Pharmaceutical Marketing Strategy

This assignment focuses on creating a comprehensive pharmaceutical marketing plan tailored to the Australian market. It requires students to analyze cultural and political landscapes, including Hofstede's dimensions and Australia's political risk index. The plan should also consider different sales structures, competitive analysis, and utilize relevant theories like Kotler's Marketing Mix. The assignment emphasizes strategic thinking and practical application of marketing principles in a specific international context.

Surname International Marketing Management: Case of AstraZeneca in Australia
International Marketing Management: Case of AstraZeneca in Australia
Student’s name
Course
University
Date
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Surname International Marketing Management: Case of AstraZeneca in Australia
Table of Contents
Abstract.....................................................................................................................................iii
Introduction................................................................................................................................1
Question 1:.................................................................................................................................1
Market evaluation...................................................................................................................1
Political Risks.........................................................................................................................2
Managing the political risks...................................................................................................4
Identification......................................................................................................................4
Measurement......................................................................................................................4
Mitigation...........................................................................................................................4
Monitoring..........................................................................................................................5
Question 2..................................................................................................................................5
Natural resources....................................................................................................................6
Climate change.......................................................................................................................7
Reducing emissions................................................................................................................8
Respiratory therapies..............................................................................................................8
Recycling and reusing materials............................................................................................9
Question 3................................................................................................................................10
Sales force management.......................................................................................................10
The goal............................................................................................................................10
Question 4................................................................................................................................14
Hofstede’s concept: Australia and Malaysia............................................................................14
Power Distance.....................................................................................................................14
Individualism........................................................................................................................15
Masculinity...........................................................................................................................16
Uncertainty avoidance..........................................................................................................17
Long-term orientation..........................................................................................................17
Indulgence............................................................................................................................17
Conclusions..............................................................................................................................17
References................................................................................................................................19
Appendix..................................................................................................................................22
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Surname International Marketing Management: Case of AstraZeneca in Australia
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Surname International Marketing Management: Case of AstraZeneca in Australia
Abstract
Foreign investment is an important strategy that companies use to achieve their business
objective. Given the stiff competition experienced in Malaysia and the need to tap into the
global market, AstraZeneca stands a better chance to benefit investing in Australia. This
paper assesses this investment based on political risk assessment to determine mitigation. It is
divided into four questions addressing different aspects of the investment. In the first
question, the aspects of political risk have been assessed to determine the best strategies to
overcome them and make the firm succeed in the new market. The second question addresses
the aspects of sustainability goal of the company. AstraZeneca has made sustainability its
priority thus addresses the most pressing issue affecting business today. The third question
addresses the aspects of hiring and managing sales-force. In this section, the steps have been
highlighted. The last section focuses on the cultural diversity with respect to Hofstede
dimensions.
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Surname International Marketing Management: Case of AstraZeneca in Australia
Introduction
AstraZeneca Sdn. Bhd. is a leading company that engages in science-led
biopharmaceutical business. This organization intends to become a global player and an
innovative medicine provider to millions of patients across the world. The company operates
under distinct values and purposes. For instance, AstraZeneca values and purpose define the
reasons for its existence and the anticipated accomplishments. It also defines the valued
behaviors and the strategies the firm uses to achieve the goals. This demonstrates the brand’s
promise to the valued stakeholders (Political Monitor 2014). The company should continue
pushing its boundaries of science in delivering quality medicines. By the following science,
AstraZeneca puts patients first by doing the right thing. AstraZeneca uses science-led
innovation to bolster its growth. With the continued growth in competition in Malaysia, the
company is considering expanding into the new market. By venturing into Australia, it
anticipates improving its growth and income. However, the pursuing foreign market requires
an in-depth analysis of this market to avoid failures.
