gsk

AN ORGANIZATION STUDY

CHAPTER – I

COMPANY PROFILE

BANGALORE INSITUTE OF MANAGEMENT STUDIES


1.1 INTRODUCTION OF ORGANIZATION

GSK is one of the few pharmaceutical companies researching both medicines and vaccines for

the World Health Organization’s three priority diseases – HIV/AIDS, tuberculosis and malaria,

and are very proud to have developed some of the leading global medicines in these fields.

Headquartered in the UK and with operations based in the US, GSK is one of the industry

leaders, with an estimated seven per cent of the world's pharmaceutical market.

But being a leader brings responsibility. This means that GSK care about the impact that it’s

have on the people and places touched by our mission to improve health around the world.

It also means that GSK must help developing countries where debilitating disease affects

millions of people and access to life-changing medicines and vaccines is a problem. To meet this

challenge, we are committed to providing discount medicines where they are needed the most.

As a company with a firm foundation in science, GSK have a flair for research and a track record

of turning that research into powerful, marketable drugs. Every hour GSK spend more than

£300,000 (US$562,000) to find new medicines.

GSK produce medicines that treat six major disease areas – asthma, virus control, infections,

mental health, diabetes and digestive conditions. In addition, GSK is a leader in the important

area of vaccines and is developing new treatments for cancer.

GSK also market other products, many of which are among the market leaders:

Over-the-counter (OTC) medicines including Gaviscon and Panadol

Dental products such as Aquafresh and Macleans

Smoking control products Nicorette/Niquitin

Nutritional healthcare drinks such as Lucozade, Ribena and Horlicks

BANGALORE INSITUTE OF MANAGEMENT STUDY


1.2 GSK’S WORLDWIDE MAP

GSK WORLDWIDE

EUROPE

United Kingdom Cyprus Iceland Netherlands Spain

Albania Czech Republic Ireland Norway Sweden

Austria Denmark Italy Poland Switzerland

Armenia Estonia Kazakhstan Portugal Ukraine

Belarus Finland Latvia Romania

Belgium France Lithuania Russia

Bosnia Herzegovina Germany Macedonia Serbia

Bulgaria Greece Malta Slovakia

Croatia Hungary Moldova Slovenia

NORTH AMERICA


http://www.glaxosmithkline.hr/

http://www.gsk.bg/

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http://www.gsk.be/

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http://www.glaxosmithkline.dk/

http://www.glaxosmithkline.at/

http://www.gsk.cz/

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mhtml:file://E:%5CRekha%5Cprojects%5C1st%20year%20project%5Cim%20web%20page%5CGSK%20Worldwide%20-%20GlaxoSmithKline.mht!/worldwide/cy.htm

mhtml:file://E:%5CRekha%5Cprojects%5C1st%20year%20project%5Cim%20web%20page%5CGSK%20Worldwide%20-%20GlaxoSmithKline.mht!/worldwide/uk.htm


United States Canada Mexico

CENTRAL AND SOUTH AMERICA

Argentina Costa Rica Honduras Uruguay

Brazil Ecuador Nicaragua Venezuela

Chile El Salvador Panama

Colombia Guatemala Peru

CARIBBEAN

Dominican Republic Jamaica Trinidad

ASIA AND AUSTRALASIA

Australia Hong Kong New Zealand Uzbekistan

Azerbaijan India Pakistan

Bangladesh Japan Sri Lanka

China Korea Taiwan

SOUTHEAST ASIA

Cambodia Malaysia Philippines Thailand

Indonesia Myanmar Singapore Vietnam

AFRICA

Algeria Morocco South Africa

Kenya Nigeria

MIDDLE EAST

Egypt Israel Saudi Arabia Turkey


http://www.gsk.com.tr/

http://www.gsk.com.ph/

http://gsk.com.my/

http://www.gsk.tw/

http://www.gskkorea.co.kr/

http://www.gsk-china.com/

http://glaxosmithkline.co.jp/

http://www.gsk.com.pk/

http://gsk.co.nz/

http://www.gsk.com.hk/

http://www.gsk.com.au/

http://www.gsk.com.co/

http://www.gsk.cl/

http://www.gsk.com.br/

http://www.glaxosmithkline.com.ar/

http://www.gsk.com.mx/

http://www.gsk.ca/

http://us.gsk.com/


1.3 INTRODUCTION OF THE COMPANY IN INDIA

Established in the year 1924 in India GlaxoSmithKline Pharmaceuticals Ltd. (GSK Rx India) is

one of the oldest pharmaceuticals company and employs over 3500 people. Globally, we are a

USD 42 billion, leading, research-based healthcare and pharmaceutical company. In India, we

are one of the market leaders with a turnover of Rs. 1500 crore and a share of 6.2 per cent*.

The GSK India product portfolio includes prescription medicines and vaccines. Our prescription

medicines range across therapeutic areas such as anti-infectives, dermatology, gynaecology,

diabetes, cardiovascular disease and respiratory diseases. The company is the market leader in

most of the therapeutic categories in which it operates. GSK also offers a range of vaccines, for

the prevention of hepatitis A, hepatitis B, invasive disease caused by H, influenzae, chickenpox,

diphtheria, pertussis, tetanus and others.

With opportunities in India opening up, GSK India is aligning itself with the parent company in

areas such as clinical trials, clinical data management, global pack management, sourcing raw

material and support for business processes including analytics.

GSK’s best-in-class field force, backed by a nation-wide network of stockists, ensures that the

Company’s products are readily available across the nation. GSK has two manufacturing units in

India, located at Nashik and Thane as well as a clinical development centre in Bangalore. The

state of art plant at Nashik makes formulations while bulk drugs are manufactured at Thane.

Being a leader brings responsibility towards the communities in which we operate. At GSK we

have a Corporate Social Responsibility program, that works towards fulfilling basic healthcare,

education and other developmental needs of 15 tribal villages near Nashik. We work with

underprivileged children from the slums of Mumbai, taking care of their developmental and

health needs. GSK also runs an HIV/AIDS helpline - considered to be a pioneering effort in

India that supports those in distress and despair.

GSK is committed to developing new and effective healthcare solutions. The values on which

the group was founded have always inspired growth and will continue to do so in times to come.



1.4 GSK AT A GLANCE

GSK mission is to improve the quality of human life by enabling people to do more,

feel better and live longer

GSK are a research-based pharmaceutical company

GSK are committed to tackling the three "priority" diseases identified by the World

Health Organization: HIV/AIDS, tuberculosis and malaria

GSK business employs around 100,000 people in over 100 countries

GSK make almost four billion packs of medicines and healthcare products every year

Over 15,000 people work in GSK research teams to discover new medicines

GSK screen about 65 million compounds every year in our search for new medicines

GSK supply one quarter of the world's vaccines and by the end of February 2008 we

had 24 vaccines in clinical development

January 2008 marked the tenth anniversary of our program to help eliminate lymphatic

filariasis (elephantiasis). During those ten years we donated 750 million albendazole

tablets, reaching over 130 million people

In 2007 we marked 15 years of our Positive Action programme that helps communities

living with HIV/AIDS

In the developing world, we provide certain medicines at preferential prices ensuring

that the poorest can still benefit from our treatments and vaccines

In 2007, our total community investment was valued at £282 million, equivalent to 3.8

per cent of Group total profit before tax

Many of our consumer brands are household names: Ribena, Horlicks, Lucozade,

Aquafresh, Sensodyne, Panadol, Tums, Zovirax.



