Analysis of Risks and Opportunities for AUSMED in South Africa and China

Running head: GLOBAL BUSINESS MANAGEMENT
Global Business Management
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GLOBAL BUSINESS MANAGEMENT1
Executive Summary
The report has helped in analyzing the different risks and opportunities which can be faced by
the business in expanding their business in the other overseas market. It can be seen that there
are different kinds of issues such as political instability which can affect the growth prospects
of the company negatively and it can impact the profitability of the firm in a negative
manner. On the other hand, there are different opportunities such as high rate of literacy that
can be playing a vital role in improving the growth prospects of the company in the market.
Lastly, the most suitable entry mode is Foreign Direct Investment which will be suitable for
the improvement and growth of the firm in a more operative manner.

GLOBAL BUSINESS MANAGEMENT2
Table of Contents
Introduction................................................................................................................................3
Analysis of risks and opportunities that can be Faced by AUSMED in South Africa and
China..........................................................................................................................................3
PESTEL Analysis of South Africa.........................................................................................4
PESTEL Analysis of China....................................................................................................8
Selected destination country....................................................................................................13
Discuss and Justify the Proposed Entry for The Chosen Country...........................................14
Conclusion................................................................................................................................15
References................................................................................................................................17

GLOBAL BUSINESS MANAGEMENT3
Introduction
In the current scenario of complex business environment, the expansion of business is
the potential for exposing products and services to the broader range of audiences in different
countries which will increase their sales and it will be important for the success of business.
The report throws light on analyzing the various kind of opportunities as well as threats
which can be faced by AUSMED pharma company based in Australia while their expansion
in South Africa and China. AUSMED is one of the Australian pharmaceutical organizations
which has been growing in a fast manner from the last ten years and it has been suitable for
them in competing with the other competitors.
In the current scenario, the company has been employing more than 60 staffs with the
annual turnover of more than AUD 30 million. On the contrary, in the present scenario, the
growth of the company has been stalled and, in such scenario, to improve their growth
prospects, the company is trying to expand their business operations in China and South
Africa. The selected destination country needs to be analyzed with proper reasoning along
with analysis of the respective mode of entry which will be suitable for the successful growth
prospects of the company.
Analysis of risks and opportunities that can be Faced by AUSMED in South Africa and
China
While increasing the business operations in the different countries by a company,
there can be inclusion of different opportunities as well as risks that can be creating huge
influence on the company as it can affect the entire profitability in competitive environment
of business. While expanding their operations, there are major international risks for business
include the different political instability as well as foreign exchange which includes the