Contents

GLOBAL TEA MARKET ...................................................................................................................... 2 Production, Consumption and Exporting of Tea ................................................................................ 2 Global Production of Tea ................................................................................................................ 2 Global Consumption of tea ............................................................................................................. 3 Global Tea Exports .......................................................................................................................... 3 The influence of Individual grower on the price of tea ....................................................................... 4 The role of transnational corporation in tea market ............................................................................ 4 DEMAND AND SUPPLY FACTORS IN TEA MARKET .................................................................................. 5 Kenya demand and Supply in the general rise in price of tea ............................................................ 6 EFFECTS OF CHANGES IN TEA PRICES ON THE ECONOMY OF KENYA ..................................................... 8 Would rises in the price of tea in shops necessarily mean a rise in the price for tea growers? ........ 8 PART B................................................................................................................................................... 9 AGENCIES SET UP TO CONTROL ABUSE OF MARKET POWER IN UK ................................................... 9 Actual case on the abuse of market power in UK British Airways (BA) .......................................... 9 FISCAL AND MONETARY POLICY MANAGEMENT IN SOUTH AFRICA ........................... 10 Three Key areas that areas that relates to the South Africas macro financial affairs. ................ 10 Government debt as a % of GDP (domestic and foreign total gross debt)................................... 11 South Africa Budget deficit as % of GDP (Fiscal years) ................................................................. 12 South African Government Revenue and Expenditure Trends ..................................................... 12 Government finances avoiding deeper recession ............................................................................ 13 SWOT ANALYSES OF GLAXOSMITHKLINE PHARMACEUTICAL COMPANY. ....................................... 14 Strength ............................................................................................................................................. 14 Weakness of GSK .............................................................................................................................. 15 Opportunity of GSK ........................................................................................................................... 15 Threat of GSK .................................................................................................................................... 16 REFERENCE........................................................................................................................................ 18

GLOBAL TEA MARKET Production, Consumption and Exporting of Tea

Global Production of Tea

The annual production of tea in the world is about 2.9million tons. The most production of tea and the largest area of tea planting are belonged to India and China respectively. India produces about 720,000 tons of tea a year. Production and Area of tea in the world (1999-2000)

Others Japan Turkey Kenya Indonesia Sri lanka China India 0 200 400 600 800 1000

Area (x1,000 tons) Production(x1,000tons)

*Production and Area of Tea in the world 1999-2000 cited in Aginsky. A, 2009. P1 In 2007, China became the worlds largest producer of tea followed by India. Kenya increased in production in 2006 rising up to the same level with Sri Lanka and 2007 Kenya made more productive gap ahead.

*Major tea producers of the World 2006-2007 cited in Aginsky A, 2009.p2

Global Consumption of tea

Today the consumption of tea is just as important as the consumption of drinking water. On the average about 2 1/2million metric tons of tea are produced world wide. Some of this tea is retained by producing countries for internal consumption while the rest is traded either directly to value added resellers in other countries or bought through auction on the open market India and China are the largest consumers of tea.(Anon. 2009). From 2004 through 2007, global supply of tea has exceeded demand. When quantity supplied is more than quantity demanded price falls, up to the point at which some suppliers decide they would rather not sell the product at that low price. When price falls, demand increases. As the global supply of tea has consistently outstripped global demand, major tea producers have been pursuing differentiated marketing strategies and focusing on those marketing strategies and focusing on those markets with high rates of growth. (Alexander A. 2009)
Global Tea Exports

In 2007, Kenya was the largest exporter of tea followed Sri Lanka, China and India. Though India is the second largest producer of tea in the world, the domestic consumption of tea is very high resulting to lower tons for exportation. This had made Indian the fourth largest exports of tea.

*Export Statistics for Major tea Exports of the world cited in Aginsky A, 2009. Presently there is a speculation about the global tea shortage increasing by 10% due to droughts in Kenya, Sri Lanka and India, the top exporters, damaging crops and propelling prices to a record (Thomas K.A., 2009) If supply of tea reduces, the cost will increase making no relief for tea consumers. India, the worlds largest tea consumers, wont boost exports to benefit from record global prices as local demand has increased 1% an average over the past few years. This would give consumers no choice but to look for a cheaper substitute like coffee.

