GlaxoSmithKline (GSK) is amongst the top 20 FT Global 500 companies and among the top 5 pharmaceutical companies in the world. GSK develops, produces and promotes in two industry sectors: Pharmaceuticals and Consumer Healthcare. The company, through its Pharmaceuticals segment, focuses on provides prescription pharmaceuticals and vaccines. Its Consumer Healthcare segment provides OTC medicines, Oral healthcare and Nutritional healthcare (Datamonitor, 2005).

The company mainly operates in 120 countries and its promotion is done in over 150 countries. It’s headquarter is in Brentford, UK and employees are 99,913 as of December 31, 2009. GSK’s history goes as far back as 1859 when Beecham opened the world’s first factory built solely for making medicines at St Helens in England. Since that time the group has passed through many phases, but the turning point came during the merger of Glaxo Welcome and SmithKline Beecham in 2000, it had also seen a merger of Glaxo and Welcome in 1995 (Glaxo, 1998). There was a main impact on the society, structure, stakeholders and policy of the company due to this combination.

The company recorded revenues of £28,368 million ($44,422.3 million-) during the financial year (FY) ended December 2009, an increase of 16.5% over FY2008. The operating profit of the company was £8,425 million ($13,193 million-) during FY2009, an increase of 18% over FY2008. The net profit was £5,669 million ($8,877.3 million-) in FY2009, an increase of 20.3% over FY2008. – Calculated using the constant conversion rate of £1 = $1.56593 for the year ended December 31, 2009. (Source: http://www.researchandmarkets.com) Improvement is at the spirit of GSK’s aims and the company promotes this through its exceptional culture. The objective of the company as described by its Annual Report 2009 is to become the undisputable leader in the pharmaceutical and consumer health industry (Glaxo, 2009). The strategies of GSK is to paying attention the business around the deliverance of three strategies priorities-Grow a diversified universal business- Broadening and matching their portfolio, diversifying into latest products areas and capturing chances that exist outside their recognized geographic footprint. Distribute more products of value- Transforming R& D to make sure they not only deliver the urgent pipeline but are also capable to uphold the stream of products for days to come. Simplifying the working model- to make sure that is well for purpose and capable to maintain their business in the most cost efficient manner. (http://www.gsk.co.uk)

02. Changes are being affected by the Economy

Strategic development effects the company in different ways. To evaluate atmosphere of any organization we have to understand the connection with different problems and matter with one another and the outcome of that particular areas. It includes the characteristic those are political (taxason policy, foreign trade regulation, government stability), economical (unemployment, disposable income), social (life style change, level of education), technological (government spending on research, speed of technology transfer), environmental (company’s responsibility to society) and legislative (cod