1.5 HISTORY 0F THE COMPANY

GSK company has a rich history that goes back to the early eighteenth century.

1700-1799

1715

Plough Court pharmacy, the forerunner of Allen and Hanburys Ltd, is established in London by Silvanus Bevan.

1800-1849

1830

John K Smith opens his first drugstore in Philadelphia. John's younger brother, George, joins him in 1841 to form John K Smith & Co.

1850-1899

1859

Beecham opens the world's first factory to be built solely for making medicines at St Helens in England.

1865

Mahlon Kline joins Smith and Shoemaker - as John K Smith and Co had become - as a bookkeeper

1873

Joseph Nathan, who left the UK to seek new business opportunities 20 years before, establishes a general trading company at Wellington in New Zealand - Joseph Nathan and Co - the foundation for the Glaxo company to be formed later.

1880

Burroughs Wellcome & Company is established in London by American pharmacists Henry Wellcome and Silas Burroughs, four years after Joseph Nathan opened a London office.



1884

Tabloid is registered as a Burroughs Wellcome and Company trademark to describe its compressed tablets.

1885

Thomas Beecham's company acquires headquarters on the corner of Silver Street and Water Street, St Helens, England. Two years later, the company's new factory in St Helens becomes the first in the area to have electricity

1900-1949

1902

The Wellcome Tropical Research Laboratories open

1906

Glaxo is registered by Joseph Nathan and Co as a trademark for dried milk. A Burroughs Wellcome subsidiary is created in New York.

1908

The Glaxo department of Joseph Nathan and Co opens in London and the first "baby book" is published.

1913

Production of Beecham's Pills laxative reaches one million a day.

1919

Alex C Maclean establishes Macleans Ltd, manufacturing own-name products for chemists. Mahlon Kline begins the novel practice of sending pharmaceutical samples through the mail to doctors across the US.

1945

Beecham Group Ltd is established, replacing Beecham Pills Ltd and Beecham Estates Ltd - later known as Beecham Group plc - and incorporates Beecham Research Laboratories.



1947

Glaxo Laboratories Ltd absorbs the Joseph Nathan company and becomes the parent company. Glaxo is listed on the London Stock Exchange. New Beecham laboratories are established at Brockham Park in Surrey, England.

1950-1999

1958

Glaxo acquires Allen and Hanburys Ltd.

1959

The Wellcome Foundation acquires Cooper, McDougall and Robertson Ltd, an animal health company founded in 1843.

1970

Burroughs Wellcome Inc moves its production facility from New York to Greenville, North Carolina.

1978

Through the acquisition of Meyer Laboratories Inc, Glaxo's business in the US is started, to become Glaxo Inc from 1980.

1981

The anti-ulcer treatment Zantac (ranitidine) is launched by Glaxo and is to become the world's top-selling medicine by 1986.

1988

SmithKline BioScience Laboratories acquires one of its largest competitors, International Clinical Laboratories, Inc, increasing the company's size by half and establishing SmithKline BioScience Laboratories as the industry leader.

The Nobel Prize for medicine is awarded to George Hitchings and Gertrude Elion, of Burroughs Wellcome Inc, and to Sir James Black, who had worked at the Wellcome Foundation and Smith Kline and French Laboratories, "for their discoveries of important principles for drug treatment."



1998

SmithKline Beecham and the World Health Organization announce a collaboration to eliminate lymphatic filariasis (elephantiasis) by the year 2020. The largest pharmaceutical company in Poland is created with the acquisition of Polfa Poznan by Glaxo Wellcome.

2000+

2001

GlaxoSmithKline formed through the merger of Glaxo Wellcome and SmithKline Beecham.

1.6 DEVELOPMENT OF THE COMPANY

GlaxoSmithKline plc is a public limited company incorporated on 6th December 1999 under

English law. Its shares are listed on the London Stock Exchange and the New York Stock

Exchange. On 27th December 2000 the company acquired Glaxo Wellcome plc and SmithKline

Beecham plc, both English public limited companies, by way of a scheme of arrangement for the

merger of the two companies. Both Glaxo Wellcome and SmithKline Beecham were major

global healthcare businesses.

GSK plc and its subsidiary and associated undertakings constitute a major global healthcare

group engaged in the creation, discovery, development, manufacture and marketing of

pharmaceutical and consumer health-related products.

GSK has its corporate head office in London. It also has operational headquarters in Philadelphia

and Research Triangle Park, USA, and operations in some 114 countries, with products sold in

over 140 countries. The principal research and development (R&D) facilities are in the UK, the

USA, Belgium, Italy, Japan and Spain. Products are currently manufactured in some 38

countries. The major markets for the Group’s products are the USA, France, Japan, the UK,

Italy, Germany and Spain.



1.7 ORGANIZATION AWARDS

Business in the community award

Awards for diversity and our community work.

Corporate equality, US Human Rights Campaign Foundation

Best diversity company

Diversity and equal treatment

Business champion

Energy management through resilience and mental wellbeing

Most socially responsible company

Most family friendly company

Achieving significant milestones in leadership initiative

Global Super Achiever award

Excellence Through People standard

Supporting the local community

World-class health and safety excellence awards.

Gold H.E.A.L.T.H award

CEO cancer gold standard

Best employers for healthy lifestyle gold award

Unique workplace ergonomics

Helping employees recognize health and performance links

Awards for excellence 2007



1.8 PRODUCTS OF THE COMPANY

MEDICINES

GSK pharmaceutical products include treatments for asthma, HIV/AIDS, malaria, depression, migraine, diabetes, heart failure, digestive conditions and cancer.

GSK top selling products in 2007 are designed to treat:

Asthma , Epilepsy ,Diabetes , Herpes ,Migraine

LIST OF MEDICINES

Adartrel, Advair, Albenza, Alkeran, Altargo, Amerge, Amoxil, Andropatch, Anectine, Arixtra, Argatroban, Arixtra, Arranon, Atriance, Augmentine, Avandamet, Avandaryl, Avandia, Avodart, Axid

Bactroban, Becloforte, Becodisks, Beconase, Becatide, Betnovate, Benxor, Boniva

Ceftin, Cicatrin, Combivir, Coreg, Coreg CR, Cutivate

Daraprim, Dermovate, Dexedrine, Digibind, Doralese Tiltabs, Dyazide, DynaCirc CR

Efcortelan, Epivir, Epzicom, Eumavate

Flixonase, Flixotide, Flolan, Flonase, Flovent, Fortaz, Fortum

Hycamtin

Imigran, Imitrex, Imuran, Innopran XL, Integrilin

Kemadrin, Kivera

Lamictal, Lanaxin, Lanvis, Leukeran, Leniva, Liskonum, Lovaza



Malarone, Mepron, Mivacron, Myleran

Naramig, Nimbex

Otosporim,

Parnate, Panil, Pentostam, Puri-Nethal, Pylorid

Relafen, Relenza, Requip, Respontin, Retrovir, Rythmol, Rythmol SR

Septrin, Seretide, Serevent, Seroxat,

Tabloid, Tagament, Telzir, Timentin, Tracrium, Trenimet, Trimovate, Trizivir, Tykerb, Tyverb

Ultiva,

Valtrex, Ventodisks, Ventolin, Veramyst, Volibris, Volman,

Welbutrin, Welvone,

Zantac, Zeffix, Ziagen, Zinacef, Zinnat, Zafran, Zoviran, Zyban, Zyloric ETC.

