Glaxo Smithkline Essay

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Introduction Glaxo SmithKline plc (GSK) is a world famous pharmaceutical, biologics, vaccines and consumer healthcare company. It was established by combined the Glaxo Wellcome Company and Smith Kline Beecham Company in December 2000. It headquartered in the UK, and accounted for nearly 7% of market share in the global pharmaceuticals market. However, due to its illegal promotion of prescription drugs, GSK had been criminal charged by Chinese authorities in July 2013. Then, this report will analyse the case thought its external environment, and give some evaluation on its business response. Case study overview In July 2003, according to relevance investigations, Chinese authorities announced that the senior executives of GSK have paid nearly 3 billion Yuan (HK$3.8billion) to more than 700 travel agencies and consulting firms to facilitate bribes over a six-year period (Anderlini and Jack 2013). And four senior executives of GSK Chinese Company had been taken criminal compulsory measures by police on suspicion of economic crimes. Then, GSK issued a statement on its official website saying, they are disappointed deeply for some individuals’ unethical actions at company and third-party agencies and these serious allegations of fraudulent behaviour. They will co-operate with the Chinese authorities’ following investigation as well. Meanwhile, they will start an internal investigation of their own (GSK 2013). In July, GSK admitted that some of its senior Chinese executives broke the law. Critical analysis of the external environment using the PESTLE framework According to Witcher and Chau (2010), the PESTEL framework is a “mnemonic used in strategic management to group macro-environment factors to help strategists look for sources of general opportunity and risks”. By analyses the external business environment, the PESTEL framework help organization to understand

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