Opportunities and Risks for Expansion in South Africa and China

Running head: MANAGEMENT
Management
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1MANAGEMENT
Executive Summary
In the current business environment, there are different opportunities as well as risks which
has been faced by the company AUSMED while intensifying their commercial operations in
one of the two countries namely South Africa and China. From the same, while analyzing the
risks and opportunities, China is the most apposite option as the Chinese economy will be
beneficial for the company in growing their business-related operations and it will be
beneficial for their growth prospects. The Foreign Direct Investment is the most apposite
option which can be incorporated by the company for growing in an additional positive
manner.

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Table of Contents
Introduction 3
Analysis of risks and opportunities for Expansion in South Africa and China (1400 words) 3
The selected destination country (Select one country and justify your decision 13
Discussion as well as Justification of Proposed Entry Mode 14
Conclusion 16
References 17

3MANAGEMENT
Introduction
In the current scenario of the business environment which is complex in nature, the
expansion of the business is one of the most appropriate aspects which needs to be
maintained by the companies as it will be providing the companies with appropriate
opportunity to offer the diverse range of the different products as well as services. In
performing the same, proper diversification of the revenue stream that is the most effective
aspects that will be enhancing their development features in the competitive environment.
As per the respective case study, it can be seen that AUSMED is one of the famous
pharmaceutical companies which has been running in the Australian economy from last few
years and they have employed 60 employees. on the other hand, in the current situation, the
corporation has incurred loss and their growth has become stagnant and, in such scenario,
they want to expand their business in other countries for better growth opportunities. The
main purpose of the report is to identify the different opportunities along with risks that will
be faced by AUSMED in South African and China Market. Moreover, the mode of entry
desires to be addressed along with advantages that will help the business to cultivate in a
well-organized manner.
Analysis of risks and opportunities for Expansion in South Africa and China
When the businesses try to expand their presence in more than one country, there can
be enclosure of the various opportunities and threats which can be influencing the company’s
growth negatively or positively. Through the business expansion, it will increase potentiality
of business to increase the audience base which will be effective in improving the sales of the
company (Tulung 2017, p.168). On the contrary, there are different disadvantages of the
business expansion such as shortage of cash and meeting the costs of expansion that can be