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International Business Assignment(IB)

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Added on  2020-05-28

International Business Assignment(IB)

   Added on 2020-05-28

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Running Head: International Business 1Managing International Business Risk
International Business Assignment(IB)_1
International Business 2ContentsIntroduction......................................................................................................................................3Background of the company............................................................................................................3Analysis of international business risk............................................................................................4Commercial risk...........................................................................................................................4Financial (currency) risk..............................................................................................................5Country risk..................................................................................................................................6Cross-cultural risk........................................................................................................................6Pfizer in China.................................................................................................................................7Aspect of global operations..........................................................................................................7Political and legal aspect..........................................................................................................8Conclusion.....................................................................................................................................10References......................................................................................................................................11
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International Business 3Introduction This report focuses on the challenges and risks faced by multinational companies in the international market. For the discussion, a pharmaceutical company is selected in the report. The pharmaceutical companies have to face various risks while operating in the international market. It is important for every company to expand the business in the international market. Generally, global marketing is basic function of the marketing by the company across the national borders. In other words, global or international marketing is the concept of expanding the marketing strategy of a company in more than one country. While entering in a global market, it is important for a company to understand different environment, culture, attitude and behavior of the customers (Cateora, 2008). Pharmaceutical companies are involved in discovering, creating and supplying the products, vaccines and other pharmaceutical products. Pharmaceutical companies generally operate under generic medicine sector, medical biotechnology sector and originator medicine sector. It is understood that a company has to deal with various risks in termsof marketing, culture of the country and behavior of the consumers in the international market. it is crucial to understand by the pharmaceutical companies that in each country, every customer has different perception towards products and services. In this report, a famous Australian pharmaceutical company Pfizer Australia is selected. The company is operating in the Australian market and now has expanded the business expansion in the China market and South Africa. Company BackgroundPfizer Australia is the supplementary of Pfizer Inc. which is a foremost drug manufacturing company. The company provides broad variety of medicines and vaccines for the customers. Pfizer started its operation in Australia since 1956 and now, it is a popular company in pharmaceutical company in the country. The business objective of the company is to enhance the life of patients by providing quality services. For this manner, company is focused on identifying the needs of the customers and put the efforts to satisfy them. Company always seeksfor the maintaining long term relationships with the customers in the market. Company provides its products and services in an effective and proper way. With the continuous research and development process, company is able to provide quality products to the customers. With the
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International Business 4collaborations with other companies, company tries to identify the needs of the customers. Pfizeris now focusing on the core business of medicine (Pfizer, 2015). On the business point of view, Pfizer is the largest research-based company in the pharmaceutical industry. The aim of the company is to use global and scientific resources in order to enhance the health of people at every stage of the life. Along with this, the objective of the company is to be a leading company in the industry in terms of enhancing the lives of patients. There are wide ranges of products including vaccines, biologic and small molecule medicines, and nutritional products along with well-known customer products. In order to stay competitive in the operating market, Pfizer has implemented open improvement approach by which the thought of new medicine can be created from various scientific sources. Further, company is creating values for the customer by doing partnership with other industries. While expanding in the international market, Pfizer has to deal with various risks due to different culture and attitudes of the customers (Benson, 2105). Analysis of international business risk It is well known that a company has to deal with various international business risks and challenges while expanding the business in the international market. So, Pfizer has to deal with numerous risks and issues in the international market. There are basically four types of business risks to which a company has to deal i.e. currency risk, commercial risk, country risk and countryrisk and cross-cultural risk. The analysis of various risks in the international market is as follows.Commercial risk Lack of proper knowledge in the international market can be the cause of commercial riskin the business. There should be significant and proper knowledge about the global market otherwise company will face issues in the business operations. There are some reasons of failure of a company and those are poor procedures, poor business strategy including operational problem, timing of entry, poor competitive strength, and weak execution of strategy etc. Every country has different ecosystem i.e. mixed economy, market economy, and command economy etc. These are some real challenges while companies are entering in the global market. Governments of foreign countries have diverse philosophies, policies, priorities and rules. It is important for the companies those policies and regulations in order to get success in the global
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