Market Entry Strategy Healthcare Services

Question: Discuss about the Market Entry Strategy for Healthcare Services. Answer: Introduction Expansion of business outside its host country needs a lot of deliberations before investment is made as the amount involved is huge. Companies in any field need to analyse the risks and opportunities associated with that country before venturing into it. Apart from looking at the country from a macro perspective, it should be looked at in a micro perspective as well. The said report concentrates upon the expansion plan of a pharmaceutical company of Australia who is looking at expanding its business in China or South Africa depending upon the possible opportunities the market proposes and the available risks that the company has to face. Basis this analysis a country would be chosen and then an entry mode is suggested which would help the company to enter the market without losing on its investment. Herron Pharmaceuticals- Background Herron Pharmaceuticals is an Australian pharmaceutical company which manufactures pharmaceutical and natural healthcare items. It is a subsidiary of Sigma Pharmaceuticals. It was founded two decades ago and they are well known for producing medicines such as Paracetamol and Ibuprofen two of the most renowned medicines for fever. They even produce an entire range of vitamin tablets for kids and range of baby care products such a nappy rash cream. The said company is planning to expand its business globally. For the same it is looking at either of the two markets- China and South Africa. Both the markets are very lucrative but a detailed analysis of the possible risks and opportunities have to be done of the two countries so that the most apt choice can be made for the same. China- An Opportunistic Market China is one of the largest pharmaceutical markets in the world but due to its population it is still defined as an immature market. However in the next ten years the pharmaceutical industry of the country may grow leaps and bounds. Stimulus for the same is the improving research and development activities, the skilled labour force, and awareness amongst the people about the importance of taking care of health, government participation and development of the economic conditions. Even though the pace at which the growth of the pharmaceutical market of China may vary but various eminent observers such as the Economist Intelligence Unit (EIU) and IMS Health are very positive about Chinas pharmaceutical market. The opportunities in the China market are viewed as under: The increase in the ageing population of China is one of the biggest opportunities it provides to the pharmaceutical companies across the globe. The population of China is expected to be the highest by the end of the year 2016 of which although the elderly population is low but is expected to be at a percentage of 9.7 which is an increase of around 1% in the last five years. The ageing population will naturally demand for more health related assistance due to weak immunity system. The present statistics reveal that around 23% to 40% comprise of elderly people who constitute the prescription drug market and half a century of the population demand for over the counter drug market. The second carrot for Herron Pharmaceuticals for investing in the Chinese market is the low manufacturing and selling expenses that the country offers. The market is seen growing at an average rate of 20% per year and there are no signs of slowing down of the same. There has been an upsurge in the RD area of China because of lower costs, larger patent pool, increment in the capabilities of the scientists who produce drugs and the enhanced knowledge of the local players in the industry (Ispirit Business Solutions, 2016). The said market is preferred the most due to lack of too much of emphasis on regulatory requirements as compared to other countries across the globe. China is one such market which has always welcomed the foreign drug players and has won the hearts of the customers against the domestic standardized brands. This also gives a big opportunity to the global market players to invest in China. Last but not the least, the process of formation of a company or setting up of a distribution and manufacturing channel is simpler. It gives options to the companies to obtain a Drug manufacturing License or a Drug Distribution License or both after incorporation as well. Secondly the price controls that were put by the Chinese Government over around a quarter of a percentage medicines have been lifted (cphi.com., 2016). Risks Involved in The Chinese Market Along with the potential opportunities which the Chinese market offers to the pharmaceutical industry players which give it a nod to invest in China, there lie some risks which cannot be wade off. These risks should be analysed in detail before investing in the Chinese pharmaceutical sector. To enumerate a few: The biggest risk