ASSESSMENT COVER SHEET

PROGRAMME TITLE: BA (Hons) Business (Top Up)

MODULE TITLE: Business Operations

MODULE CODE: BA6001GN
INTAKE/SEMESTER: SEPTEMBER (2019), AUTUMN PERIOD

ASSESSMENT TITLE: Business Operations

MODULE
LEADER/LECTURER

STUDENT ID: (London

Met)

STUDENT ID: (NCL)

STUDENT NAME:

SUBMISSION DEADLINE:
11.01.2019
I declare that all material in this assessment is my own work except where there is
clear acknowledgement or reference to the work of others, and I have complied and
agreed to the College statement on Plagiarism and Academic Integrity on the College
Student Handbook provided at Induction.
Signed: Date:

Word Count:
Assessment Submission Guidance:
Students should provide a completed assessment cover sheet with all essential details. All
assessment should be submitted in electronic format via college systems on or before the
submission deadline. The e-submission system will not allow late submissions. By submitting this
assessment and cover sheet electronically, in whatever form, you are deemed to have made the
declaration set out above.

1
Table of Contents
Introduction ................................................................................................................................ 3

LO 4- Identify and demonstrate the best practice techniques and commonly used analytical
frameworks in GlaxoSmithKline plc (gsk). ............................................................................... 3

LO 4- Apply two analytical frameworks commonly used by managers in any manufacturing

organisation, to help enhance business effectiveness of GlaxoSmithKline plc (gsk)................ 6

LO 5- Outline and define the approaches of quality management and quality techniques that
could apply to improve the effectiveness of the operation in GlaxoSmithKline plc (gsk) and
your rationale for its use. ........................................................................................................... 8

LO 5- Describe one example of best practice and one analytical technique, that you would
recommend using to improve operations in GlaxoSmithKline plc. ......................................... 10

Please indicate your rationale for their use. ............................................................................. 10

Summary and conclusion ......................................................................................................... 11

Reference ................................................................................................................................. 12

2
Introduction
Business operation is the collective activity within a business organization and harvest value
from the asset. The main purpose of this assignment is to show the study of frameworks and
techniques that a business organisation follow to achieve its objectives and business
effectiveness. This assignment is written based on GlaxoSmithKline plc (gsk). GSK is a
leading manufacturer in many countries and has a strong global presence. GSK adopt best
practice techniques as well as commonly used analytical framework to improve effectiveness
and business operation. For a pharmaceutical manufacturing company, GSK has some
advantage as well as a disadvantage in the market place. GSK adopted change and quality
management to ensure that its customer gets a better product. Automation and other facilities
increased their productivity.

LO 4- Identify and demonstrate the best practice techniques and commonly used
analytical frameworks in GlaxoSmithKline plc (gsk).

The best practice techniques in GlaxoSmithKline plc (gsk)

A best practice, a methodology or technique, commonly acknowledged as better than any

choice or alternatives to ensure success (Aithal, 2016). It produces results that are far better
than its alternatives. GlaxoSmithKline plc (gsk) can get the best result via best practice
techniques.

Implementing Automation: Automation is the use of different control system for working
equipment to reduce human effort (Frohm et al., 2018). GlaxoSmithKline (GSK) has chosen
Siemens as a manufacturing partner. The objective of this arrangement is to revive the GSK's
worldwide automation strategy. GSK is getting its benefit from automation such as more
productivity, better quality, shorter work time, reduced in lead time etc.

Adopting lean manufacturing: The main objective of lean manufacturing is to find

approaches to become leaner and more effective to monitor cost and keep it under control
(Feld, 2017). GlaxoSmithKline decreases its waste without sacrificing its productivity.

3
Adopting lean manufacturing GSK achieves quality performance, lower cost and higher
effectiveness, and overall higher profit benefit.

Ensuring quality management: Quality management ensures that its product is consistent in
the market (Klefsjö et al., 2018). By implementing quality management GSK gets higher
customer loyalty, employee satisfaction, higher profitability, better work environment etc.
GSK’s quality management incorporates planning, assurance, control and improvement of
quality. Implementing change is important for the company without sacrificing its quality.
Applying quality management is a best practice for GSK’s manufacturing operation.

Engage employees in Business Development: Distance employee normally don’t care about
performance on the job rather they care about getting paid (Markos & Sridevi, 2019). GSK’s
managers have to find out how to make them care about the company’s goal and mission to
make them more productive, less passive and perform their talent for company benefit.

Target setting and rewarding effort: GSK’s management have to set a target through
finding out where are they now, what to achieve and when, and how long will it take to
achieve it (Presslee & Webb ,2019). Employees in any organization like their effort and
achievement to be recognized. By rewarding employees GSK makes them feel that they are
valuable for the company.

