Delivery in day(s): 5
Diploma in Business
Unit Number and Title
Unit 1 Business Environment
Business environment is the sum of both the internal and external environment in the organization thus management can easily identify the pros and cons of the plan in the organization. GSK is the British pharmaceutical organization that is headquartered in Brentford London. The current report identifies the purpose of different organization and states the objectives of Glaxo SmithKline Plc in context of stakeholders, employees etc. The study explains the responsibilities of GSK regarding health and safety, equal opportunity, social responsibility and taxation and assesses the impact of fiscal and monetary policies of GSK. It assess how UK competition policies have impacted on the activities of management and explain the forces of demand and supply affects the pricing and sales decisions of organization. The report identifies the benefits of international trade to UK business organizations and assesses the global factors that affect the organization.
Figure 1 GSK
Different organization plays vital role to achieve the management goals. The purpose of different organization depends on the nature of the business thus it can be said that management can easily fulfill the demand of the clients. The main objective of all the organization is to maximize the profits and increase the customer base for the development of organization. The demand and supply of services help the business to achieve the competitive advantage. Various factors affect the affects the objective of business by which they are not able to fulfill the demand of the clients. The foremost objective of the business is to meet the expectations of the stakeholder and try to motivate the employees to do better. The macro and micro factors help the management to meet the desire of the stake holders and try to raise the efficiency of the employees to meet the management goals. Following are the different organization and they have different objective regarding growth and stakeholders:
Organization follows different kind of strategies that help management to meet the expectation of stake holders. Stakeholder is defined as the term that helps the business to meet the financial expectation of the organization. It creates financial base for the organization that can be achieved with the help of stakeholder only. They affect the organization in both negative and positive way. Basically stakeholders are classified in two terms internal and external stakeholders and they have various interest in the business like interest over the invested capital, salary of the employees, suppliers etc. Internal stake holders are employees, customers, management etc. External stakeholders are suppliers, government etc. Following are the stake holders that are important to the organization:
Table 1 Strategies and objectives of GSK
Benefits as per the investment and provide dividend on time.
Proper division of profits, loss and dividends
Fulfill the demand
Follow the legal procedures
Update with the legal formalities
Welfare of the society
Eco logical products
The main liability of the organization is to fulfill the demand of the clients and design the innovative product for the growth of the organization. Organization is liable to meet the desire of the clients. Following are the liability of the organization towards stakeholders:
Table 2 Responsibilities of GSK
Type of Responsibility
Share holder and partner
Anti production unit
Pay on time
Health and safety
According to the law
There are three types of market in the economy that affects the whole economic system in the country. The governments of different nations are using the economic systems that are beneficial for maintaining growth. Following are major economic systems that have been used:
Figure 2 Types of economic system
For the organization it is important to evaluate appropriate market that helps to get the long term benefits for business and meet the objectives. Moreover, it is important for organization to gain the in-depth knowledge about the different market types to implement the appropriate economy system to achieve the goals and objectives. Competitiveness among the market is major area of consideration that is having the significant impact of the external market. Following are the key types of market that need to be considering for developing the strategy.
Figure 3 Types of market
The term fiscal policy refers to market decisions that have been undertaken by the national government to make the balance in the economy and market conditions. Government makes changes in the tax policies and structure to generate the revenue and influence the development approach to meet the objectives. The policy consist the maintenance of the surplus budget, increasing tax rates, applying the new taxes on GSK. The amendment in the rate of interest affects the GSK in very effective manner as the supply of market products is hampered and at the time of recession organization has to bear high loss in the nation. The organization is ready to affect the return of the share holders and not able to bear the day to day expenses of the organization. At the time of recession management has to bear high loss and it also affects the market value of organization.
On the other hand the monetary policy is been identified as the management of different factors like rate of interests, credit supply, money supply and various monetary terms (Strange, 2015). It has been identified that at the time of crisis management has to bear high losses and it also affects the brand value of the organization. It had been much rigid to bear the damage of credibility in the organization. The financial support of the organization is hampered due to crisis in the organization.
Competition policy is defined as the tool for the market to create the opportunity in the market and make the organization financially sound for the better opportunity. GSK is the British pharmaceutical organization that is mainly focused to increase the sale of medicines in the market and to create the strong customer base of for the business. The competition policy is been makes sure the chances of customer and the innovative technological changes that gives effective price competition among the different pharmaceutical business. The policy is based on certain variants like government regulations, antitrust, market liberalization and monitors the approach of organization to meet the objectives.
The implementation of competition policy is useful for controlling the monopolist conditions of market that are having the negative impact on the business. By using this policy UK government is looking to develop the fair and risk free market for both customers and organization as they will have good opportunities for offering the products and services(Dosi.et.al.2015). GSK is been facing the variants form its competitors like NHS, Red Cross etc. The competitiveness helps to develop the innovative approach in market that encourages the quality and design of products and services.
Demand and supply are interrelated because they are affected by the different kind of aspects. Demand of the products affects the supply of medicine in the market. The price of vaccine depends on the demand of the vaccine because if supply is high then availability of the product is less and retailer will charge high prices for the vaccine. GSK is the manufacture of different medicines that help the patient to cure himself from various diseases. For instance at the time of Ebola virus the demand of Ebola vaccine is high the supply is low thus it can be said that the demand of the product affects the supply of the product. So it can be identified that pricing and sales decision is affected by the supply and demand of the product in the market. Another point is increased demand for the vaccine than increased price and increased profits on contrary reduction of competitor’s price of vaccine then falls in demand for GSK’s paracetamol and reduce price to sell more and to compete well. It can be concluded that price and various other factors affects the growth of the business and it also affects the profits of the business and also affects the growth of the business (Bloom.et.al.2015). The substitute of the product in the market also affects the sales and pricing of the business due to alternate of the product.