VACCINES

GSK make over 30 vaccines that protect against a wide range of diseases including:

Cervical Cancer, Diphtheria ,Hepatitis A and B , Influenza Meningitis, Polio, Rotavirus,

Whooping Cough



LIST OF VACCINES

A C W Y Vax, Ambirix, Bootrix, Cerarix, Engerix, Fendrix, Fluarix, Flulaval, Havrix, Heptyrix,

Hiberix, Infanrix, Infanrix IPV, Infanrix IPV+Hib, Kinrix, Menitorix, Pediarix, Poliomyelitis,

Priorix, Rotarix, Twinrix, Typherix, Varilirix ETC.

CONSUMER HEALTHCARE BRANDS

GSK bring dental health products, over-the-counter medicines and nutritional drinks to millions

of people. Many of our brands, such as Panadol,

Aquafresh, and Lucozade are

familiar around the

world.

LIST OF CONSUMER HEALTHCARE BRANDS :

Abreva, Abtei, Alli, Alluna, Aquafresh, Astriginsol.

BC Powder, Beano, Beechams, Breath Right

Cetebe, Chap-et, Chlorhexamed, Cholinex, Coldrex,

Citrucel, Commit Lozenge, Committed Quitters, Contac,

Corega, Corsadyl, Cortal, Crocin

Debrox, Dequadin, Dr. Best

Ecotrin, Eno, Eumovate, Eunova

Fenbid, Feosol, Fiber Choice, Flinonose Allergy, Formigran,



Gaviscon,Gerital, Gly-Oxide, Goody’s Powder, Granufink

Hibitane, Hinds, Horlicks

Imigran Recovery, Insto, Ioden, Iodoson

Lactacyd, Libenar, Lucozade,

Mac cleans, Mactava, Massengill, Medacalm, Mejoral

NiQuitin, Nicoderm CQ, Nicabate, Nicorette, Nytal

Oasis, Odal, Odal-Med 3, Os-cal

Panadeine, Panadal, Parodontax,

Phazyme, Piriton, Potident, Polident 5

minute, Poligrip Ultra

Ribena, Rutinascorbin

Scatt’s Emulsion, Sensodyne,

Shumitect, Solpdeine, Somiex,

Stanback, Super Poligrip, Super wernet’s, Synthal

Tagamet, Targon,Tums

Valda, Viva, Vivarin

Zontac, Zavirax ETC.

1.9 COMPETITORS

MEDICINES

The pharmaceutical industry is highly competitive. GlaxoSmithKline believes that its

competitive position is dependent upon the discovery and development of new products, together

with effective marketing of existing products. Within the pharmaceutical industry, the



introduction of new products and processes by competitors may affect pricing levels or result in

product replacement, and there can be no assurance that GlaxoSmithKline’s products may not

become outmoded, notwithstanding patent or trademark protection. In addition, increasing

government and other pressure for physicians and patients to use generic pharmaceuticals rather

than brand-name medicines may increase competition for products that have gone off patent.

VACCINES

GlaxoSmithKline’s major competitors in the vaccine market include Aventis Pasteur, Merck and

American Home Products. Engerix-B and Havrix compete with vaccines produced by Merck –

Comvax and Recombivax HB for hepatitis B and Vaqta for hepatitis A. Infanrix’s major

competitors are Aventis Pasteur’s Tripedia and TriHIBit, and Wyeth Ayerst’s Acel-Imune and

Tetramune.

CONSUMER HEALTHCARE

The major competitors in the consumer healthcare markets are Procter & Gamble, Colgate-

Palmolive, American Home Products, Unilever and Johnson & Johnson.

In the USA, the major competitor products in OTC medicines are: Tylenol Cold (cold remedy),

Clearasil (acne treatment), Pepcid (indigestion) and private label in smoking cessation. In the UK

the major competitor products are: Lemsip (cold remedy), Nurofen and Anadin (analgesics) and

Nicotinell (smoking cessation remedy).

In nutritional healthcare the major competitors to Horlicks are Ovaltine and Milo malted food

and chocolate drinks. The competitors to Ribena are primarily local fruit juice companies while

Lucozade competes with other energy drinks.



COMPETITOR’s CHART

GSK VS INDUSTRY LEADERS

Statistic Industry Leader GSK GSK Rank Market Capitalization JNJ 186.73B 125.67B 3/31P/E Ratio (ttm) APP 119.25 13.2 11 /31



XPEG Ratio (ttm, 5 yr expected) AZN 5.19 3.1 3/31Revenue Growth (Qtrly YoY) KERX 373.80% 1.70% 15/31EPS Growth (Qtrly YoY) LLY 108.40% -9.40% 10/31Long-Term Growth Rate (5 yr) WX 35.19% 4% 13/31Return on Equity (ttm) GSK 53.12% - 1/31Long-Term Debt/Equity (mrq) GSK 1.112 - 1/31Dividend Yield (annual) PFE 7.10% 4.30% 3/31



CHAPTER – II

ORGANIZATION STRUCTURE

(HIERARCHY)

2.1 ORGANIZATION MANAGEMENT

GSK Company is managed by the Board of Directors and the Corporate Executive Team.



The Board is comprised of five executive and 11 non-executive directors who are responsible for our corporate governance and ultimately accountable for our activities, strategy and performance.

The Chief Executive Officer (CEO) is responsible for the management of the business and is assisted by the Corporate Executive Team that manages our activities. Each member is responsible for a specific part of the business.

BOARDS OF DIRECTORS

The Board of Directors is responsible for GSK Company's corporate governance and ultimately accountable for our activities, strategy and performance.

NAME OF BOARD OF DIRECTORS

Sir Christopher Gent - Non-Executive Chairman

Andrew Witty - Chief Executive Officer

Professor Sir Roy Anderson - Non-Executive Director

Dr Stephanie Burns - Non-Executive Director

Lawrence Culp - Non-Executive Director

Sir Crispin Davis - Non-Executive Director

Julian Heslop - Chief Financial Officer

Sir Deryck Maughan - Non-Executive Director

Dr Daniel Podolsky - Non-Executive Director

Sir Ian Prosser - Senior Independent Non-Executive Director

Dr Ronaldo Schmitz - Non-Executive Director

Moncef Slaoui - Chairman, Research & Development

Tom de Swaan - Non-Executive Director

Chris Viehbacher - President, North American Pharmaceuticals

Sir Robert Wilson - Non-Executive Director

MEMBERSHIP OF BOARD COMMITTEES IS INDICATED IN THE TABLE BELOW



Audit

CorporateAdministration

& Transactions

Corporate Responsibility

Financial Results

Nominations

Remuneration

Gent M C M C MWitty M M

Anderson M MBurns M M MCulp M M MDavis M M M

De Swaan C M M MHeslop M M

Maughan M M MPodolsky M M M MProsser M M M M MSchmitz M M M M MSlaoui M M

Viehbacher M M

Wilson M M M C

Key : C = Chairman M = Member

CORPORATE EXECUTIVE TEAM

The Chief Executive Officer is responsible for the management of the business and is assisted by the Corporate Executive Team.