Environment-friendly: Customers are becoming more environmentally conscious nowadays

(Leonidou et al., 2015). GSK must follow environmental regulation and guideline to avoid
financial penalties and legal issues. GSK attracts an eco-friendly mindset customer by
becoming environmentally friendly.

Information Management: Information management in any organizational team enables

them to utilize their time and expertise effectively (Chaffey & White, 2019). GSK’s
information management provides the information to recognize non-performing areas to
increase productivity, making the decision and identifying better customer needs.

Commonly used Analytical frameworks in GlaxoSmithKline plc

An analytical framework is a useful tool that is designed to structure business issues, logical
thinking and communication. Analytical frameworks help GSk articulating goals and build a
success blueprint. Commonly used analytical frameworks in GSK are the following:

4
Competitive Force Model (Porter’s 5 Force): Competitive force model is a tool to analyse
the business competition (Dobbs, 2018). GSK can gain attractiveness and profit potential by
analysing five key force such as rivalry, new entrance, buyers, suppliers, substitutes.

Industry Life Cycle: Industry life cycle refers to the stages such as introduction, growth,
maturity and decline based on business characteristics (Covin & Slevin, 2016). This analysis
help GSK to identify its future industry and what could be the future trend.

Competitive Landscape: A business analysis which helps organizations to recognize its

direct and indirect competitor (Hitt et al., 2019). Constructing an industry landscape GSK’s
managers evaluate the degree of competition in various segment of an industry.

SWOT analysis: An organizational study to recognize internal strength and weakness, and
external opportunity and threat. An effective tool to identify internal as well as external
factors (Görener, 2017). GSK’s managers take advantage of strength and opportunity, lessen
the weakness as well threat. These factors affect GSK’s decision-making process.

Value Chain Analysis: A tool that is used to analyse the organization’s internal activities
(Fleisher & Bensoussan, 2016). The main goal of value chain analysis is to identify GSK’s
valuable activities and which could provide a competitive advantage.

5
LO 4- Apply two analytical frameworks commonly used by managers in any
manufacturing organisation, to help enhance business effectiveness of GlaxoSmithKline
plc (gsk).

SWOT Analysis:

The SWOT analysis is a study and a planning technique to identify and summarized
strengths, weaknesses, opportunities, and threats to the organisation. GSK’s managers can
apply SWOT analysis to enhance effectiveness in business. It helps GSK to identify its
internal and external factor.

Strength: Building something based on strength will become a foundation for growth and
innovation (Samejima et al., 2016). GSK has its strength in a competitive market. GSK has
strong and large R&D capabilities which are a great advantage. It dominates the market for
medicine at a greater number. It has a strong sales network and global presence. Strong brand
portfolio and brand recognition is another strength that GSK creates over the years.

Weakness: Weakness of an organisation becomes the opportunity for its competitors

(Ommani, 2019). GSK has a bad reputation that it adopt the illegal practice to produce its
product. There has been a report in some countries that it promoted its product unlawfully,
charge a false price, failed to report safety information. Some of GSK product reaching their
maturity and fall into a huge competition and this affects the sales.

Opportunities: In recent years GSK has launched a different quality product in a competitive
market (Shinno et al., 20016). There is increased demand in the market for quality product
and GSK has the opportunity to catch that. Because of its global presence, it can present itself
as a top manufacturer and brand in some countries. GSK has growth in technology in
manufacturing which gives it higher productivity and lesser cost.

Threat: Companies feel they will lose in the competition. There is a competitive threat that
doesn’t happen yet but has the possibility to occur (Coman & Ronen, 2019). Increased
competition is a big threat to GSK from generic drugs. Product price is another treat that
GSK is dealing with in competitive market segment. On the other hand, the pharmaceutical
industry is much complex and very dynamic. If GSK couldn’t adapt to change it may face in
great loss.

6
Porter’s Five Forces:

Porter’s five force framework helps in analysing the level of competition of a business.
Michael E. Porter developed the five force model. He classified five forces that gain
attractiveness and profitability for any company (Porter, 2018). GSK can shape its forces to
strengthen its position in the market. In an attractive marketplace, all company does not get a
similar success rate. There are five relevant forces which shape strategy.

Competitive Rivalry: Rivalry among existing competitors in the marketplace shows how
intense the competition is. In the UK, GSK provides more than 12% of the total market. The
number of completion isn’t high (Song et al., 2018).

The threat of new entrance: Potential new entrants in the market is a threat for existing
competitors. To enter into a market place, an organisation need a huge amount of resources
(Ehsan, 2015). If it is easier for GSK competitor to enter the market, the greater the risk of it.

