Doing Business Globally and Internationally: Case Study Analysis

This report provides a comprehensive analysis of the global and international business strategies employed by Pfizer Inc. and Zhejiang Hisun Pharmaceuticals. It addresses key external factors influencing their partnership, including environmental suitability, effective management styles, and economic environments. The report highlights the internal benefits and synergies arising from their collaboration, such as competitive advantages and enhanced brand image, while also considering the roles of the US and Chinese governments. It examines the nature of their partnership, identifying it as a 'will partnership' and discussing associated risks. Furthermore, the report includes a national and corporate culture analysis, comparing the cultural aspects of the US and China, and assessing the impact of both national and corporate cultures on the partnership. The analysis also explores the effects of exchange rate movements on the partnership deal, offering a detailed understanding of the complexities of international business relationships and providing valuable insights for the target audience.

Running Head: Doing Business Globally and Internationally
Doing Business globally and Internationally
[Document subtitle]

Doing Business Globally and Internationally 1
Table of Contents
Introduction......................................................................................................................................1
Part A...............................................................................................................................................1
Answer 1......................................................................................................................................1
Answer 2......................................................................................................................................3
Answer 3......................................................................................................................................5
National Culture Analysis............................................................................................................5
Corporate Culture Analysis..........................................................................................................5
Impact of National Culture on partnerships of both Pfizer and Zhejiang Hisun.........................6
Impact of Corporate culture on partnerships of both Pfizer and Zhejiang Hisun........................6
Answer 4......................................................................................................................................7
Part B...............................................................................................................................................9
Answer 1......................................................................................................................................9
Conclusion.....................................................................................................................................11
References......................................................................................................................................12

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Introduction
In this paper, we have answered six different questions. The questions are based on the given
case scenario. These questions are answered on the basis of previous research findings and
viewpoint of different research scholars. The paper has two different parts. Part A has been
discussed four questions. On the other hand, Part B has one question where we applied the
overall learning from the module to personal development. With the help of this paper, the target
audience can get significant information about the most important external issues, expected
internal benefits, and different synergies. Apart from this, they can also learn enough about how
they can apply their theoretical knowledge in practical context. Therefore, this paper has been
shared a lot of relevant information that will prove beneficial for target audience as well as the
partnership of Pfizer Inc., or Zhejiang Hisun Pharmaceuticals. So, it can be said that this paper
will prove an effective tool for target audiences with which they can get answers to their
different questions.
Part A
Answer 1
Both Pfizer Inc. and Zhejiang Hisun are recognized pharmaceutical companies which are
covered in the given case study. Alghisi (2015) has been concluded that external factors
influence the current position of an organization in a significant manner. Therefore, it is
necessary for an organization to put a control over its internal and external factors. There are a
lot of external factors which become the reason and trend of driving the partnership of both
Pfizer and Zhejiang. The first and the foremost factor is environment suitability. It means that the
partnership of both is highly strengthened by the environment. Both of the companies belong

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from America. Therefore, they have enough opportunity to understand the functioning of each
and adjust accordingly. Due to the environmental suitability, they significantly analyze the
market and take necessary decisions whenever necessary. So, it can be said that the presence of
environment suitability trend strengthens their relationship or partnership by developing a mutual
trust and bonding. Another external factor which becomes the sole reason for their good
partnership is effective management style (Gould, 2014). Both the Pfizer and Zhejiang chooses
an effective management style which strengthens their relationship and mutual trust. Due to the
best management style of both, they understand the behavior of each and take supportive
initiatives accordingly. The third and most important external factor that derived their
partnership is the economic environment. They both evaluate the economic environment by
taking significant initiatives. For example, an analysis will be done to evaluate inflation and
unemployment rate within the existing country. The use of such initiatives has provided them a
brilliant knowledge about the confidence level of consumers, saving rates, taxes, and rate of
interest. With the help of this knowledge, they plan the future of their partnership accordingly.
Moreover, such information also improves their knowledge about taxes and business benefits
which serve as a core factor in determining the efficiency of partnership.
The effective partnership between both Pfizer Inc. and Zhejiang will bring a lot of internal
benefits and synergies for both companies. The first and the foremost area is a competitive
advantage. It is an area which benefited more than other areas. It is because the improved
partnership further increases the quality of their working and organization outcomes. This
ultimately does not win the confidence of consumers but also enforce them to be the part of the
company again and again. This builds and strengthens the competitive advantage of their mutual
organization within the existing country. On the other hand, another area that expects internal

