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Assignment highlights about the risk factors & possible opportunities of two countries namely South Africa & China.

Home, - AUSMED - An Australian Pharmacy store

INTRODUCTION

AUSMED is an Australian Pharmacy store which produces drugs and medicines which are growing in the country rapidly. They are aiming to expand their business in other country as well. An analysis will be made of both the countries through which easy decision making will be done and the manager will be able to choose the appropriate country. Various factors will be read and identified so that the working can be influenced and the tasks can be improved and business can lead towards the growth. The report focuses on the risk factors associated with the organization while entering into the new market. The study also aimed to identify the opportunities present in the market like China and South Africa. 

ANALYSIS OR RISK AND OPPORTUNITIES OF SOUTH AFRICA AND CHINA

An analysis will be made of both the countries through which easy decision making will be done and the manger will be able to choose the appropriate country. Various factors will be read and identified so that the working can be influenced and the tasks can be improved and business can lead the growth (Zielinski.et al.2015). 

Risks for the company in South Africa

Difficult process for establishing a business

In South Africa there is a very complicated process of installing new business because it becomes very difficult in the process. Starting a business in Africa is a very lengthy process because the manager will have to go through a very complicated structure. The cost of establishing a business is also high and affording that cost is yet another difficult task. The process is difficult that it requires a lot of time and efforts.

Difficulty in getting construction permit

The cost of construction is comparatively cheaper in but acquiring the permit is yet another difficult task. The material and other construction activities are cheaper but getting the permission is a difficult task. It takes mainly 13 procedures to get the process in start and this takes a lot of time. Many of the forms are not aware to such procedures through which they can start the business.

Getting electricity

Attain the electricity permission is also difficult because the rates are very high there and attaining the permission for the electricity is also very difficult. Getting electricity in South Africa is big concern for the new businesses. Eskom, an electricity public utility can take 60 days to provide electricity once the application is passed. It takes time is gaining the application as well (Steiner.et al.2017). 

Difficulty in attaining licensing 

Starting a business in Africa is a very lengthy process because the manager will have to go through a very complicated structure. The cost of establishing a business is also high and affording that cost is yet another difficult task. The process is difficult that it requires a lot of time and efforts. It takes a lot of time while getting the licences and then continuing the work. 

Taxes

Paying taxes takes 200 hours to complete per year and requires 9 payments. The tax rates are very high and not every businessman is able to handle it. Corporate income tax and unemployment insurance contributions (UIC) are two of the most difficult procedures and the gaining of permission is also very difficult. This is an expensive country in terms of tax liabilities and procedures. 

Cultures 

This country follows diversified cultures and they have all the different celebrations. The lifestyle of the people there is also very different and they have different business styles as well. They have entirely different thought process and they have different cultures too. The work life is also different there. 

Opportunities

Telecommunications

They have stronger communication channels through which they are able to get more clients and they will be able to look forward to a globalised channel. This will help in developing strong supply chain and they will be able to develop more customers. This will be helpful in the marketing of the company and more new people can be associated with them easily (Oliver & Morecroft, 2014). 

Better utility services

This company has better utility services when compared to other countries. They have plenty of water through which they can generate electricity and that will be beneficial for them. This country has plenty of natural vegetation through which the company will be able to get their natural resources properly. The cost of establishing a business is also high and affording that cost is yet another difficult task but getting the natural resources directly a positive thing for the company If they establish their business here. 

Risk factors for the company in China

Government control

There is a strict government control in China due to which no new company can enter and no company can leave. They have strict rules and regulations through which no random organisation is able to open the business. The company need to look after the government policies before entering into any new business (Tanamas.et al.2014). Even if the company is initiating any business line then they need to seek permission from the government so that they do not have any issues later. It takes a lot of time while getting the licences and then continuing the work. 

Inconsistent interpretation of rules and regulations

The rules and regulations fluctuate their so much that it hard to interpret the results or regulation which are going to be imposed on the business which are newly established. The disturbing rules and regulations can ruin the entire set-up anytime due to which the company has to go through major changes and the entire process is in trouble. The cost of establishing a business is also high and affording that cost is yet another difficult task. The process is difficult that it requires a lot of time and efforts (Muñoz, 2017).

Increased local competition

The local competition is so much in the list due to which the brand image of the company is disturbed. This creates difficulties in launching new products. The pricing also becomes a major issue and this will lead to some serious discontent. This is problem because the competitors of the local market settle for any random prices and the quality of the company is disturbed due to this. The cost of establishing a business is also high and affording that cost is yet another difficult task. The local competitors do not have face the cost of advertisement or promotional activities and this will draw the company towards loss (Mon-Williams, 2017). 

Little supply chain

The supply chain is very little due to the import and export prices. This will lead the company to heavy disturbance when it comes to sending their goods to different country. They will have to look for better options through they will have to maintain better supply chains and they will be able to sell their products in other countries as well. They should look for better opportunities through which they are able to deal in with the other opportunities as well. The cost of establishing a business is also high and affording that cost is yet another difficult task.

