International Business: External Environment Analysis, Competitive Environment, Value Chain Analysis, and International Business Strategy

Running Head: INTERNATIONAL BUSINESS
INTERNATIONAL BUSINESS
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Table of Contents
Introduction......................................................................................................................................2
Discussion........................................................................................................................................2
External environment analysis.....................................................................................................2
Competitive environment............................................................................................................4
Value chain analysis....................................................................................................................6
International business strategy of the organisation......................................................................8
Recommendation.............................................................................................................................8
Implementation framework.........................................................................................................9
Conclusion.....................................................................................................................................10
Reference.......................................................................................................................................11
Appendices....................................................................................................................................13
Appendix 1.................................................................................................................................13
Appendix 2.................................................................................................................................14
Appendix 3.................................................................................................................................14
Appendix 4.................................................................................................................................15
Appendix 5.................................................................................................................................16
Appendix 6.................................................................................................................................17
Appendix 7.................................................................................................................................18
Appendix 8.................................................................................................................................19

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Introduction
Eu Yan Sang is a traditional Chinese product manufacturing company originated from
China in 1879. The company is fully focused on providing medicinal facilities to mankind and
during the Opium War in China served a great for eradicating the addiction (Weeks 2015). This
Chinese clinical service organisation is presently operated its business from Singapore and has
more than 230 retail outlets in most of the South-East Asian market along with China and
Australia (Yew and Gomez 2014). Based on this background, this report aims to explain the
external and competitive environment that influence Eu Yan Sang to run its business in
Singapore and also emphasising on the international business strategy of the organisation and
suggests recommendations.
Discussion
External environment analysis
Elements Analysis
Political  Singapore witnesses high stability in politics with an
average point of 1.22. It confirms the country is suitable
to do business effectively (Appendix 1).
 As per the government effectiveness, it can be seen that
in Singapore there is a gradual change in the power of the
government and the recent report shows that the average
value hits 2.15 points that points out strong government

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effectiveness within the country (Appendix 2).
Economic  Economic growth of the country is highly dependent on
its business and industries. Since 2010 a sharp and
continuous growth is existed within the country with an
average value of 6.6% that identifies the positive
situation for business (Appendix 3).
 Sky rising growth in the GDP refers to the better business
environment and opportunities in Singapore. The average
GDP growth value is 41.96 billion Singapore dollars
(Appendix 4).
 Control on the rate of inflation also helps the country to
set up a business friendly atmosphere in Singapore where
the average value of inflation rate is 2.58% (Appendix 5).
Social  Putting emphasis on the employment, medical facilities
and education create better social structure in Singapore
focusing on best human resource development program.
 Low unemployment rate with an average of 2.34%
proves the possible skilled workforce in Singapore that
can be beneficial for the business (Appendix 6).
 Moreover, the life expectancy ration also proves the
development in social life that is another major factor for
good human work force.
 Growth in the percentage of literacy rate is also a

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contributing factor for making healthy business
environment in Singapore (Appendix 7).
Technology  One of the main reasons for development in the socio-
economic aspect in Singapore is the incorporation of
advanced technology.
 Smooth communication and connectivity help to ease the
situation that is further boosted by the social networking.
 Household broadband user penetration rate is over 70%
which is also beneficial for e-commerce and B2B
business facilities (Yang et al. 2015).
Legal  The government interference in business is less and a
flexible business environment has been prevailed for the
corporate organisations.
 Due to the advent of technological advancement, the
government also implements some e-commerce
regulations besides the regular business acts.
 Electronic Transaction Act, Intellectual Property Rights
and Content Regulation are the primary e-commerce
regulations (Bali et al. 2016).
Environmental  Immense concern for preserving and safeguarding the
environment is considered to be one of the major aspects
for doing business in Singapore.
 Besides this, the Ministry of the Environment and Anti-