being faced by the pharmaceutical companies in China are the investigations which are being conducted in this industry. For example Glaxo SmithKline which has been one of the pre-dominant players in the Chinese pharmaceutical industry is under great vigilance and has been caught for instances of bribery and corruption which has affected its sales (Caroll, 2013). A state-run campaign in China has led to lowering of the drug prices in the country thus affecting the sales. The Chinas government run health insurance funds are forced to negotiate with the drug suppliers for the prices because of the increase in the ageing population and the diseases (Bulloch, 2016). Thirdly the economic growth of the country has suffered a hit, i.e. it is growing in a very staggered manner which has led to slowing down of the premiums that people used to pay for medical insurance (Harris, 2014). Fourthly the introduction of bidding in order to sell medicines in public hospitals has hurt both domestic as well as foreign pharmaceutical companies. Due to this the local companies are seen to be in a better position thus hitting the investments of various international companies (Bloomberg 2016). Opportunities in The Market of South Africa The South African market is also a lucrative market for the foreign companies to invest into. The country offers various opportunities which are enlisted below. They are as under: The domestic production in Africa is very low which gives room to the foreign entrants. The issues that the domestic market faces can be used as an opportunity by the foreign players such as lack of better research and development capabilities and shortfall in the capital and the domestic skills which these foreign companies possess. Further the support of the government to the local pharmaceutical companies is also an opportunity based on which these foreign companies can get a hold to the South African market (Holt et.al. 2015). Urbanization is yet another reason for investing in the South African Market. Within a decade it is expected that nearly two-fifths of the economic growth is expected to come from thirty cities. The purchasing power is very high and people in those cities are inclined towards buying expensive and modern medicines (Taylor, 2013). Expansion of pharmaceutical companies in South Africa is lucrative also because of an increase in the health care facilities such as addition of hospital beds, new doctors and nurses. The count is in thousands. The government of South Africa has contributed a lot for the development of pharma sector which has opened room for greater foreign investment. The drug approval process was very slow in the country which has now speed up. The Medicines Control Council is being replaced by South African Health Products Regulatory Agency (SAHPRA) which has emerged as a major contributor for providing incentives to the foreign pharmaceutical companies. The registration process was one of the major concerns for the foreign entities which will be addressed by this agency. It will reduce the time gap from five years to one year (PR Newswire, 2013). Risks Involved in the South African Market Even though the market of South Africa may seem to be lucrative from a foreign investors view point yet the same also poses risks which cannot be ignored. Some of the prominent issues faced are enumerated as under: The biggest risk that the foreign entrants may face is in the wake of the support by the government to the local pharmaceutical companies. Export is very low, which clearly indicates that whatever is produced is consumed within the country itself. Government has announced that first mover advantage would be given to the local pharmaceutical manufacturing companies in case of awarding of National tenders for the supply of medicines. The companies here operate on a very low margin of profit. Although the risk of failure is very low because of income guarantee as the chances of changes in the input costs are very low as well. Thus for foreign entrants the market is not very attractive due to low margins and in some cases no margins at all (Singh, 2012). The phased roll out of the National Health Insurance Scheme by the government of South Africa is one of the biggest reasons deterring the foreign investors to invest in the pharmaceutical segment. The government has plans to build an indigenous manufacturing plant for generic drugs and is expected to be in operation (Oxford Business Group, 2014). China As The Preferred Destination Country I being an international operations manager of the company, on analysing the various risks and opportunities associated with China and South Africa would conclude that China seems to be a more lucrative market for investment. Factors such as low cost production, adequacy of availability of the number of labour, government regulations, population of the country, support of the masses to the foreign pharmaceutical companies and most