This is the report of Global business subject. In this report we have to discuss the opportunities, risk and recommendations to expand the business in South Africa and China. I have attached two files...

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This is the report of Global business subject. In this report we have to discuss the opportunities, risk and recommendations to expand the business in South Africa and China. I have attached two files which gives the proper information of this report. In one file there are some factor of each country on which we have to discuss 1.political and Government factor2. Market factors3.human resource factors4. Profit retention factors.Read the below carefully and make this report according to below and attached file properly and below alsoCase Scenario:AUSMED, an Australian pharma company manufacturing drugs, has grown fast in the last 10 years. It currently 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/currency 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)
Answered Same DayAug 30, 2020MNG00723Southern Cross University


Kuldeep answered on Aug 31 2020
51 Votes
Pharmaceutical industries
Market Entry Strategy
Market Entry Strategy
Student Name:
University Name:
Unit Name:
Introduction    2
Analysis of Risks and Opportunities    2
South Africa    2
China    4
Selected Destination    7
Justification of proposed choice    7
Market Entry Strategies    9
Conclusion    10
References    12
The pharmaceutical business has taken over globally. Most advanced countries, for example, India, South Africa and China, have entered into Western medical business, have abandoned traditional treatments as well as taken up the whole Western medicine. These have given pharmaceutical companies huge benefits because they have made a lot of profit from these advanced or developing countries. Most of the businesses have expanded to these countries because they are more profitable, have a huge population and they are international
ands, they are also more likely to increase the faith of their customers (Church, 2016).
Analysis of Risks and Opportunities
South Africa
Political and Government factor: Africa is not a unified market, but it has 54 different markets. There is a huge gap between the countries in the terms of growth trajectory, market size, legal structure, macroeconomic structure moreover political complexity. In the past decades, ten countries have delivered two-third of Africa’s Gross Domestic Product and cumulative growth.1 Nevertheless; most of the opportunities are not at the national level but at the cities also. In the parts of Africa, the distribution and supply mechanisms are still present challenges: a
angements are evolving, transportation as well as logistics infrastructure is incomplete, and delivery times may be lengthy (Davari, Walley and Haycox, 2011).
Market factors: Manufacturing medicines and other products: It seems to be largest opportunity that most of the foreign pharmaceutical industries can have in the future. The drugs or medicines supplied to South Africa are mainly from India or China, but many other industries have recently entered, because market of South Africa’s pharmaceutical industry is huge and lots of international
ands can easily grab large number of customers in South Africa (Davari, Walley and Haycox, 2011). The pharmaceutical industry must be ca
ied out within Africa, however because the government is eager to spend many money or get many assistance from the foreign donors, business will become a most profitable businesses on the market.
Human resource factors: Expanding the u
an population: The u
an population in Africa is constantly expanding and this does not seem to stop. Since most u
an residents earn more than rural residents, South Africa has higher demand for quality medicines and medicines than other countries. About 11,000 babies are born in Nigeria every day. Like other countries, South Africa’s population is growing at an unprecedented rate and lacks sufficient medicines for people to use. This is another opportunity for pharmaceutical companies to expand into South Africa.
Profit retention factors: The pharmaceutical industry in Africa has grown rapidly over the years. From 2003 to 2013, it jumped from $430 million to $2 billion in profits (Hafeez and Akbar, 2015). By the end of 2020, the market is expected to be worth about $6.5 billion. This is because the country has many opportunities.
Infrastructure factor: International pharmaceutical companies require local business partner - manufacturers, distributors and packaging companies - help them to grow in many markets across the continent, with different customer preferences, manufacturing, price points moreover distribution infrastructure. It is equally important to have a partnership with the government, whether it is to work with medical ideal leaders to guide explore priorities and access to funding, and to work with the Ministry of Health or NGOs to provided public awareness activities, treatments, equipment, health checks and training (Hunter, 2007).
Economic factor: Traditional treatments: Like most advanced countries, South Africa invests much money for medical care. However, most poor people living in the villages and they do not easily get these western medicines. It means that they adhere to traditional forms of treatment. This may lead to huge losses for pharmaceutical industry (Mosikari, 2013). For example, in case of dia
hoea, if traditional he
s can produce the same effect, people may be reluctant to buy Western medicine. This will result in millions of losses and is biggest risk. The African population is undergoing tremendous changes.
Legal and regulatory factor: The country's pharmaceutical laws are constantly changing as each new power change in the country. This makes the law very unclear about intellectual property rules (To
e and Albericio, 2017). A few years ago, the law favoured the use of generic drugs, which led to problems within the state and government. However, due to lo
ying, the law was quickly overturned and many large pharmaceutical companies flocked to take over the country's huge pharmaceutical market (Mosikari, 2013). However, these laws are still unstable and this should be considered a huge risk.
Political and Government factor: Innovative distribution channels and the ability to build effective operations in this challenging environment are critical to catch growth or development opportunities. In key areas of customs as well as border control, the companies must work with most decent agents to decrease shipping delays, utilize and only a bonded distribution centre, and make sure that every customs paperwork are impenetrable.
Market factors: China is also a major competitor to foreign expansion. In 2017, China's pharmaceutical market value was nearly $14.4 billion. By 2022, the estimated value is more than $17.5 billion. There are many opportunities and risks to keep up with the Chinese market (Sendyona, 2014). China is one of the most popular countries in the globe and has the longest duration. It means that the organization's...

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