Power Health Company Assignment PDF

Power Health Company
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Table of Contents
Executive Summary...................................................................................................................3
Introduction................................................................................................................................3
About the Company...................................................................................................................3
The business opportunity...........................................................................................................4
South Korea................................................................................................................................5
Singapore....................................................................................................................................7
Recommendations......................................................................................................................8
Bibliography.............................................................................................................................10
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Executive Summary
The following report will be presented to the Board of Directors about the business expansion
opportunity offered by the two countries South Korea and Singapore. The following report
consists of introduction of the report which is followed by the introduction of the company
Power Health Solutions which is a leader in the field of medical sciences. As the business
development manager I have suggested the appropriate business opportunity that should be
undertaken by the company in order to capture the international market. Two countries has
been analyzed namely South Korea and Singapore and a detailed analysis has been included
about the laws and policies of the country that govern the business in the country. In the end
recommendation has been included in order to suggest the Board of Directors to select one
country among the two that offers the desired business opportunity to the company.
Introduction
In order to grab the external business opportunities it is very important for the organization to
know about the law as well as other details of the external market. Different laws and policies
are adopted by different countries and hence, in order to enter an international market it is
important to know about the business law of that country that whether that country offers
opportunities to the business or not. Many different laws govern the expansion of a business
and in order to successfully establish the business it is necessary to go through these laws.
Like the Contract Law, Intellectual Property Rights, Employment Laws, as well as the legal
structure etc. A detailed analysis of these factors will help to know the company about the
possible opportunities in front of them.
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About the Company
Power Health company was established in the year 1995, and hence, has an experience of
more than 20years in the field of healthcare sector. The organization has undertaken many
innovations in business management, as well as has helped the hospitals as well as other
healthcare institutions by helping them in the decision making process as well as by
providing desired healthcare solutions. The main aim of the company is to help their
healthcare clients by providing help and assistance in order to deliver high quality services
and that too at minimal operational costs. The organization specializes in costing and revenue
as well as in enterprise billing. The organization also provides safe and quality software to the
hospitals and healthcare institutions. Also the products offered by the company has the ability
to deliver a positive return on investment despite of the fact related to organization size. The
organization also aims to bring global healthcare knowledge to the local healthcare in order to
improve the quality of the services of the local healthcare institutions. The local client base of
the company is spread in Australia, Hong Kong, and New Zealand. The global client of the
company is Canada, Ireland, United States, Middle East as well as England. Power Health is
one of the global leaders in medical finance as well as patient safety whereas the organization
is also on the forefront of the medical software technology (Power Health, 2018). There are
many other countries in which the organization can undertake its expansion. Hence
organization should look for opportunities in international market of different countries that
provides best opportunity to the company. The following is the opportunity that can be
gained by the company in two different countries namely South Korea and Singapore.
The business opportunity
There are many different types of business opportunities that can be adopted by organizations
in order to expand in international market. The common and most used business opportunity
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includes licensing, export, franchise, distributor and dealership, etc. Under franchise the
organization needs to pay a certain franchise fee in order to use the brand name of an already
established brand. Distributor is the person who agrees to sell the products and services of the
company in the open market. Licensing is also one of the most commonly used business
opportunity through which the organization can develop a product or service and then license
that product and retain it as brand name or trademark. After that any sale of that particular
product or service will earn a certain percentage to the company. Niche market is also one of
the business opportunities that are used by the organizations at the time of expansion
(Business Opportunities, 2015). In my viewpoint, I believe that the organization should adopt
the niche marketing strategy as the company is already a well reputed brand and hence does
not need the help of franchise. The organization specifically deals in healthcare sector and
hence it will be easy for the company to capture the market with the help of niche marketing
strategy.