importantly the infrastructure facilities available all are major deciding factors. However political, economic cultural and ethical risks are equally important decisive factors. Both the countries have risks and opportunities attached but on analysing the two it are found that China is more preferable as an investment country since the demand for health care amenities, drugs and medicines have increased manifolds. The governments support is stronger in South Africa due to which it is difficult or at least time taking to break through the market of South Africa as compared to that of China. The economic growth although slowing down but not as much as that of South Africa also makes it an attractive country. More importantly China is viewed as a country which is capable of producing low cost medicines and provide better infrastructure which is the need for any manufacturing firm. The next important criterion which weighs the Chinese Market above the South African market is the high-end research and development facilities. Although South Africa also offers an increase in the amount of health care amenities yet it is far behind than that offered by China. Theref ore on studying these issues in depth it is clear that our company should invest in the Chinese market as its strategy of expansion. Strategy to Enter The Chinese Market The best part about entering the Chinese market is the warm welcome which the people of china give to the foreign enterprises in spite of stricter government regulations and regime. Even though it is said to be one of the most difficult markets to penetrate into, the same is still possible. For the same we should study the strategies adopted by various foreign firms which would provide an aid to our company to plan an effective entry into the market of China. We should aim at entering the Tier 1 companies as a testing ground. Off lately Chinas Tier 2 cities have also developed a lot and is an attractive market for us. As in the case of Bluepharma which had been looking at China as an investment country since long first and foremost understood how it can succeed since the market is not too sensitive towards price fluctuations. It understood that in order to have a hold in China it has to enter into a partnership agreement with a Chinese partner which would ease the drug registration process and further partnership with others who would aid distribution of the drugs in China. Thus according to me we should firstly appoint a consultant from China who would enable us to find some good potential Chinese business partners for distribution and research and development This partnership would help us to understand which medicine is in high demand, which medicines are rarely available but of need and what kind of advertisements and selling strategies would attract the customers (EUSME Centre, 2012). Secondly to ensure ease in registration we should next find a Chinese partner who would help us in the same. Then we need to get Clinical Trials conducted in China even if the same is well known and accredited in other countries in the world. Therefore all thee can be possible if we enter into a joint venture with a Chinese partner who would hold a Drug Supply Certificate and enable such imports easily. Thirdly we should enter into a partnership only with such marketing agencies who are well known in China and the same differs state wise. We also need to understand the products whose patents have expired as it could be a good market for our products. Fourthly is the staff which we intend to hire. The lower level staff should be hired from local areas only but it is preferable to have at least one Chinese officer in the higher management there who would be well versed with the language and culture necessary to survive in China (Chitour, 2013). Lastly the most important part of our strategy or entering the Chinese market should be International Property Rights (IPR) Strategy. Violation of the IPR in China is very common thus we should consult lawyers and the IPR specialists to help in managing the said risk. The patent registration should be done at the earliest as this is the area which is most bleak. Therefore these are the basic strategies which according to me should be adopted in order to enter the Chinese market. Conclusion Thus on a concluding note I would like to reiterate over the fact that although both the markets China and South Africa have their own risks and opportunities which deter us to invest yet the Chinese market seems to be more lucrative due to the support it shows to the foreign companies. Not only citizens but the government itself welcomes foreign entities with a view to see an upsurge in their economic scenario. Though some restrictions are there which is necessary for the protection of the countrys economic growth but they are such restrictions which are acceptable by any new entrant. Therefore on a concluding note I would like to cast my opinion for