needs to overcome by proper training so that the new strategy can be implemented with good motivation and knowledge and then refreeze the new strategy quo.
Figure 2: Lewin’s change management model
(Source: prepared by learner)
Justification
Unfreeze preparing for desired changes and that help to implement desired changes and Refreeze Solidify it. “Lewin’s Change Management Model” involves changes over a long period because the frequent change in strategy can hamper productivity. Strong support is required first from the management department, which will provide training in further.
The organizations such as pharmaceutical organizations are required to adopt management models because the long-term strategy needs to be adopted as these firms are crucial for people’s lives. Frequent changes can hamper their life.
6. The impact of the challenge on the organization’s strategy
The impact on organizations has faced challenges, which were managed by the organization by focusing on culture, leadership, and human relationship aspects.
Cultural management
The main problems faced by GSK are collaborating with many organizations or making partnerships, so the different opinions or strategies were in between their employees. As considered by Ullah, (2021), Cultural collaboration is important between employees. Good collaboration can overcome the challenges in front of the GSK organization. Communication is also important in the organization so that the thinking of other colleagues or employees can be discussed to form an effective organization.
Make employees happier and can enhance the culture of the organization and help to influence maintain the rules and regulations in the company. Clear vision needs to be clear because the guidance needs a proper strategy so that employees can understand the strategy.
Leadership management
The leader needs to be proactive to manage the challenges as in any difficult situation a leader needs to be handled with good leadership quality. Employees can suffer from any type of difficulty or any kind of risk. The employees get nervous but a leader can save them from the problem. The leaders have to be creative to face challenges and have to mitigate the changes. Creative things can be effective in unexpected ways (Asbari et al. 2020).
The operational strategy or dealing would be done with a good strategy. The leaders have to deal with conflict to solve the problem with good approaches. Conflict can happen by different opinions in the group and that can be solved by leaders, so a leader can mitigate the challenge as the partnership has done by GSK in the organization with different projects. A good leader can handle or manage the internal and external team control in the organization by retaining objectives.
Human Relationship management
Organizations have to develop Human Resource Management by selecting human resources. The important things are to understand the necessary skills because proper ideas can help to face challenges by implementing ideas. Leading and organising a team is important because effective human resource management can solve internal and external issues. Encourage participants so that everyone gets interested in taking risks and help to motivate people.
Feedback can help Human Resource Management because other opinions and discussions are valuable in the organization. Recruitment also needs to be done with a proper selection process and retention and motivation can help to communicate well in the team. Team collaboration increases due to which effective functions are developed (Deb et al. 2018).
The open-door policy needs to be adopted by the organization so that the employee can freely discuss it. The discussion can solve their anxiety and issues with the employees. Unfair expectancy can be solved because organizations cannot solve high expectations which are beyond the rules.
7. Conclusion
The research has evaluated the GSK company’s challenges to manage the strategy and internal management process. The mission, Vision and Values of GlaxoSmithKline have described that it has a main focus on the quality of products with low prices to serve the products to every needy person by increasing profit in the organization.
The covid-19 has lots of impacts on the organization as the covid-19 takes challenges that are overcome by the organization by using transformational models in the business. The organization has transformed different things by implementing digital transformation processes and taking transformational strategies.
The challenges need to be managed so that the risk may be reduced, so the company has adopted the leadership model, communication model and organizational cultural model so that the company can get the best benefits by making a proper plan. GSK inspires its employees by changing organizational culture to make it better and faster.
The communication model needs to be used to avoid the challenges of the interactive communication process. Feedback is necessary by providing a message to a small team or group. The small group or team has been selected because of effective communication so that everyone gets the chance to share their points of view.
Leadership quality also needs to be changed by adopting transformational leadership models as the strategy in leadership capabilities is changed frequently. Changes in strategy can impact management and the challenges need to be taken to overcome the problem.
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Websites:
India-consumer.gsk.com , 2022, viewed on 22nd August, 2022, https://india-consumer.gsk.com/en-in/about-gsk-consumer-healthcare/our-mission-and-strategy/#:~:text=The%20business%20is%20focused%20around,and%20simplify%20the%20operating%20model.
fiercepharma.com, 2022, viewed on 22nd August, 2022, https://www.fiercepharma.com/marketing/glaxosmithkline-consolidates-pfizer-consumer-brands-planning-and-buying-publicis-media
statista.com, 2022, viewed on 22nd August, 2022, https://www.statista.com/statistics/266311/glaxosmithklines-revenue-by-division-since-2006/
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