International Business Assignment(IB)

Added on - 28 May 2020

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Running Head: International Business1Managing International Business Risk
International Business2ContentsIntroduction......................................................................................................................................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
International Business3IntroductionThis report focuses on the challenges and risks faced by multinational companies in theinternational market. For the discussion, a pharmaceutical company is selected in the report. Thepharmaceutical 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 marketingstrategy of a company in more than one country. While entering in a global market, it isimportant for a company to understand different environment, culture, attitude and behavior ofthe customers (Cateora, 2008). Pharmaceutical companies are involved in discovering, creatingand supplying the products, vaccines and other pharmaceutical products. Pharmaceuticalcompanies generally operate under generic medicine sector, medical biotechnology sector andoriginator 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. itis crucial to understand by the pharmaceutical companies that in each country, every customerhas different perception towards products and services. In this report, a famous Australianpharmaceutical companyPfizer Australiais selected. The company is operating in theAustralian market and now has expanded the business expansion in the China market and SouthAfrica.Company BackgroundPfizer Australia is the supplementary of Pfizer Inc. which is a foremost drugmanufacturing company. The company provides broad variety of medicines and vaccines for thecustomers. Pfizer started its operation in Australia since 1956 and now, it is a popular companyin pharmaceutical company in the country. The business objective of the company is to enhancethe life of patients by providing quality services. For this manner, company is focused onidentifying 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 providesits products and services in an effective and proper way. With the continuous research anddevelopment process, company is able to provide quality products to the customers. With the
International Business4collaborations 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 thepharmaceutical industry. The aim of the company is to use global and scientific resources inorder to enhance the health of people at every stage of the life. Along with this, the objective ofthe company is to be a leading company in the industry in terms of enhancing the lives ofpatients. There are wide ranges of products including vaccines, biologic and small moleculemedicines, and nutritional products along with well-known customer products. In order to staycompetitive in the operating market, Pfizer has implemented open improvement approach bywhich 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. Whileexpanding in the international market, Pfizer has to deal with various risks due to differentculture and attitudes of the customers (Benson, 2105).Analysis of international business riskIt is well known that a company has to deal with various international business risks andchallenges while expanding the business in the international market. So, Pfizer has to deal withnumerous risks and issues in the international market. There are basically four types of businessrisks 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 riskLack 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 marketotherwise company will face issues in the business operations. There are some reasons of failureof a company and those are poor procedures, poor business strategy including operationalproblem, timing of entry, poor competitive strength, and weak execution of strategy etc. Everycountry has different ecosystem i.e. mixed economy, market economy, and command economyetc. 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 isimportant for the companies those policies and regulations in order to get success in the global
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