Chapter I Company Profile

AN ORGANIZATION STUDY
CHAPTER I COMPANY PROFILE
BANGALORE INSITUTE OF MANAGEMENT STUDIES
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AN ORGANIZATION STUDY 1.1 INTRODUCTION OF ORGANIZATION

GSK is one of the few pharmaceutical companies researching both medicines and vaccines for the World Health Organizations 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 its 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
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1.2 GSKS WORLDWIDE MAP
GSK WORLDWIDE EUROPE United Kingdom Albania Austria Armenia Belarus Belgium Bosnia Herzegovina Bulgaria Croatia Cyprus Czech Republic Denmark Estonia Finland France Germany Greece Hungary Iceland Ireland Italy Kazakhstan Latvia Lithuania Macedonia Malta Moldova Netherlands Norway Poland Portugal Romania Russia Serbia Slovakia Slovenia Page 3 Spain Sweden Switzerland Ukraine
NORTH AMERICA United States CENTRAL AND SOUTH AMERICA Argentina Brazil Chile Colombia CARIBBEAN Dominican Republic ASIA AND AUSTRALASIA Australia Azerbaijan Bangladesh China SOUTHEAST ASIA Cambodia Indonesia AFRICA Algeria Kenya M IDDLE EAST Morocco Nigeria South Africa Malaysia Myanmar Philippines Singapore Thailand Vietnam Hong Kong India Japan Korea New Zealand Pakistan Sri Lanka Taiwan Uzbekistan Jamaica Trinidad Costa Rica Ecuador El Salvador Guatemala Honduras Nicaragua Panama Peru Uruguay Venezuela Canada Mexico
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AN ORGANIZATION STUDY 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. GSKs best-in-class field force, backed by a nation-wide network of stockists, ensures that the Companys 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.
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AN ORGANIZATION STUDY 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.
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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 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. younger
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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.
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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." BANGALORE INSITUTE OF MANAGEMENT STUDIES Page 9
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 Groups products are the USA, France, Japan, the UK, Italy, Germany and Spain.
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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 Helping employees health and performance Awards for excellence 2007 ergonomics recognize links
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1.8 PRODUCTS OF THE COMPANY M EDICINES

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 BANGALORE INSITUTE OF MANAGEMENT STUDIES Page 12
AN ORGANIZATION STUDY 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:
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AN ORGANIZATION STUDY 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.
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LIST OF CONSUMER HEALTHCARE BRANDS : 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, Goodys 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
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AN ORGANIZATION STUDY Scatts Emulsion, Sensodyne, Shumitect, Solpdeine, Somiex, Stanback, Super Poligrip, Super wernets, Synthal Tagamet, Targon,Tums Valda, Viva, Vivarin Zontac, Zavirax ETC.
1.9 COMPETITORS
M EDICINES The pharmaceutical industry is competitive. GlaxoSmithKline believes that its competitive position is dependent upon the discovery and development of new products, together with effective marketing of existing products. 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 GlaxoSmithKlines 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 GlaxoSmithKlines 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. Infanrixs major competitors are Aventis Pasteurs Tripedia and TriHIBit, and Wyeth Ayersts Acel-Imune and Tetramune. Within highly
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AN ORGANIZATION STUDY CONSUMER HEALTHCARE The major competitors in the consumer healthcare markets are Procter & Gamble, ColgatePalmolive, 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.
COM PETI TOR s CHART

GSK VS INDUSTRY LEADERS BANGALORE INSITUTE OF MANAGEMENT STUDIES Page 17
Statistic Market Capitalization P/E Ratio (ttm) PEG Ratio (ttm, 5 yr expected) Revenue Growth (Qtrly YoY) EPS Growth (Qtrly YoY) Long-Term Growth Rate (5 yr) Return on Equity (ttm) Long-Term Debt/Equity (mrq) Dividend Yield (annual) Industry Leader JNJ 186.73B APPX 119.25 AZN 5.19 GSK 125.67B 13.2 3.1 GSK Rank 3/31 11 /31 3/31
KERX LLY
373.80% 108.40%
1.70% -9.40%
15/31 10/31
WX GSK
35.19% 53.12%
4% -
13/31 1/31
GSK PFE
1.112 7.10%
4.30%
1/31 3/31
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CHAPTER II ORGANIZATION STRUCTURE (HIERARCHY)
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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 BANGALORE INSITUTE OF MANAGEMENT STUDIES Page 20
AN ORGANIZATION STUDY Sir Robert Wilson - Non-Executive Director
M EMBERSHIP OF BOARD COMMITTEES IS INDICATED IN THE TABLE BELOW