The cultural factors affect the growth of the business in various ways like low profits, bad brand image, decrease sales etc. The cultural factors include language, religion, gender, customer perception etc. It has been identified that business factors and cultural factors has important effect on the GSK’s working culture. The management has to bear losses due to change in the culture of another country thus they are not able to achieve the management goals. Organization has to set the culture according to the culture of particular country if they are not able to set the culture according it then it will be the failure of management policy. Business environment is classified into two categories economic environment and non-economic environment. Economicenvironment contains economic policies, economic conditions and economic system. On the other hand non-economic environment includes technological, political environment and social etc. The cultural and social environment of the organization contains different values, traditions and beliefs. Different countries have different working environment thus management has to design the working pattern according to the country. Management has to hire the candidates from the country itself thus they can easily identify the taste and preferences of the particular country (Wang and Li, 2012). All the factors like political, social, economical etc have great impact on the operations of the business and it also affects the efficiency of the organization. These factors give shape to the new business and also affect the working procedure of the organization.
International trade helps the management to get the global platform for the business and also identify the working patterns of the different countries. International businesses help the GSK to attract the clients from other countries and get foreign currency with the help of international trade. Following are the benefits of international trade in the market:
Global factors affect the organization in positive and negative ways both it may raise the efficiency of the organization as well as it may decrease the profits of the organization. Various factors like political, social, economical, technological factors may affect the productivity of the business. With the entry of new business in the market may affect the growth of the business. It may give international platform to the organization and also reduce the efficiency of the business. The Global factors may increase the profits of the organization and also design new customer platform for the organization. It increases the global competition in the market and also helps the management to get the foreign exchange in form of sales. Various platforms for the countries like BRICKS etc help the management to get in touch with different countries try to explore the taste and preference of the another country. It gives global growth to the country and also reduces the impact of recession in the market (Feenstra, 2015). The biggest advantage of global factor is to provide the international platform to the organization in order to achieve the success.
It helps the organization by reducing the legal barriers for the organization and also enhances the customer base for the organization. Removal of trade barriers is the biggest advantage for the business and increases the profits of the business. With respect to the impacts of European Union policies on the organizations, it has been found that there are numerous policies being implied on UK. It is very much important for the organizations to follow these policies while carrying out the business operations across the nations. International policies, taxation policies, regional policies, employment policies, etc. are some of the most common policies being levied on the organization and lays remarkable impacts on the same. It has been observed that the EU policies had made severe influences on the business activities of UK and had made them carry out the activities in a fair and legislative manner (DaCosta.et.al.2016). In context to GSK, it is very important to complete the registration process of the firm as per the international trade policy with the intention to initiate the trade practices such as imports and exports of the concerned good and services specifically.
The current study identifies the role of impact of global trade on GSK and also identifies the outcome of the global trade in the market. The report explains the factors that affect the demand and supply in the organization thus management can easily identify the actual demand of the medicine in the market. It evaluates the role of globalization in the market and also explains the technological factors that affect the growth of the business. The study identifies the responsibility of organization towards the stake holders and management try to fulfill the demand of customers. The major objective of GSK is to identify the need of customers and try to fulfill them as soon as possible.
Books and Journals
Bloom, N., Propper, C., Seiler, S. and Van Reenen, J., 2015. The impact of competition on management quality: evidence from public hospitals. The Review of Economic Studies, p.rdu045.
Colciago, A., 2016. Endogenous market structures and optimal taxation. The Economic Journal.
DaCosta Byfield, S., Buck, P.O., Blauer-Peterson, C. and Poston, S.A., 2016. Treatment Patterns and Cost of Care Associated With Initial Therapy Among Patients Diagnosed With Operable Early-Stage Human Epidermal Growth Factor Receptor 2-Overexpressed Breast Cancer in the United States: A Real-World Retrospective Study. Journal of Oncology Practice, 12(2).
Dosi, G., Fagiolo, G., Napoletano, M., Roventini, A. and Treibich, T., 2015. Fiscal and monetary policies in complex evolving economies. Journal of Economic Dynamics and Control, 52, pp.166-189.
Feenstra, R.C., 2015. Advanced international trade: theory and evidence. Princeton university press.
Islam, M.R., Salim, M., Choudhury, T.T. and Al Bashir, M.M., 2013. The development of Corporate Social Responsibility (CSR) and challenges of Environmental and Social Reporting in Bangladesh. development, 5(23).
Miron, R.J., Gruber, R., Hedbom, E., Saulacic, N., Zhang, Y., Sculean, A., Bosshardt, D.D. and Buser, D., 2013. Impact of bone harvesting techniques on cell viability and the release of growth factors of autografts. Clinical implant dentistry and related research, 15(4), pp.481-489.
Mowday, R.T., Porter, L.W. and Steers, R.M., 2013. Employee—organization linkages: The psychology of commitment, absenteeism, and turnover. Academic press.
Rodrigue, M., Magnan, M. and Boulianne, E., 2013. Stakeholders’ influence on environmental strategy and performance indicators: A managerial perspective. Management Accounting Research, 24(4), pp.301-316.
Strange, S., 2015. States and markets. Bloomsbury Publishing.
Wang, X. and Li, D., 2012. A dynamic product quality evaluation based pricing model for perishable food supply chains. Omega, 40(6), pp.906-917.
World Health Organization, 2013. Oral health surveys: basic methods. World Health Organization.