Question 1:
Market evaluation
Healthcare and medicine have proved to the core of the Australian operations. The
government spends over AUD140 billion in the health and medicine thus making one of the
highest spending countries in the region (GOV.UK 2017). The government predicts a four
percent growth in the per capita spending. Therefore, the opportunities for pharmaceutical
companies intending to enter the market are inevitable. The Malaysian pharm stands to
benefit from selling its quality medical products, devices, and services to the Australian
health sector. Similarly, with the aging population and increasing the national disability
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Surname International Marketing Management: Case of AstraZeneca in Australia
insurance scheme, providing assistive and enabling technologies are important. The country
is also a viable market for the biotechnology (GOV.UK 2017). The Malaysian company can
benefit from the market services opportunities in drug discovery, clinical trials, development,
and contract manufacturing. For this pharmaceutical company, collaborating with the leading
research institutions in Australia will be incredible.
Australia also spends about AUD14.5billion on pharmaceutical imports (GOV.UK
2017). Today, the pharmaceutical groups are dominating the local industry with the best
manufacturing facilities. The local generic industry is also thriving. The Australian
government has incessantly subsidized medicines through the Pharmaceutical Benefits
Scheme. The country offers opportunities in generics, niche products, and considerable
formulations because of the special access scheme (GOV.UK 2017).
Political Risks
Australia is an important market for AstraZeneca and other pharmaceuticals.
Recently, the political risks have increased despite the repealing of the carbon tax. The
uncertainty regarding the future direction is defining the market. For instance, by 2014, the
country’s political risk index is high following the Senate vote that made the market volatile.
The political risk index tracks the policy and political uncertainty based on the political and
market variables (Political Monitor 2014). The management should consider managing these
political risks to avoid affecting the organizational operations and success in the Australian
market. Without a doubt, the political risks will affect AstraZeneca’s bottom line. Studies
have demonstrated that many businesses rarely respond to the political risks and exposures
(Carter 2014). The most important political risks that the company must consider include
expropriation, foreign exchange restrictions, import/export restrictions, civil disturbance, and
changes in laws. The company also faces challenges regarding the Australian government
breach of contracts.
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The Malaysian company is seeking for new opportunities in Australia. The urgency to
address the risks would be critical to making AstraZeneca succeed. In fact, the management
of the risks would help to confront them to avoid affecting the bottom lines. Unlike other
companies, AstraZeneca is sensitive to the political risks in Australia. This will allow the firm
to understand the impact of political events on the investments (The Economist 2016). As
such, the company will seize opportunities to maximize profitability and reduce political
risks. The sovereign risks that the company should also consider include changes in
government regulations, confiscation of property, default on payments, and blockage of
exchange transfers. However, the management needs to consider different factors including
the existing trade embargos that Australia government is enforcing regarding drugs and
pharmaceutical products. With these embargoes, the delivery and flow of the products could
be affected beyond the repair. The Australia government also expects the foreign company to
comply with the trade sanctions, human rights, and personal property rights as stipulated in
the international laws. With the trade embargoes, Australia can restrict some export types.
The Australian Foreign Affairs and Trade Department has taken the responsibility of
monitoring the political changes and their effects on the country’s businesses (Australia CRT-
1 2017). Regarding the risks, the government has compelled the business to take cover in the
political risk insurance.
The Australian government has strived to accelerate innovation, competition, and
productivity. These accelerations have transformed the tech industry. Following the political
debate, the Australia government approved the legislation of corporate tax reform that
lowered the tax rates to 25 percent. The move increased the budget deficit thus attracting
foreign direct investment. However, the country could face political instability because of the
established Liberal-National coalition (Australia CRT-1 2017). The legal system is stable,
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strong, and transparent. It experiences minimal corruption. With the resilient economy and
attractive regulatory environment, the country is attractive to the Malaysian company.
Managing the political risks
Identification
Risk identification is an important step for the management of the company. The risk
manager should collect relevant information regarding the risks that AstraZeneca face in
Australia. Studies have demonstrated that political conditions in any country can disrupt the
firm’s goal (Australia CRT-1 2017). The political instability threatens the company because
the collation government can change the business condition. The least ranked hazard could be
seizure of assets whenever the company exports the medicines and other pharmaceutical
products. However, performing a contract on valuable assets and products could expose the
company to potentially serious hazards.
