International Business Strategy for Ausmed Pharma: Analysis of Risks and Opportunities in China and South Africa

Running head: INTERNATIONAL BUSINESS STRATEGY
INTERNATIONAL BUSINESS STRATEGY
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Author Note

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INTERNATIONAL BUSINESS STRATEGY
Executive Summary
The analysis in the report is based on the ways by which an organization can aim to expand
its operations in another country. The organization which has been taken into consideration in
this case is Ausmed Pharma which is an Australian company. The countries which have been
considered for expansion are South Africa and China. The analysis has further been made
based on the external factors that prevail in the environment. The external analysis has
thereby depicted that Ausmed will be able to operate in a profitable manner in China due to
the huge number of opportunities which are provided to the company by its external
environment on a social and economic basis.

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INTERNATIONAL BUSINESS STRATEGY
Table of Contents
Introduction....................................................................................................................3
Analysis of risks and opportunities in each country (South Africa and China).............3
The selected destination country....................................................................................7
Discuss and justify the proposed entry for the chosen country......................................7
Conclusion......................................................................................................................9
References....................................................................................................................10

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INTERNATIONAL BUSINESS STRATEGY
Introduction
The international expansion based plans of Ausmed, which is an Australian
pharmaceutical company is the main part of the analysis which will be made in the report.
The company has shown huge amounts of growth in the past few years which has led to plans
made for its expansion. The analysis will thereby be based on the proper study of the two
countries which are being considered as the destination for Ausmed. The countries which
have been selected for this analysis are South Africa and China (Tsang and Yamanoi 2016).
The different external factors that are able to affect the operations of Ausmed in any
of the two countries will be analysed in the report. The analysis will help in deciding the most
appropriate country for the expansion based plans which have been made by Ausmed. The
opportunities and risks which can be faced by the company after its expansion in any of the
countries is an important part of the analysis. The entry mode which can be used by the
company to operate in the new area is an important part of the analysis (Iyer et al. 2015).
Analysis of risks and opportunities in each country (South Africa and China).
External analysis of South Africa –
Political risks need to be analysed in an effective manner in order to decide the
effectiveness of the market in South Africa. The corrupt nature of the politicians has caused
major issues for the new organizations which decide to operate in the country. The
questionable political conditions have thereby been able to hamper the entry of an
organization like Ausmed (Monaghan, Tippmann and Reuber 2017).
Economic risks which can be faced by Ausmed in South Africa are high as the
currency of the country is quite low. The major problem is thereby based on the ways by
which the company is able to operate in the country based on fall of the currency. The