MNG 00723 Assessment 2: Report (40 marks) 2500 words Due: Monday 9 am Week 10 Case Scenario: AUSMED, an Australian pharma company manufacturing drugs, has grown fast in the last 10 years. It currently...

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MNG 00723 Assessment 2: Report (40 marks) 2500 words
Due: Monday 9 am Week 10
Case Scenario:
AUSMED, an Australian pharma company manufacturing drugs, has grown fast in the last 10 years. It cu
ently employs 60 staff and has an annual turnover of approximately AUD 30 million. However, growth has recently stalled, and AUSMED is now considering South Africa and China to expand its business, and enter the global marketplace for the first time. As an Operations Manager at AUSMED, prepare a report (2500 words) for the company’s executive summarising the risks and opportunities in each of these two countries, recommend the best destination country, and an appropriate entry mode for the chosen country.
For this task, you will need to read materials beyond your text and readings. As a guide you should include 15 references which may include academic sources, government websites, and reports published by international organisations and consultancies. Please place the word count for this assignment on the cover sheet. 10% more or less than the stated word count is acceptable. Executive summary, table of contents, tables, visuals, references and appendices will not be included in the word count. The marker may, at their discretion, discontinue marking if you go above 10% of the recommended word limit.
Some suggestions/tips:
For this assessment task, you are expected to demonstrate your understanding of the following:
• How to assess country potential through an analysis of risks and opportunities. Risks that should be emphasised (but not limited to) in particular are those relevant to pharmaceutical businesses such as legal aspects, government regulations and financial/cu
ency risks. Opportunities may include (but not limited to) market size, economic growth and trade agreements between the 2 countries.
• How to identify the best market entry strategy based on the business type and host country business environment (this includes but not limited to the level of economic integration between home and host country, the political and legal environment of the host country). The recommended strategy must be well justified based on all the factors (e.g., organisational goals and objectives, resource requirement, degree of control required, risks in the target market, etc.) to consider when deciding entry strategy.
Structure (suggested word count):
This assignment should be written in a report format. Here is a suggested structure:
· Executive Summary
· Table of Contents
· Introduction XXXXXXXXXXwords)
· Analysis of risks and opportunities (must be relevant to the nature of the business) in each country (South Africa and China XXXXXXXXXXwords)
· The selected destination country (Select one country and justify your decision XXXXXXXXXXwords)
· Discuss and justify the proposed entry for the chosen country XXXXXXXXXXwords)
· Conclusion XXXXXXXXXXwords)
· References (Harvard-style)
· Appendices (if any)
Marking Criteria:
    
    Marks
    1. Discussion on risks and opportunities in each of the 2 shortlisted countries (19 marks)
    Comprehensiveness of factors (risks and opportunities) considered
     (10 marks)
(6 marks)
(3 marks)
    Depth of analysis
    
    Justification for the chosen country

    
    2. Recommendation on entry strategy XXXXXXXXXX15 marks)
    Appropriate and practical
     (4 marks)
(4 marks)
(7 marks)
    Consistent with unit materials
    
    Justification of chosen entry method (with proper explanation of why this is the best method in the context of the given case).
    
    3. Overall Presentation XXXXXXXXXX6 marks)
    References (relevance and format)
     (2 marks)
(2 marks)
(2 marks)
    Co
ect report format
    
    Co
ect grammar and spelling
Answered Same DayAug 30, 2021MNG00723Southern Cross University