Corporate Corporate Administration Responsibility & Transactions Gent M C Witty M Anderson M Burns M M Culp M Davis M De Swaan C M M Heslop M Maughan M M Podolsky M M M Prosser M M M Schmitz M M Slaoui M Viehbacher M Wilson M M Key : C = Chairman M = Member Audit Financial Results Nominations Remuneration
M M M M M M M M M M M M M M M
M M
M M
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
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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 Stphenne - 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
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2.2 GSKS MANAGEMENT IN INDIA

B OARD 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
M ANAGEMENT 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
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CHAPTER III FUNCTIONAL DEPARTMENTS (DIVISION)
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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 Page 26
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

m Turnover Cost of sales Gross profit Selling, general and administration Research and development Other operating income Operating profit Finance income Finance costs Share of after tax profits of associates and joint ventures Profit before taxation Taxation Profit after taxation for the year Profit attributable to minority interests Profit attributable to shareholders 22,716 (5,317) 17,399 (6,954) (3,327) 475 7,593 262 (453) 50 7,452 (2,142) 5,310 96 5,214 5,310 Basic earnings per share (pence) Diluted earnings per share (pence) BANGALORE INSITUTE OF MANAGEMENT STUDIES 94.4p 93.7p
2006
m 23,225 (5,010) 18,215 (7,257) (3,457) 307 7,808 287 (352) 56 7,799 (2,301) 5,498 109 5,389 5,498 95.5p 94.5p Page 27
BALANCE SHEET
2007 m
Non-current assets Property, plant and equipment Goodwill Other intangible assets Investments in associates and joint ventures Other investments Deferred tax assets Derivative financial instruments Other non-current asset Total non-current assets Current assets Inventories Current tax recoverable Trade and other receivable Derivative financial instruments Liquid investments Cash and cash equivalents Assets held for sale Total current assets Total assets Current liabilities Short-term borrowings Trade and other payables Derivative financial instruments Current tax payable Short-term provisions Total current liabilities Non-current liabilities Long-term borrowings Deferred tax liabilities Pensions and other post-employment benefits Other provisions ivative financial instruments Other non-current liabilities Total non-current liabilities Total liabilities Net assets Equity Share capital Share premium account Retained earnings Other reserves Shareholders equity Minority interests Total equity 7,821 1,370 4,456 329 517 2,196 1 687 17,377 3,062 58 5,495 475 1,153 3,379 4 13,626 31,003 (3,504) (4,861) (262) (826) (892) (10,345) (7,067) (887) (1,383) (1,035) (8) (368) (10,748) (21,093) 9,910 1,503 1,266 6,475 359 9,603 307 9,910
2006 m
6,930 758 3,293 295 441 2,123 113 608 14,561 2,437 186 5,237 80 1,035 2,005 12 10,992 25,553 (718) (4,831) (40) (621) (1,055) (7,265) (4,772) (595) (2,339) (528) (60) (346) (8,640) (15,905) 9,648 1,498 858 6,965 65 9,386 262 9,648
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CASH FLOW STATEMENT