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synergies is a brand image. Cohen (2017) has been concluded that concentrated focuses on
external factors strengthens the partnership as well as improve business outcomes. In a similar
manner, effective concentration on external factors will improve quality of products and services
which further establish the brand image in the eyes of customers. Therefore, it can be said that a
great focus on external factors will have potential to lead a lot of positive benefits as well as
synergies.
Furthermore, Canova (2015) has been defined that the Chinese and US governments are highly
involved in the operation of both companies. The government mainly involved in operations of
both to provide appropriate framework conditions, and determine the standard of social
protection. The main aim of government behind determining the both is to ensure a proper
control on outcomes of a business organization and its ethical conduct. On the other hand,
another motive is to ensure social security with profitability. Therefore, it can be said that the US
and Chinese government both plays an important role in their management. It is because the
government is responsible for offering standards of conduct and checks their continuous follow-
up.
Answer 2
Krause (2014) described the partnership as a type of business organization where two or more
than two individuals pool skills, money, share resources, profit, and loss in accordance with the
terms lied within the partnership agreement. In the absence of an agreement, a partnership is
assumed to exist where the participants in an enterprise agree to share the associated risk and
rewards proportionally. On the other hand, Hwang (2013) explained the partnership as an
arrangement where two or more person shares the liabilities and profits of a business venture.

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The partnership is of different nature. The selection of partnership type depends on partners and
type of business organization.
Krause (2014) concluded that there are different choices associated with the partnership. These
choices include; general and limited partnership, partnership at will, and particular partnership. A
lot of risks are associated with the selection of a particular partnership choice. Vatamaniuk
(2016) has been defined that the partnership of Pfizer Inc. or Hospira Inc. is based on will
partnership. It means that the partnerships of both companies is for unlimited time and depend on
the will of their owners. Moreover, it is treated as will partnership because both of the
organizations do not determine the time period or the purpose of their partnership during its
formation. It is believed that the Will partnership comes with a lot of risks that need to face by
the company to strengthen their partnership and come with more relevant outcomes. The first
and the foremost risk need to bear by both Hospira and Pfizer is that any partner can dissolve the
partnership by giving notice to another partner. Therefore, this maintains the insecurity at the
workplace (McCluskey, 2016). This drawback and risk of will partnership prevent owners from
taking any big initiative which will continue up to a large number of years. On the other hand,
another risk that associated with the Will partnership is a misuse of power. It means that there is
the high possibility of power misuse. The owners of both companies will try to misuse their
power which is not beneficial for their company as well as employees. Therefore, it can be said
that there is a lot of risks associated with the partnership of both Pfizer and Hospira. On the basis
of the partnership of both Pfizer Inc. and Hospira, it can be said that they have selected the right
choice of partnership but need to take an active initiative to mitigate the partnership risks
(McCann, 2014). A little attention towards risk management will prove their partnership
effective for business as well as their clients.

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Answer 3
National Culture Analysis
The American culture is full of customs and a lot of traditions. Brown (2014) has been defined
the culture as a combination of religion, food, clothing style, language, music and belief system.
It is concluded by McCluskey (2016) that the US is one of the most culturally diverse countries
in the world. The culture of US is also known as a melting pot where different culture
contributed their significant efforts to develop its economy and culture. Gould (2014) described
that the Southeast, Western, Northeast, Midwest, and Western regions of the US have different
customers and traditions. Generally, it is believed that the people of US do not have any specific
language. It is because every language in the world is spoken in the United States. But, most
frequently spoken languages mainly contain German, Spanish, Chinese, and French. Berger
(2014) concluded that 90% of the people understand the English language very well. Therefore,
each business house conduct meeting in the English language. On the other hand, equality
culture is being prevailed within the US. Due to the equality culture, every individual has their
rights and authority to use their responsibilities in a right manner. They spent their life with a lot
of enjoyment and freedom. Due to this, the US culture is liked by each individual of different
countries.
Corporate Culture Analysis
A difference can find in the culture of both the Pfizer and Zhejiang. It is due to the difference in
management style. Pfizer corporate culture is quite strong than Zhejiang. It is because the
corporate culture of Pfizer is quite broad in nature (http://www.pfizer.com/careers/en/culture).
McCluskey (2016) defined that Pfizer corporate culture is effective in supporting the firms'
leadership because of key features that fit the business. Generally, it is believed that different

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businesses have separate requirements for their culture. In Pfizer case, a lot of characteristics like
creativity, innovation, secrecy, moderate combativeness, and top-notch excellence can find
easily. On the other hand, Zhejiang adjusts its corporate culture through the years
(https://www.bloomberg.com/research/stocks/private/snapshot.asp?privcapId=5842289). This
aspect of the business responds to changes in leadership as well as business situations. The
corporate culture of Zhejiang is popular due to its characteristics of collaboration, real-world
leadership, and performance with purpose.
Impact of National Culture on partnerships of both Pfizer and Zhejiang Hisun
Generally, it is believed that national culture influences the partnership of two or more
organization in an effective manner. Story (2014) concluded that national culture affects in both
positive and negative context. The positive influence of national culture on a partnership of both
is that it strengthens the trust and mutual understanding. Both Pfizer and Zhejiang companies
belong to the same national culture. So, a culture difference cannot find there. Due to the absence
of cultural difference, they can spread collaboration among employers and other members of
both companies. On the other hand, the negative influence is that both companies will not learn
the concept of change and diversity management. If cultural difference will there, they can learn
how to respect the diversity of each employee and manage it appropriately.
Impact of Corporate culture on partnerships of both Pfizer and Zhejiang Hisun
It can be said that the corporate culture of both organizations influences their partnership in a
positive context. It is because they can learn from corporate cultural values of each and can put
significant efforts towards their implementation. For example, the Zhejiang follows the
performance with purpose, real-world leadership, and collaboration cultural practices (McCann,
2014). These practices further improve the decision-making standard within the company which