Andrew Witty - Chief Executive Officer

Simon Bicknell - Senior Vice President, Company Secretary & Compliance Officer

John Clarke - President, Consumer Healthcare

Marc Dunoyer - President, Asia Pacific/Japan

Eddie Gray - President, Pharmaceuticals Europe

Julian Heslop - Chief Financial Officer

Abbas Hussain - President, Emerging Markets

Duncan Learmouth - Senior Vice President, Corporate Communications and Community Partnerships

Bill Louv - Chief Information Officer

Dan Phelan - Chief of Staff



David Pulman - President, Global Manufacturing and Supply

David Redfern - Chief Strategy Officer

Moncef Slaoui - Chairman, Research & Development

Jean Stéphenne - President and General Manager, Biological

Claire Thomas - Senior Vice President, Human Resources

Chris Viehbacher - President, North American Pharmaceuticals

Bob Ingram - Vice Chairman, Pharmaceuticals

ORGANIZATION STRUCTURE

2.2 GSK’S MANAGEMENT IN INDIA

BOARD OF DIRECTORS

D.S. Parekh - Chairman & Independent Director



V. Thyagarajan - Vice-Chairman & Non - Executive Director

Dr. H. B. Joshipura - Managing Director

P. Bains - Non-Executive Director

R. R. Bajaaj - Independent Director

Dr. A. Banerjee - Executive Director - Technical

M.B. Kapadia - Senior Executive Director

N. Kaviratne - Independent Director

P.V. Nayak - Independent Director

V. Narayanan - Independent Director

Dr. M. Reilly - Non-Executive Director

R. Sequeira - Executive Director - Human Resources

MANAGEMENT TEAM

Dr. H. B. Joshipura - Chairman

M.B. Kapadia - Senior Executive Director

Dr. A. Banerjee - Executive Director - Technical

R. Sequeira - Executive Director - Human Resources

H. Singh - E.V. P - Pharmaceuticals

M. K. Vasanth Kumar - E.V.P. - Information Technology & Supply Chain

Dr. S. Joglekar - V.P. - Medical & Clinical Research

S. Khanna - V.P. - Finance

R. Limaye - V.P. - Marketing & Commercial Strategy

S. Patel - V.P. - Legal & Corporate Affairs

S. Rajan - General Manager - Corporate Communications



CHAPTER –III

FUNCTIONAL DEPARTMENTS

(DIVISION)

3.1 FINANCE DEPARTMENT



Finance is the lifeblood & backbone of any organization without this any organization cannot

undertake any activities concerning the organization. This is fascinating subject, who deals with

end result, and these end result are measurable in terms of money. It is dynamic and changing.

Finance deals with all the fact of business production, sales, purchasing, and personnel etc. This

has to be managed actually to yield long-term results. Finance necessary is accumulated for the

starting of company and then at a later stage is allocated to all the facts of the business as

mentioned above as per requirement specified in the financial policy.

No organization can function without capital. It is one of the most important resource of an

organization but this financial resource is scare and each organization must make the option use

of the firms at its disposal, the finance department has an important and vital task of arranging

funds and putting them to best use so as to achieve maximum return and improve the profitability

of the organization.

HIERARCHY OF FINANCE DEPARTMENT

G.M.F: GENERAL MANAGER OF FINANCE

F.M : FINANCE MANAGER ASST.F.M. : ASSISTANT FINANCE MANGER

THE MAJOR FUNCTIONS OF THE DEPARTMENT

Financial budgeting, timely allocation of funds


G.M.F

F.M F.M

Asst. F.M Asst. F.M Asst. F.M Asst. F.M

Accountant Accountant


Maintenance of records required by the different departments.

Payment of wages and salaries.

Payment of bills

Preparation of Final accounts & annuls reports

FINANCIAL STATEMENT

INCOME STATEMENT

2007 2006

£m £m

Turnover 22,716 23,225

Cost of sales (5,317) (5,010)

Gross profit 17,399 18,215

Selling, general and administration (6,954) (7,257)

Research and development (3,327) (3,457)

Other operating income 475 307

Operating profit 7,593 7,808

Finance income 262 287

Finance costs (453) (352)

Share of after tax profits of associates and joint ventures 50 56

Profit before taxation 7,452 7,799

Taxation (2,142) (2,301)

Profit after taxation for the year 5,310 5,498

Profit attributable to minority interests 96 109

Profit attributable to shareholders 5,214 5,389

5,310 5,498

Basic earnings per share (pence) 94.4p 95.5p

Diluted earnings per share (pence) 93.7p 94.5p

BALANCE SHEET 2007 2006

£m £m Non-current assets



Property, plant and equipment 7,821 6,930Goodwill 1,370 758Other intangible assets 4,456 3,293Investments in associates and joint ventures 329 295Other investments 517 441Deferred tax assets 2,196 2,123Derivative financial instruments 1 113Other non-current asset 687 608

Total non-current assets 17,377 14,561

Current assetsInventories 3,062 2,437Current tax recoverable 58 186Trade and other receivable 5,495 5,237Derivative financial instruments 475 80Liquid investments 1,153 1,035Cash and cash equivalents 3,379 2,005Assets held for sale 4 12

Total current assets 13,626 10,992

Total assets 31,003 25,553

Current liabilitiesShort-term borrowings (3,504) (718)Trade and other payables (4,861) (4,831)Derivative financial instruments (262) (40)Current tax payable (826) (621)Short-term provisions (892) (1,055)

Total current liabilities (10,345) (7,265)

Non-current liabilitiesLong-term borrowings (7,067) (4,772)Deferred tax liabilities (887) (595)Pensions and other post-employment benefits (1,383) (2,339)Other provisions (1,035) (528)ivative financial instruments (8) (60)Other non-current liabilities (368) (346)

Total non-current liabilities (10,748) (8,640)

Total liabilities (21,093) (15,905)

Net assets 9,910 9,648

EquityShare capital 1,503 1,498Share premium account 1,266 858Retained earnings 6,475 6,965Other reserves 359 65

Shareholders’ equity 9,603 9,386

Minority interests 307 262

Total equity 9,910 9,648

CASH FLOW STATEMENT 2007( £m) 2006(£m)

Cash flow from operating activities



Cash generated from operations 8,080 8,203 Taxation paid (1,919) (3,846) Net cash inflow from operating activities 6,161 4,357 Cash flow from investing activitiesPurchase of property, plant and equipment (1,516) (1,366) Proceeds from sale of property, plant and equipment 35 43 Proceeds from sale of intangible assets 9 175 Purchase of intangible assets (627) (224) Purchase of equity investments (186) (57) Proceeds from sale of equity investments 45 32 Share transactions with minority shareholder – (157)Purchase of businesses, net of cash acquired (1,027) (273) Disposal of businesses and interest in associates – 5 Investments in associates and joint ventures (1) (13) Interest received 247 299 Dividends from associates and joint ventures 12 15 Net cash outflow from investing activities (3,009) (1,521) Cash flow from financing activities(Increase)/decrease in liquid investments (39) (55) Proceeds from own shares for employee share options 116 151 Shares acquired by ESOP Trusts (26) – Issue of share capital 417 316 Purchase of own shares for cancellation (213) – Purchase of Treasury shares (3,538) (1,348) Increase in long-term loans 3,483 – Repayment of long-term loans (207) – Net increase in/(repayment of) short-term loans 1,632 (739) Net repayment of obligations under finance lea (39) (34) Interest paid (378) (414) Dividends paid to shareholders (2,793) (2,598) Dividends paid to minority interests (77) (87) Other financing cash flows (79) 16 Net cash outflow from financing activities (1,741) (4,792) Increase/(decrease) in cash and bank overdrafts 1,411 (1,956) Exchange adjustments 48 (254) Cash and bank overdrafts at beginning of year 1,762 3,972 Cash and bank overdrafts at end of year 3,221 1,762 Cash and bank overdrafts at end of year comprise:Cash and cash equivalents 3,379 2,005 Overdrafts (158) (243) 3,221 1,762

