Chapter - I Company Profile: An Organization Study

AN ORGANIZATION STUDY
CHAPTER – I
COMPANY PROFILE
BANGALORE INSITUTE OF MANAGEMENT STUDIES Page 1

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 Page 2

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
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
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 B
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 3/31
P/E Ratio (ttm) APPX 119.25 13.2 11 /31
PEG Ratio (ttm,
5 yr expected) AZN 5.19 3.1 3/31
Revenue
Growth (Qtrly
YoY) KERX 373.80% 1.70% 15/31
EPS Growth
(Qtrly YoY) LLY 108.40% -9.40% 10/31
Long-Term
Growth Rate (5
yr) WX 35.19% 4% 13/31
Return on
Equity (ttm) GSK 53.12% - 1/31
Long-Term
Debt/Equity
(mrq) GSK 1.112 - 1/31
Dividend Yield PFE 7.10% 4.30% 3/31

(annual)

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

Audi Corporate Corporate Financial Nomination Remuneration

t Administration Responsibility Results s
&
Transactions
Gent M C M C M
Witty M M
Anderson M M
Burns M M M
Culp M M M
Davis M M M
De Swaan C M M M
Heslop M M
Maughan M M M
Podolsky M M M M
Prosser M M M M M
Schmitz M M M M M
Slaoui 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
F.M F.M
Asst. F.M Asst. F.M Asst. F.M Asst. F.M
Accountant Accountant
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

 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 6,930
Goodwill 1,370 758
Other intangible assets 4,456 3,293
Investments in associates and joint ventures 329 295

Other investments 517 441

Deferred tax assets 2,196 2,123
Derivative financial instruments 1 113
Other non-current asset 687 608
Total non-current assets 17,377 14,561
Current assets
Inventories 3,062 2,437
Current tax recoverable 58 186
Trade and other receivable 5,495 5,237
Derivative financial instruments 475 80
Liquid investments 1,153 1,035
Cash and cash equivalents 3,379 2,005
Assets held for sale 4 12
Total current assets 13,626 10,992
Total assets 31,003 25,553
Current liabilities
Short-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 liabilities
Long-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
Equity
Share capital 1,503 1,498
Share premium account 1,266 858
Retained earnings 6,475 6,965
Other 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 activities
Purchase 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 per
Turnover, 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 HEAD
PERSONAL
MANAGER
HR
EXECUTIVE
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..

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 SALARY
Base 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 INCENTIVES
Executives 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
R.B.M R.B.M
A.B.M A.B.M A.B.M A.B.M A.B.M A.B.M A.B.M A.B.M
26 M.R 22 M.R 12 M.R 10 M.R 8 M.R 8 M.R 6 M.R 5 M.R
G.M.M : GENERAL MANAGER OF MARKETING

R.B.M : REGIONAL BUSINESS MANAGER
A.B.M : AREA BUSINESS MANAGER
M.R : MEDICAL REPRESENTATIVE

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
GENERAL MANAGER
OF PRODUCTION
WORKS MANAGER
SENIOR ENGINEER
ENGINEER
SUPERVISOR
OFFICE ASSISTANT

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
IT HEAD
S.M. S.M. S.M. S.M.
ASST. S.M. ASST.SM. ASST. S.M. ASST. S.M.
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.

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

www.gsk-india.com
www.nse-ind.com
HUMAN RESOURCE MANAGEMENT K. Ashwatappa
ORGANISATION BEHAVIOUR K. Ashwatappa
BUSINESS MANAGEMENT C.B.Gupta

Chapter - I Company Profile: An Organization Study

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Chapter - I Company Profile: An Organization Study

Uploaded by

Copyright:

Available Formats

AN ORGANIZATION STUDY

BANGALORE INSITUTE OF MANAGEMENT STUDIES Page 1

1.1 INTRODUCTION OF ORGANIZATION

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 Page 2

1.2 GSK’S WORLDWIDE MAP

United Kingdom Cyprus Iceland Netherlands Spain

BANGALORE INSITUTE OF MANAGEMENT STUDIES Page 3

Austria Denmark Italy Poland Switzerland

Argentina Costa Rica Honduras Uruguay

Brazil Ecuador Nicaragua Venezuela

Chile El Salvador Panama

Colombia Guatemala Peru

Dominican Republic Jamaica Trinidad

ASIA AND AUSTRALASIA

Australia Hong Kong New Zealand Uzbekistan

Azerbaijan India Pakistan

Bangladesh Japan Sri Lanka

China Korea Taiwan

Cambodia Malaysia Philippines Thailand

Indonesia Myanmar Singapore Vietnam

BANGALORE INSITUTE OF MANAGEMENT STUDIES Page 4

Algeria Morocco South Africa

Egypt Israel Saudi Arabia Turkey

1.3 INTRODUCTION OF THE COMPANY IN INDIA

BANGALORE INSITUTE OF MANAGEMENT STUDIES Page 5

1.4 GSK AT A GLANCE

BANGALORE INSITUTE OF MANAGEMENT STUDIES Page 6

 In 2007, our total community investment was valued

1.5 HISTORY 0F THE COMPANY

BANGALORE INSITUTE OF MANAGEMENT STUDIES Page 7

Burroughs Wellcome & Company is established in London by

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

The Wellcome Tropical Research Laboratories open

BANGALORE INSITUTE OF MANAGEMENT STUDIES Page 8

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

Glaxo acquires Allen and Hanburys Ltd.

BANGALORE INSITUTE OF MANAGEMENT STUDIES Page 9

SmithKline BioScience Laboratories acquires one of its largest competitors, International

1.6 DEVELOPMENT OF THE COMPANY

BANGALORE INSITUTE OF MANAGEMENT STUDIES Page 10

1.7 ORGANIZATION AWARDS

BANGALORE INSITUTE OF MANAGEMENT STUDIES Page 11

 CEO cancer gold standard

1.8 PRODUCTS OF THE COMPANY

GSK top selling products in 2007 are designed to treat:

BANGALORE INSITUTE OF MANAGEMENT STUDIES Page 12

Asthma , Epilepsy ,Diabetes , Herpes ,Migraine

Adartrel, Advair, Albenza, Alkeran, Altargo, Amerge, Amoxil,

Bactroban, Becloforte, Becodisks, Beconase, Becatide, Betnovate,

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

Imigran, Imitrex, Imuran, Innopran XL, Integrilin

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

Malarone, Mepron, Mivacron, Myleran

BANGALORE INSITUTE OF MANAGEMENT STUDIES Page 13

Parnate, Panil, Pentostam, Puri-Nethal, Pylorid

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