Part A:
GlaxoSmithKline and developing country access to essential medicines
The case study emphasized the spread of the HIV/AID 's virus especially in the Least developed countries (LDC 's) where it was not possible for the poor people to be able to afford the expensive drugs used to cure the disease. The pharmaceutical companies were consistently pressurized to take a solution out of this to provide the medicines to the victims. Survey reports indicated that many deaths were happening and many were expected especially in the south Africa where the standards of living and earnings of people were very insufficient to afford the life saving drugs.
Critics commented that it was a social responsibility of the industry to help ensure
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The chief executive team believed that GSK 's approach to access of drugs to needy people could have significant strategic, commercial, operational and reputational impact.
CEO of GSK showed willingness to reduce prices in LDC 's to a non-profit level and GSK announced significant reduction in prices of HIV/AIDS drugs in LDC 's, trying to take a step ahead to fulfill its social and ethical responsibilities despite the fact that such reduction might lead to pressures from developed countries as well to reduce prices threatening its business model and innovations.
GSK 's approach was indicative of a corporate social responsible citizen rather merely an organization with a profit motive.
Blood diamonds
Issue identified in the text was about the smuggling of diamonds to earn money that was used to fund the armed groups often against the government. These diamonods were termed as 'blood diamonds '. In many parts of the world, diamonds were sold for illegal purposes and were a source of income for the armed groups. Strict actions were necessary to be taken against these illegal acts to secure the lives of people becoming victims of conflict and civil unrest.
Diamonds are suitable for smuggling due to their small size, high value and once polished, their origin is difficult to establish. The diamond
When one is on the other side of the earth, there is only so much information that a person could obtain. This was a great enough reason for the author, Greg Campbell, of "Blood Diamonds" to expose what all eyes are not seeing and what many are blind to in this world. Campbell went out to research the tracks and origins of a very valuable stone known as the diamond. In doing so, he urges to research the origins and life of this precious rock. He goes about researching just exactly how the life of the diamond begins in the jungles of Sierra Leone and ends up in the London on its market. This is what could be said to be the ultimate reason for this book "Blood Diamond”. Evidently, Campbell wanted to expose or let it be known how African
There are an immense amount of problems in Africa caused by the AIDS disease. Healthcare providers are available and located all over Africa. Even though they are available, they have only “enough medicine for long-term survival available for 30,000 Africans” (Copson, 3).
This essay will have info based off the story the article Blood Diamonds written by Greg Campbell. I will be giving a brief summary of
The story of these infamous diamonds all started with a fifteen year old who found a diamond in his father 's arm. The diamond business started in 1935 when “De Beers” took all control over dining prospects in Sierra Leone. De Beers are a group of companies has a main role in the exploration of diamonds, as well as diamond mining, diamond retail, diamond trading, and industrial diamond manufacturing sectors.This group was founded in 1888, and they are responsible for the problems Sierra Leone is facing today. These diamonds can be found in volcanic pipes. Diamonds are a pure form of carbon in a transparent state. Diamonds have always been a sign of wealth. Historically kings and queens were known for wearing these. Over time many people began lusting over them.
The process of producing the diamonds so they could be sold on the market involved many steps which were illustrated in the movie, Blood Diamond. Smugglers like Archer would supply the RUF with guns. The guns would be used by the RUF to intimidate the people of Sierra Leone into working as laborers for them; we see this with Solomon and his son. These men would be forced to dig in the water mines for hours a day searching for diamonds of all sizes. Then the diamonds are mixed with other diamonds all around the world, mixing the illegal ones with the legal ones; this was explained in the movie by Archer to Maggie. When the diamonds are mixed in with the others, no one can determine for certainty where each originated from. The export of the diamonds relies on how well Sierra Leone’s resources are to produce it and its resources are the laborers mining for the diamonds. More diamonds are exported out of the country when there are more laborers mining for them. It is then distributed to nations where they are made into necklaces and bracelets, and no questions are asked.
Although ninety-five percent of people living with HIV/AIDS are in developing countries, the impact of this epidemic is global. In South Africa, where one in four adults are living with the disease, HIV/AIDS means almost certain death for those infected. In developed countries however, the introduction of antiretroviral drugs has meant HIV/AIDS is treated as a chronic condition rather than a killer disease. In developing countries like South Africa, the drugs that allow people to live with the disease elsewhere in the world, are simply too expensive for individuals and governments to afford at market price.