Measurement
The management of the company should consider measuring the exposure to the
political risks in Australia. This will involve ranking the risks and measure the exposure to
each. For instance, the political instability and upheavals can interfere with the operations of
the company. This makes it the highest ranked risk that requires mitigation. The financial
impact of political instability is imaginable because it can ruin the company. The government
has further considered an efficient regulatory system to protect the interests of investors. This
makes the risks tolerable thus entering the market is prudent.
Mitigation
AstraZeneca’s management must be prepared to mitigate the risk by taking measures
to reduce the degree of occurrence thus lower the effects of such risks. The nature of this firm
will determine the mitigation process (Carter 2014). AstraZeneca’s move to expand into the
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Australian healthcare and medicine industry will call for a collaboration or partnership with
the local firms who understand the market terrain. This will help the company to avoid these
problems. Purchasing the insurance to cover the risks will be beneficial to the Malaysian
pharmaceutical.
Monitoring
The management of the pharmaceutical company needs to establish the risk
management process that can work for the company. This will involve establishing routine
evaluation, review, and reporting mechanisms. The company needs a formal channel to report
political risk issues to the personnel and senior management involved in the ground
operations. The routine reporting systems should be critical and normal business activity. The
risk manager should avoid falling into disuse (Carter 2014). Reports indicate that setting a
risk management system is never a difficult task. The organization may have insufficient
resources to handle the situation in Australia. However, turning to Australia experts would
benefit the company. For instance, in Australia, different private companies have specialized
in offering detailed information and solutions on political risks. These private-sector agencies
can help the firm to establish relevant political risk management systems. Although
AstraZeneca may have an effective political management process, the Australian market can
expose them and make it uncomfortable. Therefore, seeking the political insurance cover
would be critical.
Question 2
AstraZeneca has invested in sustainable operations and activities. It intends to make
the healthy planet and society. Indeed, AstraZeneca wants its stakeholders to trust and value
it because it is a great medicine. AstraZeneca (2015) argues that sustainability implies that an
organization operates effectively by recognizing the interconnection between the limitation of
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resources, the societal needs, and business growth. AstraZeneca holds that its DNA is defined
by sustainability. It uses the “securing our future” as its sustainability strategy thus identifies
its ambitious targets and commitments. The company’s sustainability commitments are based
on its values and purpose and define the business model. The priorities of AstraZeneca
include environmental protection, access to healthcare, and ethics and transparency.
The approach of AstraZeneca is to minimize the impacts revolving the life cycle of
the product. In fact, the company is committed to reducing the carbon footprint and the
environmental impact of its production of business. It opts to ensure its products are
environmentally safe and use the resources efficiently. With the “safety, health and
environment (SHE) strategy,” AstraZeneca intends to drive its continuous improvement
(AstraZeneca 2015: 2).
Natural resources
The global population is increasing at an unprecedented rate leading to increasing per
capita consumption. This has triggered high resource demand. By 2013, the demand for the
resource will grow by a third. In fact, the climate change will continue to present the worst
challenges thus affecting the pharmaceutical industry and the societal health. To this effect, it
is necessary for businesses to utilize resources efficiently and reduce wastage and emissions.
AstraZeneca focuses on the circular economy, as it integrates circular thinking around its
waste management, supply chain planning, and product design (Ellen MacArthur Foundation
2013). In 2016 alone, AstraZeneca invested about $25 million to achieve efficient natural
resource efficiency thus minimize environmental impacts (AstraZeneca 2017). The projects
initiated by AstraZeneca will improve its resource efficiency performance. The solvent
recovery can help the company to reduce hazardous waste. In 2017, the company will further
invest $22 million to achieve resource efficiency.
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Climate change
The climate change is undermining the advances that have been made in global
health. The regarding adapting and mitigating the climate change has presented benefits like
reducing the emissions thus improve diet. Today, many stakeholders have made concerted
efforts to overcome the climate change. To this effect, the company has made it a priority to
join other stakeholders to resolve the impasse. For instance, reporting and measuring
emissions has defined AstraZeneca’s sustainability goal. The Malaysian pharmaceutical
anticipates achieving the science-based targets thus managing its contributions.
According to this company, climate change exposes the business to risks. Currently,
the consequences of the climate change are far-reaching, especially for the human health.