Cash flow from operating activities Cash generated from operations Taxation paid Net cash inflow from operating activities Cash flow from investing activities Purchase of property, plant and equipment Proceeds from sale of property, plant and equipment Proceeds from sale of intangible assets Purchase of intangible assets Purchase of equity investments Proceeds from sale of equity investments Share transactions with minority shareholder Purchase of businesses, net of cash acquired Disposal of businesses and interest in associates Investments in associates and joint ventures Interest received Dividends from associates and joint ventures Net cash outflow from investing activities Cash flow from financing activities (Increase)/decrease in liquid investments Proceeds from own shares for employee share options Shares acquired by ESOP Trusts Issue of share capital Purchase of own shares for cancellation Purchase of Treasury shares Increase in long-term loans Repayment of long-term loans Net increase in/(repayment of) short-term loans Net repayment of obligations under finance lea Interest paid Dividends paid to shareholders Dividends paid to minority interests Other financing cash flows Net cash outflow from financing activities Increase/(decrease) in cash and bank overdrafts Exchange adjustments Cash and bank overdrafts at beginning of year Cash and bank overdrafts at end of year Cash and bank overdrafts at end of year comprise: Cash and cash equivalents Overdrafts
2007( m) 2006(m) 8,203 (3,846) 4,357 (1,366) 43 175 (224) (57) 32 (157) (273) 5 (13) 299 15 (1,521) (55) 151 316 (1,348) (739) (34) (414) (2,598) (87) 16 (4,792) (1,956) (254) 3,972 1,762 2,005 (243) 1,762 Page 29
8,080 (1,919) 6,161 (1,516) 35 9 (627) (186) 45 (1,027) (1) 247 12 (3,009) (39) 116 (26) 417 (213) (3,538) 3,483 (207) 1,632 (39) (378) (2,793) (77) (79) (1,741) 1,411 48 1,762 3,221 3,379 (158) 3,221
STATEMENT OF RECOGNISED INCOME AND EXPENSE

Exchange movements on overseas net assets Tax on exchange movements Fair value movements on available-for-sale investments Deferred tax on fair value movements on available-for-sale investments Exchange movements on goodwill in reserves Actuarial gains/(losses) on defined benefit plans Deferred tax on actuarial movements in defined benefit plans Fair value movements on cash flow hedges Deferred tax on fair value movements on cash flow hedges Net profits/(losses) recognised directly in equity Profit for the year Total recognised income and expense for the year Total recognised income and expense for the year attributable to: Shareholders Minority interests 6,012 122 6,134 5,307 88 5,395 425 21 (99) 19 (14) 671 (195) ( 6) 2 824 5,310 6,134 (390) (78) 84 (15) 31 429 (161) (5) 2 (103) 5,498 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. GSKs 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: BANGALORE INSITUTE OF MANAGEMENT STUDIES Page 30
AN ORGANIZATION STUDY 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 Groups 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 BANGALORE INSITUTE OF MANAGEMENT STUDIES Page 31
AN ORGANIZATION STUDY 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
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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
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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 companys 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.
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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.. BANGALORE INSITUTE OF MANAGEMENT STUDIES Page 35
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.
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AN ORGANIZATION STUDY 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. 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 whos output can be directly measured. BANGALORE INSITUTE OF MANAGEMENT STUDIES Page 37 The company gives
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 BANGALORE INSITUTE OF MANAGEMENT STUDIES Page 38
AN ORGANIZATION STUDY 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 Executives 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 employees 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.
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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
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FUNCTIONS OF M ARKETING 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 products 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 BANGALORE INSITUTE OF MANAGEMENT STUDIES Page 41
AN ORGANIZATION STUDY 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.
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AN ORGANIZATION STUDY In Japan, GSK has a separate and distinct Code that is based on both the Japan Pharmaceutical Manufacturers 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.
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REGIONAL ANALYSIS
Pharmaceutical turnover by geographic region in 2007 on an invoiced basis The turnover reported in the table below represents sales invoiced by GSKs local entity to its customers in the local market plus copromotion income within each market
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THIS GRAPH SHOWS SALES AND CONSTANT EXCHANCE RATE GROWTH BY REGION OF GSK
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3.4 PRODUCTION DEPARTMENT