Not only does this issue involve the politics of the diamond trade and the involvement of outside parties, but it is also a devastatingly serious human rights violation to the civilians of Angola. “There is an average of 52 land mine incidents per month and approximately 1 out of every 356 Angolans is an amputee as a result of these bloody conquests”[4]. It was determined in a United Nations Security Council meeting that “there are clear and major weaknesses in systems for controlling diamond trading, which no single country can address effectively because of the many alternative routes available to illicit diamond traders”[5]. Therefore, in order to combat the civil fighting between UNITA and the MPLA, we must educate ourselves about UNITA’s diamond trade, prohibit the sale of blood diamonds, and achieve a commitment from diamond dealers that their diamonds originate from conflict-free mines.
Sub-Saharan Africa is the region of the world that is most affected by HIV/AIDS. The United Nations reports that an estimated 25.4 million people are living with HIV and that approximately 3.1 million new infections occurred in 2004. To put these figures in context, more than 60 percent of the people living with the infection reside in Africa. Even these staggering figures do not quite capture the true extent and impact that this disease causes on the continent. In 1998, about 200,000 Africans died as a result of various wars taking place on the continent. In that same year, more than 2 million succumbed to HIV/AIDS (Botchwey, 2000).
Costs of the decision included negative public perceptions of the firm and denial of treatment to economically disadvantaged and uninsured consumers. the decision was ethical because the benefits of new life saving drugs outweighed the costs of denial of treatment to the few. So GSK regarding to its primary stakeholders was social responsible.
“GlaxoSmithKline (GSK) is a global healthcare company specialized in the discovery, development, manufacturing and marketing pharmaceutical and consumer health-related products. GSK has operations in about 114 countries, with products being sold in over 150 countries”.
Disproportionate and unfair pay can lead miners who are working in less economically developed countries, to sell their diamonds to smugglers, as the smugglers will pay more money for the diamond than those legal diamond trading companies that participate and are involved with in the Kimberley Process. Diamond trading that is not certified by the Kimberley process is a lot harder in more economically developed countries, as there is a larger, more strict border control presence, tougher laws and less corruption.
Proof of ownership of jewellery is locked in a paper, and paper can be easily manipulated or misplaced.
GSK is the 2nd largest pharmaceutical firm in the world, and the largest in the UK by sales and profits, it is responsible for 7% of the worlds pharmaceutical market, and has its stocks listed both in UK and US (O 'Rourke, 2002). The origin of the so called blockbuster model, is partly linked with Glaxo (as it was previously known). In the early 80’s, then Glaxo brought to light their first blockbuster drug, Zantac, which was an anti-ulcer drug, which was very similar to the a pre existing drug Tagamet (first ever blockbuster) sold by Smith Kline & French, their completion at the time (MONTALBAN and SAKINÇ, 2011). The introduction of this drug, brought about an increasing sales force in the US, the company soon became dependent on the drug, because it represented a large part of their profit. In 2002, 8 blockbusters of GSK contributed to $14.240 million sales revenue, taking up 53% of its total ethical sales (Froud et al 2006). However, due to the nature of the pharmaceutical industry, the patent began to expire, in other to avoid the patent cliff, Glaxo merged with Wellcome in 1995, which ensured a growing number of sales force, and with Beecham in 2000 (Froud et al., 2006) this merger, boosted the confidence of investors, by growing the business inorganically. For Big Pharma, this block buster model is very profitable, because with the high cost of R&D, the drugs are able to generate ample profit, to cover the sunk costs
A number of African countries have been the worst hit by the spective of AIDS. CIPLA an Indian Pharmaceutical Company has offered to market ant aids medicine at one length the cost at which it is sold by global pharmaceutical firm. However due to the product patent, law, substantial controversy has been generated around the globe on ethical grounds
This is a strategic analysis of GlaxoSmithKline that examines the key factors that influence the company and its activities. The strategic analysis will examine key factors in the company’s internal and external environment and their influence on the company’s strategies. GlaxoSmithKline is a global healthcare company that offers pharmaceutical, vaccines and consumer products. The company is a product of various mergers, the latest occurring in 2001 between GlaxoWellcome and SmithKline Beecham. The company started in London United Kingdom in 1715 as Plough Court pharmacy and has evolved to become one of the leading global healthcare companies. The healthcare company operates in more than 150 countries with 89 manufacturing locations and research centers in the USA, China, UK and Belgium. In 2015, the company’s sales grew to £23.9 billion from £23.0 billion in 2014 (GlaxoSmithKline plc. 2015).