STATEMENT OF RECOGNISED INCOME AND EXPENSE



Exchange movements on overseas net assets 425 (390)

Tax on exchange movements 21 (78)

Fair value movements on available-for-sale investments (99) 84

Deferred tax on fair value movements on available-for-sale investments 19 (15)

Exchange movements on goodwill in reserves (14) 31

Actuarial gains/(losses) on defined benefit plans 671 429

Deferred tax on actuarial movements in defined benefit plans (195) (161)

Fair value movements on cash flow hedges ( 6) (5)

Deferred tax on fair value movements on cash flow hedges 2 2

Net profits/(losses) recognised directly in equity 824 (103)

Profit for the year 5,310 5,498

Total recognised income and expense for the year 6,134 5,395

Total recognised income and expense for the year attributable to:

Shareholders 6,012 5,307

Minority interests 122 88

6,134 5,395

NOTE ON FINANCIAL STATEMENT

DESCRIPTION OF BUSINESS

GlaxoSmithKline is a major global healthcare group which is engaged in the creation and

discovery, development, manufacture and marketing of pharmaceutical products including

vaccines, over-thecounter (OTC) medicines and health-related consumer products. GSK’s

principal pharmaceutical products include medicines in the following therapeutic areas:

respiratory, central nervous system, anti-virals, anti-bacterials, metabolic, vaccines,

cardiovascular and urogenital, anti-bacterial, oncology and emesis.

COMPOSITION OF FINANCIAL STATEMENTS

The financial statements are drawn up in Sterling, the functional currency of GlaxoSmithKline

plc, and in accordance with IFRS accounting presentation. The financial statements comprise:

• income statement

• balance sheet



•cash flow statement

•statement of recognized income and expense

ACCOUNTING CONVENTION The financial statements have been prepared using the historical cost convention, as modified by

the revaluation of certain items, as stated in the accounting policies.

ACCOUNTING POLICIES

Financial statements include:

The assets and liabilities, and the results and cash flows, of the company and its

subsidiaries, including ESOP Trusts

The Group’s share of the results and net assets of associates and joint ventures.

Foreign currency translation

Revenue

Expenditure

Research and development

Environmental expenditure

Legal and other disputes

Pensions and other post-employment benefits

Employee share plans

Property, plant and equipment

Leases

Goodwill

Other intangible assets

Impairment of non-current assets

Investments in associates and joint ventures

Available-for-sale investments

Inventories

Trade receivables

Trade payables

Cash and cash equivalents

Taxation



Derivative financial instruments and hedging

Discounting

PAYMENT POLICIES

Group companies are responsible for monitoring and managing their working capital. The

terms of sales collections and supplier payments reflect local commercial practice.In the

UK, the company and each of its UK subsidiaries have policies to ensure that suppliers

are paid on time. In particular, the UK companies seek:

to settle terms of payment with suppliers when agreeing the terms of the transaction

to ensure that suppliers are made aware of the agreed terms of payment

to abide by the terms of payment.

The policy includes arrangements for accelerated payment of small suppliers.

2007 PERFORMANCE OVERVIEW

Turnover, business performance* earnings perTurnover, business performance* earnings pershare growth and total shareholder return return

THIS GRAPH SHOWS ANNUAL TURNOVER OF GSK



THIS GRAPH SHOWS EARNING PER SHARE OF GSK

Earnings per share have been calculated by dividing the profit attributable to shareholders by the weighted average number of shares in issue during the period after deducting shares held by the ESOP Trusts and Treasury shares.

THIS GRAPH SHOWS TOTAL SHAREHOLDER RETURN OF GSK



THIS GRAPH SHOWS SHARE PRICE OF GSK

The graph sets out the middle market closing prices derived from the London Stock Exchange

Daily Official List. The company’s share price decreased by 5% in 2007 from a price of £13.44

at 1st January 2007 to £12.79 at 31st December 2007. This compares with an increase in the

FTSE 100 index of 4% during the year. The share price on 22nd February 2008 was £11.10.



3.2 HUMAN RESOURCE DEPARTMENT

Human resource department plays an important role in any organization. There so many

functions deployed in the organization which will coordinates the employees in the organization

and achieve the organizational goals.

HIERARCHY OF HUMAN RESOURCE DEPARTMENT

HR DEPARTMENT IN GSK

GSK employs over 100,000 people in 119 countries.

In GSK HR department is a very important and clearly defined department. The department

performs the personnel and administrative functions. It has a direct link with the employees and

understands their needs and wants.

R. Sequeira is the Executive Director and he looks after all the human elements of the

organization. This department deals with the effective and efficient control and use of manpower

as differently from other sources of power..


HR HEAD

PERSONAL

MANAGER

HR EXECUTIVE


PLANNING

Human resource or manpower planning is the process by which a management determines how

an organization should move from its current manpower position.

Through planning, a management strives to have the right number and the right kinds of people

at the right places, at the right time, to do things which result in both the organization and the

individual receiving the maximum long range benefit.

RECRUITMENT PROCESS

First the bio-data is collected from the prospective worker.

The P.M. interviews him/her then, interviews are conducted on the basis of which

section he is going to be placed.

His experience is also taken into consideration.

If he has all the technical qualification, a declaration letter will be given to him/her.

If there are unskilled employees, they are first appointed as helpers.



TRAINING

Training means to give information or skill through instructions or practical. It is a method for

increasing the knowledge and skill of the people for a specific job. “Training is the art of

increasing the knowledge and skills of employees for doing a particular job”.

THE TRAINING METHODS ARE:-

ON THE JOB TRANING

This is a common used method for training the operative personnel. The workers are trained

under the same type of conditions they have to work in future. On the job he can experience the

conditions and requirements of actual work situations.

OFF THE JOB TRAINING

Off the job training generally consists of conferences, seminars, lectures, group discussions, case

studies, programmers, instructions etc.

APPRENTICESHIP TRAINING

In apprenticeship training a worker is appointed as an apprentice. The company gives

apprenticeship training in the following trades: Electrical, Plumber, Fitting

For selection or incumbent in cash trade, company seeks the list from the regional trainingcentre,

as per the rules.

REMUNERATION TO EMPLOYEES

The minority reward paid by the management to worker or an employee for the performance of

the assigned task is called “wages” or “salary”. Salary is the remuneration paid to non-operative

staff: salaries are paid on a monthly basis to office staff, managers and Technical advisors etc.

