Business Finance
Muscat College Thriving in A Competitive Global Context Analysis Paper

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I’m studying for my Business class and need an explanation.

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Am looking for an assignment answer for "Individual written report: Demonstrate knowledge and understanding of the changing nature of the global business environment"

Assignment 2 -TCGC is the question and other attached files are referral note for this assignment.


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Arya.

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Submission Deadline Marks and Feedback Before 10am on: 20 working days after deadline (L4, 5 and 7) 15 working days after deadline (L6) 10 working days after deadline (block delivery) 23/04/2020 Click or tap to enter a date. Unit title & code Referral MAR023-6 Thriving in a Competitive Global Context Assignment number and title Assessment 2: Written Report Assessment type Individual Written Report Weighting of assessment 70% Size or length of assessment 3,500 words Unit learning outcomes 1. Demonstrate knowledge and understanding of the changing nature of the global business environment, buyer behaviour in a global context and the factors which influence the implementation of an organisation’s competitive business strategy in a global context 2. Demonstrate skills and abilities in collecting and analysing appropriate information, applying a range of strategic business and financial tools and techniques available, to plan and evaluate global business and e-business operations. What am I required to do in this assignment? Your Referral Task: Identify the reasons and factors that have resulted in the following strategies in the global pharmaceutical industry: a) Internationalisation b) Consolidation through mergers and acquisitions. Assessment 2 will be based on an extended case study of the Pharmaceutical industry (this is the SAME case study as used in the main assessment). Please ensure that you read this case study thoroughly and please build on this case study by carrying out your own research to update and add further context to the international business environment for this particular sector. What do I need to do to pass? (Threshold Expectations from UIF) In order to pass Assessment 2 Referral you will need to:  Identify and assess some of the current strengths and weaknesses of the international organisation(s) relative to its global environment  Recommend a logical outline strategy / plan to enhance its global competitiveness. How do I produce high quality work that merits a good grade? We will be filling this section in together in class on Click or tap to enter a date. make sure you have downloaded/printed out the Assignment Brief and bring it to the session with you. How does assignment relate to what we are doing in scheduled sessions? This referral assessment will allow you to reflect upon some of the core concepts which contribute to the foundational themes of the unit. This assessment will allow you to demonstrate your knowledge in understanding the nature of the global business environment within one particular sector; the pharmaceutical industry. You will be expected to think laterally about the global business environment (with particular focus on the macro environment) and the unique set of challenges an increasing level of interdependence can have on business activities/operations. How will my assignment be marked? Your assignment will be marked according to the threshold expectations and the criteria on the following page. You can use them to evaluate your own work and consider your grade before you submit. 2 3rd Class – 40-49% Lower 2nd – 50-59% Basic use of academic literature, with basic use of course concepts, models and theories but lacking in depth and/or breadth in some areas. Good use of academic literature in connection to problem set and good overall application of multiple course concepts, models and theories. Very good use of academic literature in connection to problem set and very good overall application of multiple course concepts, models and theories. Excellent use of academic literature in connection to problem set and excellent overall application of multiple course concepts, models and theories. Some basic ability to synthesize different perspectives, but lacks evaluation of the international business environment and analysis of contemporary research to explain the complex interrelationships between internationalization/M&A and the pharmaceutical sector Good ability to synthesize different perspectives, but limited evaluation of the role of T.H.E. and limited analysis of contemporary research to explain the complex interrelationships between internationalization/M&A and the pharmaceutical sector Attempt to develop a consistent argument, but lacks critical depth Argument lacks consistency, critical thought and appropriate conclusions Conclusions are made, but not supported Very good ability to synthesize different perspectives and evaluate the role of T.H.E., and to analyse contemporary research to explain complex interrelationships between internationalization/M&A and the pharmaceutical sector Evidence to construct a consistent argument (which is not critical throughout) and derive relevant conclusions Excellent ability to synthesize different perspectives