REF: AK 09/05/2018
Please write in business report style. Content should not be too academical, see guidelines sent separately.
Task 1
D) Organisational structure of GlaxoSmithKline plc (GSK).
“Explanation and analysis how the relationship between different organisational functions of GlaxoSmithKline plc (GSK) link to its objectives, the advantages and disadvantages of inte
elationships and the impact that can have upon organisational structure”
Task 2
You have been asked to demonstrate both the positive and negative impact the macro environment has on business operations and determine the internal strengths and weaknesses of specific businesses and explain their inte
elationship with external macro factors.
Task 2
3.0 Introduction
(Briefly explain what macro environment is? Briefly state the importance of macro environmental analysis to business success with reference to GlaxoSmithKline plc (GSK).
3.1 PESTEL Analysis
Using specific examples, identify the positive and negative impacts the macro environment has upon business operations, and apply the PESTLE model to support a detailed analysis of the macro environment of GlaxoSmithKline plc (GSK).
3.2 Introduction
(What do you understand by a macro environment? Briefly explain.)
3.2(a) Importance of macro environmental analysis to business success.
(Clearly state the importance of macro environmental analysis to a business)
3.2(c) SWOT Analysis
Conduct internal and external analysis of specific organisations in order to identify strengths and weaknesses and explain how they inte
elate with external macro factors. Justify how the strengths and weaknesses influence decision-making using the SWOT model. You can use GSK and another similar organisation.
3.3 Critically evaluate the impacts that both macro and micro factors have upon business objectives and decision-making
References
GUIDELINES ASSIGNMENT AK 09/05/18
NOTE
There are other students at my college who have submitted the same task on your website.
Please note that this report cannot be an exact copy of another similar report as I will need
to submit it via a plagiarism checker called Turnitin which means that this report should not
match another student’s report.
Report to CEO GlaxoSMithKline (GSK)
Prepare a report which critically evaluates the impacts that both macro and micro factors
have upon business objectives and decision-making. The report should cover the following:
1. Using specific examples, identify the positive and negative impacts the macro
environment has upon business operations, and apply the PESTLE model to support
a detailed analysis of the macro environment of GlaxoSmithKline plc (GSK).
2. Conduct internal and external analysis of specific organisations in order to identify
strengths and weaknesses and explain how they inte
elate with external macro
factors. Justify how the strengths and weaknesses influence decision-making using
the SWOT model.
Submission format
The report should be written in a concise, formal business style using single spacing, font
Cali
i 12. Use headings, paragraphs and subsections as appropriate.
All work should be supported with the Harvard referencing system and please provide
ibliography (https:
libweb.anglia.ac.uk
eferencing/harvard.htm.
Recommended word limit is 2000 – 2,500.
LO3: Use
contemporary
examples to
demonstrate both
the positive and
negative
influence/impact
the macro
environment has on
usiness operations.
P4 Identify the positive
and negative impacts
the macro environment
has upon business
operations, supported
y specific examples.
M3 Apply
appropriately the
PESTLE model to
support a detailed
analysis of the
macro environment
within an
organisation.
D2 Critically evaluate the
impacts that both macro and
micro factors have upon
usiness objectives and
decision-making.
LO4: Determine the
internal strengths
P5 Conduct internal and
external analysis of
M4 Apply
appropriately
https:
libweb.anglia.ac.uk
eferencing/harvard.htm
and weaknesses of
specific businesses
and explain their
inte
elationship
with external macro
factors.
specific organisations in
order to identify
strengths and
weaknesses.
P6 Explain how
strengths and
weaknesses inte
elate
with external macro
factors.
SWOT/TOWS
analysis and justify
how they influence
decision-making.
Task 3.0 , 3.2, 3.3 Macro Environment
TASK 3.1 PESTLE
Please also refer to attached PDF I sent.
AN OVERVIEW OF THE PESTEL FRAMEWORK
POLITICAL FACTORS
Politics plays an important role in business. This is because there is a balance between
systems of control and free markets. As global economics supersedes domestic
economies, companies must consider numerous opportunities and threats before
expanding into new regions. It also applies to firms identifying optimal areas for
production or sales. Political factors may even help determine the location of corporate
headquarters.
Some of the political factors you need to watch are:
• Tax policies
• Stability of government
• Entry mode regulations
• Social policies (e.g. social welfare etc.)
• Trade regulations (e.g. the EU & NAFTA)
ECONOMIC FACTORS
Economic factors are metrics that measure the health of any economic region. The
economic state will change a lot of times during the firm’s lifetime. You have to
compare the cu
ent levels of inflation, unemployment, economic growth, and
international trade. This way, you can ca
y out your strategic plan better.
