Harvard Case - GlaxoSmithKline: Sourcing Complex Professional Services
"GlaxoSmithKline: Sourcing Complex Professional Services" Harvard business case study is written by Heidi K. Gardner, Silvia Hodges Silverstein. It deals with the challenges in the field of Organizational Behavior. The case study is 16 page(s) long and it was first published on : Sep 3, 2013
At Fern Fort University, we recommend that GlaxoSmithKline (GSK) implement a comprehensive strategy for sourcing complex professional services. This strategy should focus on building a robust internal capability for managing these services, fostering strong relationships with key external providers, and leveraging technology to enhance efficiency and transparency.
2. Background
This case study focuses on GSK's struggle to effectively source complex professional services, such as legal, consulting, and IT services. The company faces challenges in managing these services across different regions and business units, leading to inconsistencies in quality, cost, and compliance. This situation is further complicated by the increasing complexity of the pharmaceutical industry, requiring specialized expertise and agility.
The main protagonists in this case are:
- John Brown: GSK's Global Head of Procurement, tasked with improving the company's sourcing strategy.
- Sarah Jones: Head of Legal for GSK's North American division, facing challenges with managing external legal counsel.
- David Lee: Head of IT for GSK's European division, grappling with the complexities of sourcing IT services.
3. Analysis of the Case Study
This case study can be analyzed through the lens of organizational behavior, leadership, and strategic management.
- Organizational Behavior: GSK's decentralized structure and siloed decision-making processes contribute to inconsistencies in sourcing practices. The lack of a clear framework for managing external providers leads to a lack of accountability and transparency. This is further exacerbated by power and politics in organizations, with different business units prioritizing their own needs over the overall company's interests.
- Leadership: GSK's leadership needs to embrace a more transformational leadership style, fostering a culture of collaboration and shared accountability. This requires clear communication, delegation of authority, and empowering employees to contribute to the sourcing process.
- Strategic Management: GSK needs to develop a clear corporate strategy for sourcing complex professional services. This strategy should consider the company's core competencies, external environment, and long-term goals.
Framework: The Porter's Five Forces framework can be used to analyze the competitive landscape and identify opportunities for GSK to improve its sourcing strategy.
Key Findings:
- High bargaining power of suppliers: The specialized nature of complex professional services gives suppliers significant leverage.
- High threat of new entrants: The increasing demand for these services attracts new entrants, intensifying competition.
- High threat of substitutes: Alternative solutions, such as internal expertise development, can pose a threat to external providers.
- Moderate rivalry among existing firms: Competition among established providers is intense, but collaboration and partnerships are also common.
- Moderate buyer power: GSK holds moderate bargaining power, but its size and global reach give it some leverage.
4. Recommendations
- Establish a Centralized Sourcing Function: Create a dedicated team responsible for managing all complex professional services across the company. This team should be responsible for developing sourcing strategies, negotiating contracts, and monitoring performance.
- Develop a Standardized Sourcing Process: Implement a clear and consistent process for sourcing complex professional services, encompassing needs assessment, vendor selection, contract negotiation, and performance management. This process should be documented and communicated to all stakeholders.
- Leverage Technology: Invest in technology solutions to streamline the sourcing process, enhance transparency, and improve data analytics. This includes using online platforms for vendor management, contract management, and performance tracking.
- Foster Strong Partnerships: Build long-term relationships with key external providers, based on mutual trust and shared goals. This requires open communication, collaborative problem-solving, and a focus on value creation.
- Develop Internal Expertise: Invest in developing internal capabilities to manage complex professional services. This could include training programs, knowledge sharing initiatives, and internal talent development.
- Promote a Culture of Collaboration: Encourage cross-functional collaboration among different business units and departments to ensure that sourcing decisions align with the company's overall strategy.
- Implement a Performance Management System: Establish a robust system for monitoring and evaluating the performance of external providers. This system should include key performance indicators (KPIs), regular performance reviews, and a mechanism for addressing performance issues.
- Embrace Diversity and Inclusion: Encourage a diverse range of external providers, considering factors like geographic location, experience, and expertise. This will help GSK access a wider pool of talent and ensure that its sourcing decisions are inclusive and equitable.
5. Basis of Recommendations
These recommendations are based on the following considerations:
- Core competencies and consistency with mission: By developing a centralized sourcing function and standardized process, GSK can ensure that its sourcing activities align with its core competencies and mission of improving patient health.
- External customers and internal clients: The recommendations aim to improve the quality and efficiency of services delivered to both external customers and internal clients, ensuring satisfaction and value creation.