The influence of Individual grower on the price of tea Tea is a commodity that is consumed by all. Its target market is focused on all demography. As an inelastic good, tea consumers tend to still buy tea even as price increases because of it essential nutrients to the body. Nevertheless tea growers also influence the price. The demand for tea in the market is high so therefore the price increases along with supply. During the rainy season in most tea growing like Kenya and Indian, the growers picks lots of tea grown due to adequate rainfall and sells to transnational corporation whom would then package the tea for consumption and distribute with sales to the market. As a result of adequate rainfall much supply will be made by tea growers and when there is excess supply of tea, the price falls. In dry season, the speed in the supply of tea by growers reduces making higher demand and less supply of tea. The growers harvest the available tea and sells at a high price to the transnational corporation at high price because scarcity will result to increase in price. Then the transnational corporation will make profit by selling at a higher price. So it can be said that the influence of individual tea growers on the price of tea varies because it could influence to a rise and fall in price due to the demand and supply of tea market. The role of transnational corporation in tea market Transnational Corporation has a role to market access for tea exports, sourcing of raw materials and horizontal or vertical integration. It analyses how internationalization is changing the nature and corporate production of tea and the implications and roles played by tea industries. They are to revolutionize the tea industry by committing to purchase all its tea from sustainable, ethical sources. They have the potential to reassure consumers about the source of the tea they enjoy drinking, to improve the crops, incomes and livelihood of 2 million people around the world and to create differentiated brand from competitors.

DEMAND AND SUPPLY FACTORS IN TEA MARKET

The demand for tea is expected to increase worldwide, with the European Community, the United States, and Japan being major importers Why are tea prices increasing? Demand has remained strong, despite economic down turn. Even if incomes fall, consumers see it as an essential item. It can be said that the demand for tea is income inelastic. Tea may even be an inferior good as incomes fall people may buy more tea rather than more expensive drinks. Drought in major area of production such as India, Sri Lanka and Kenya has also donated to the increase in price. These draughts are leading to lower supply. The nature of growing tea is that producers cant easily supply in the short term. Demand in price inelastic. A rise in the price of tea doesnt deter consumers from buying it. There are few alternatives to like coffee and most parent consumers do not request coffee for their kids. Therefore the higher price of tea does not reduce demand. A Growing demand from China, which is developing a taste for drinking more tea having a real large population. (Pearson C., 2009)
P S1 P2 S2

P1 D1

D2

Q1

Q2

The Demand for tea increased since 2005, so had supply. The higher the price, the higher the quantity supplied. Most customers demand for tea even as its price increases. But when the supply of tea becomes excess in market, then price will fall. They have to keep up to market equilibrium were demand is equals to supply World production of black and green tea (1000 metric tons) in 2000 projected for 2010. Black Tea 2000 2010 2145 2443 815 1070 305 329 236 304 54 62 42 42 29 29 65 54 131 147 Green Tea 2000 2010 681 900

World India Sri Lanka Kenya Bangladesh Malawi Uganda China Indonesia

500 38

647 49

World production of black and green tea 200-2010 cited in Aginsky .A, 2009.

*World demand and supply 2004-2007 cited in Aginsky A, 2009.

Kenya demand and Supply in the general rise in price of tea

Kenya tea has long been considered a health enhancing beverage. It is a natural drink that contains no additives, preservatives or artificial coloring and its cholesterol free when taken without milk or sugar. Kenyan teas are famous for their brightness, attractive color, brisk flavor and textures of fragrant leaves. Despite all these, Kenya tea still experiences volatility in price. Drought and cold weather in growing areas cut production in Kenya. Although the Kenya auction system would seem to approximate a fair market in which prices are determined solely by the interplay of supply and demand, the system does not always work well for small scale producers. Auction prices vary considerably with both the quality and quantity of tea on offer and a demand for tea at a given time. There is evidence of collusion among brokers to influence prices. A number of investigations have revealed a high degree of collusion that prevails in buying and wide scope for collusion between brokers and buyers. Such collusion occurred would tend to reduce the price at which producers could sell tea at the auctions and would also affect prices of direct sales. In 2005, the situation was considered so bad that the Kenyan National Chamber of Commerce called for the elimination of tea auctions. Also, with demand growing and supplies fall, the cost of leaf tea at auction is being increased. Tea is considered as one of the key items which attracts shoppers and big stores were they are giving buy one-get-one-free offers to make up for the rises, but not all retailers will be able to follow suit and shortly after, higher prices is expected to filter through.

