GlaxoSmithKline In China CaseAnalysis Essay

1718 Words Mar 13th, 2015 7 Pages
GlaxoSmithK in China: Case Analysis
Abubakarr S. Jalloh (A.J)
University of Maryland University College
AMBA 660.9040
January 23, 2015
Professor Mohamed Ezz, MD

Joseph Nathan was a businessman in New Zeeland who conducted business on mainly imports and exports. In 1904, Joseph attained the rights to produce dried up milk which was later sold as baby food called Glaxo. GlaxoSmithKline got its name in the early 1990’s after Glaxo a pharmaceutical firm created in New Zeeland merged with SmithKline, which was also a Pharmaceutical, firm in the United Kingdom. Several years after the merger, GlaxoSmithKline (GSK) became one of the largest drug manufacturers around, with an estimate of $22.5 billion in global sales and
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Both Internal and external factors were vital in the bribery case in China. Making one factor more important than the other would cause an unbalance. Foreign companies were not being accepted in china so in order for them to be, they had to find a way to show do business due to the large population in China. Bribery was a way to make their products know but the Chinese people and what better way than having the doctors who prescribe treatments to patients. This will make for an easier transition because the patients are confortable with their doctors and trust the advice from their doctor. Soon After the four employees where arrested, the world was waiting from a response from GSK but it took them over 2 weeks before getting a response. The company addressed the allegation by not using the travel agencies identified in the allegation and they are also reviewing all historic transactions as it pertains to the use of travel agencies (Quelch & Rodriguez, 2013). This is a good decision by GSK to stop working with the travel agency and audit their records for bribes with the travel agencies. This shows that they are willing to cut all ties with anything that will ruin the companies’ reputation. The decision to take action better demonstrate GSK stance on fixing an issue immediately. Also GSK plan to work with the Chinese government to make the drugs more affordable and fix the lack of trust between the government and GSK moving forward. Working with the

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