and evaluate the role of T.H.E., and to critically analyse contemporary research to explain complex interrelationships between internationalization/M&A and the pharmaceutical sector Strong evidence to construct a consistent and critical argument and derive relevant conclusions 3 Presentation & Structure (20%) Basic presentation skills but major inconsistencies in terms of structure and flow that hinder understanding Basic style of writing without using adequate terminology and vocabulary, major spelling and grammatical errors Good presentation skills, but inconsistencies in terms of structure and flow Good style of writing; however, limited in using appropriate terminology and vocabulary and some minor spelling and grammatical errors Very good presentation skills, but minor inconsistencies in terms of structure and flow Very good style of writing in terms of terminology and vocabulary, grammar and spelling; however, some minor issues in terms of clarity of writing Excellent presentation skills evidenced by a clear structure and coherent flow Excellent style of writing in terms of clarity of expressions, terminology and vocabulary, grammar and spelling 4 Relevance and Quality of Sources & Referencing (20%) (Basic) identification of some sources; however, sources lack relevance and quality and are not used effectively to support ideas Good identification of relevant sources, however, weaknesses in using sources to support arguments effectively Very good identification of and use of a range of relevant and quality sources in an effective manner Excellent identification and use of a wide range of relevant and high-quality sources that support arguments effectively Basic referencing following the university’s standard (both in-text and reference list), but with major inconsistencies Good referencing following the university’s standard (both in-text and reference list), but with some inconsistencies 1 Knowledge & Understanding (30%) 2 Interpretation & Evaluation (30%) Upper 2nd – 60-69% Very good referencing following the university’s standard (both in-text and reference list) to a large extent 1st Class – 70%+ Excellent referencing following the university’s standard (both in-text and reference list) without any flaws 3 Thriving in a Competitive Global Environment Individual Report Help Sheet (Pharmaceutical Industry: A2) It is important to stress that this help sheet is just a guideline, it is not a definitive framework for you to base your report on. There is not just one approach to the TASK set. This assignment is an opportunity for you to be able to demonstrate not only learning from the MBA programme but also your ability to show critical understanding of the key forces of change in a very competitive global industry and to build on the information given to you in the case study with your own research. Please take note of the following: • • • • • • • It is crucial that read and clearly understand the case study, it describes and gives an overview of the Global Pharmaceutical Industry for the year 2015. This may sound an obvious point but take your time to think about what the TASK is asking you. Please ensure that you read this case study thoroughly and build on this case study by carrying out your own research to update and add further context to the international business environment for the Global Pharmaceutical Industry. Evidence of a well-planned, organised and structured piece of work including clear conclusions and recommendations based on the analysis you have carried out. Content and coherence: relevance of the content to the TASK set; have the issues raised in the TASK been squarely and clearly answered? To what extent does the content develop coherent themes of argument in addressing the issues and the final conclusions? Analytical standard: emphasis on analysis rather than purely descriptive details; application of theoretical concepts and techniques. Presentation and referencing: use of diagrams and figures, quality of academic writing and use of English. Sources must be correctly referenced, and there needs to be a systematic Reference List at the end. Be aware that plagiarism, in the form of copying from unattributed sources or from other students, will result in penalties including failure. Simply put the TASK is concerned with the key forces of change in the Global Pharmaceutical Industry. A well-structured report is crucial, hopefully the following points may help you. 1. It will be important for you, in addressing the TASK, to have a clear understanding of the strategic environment of the Global Pharmaceutical Industry, so a structured approach is essential utilising learning and understanding from the MBA Course. 2. The core of the assignment should be based on PESTEL analysis and Porter’s 5 Forces. Whilst this may look straight forward, PESTEL and 5 Forces should not just be a descriptive list of factors, they should be the basis of a critical evaluative insight into the main issues affecting the Global Pharmaceutical Industry. Not all factors are equal in importance, some are secondary factors and some are primary. Make sure you have concluding sections for both your PESTEL and ‘5 Forces’ highlighting the salient points. 3. You could, in addition whilst utilising models such as Porter’s five forces in analysing the competitive environment of the Global Pharmaceutical Industry - add a 6th force under the explicit heading of ‘Government Policies’. 