The bargaining power of the customer: The bargaining power of customer in the
pharmaceutical and healthcare industry is very low because most competitors charge a similar
price (Brown et al., 2019).

Suppliers bargaining power: The raw material for a product comes from suppliers (Yue-
jun, 2019). The bargaining power of suppliers is not low because of the shortage of suppliers
for the raw material which the company like GSK uses to produce the product.

The threat of substitute: Substitute products are those which fulfil the same need of the
customer as the product do (Porter, 2017). In pharmaceutical products, there aren’t many
substitutes or no substitute. So the threat for GSK of substitute is quite low.

7
LO 5- Outline and define the approaches of quality management and quality techniques
that could apply to improve the effectiveness of the operation in GlaxoSmithKline plc
(gsk) and your rationale for its use.

Approaches of quality management:

Quality management is a process that ensures the consistency of the product or service of a
company and maintains a level of excellence (Goetsch & Davis, 2018). A manufacturing
organization like GSK could follow these approaches to maintain its quality control.

Total quality management: Total quality management is an approach to quality

management where managers try to achieve company objectives ensuring customer
satisfaction (Samson & Terziovski, 2019). Customer satisfaction is very essential for
companies like GSK.

Six Sigma: It is a management approach for improving process and reducing defect. It shows
the quality level of product or service for the business organization (Pande & Holpp, 2017).

FMEA: Failure mode and effect analysis is a procedure where potential failure mode in
elements is reviewed (Stamatis, 2019). Manufacturing companies like GSK try to discover
design fault so that they can take the necessary step to avoid this.

PDCA cycle: It is a management procedure for a business to improve the product as well as
the process of a business organization (Moen & Norman, 2016). A company like GSK uses
this method to enhance its product and process by improving them.

80/20 principle: This principle shows that 20% of any country’s population gain 80% of the
total income in that country (Craft & Leake, 2019). Business organization are also like that.
GSK and other manufacturing company’s success more or less 80% come from 20% of their
total effort.

Top management involvement: Top management make the decision and pass them for
applying. To ensure quality management, top management involvement is essential. GSK’s
top management will not only make a decision but also take part in quality management
(Wooldridge & Floyd, 2017).

8
Zero defect concept: A tool that is used in a business organization to make sure that there is
no waste during the process or anything. Manufacturing companies like to adopt zero-defect
concept because of its perfect result and proper use of resources (Calvin, 2019).

Approaches of quality techniques:

There are several quality technique approaches by which a business organization can improve
its effectiveness in the area of operation.

Cause and effect diagram: This diagram is used to find out the root cause of any defect.
Manufacturing companies like GSK use this diagram to illustrate the potential problem. The
result from any problem and its main cause are shown in this diagram (Ahmed & Ahmad,
2018).

Benchmarking: Manufacturing companies use this practice to compare their business

process and performance with standard metrics available in the industry (Anand & Kodali,
2018). Running projects are compared with similar projects.

Quality Meeting: Companies managers assemble related people for discussion about specific
objectives. Meeting has an impact on quality control and other factors. To ensure maximum
quality, the meeting must be held from time to time (Bouch et al., 2019).

Flow charts: It is a diagram which shows the work process. To obtain any objective, identify
any quality problem flowcharts are drawn by companies (Furey et al., 2016). GSK’s
managers try to find out quality problems and in this case the flow chart contribute much.

Control chart: Companies use a control chart to find out if process variance is under control
or not. Control chart helps manufacturing companies to monitor their output from a specific
process (Nelson, 2017).

9
LO 5- Describe one example of best practice and one analytical technique, that you
would recommend using to improve operations in GlaxoSmithKline plc.

Please indicate your rationale for their use.

Quality Management

Quality management in any organization ensures that its products or services are consistent in
the marketplace. Examples of quality management systems in GSK and other manufacturing
companies are:

Total quality management: Company managers try to achieve its objectives ensuring
customer satisfaction through total quality management approach (Samson & Terziovski,
2019). GSK’s managers have to ensure its customer satisfaction maintaining quality.

ISO 9001 Standards: For quality management systems, ISO has several standards that
companies have to follow (Hoyle, 2017). GSK has to follow these standards to meet customer
need and other related regulation for further enhancement.

Lean manufacturing and supply: Manufacturing companies try to minimize their waste and
keeping their productivity at the same time (So & Sun, 2019). The raw material for the
product of GSK are not available and there is a shortage of suppliers. So GSK has to adopt to
lean manufacturing.