GSKs 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.
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HIERARCHY OF PRODUCTION DEPARTMENT
GENERAL MANAGER OF PRODUCTION WORKS MANAGER
SENIOR ENGINEER
ENGINEER
SUPERVISOR
OFFICE ASSISTANT
M ANUFACTURING OPERATIONS
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AN ORGANIZATION STUDY 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 corporations 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
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AN ORGANIZATION STUDY 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 GSKsponsored 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 professionals practice Sponsoring independent medical education or providing charitable contributions BANGALORE INSITUTE OF MANAGEMENT STUDIES Page 49
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, competitors 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
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AN ORGANIZATION STUDY 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:
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AN ORGANIZATION STUDY 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. BANGALORE INSITUTE OF MANAGEMENT STUDIES Page 52
AN ORGANIZATION STUDY 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.
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CHAPTER-IV SWOT ANALYSIS
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AN ORGANIZATION STUDY 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: THREATS Competition Government policies BANGALORE INSITUTE OF MANAGEMENT STUDIES Page 55 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.
AN ORGANIZATION STUDY High cost of raw material and labour Labour availability Power
MISSION
GSKs 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

GlaxoSmithKlines 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 GSKs priorities, expressed by the business driver BANGALORE INSITUTE OF MANAGEMENT STUDIES Page 56
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 GSKs 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.
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AN ORGANIZATION STUDY 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.
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CHAPTER-V SUGGESTIONS AND CONCLUSIONS
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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 GSKs 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 GSKs 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
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BIBLIOGRAPHY
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www.gsk.com www.gsk-india.com www.nse-ind.com HUMAN RESOURCE MANAGEMENT ORGANISATION BEHAVIOUR BUSINESS MANAGEMENT K. Ashwatappa K. Ashwatappa C.B.Gupta
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Chapter I Company Profile

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AN ORGANIZATION STUDY

CHAPTER I COMPANY PROFILE

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AN ORGANIZATION STUDY 1.1 INTRODUCTION OF ORGANIZATION

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1.2 GSKS WORLDWIDE MAP

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AN ORGANIZATION STUDY Egypt Israel Saudi Arabia Turkey

1.3 INTRODUCTION OF THE COMPANY IN INDIA

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1.4 GSK AT A GLANCE

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1.5 HISTORY 0F THE COMPANY

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1.6 DEVELOPMENT OF THE COMPANY

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1.7 ORGANIZATION AWARDS

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1.8 PRODUCTS OF THE COMPANY M EDICINES

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CONSUMER HEALTHCARE BRANDS

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COM PETI TOR s CHART

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CHAPTER II ORGANIZATION STRUCTURE (HIERARCHY)

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2.1 ORGANIZATION MANAGEMENT

NAME OF BOARD OF DIRECTORS

AN ORGANIZATION STUDY Sir Robert Wilson - Non-Executive Director

M EMBERSHIP OF BOARD COMMITTEES IS INDICATED IN THE TABLE BELOW

CORPORATE EXECUTIVE TEAM

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2.2 GSKS MANAGEMENT IN INDIA

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CHAPTER III FUNCTIONAL DEPARTMENTS (DIVISION)

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3.1 FINANCE DEPARTMENT

HIERARCHY OF FINANCE DEPARTMENT

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THE MAJOR FUNCTIONS OF THE DEPARTMENT

FINANCIAL STATEMENT  INCOME STATEMENT 2007

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 CASH FLOW STATEMENT

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 STATEMENT OF RECOGNISED INCOME AND EXPENSE

NOTE ON FINANCIAL STATEMENT

2007 PERFORMANCE OVERVIEW

THIS GRAPH SHOWS ANNUAL TURNOVER OF GSK

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THIS GRAPH SHOWS EARNING PER SHARE OF GSK

THIS GRAPH SHOWS TOTAL SHAREHOLDER RETURN OF GSK

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THIS GRAPH SHOWS SHARE PRICE OF GSK

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3.2 HUMAN RESOURCE DEPARTMENT

HIERARCHY OF HUMAN RESOURCE DEPARTMENT

FINANCIAL STATEMENT INCOME STATEMENT 2007

CASH FLOW STATEMENT

STATEMENT OF RECOGNISED INCOME AND EXPENSE