4. It is important to be able to identify the main sectors, segments and markets making up the Global Pharmaceutical Industry – for instance, ethical drugs, generics. 5. In addition an understanding of internationalisation issues – standardisation/adaptation pressures – and use of relevant international models such as Yip’s Globalisation Model would be helpful. 6. To reiterate, the case study is quite extensive, but it was written a few years ago, so it is OK to supplement your answers with some additional research in order to add value and detail to your answer. 7. Finally, there is not one right answer, you will be dealing with incomplete information and this is the reality of international business. What we are looking for is, a good use of research evidence and sound arguments. You should be able to make points with COHERENT REASONS and JUSTIFICATION that should form the basis of a CONSISTENT CONCLUSION. We both wish you all the best as you work on this assessment! Colin and Rukeya Thriving in a Competitive Global Context: Assessment 1 HELPSHEET Dear All Students, Colin and I have produced this short help-sheet to help you prepare for your first assessment. This worksheet is based on the questions which we were asked whilst out in Oman and guidance we think important – we hope you find it useful. Colin and I wish you all the best of success as you prepare and work towards your in-class test. Some points to remember/consider: 1. The in-class test will be based on the topic of RISK. There will be no other accompanying information for this in-class test. There will be ONE question you will be asked which will be composed of two related parts. As discussed, whilst we were out in Oman, you can either tackle each part of the question separately, or combine both parts to produce one answer. We do not mind which option you go for, as long as you respond to both parts of the question. 2. Please conduct your own research on the topic of risk. As Colin and I mentioned when we were in Oman, risk is a wide topic area and there are many different types of risk that could impact on International Business organisations. If you can bring in some of your own research, and contextualise, your answer will be much more interesting and impressive to read! 3. One of the things which Colin and I will be looking for is the use of examples in your work to illustrate the points which you are making. Please try to use as detailed and exact examples as you can when making points/arguments. If you can provide strong, detailed examples to support the points you are making, you will have a stronger answer. Please avoid vagueness and do not be descriptive…try to use as many examples as you can from the research you have been doing. 4. Building from the last point, please note that marks will not only be given to your recall of key knowledge/concepts, but we will be looking for application of that knowledge through the use of examples. So, it is important you get the balance right. 5. This is a one hour in-class test. We understand that under these conditions your spelling may not be perfect! However, we would like it if you could provide a few in-text references (there is no need for a detailed end reference list). Students who can add in their own research on average perform better. 6. Despite the short time for the in-class test, we will still expect students to consider and pay attention to the STRUCTURE of their work. Please think about how you write your: a. Introduction: What is the question asking you to do? How will you approach the question? What will you cover in your answer? Let the reader know… b. The main body: Think about the themes/main points you will cover, how will you organise them into paragraphs? How will you link your themes? Remember – always ensure that you are linking all your points back to the question. c. Conclusion: Synthesise what you have covered, reflect back on what the question has asked you to do and give your final thoughts on the topic area. Has your own research uncovered anything important you want to mention in your conclusion? 7. Demonstrate your breadth of knowledge, by listing several points on a particular issue/argument. But then select a couple of the most important points you can write about in detail – this will show your depth of knowledge. 8. Think about how you will include your taught lecture material and reading into this in-class test. Try to think about the theory/concept/key terms which are relevant to the case studies. a. For example only: if you are talking about Risk…be specific, what type of risk are you talking about as there are many different forms. b. If you are talking about Globalisation, again be specific; which processes are you referring to? Globalisation is a complex phenomenon and very much contested. 9. Please practice the questions which Colin and I gave you. Especially BS 1: Session 3: the question in the slide headed “Example Question 1” (Slide 15). 10. There is no set word limit on this assessment. Remember, we want to see quality not quantity! Ensure what you write is meaningful and always link your answer back to the question. Please prepare for the in-class test…and be confident in your own abilities! We wish you the very best! Rukeya and Colin ...
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Final Answer