In Kenya the only thing that would stop the cost from increasing to would be a much needed rainfall. This would help farm tea grow more rapidly so that there will be an excess supply resulting in decrease in price. (Birchley E., 2009)

EFFECTS OF CHANGES IN TEA PRICES ON THE ECONOMY OF KENYA

A strong rally in commodity prices could help out Kenyas economy back on the growth part. Kenyas fortunes in the commodities market is particularly tied to the continue strengthening of tea which helps the economy exports for major world currencies. That would reduce Kenyas external debt burden and bring down the cost of imported intermediate goods that are critical to growth of industrial output. Unseasonal droughts and insufficient fertilizers application in 2008 on the back of reward high oil prices have resulted in dramatic harvest cuts in 2009. This had led in price increase and still demand continues steadily to grow favoring the economy. Despite this beneficiary, Kenya still have reliance of tea meaning that it is particularly hit by unfavorable price trends in the tea market. When the price of tea declines, their terms of trade suffer as they have less foreign currency to buy imports, which are generally increasing in price.

Would rises in the price of tea in shops necessarily mean a rise in the price for tea growers?
A rise in tea prices in the shops does not necessary mean a rise in the price for tea growers and in the wages of workers in the tea industry. Tea growers harvest their leafs and sell at auction at an increased cost to the transnational corporations which then have the role to package as consumer goods and sell. Kenya tea production was initially developed as Colonial export crop by the British company Brooke Bond which was later acquired by Unilever in 1983. Unilever Kenya limited, evolved during the Second World War when essential household items and other vital products became increasingly scarce. Unilever a transnational corporation in this case, controls subsidiaries in at least 90 countries and is one of the worlds top food firms. This shows that Unilever exhibits strong market power as their brand names are known and recognized in market. Unilever can increase the price of tea sold because it had been purchased from the tea growers at a high cost. Unilever now standing as a monopoly having control in price, will make much increase in market price of tea because there are very limited competitors. After they had increased the price, the contract between them and the tea growers had been over long ago since the tea growers have been paid at a stated price. As a monopoly, Unilever make triple the profit made by the tea growers because the grower cant stand on their own as an exporting well know corporation due to barriers of entry into the monopoly market. Even at the increase, Unilever will still be comfortable with its sales because most customers see tea as an essential grocery and buy it as it becomes more inelastic. Workers wages may not also be increased because there have been a report backed up with recent examples on how Unilever systematically violates workers and trade union rights through direct attacks on trade unionist as well as aggressive outsourcing and actualization. (Lenazun R., 2009). In several countries, Unilever is under investigation for price fixing, cartel arrangement and monopoly control.

PART B AGENCIES SET UP TO CONTROL ABUSE OF MARKET POWER IN UK The government created the office of fair trading (OFT) in the United Kingdom to protect the interest on consumers. This agency is the UKs consumer and competition authority. The OFT is free from political influence and its theoretically unbiased and was created in 1973 in an era of unparalleled development and experimentation in both economic policy and economic thinking. The OFT have many ways to make markets work in the interest for consumers and to make certain that these consumers have the widest choice possible across all the different sectors of the market place. This includes the analyzing of complaints and undertaking market studies to recommend it and when further action is warranted, targeting efforts and resources on behavior that poses the greatest threat to consumer welfare, such as cartel activity and deceptive practices by rogue traders. OFT also pays special attention to problems that affect large numbers of people and to the needs of vulnerable consumers. OFT believes that prevention is better than cure and with this in mind, they equip consumers and business alike with the knowledge needed to protect them. Further more, the OFT achieves its aim through collaboration with others. Partners include Sector regulators, Government, The Courts, the Competition Commission, the European local Authority Trading Standard Services and Business, consumers and their representatives. Those found guilty of illegal business practices and infringe on competition law can be fined up to 10% of their annual turnover. (Alphasono., 2008)
Actual case on the abuse of market power in UK British Airways (BA)

