Harvard Business School Case: Smithkline Beecham. Corporate Strategy. Scope, Scale,5 Forces, Swot, Direction, Long Term, Competitive Advantages, Stakeholders.

3045 words - 12 pages

1.DirectionThe first key concept of strategy is the direction the company wants to follow. The direction of SmithKline Beecham clearly adjusts in order to cope with the increasing competition in the pharmaceutical industry.In 1989, SmithKline Beecham was formed out of a merger of SmithKline Beckman and the Beecham Group. Five years later, the Annual Report Chief Executive Leschly wrote: "Through a series of strategic acquisitions and disposals, SB made progress in its transformation from a company made up of four successful, but separate, businesses into a unified organisation focused on human healthcare."To reach SB's philosophy several actions were taken by management:·they were the second firm that integrated vertically (with DPS);·DPS was sold in 1999 because of failed efforts to control distribution channels;·It divided its operations into four and later in three businesses: SB Pharmaceuticals, SB Healthcare Services and SB Consumer Healthcare.The direction of the management can best be seen as 'vision' because of their philosophy. They have a vision and want to achieve it, no matter what road they take. The figure below represents this approach.2.Long termThe most eye-catching trait of the current global pharmaceutical industry is that the largest pharmaceutical companies consolidate to become the number one in the industry. For example the merger between Zeneca and Astra, which became AstraZeneca, which is now the world leading pharmaceutical company. These facts were all to the detriment of SmithKline Beecham, which became smaller in comparison with its giant competitors .SB slipped from the 4th position in rank to the 9th player in the market in eight years, since 1989. Therefore it focused on a merger strategy and went into merger talks with AHP and later with Glaxo Wellcome. A merger with Glaxo would make the new combination a number one, with around 8% market share. Currently the merger talks with Glaxo Wellcome seem to be failed, but if the goal is to be a giant, this is the road to become one.3.Environment (STEP, Porter, SWOT)STEPSocio-cultural factorsThe demand for medicines changed in the last 20-30 years. There is a clear shift from antibiotics towards more complex drugs for cancer, heart diseases and more. The effectiveness of these drugs is more difficult to test and requires a longer R&D process. A trend of increasing use of drugs is recognised. Consumers are showing an increasing tendency towards taking responsibility for their own health. Also a rising standard of living in many developed countries is affecting the pharmaceutical industry.TechnologicalThe industry adopts in the last decades more and more science based research technology. As a result of new analysing techniques the approval process can be reduced significantly. There is also a change in the distribution structure of drugs. More and more drugs will be bought on the internet in the future. The computer techniques and especially the...

Find Another Essay On Harvard Business School case: Smithkline Beecham. Corporate strategy. Scope, Scale,5 forces, SWOT, Direction, long term, Competitive advantages, Stakeholders.

This is a five forces analysis for the "Cola Wars" Harvard Business School case.

746 words - 3 pages Untitled 5) The Cola Wars have been raging for many years, mainly between Pepsi and Coca-Cola. There have been, and are, minor players in the game, who are able to exist, but none of these have a share of the carbonated soft drink (CSD) market that comes close to equaling Pepsi or Coke. To evaluate the CSD industry, I will use Porter's Five Forces Model. First, one must look at the center of the model, which talks about the

Dell's Long Term Objectives: Strategy Formulation and Implementation

1169 words - 5 pages Environmental Analysis of Dell OrganizationDell's external environment identifies all the current conditions and forces that affect its strategic options and define its competitive situation. It consists of three main sectors: the Remote Environment, the Industry Environment, and the Operating Environment. All of these environmental sectors affect the firm's operations both on an international and domestic level.Remote EnvironmentIn recent years

Ryan Air focusing on Core competencies (cc) and value adding elements , Pest analysis and five forces framework, Strategic choices available and Future strategy and new direction for RA

2696 words - 11 pages frequency of fliers are those which are traveling for shorter number of days.FUTURE STRATEGY AND NEW DIRECTION FOR RATaking RA as a whole along with inter-dependent activities as the CC factors, it is quite natural that its competitors cannot imitate the CC factors implemented. Although it is also necessary to extend it competencies to make sure that RA has a lead on its competitors.According to the SWOT analysis the power of offering the largest

Discuss Net Present Value (NPV) Payback has certain advantages, but disadvantages for long term project appraisal. Discuss.

1289 words - 5 pages INVESTMENT APPRAISALCharacteristically, a decision to invest in a capital project involves a largely irreversible commitment of resources that is generally subject to a significant degree of risk. Such decisions have far-reaching effects on a company's profitability and flexibility over the long term, thus requiring that they be part of a carefully developed strategy that is based on reliable appraisal and forecasting procedures.In order to

Aqualisa Quartz is case study of Harvard business school.