Attached.

Running Head: BUSINESS

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Risk Experienced in the Global Pharmaceutical Industry
Name
Course
Institution

BUSINESS

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Risk Strategies in Global Pharmaceuticals Industry
In today's corporate world, companies experience uncertainties as they run economic
activities; this happens for both profit-centered organizations and non-profit centered
organizations. The above is in the course of any doubt that depend on crucial strategies instilled
by a company. Risk is a terminology that was first implemented in 1966, and it defined the term
uncertainty as generated from the outcome of any event in the existence of two or more
possibilities (Boris, 2020). Any firm at risk must suffer economic performance, and imposing
constraints in its resource allocation even though the business decision is not limited to the
condition of uncertainty. Therefore, the cost of change arises out from expected loss, which does
occur and other change occurring even if no damages occur. Business stakeholders respond to
risk by engaging in safe actions rather than risky ones. Global Pharmaceutical Industry considers
prudent behaviors, not distorting the optimal allocation of productive resources. The primary
reason for avoiding risk is putting in action economical cost (Demirbag, 2007). In any existence
of financial uncertainty causes financial loss as counteracted by the assumption of risk as a
source of gain to society.
Risk has a positive relationship with the return, thus terming the risk as a common
denominator of all decisions made by human beings recognizing the existence of risk; hence
compensation is adequate for the chance. In cases where GPI takes an initiative of globalization,
uncertainty on future income is compromised. Bearing the risk done, the economic agent guides
risk evaluation measures; therefore, investors must be compensated for bearing the risk of
investments that result from trade-offs. In regards to all the actions taken, in one way or the
other, the action is beneficial to the company. Appropriate strategies used to achieve
globalization lead to the maximum level of satisfaction as the set goal of the firm (Rashid,
2017).

BUSINESS

3

As a general rule, entities prefer superior returns to lower returns, similarly preferring
lower risks to higher ones. Accountants recognize the actuality of net quality for risk-taking,
quantifying the meaning of risk in any business decision. As a result, new perspectives and
empirical work regarding the link between risks and expected return. Key terms used in the
research work includes accidents that are termed as undesired issues arising from peril as a result
of the loss of resources. Peril is defined as a situation causing property loss; many times, the
natural, human-made, or economic activity in society. Hazards, on the other hand, speculate
about the occurrence of a failure within a specific peril. Exposure is defined as assets subjected
to particular danger. Lastly is loss exposure that is articulated to be the potential financial loss
involved as a result of exposure (Reddy, 2014).
Factors Leading to globalization
Every firm's objective is to achieve sustainable and sufficient growth. However, firms
spread their business even though resources limit them due to inadequate access to financial
markets, the absence of internally generated funds, and the size of the company. Therefore, to
achieve business goals by maximizing profits, firms will use organic or inorganic strategies to
improve the growth of the company. Most firms prefer inorganic strategies through sales
expansion by use of mergers, acquisitions, divestitures, globalization, spin-offs, and take-overs,
among many others, as the fastest way for corporate firms to expand their business (Reddy,
2014).
Considering globalization is caused by many factors making manufacturers virtually
become aware of positive participation in global markets. An increase in foreign market
competition has grown very vast as experienced in the United States. The overseas exchange has,
therefore, created a global market for the pharmaceutical industry creating needs for international
awareness, opening an array of options (Pröllochs, 2020). Immediately the industry participates

BUSINESS

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in the international podium that was not available in the past. As seen in the United States,
import penetration of pharmaceuticals increased considerably by 7 percent of domestic
consumption (Teramae, 2020). Due to the rapid increase in foreign-based production, there has
been an expansion in foreign competition in the drug sectors. For a firm to upgrade the
pervasiveness in foreign competition, the products they produce should be matching the
standards in the international markets in serious competition. To maximize the value of
customers, the pharmacy sector will have to incur cost, quality, performance, and delivery to
maximize value-added on the product (Rashid, 2017).
Secondly, the rapid increase in foreign demand in the pharmaceutical industry has created
an attractive market abroad. Pharmaceutical products are one of the essential needs required in
the medical field. Hospitals and health officers require knowledge of products sold by the
industry. Without internalization in the pharmaceutical sectors lead to failure of meeting health
practitioner standards as documented in the World Health Organization. The sophistication of
health products and the increase in demand has seen countries not satisfied with products
produced within the state. The global presence has helped in guiding complacency, giving
definite room for retaliation of competitors in home markets, hence incapacitating companies on
retaliating. International markets have serious setbacks. For example, in the United States, ready
to eat cereals produced by Kellogg Company is a significant reason why Nestle a worldwide
company has limited space in the States (Pega, 2020).
Technological advancement has increased globally, escalating the rise of opportunities
for producing goods and services within the shortest time possible as a result of the shorter
product life cycles. For example, the US may be termed as the top-class health facility in the
world, but not all drugs are manufactured within its borders. Due to technological know-how
diffused across the globe, the pharmaceutical industry is forced to expand curbing the needs

