Organizational Structure of GlaxoSmithKline Case Study
Key Learning Outcomes
By the end of the case, students should be able to:
- Understand and explain the main features of GlaxoSmithKline’s organizational structure
- Understand how GlaxoSmithKline's organizational structure affects its performance and responsiveness to the external environment.
- Apply relevant theories and concepts of organizational structure to real-life organizations.
1.0 INTRODUCTION
GlaxoSmithKline (GSK) is a global pharmaceutical company that operates in three main business segments: Pharmaceuticals, Vaccines, and Consumer Healthcare. The company has a purpose to unite science, technology, and talent to get ahead of disease together. It prioritizes innovation in vaccines and specialty medicines to prevent and treat disease. GSK has a primary listing on the London Stock Exchange and a secondary listing on the New York Stock Exchange. It operates in more than 80 countries. GSK has four R&D centers and 37 manufacturing sites.
In 2022, the company invested £5.5 billion in R&D and has 69 vaccines and medicines in development. GSK is the leader in the Access to Medicine Index and the second in the S&P Global Corporate Sustainability Assessment. GSK's portfolio includes 20+ vaccines, respiratory, HIV, immuno-inflammation, and oncology medicines, and consumer healthcare products. GSK's mission is to help people do more, feel better, and live longer.
The Organizational Structure of GSK is a matrix one, which means that it combines functional and divisional structures to achieve both efficiency and flexibility. The functional structure is based on the main functions of the company, such as research and development, manufacturing, marketing, and sales. The divisional structure is based on the geographic regions where the company operates, such as Europe, the Americas, Asia-Pacific, and Emerging Markets. Each business segment has its own president who reports to the CEO, and each region has its own president who reports to the chief operating officer.
The matrix structure allows GSK to leverage its global scale and expertise, while also adapting to local market needs and opportunities.