These consequences include the flood-stricken communities, the high prevalence of diseases,
poor air quality, and heat waves (AstraZeneca 2017). The problem of food security can never
be underestimated. This is because; climate change has affected the natural resources
including water thus compelling the society to consider using the available resources
efficiently. The businesses must revert to renewable energy to reduce the emissions.
AstraZeneca has initiated extensive plan to understand the financial, physical, and regulatory
risks and opportunities associated with climate change. In fact, it uses these risks to develop
the best strategy to overcome the challenges regarding climate (AstraZeneca 2015). The
pharmaceutical has identified the availability of water to an immediate risk. To this effect, it
intends to invest in water efficiency projects because of the exposure to this scarce resource.
The solutions to the changing climate have benefited the public health directly and
indirectly. For example, the introduction of fuel-efficient automobiles has reduced the GHG
emissions thus supporting the disease prevention (Ellen MacArthur Foundation 2013). The
move has lowered the regional and local pollution that have been accused of causing
respiratory syndromes like the obstructive pulmonary disease.
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Surname International Marketing Management: Case of AstraZeneca in Australia
Reducing emissions
AstraZeneca has made significant efforts to reduce the emissions, especially regarding
its fleets. Since 2010, AstraZeneca incorporated fuel-efficient systems into its selected fleets.
With the help of reducing and cap system, it intends to reduce the average emissions of the
fleets for every kilometer driven (AstraZeneca 2017). By 2016, the company had improved
its fleet efficiency by 3 percent leading to a 6 percent reduction in GHG emissions. The
procurement team has also upgraded the efforts to reduce emissions. For instance, the team
has involved the commercial markets by incorporating the costs into the decision of selecting
fleet. The company prefers more fuel-efficient fleets. In 2017, the company will continue to
improve its fuelled vehicles to make them efficient (AstraZeneca 2017). For instance, the
company is anticipating introducing the plug-in hybrids and electric vehicles to resolve the
emission problem. It also anticipates improving its vehicle-testing regime to help in reflecting
the modern driving conditions.
Respiratory therapies
AstraZeneca has used HFA propellant to treat various respiratory conditions including
asthma. The company has established its operational GHG footprint based on the released gas
(47%) (AstraZeneca n.d). These HFAs no longer have the ozone depletion. It introduced the
pMDI inhaler-therapy operations and products to mark its GHG footprint commitments. This
allowed the company to be accountable for the emissions and determine the innovative
strategies to correct the situation (AstraZeneca 2017). Currently, the organization explores
the practical opportunities that can be used to eliminate or reduce the impact of the changing
climate and fit the expectations of patients. For instance, AstraZeneca intends to replace the
propellant with alternatives. There are numerous studies assessing the significance of
introducing inhaler technologies to manage the inhaler therapies. As such, it will be possible
to put patients on better regulatory controls and positioning (AstraZeneca n.d). It has also
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remained committed to using renewable energy for its operations. It believes it can achieve
this commitment by adopting the RE100 initiative (AstraZeneca 2015). The on-site
renewables have become the alternatives for imported energy.
Recycling and reusing materials
The company remains committed to the safety of its products in the environment.
Through the pharmaceuticals in the environment (PIE) program, it has ensured that most of
the products are exposed to the disposed of through patient excretions (AstraZeneca 2015).
Recently, it introduced the detection methods to avoid inappropriate disposals. It has initiated
studies to determine the risks the medicine poses to the environment. To this effect, it has
made the environmental risk assessment a priority before launching new drugs. It has also
ensured that its manufacturing discharges remain safe because it operates under Maximum
Tolerable Concentrations and Environment Reference Concentrations concepts to avoid
polluting the aquatic environment (AstraZeneca 2015). The pharmaceutical has also resorted
to responsible strategies to manage its wastes. It focuses on the waste prevention by
minimizing the concentration, especially during the production. It thus treats and disposes of
the wastes appropriately thus maximize recycling and reuse.