Wages is the remuneration paid to the workers involved in production. Work and who’s output

can be directly measured.



PERFORMANCE AND REWARD

Reward systems are designed to support a culture of high performance and to attract and retain

the best people. Performance based pay and bonuses, share awards and share options align

employee interests with the meeting of business targets

GSK Employment Awards

GSK receives Top Honours from NBGH for Providing Healthy Workplace and Promoting

Healthy Lifestyles 2008

Britain's Top Employers 2008

Top companies for leaders 2007

16 years on the Working Mother 100 best companies list

Employer of choice for Research and Development

The most effective use of workplace financial education

Britain's top employers 2007, 4th place

Best places to work for industry award, 9th place

Top 10 most respected/best employers

Leaders employment learning innovations award, top 20

One of the top 50 best companies to work for in Ireland

Vietnam's 50 best employers for 2006

Top 50 employer

Best practices, employer of choice, HR and diversity excellence

National graduate recruitment awards, 3rd place

Best in class in Engineering and Science for graduates

Times Top 100 graduate recruiters 2007, 13th place

Most popular graduate recruiter in Engineering and Science

GSK Poland "friendly employer"

GSK Poland "women friendly employer

GSK Finland "great place to work", 6th place



SALARY MODEL

BASE SALARYBase salaries are set by reference to the median for the relevant market. For Executives, this is

the pharmaceutical pay comparator group. Actual salary levels are reviewed annually and are

influenced by an Executive’s experience, responsibility and market value

ANNUAL BONUS

All annual cash bonuses are determined on the basis of a formal review of annual performance

against stretching financial targets based on profit before interest and tax and are subject to

detailed assessment of individual, business unit and Group achievements against objectives. No

bonus is payable if financial performance

is less than 96% of the target.

LONG-TERM INCENTIVESExecutives are eligible for annual long-term incentive (LTI) awards, and the remuneration policy

provides that these will normally be made up of a performance share award and a share option

award.

RELATIONS BETWEEN MANAGEMENT AND UNION

Most of the employee’s opinion is that there is a healthy relationship between the management

and union. So the management must take necessary steps to maintain this good relationship. So

there is no problem from the part of the union.



3.3 MARKETING DEPARTMENT

Marketing department is largely concerned with building customer satisfaction through quality

sales. Marketing department managers manage the marketing process and plan time-to-time

market research at the time of analyzing the market environment and customer behavior.

To achieve standards, efforts are made to satisfy the customer. To earn the trust of every

probable customer, locally or globally the company maintains high quality all times. For

attaining peak professionalism sales person are trained and organized by the department to

achieve organizational objectives.

HIERARCHY OF MARKETING DEPARTMENT

G.M.M : GENERAL MANAGER OF MARKETING

R.B.M : REGIONAL BUSINESS MANAGER

A.B.M : AREA BUSINESS MANAGER

M.R : MEDICAL REPRESENTATIVE


G.M.M

R.B.M R.B.M

A.B.M A.B.M A.B.MA.B.M A.B.M A.B.M A.B.M A.B.M

22 M.R 12 M.R 8 M.R10 M.R 6 M.R26 M.R 8 M.R 5 M.R


FUNCTIONS OF MARKETING DEPARTMENT

This department prepares an annual marketing plan and sales forecast.

It works with advertisements and sales promotion.

It looks after the customer services.

Marketing manager stimulates the support of product among the sales force and distributors.

Initiating product improvements to meet changing market needs is one of the functions of

this department.

This department gathers continuous intelligence on the product’s performance, customer and

dealer attitudes and new problems and opportunities.

Conducting a market research, developing long range and competitive strategy for the

products.

Prepares annual marketing plan and sales forecast.

Advertisement and sales promotion.

Look after customer services.

Initiating product improvement.

Marketing research.

MARKETING ETHICS

GSK market our medicines to doctors, hospitals and governments. In some countries, such as

the US, we also advertise medicines directly to consumers. Our specialist sales

representatives meet regularly with doctors and pharmacists to inform them about our

medicines and their approved uses.

GSK believe that sales representatives play an important role inproviding up-to-date

information to doctors on our products and their benefits to patients. However, we recognise

that the marketing of pharmaceutical products raises some challenging issues.

In particular, some people are concerned that marketing by pharmaceutical companies exerts

undue influence on doctors, that sales representatives do not always give doctors full



information about potential side effects, or that promotion for unapproved uses may be

occurring despite increased training, monitoring and oversight.

GSK approach to addressing these issues includes regional marketing codes of practice,

regular training and monitoring.

GSK FOLLOWS RECOGNIZATION MARKETING CODES

Variations in these codes relate to differences in market structure, national healthcare systems

and underlying laws and regulations than to a difference in our ethical approach to market

behaviour.

In the United States, GSK abides by the PhRMA Code on Interactions with Healthcare

Professionals and the PhRMA Guiding Principles on Direct-to-Consumer Advertisements

of Prescription Medicines. GSK also has in place a set of “Commercial Practices

Policies” that were developed to provide clear rules on how GSK employees should

conduct themselves in their job. Included in those are policies that govern 16 specific

promotional and educational activities.

In Europe, GSK observes individual country laws, regulations and industry codes,

including the European Federation of Pharmaceutical Industries and Associations

(EFPIA) Code of Practice and has its own GSK European Promotion of Medicines Code

of Practice.

Across our International Region, GSK has an International Pharmaceuticals Promotion

& Marketing Code designed to ensure a consistent framework for in-country sales and

marketing activity. The code is based on IFPMA Guidelines, and applies to all 118

countries in the GSK International Area. In addition, individual country businesses

frequently have codes that reflect the specific laws and regulations of the countries in

which they operate.



In Japan, GSK has a separate and distinct Code that is based on both the Japan

Pharmaceutical Manufacturer’s Association (JPMA) Marketing Code and IFPMA Code

Guidelines.

TRAINING AND AWARENESS

Over 14,000 managers completed our self certification process in 2007. Other training and

awareness initiatives vary from region to region and included:

11,000 sales and marketing staff in our international region received training on our

revised Pharmaceuticals International Promotion and Marketing Code

831 US field sales managers and 228 marketing staff (the employees responsible for

overseeing sales representatives) attended our new Compliance University programme at

venues across the US. The programme provided a half day interactive course on key

compliance areas. Senior managers and compliance officers also attended to answer

questions from attendees, help them to explore potential ethical dilemmas and reinforce

the importance of the subjects covered

Country compliance officers and contacts in Europe received training on topics such as

key corporate policies, ethical dilemmas, and records management

Targeted communication and training for R&D employees who engage with external

experts (including healthcare professionals). This included e-learning modules covering

use of external experts and payments to healthcare professionals and the provision of

gifts

Launched a coaching excellence programme in GSK Biologicals to help new employees

understand and adopt GSK values and develop their skills

Annual online promotion compliance training for all GSK Japan employees who meet

with healthcare professionals.

Every two years we conduct a leadership survey of GSK managers. The last survey in 2006

showed that 91 per cent of GSK managers believe ‘people in my department show commitment

to performance with integrity.’ 76 per cent agreed with the statement that ‘I can report unethical

practices without fear of reprisal’, considerably higher than the overall industry benchmark of 68

per cent.



