Business straegies,development and management of Glaxo-Smithcline Essay

Business straegies,development and management of Glaxo-Smithcline - act ExampleGlaxo started as a small firm in 1970s with dried milk headache and added antibiotics, nutritional supplements and respiratory medicates. Glaxo Inc was born as a result of acquisition of Meyer Laboratories in the US (Heller, 2006). It started expend in R&D during the 1980s which gave the company a phenomenal growth. By 1994 Glaxo had 3.6 percent care of the world market and had a strong presence in Europe and US (Btiz-Lazo, 2003). Its status as the leader was established in 1994 when the industry as a whole faced increased drug discovery costs.Wellcome Foundation (WF), the largest non-profit drug medical institution in the UK, had an academic approach to pharmaceuticals with strong cognition but weak in marketing. WF had a 40% stake in Galxos Zantac which contributed to 43 percent of Glaxos revenues. To a large extent the growth of Glaxo was based on the success of Zantac. Glaxo strategically engine ered a takeover of Wellcome as Zantacs patent was due to expire in 1997 and Wellcome had the force to dissipate risk and ensure that resources would be able for research. The merger further consolidated Glaxos position as the third largest company by market capitalization in London and the worlds largest research firm with 54,000 employees. Organizational culture differences erupted trouble in the merger. While WF had a laid stick out management style and focused on science, Glaxo had a commercial and control-driven culture. The drugs pipeline was unimpressive and new products failed to bed up to expectations.This paved the way for the merger of Glaxo Wellcome with SmithKline Beecham at the turn of the century. Glaxo SmithKline (GSK) was formed in December 2000 by the merger of Glaxo Wellcome plc and SmithKline Beecham plc. In 2005, it became the worlds second largest research-based pharmaceutical company in the industry (RedOrbit, 2006). The get hold of of the market was very h igh and integration of new people