South Korea
The contract law of South Korea outlines one major condition and that is that the contract
should be undertaken in good faith and the contract involves mutual assent. 14 codes are
there in the Civil Code of the country some applicable to specific contracts whereas some
applicable to all the general contracts (Chen-Wishart, Loke, & Ong, 2016). According to the
Tort laws of the country if the organization cause any damage or injury to the person by
unlawful means whether on purpose or unintentionally the organization has to compensate for
the damages. The Intellectual Property Rights of the country is very strong and gives the
opportunity to adopt registered or unregistered IP rights in the country. South Korea is a part
of World Trade Organization since 1995 and has its own laws in order to protect the
Intellectual Property Rights. Different acts sustain in the country to protect the rights of the
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organization as well as different Ministries play their strategic role in this to ensure that the
organizations are not at loss or are not cheated whole undertaking their business activities in
South Korea (Carroll, 2015). The Constitution of the country guides the Employment Laws
of the country mentioned under the Article 32. It has covered all the major points including
the minimum wages to be provided, providing adequate working conditions, practicing no
gender discrimination in employment, etc. (Lee, 2015). Many acts govern the employment
laws of the company like the Minimum Wages Act, Industrial Safety and Health Act,
Protection of Employees Act, etc. (Kang, et al., 2017).
From the above understanding related to the laws and acts governing the business of South
Korea it can be said that it would be easy for Power Health to undertake the business
activities in this country. South Korea is also planning to encourage medical tourism as a
niche market segment. Healthcare sector is treated as a niche market in South Korea. Hence,
the business opportunity recommend to Power Health that is of niche marketing will be best
suitable in order to capture the market of South Korea as the country is already making
efforts to boost the medical sector of the country (Conception, 2013). Power Health
specializes in medical finance as well as for providing assistance to healthcare institutions by
providing them global knowledge related to medical field. Also the company comes up with
many new software technologies that act as a boon to the healthcare sector. So, South Korea
is one of the best options for business expansion for Power Health.
A great opportunity is offered by Korea for business as it is the 12th largest economy at global
level as well as 4th largest economy at Asia level. The population of Korea only demands
quality products and services and are ready to buy the best. Because of these factors many
foreign business are attracted towards Korea. The expenditure of South Korea towards
healthcare industry is seen increasing year after year. South Korea is the 8th strongest country
in the whole world in case of biotechnology. A great opportunity is offered by the company
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as the demands for drugs related to lifestyle related diseases. Also the demand is increasing
for medical devices in the country (Doing Business Guide, 2015). Another major reason that
acts as an opportunity to the company is that there is a very low birth rate in the country and
the population of the country is aging very rapidly. And hence, there is boom in the demand
for the medical services by the population of the country (Mundy, 2014).
Singapore
Singapore offers a great opportunities to the business and it is also ranked 1st in list of
countries that are least risky in order to undertake business activities by the Political and
Economic Risk Consultancy (PERC) (CPIB, 2018). Singapore also has the lowest crime rate
and hence, is considered to be one of the safest places to live as well as to undertake business
activities (Besley, 2015). The legal structure of the country is influenced by the English
common law whose four basic pillars are constitution, legislation, subsidiary legislation as
well as the judiciary (Alves & A.Ferreira, 2011). The contract laws of the company helps to
resolve any kind of business conflict and helps to validate the rights of each party involved
(McKendrick, 2012). And special feature of the contract law of Singapore is that it allows the
party to follow other laws apart from Singaporean laws but in case of disputes such
individual or organization cannot file litigation (Poole, 2016). The employment laws of the
country are very friendly as well as in- discriminated and the country holds 3rd position for
having good labour and employer relationship according to the Global Competitiveness Index
2015-16 (Schwab & Sala-i-Martín, 2015). The employment laws of the country also govern
the working hours as well as the retiring age is also fixed by the law that is 63 years
(Twomey, 2012). In protecting the Intellectual Property Rights Singapore is ranked 4th in the
whole world by the Global Competitiveness Index Report. The rules of the IP rights of the
country are considered to be one of the best across the globe (Schwab & Sala-i-Martín,
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2015). The country has come up with a ten year roadmap in the year 2013, which majorly
revolves around the IP rights of the local people. The IP rights in Singapore are on eth basis
of territory and hence it is clear that the country will defend only those IP rights that have
been registered in Singapore (Antons, 2009).