Doing Business Globally and Internationally 8
ultimately secures their partnership from additional conflicts and barriers. On the other hand, the
cultural features like innovation, creativity, and security will maintain the internal management
which further comes with fruitful outcomes like performance improvement, and healthy
relationship development.
Answer 4
Chkili (2014) concluded that exchange rate movements come with both positive and negative
influences on the partnership deal of both Pfizer and Hospira Inc. Cheung (2013) defined the
exchange rate as the value of one currency for the purpose of conversion to another. The below-
mentioned are some positive and negative influences of movement in exchange rate on the
partnership deal:
Positive Influence
The first and the foremost positive influence can gain by both companies if the value of currency
becomes high. Due to the high exchange price of the currency, they both can earn handsome
profit. Gould (2014) described that a person or business organization enter into a partnership to
expand their resources, earn enough profit and increase the size of their business. Therefore, with
the same motive, the partnership will prove fruitful for them if the value of their $ become
strengthen in comparison of other country currency. Another positive influence is that
devaluation will make exports cheaper and they will benefit enough from an effective sale.
Furthermore, another positive influence is that it brings enhancement in the sale of products and
services (Cheung, 2013). Due to the sale at large level, both companies can increase their profit
margin or get a competitive advantage over their competitors. Therefore, it can be said that
somehow exchange rate fluctuation will prove beneficial for the deal and they can move ahead to
accomplish their revised objectives.

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Negative Influence
Apart from the positive influence the exchange rate movements also put negative effects on the
deal. The first and the foremost negative effect is that both of the organizations import their
material from another country (Li, 2015). Therefore, due to the fluctuations in exchange rate,
both firms will bear higher costs of imports. This automatically enhances the cost of their final
outcomes or product. This will enhance the inflation within the country. This will prove bad for
both the companies which further influence their decision to enter into a partnership. On the
other hand, another negative influence is decreasing in profitability (Ghosh, 2016). It mainly
happens when the exchange rate will be lower for them. In that situation, they both are not able
to enhance their profitability level and will fail in satisfying their objectives of the business.
Therefore, it can be said that the exchange rate movement also comes with a lot of negative
influences on the deal.

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Part B
Answer 1
It has been concluded by Cavusgil (2014) that the globalization of commerce and business
becomes a significant reality during 2000. It happens due to the high growth rate of world GDP
in terms of international trade and produced goods and services. The international environment is
covered with a lot of risks and challenges that need to face by a business organization to get
success. The below-mentioned are some challenges that will come during international business:
Culture and Costs of Doing Business: The first and foremost challenge that needs to bear by
international organizations is culture and costs. The Hofstede cultural theory explained that
culture is a combination of different dimensions which ultimately influence work practices in
different countries (Sitkin, 2013). These dimensions are masculinity vs. femininity, uncertainty
avoidance, collectivism vs. individualism, long vs. short-term orientation, and power distance.
Therefore, in a global framework, large power distance can give birth to potential corruptive
practices. On the other hand, Chou (2015) explained that culture differs from country to country.
In that situation, if an organization chose to go internationally it becomes difficult for it to deal
and survive within an international environment. It is because the cultural differences hamper
their work practices and it may become a failure. Apart from this, the cost is also an important
challenge in international business. A business house needs to spend a lot of money or high cost
to enter into international environment. Therefore, if an organization does not have sufficient
money and capital to invest in the international market, it becomes a failure as soon as possible.
Political Risk: Another foremost challenge that will face by the organizations is the political
risk. Generally, it can be said that there is a strong relationship between the political risk and

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international environment. Hwang (2013) said that political risk comes with a lot of negative
business consequences. It happens due to the behavior of public sector business houses and
governments. There are a lot of political risks which need to face by an organization that is doing
business internationally. These political threats are the risk of nationalization, wars and civil
strife, corruption practices, and transparency in working. The presence of all these political risks
enhances the difficulty of international business and makes it more challenging.
I considered that both of these international business challenges are more significant than others
like national and international accounting, international trade theory and various others. The
main reason behind the efficiency and criticality of both is that they are associated with
international business in a large context (Nugroho, 2015). Culture is a foremost factor with
which an organization needs to deal with international business. Therefore, I think that culture is
a critical and significant risk factor for international business. On the other hand, cost and
political risk are also important challenges of international business. It is because if an
organization does not have sufficient fund and capital then how it will deal and survive in global
competition. Apart from this, if politics of international business do not understand effectively, it
will raise a lot of risk factors (Sarasvathy, 2014). These risk factors further influence the
performance as well as the success of the business. So, I personally believe that these factors
should consider for deal with the international environment in near future.