Doing Business Globally & Internationally

Running head: DOING BUSINESS GLOBALLY & INTERNATIONALLY
Doing Business Globally and Internationally
[Business Partnership Between of Pfizer Inc. with Zhejiang Hisun Pharmaceuticals]
Name of the student:
Name of the university:
Author note:

1DOING BUSINESS GLOBALLY & INTERNATIONALLY
Executive summary-
The study is aimed at understanding the different factors, which influence the business performance.
The purpose is being served through the example of joint venture between Pfizer and Hisun. The
venture has however failed to deliver on the set expectations. The paper identifies few reasons for
failure. Cultural difference in specific the organizational culture is being shown as one of the reasons
for failure.

2DOING BUSINESS GLOBALLY & INTERNATIONALLY
Table of Contents
Introduction-....................................................................................................................................4
Part A: Answer to Question 1-.........................................................................................................4
1.1 Important external issues & trends driving the partnership-.............................................4
1.2 Area of expected benefits & synergies for both the companies-.......................................6
1.3 Reason behind the involvement of Chinese and US governments-...................................7
2. Describing the partnership-......................................................................................................8
2.1 Explaining the associated risks-.........................................................................................8
2.2 Comparing & contrasting this with Pfizer Inc.’s recent partnership with Hospira-..........9
2.3 Justifying the views-..........................................................................................................9
3. Analyzing the cultures involved-.............................................................................................9
3.1 Corporate culture in Pfizer and Hisun-............................................................................12
3.2 Organization culture:.......................................................................................................13
3.3 Impact on the partnership-...............................................................................................14
4. Critical discussion of the possible effects of the exchange rate behavior-............................15
Part B:............................................................................................................................................16
5. Three challenges of doing business internationally-.............................................................16
5.1 Impact of challenges on a learner-...................................................................................17
5.2 Impact on the future of international business-...............................................................18
Conclusion-....................................................................................................................................18

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References-....................................................................................................................................20
Appendix-......................................................................................................................................28
1. Hofstede’s cultural dimension for the United States and China-..........................................28
2. PESTEL analysis of the USA pharmaceutical industry-.......................................................28
3. PESTEL of China pharmaceutical industry-.........................................................................31
4. Porter's five forces of pharmaceuticals industry in China and USA-....................................34
China:-...................................................................................................................................34
USA:-.....................................................................................................................................36
5. VRIN analysis of Pfizer and Hisun-......................................................................................37
6. Value chain for Pfizer and Hisun-.........................................................................................39
7. SWOT analysis of Pfizer & Hisun:-......................................................................................42
8. Charles Handy Model:...........................................................................................................45

4DOING BUSINESS GLOBALLY & INTERNATIONALLY
Introduction-
The partnership working is a boom in the global pharmaceutical industry. There can be many
reasons for it; however, moving beyond the patent medicine concept is one of those that attract
Multinational Corporation towards it. Multinational companies wish to continue with their highest
selling product even after the expiring of patent medicine. Commercializing the off-patent medicine
has become a source of good business (Lezaun & Montgomery, 2015). The same purpose has driven
the interest of Pfizer and Hisun for a collaborating business. Both the companies have analyzed the
business opportunities with the off-patent medicine. The result of such interest has produced one of
the most notable joint venturing the global pharmaceutical industry has ever witnessed
(Press.pfizer.com, 2017). The main purpose of this assignment is to analyze the challenges, which is
there in partnering business.
Part A: Answer to Question 1-
(Refer to Appendix 2)
The analysis does provide some supportive facts that may prove the business relationship of
Pfizer with Hisun a success. Developing countries such as China is a potential market for generic
medicines. The reasons behind the facts include the stable local government policies for off-patent
medicines, developing infrastructure, demand for such medicines etc. However, the business
relationship needs to have a plan to counter the various environmental challenges such as proper
disposal of unwanted medicines as these are extracted through urination. A significant amount of
medicines is disposed through urination and pollute the rivers and the surrounding environment. Eco-
friendly drugs will be the potential answer to the identified challenge (Cameron et al., 2012).
1.1 Important external issues & trends driving the partnership-