For years British Airways (BA) described itself as the worlds favorite airline. It no longer looks so popular in London and Washington. On August 1st 2007, the firm was hit with a transatlantic double whammy after it was found guilty of colluding with a rival, Virgin Atlantic to fix prices on long haul passenger routes. Britains Office of Fair Trading (OFT) handed down a record fine of 121.5m ($246m). A few hours later, Americas Department of Justice (DOJ) imposed a $300m penalty of its own. The severity of the American fine also reflected British Airways role in a different international conspiracy involving Korean Air and Lufthansa. This case was a clear example of illegal price-fixing. Collusion is difficult to prove because the colluders do their business in secret. The airlines price fixing was exposed after Virgins legal department alerted the authorities. This was no selfless dedication with consumers to consumers welfare. Virgin hoped to benefit from the leniency policy which was introduced in the 1998 Competition Act and copied with similar laws in America, granting protection to firms that blow the whistle. Virgin was just as involved as British airways in the price fixing and has presumably benefited from it financially. Not only that the airline was saving itself from the risk of prosecution, but it was also setting up a rival with whom it had a bruising relationship in the past. A transatlantic bust was particularly fitting for the OFT. (Riyanto Y., 2008, pp.22)

FISCAL AND MONETARY POLICY MANAGEMENT IN SOUTH AFRICA South Africa has undergone momentous political and socio-economic transformations during the past decade. Since the year 1994, South Africas democratic government has shown a persistent commitment to the modernization of the countrys economic policy and management architecture. Structural changes to fiscal and monetary policies have played the lead role in the progress of modernization and dynamic harmonization of economic governance in the country. The overarching challenge facing South Africas economic policy in mid-1990 arose from the interaction of macro policy credibility and of the political capability of those in charge of macroeconomic affairs. Despite the lack of credible macroeconomic strategy, fiscal policy was shown over again to respond to the exigencies of political pressure. To complicate the situation, nine new constitution provinces were created with extensive functions and responsibility that would bear major fiscal problems. Fiscal management was later handicapped by the inadequate depth of the appropriate skills within the South African structures. It was proved that the capabilities of the top management of the countrys fiscal affairs were more unsuited to the challenges brought about the mix of issues linked to either the domestic transition or the global financial conditions. This made the fiscal managers and the monetary authorities have even less opportunities for the institutionalized collaboration and policy co-ordination. The Government put in place a multi pronged strategy that dealt with both the macroeconomic and fiscal issues concurrently. The first task was given the prevailing global financial crises and creating a credible macroeconomic framework. Without this, no amount of fiscal engineering would have much chance of success due to the lack of policy credibility. In June 1996, South African Government declared that the Growth, Employment and Redistribution (GEAR) would constitute South Africas new macroeconomic strategy for a five year period. In terms of the new strategy, fiscal targets were aligned with the macroeconomic and financial conditions. Not stopping there, the strategy undertook to introduce trade liberalization together with a commitment to the restructuring of state owned enterprises along side a gradual relaxation of the prevailing exchange controls. Deficit and debt was managed down so as to relocate public resources to unavoidable social expenditures. (Iraj Abedian., 2005)
Three Key areas that areas that relates to the South Africas macro financial affairs.

I.

Debt Management Good Management is one of the key pillars of any sustainable frame work. In 1996, South African Government debt had reached 50% of Gross Domestic Product. During the 1996 debt annual interest payment on this debt was consuming nearly as much as the annual total national education budget. The opportunity cost of inappropriate debt management measured against money not spent on social sector was increasing every year. Nearly all the Government was domestic, partly because the country could not borrow in the global capital market during the later year. These debts had

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macroeconomic implication. The local capital market was dominated by the Governments financial needs, the private sector was crowded out and interest rates were pushed up accordingly.
Government debt as a % of GDP (domestic and foreign total gross debt)

