Opportunities and Risks in China and South Africa for AUSMED

Running Head: MANAGEMENT 0
GLOBAL BUSINESS

MANAGEMMENT 1
Executive Summary
This report outlines analysis of opportunities and risks in China and South Africa as
prospective international expansion marketplace for an Australian pharmaceutical
organisation, AUSMED. The study includes an exploration of key risk and prospects
connected with the two nations and choosing the best destination to increase enterprise
actions and processes. The report particularises on the Chinese marketplace with the reason
why it is preferable global market for the organisation pharmaceutical products. The report
also discusses various opportunities as an example comprising economic growth, market size,
and trade agreements. Various risks connected to the global trade comprises of legal
regulations, deprived technology and innovation, currency and financial cost. With regards to
this, the report also discourses exporting as a right entry mode to the global marketplace.
Table of Contents

MANAGEMMENT 2
Introduction................................................................................................................................3
Exploration of Opportunities and Risk......................................................................................3
South Africa...........................................................................................................................3
Cross cultural risk..............................................................................................................4
Commercial risk.................................................................................................................5
Political risk.......................................................................................................................5
China......................................................................................................................................5
Political risk.......................................................................................................................6
Commercial risk.................................................................................................................6
Cross Cultural risk..............................................................................................................6
Destination Country...................................................................................................................7
Entry strategy.............................................................................................................................7
Conclusion..................................................................................................................................9
References................................................................................................................................10
Appendices...............................................................................................................................12

MANAGEMMENT 3
Introduction
AUSMED Pharmacy Company has positioned itself in the drugs production and is planning
to increase its footprints in international markets as growth and sale of company have
recently impeded. AUSMED is planning to increase its footprints in either China or South
Africa based on the study of opportunities and risks in the two countries. The company was
found to be generating a yearly turnover of closely AUD 30 million with being operational in
last ten years and hiring more than 60 employees in the organisation. To increase the growth
and sales of the enterprise, the organisation management focused on considering internal
market for the first time and this report gives in-depth exploration of opportunities and risks
in both respective country, i.e. China and South Africa so as to assist the organisation to
select the correct country to expands its footprints and trade while suggesting the right entry
strategy for the particular target nation. In this paper, the key risks associated with both the
nations in relation with pharmaceutical business like financial, legitimate aspects and
currency threats and others are being covered. Various significant opportunities elaborated in
the study comprises of financial growth, greater marketplace scope and encouraging business
contracts with the native country.
Exploration of Opportunities and Risk
South Africa
Opportunities
One of the prime issues faced by the company includes improper technology and disease and
slow innovation to production of drugs for a rising diseased populace. AUSMED can tap this
opportunity to increase its footprints in South Africa with developing potential solutions with
the help of innovation and manufacturing of drugs that help in combat with various health
diseases including diabetes. The company also has a multi-billion opportunity due to the
market gap as there is found to be a significant increase in the ageing population of South