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A 3,000 word assignment to analyse GlaxoSmithKline (GSK)’s business operation in Brazil.

A 3,000 word assignment to analyse GlaxoSmithKline (GSK)’s business operation in Brazil.
Journal Article reference: in the year range 2016->2023
Funded in 2000 by a merger of Glaxo Wellcome and SmithKline Beecham, the British
multinational pharmaceutical company GlaxoSmithKline (GSK) has significant global
presence with commercial operations in more than 150 countries, a network of 87
manufacturing sites in 36 countries, 5 large R&D centres in five countries, including the UK,
USA, Spain, Belgium and China (https://www.gsk-china.com/en-gb/about-us/gsk-globally/).
GSK has been present its business in Brazil for decades and currently they have a factory, a
distribution cents and headquarters in the state of Rio De Janeiro, Brazil (see some support
materials in the folder of ‘Additional Case information’ on the BB as a starting point).
Considering GSK’s business operations in Brazil, students are required to address the 5
questions below by (1) applying relevant academic theories and literature; (2) using sufficient
self-collected research data to adjust and support the answers.
QUESTIONS
1. Considering the multi-faceted drivers of FDI location choice (e.g.
national-level, industry-level and firm-level), what location-specific advantages
could GSK exploit from Brazil? (20 marks)
2. Utilising relevant analytical tools (e.g. Value chain, VRIN), critically analyse
GSK’s ownership advantages (Os), classifying them into Oa; Ot and Oi. (20
marks)
3. Internalisation advantages refer to the ability of a firm to leverage its
ownership advantages abroad (e.g. the transfer of intangible assets,
knowledge), how can GSK internalise its ownership advantages (Os
identified in Q2) into Brazil? (20 marks)
4. With reference to different national culture frameworks (e.g. Hofstede,
GLOBE, High-context vs low-context etc.), critically discuss both barriers
and competitive advantages by comparing the cross – culture differences
between the UK and Brazil. (20 marks)
5. Drawing upon relevant innovation literature, critically discuss what type of
innovation strategy GSK adopts, and what benefits and challenges GSK
could face by building its local innovation networks in Brazil? (20 marks)
Report Format and what must be included:
1. Introduction – 100 words
a. A good brief overview of a company.
b. When was it established/ which country
c. Main products/business units
d. Performance
e. Key markets
f. Which industry it belongs to
2. Question 1: Location Choice: Brazil – 600 words
a. Explain why Brazil is an attractive location for GSK
b. Explain further based on the 3 level (2 factors per Level):
i. Country/National Level
1. E.g (Market factor/HR factor/Infrastructure factor/Local
economy)
Example why GSK chose Brazil
https://www.statista.com/statistics/802640/gross-domestic-product-gdp-latin-americacaribbean-country/ – higher GDP
*Keywords to include: Market seeking /Efficiency seeking (lower cost/HR planning) / Asset
seeking

ii.
iii.
iv.
v.
Industry Level
Keyword to include in the report – Industry- level: Agglomeration
Firm Level

1. Firms’ resources and capability (e.g. sufficient resources to
expand business abroad?)
2. Firms’ international experience (e.g. any prior experience in a
certain location?)
3. Firms’ international strategy (e.g going or not going abroad? To
what extent?)
3. Question 2: GSK’S Ownership advantages (3 Tables to do) – 600 words
a. Table 1: Value chain analysis (include resources and capabilities)
b. Table 2: VRIN analysis
c. Table 3: Ownership advantages (Oa+Ot+Oi)
d. Do the 3 tables above then explain on the ownership advantages table.
e. Explain about the VRIN analysis.
4. Question 3: Internalisation advantages
Research on GSK’s Internal Network and draft a mapping as per below:
In question 3, write about the internal networks and the ownership advantages
Explain GSK’s world mandate.
5. Question 4: National Culture Framework
a. e.g. Hofstede, GLOBE, High-context vs low-context etc.
hofstede-insights.com/country-comparison-tool?countries=brazil%2Cunited+kingdom
Nigel Toh
9:15 PM
globeproject.com/results/countries/GBR?menu=list#country
Nigel Toh
9:15 PM
globeproject.com/results/countries/BRA?menu=list#country
Talk about the differences.
Discuss some of the points:
– Power distance
– Individualism
– uncertainty avoidance
Minimum 1 framework – include graph such as above for comparison.
GSK uses the ‘open innovation’ strategy
6. Question 5: Innovation Strategy
a. Discuss the benefits and challenges where GSK is building local innovation
networks in Brazil. About building local networks e.g with
suppliers/universities. What are the benefits and challenges?
* The focus is GSK’s partnership with the local network in Brazil.
– 3 benefits and 3 challenges

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