- Competitors: GSK needs to stay ahead of its competitors by leveraging technology and fostering strong partnerships with leading external providers. This will help the company maintain its competitive edge in the pharmaceutical industry.
- Attractiveness ' quantitative measures if applicable: The recommendations are expected to generate significant cost savings and improve efficiency through improved negotiation, reduced duplication of efforts, and enhanced performance monitoring.
6. Conclusion
By implementing these recommendations, GSK can significantly improve its ability to source complex professional services effectively. This will lead to improved quality, cost-efficiency, and compliance, ultimately contributing to the company's success in the competitive pharmaceutical industry.
7. Discussion
Alternatives:
- Outsourcing all services: While this might seem like a solution, it can lead to a loss of control and expertise.
- Maintaining the current decentralized approach: This will continue to lead to inconsistencies and inefficiencies.
Risks:
- Resistance to change: Some employees may resist the implementation of a new sourcing strategy.
- Lack of resources: Implementing these recommendations requires significant investment in technology, personnel, and training.
Key Assumptions:
- GSK's leadership is committed to implementing these recommendations.
- The company has the resources necessary to implement the changes.
8. Next Steps
- Form a task force: Assemble a cross-functional team to develop a detailed implementation plan.
- Conduct a pilot program: Test the new sourcing process in a specific business unit or region before rolling it out company-wide.
- Communicate the changes: Clearly communicate the new sourcing strategy to all stakeholders.
- Monitor and evaluate: Regularly monitor the implementation of the new strategy and make adjustments as needed.
This comprehensive approach will enable GSK to effectively manage its sourcing of complex professional services, ensuring optimal performance and contributing to the company's overall success.
Hire an expert to write custom solution for HBR Organizational Behavior case study - GlaxoSmithKline: Sourcing Complex Professional Services
- Glaxosmithkline Reorganizing Drug Discovery
- Glaxosmithkline Pharmaceuticals Ltd Reinventing Incentives Performance
- Glaxosmithkline Brazil Publicprivate Vaccine Partnerships
- Ghsmart Pioneering Professional Services
- Crafting Executing Offshore Sourcing Strategy Globshops Experience
- Pharmaceutical Industry S
- General Dynamics Computer Sciences Corp Outsourcing Function
- Maintaining Identity Acquisition Whats Next Lek Pharmaceuticals
- Eli Lilly Co Drug Development Strategy
- Procter Gamble Global Business Services
- General Electric Medical Systems
- Improving Customer Service Sunpharma Pharmacies
Case Description
Pharmaceutical company GlaxoSmithKline (GSK) uses an innovative new approach to procuring outside legal counsel: it replaces relationship-based selection and law firms' traditional time-based billing with data-driven decision making and an online reverse auction. In the case, GSK is hit with a potentially devastating suit and must hire a firm in time to respond. The recently hired managing attorney, Sophia Keating, grapples with GSK's approach. The GSK veterans assure her that the approach drives down costs and improves the quality of work by systematically increasing the rigor in the procurement process. Still skeptical, Sophia runs the process of systematically analyzing and comparing the competing firms' bids. This case also describes the process by which these tools were created and adopted. Beyond the implications for law firms and other service providers, lessons from this case are applicable for teaching about institutional change, procurement processes relevant to many fields, and how to increase rigor in typically informal business processes.
🎓 Struggling with term papers, essays, or Harvard case studies? Look no further! Fern Fort University offers top-quality, custom-written solutions tailored to your needs. Boost your grades and save time with expertly crafted content. Order now and experience academic excellence! 🌟📚 #MBA #HarvardCaseStudies #CustomEssays #AcademicSuccess #StudySmart Write my custom case study solution for Harvard HBR case - GlaxoSmithKline: Sourcing Complex Professional Services
Hire an expert to write custom solution for HBR Organizational Behavior case study - GlaxoSmithKline: Sourcing Complex Professional Services
GlaxoSmithKline: Sourcing Complex Professional Services FAQ
What are the qualifications of the writers handling the "GlaxoSmithKline: Sourcing Complex Professional Services" case study?
Our writers hold advanced degrees in their respective fields, including MBAs and PhDs from top universities. They have extensive experience in writing and analyzing complex case studies such as " GlaxoSmithKline: Sourcing Complex Professional Services ", ensuring high-quality, academically rigorous solutions.
How do you ensure confidentiality and security in handling client information?
We prioritize confidentiality by using secure data encryption, access controls, and strict privacy policies. Apart from an email, we don't collect any information from the client. So there is almost zero risk of breach at our end. Our financial transactions are done by Paypal on their website so all your information is very secure.
