S/B/99. Corporate strategy of GlaxoSmithKline

In todays competitive global business environment, the increasing number of M&A, (Mergers and acquisitions) has presented companies with a new set of opportunities and challenges to consider. This has made the business world become more demanding as organizational leaders attempt to integrate the business strategies, operations, and cultures of the different companies in order to survive and grow. As a result, several companies and in order to survive are coming together to face the challenges. I shall demonstrate why companies adopt growth strategies and analyze the causes of mergers and acquisitions by illustrating an M&A activity. The company of which I have chosen is GlaxoSmithKline, (GSK), a world leading research-based pharmaceutical and healthcare company. I shall explain why it merged in the pharmaceutical industry and assess through the implementation of several strategic applications whether the merger was a success or a not. I will be discussing several key issues including the effects of globalization with regard to several key issues that played a pivotal role in determining the degree of GSKs performance. Moreover I will discuss the factors affecting the pharmaceutical industry which have a direct effect on the decisions that GSK took. The following essay provides an analysis and theoretical understanding of the corporate world. Finally I shall come to a conclusion in which I will asses whether the company that I have chosen has a prospective future and whether it is able to sustain a competitive advantage through the adoption of its strategy.