BUSINESS
across the territories. The global markets have, therefore, shifted positively in the world markets
with pharmaceutical products listed in the world trade platform as shares participating in
international markets. Due to intellectual property ability, firms are in a position to produce
excellent products due to the possession of resources, production capabilities, and expertise
required to meet different market segments with rapid product turnover (Demirbag, 2007).
Consolidation through Mergers and Acquisitions
The pharmaceutical industry has been undergoing profound restructuring since its
origination in early 1966. The action of restructuring was driven by substantial changes in the
regulatory, economic forces, and financial capacities surrounding the industry. The forces drive
reasons behind Mergers and Acquisitions include licensing, insurance, royalties, patent, and
generic competition, and cost of research, clinical trial issues, marketing distribution, shareholder return, and international regulation. Due to the economic factors, the pharmaceutical
industry sees more mergers and acquisitions than any other industry, both in recent cases of
purchase and the amount of money spent in the process of acquisition (Pröllochs, 2020).
Pharmaceutical industries have large, game-changing deals that change the competitive
landscape. The smaller and significant transaction is integral, enhancing the entire operation in
the medicinal industry.
Pharma companies are redefining themselves because large companies are preferred to
make mergers and acquisitions as a standard business model supporting our hypothesis. To start
with, the key factors triggering changes in the industry is the ever-increasing cost of drug
production and development (Pröllochs, 2020). The company is not in a position of carrying out
research and development, finding innovative compounds. The financial statements from the
firms give a clear indication of the average cost during the event of a new drug with ranges
between $1.4 billion- $1.6 billion and again taking a decade or approval on the same drug

5

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(Demirbag, 2007). The reason behind the high cost is the creation of an added value by solving
the said problem. Therefore, for a company to take the risk of merging and acquisition, it will be
forced to cut the cost of production in the research industry. The pharmaceutical industry is
profit-oriented, where firms aim at creating profits. Considering its profit-making ambitions, the
firm will cut costs on the ever-increasing cost of production by sharing the cost of production
(Pröllochs, 2020).
The ever- increasing regulatory requirement by the standard world body has intensified
on customer intimacy and lockdown strategy to ensure they regulate the drug industry to protect
the interest of the stakeholders. For a company to have a meaningful portfolio on the drug
development programs, it has to stipulate long term expenditure goals. The pharmaceutical
industry relies on high margin expenditure, thus making companies with high margin dominate
since they have substantial drug development programs. Regarding strategic repositioning due to
the critical size requirement in each market, the segment is increasing faster than the firms could
grow. Secondly is the fundamental nature of the required changes with large mergers allowing
the bundling of subcritical business, thus building new platforms. Thirdly it has been realized
over the past decades that no pharmaceutical has a patent cliff resulting from changes as
compared to other industries. Examples of Biotech Company thriving from established
originators include Amgen, Biogen, and Gilead (Rangone, 2020).
For example, a Swiss-based pharmaceutical firm focusing on the mid-market
transactions with Christoph Bieri as managing partner with Kurmann Partners. Since its
inception, Christoph has led to numerous sales targeting bases in Europe and North America.

BUSINESS

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Due to economies of scale experienced by companies, the organization requires efficient
capital allocation across the industry. The considerable capital allocation fosters innovation
during the early stage of biomedical research requires vast capital for a successful venture. In this
regard, companies will have to consider a merger and share the cost of invention. Outsourcing
manufacturing equipment's to increase return on equity by reducing the asset base of the
originator to consolidate through mergers and acquisitions to increase low margin and intense
capital manufacturing, giving a more volatile and profitable development in the marketing of
drugs (Rangone, 2020).
M&A has become one of the fundamental tools for strategy implementation in the
corporate world, more so the Pharmaceutical sector. All the upcoming industry will consolidate
together to form game-changing moves, building companies mastering future changes.
Therefore, Mergers and Acquisitions are standard measures for pharma companies getting access
to innovation as well as streamlining business portfolios (Miessner, 2020).

BUSINESS

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CASE STUDY
'The Global pharmaceutical industry back to the Future' by Sarah Holland articulates on
the chronological evolution in med...

TutorLarra (21754)
New York University

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