*Government debt 1990-2004 cited in Iraj Abedian, 2005, p.2 This graph shows that from 1996 onwards, the overall debt to GDP ratio declined steadily and the composition was gradually but consistently altered to reduce the share of domestic capital used to finance governments revene short falls. II. Asset liability Management According to Iraj Abedian,2005 states like many other developing countries, South Africa had neglected this key aspect of fiscal management. In fact, the prevailing approach in the run up to the 1994 regime change could best have been described as a system of unco-ordinated fiscal irresponsibility. It was reported that Asset management with the public sector was not much better than liability management and that the Government department always had no meaningful register of their asset. As a result, neighter asset utilisation nor asset maintanance were receiving adequate attention. The government acted on the systematic reforms in the risk management dispensable in which; Governance frame work was in place for all state owned enterprises to ensure appropriate asset liability management for each entity. Government no longer issued guarantees freely without a choice but instead they are priced and charged to the entity concerned. The South Africa Reserve Bank ceased to issue forward contracts; instead the private banking sector developed a relatively deep foreign exchange market with a full range of spot and future contracts. Revenue Collection and Overall Deficit The South Africa Government spending on major social expenditure such as health, education, housing and social welfare was neither interrupted nor curtailed due to a sustain reduction in budget deficit from its height of 9.2% in 1994 to a decline of an actual deficit of 1.4% in 2002.

III.

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South Africa Budget deficit as % of GDP (Fiscal years)

*SA Budget deficit 1990-2004 cited in Iraj Abedian, 2005, p.8

South African Government Revenue and Expenditure Trends

*SA Budget Government Revenue and Expenditure trends 1996-2004 cited in Iraj Abedian, 2005, p.8 The combination of collection efficiency, improved tax morality and rising economic performance eventuated in a very unique fiscal configuration in South Africa. In the aversion of political credibility crisis as well as potential debt problem, the government opted to pursue a public debt deficit reduction strategy. In the process, public resources were freed for reallocation to other areas, most significantly social spending. (Maphiri D, 1999).

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Government finances avoiding deeper recession

The government budgets tend to go from surplus to deficit as the economy goes bad. This happens because when the economy goes into recession costing workers their jobs; it also at the same time causes corporate profit to decline. This results to less income task revenue. The economy can get bad and people would be unable to pay tax because of unemployment. During recession many companies will cut their pay rolls for good and even after the recession, most workers wont be rehired unless they are willing to settle for much lower wages and benefits. Once in a while the flow of income to government will still increase but at a slower rate than inflation meaning that in real terms, the flow of task revenue has fallen. As a result of these, the government receives less money from tax payers, while he spends more money. Since many workers have lost their jobs, there is increase use of government programs such as unemployment insurance. To help push the economy out of recession and to help those who have lost their jobs, governments often creates new social programs during times of recession and depression. Government spending then rises not just because of increased use of existing programs, but through the creation of new programs. The goal of avoiding recession is not only making jobs available but to make jobs that pays the employees well. It is the role of the government to make things right and as a result, government spending rises as more citizens are calling on government services to help them out through tough times. Money starts flowing off the government faster than it comes in causing the government budgets to go into deficit. (Moffatt M., 2002).