The rationale for the use of quality management

Improves organizational effectiveness: Quality management helps to improve GSK’s

organizational effectiveness. By implementing quality management GSK can achieve its
objectives as well as reducing cost and effort (Eitzen & Yetman, 2018).

Improves customer satisfaction: One of the major objectives of any company is to improve
its customer satisfaction (Gerson, 2017). Quality management help GSK to improve its
customer satisfaction.

Improves organizational culture: Organizational culture in any organization is very

essential for employee cooperation and satisfaction (Johnson & McIntye, 2018). Improved
organizational culture helps GSK to maintain cooperation and satisfaction among employees.

10
Value chain analysis

Value analysis is a tool that managers use to analyse a business organization’s internal
activities. By adopting value analysis GSK’s managers can find its valuable activities which
prove the company a competitive advantage.

For example, GSK is in the pharmaceutical industry and here raw material are higher in price.
There is a shortage of suppliers. So its managers take advantage of inbound logistics helps in
procuring at minimum cost, storing and distributing for production. During the operation
period, GSK process its raw material into the final product. Here value chain help GSK in
assembling, packaging, maintaining equipment. Value chain analysis also helps GSK in its
outbound logistics, promotion and sales, service, human resource management, infrastructure,
technological advancement etc.

The rationale for the use of value chain analysis

Cost reduction: Value chain analysis help to reduce cost. GSK can take this advantage to
reduce its cost.

Increase productivity: Value chain analysis shows a different alternative and helps to
increase the company’s productivity.

Proper use of resources: This analysis helps to use the company’s resources properly and
make sure that there is minimum or no waste generation.

Summary and conclusion

Throughout the assessment, it is seen how manufacturing companies are adopting themselves
for better business effectiveness and customer satisfaction. The aim and objective are
achieved through these assessments as they show how a manufacturing company like GSK
are achieving their goals and objectives through change and adaptation. There is a discussion
about best practice technique, analytical framework, how quality management and quality
techniques approaches are implementing to improve business effectiveness, and other factors.

11
Companies are adopting more strategy and methodology to implement more effective and to
gain higher profitability by proving higher customer satisfaction.

Reference
Aithal, P. S. (2016). Study on ABCD analysis technique for business models, business
strategies, operating concepts & business systems. International Journal in Management and
Social Science, 4(1).

Frohm, J., Lindström, V., Winroth, M., & Stahre, J. (2017). The industry's view on
automation in manufacturing. IFAC Proceedings Volumes, 39(4), 453-458.

Feld, W. M. (2000). Lean manufacturing: tools, techniques, and how to use them. CRC press.

Klefsjö, B., Bergquist, B., & Garvare, R. (2088). Quality management and business
excellence, customers and stakeholders: do we agree on what we are talking about, and does
it matter?. The TQM Journal, 20(2), 120-129.

Markos, S., & Sridevi, M. S. (2019). Employee engagement: The key to improving
performance. International journal of business and management, 5(12), 89.

Presslee, A., Vance, T. W., & Webb, R. A. (2019). The effects of reward type on employee
goal setting, goal commitment, and performance. The Accounting Review, 88(5), 1805-1831.

Leonidou, L. C., Fotiadis, T. A., Christodoulides, P., Spyropoulou, S., & Katsikeas, C. S.
(2015). Environmentally friendly export business strategy: Its determinants and effects on
competitive advantage and performance. International Business Review, 24(5), 798-811.

Chaffey, D., & White, G. (2019). Business information management: improving performance
using information systems. Pearson Education.

E. Dobbs, M. (2018). Guidelines for applying Porter's five forces framework: a set of
industry analysis templates. Competitiveness Review, 24(1), 32-45.

Covin, J. G., & Slevin, D. P. (2016). New venture strategic posture, structure, and
performance: An industry life cycle analysis. Journal of business venturing, 5(2), 123-135.

Hitt, M. A., Keats, B. W., & DeMarie, S. M. (2019). Navigating in the new competitive
landscape: Building strategic flexibility and competitive advantage in the 21st
century. Academy of Management Perspectives, 12(4), 22-42.

12
Görener, A. (2017). Comparing AHP and ANP: an application of strategic decisions making
in a manufacturing company. International Journal of Business and Social Science, 3(11).

Fleisher, C. S., & Bensoussan, B. E. (2016). Strategic and competitive analysis: methods and
techniques for analyzing business competition (p. 457). Upper Saddle River, NJ: Prentice
Hall.

Samejima, M., Shimizu, Y., Akiyoshi, M., & Komoda, N. (2016). SWOT analysis support
tool for verification of business strategy. In 2006 IEEE International Conference on
Computational Cybernetics (pp. 1-4). IEEE.