Opportunities in china

Best health care sector

For this company it is the great new for the company that china deals in great health care facilities through which they will be able to get more exposure to the company. They will be getting more clients and the demand will also be more. They will be getting appropriate sections through which they will be able to get more clients and they will get better opportunities to expand their market. The company will be able to get more options where they will be able to get more options to select the fields to sell the medicines (Murray.et al.2016). 

Great agriculture

The country has great agricultures due to which the medicines will be used more appropriately. This will be a golden opportunity for the company to expand its business get into wide range so that they will be able to deal in more areas and they will be able to get more clients. This will expand the business of the company so that they can lead towards the growth and also introduce to the different business line as well. They will be getting appropriate sections through which they will be able to get more clients and they will get better opportunities to expand their market (Pearce-Higgins.et al.2015).

E-commerce

This will help in developing better supply chain through which online platform can established. Many dealers will be associated with them and they can also expand towards wider range of business and market. They will be able get better business opportunities and this will help them to grow their business (Crowston.et al.2015). A larger platform will be set through which they can deal in various other countries. It is an opportunity for the company expand their business and attract more clients. 

Best technologies

This country has the best technological background through which they are bale secure a good position in the market. This will help the company to introduce more new techniques and the advertisement will also be enhanced through this. This will help the company to lead the organisation to lead towards the better structure and technologies will be improved. The betterment and growth can be improved so that the company can lead towards the pace and the targets can be achieved quickly. This creates ease in launching new products. The smooth platform can be developed through this (Mascheroni & Ólafsson, 2014). 

SELECTED DESTINATION COUNTRY

The country which has been selected for the establishment of business is China. This is so because they have greater opportunities as compared to South Africa. This will help the company to create a velocity so that company can establish their business. For this company it is the great opportunity that china deals in health care facilities through which company will be able to get more exposure. Management will be getting more clients and the demand will also be more. The country has good agricultures base due to which the medicines will be used more appropriately (Boekholdt.et al.2014). This will be a golden opportunity for the company to expand its business get into wide range so that company will be able to deal in more areas and will be able to get more clients. Good E-commerce chain will be helpful for the company as well. This will help in developing better supply chain through which online platform can established. Many dealers will be associated with them and they can also expand towards wider range of business and market. This country has the best technological background through which they are able secure a good position in the market. This will help the company to introduce more new techniques and the advertisement will also be enhanced through this (Mascheroni & Ólafsson, 2014).

DISCUSSION ON THE PROPOSED COUNTRY

There are few strategies through which the company can enter into Chinese market. Few of the strategies are:

Global low-cost sourcing

This country has the best resources which are low-cost and they are able to get connected through company easily. This will help the company get better pace through which they will be able to get more profit and better working can be done. This will be a golden opportunity for the company to expand its business get into wide range so that they will be able to deal in more areas and they will be able to get more clients. They will be able to introduce more profit through better collaborations. This will be a golden opportunity for the company to expand its business get into wide range so that they will be able to deal in more areas and they will be able to get more clients (Martin.et al.2017).

Grab the opportunity

In China, the company need to be aware of grasping the opportunity so that they are able to make the best opportunity to it. They will be able to collect the best time to grasp the target. This will improve the quality of the company and the brand image will be maintained. This will bring in more chances to meet the people as clients and this will bring more globalised platform for the company (Pereira & Kunin, 2015). This will be a golden opportunity for the company to expand its business get into wide range so that they will be able to deal in more areas and they will be able to get more clients.

Manufacturing deals

This company will provide best manufacturing deals because they provide the cheap packaging and they will be able to buy the raw material effectively. This will deal in the best pricing through this. The best of the sector will be provided so that the work can be done more appropriately with proper pricing. The company will be able to provide the appropriate sector through which they can generate more profits. This country has almost all the production houses through which they can provide all the category of material in lowest prices. They will be getting more clients and the demand will also be more (Livingstone.et al.2015).

Select appropriate location

The location where the company is going to be established will be helpful. This should be decided in advance so that they will be able to develop the most out of the location. The area where the company is setting its office should be amongst the reach of most of the health care sectors through they can generate the best out of it. The company need to look for the best opportunities out of the market place so that the company can grow more. They will be getting more clients and the demand will also be more.

High level of managerial control

This country has highly skilled labour and technicians who works tremendously well and will help the company to grow more. The company will be able grow with the help highly skilled labour and they will be able to grow more. The company will be beneficial for the company so that the company will be able gaining pace for the company and better opportunities can be grabbed through this. Framing appropriate strategies will be helpful for the company so that they can stay in the market for longer period (Ayadi & Arbak, 2014). 

CONCLUISON

This report has a study of two countries that is South Africa and China. There is a strict government control in China due to which no new company can enter and no company can leave. The company will be able to get more options where they will be able to get more options to select the fields to sell the medicines. The company will be able to get more options where they will be able to get more options to select the fields to sell the medicines. China has lesser supply chain through this the company will not be able to grow. 


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