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SWOT ANALYSES OF GLAXOSMITHKLINE PHARMACEUTICAL COMPANY. GlaxoSmithKline is the worlds second largest pharmaceutical company. It was formed in 2000 as the result of a merger between two large companies GlaxoWellcome and SmithKlineBeecham. The SWOT analyses will be looking into the internal and external environmental factors of this company as if reveals the strength, weakness, opportunity and threats which are too important to be neglected by any business or Firm. Strength GSK is among the leading companies for corporate responsibility particularly on the issue of access to medicine. Corporate responsibility is important to GSK because its about how they achieve their goals and implements their business strategy. GSK aims to operate in a that reflects their values, while understanding and responding to the stakeholders views and connecting business decisions to ethical, social and environmental concerns. (Duncan L. 2006) They research into neglected diseases, managing to balance social expectations with business goals. Access to medicines is considered a key issue and a major strength for GSK. GSK has policies that facilitates access to drugs and shows leadership in the area with an investment in the WHOs three priority diseases. It has a stable commitment to conducting business with integrity and in full compliance of the law. The professional and personal responsibility of every GSK employee helps GSK to maintain its organizational integrity and good reputation. It launched training for new general managers and site directors on their compliance responsibility therefore making a wider monitoring and compliance arrangement for the company. GSK takes a long term approach with programs involving a high degree of partnership and dialogue with NGOs, Governments and Organizations such as the Gates Foundation. In return of investing in new drugs, GSK generally have around ten years of intellectual property protection on their products before generics can be made. GSK found a nicotine replacement therapy brand which has helped more than five hundred smokers quite since 1996, making a significant contribution to public health. The company is not only focusing in purely medicine categories of their products, but also they offer products that are leaders in their categories such as the Gaviscon and Panadol for their over-the-counter medicine or OTC; their Aquafresh and Macleans for their dental products; Nicoretter or Niquitin for their smoking control products; and their Lucozade, Ribena and Horlicks for their nutritional healthcare drinks. They are also showing good deeds by donating 155 million of albendazole tables that can help to eliminate lymphativ filariasis or known as the elephantiasis.

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Weakness of GSK
GSK is regulated by the FDA and subject to State and Federal laws. GSK have a poor advertisement. Advertisement helps a company to inform the public about the products that they are selling and services that they are offering. Advertisement is one of the most important aspects of marketing because it will serve as the pulling power to introduce the name or brand of a certain product to their target market. By not doing this, GSK is unable to gain the interest and curiosity of their target market and therefore finds it an extra effort to gain sales and improve their sales strategy. Barriers to reach out to all the rural areas and price of drug are not affordable for most consumers in the rural areas. GSK revenue depends on Patent protection. The profits from sales of prescription drugs usually weighs down once lower cost of generic alternatives are available. GSK as manufacturers of generic drugs have a constant source of new products as patent expires.

Opportunity of GSK
GSK has been building its position in developing markets such as China, India and Latham. These markets are growing at very high rates and are sustaining reasonable levels of profitability, although it will be a few years before in aggregate they account for enough of GSK's sales to have a significant impact on overall profits growth. GSK shows their work with the community by awarding scholarship to Students pursuing helping professions: nursing, exercise science, psychology, special education and medicine who have faced trauma, abuse or neglect; disease, disability or loss but despites all the odds, have made the grades for college and cant afford the price tag. By GSK giving opportunity scholarships, it furthers its mission by improving lives beyond their medicines and the students who read pharmacy will donate hands in the increase of GSK research and developments. Globalization is the primary aspect that enables trading, communications and transportation more easily. Innovation will help the company to retain and expand their current market. Aging of the population of the world is another factor, because, as a man grows old, he or she will be in great needs of medicines and other supplementary medicines. Another factor is the increasing awareness of the world about how important is heath. The outbreak of swine flu presents a great opportunity for GSK. The company is prepping for a huge sales boost from anti-viral, vaccines and other Flu-related products which some is worth $4.9billion.