REGIONAL ANALYSIS

Pharmaceutical turnover by geographic region in 2007 on an invoiced basis The turnover

reported in the table below represents sales invoiced by GSK’s local entity to its customers in the

local market plus copromotion income within each market



THIS GRAPH SHOWS SALES AND CONSTANT EXCHANCE RATE GROWTH BY REGION OF GSK



3.4 PRODUCTION DEPARTMENT

GSK’s manufacturing operations comprise a network of 79 sites in 37 countries and employ over 33,000 people.GSK manufactures a large portfolio of products, ranging from tablets and toothpaste to inhalers

and complex capsules, in over 28,000 different pack sizes and presentations. Manufacture of

medicines starts with the development of atherapeutic active ingredient (bulk active) in a

selected formulation. Global Manufacturing and Supply (GMS) develops manufacturing

processes for full scale volume production of active compounds at primary manufacturing sites.

Secondary sites then convert these active compounds into finished medicines. Each year GMS

produces around 6,000 tonnes of bulk actives and more than four billion packs, which are sold in

over 140 countries. It also supports about 2,000 new product and line extension launches every

year. By adopting leading edge practices and developing its people,

GMS provides:

• a secure source of supply of high quality products

• compliance with regulatory requirements and customer expectations

• best in class cost

THE MAIN FUNCTIONS OF PRODUCTION DEPARTMENT ARE

To meet the raising demand of the consumer.

To provide better quality product and services.

To expand the existing business.

To maintain the factory premises i.e. proper utilization of the available space.

To reach out to the industrial market with increased production and high standards.



HIERARCHY OF PRODUCTION DEPARTMENT


WORKS MANAGER

SUPERVISOR

ENGINEER

SENIOR ENGINEER

OFFICE ASSISTANT

GENERAL MANAGER OF PRODUCTION


MANUFACTURING OPERATIONS

GSK has 46 manufacturing sites outside Europe and North America including one in an LDC

(Chittagong, Bangladesh). Here we have contracts with 3 companies for the supply of inhaled

aerosol products, penicillin, local solid dose products and Horlicks.

The sites form part of the corporation’s business strategy and were established in response to a

business need or, in

some



circumstances, because of local government insistence on “local working” as part of the product

registration process.

GSK production sites in Algeria, Hungary, Morocco, Nigeria, Sri Lanka and Turkey produce for

the domestic market. However, many GSK facilities in developing countries also export to other

parts of the world such as is the case in Argentina, Brazil, Costa Rica, Egypt, India, Indonesia,

Kenya, Malaysia, Mexico, Pakistan, Panama, Philippines and South Africa, By operating these

manufacturing sites, GSK promotes the development of skills and technical expertise of the

workforce in those countries.

GSK also has a programme of “know-how” transfer to local manufacturers whereby we

outsource production of products as part of a carefully managed production cycle aimed at

freeing up GSK production capacity for the development of new drugs and vaccines.

Transfer of production usually occurs post-patent expiry for products which local operating units

consider of strategic and/or commercial importance in local or regional markets. They remain

GSK branded products, sold and marketed by the company; however production is done by a

third party contractor, with the necessary regulatory and technical support from GSK to ensure

compliance with local and international standards.

Horlicks Production

· India: GSK has three Horlicks factories in India dating from 1959, 1973 and 2002 (one in

Punjab in the North, one in Andhra Pradesh in the South, and the third in Haryana, which

commenced production in 2002). Two of the factories - in Punjab (Nabha) and Andhra Pradesh

(Rajahmundry) - buy cow/buffalo milk from around 40,000 local farmers. When we first started



operations in India, local farming families agreed to keep additional animals so that they had

surplus milk over and above their family requirements to sell to GSK.

We in turn provide aid in terms of veterinary assistance, subsidised cattle feed,artificial

insemination, free deworming as well as holding training programmes on animal husbandry to

enable the farmers to maximise the output of each animal and enhance the population.

RESEARCH AND DEVELOPMENT (R&D) POLICIES

The R&D process is highly regulated, wherever GSK operates. As scientific advances

raise new issues, we work closely with the regulators, policy makers, and stakeholders to

develop new or refined standards. We have our own internal standards and systems to

ensure that we comply with or exceed guidelines, regulations and legal requirements.

Policies apply to interactions of GSK R&D employees with healthcare professionals or

with the U.S. Government. These Policies cover a range of activities including:

Guidelines for requesting and receiving external consultancy in R&D over a defined

monetary limit

Standards for compensating, reimbursing, and providing financial benefits to healthcare

practitioners , or their affiliated institutions or organizations, conducting GSK-

sponsored or GSK-supported clinical studies.

Standards for determining the need for external experts and for selecting, using,

compensating, and interacting with external experts within GSK R&D

Framework and requirements for managing GSK's procurement, maintenance, and

administration of research funding from agencies of the U.S. Government.

Meals or gift items related to a healthcare professional’s practice

Sponsoring independent medical education or providing charitable contributions

3.5 SYSTEMS DEPARTMENT

System ought to be designed on based on the synergy of subsystem viz. human resource,

production, marketing, sales, logistic, inventory control, manufacturing, legal, finance,

accounting, customer care, and services with interrelation among one another in order to achieve



a net unified cohesive system and to achieve organizational objectives. It is the mean of

circulating the information between the various departments of an organization and monitoring

the performance and to carry business practices to serve society efficiently and effectively. It

plays a prominent and crucial role in various subsystem of an organization as discussed below.

MARKETING AND SALES DEPARTMENT

Marketing and sales subsystem generally include all activities related to promotion and sales of

product or services. The transactions are sales order, promotion order, etc. The operational

control activities include hiring and training of the sales force, the day to day scheduling of sales

and promotion efforts, and periodic analysis of sales volume by region, product, customer etc.

Managerial control concerns comparison of overall performance against a marketing plan.

Information for managerial control may include data on customer, competitors, competitor’s

product and sales force requirement. Strategic planning for the marketing function involves

consideration of new market and new marketing strategies. The information requirement for

strategic planning includes customer analysis, compotators analysis, consumer survey

information, income projection, demographic projection and technology projection.

PRODUCTION DEPARTMENT

The responsibilities of production or manufacturing subsystem include product engineering,

planning of production facilities, scheduling and operation of production facilities, employment

and training of production personal, and quality control and inspection. Typical transactions to

be processed are production orders, assembly order, finished part tickets, scrap tickets and time

keeping tickets. Operational control requires detailed reports comparing actual performance to

production schedule and highlight areas where bottleneck occurs. Management control requires

summery reports which compare overall plan or standard performance to actual performance for

such classification as cost per unit and labor used.

HUMAN RESOURCES DEPARTMENT

The human resources subsystem includes hiring, training, record keeping, payment, and

termination of personnel. The transaction result in documents describing employment



requisitions, job description, training specification, personal data, pay rate changes, hour worked,

paychecks, benefits and termination notice. Operational control for personal require decision

procedure for action such as hiring, training, termination, changes pay rate and issuing benefits.

Management control of the personal function is supported by reports and analysis showing the

variance resulting from difference of employee hired and actual performance for such

classification as number of employee hired, cost of recruiting, compositions of skill inventory,

cost of training, salary paid, distribution of wage rates, and conformance with government equal

opportunity requirement.

