Expanding Business in South Africa and China

Running head: GLOBAL BUSINESS
GLOBAL BUSINESS
Student’s Name
University Name
Author note

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GLOBAL BUSINESS
Executive summary
The purpose of this report was to access the potential of the countries South Africa and China for
expanding its business and enter the global market for the first time. The report has analyzed the
risks and opportunities involved in expanding the business organization in various aspects such
as the legal, regulations of the government and the financial risks and the opportunities such as
trade agreements, growth of the economy and market size. Further, it has identified the market
entry strategy that is suitable for the company. The report has selected the country which is
suitable for expansion based on the analysis and research. It has justified the proposed market
entry for the chosen country. Lastly, the report concludes by stating the reasons for chosen
market entry and summarizes the report.

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GLOBAL BUSINESS
Table of Contents
1. Introduction..................................................................................................................................3
2. Discussion....................................................................................................................................3
Analysis of risks and opportunities..............................................................................................3
South Africa.................................................................................................................................3
Risks and challenges................................................................................................................4
Opportunities...........................................................................................................................5
China............................................................................................................................................5
Risks and challenges................................................................................................................6
Opportunities...........................................................................................................................7
3. Selected destination country........................................................................................................9
4. Market entry strategy.................................................................................................................10
5. Conclusion.................................................................................................................................11
References......................................................................................................................................13

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GLOBAL BUSINESS
1. Introduction
AUSMED is an Australian pharmacy company which manufactures drugs. The company
has grown in the last 10 years. The company has been planning to expand its business and enter
into the global market; it has considered South Africa and China to expand its business
operations. In the global context business organizations considers operating in the foreign market
as it provides the business with several opportunities for diversification and market growth.
Expansion helps the business organization to diversify their assets and protect them against any
uncertain events (Banalieva and Dhanaraj 2013). On expanding the business organization
globally, it gets access to the new talent and access to unique advantages such as increased
productivity, diverse level of education and advanced language skills. It can also improve the
innovation output within the company. However, there are challenges that can be faced such as
local competition, cultural and language barriers and acceptability by the local people. The
purpose of this report is to analyze the risks and opportunities that can be faced by the company
for expanding the business operations in the countries South Africa and China. It identifies the
market strategy that is best suited for the business organization. It selects the destination country
and discusses on the proposed entry for the chosen country.
2. Discussion
Analysis of risks and opportunities
South Africa
The emergence of growth rate in South Africa is the reason for attracting business
organization from all across the globe. The pharmaceutical industry has a growth scenario in the
African market. The growth rate has been depicted to be at the rate of 26% (Butler 2017).