What is Fern Fort Univeristy's process for quality control and proofreading in case study solutions?
The GlaxoSmithKline: Sourcing Complex Professional Services case study solution undergoes a rigorous quality control process, including multiple rounds of proofreading and editing by experts. We ensure that the content is accurate, well-structured, and free from errors before delivery.
Where can I find free case studies solution for Harvard HBR Strategy Case Studies?
At Fern Fort University provides free case studies solutions for a variety of Harvard HBR case studies. The free solutions are written to build "Wikipedia of case studies on internet". Custom solution services are written based on specific requirements. If free solution helps you with your task then feel free to donate a cup of coffee.
I’m looking for Harvard Business Case Studies Solution for GlaxoSmithKline: Sourcing Complex Professional Services. Where can I get it?
You can find the case study solution of the HBR case study "GlaxoSmithKline: Sourcing Complex Professional Services" at Fern Fort University.
Can I Buy Case Study Solution for GlaxoSmithKline: Sourcing Complex Professional Services & Seek Case Study Help at Fern Fort University?
Yes, you can order your custom case study solution for the Harvard business case - "GlaxoSmithKline: Sourcing Complex Professional Services" at Fern Fort University. You can get a comprehensive solution tailored to your requirements.
Can I hire someone only to analyze my GlaxoSmithKline: Sourcing Complex Professional Services solution? I have written it, and I want an expert to go through it.
🎓 Struggling with term papers, essays, or Harvard case studies? Look no further! Fern Fort University offers top-quality, custom-written solutions tailored to your needs. Boost your grades and save time with expertly crafted content. Order now and experience academic excellence! 🌟📚 #MBA #HarvardCaseStudies #CustomEssays #AcademicSuccess #StudySmart Pay an expert to write my HBR study solution for the case study - GlaxoSmithKline: Sourcing Complex Professional Services
Where can I find a case analysis for Harvard Business School or HBR Cases?
You can find the case study solution of the HBR case study "GlaxoSmithKline: Sourcing Complex Professional Services" at Fern Fort University.
Which are some of the all-time best Harvard Review Case Studies?
Some of our all time favorite case studies are -
Can I Pay Someone To Solve My Case Study - "GlaxoSmithKline: Sourcing Complex Professional Services"?
Yes, you can pay experts at Fern Fort University to write a custom case study solution that meets all your professional and academic needs.
Do I have to upload case material for the case study GlaxoSmithKline: Sourcing Complex Professional Services to buy a custom case study solution?
We recommend to upload your case study because Harvard HBR case studies are updated regularly. So for custom solutions it helps to refer to the same document. The uploading of specific case materials for GlaxoSmithKline: Sourcing Complex Professional Services ensures that the custom solution is aligned precisely with your needs. This helps our experts to deliver the most accurate, latest, and relevant solution.
What is a Case Research Method? How can it be applied to the GlaxoSmithKline: Sourcing Complex Professional Services case study?
The Case Research Method involves in-depth analysis of a situation, identifying key issues, and proposing strategic solutions. For "GlaxoSmithKline: Sourcing Complex Professional Services" case study, this method would be applied by examining the case’s context, challenges, and opportunities to provide a robust solution that aligns with academic rigor.
"I’m Seeking Help with Case Studies,” How can Fern Fort University help me with my case study assignments?
Fern Fort University offers comprehensive case study solutions, including writing, analysis, and consulting services. Whether you need help with strategy formulation, problem-solving, or academic compliance, their experts are equipped to assist with your assignments.
Achieve academic excellence with Fern Fort University! 🌟 We offer custom essays, term papers, and Harvard HBR business case studies solutions crafted by top-tier experts. Experience tailored solutions, uncompromised quality, and timely delivery. Elevate your academic performance with our trusted and confidential services. Visit Fern Fort University today! #AcademicSuccess #CustomEssays #MBA #CaseStudies
How do you handle tight deadlines for case study solutions?
We are adept at managing tight deadlines by allocating sufficient resources and prioritizing urgent projects. Our team works efficiently without compromising quality, ensuring that even last-minute requests are delivered on time
What if I need revisions or edits after receiving the case study solution?
We offer free revisions to ensure complete client satisfaction. If any adjustments are needed, our team will work closely with you to refine the solution until it meets your expectations.
How do you ensure that the case study solution is plagiarism-free?
All our case study solutions are crafted from scratch and thoroughly checked using advanced plagiarism detection software. We guarantee 100% originality in every solution delivered
How do you handle references and citations in the case study solutions?
We follow strict academic standards for references and citations, ensuring that all sources are properly credited according to the required citation style (APA, MLA, Chicago, etc.).