The judicial system of the country deals with the law of torts which is managed by two levels
namely, the State Courts and the second level the Supreme Court (Besley, 2015). The main
aim of these laws is to protect the rights of the people and people can any time file litigation
against the individual or the company for violating the rights of any people or for undertaking
any unlawful activity. So, on the basis of the above analysis it can be clearly understood that
Singapore is one of the most favourite destination for international businesses as it offers very
attractive opportunities to the businesses. The main highlights of Singapore are that it offers
very friendly policies as well as laws; the taxation rate in the country is low; transparency is
great and has a lot of other opportunities (Paul Hype Page, 2018). Singapore is considered to
have one of the best healthcare infrastructures globally. The government of the country has
formulated the best policies in order to give a boost to the healthcare sector (Alliance Experts,
2018). Singapore is also facing the issue of increasing elderly population and hence the
demand for healthcare services is increasing tremendously as well as the healthcare costs are
on rise. Hence, the country is ready to invite international business that can help the country
to fight with the issues being faced by the country in their healthcare sector (Business
Sweden, 2016).
Recommendations
As the business development manager of the company I believe that the organization should
select Singapore over South Korea. This is so because the conditions of both the countries are
same when it comes to healthcare sector, but South Korea offers more flexibility as well as
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opportunities related to niche marketing in the country. As Power Health is opting for niche
marketing as their market strategy this would be the best option for the company to expand in
the international market of South Korea. Though Singapore has been ranked far well on few
indexes but eth conditions as well as laws and policies of South Korea are not stringent.
Hence, the company can undertake its expansion in the market of South Korea. Also South
Korea is treating the healthcare sector is niche market and is putting all the possible efforts to
boost the condition of healthcare sector, Power Health can work wonders in that country by
its products and services.
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References
Alliance Experts. (2018). Singapore healthcare industry and medical sector trends. Retrieved
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https://www.allianceexperts.com/en/knowledge/countries/asia/healthcare-industry-
singapore/
Alves, P. F., & A.Ferreira, M. (2011). Capital structure and law around the world . Journal of
Multinational Financial Management, 21(3), 119-150.
Antons, C. (2009). Traditional knowledge, traditional cultural expressions and intellectual
property rights: Approaches in the Asia Pacific region. Research Gate.
Besley, T. (2015). Law, regulation, and the business climate: the nature and influence of the
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120.
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business-opportunities/
Business Sweden. (2016). Opportunities within the healthcare sector in Singapore. Retrieved
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https://www.business-sweden.se/contentassets/4e16e1cdc4d242c49d3ae90abe4c5ec3/
business-sweden-singapore_report-on-opportunites-within-healthcare.pdf
Carroll, M. W. (2015). Sharing Research Data and Intellectual Property Law: A Primer.
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Chen-Wishart, M., Loke, A., & Ong, a. B. (2016). Studies in the Contract Laws of Asia I:
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http://www.oxfordscholarship.com/view/10.1093/acprof:oso/9780198757221.001.000
1/acprof-9780198757221
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Conception, R. (2013). Thailand and South Korea on medical tourism as a niche market
segment. California State University Fullerton
CPIB. (2018). Political & Economic Risk Consultancy Limited. Retrieved from cpib.gov.sg:
https://www.cpib.gov.sg/research-room/political-economic-risk-consultancy
Doing Business Guide. (2015). Doing Business in South Korea. Retrieved from
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http://www.southkorea.doingbusinessguide.co.uk/the-guide/business-opportunities/#
Kang, Y. J., Myong, J.-P., Eom, H., Choi, B., Park, J. H., & Kim, a. E.-A. (2017). The current
condition of the workers’ general health examination in South Korea: a retrospective
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Lee, M. (2015). Legislative Initiative for Work-Family Reconciliation in South Korea: A
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McKendrick, E. (2012). Contract Law: Text, Cases, and Materials. OUP Oxford.
Mundy, S. (2014). South Korea’s ambitions in medical tourism . Retrieved from ft.com:
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singapore/
Poole, J. (2016). Textbook on Contract Law. Oxford University Press.
Power Health. (2018). About PowerHealth. Retrieved from Powerhealthsolutions.com:
https://www.powerhealthsolutions.com/about-us
Schwab, K., & Sala-i-Martín, X. (2015). The Global Competitiveness Report 2015–2016.
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http://www3.weforum.org/docs/gcr/2015-2016/Global_Competitiveness_Report_201
5-2016.pdf
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