In conclusion, AstraZeneca has established the best environment sustainability efforts
to meet the expectations of patients and other stakeholders. Everyone has expressed interest
in using environment-friendly technologies to reduce emissions. This is in response to the
growing concerns regarding climate change. The company has thus made sustainability its
DNA in resolving regional environmental issues.
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Question 3
Salesforce management
Managing sales force is an important step for the company to expand the market
share. Indeed, the sales force should be efficient to help AstraZeneca tap global growth.
AstraZeneca is a business involved in selling medicines and related pharmaceutical products
including medical equipment. With the intention to enter Australia, it is necessary for the
company to get down to relationship management to establish its global network of the sales
force. Indisputably, maintaining the relationships is always difficult. Nonetheless, for this
Malaysian firm to make an impact in the industry, it delivers a return to customers. The
findings of scholars (Kotler, Burton, Deans, Brown, & Armstrong 2015) demonstrate that
sales force management focuses on the planning, analyzing, and implementing activities of
the sales force. This involves various steps as shown in the flowchart in Appendix 1. The
international sales sequences that the company must use involves designing the strategy and
structure, recruiting and selecting, training, compensating, supervising, and evaluating
salespeople.
The goal
AstraZeneca’s goal is to hire the best-talented sales person who can deliver maximum
return to the organization in the new market. The sales-force management sequences will
ensure AstraZeneca creates an efficient, motivated and skilled sales team who will help the
company to create a strong relationship with clients leading high returns.
Designing strategy and structure of salesforce
AstraZeneca is committed to shaking the Australian market by using motivated
salespersons. Since there are established firms in Australia, the Malaysian company will have
to use different sales-force structures including complex, product, customer, and territorial. In
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this structure, the company uses a sales force organization to assign an individual salesperson
a given geographical territory (Armstrong, Adam, Denize & Kotler 2014). In this territory,
the assigned salesperson is authorized to handle AstraZeneca’s full line. Without a doubt, this
structure is beneficial to the company because it defines the fixed and job responsibility. This
structure will minimize travel expenses and build customer relationships. Under this
structure, the management and decision-making process will follow the bottom-up approach
as shown in the flowchart.
The company can also use the product sales-force structure to market its
pharmaceutical products and services. In this structure, the company will identify the sales
force organization with individuals specialized in selling AstraZeneca’s medicines only
instead of carrying its product lines (Nemo 2015). This strategy will be disastrous when the
targeted customers purchase different products from AstraZeneca. Unlike in the previous
structure, this sales force structure requires extra financial resources to cater for traveling
costs (Kotler et al. 2015). Nonetheless, the salespersons have the best product knowledge
because they pay close attention to the single product.
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Territorial sales
representatives
Territory
managers
Regional
managers Sales director

Surname International Marketing Management: Case of AstraZeneca in Australia
AstraZeneca has an opportunity to use the market or customer sales-force structure in
Australia. In this structure, the company will identify salespersons and ensure they specialize
in selling or marketing its products to a specific customer base or industries. For instance, it
will use the strategy to serve new and current customers thus build a strong relationship with
these targeted customers (Armstrong et al. 2014). However, the company also has an
opportunity to use complex sales-force structures, which combines at least two structures to
serve the targeted market and territory. Therefore, AstraZeneca will benefit by using the
complex structure to sell its pharmaceutical products to the Australian customers.
Sales-force size
The size of sales force must be considered in designing the sales force strategy and
structure. Given the move by the firm to enter Australia, it would be prudent for it to consider
costs and benefits attached to the salesperson. Nonetheless, the company understands that
hiring many salespersons would be expensive but can translate into more sales thus becoming
productive (Kotler et al. 2015). Importantly, it is critical for AstraZeneca to use different
workload approaches to maximize productivity. This will involve grouping salespersons’’
accounts into various classes depending on the status of the account, size, and effort. Each
salesperson will be expected to make calls to the class.