5DOING BUSINESS GLOBALLY & INTERNATIONALLY
a) Macro & micro environmental analysis-
Macro environmental analysis-
(See Appendix 2 & 3)
Micro environmental analysis-
(See Appendix 4)
b) Internal analysis-
VRIN of Pfizer & Hisun-
(See Appendix 5)
Value chain of Pfizer & Hisun-
(See Appendix 6)
c) Analysis based on SWOT, PESTEL, 5 Forces, Value Chain and VRIN-
(See Appendix 2 to 7)
The joint venture between Pfizer and Hisun is one of the biggest deals in the global
pharmaceutical industry. The deal has probable been done to satisfy the needs of individual. Pfizer
has probably done the deal after getting encouraged from the prospects of generic medicines in
developing nations such as China. China is one of the biggest platforms for generic medicines. Hisun
is the leader in generic medicines in China. The mentioned facts have probably attracted Pfizer
towards the deal (Cameron et al., 2012). However, it could not turn up as expected. The dropping
profits of Hisun especially in the US market have probably encouraged the deal to fail. The huge

6DOING BUSINESS GLOBALLY & INTERNATIONALLY
reduction in supply of doses is probably one of the reasons. However, Pfizer has ensured that the
company will keep on providing the technological and legal support to generic drug manufacturing at
the global platform. The generic drugs will now be manufactured locally in China (Huang et al.,
2013). The joint venture deal had looked a potential move due to the fact that Hisun is a leading firm
in China in manufacturing of generic drugs and the generic drugs are picking up in demand at the
global level especially in the developing nations. The deal would have benefitted Hisun from the
technological and the legal perspectives both in China and at the global level. However, it could not
prove wonder for Hisun as the supply of doses had dropped in US and that had encouraged Pfizer to
move out of the deal (Fiercepharma.com, 2017).
1.2 Area of expected benefits & synergies for both the companies-
Following are the expected benefits of the joint venturing in between the Hisun and Pfizer:
 Will be one of few resources to provide high-quality and inexpensive medicines to the people
at the global platform (Press.pfizer.com, 2017)
 Joint venture will be benefitted by Pfizer through an efficient R&D process, international
standard for market promotion, operational capabilities and manufacturing quality
management (Press.pfizer.com, 2017)
 Joint venture will be benefitted in China as the country has 70% of the entire domestic
pharmaceutical industry for off-patent medicines (Press.pfizer.com, 2017)
Synergies:
(See appendix 7)
The joint venturing was a result of mutual benefits for both Pfizer and Hisun. Hisun had
aimed to get benefits of research & development (R&D) expertise, the technological background and

7DOING BUSINESS GLOBALLY & INTERNATIONALLY
the legal supports at the global platform. In this way, Hisun could have expanded in few other
markets at the global level. On the other hand, Pfizer had aimed to get a good understanding of
Chinese market for generic drugs. Nevertheless, China is a highly potential market for generic drugs.
Hisun is a leading name in China in terms of manufacturing the generic drugs. In this way, the joint
venture had probably happened to get the expected benefits to both the partnering companies.
1.3 Reason behind the involvement of Chinese and US governments-
There can be many reasons such as the prospering demand for the off-patent medicine in the
world especially in emerging countries. China is a highly potential market for generic medicines
probably because such medicines are cost-effective and high in quality (Hassali et al., 2014).
Pharmaceutical industry is a key sector, which significantly contributes in the local economy. Hisun
is a leading name in China for generic drug manufacturing. The joint venture was supposed to allow
a wider exposure to different market, access to advanced research & development (R&D) process
and the legal support at the global platform. Additionally, the joint venture will allow increased
investments by Pfizer in generic manufacturing. This was thought as a better opportunity to produce
an advanced in technology and cheaper generic medicines to both the Chinese and the global
customers. Such facts had probably attracted the Chinese government to support the joint venture
between Pfizer and Hisun (Barber et al., 2013).
External circumstances in the United States were not so favorable at the time when the joint
venture between Pfizer and Hisun had happened. Customers were found eager for such medicines as
they had found supports on chronic diseases like cardiovascular system at a much cheaper rate.
However, the manufacturing of generic medicines was not supported full heartedly. This is because
the manufacturers in the US were asked to prove their stand as much profitable as the expensive
branded patent medicines (Comanor & Scherer, 2013). This has probably prepared a platform to look