Solution

Abhishek answered on Sep 19 2021
56 Votes
MANAGEMENT OF THE PHARMACEUTICAL BUSINESS
Executive Summary
This report is based on the management of the pharmaceutical business. The discussion of risk factors and opportunities of two selected countries are South Africa and China is presented. In the context of South Africa and China, there is the presence of risk factors from various perspectives like political, commercial, financial and cross-cultural factors. Clear observation of the pharmaceutical business market of those two countries it is observed Chinese pharmaceutical industry can be proved beneficial for the establishment of the pharmaceutical business of Australian drug manufacturing company, AUSMED. Furthermore, it is also observed that the macroeconomic factors of China may serve economic growth to AUSMED.
Table of Contents
Introduction    4
Analysis of Risks and Opportunities    4
Risks and Opportunities in South Africa    4
Country or Political Risks    4
Financial Risks    5
Cross-Cultural Risks    5
Commercial Risks    5
Risks and Opportunities in China    6
Country or Political Risks    6
Financial Risks    6
Cross-Cultural Risks    7
Commercial Risks    7
Selecting China as the Destination Country    8
Discussion and Justification of Proposed Entry in China    9
Conclusion    10
References    11
Introduction
Management is the essential factor for operating business activities with successful format and in that case, discussion part presents management of pharmaceutical business. This report is constructed to highlight risks and opportunities for AUSMED who desired to log in its pharmaceutical business in a global market. The organisation desired to expand its business into the South Africa and China. Therefore, the report is enclosed with the entire assessment of risks and opportunities that can affect AUSMED to expand its business in the business context of China and South Africa.
Similarly, the report is also synthesis the best recommendation of the destination country that the organisation can place better business. The entire risk factors such as political, economic, cross cultural and commercial in China and South Africa are enclosed in the report that helps the organisation to select its destination country to expand their business. The organisation will privilege by the information of the report that summarizes with the risks and risk assessment factors that can affect the AUSMED for the investment in foreign countries. It will help them to access the entire risk factors and also provide scopes to grab the entire opportunities of the destination country before they take their investment decision.
Analysis of Risks and Opportunities
Risks and Opportunities in South Africa
Country or Political Risks
Across the world and especially in South Africa political forces have been dynamic in nature. Differential political forces in the context of pharmaceutical and healthcare sector are required to withstand severe pressure. Continuous pressure of political forces in terms of pharmaceutical as well as health care activities in the context of South Africa denotes the focus of the government of that country. Political environment that prevails in South Africa contexts reflects through the presence of issues in the development of the pharmaceutical industry.
Within the various business sectors, there is also the presence of a political factor that serves a negative impact for the organisations. According to Wocke and Moodley (2015), the political forces in the different business sectors, especially in the pharmaceutical sector of South Africa is also impact on the economic grounds of the country and the pharmaceutical companies. There is the presence of violations in the management of the pharmaceutical business. These serve hindrances in the expansion of the pharmaceutical business. Pharmaceutical companies are dealing with various prescribed drugs and for this the needs the authorised licence for the expansion of the business. Presence of turmoils in the political sectors is problematic for the expansion of healthcare business in South Africa.
Financial Risks
Economy or the financial factors of every business organisation depend on market scenario of the country where they operate their business. At the time of establishing business, pharmaceutical companies are required to analyse the levels of profitability that the South African economy can deliver to them. The economic stability of South Africa is unstable in the establishment of any business and especially for the pharmaceutical sector. The major risk factor, which is presented in the economic sector of South Africa in terms of pharmaceutical business, is the presence of a fragmented market. As opined by Kasozi (2017), due to the presence of a fragmented market in South Africa, there is the presence of less scope in the establishment of new business. It is observed that the banks in South Africa are not accepting fast loan for the start-up companies and that may serve hindrance to the pharmaceutical start-up companies. However, GDP rates of South Africa are facing its downfall and this poses risks for the investment by Pharmaceutical companies operating in its market.
Cross-Cultural Risks
There is the presence of a variety of cultures in South Africa and this factor causes different risk factor for the establishment of new business. According to the reports, it is observed that in previous years, various business countries are trying to establish their business in South Africa but they faced issues due to the age-old culture of that country. As argued by Boso et al. (2019), local customers of South Africa cross-cultural sectors. This may serve a major reason for the establishment and failure of pharmaceutical business in this country.
Commercial Risks
Business infrastructure, which prevails in the context of South Africa, is not helpful for the pharmaceuticals industry. Therefore, the pharmaceutical industry may face various commercial issues related to taxation at the time of operating their business activities. According to Matongo et al. (2015), involvement of taxation issues in the healthcare sector is the basic risk that the pharmaceutical companies may face in the South African market. Commercial risk factors still exist in the business context of South Africa but the government of that country is spending more in their pharmaceutical business. As suggested by Ndomondo-Sigonda et al. (2017), spending with high ranges in the pharmaceutical industry can help the pharmaceutical companies to acquire success in their business. Through the harnessing of social networking technologies, lifestyle of the South African citizens is also changing.
With the establishment of...
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