Issues relating to sales-force structure and strategy
Inside and outside sales-force will help AstraZeneca to attract new customers in
Australia. The field or outside salespersons are compelled to look for customers in the field
while the inside salespersons would conduct their businesses using their internet platforms
and telephones. The buyers also visit them in their offices. Nonetheless, the company will
have to establish a technical sales support to address customer inquiries and technical
information. The management will have to consider hiring the sales assistants to support the
outside salespeople (Kotler et al. 2015). The engage in administrative backups, such as make
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delivery follow-ups, confirm appointments, and answer questions. The web sellers and
telemarketers will help the company to improve its market share. This will involve the use of
the internet and phones to determine the market leads and prospects. During recessions, the
company should use the internet, phone, and email selling.
Salesperson recruitment and selection
The company needs to use the best approach to identify the top performers from the pool.
This is because; poor selections would be costly leading to quitting and high turnover. The
cost of replacing or finding a new employee is equally difficult. Consequently, the company
needs to address various issues in this stage (Pell 2017). Careful selection should be a priority
because it guarantees the company increased sales performance. However, poor selection will
cost the company because it increases training costs, disrupting customer relationships and
losses.
Compensation
AstraZeneca must understand the Australian labor laws regarding compensation. The
employee compensation will include expenses, fixed amount, fringe benefits, and variable
amounts (Pell 2017). According to the Australian labor laws, workers must be offered fixed
amounts including salaries so that they can have a stable income. However, the employer
should also consider variable costs like bonuses or commissions. These rewards are
associated with one’s performance or efforts. Today, companies are using compensation
plans, which reward long-term value and customer relationship instead of short-term grabs ().
AstraZeneca needs to note these changes to meet its obligations and achieve its goals.
Supervision
The salesperson must work smart by sticking to doing the right thing. Supervision
ensures an individual does the right thing while motivation encourages hard work and
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attainment of sales-force goals (Kotler et al. 2015). Given the current situation, AstraZeneca
should use an automation system to ensure the workforce operates effectively by offering
quality-customer services, managing time, lower costs of sales and improving sales
performance. AstraZeneca will also motivate and boost the morale through positive
incentives, sales quotas, and organizational climate where workers feel valued and
appreciated for their outstanding performance.
Evaluation and performance
AstraZeneca will have to use different strategies to evaluate the performance of
salespeople (Kotler et al. 2015). This will involve the use of expense, call, and sales reports.
For example, high performers will provide positive sales reports thus justifying the costs.
Without a doubt, personal selling will be evident when the profits are attractive.
Question 4
Hofstede’s concept: Australia and Malaysia
Cross-cultural diversity is an important factor that any business must consider,
especially when investing in a new country (Ting & Ying 2013). The Malaysian and
Australian cultures are distinct. Since the company is venturing into a new country, it must
understand the culture of the host country to avoid cultural conflicts. By exploring the
Malaysian culture, there are deep drivers of this culture relative to the Australian culture.
Power Distance
In a society, the aspects of inequality are evident as people are unequal (Ting & Ying
2013). Power distance expresses the attitudes people have towards others. Spacecraft
Charging Technology Conference and Harris (2001) has defined power distance as the extent
to which the powerless group accepts the unequal distribution of power in a society or an
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organization. The power distance score for Malaysia is 100 thus justifying the high dimension
of power distance (Ifim n.d). This implies that Malaysians have completely accepted the
hierarchal order. In such an environment, they believe that everyone has a unique opportunity
and chance without justification (Ifim n.d). It shows that the Malaysian organizations are
deeply centralized and inherent inequalities. The subordinate can never operate without
instructions thus making an autocratic boss inevitable. Nobody can challenge the leadership.
On the other hand, the Australians score 36 in power distances (Ifim n.d). This
implies that Australians establish a hierarchy for convenience. To them, the managers depend
on the teams and employees to perform. This makes the superiors easily accessible because
both managers and employees must consult or share information frequently. Therefore,
communication is participative, direct, and informal. To this effect, the Malaysian company
must be ready to make significant adjustments to fit in the Australian business environment.
For instance, it will have to decentralize power by embracing participative management
approach to succeed (Ifim n.d).