Some examples of economic factors you can judge are:
• Disposable income of buyers
• Credit accessibility
• Unemployment rates
• Interest rates
http:
pestleanalysis.com/swot-opportunities
http:
pestleanalysis.com/swot-analysis-strategic-planning
• Inflation
SOCIAL FACTORS
Social factors assess the mentality of the individuals or consumers in a given market.
These are also known as demographic factors. Social indicators like exchange rates,
GDP and inflation are critical to management. They can tell when it is a good time to
o
ow. These factors help find out how an economy might react to certain changes.
The following are some social factors to focus on:
• Population demographics: (e.g. aging population)
• Distribution of Wealth
• Changes in lifestyles and trends
• Educational levels
TECHNOLOGICAL FACTORS
This step entails recognizing the potential technologies that are available. Technological
advancements can optimize internal efficiency and help a product or service from
ecoming technologically obsolete. Role of technology in business is increasing each
year. This trend will continue because R&D drives new innovations.
Recognizing evolving technologies to optimize internal efficiency is a great asset in
management. But, there are few threats. Disruptive innovations such as Netflix affect
usiness for CD-players. The best strategy is to adapt according to the changes. Your
strategies should sidestep threats and em
ace opportunities.
This is a large challenge for management. Below is a list of common technological
factors:
• New discoveries and innovations
• Rate of technological advances and innovations
• Rate of technological obsolescence
• New technological platforms (e.g. VHS and DVD)
ENVIRONMENTAL FACTORS
Both consumers and governments penalize firms for having adverse effect on the
environment. Governments levy huge fines upon companies for polluting. Companies
are also rewarded for having positive impact on the environment. The consumers are
willing to switch
ands if they find a business is ignoring its environmental duties.
Impact on the environment is a rising concern. Note that the environment benefits the
company too. Running water for a hydro-power plant is an example.
Few common environmental factors are:
• Waste disposal laws
• Environmental protection laws
• Energy consumption regulation
• Popular attitude towards the environment
LEGAL FACTORS
This step involves learning about the laws and regulations in your region. It is critical
for avoiding unnecessary legal costs.
This is the last factor in PESTEL. These factors overview the legal elements. Often,
start-ups link these elements to the political framework. Many legal issues can affect a
company that does not act responsibly. This step helps to avoid legal pitfalls. You
should always remain within the confines of established regulations.
Common legal factors that companies focus on include:
• Employment regulations
• Competitive regulations
• Health and safety regulations
• Product regulations
• Antitrust laws
• Patent infringements
It is common to conduct a PESTEL analysis before serious decisions. Managers might
conduct it before any large projects are undertaken. Understanding all the influencing
factors is the first step to addressing them.
Remember, there are many factors other than these which can have an effect on business
success. The evaluation is a one-to-one process. Each company should do it for
themselves and find the key drivers of change. You must identify the factors which have
strategic and competitive consequences.
Analyzing the total macro-environment is an extensive task. Even though, it is complex,
understanding the framework of basic influences will allow you to maintain an
organized and strategic approach. These will isolate each opportunity or threat.
After conducting a PESTEL analysis, company managers can create strategies. The
macro environmental factors will shape the strategies. I am sure that the thinking
process will be as sensitive as cu
ent and future environmental factors.
If you are planning to align strategies for your company, I suggest you should conduct
PESTEL analysis first. It is always good to have more information about the
su
ounding. The tool really helps take better decisions.
http:
pestleanalysis.com/analyse-pestel
TASK 3.2c SWOT
GlaxoSmithKline SWOT Analysis
The SWOT analysis technique can be used to identify the internal strengths and
weaknesses of GlaxoSmithKline (Armstrong, 2011, p. 46). The environmental
opportunities and strengths facing GlaxoSmithKline can also be identified using
the SWOT analysis technique. 32).
INFO about GlaxoSmithKline please do not copy the exact example below when you
write the assignment, these are just examples
GlaxoSmithKline Plc
GlaxoSmithKline is the leading pharmaceutical and health care company, which is working
est in the health sector. This is the world second largest pharmaceutical company and it
deals with customer health care, prescription medicines and vaccines, which are used for the
treatment of the patients, treatment of diseases, and prevention matters. The professional also
use these pharmaceutical medicines to seek the detection of the diseases and it has positioned
itself as the science led global healthcare company.
GSK is the leading pharmaceutical company, which has been working in the pharmaceutical
markets for last many decades. This company earned good reputation over the quality of its
medicines. The company spends enough money to ca
y out R&D to find the new products
and it involves in the production of new healthcare medicines in the market. It has
professional and trained employees, who are well aware of process of manufacturing of the
medicines and know the international standards to meet their requirements. GSK is