1527 words - 6 pages not to over-state the market potential of the Quartz yet large enough so as to account for those customers.Source: Moon, 15.Works CitedMoon, Youngme and Herman, Kerry. Aqualisa Quartz: Simply a Better Shower. Case. Boston, MA: Harvard Business School, 2002.

Comparative religion: Eastern (Hinduism, Buddhism, and Taoism) and Western (Christianity, Judaism, and Islam) religions compared. This was a term paper and is quite long (about 5 pages).

1297 words - 5 pages be slowing down, very slowly. The future of religion is identical to the future of human existence. As long as human beings are around, they will use religion to place themselves in this world and understand themselves. As humans, we tend to be very self-important and make ourselves feel better about ourselves, and give ourselves meaning so we do not feel that we do not have a significant place in the world.

Answers to the 3M Business Case published by Harvard Business school.

550 words - 2 pages Summary: Keeping the "pace" of innovation is a primary objective to 3M managers and the success of Computer Privacy Screen project, by itself, is irrelevant in the scope of maintaining such entrepreneurial flow. Assuming this project fits into the desired "pace" of innovation, Guehler should approve it; Wong should support it unconditionally.Intrapreneurship at 3M: With a requirement that divisions derive 30% of sales from products introduced

Strategic marketing Management of Dell - Analysing Harvard Business School case "Dell - The New Horizon"

4465 words - 18 pages This MBA level essay talks about the future of Dell and how it can sustain the success and growth it have been enjoying for the past few years, taking in consideration the current economical difficulties that the US economy is facing. The "Dell - The New Horizon" case from Harvard Business School inspired and provided important data for this analysis. Titled "strategic marketing Management of Dell" the essay answers questions such as:1)Based on

Questions and Answers to Lincoln Electric case study by Harvard Business School.

858 words - 3 pages What features of LECO account for its long-term success in the US? There are several factors that have contributed to the long-term success of Lincoln Electric in the US. Most notably, the productivity of the labor force and the efficiency of operations have generated a competitive advantage over the market. Existing and potential competitors are not able to produce at the same low costs and subsequently are not able to offer competitive prices

Harvard Business School Case Study #9-601-142 Moore Medical Corporation

861 words - 3 pages What problems and challenges are faced by Moore at the time of the case?Moore Medical Corporation is strategically focusing on practitioner business by offering a relatively broad product range (thereby providing ?one-stop shopping?.Moore Medical is a medium-sized distributor of medical supplies to practitioners such as podiatrists and emergency medical technicians. Up to the time of the case, it has relied on traditional customer channels such

Marketing Case Study on CLUST.com, an e-business company, 3 strategic alternatives with SWOT, Porter's five forces provided.

779 words - 3 pages consumer creation and exclusives or remain the same to have both). But the problem is which one to take?Evidence of problem"Palix believed that two board alternative paths were conceivable: Clust could focus purely on group buying, or it could broaden the website's offerings, with less emphasis on getting consumers a low price."Effects of problemBy defining the strategy to go ahead, profitability and long term outlook will be effected.Strategic

Similar Essays

Corporate Strategy: Steakhouse Case, Swot Analysis, Competitors, M. Porter´S Forces...

2249 words - 9 pages , decentralised lean management-franchisees live in their area-corporate culture-location strategy: nicheFinance-high stock price allows further expansionGenerally the efficiency of the production is neglected but as Outback embarks on a differentiation and niche strategy that doesn't affect its competitiveness. All other building blocks of competitive advantages are addressed, its products are of excellent quality, its products as well as the management

5 Competitive Forces Essay

854 words - 3 pages restCompetition between online and offline companiesLevel of advertising expensePowerful competitive strategy - understanding the advantages and resources of the product/firm and then using them to their full potential. VF's network of brands with an efficient distribution system is one such strong strategy to increase revenues/market share/profits.Firm concentration ratioDegree of transparency

Starbucks Identifying The Corporate Missions Industry Structure Swot Analysis Core Competencies And Competitive Advantage Strategy Recommendations Potential Fallout

3451 words - 14 pages buying volumes due to its specialism in all things coffee.A long range of customer loyaltySuperior qualityGood Training and Management systemWeaknessesDue to more competition in coffee business, and all competitive pressures increase, the company could be undercut by lower price.It shows of dependency on coffee and coffee related products only.As it is US based company, it is more focusing on the US domestic market.OpportunitiesWith wild product

Strategy Structure Linkage For Long Term Results

5105 words - 20 pages strategy structure linkage in order to achieve long term results. If a strategy structure mismatch transpires in any company, survival of the company will become questionable.3. The Real Portrait of the OrganizationAn eligible personality, Mr. G. V. D. Wickramasinghe, from southern migrated to Colombo and started his own small scale business of distribution at Maradana in 1950s. When his business was glowing, he thought of moving further and started