Ommani, A. R. (2019). Strengths, weaknesses, opportunities and threats (SWOT) analysis for
farming system businesses management: Case of wheat farmers of Shadervan District,
Shoushtar Township, Iran. African journal of business management, 5(22), 9448-9454.

Shinno, H., Yoshioka, H., Marpaung, S., & Hachiga, S. (20016). Quantitative SWOT analysis
on global competitiveness of machine tool industry. Journal of engineering design, 17(03),
251-258.

Coman, A., & Ronen, B. (2019). Focused SWOT: diagnosing critical strengths and
weaknesses. International journal of production Research, 47(20), 5677-5689.

Porter, M. E. (2018). The five competitive forces that shape strategy. Harvard business
review, 86(1), 25-40.

Song, M., Calantone, R. J., & Di Benedetto, C. A. (2018). Competitive forces and strategic
choice decisions: An experimental investigation in the United States and Japan. Strategic
Management Journal, 23(10), 969-978.

Ehsan, S. D. (2015). Business Strategy. MANAGEMENT.

Brown, D. T., Fee, C. E., & Thomas, S. E. (2019). Financial leverage and bargaining power
with suppliers: Evidence from leveraged buyouts. Journal of Corporate Finance, 15(2), 196-
211.

Yue-jun, T. A. N. G. (2019). Bargaining Power of Suppliers and Buyers, and Corporate

Performance——Evidences from Chinese Manufacturing Listed Companies from 2005 to
2007 [J]. China Industrial Economics, 10.

Porter, M. E. (2017). Understanding industry structure. Harvard Business School, 13, 1-16.

13
Goetsch, D. L., & Davis, S. (2018). Quality management for organizational excellence:
Introduction to total quality.

Samson, D., & Terziovski, M. (2019). The relationship between total quality management
practices and operational performance. Journal of operations management, 17(4), 393-409.

Pande, P. S., & Holpp, L. (2017). What is six sigma?. McGraw-Hill Professional.

Stamatis, D. H. (2019). Failure mode and effect analysis: FMEA from theory to execution.
ASQ Quality press.

Moen, R., & Norman, C. (2016). Evolution of the PDCA cycle.

Craft, R. C., & Leake, C. (2019). The Pareto principle in organizational decision
making. Management Decision, 40(8), 729-733.

Wooldridge, B., & Floyd, S. W. (2017). The strategy process, middle management
involvement, and organizational performance. Strategic management journal, 11(3), 231-
241.

Calvin, T. (2019). Quality control techniques for" zero defects". IEEE Transactions on
Components, Hybrids, and Manufacturing Technology, 6(3), 323-328.

Ahmed, M., & Ahmad, N. (2018). An application of Pareto analysis and cause-and-effect
diagram (CED) for minimizing rejection of raw materials in lamp production
process. Management Science and Engineering, 5(3), 87.

Anand, G., & Kodali, R. (2018). Benchmarking the benchmarking models. Benchmarking:
An international journal, 15(3), 257-291.

Bouch, A., Kuchinsky, A., & Bhatti, N. (2019). Quality is in the eye of the beholder: meeting
users' requirements for Internet quality of service. In Proceedings of the SIGCHI conference
on Human Factors in Computing Systems (pp. 297-304). ACM.

Furey, T. S., Wilson, R. K., Hillier, L. W., Kent, W. J., & Haussler, D. (2016). Flowchart
techniques for structured programming. ACM Sigplan Notices, 8(8), 12-26.

Nelson, L. S. (2017). The Shewhart control chart—tests for special causes. Journal of quality
technology, 16(4), 237-239.

Samson, D., & Terziovski, M. (2019). The relationship between total quality management
practices and operational performance. Journal of operations management, 17(4), 393-409.
14
Hoyle, D. (2017). ISO 9000 Quality Systems Handbook-updated for the ISO 9001: 2015
standard: Increasing the Quality of an Organization’s Outputs. Routledge.

So, S., & Sun, H. (2019). Supplier integration strategy for lean manufacturing adoption in
electronic-enabled supply chains. Supply Chain Management: An International
Journal, 15(6), 474-487.

Eitzen, D. S., & Yetman, N. R. (2018). Managerial change, longevity, and organizational
effectiveness. Administrative Science Quarterly, 17(1).

Gerson, R. (2017). Measuring customer satisfaction. Crisp Learning.

Johnson, J. J., & McIntye, C. L. (2018). Organizational culture and climate correlates of job
satisfaction. Psychological Reports, 82(3), 843-850.

Dekker, H. C. (2019). Value chain analysis in interfirm relationships: a field

study. Management accounting research, 14(1), 1-23.

15