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Threat of GSK
GSK finds it a difficult task to balance between the needs of different stakeholders. Their investors are concerned primarily with profits. Corporate responsibility is important to them because it affects the long term success of the company but the next quarter earnings are often a more pressing priority. The patent on many medicines that had driven the sales in GSK industry over the last decade are coming to an end and may not be replaced by products of equivalent financial size.GSK are under immense pressure from competitors and investors so therefore they find it difficult in reducing the price of their products in all markets. One of the most important risks that the GlaxoSmithKline is facing is the risk of the Research & Development. Not all of the innovations, development processes or improvement planning is sure to be one hundred percent successful. This is one of the highest leveled risks that the company is facing since they are spending much for a particular research or study. In order to prevent the risk of continuous spending for nothing, the company must set of rules or protocols that will distinguish whether to continue or not the process of a certain study and research. By doing this the company will prevent the dilemma of spending for nothing. Another problem is that presence of fake medicines in Asia, this is the result of the globalization that although helped many companies in many ways, it also has its own share of disadvantage in some ways. The company must also conduct studies and research that will mainly focus on the safety issues and interest of their consumer in distinguishing which product is fake and which one is the other way around. There are a number of complex factors that prevent access to medicines. There is often a limited prospect of a commercial return on R&D for neglected diseases; there is no unified registration system for medicines which makes the registration process costly, complex and time consuming; in many developing countries there is no distribution network for medicines and no healthcare infrastructure to treat patients and prescribe medicines. The high pricing strategy of GSK drugs affects the supply and demand. On the side of demand, drugs are prescribed by the physician but due to lack of the necessary information on the about the comparative prices, consumers attempt to gather or aggregate decentralized information by getting information from another patient that have been into that situation. On the other side of supply, pricing strategies are complicated by the fact that a firm can convey or permit programmed experiences to other firms. As a result, GSK is at threat of reduced market because most of the consumers, especially those who belong to the lower class category, always settle for low priced medicines. A disease like Cancer or Alzheimers tends to present extreme scientific challenges for GSK and requires novel scientific approaches which carry a greater risk of failure. According to the Generic drug makers ranked by sales, GSK has major competitors: Johnson & Johnson, Sanofi-Aventis, Watson Pharmaceutical Inc and Sandoz International thus If GSK reduces the price of their products at this competitive stage, they wont have an adequate return or wont be able to discover new medicines. GSK Pharmaceutical sector has been exposed to controversy regarding ethical and patients safety issues. As an industry they are in danger of

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eroding what trust they already have instead of building stronger relationship with Governments, Regulators and the general public. (Anon., 2009).

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REFERENCE Anon.,(2009). GlaxoSmithKline PLC. [Online]. September 29th, 2009. Available at: http://ivythesis.typepad.com [Accessed on 9th December, 2009]

Anon., (2009). Tea Consumption. [Online]. 12th November, 2009 Available at: http://www.shop.jaxteacompany.com [Accessed on 12th November, 2009] Alexandar Aginsky., (2009). Russian Tea Market Research Report. [Online] 28th September, 2009. Available at: http://www.russiablog.org [Accessed on 12th November, 2009] Allan Odhiambo., (2009). Volatility of Global tea prices. [Online] 6th October, 2009. Available at: http://multimedia.marsgroupkenya.org [Accessed on 21st November, 2009] Alphasono., (2008). Agency to set up control to the abuse of market power. [Online] 12th March, 2008. Available at: http://www.oppapers.com [Accessed on 2nd December, 2009] Birchley Emma., (2009). Tea shortage to send cost of a cuppa souring. [Online]. 3rd September, 2009. Available at: http://www.newssky.com/tea-rise-Kenya [Accessed on 21st November, 2009] Bradford Robert., (2009). SWOT Analysis. [Online] Available at: http://www.quickmba.com/strategy/swot [Accessed on 18th October, 2009] Bradford Robert et al., (2007). Simplified Strategic Planning. Interest Center for Business & Management [Online] Available at: http://www.quickmba.com/strategy/swot [Accessed on 26th October, 2009] Duncan Learmouth., (2006). Why is CR important to GSK? [Online article] Available at: http://www.gsk.com/responsibility/cr-review [Accessed on 26th October, 2009] Iraj Abedan., (2005). Fiscal and Monetary Policy Management in South Africa. PanAfrica Investment and Research services: Johannesburg.

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Lenazun., (2009). Company Profile Unilever. [Online]. 23rd September, 2009. Available at: http://www.crocodyle.org/wiki/unilever. [Accessed on 23rd October, 2009]

Maphiri D.,(1999). Treasurys Role in Promoting efficient Cash management. Evidence from South Africa: Johannesburg. Moffatt Mike.,(2002). Government spending and economic growth. [Online] Availability at: http://www.economics.about.com [Accessed on 10th November, 2009]

Pearson Chris., (2009). Price of tea. [Online]. 2nd September, 2009. Available at: http://www.economicshelp.org [Accessed on 18th November, 2009] Riyanto E.Yohanes., (2008). Collusion and Cartels. Industrial Organizations. Pg 22 Thomas Kutty Abraham., (2009). Global tea supplies to shrink more in dry spell. [Online]. 9th September, 2009. Available at: http://www.livemint.com [Accessed on 12th November, 2009]

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