Two Different Firms Operating in Different Countries But With Similar Challenges

Comparative Analysis between Apple Inc. and GlaxoSmithKline

The purpose of this paper is to explain a comparative analysis of Apple Inc. and GlaxoSmithKline companies, showing similarities in the problems they encounter. Apple Inc. is an American international corporation, with its headquarters in Cupertino, California. It designs and advertises electronics products, computer software and individual computers. The hardware products at the company include the iPad, iPhone, iPod, Apple watch, and Macintosh types of computers. The software products, on the other hand, include the iLife, iTunes, Mac OS X operating systems, iWork, and Aperture. GlaxoSmithKline is a British pharmaceutical company with its headquarters in Brentford, London. Its main undertaking is to progress the value of human life by empowering people to do more, feel healthier and live longer. Its major activities include formation, discovery, growth, production and advertising of pharmaceutical and consumer health related products (Fox & Rydberg, 2013).

Both companies face similar problems regarding their products in the market, poor employee relations, and investigations for breaking the rules and regulations in the presiding countries or states. To begin with Apple Inc., it is facing challenges in production of some of its products which are in high demand. For example, the production of iPhone 6 Plus and iPhone 6, there is likelihood that there might be scarcities of iPhone 6 in the market as the company moves focus to the manufacture of iPhone 6 Plus. It is also losing its talented employees, which might cause the crisis of future talents (Lashinsky, 2013). The other problem is that the company is fronting investigations for human rights desecrations at a supplier workshop used to build iPhone and iPad parts in China. Most of its suppliers have had unethical practices including use of juvenile labor at ten facilities, dangerous working conditions at two facilities, and bribery incident at one facility.

GlaxoSmithKline on the other hand is facing problems with some of its products. For example their over dependence on bestseller inhaler Advair, which accounts for fifth of the company’s transactions is fast losing market share to newer competitors hurting the company’s level of profitability. Also their new drugs in the late –stage development may fail to sell quickly hurting the profit margins in the company (Fox, 2013). The other problem facing the company is the bribery accusations in China. It is believed that GSK used resident travel organizations as heads to convince doctors and government administrators to increase drug sales in the country. These problems are scaring investors from putting their resources in the company in future which might affect their growth and expansion and their competency in the market.

On political issues, Apple Inc. was an associate of the World Business Council for Sustainable Development (WBCSD), which was viewed as an entrance group that applied corporate guidance on policy makers in courtesy of market resolutions that were detrimental to the environment and human rights. The access for Apple in the US market detailed the company’s political promoting events in the US. When it comes to social responsibilities, the company is dedicated to maintain it as long as their products are made. It asserts that suppliers provide safe working conditions and workers treated with self-worth (Lashinsky, 2013). On ethical issues, Apple is fronting several issues from its supplier firms, ranging from using dangerous chemicals that caused the death of 49 people, to child labor, issues which Apple Company have incorporated in their Supplier Responsibility Policy to help stop the defects. Concerning legal issues, Apple Ins. implements its intellectual property rights as required by the law. It partners with Business Software Alliance (BSA) and the Software Information Industry Association to combat software piracy globally (Lashinsky, 2013).

Political issues that affect the supply chain of GSK include potential alterations in international trade rules and competitive protocols likely to be presented by various governments like China and India. Social issues include variations in customer lifestyles and moves in consumer attitudes and views. On ethical issues, GSK is dedicated to steering its business with trustworthiness and integrity, with ethics and compliance with relevant laws and protocols (Fox, 2013). Legal issues include the rules and regulations related to GSK operations resident markets, European Law and global trade rules and regulations. The political, ethical, social and legal differences in the two companies have impacts on management decision making which can either have negative or positive impacts in the growth of a particular company. These can lead to poor decision making if the required rules and regulations are not adhered to, and overall failure of the company. It also adds the operational costs of the company since more funds will be needed to correct the mistakes and improve company performance.

In conclusion, it is mandatory that companies take decision making critically when coming up with issues that relate to all the stakeholders in the company, employees, suppliers, consumers and the investors (Fox & Rydberg, 2013). With the correct coordination between all members of the team, there will be reduced political, social, ethical and legal issues that cause the downfall of a company. It is therefore recommended that the management team consider these factors when making company decisions. Tagging on that is the essence of knowing a countries political, social, ethical and legal environment before establishing a firm to avoid litigations and company failures.

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