Individualism
This dimension addresses the interdependence issue in the society. According to Ifim
(n.d), people use different terms like ‘we’ or ‘I’ to define their self-image. An individualist
society, the members are only concerned about their families and themselves while in a
collectivist society, people value groups and team. To this effect, Malaysia is a collectivistic
society because it scores 26 in individualism dimension (Ifim n.d). This demonstrates the
commitment of the Malaysians to embrace group including extended relationships and
families. In fact, it is a culture for the members of the society to pay loyalty because it
overrides the societal regulations and rules. The Malaysian society fosters ties because it is
the responsibility of everyone to take care of others. In this society, the offense would make
an individual lose face or ashamed. The relationship between managers and employees is
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viewed in moral terms. The promotions and hiring of workers are based on an in-group
model. The management has the responsibility to manage the group.
However, in Australia, the level of individualism is HGH because the score stands at
90 thus making is a highly individualistic society (Ting & Ying 2013). In this society,
members value themselves and look after their interests and their families. To this effect, the
Australian workers are expected to display initiative and remain independent. The Australians
earn promotions and hiring based on merits. People or employees who have achieved
incredible success would earn promotions. Therefore, the Malaysian company must embrace
this new culture to survive. For instance, must high individuals based on merit and
performance.
Masculinity
Masculinity dimensions show that society is founded on competition, success, and
achievements. The successful individuals are viewed as the winners within the value system.
However, the low scores are a reflection of a feminine dimension. The feminine society likes
the work of others compared to a masculine society, which opts to be the best. The Malaysian
society scores 50 in masculinity thus making it difficult to distinguish it (Ifim n.d).
Conversely, the Australians score about 61 thus considered a masculine society. For instance,
the shared values define the behaviors in workplace, playground, or schools. This is the takes
it all society thus making them proud of their merits. In fact, these successes determine the
promotion and hiring decisions at work. In case conflicts emerge, it has to solve at the level
of an individual to enhance the winning mentality. Since the Malaysians are either masculine
or feminine, they would fit this culture. Therefore, during business negotiations, the
Australian would seek for a winning approach compared to the societal benefit pursued by
the Malaysian. Nonetheless, through negotiations participative approach, the Australians can
undertake opportunity costs.
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Uncertainty avoidance
The Malaysians score low in avoiding uncertainty. This implies that the Malaysian
managers can tolerate deviations from norms and shared values. The schedules are flexible
and they operate without rules. In fact, to the Malaysians, innovation is never a threat to
business. However, for they score 51 that shows that they are concerned with uncertainties
thus plan and schedule their work to avoid failures (Ifim n.d).
Long-term orientation
Australians embrace normative culture because they score 21 in this dimension (Ifim
n.d). These people value the absolute truth and respect their traditions. They also value quick
results and low propensity to save compared to the Malaysians. The Malaysians are also
normative because they value the absolute truth (Star Online 2014). Since they share this
dimension, it is possible for them to reach an agreement during face-to-face conversations.
They would strike a deal offering quick results.
Indulgence
This dimension focuses on controlling desires and impulses. The Malaysians culture
is an indulgence because the score is 57 (Ifim n.d). For this reason, most Malaysians value
socializing and enjoy life. With their positive attitude, the Malaysians remain optimism.
Similarly, the Australians score 71 in indulgence thus making the country and indulgent
nation (Ifim n.d). They value leisure and socialization. This makes their business negotiations
possible because they share most of the dimensions.
Conclusions
AstraZeneca’s objective of investing in Australia is critical because it guarantees the
company increased revenues and profitability. As demonstrated in this study, the health and
medicine industry is costing the Australian government fortune. It needs more supply of
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quality drugs to meet the growing demand for patients. The company, however, must
consider the market entry strategies and political risks associated with this investment.
Nonetheless, the salespersons will be offering it an opportunity to attract customers beyond
the reproach. To this effect, AstraZeneca will have to consider salesperson management
structures and strategies to guarantee it a success. The Malaysian pharmaceutical will also use
the Hofstede dimensions to determine its ability to build trust and relationship with the
clients.
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References
Armstrong, G, Adam, S, Denize, S & Kotler, P 2014, Principles of marketing. Pearson
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Appendix
Appendix 1: Sales-force management sequence
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Hire efficient and experienced
sales-force
Designing strategy
and structure
Recruiting and
selecting
Training
Compensation
Supervision
Evaluation