Political

1. In the interim budget 2019, the government has increased allocation for the Ayushman
Bharat Scheme, also known as Pradhan Mantri Jan Arogya Yojana (PMJAY), from `
4,000 crore in 2018-2019 to ` 6,400 crore for 2019-2020.
2. GSK looks forward to the government’s efforts to continue investing in the Ayushman
Bharat Scheme and increase the healthcare budgets to 3.5% of GDP.
3. GSK believes that there must be systems to provide documented proof that correct
procedures are consistently followed at each step in the manufacturing process - every
time a product is made. The Uniform Code for Pharmaceuticals Marketing Practices
(UCPMP) which is awaited final government approval is also a step forward in this
direction.

Economical
The Macro environment factors such as – inflation rate, savings rate, interest rate, foreign
exchange rate and economic cycle determine the aggregate demand and aggregate investment
in an economy. While micro environment factors such as competition norms impact the
competitive advantage of the firm. GSK can use country’s economic factor such as growth rate,
inflation & industry’s economic indicators such as Drug Manufacturers - Major industry growth
rate, consumer spending etc to forecast the growth trajectory of not only PHARMA sector but
also that of the organization. Economic factors that GSK should consider while conducting
PESTEL analysis are -

1. Type of economic system in countries of operation – what type of economic system

there is and how stable it is.
2. Government intervention in the free market and related Healthcare
3. Exchange rates & stability of host country currency.
4. Efficiency of financial markets – Does GlaxoSmithKline plc needs to raise capital in local
market?
5. Infrastructure quality in Drug Manufacturers - Major industry
6. Comparative advantages of host country and Healthcare sector in the particular country.
7. Skill level of workforce in Drug Manufacturers - Major industry.
8. Education level in the economy
9. Labor costs and productivity in the economy
10. Business cycle stage (e.g. prosperity, recession, recovery)
11. Economic growth rate
12. Discretionary income
13. Unemployment rate
 14. Inflation rate
15. Interest rates

1. In preventive healthcare, GSK continues to be the No. 1 vaccines company in the self-
pay segment with a 30% value market share. GSK began marketing vaccines in India
more than 25 years ago and currently markets 8 vaccines for varied age groups -
infants, adolescents and adults. The vaccines self-pay market is currently estimated to
be ` 2200 crore (IMS MAT Feb 2019) and is growing at around 13%. Eight of your
company’s vaccines feature in the Top-20 list of vaccines in the self-pay market (IMS
MAT Feb 2019).

2. GSK is forging ahead on the innovation front, with the recent launch of Nucala, a biologic
for severe refractory eosinophilic asthma in adults. India has around 30 million asthma
patients and Nucala will bring significant relief to those among them who suffer from
severe eosinophilic asthma. In addition, this breakthrough innovation will also strengthen
the respiratory portfolio to better serve the patients. The commercial and medical teams
are actively engaging with pulmonologists in the country to disseminate the robust data
on Nucala.

3. The emphasis on enhancing customer experience through multi-channel marketing

brought about a transformational increment in customer touchpoints in the Primary Care
business. Over 17 million HCP touchpoints were reached through various channels like
webinars, e-mails, text messages, virtual calls, and the GSK Pro platform. GSK’s major
Primary Care brands are growing faster than the Indian Pharmaceutical Market. The
Evolution Index for certain top brands were: Augmentin at 106; Ceftum at 109; Eltroxin at
101 and CCM at 105.

Social
The Women’s Leadership Board (WLB) has made significant strides to help reap the gender
dividend. The aim of this Board is to develop women talent across all levels and build a pipeline
of senior women leaders. We now have 16% gender diversity in our workforce, 16% women at
Board level and 28% women representation in top leadership positions. Significant focus on
conscious hiring through expanded pool of campuses visited and referrals, leading to 18% of
new hires being women in the commercial organisation.GSK was recognised as one of the 100
Best Companies for Women by Working Mother and AVTAR
Legal
In number of countries, the legal framework and institutions are not robust enough to protect the
intellectual property rights of an organization. A firm should carefully evaluate before entering
such markets as it can lead to theft of organization’s secret sauce thus the overall competitive
edge. Some of the legal factors that GlaxoSmithKline plc leadership should consider while
entering a new market are -

● Anti-trust law in Drug Manufacturers - Major industry and overall in the country.
● Discrimination law
● Copyright, patents / Intellectual property law
● Consumer protection and e-commerce
● Employment law
● Health and safety law
● Data Protection

1. During the year under review, to support the commercial availability of new drugs and
vaccines that would benefit and improve the quality of life of Indian patients suffering
from various diseases, GSK submitted necessary applications for new products in India
to the CDSCO (Central Drugs Standard Control Organisation), Ministry of Health and
Family Welfare, Government of India.

Some of the applications made were, to register a quadrivalent Inactivated Influenza

Vaccine (Fluarix Tetra) for active immunisation of adults and children from 6 months of
age for the prevention of influenza disease caused by the two influenza A and B viruses.
In addition, applications were made to register the Fluticasone Propionate range of
inhalation products, that is, Fluticasone Propionate pressurised metereddose inhalation
(Flixotide Evohaler) for Asthma and Fluticasone Propionate Powder for Inhalation
(Flixotide Accuhaler) for Asthma and COPD. An application was also submitted for grant
of marketing authorisation of a new anti-malarial drug, Tafenoquine succinate and its
tablet formulation which is indicated for the radical cure (prevention of relapse) of
Plasmodium vivax malaria to support GSK’s Global Health programme.

2. GSK has received an approval of Mepolizumab Powder for solution for injection (Nucala)
for the treatment of severe refractory eosinophilic asthma and has launched the product
in the Indian market.
 3. GSK has also obtained necessary approval from the Aurangabad Food and Drug
Administration, Maharashtra, for the manufacture of a new line extension of its anti-
fungal drug, Griseofulvin 500mg Tablets (Grisovin).

ENVIRONMENTAL
Different markets have different norms or environmental standards which can impact the
profitability of an organization in those markets. Even within a country often states can have
different environmental laws and liability laws.Before entering new markets or starting a new
business in existing market the firm should carefully evaluate the environmental standards that
are required to operate in those markets. Some of the environmental factors that a firm should
consider beforehand are -

1. Weather
2. Climate change
3. Laws regulating environment pollution
4. Air and water pollution regulations in Drug Manufacturers - Major industry
5. Recycling
6. Waste management in Healthcare sector
7. Attitudes toward “green” or ecological products
8. Endangered species
9. Attitudes toward and support for renewable energy

1. GSK ‘s greenfield manufacturing site at Vemgal, Karnataka, environmental

considerations have been at the forefront of the factory design and future operation. The
site is designed and built to obtain LEED (Leadership in Energy and Environmental
Design) Gold certification (as per the US Green building council) by adopting
environment friendly design and using environmentally responsible resources like
recyclable material for construction, efficient processes throughout its life cycle etc. Also,
any green building certified to reduce overall impact on environment & human health by
reducing pollution and degradation of environment, efficiently using water, energy &
other resources, protecting occupant health and improving productivity.
2. GSK has invested in renewable energy in the form of a 0.5 MW Photovoltaic array,
which will contribute to the site’s energy requirement.
a.