Glaxosmithkline In China Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

INTRODUCTION

Glaxo Smith Kline was formed as a result of merger between the two companies named Glaxo and Smith Kline. After the merger of the company, the company formed into a gigantic pharmaceutical company. The company has earned its customer satisfaction as well as the company has earned the confidence of its customers by serving them with excellent quality products as well as exceptional customer care services. The company has formed a well-established organizational structure in which the company has set norms and regulations regarding to operations of the business. Moreover, the company has set different policies, in order to build an ethical structure within the system. Also, the company has a great value for its employees and the company considers its employees to be the most valuable asset of the company.

The company has been formed in UK but it has expanded its business through Globalization. The company has setup its business units in many countries all over the world. The company has also a business unit in China after the China had joined World Trade Organization. In China, the people do not use the medicines of foreign pharmaceutical copmpanues because they think that using these medicines will have many side effects.

The foreign pharmaceutical companies strive a lot to earn the confidence of the Chinese people because the companies see Chinese market as a potential market. The companies, in order to increase their sales, started bribing the local physicians to prescribe their medicines to the patients in order to increase their sales.

The company was caught during the audit as the company has not complied with the laws and regulations of the company as well as the company was penalized under the few sections of law and regulations of bribery act.

ANALYSIS

The company has maintained a well-established policy of to comply with ethical requirements of the company. The policy is named as code of conduct. The company has also maintained a third party code of conduct. The company makes its back breaking efforts to comply with the code of conduct of the company. The top management of the company has maintained different strategies to communicate the code of conduct with the employees effectively and efficiently. The company wants its employees all over the world to depict their integrity by,

Always acting legally and fairly, within the spirit of laws, regulations and policies.
Not offering illegal inducements to anyone.
Looking for principles, not loopholes.

The company has strictly communicated its employees to adhere to the principles of code of conduct of the company. The company has zero tolerance regarding to the noncompliance of the code of conduct of the company. The top management of the company also receives training with respect to the prevention from bribery and corruption at GSK.

The top management of the company is also responsible to ensure that the code of conduct is properly communicated and implemented by the employees of the company. The company believes that the honesty and high integrity of the employees will increase the overall reputation of the company.

The increase in reputation of the company will subsequently attract the customers towards the company and hence increases the profitability of the company.

There are few factors due to which the company has opted for bribery. The physicians in Chinese Government are not paid at a high rate.(http:(//www.kpmg.com)

Moreover there are many stipulations imposed to the physicians in the Chinese Government. The physicians are supposed to perform their services as physicians for the whole life. They are not allo0wed to do any other job. The physicians in China are supposed to earn only a nominal wage over the period of their life time.

This motivates them to earn from other sources in order to fulfill their needs more easily.

The people in China are reluctant in using the medicines of foreign companies as they think that the medicines of the foreign companies have many side effects. Moreover, they think that the herbal and traditional medicines are more useful than these medicines as well as the herbal medicines do not have any side effects and it cures faster than these medicines.

Glaxosmithkline In China Case Solution

Chinese people listen to their physicians very carefully. They obey the instructions of their physicians as well as they have a great trust in their physicians. They take whatever medicines prescribed by the physicians. In order to purchase the interest of Chinese people, the employees of the company have started bribing the physicians of the country to prescribe their medicines........

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