FINANCE AND ACCOUNTING DEPARTMENT

Finance and accounting are somewhat separate functions but are sufficiently related to each

other. Finance subsystem is responsible for ensuring adequate organizational financing at as a

low cost as possible, finance function covers of granting credit to customers, collection process,

cash management and financial arrangements. Accounting covers the classification of financial

transactions and summarization into the standard financial reports (income statement and balance

sheet), the preparation of budget and classification analysis of cost data.

LAN

Local area network (LAN) is a group of computers and associated devices that share a common

communication line or wireless link. Typically connected devices share the resources of a single

processors or server with in small geographic area. Usually the server has application and data

storage that are shared in common by multiple computer users

Major Local Area Network technologies are:

Ethernet

Token Ring

FDDI

WAN



Wide area network is geographically dispersed telecommunication network. The term

distinguishes a broader telecommunication structure from a local network. A wide area network

may be privately owned or rented, but the terms usually connote the inclusion of public

networks. An intermediate form of network in terms of geography is a metropolitan area network

TELECONFRERENCING

Teleconferencing means any kind of multi-way communication carried out in real time using

telecommunication or computer networks and equipment

Major teleconferencing technologies are:

Video conferencing

Audio conferencing

Data conferencing

Intranet

E-business requires a network platform, which is seamless and allows smooth flow of data and

information in any form from any location to any other destinations. The intranet essentially any

internal company network that uses standards, namely HTML, HTTP and TCP/IP. The existing

network (LAN/WAN) when loaded with these standards and supported by web server and web

browser becomes Intranet for the organization.

The intranets are used within the organization for the following purposes

Access Manuals, contracts.

Post personal web pages.

Access product, consumer data.

Post job offers, Memos.

Revision, Validation, Approval of documents.

Access databases.

Access schedules, plan, calendars.

Access employee database.



Extranet

Intranet is private to the organization; Extranet is an internet for outside authorized user using

same internet technology. The out side users are trusted partners of the organization who have

access to information of their interest and concern

HIERARCHY OF SYSTEM DEPARTMENT

S.M: SYSTEM MANAGER

ASST. S.M.: ASSISTANT SYSTEM MANAGER

The chief of system department is controlled by IT HEAD which has power to control one country under subdivision of four SYSTEM MANAGER which control all four region of the country with the help of ASSISTANT SYSTEM MANAGER.


S.M.

IT HEAD

ASST. S.M.

S.M. S.M.

ASST.SM.

S.M.

ASST. S.M. ASST. S.M.


CHAPTER-IV

SWOT ANALYSIS

STRENGTHS:

GSK is the leader not only in terms of Product and Sales but also in terms of corporate

responsibilities with regard to access of medicines.

It has maintained customer loyalty because of quality and brand



Approach of GSK is too reactive.

GSK is Market leader for some fast growing and deadly diseases like HIV, TB etc.

GSK is the Sole Company which is

authorized to manufacture medicines

for heart and Brain diseases.

It has maintained market leadership

in industrial sector

Employee satisfaction will be

maintained

WEAKNESS:

GSK has a very passive strategy

It emphasizes its market globally than to Indian market.

High labour turn over

Difficult to maintain the pricing strategies

Difficult to maintain working condition

Training period is less

GSK have no certain goals and strategy

OPPORTUNITIES:

GSK can also foray into food sector.

GSK can be market leader for pharma product.

GSK equally gives importance for range of products as well as quality of the product.

GSK is innovative in nature in terms of manufacturing product instantly.

THREATS

Competition

Government policies

High cost of raw material and labour

Labour availability

Power



MISSION

GSK’s mission is to improve the quality of human life by enabling people to do more, fell better

and live longer.

SPIRIT

GSK undertake our quest with the enthusiasm of entrepreneurs excited by the constant search for

innovation we value performance achieved with integrity. We will attain success as a world

class global leader with each and every one of our people contributing with passion and

unmatched senses of urgency.

Business Drivers

GSK face a highly competitive marketplace, populated by other excellent companies, with their

own gifted people, and their own determination to succeed. GSK will beat the competition by

achieving excellence in five areas that are primary drivers for our business.

VISION

GSK vision for the future is powered by their business drivers. It finds purpose and direction

with their strategic intent.

It is guided by our corporate culture that places people and capabilities and the pivot that changes

and transforms situations.

The vision for the future

GlaxoSmithKline’s vision is exciting and will give you the opportunity to make a difference in

the health of billions of people. Our value systems and operating principles will provide the

necessary guide on how we work at GSK. The key to our success will be powered by the desire

and passion to pursue GSK’s priorities, expressed by the business driver

OBJECTIVES OF THE STUDY



The general objective of the study is to gain an insight about the functioning of the organization

namely, “GlaxoSmithKline Pharmaceuticals Limited”

The specific objectives of the present study are to:

Study the organization behavior, culture and climate.

Understand the activities and functions of each department.

Know about the availability of GSK’s services.

Carry out the SWOT analysis on the basis of the observation and learning.

Give suggestions and recommendations for improvement of the activities and functions

of the organization.

NEED FOR THE STUDY .

To make M.B.A. program more relevant with respect to the necessities of the corporate or the industries.

To inculcate students practical knowledge of corporate world.

To cover various aspects of general managerial such as organizational structure, functions of respective department in the organization.

SCOPE OF THE STUDY

This study is an attempt to study the organization as a whole and to study the different functional

units in detail so that a detailed knowledge about the organization from different aspects is

gained.

It aims to study the functions of the different departments which constitute the organization so as

to suggest effective changes, so as to help the organization achieve its objectives and the

different departments contribute effectively towards the achievement of this organizational goal.

LIMITATIONS OF THE STUDY



It is not possible for any study to make it accurate due to hurdles in collection and

computation of data.

There is no detail information provided, because it is a private company and the Matters are

purely confidential.

Since the Managers are busy with their daily schedules it is not possible for us to spend more

time in interaction and discussion with them.

The major limitation is that the duration allocated for the study is very short. With in two

months the complete organizational study is not possible.



CHAPTER-V

SUGGESTIONS AND CONCLUSIONS

SUGGESTIONS OF THE STUDY:



GSK has been a leader in promoting access but it was external pressure that led them to this

point

GSK needs to report its goals and strategy

GSK has a very passive strategy – it needs to acknowledge challenges and be more

aggressive in tackling them

Try to make well performance in marketing practices

There is no evidence of alignment between GSK’s CR objectives and public policy.GSK

should be more transparent on this and its lobbying through industry groups

I would like to see really clear goals and targets going forward, especially for access and

R&D.”

Access should be GSK’s priority for the future, in particular finding a balance between

public health and patent protection

CONCLUSIONS OF THE STUDY:

Having read the report I would now use GSK as a best practice example. The work in the

2007 is absolutely excellent.

GSK is a real leader, particularly in research into neglected diseases. They manage to

balance social expectations with business goals

My overall perception is positive. GSK is being pretty ambitious



BIBLIOGRAPHY

www.gsk.com


http://www.gsk.com/


www.gsk-india.com

www.nse-ind.com

HUMAN RESOURCE MANAGEMENT K. Ashwatappa

ORGANISATION BEHAVIOUR K. Ashwatappa

BUSINESS MANAGEMENT C.B.Gupta


http://www.gsk-india.com/

gsk

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