China as a profitable and rewarding market to enter into. References: Caroll, D., (2013), Is Big Pharma Setting up for a China Sales Catastrophe?, Available at https://www.fool.com/investing/general/2013/09/19/is-big-pharma-setting-up-for-a-china-sales-catastr.aspx (Accessed 02nd September 2016) cphi.com., (2016), China Pharma Industry, Available at https://www.cphi.com/china/visit/why-visit/china-pharma-industry (Accessed 03rd September 2016) Bloomberg, (2016), Chinas Drug Price Cuts are Hitting Big Pharma Where It Hurts, Available at https://www.bloomberg.com/news/articles/2016-03-08/big-pharma-s-china-dream-meets-reality-of-price-cutting-campaign (Accessed 03rd September 2016) Bulloch, D., (2016), Chinas War on Big Pharma Exposes The Mirage of Market Access, Available at https://www.forbes.com/sites/douglasbulloch/2016/05/25/big-pharma-in-the-china-trade-market-or-mirage/#4c30655b368e (Accessed 03rd September 2016) Chitour, H.L., (2013), Big Pharma In China- The Driving Forces behind Their Success- A Qualitative Analysis, Chinese Studies, vol. 2, no.4, pp. 169-177 EUSME Centre, (2012), Bluepharma Entering the Chinese pharmaceutical market, Available at https://www.ccilc.pt/sites/default/files/casestudy_bluepharma.pdf (Accessed 03rd September 2016) Harris, D., (2014), Does a Prudent Market Entry Strategy for Healthcare Services in China Exist, Available at https://www.chinalawblog.com/2014/09/does-a-prudent-market-entry-strategy-for-healthcare-services-in-china-exist.html (Accessed 03rd September 2016) Holt, T., Lahrichi, M., Santos de Silva, J., (2015), Africa: A Continent of opportunity for pharma and patients, Available at https://www.mckinsey.com/industries/pharmaceuticals-and-medical-products/our-insights/africa-a-continent-of-opportunity-for-pharma-and-patients (Accessed 03rd September 2016) Ispirit Business Solutions, (2016), Should you be Investing in Chinese Pharma Sector?, Available at https://www.ispiritsolutions.com/blog-should-you-be-investing-in-chinese-pharma-sector/ (Accessed 02nd September 2016) Oxford Business Group, (2014), South Africas pharmaceutical industry braced for change, Available at https://www.oxfordbusinessgroup.com/news/south-africa%E2%80%99s-pharmaceutical-industry-braced-change (Accessed 03rd September 2016) PR Newswire, (2013), Emerging Pharmaceutical Market in South Africa Proposed Introduction of New Drug Regulatory Agency (SAHPRA) to Accelerate Drug Registration Process, Available at https://www.prnewswire.com/news-releases/emerging-pharmaceutical-market-in-south-africa---proposed-introduction-of-new-drug-regulatory-agency-sahpra-to-accelerate-drug-registration-process-190181371.html (Accessed 03rd September 2016) Singh, S., (2012), Pharmaceutical industry risk review, Available at https://www.bizcommunity.com/Article/196/398/79671.html (Accessed 03rd September 2016) Taylor, L., (2013), South Africa Pharma market to grow 5.8% / year to 2020, Available at https://www.pharmatimes.com/news/south_africa_pharma_market_to_grow_5.8year_to_2020_1004187 (Accessed 03rd September 2016)

Uk as a Mixed Economy free essay sample

In the light of the change that have occurred in the structure of the UK economy in the recent years, discuss better is it still correct to describe UK economy as a mixed economy. Generally, the British economy is also known as the Anglo-Saxon economy and is the second largest economy in Europe after Germany. It is also the fifth largest economy in the world in terms of market exchange rates. In the early history, the country’s most dominated sector is the agriculture sector in which the most important and major export is of cassiterite which is known as ‘tin’ in Anglo Saxon which gave the country its’ name. UK is also one of the most significant producers of textiles and chemical products. Back in the medieval times (11th century – 15th century), the wool trade was a major industry and was being exported to Europe. From then on, towns and ports grew up and in addition canals and railways began to be built. We will write a custom essay sample on Uk as a Mixed Economy or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page Another important industrial are automotives, locomotives and aircraft. The UK economy experienced a massive transformation in the 1980’s when the country was under the leadership of Margaret Thatcher where state owned enterprise in the industrial and service sector which since 1940’s had been nationalized were privatized. The British government now only owns very few industries and businesses such as ‘The Royal Mail’. As the country expands, UK underwent a vast passage through civilization and modernization, thus due to that in the 1990’s, UK’s financial sector came into the big screen and played a big role in contributing the country’s outcome revenue. The largest sector in UK is the service sector with the manufacturing and primary sector in decline although the sector is still important for overseas trade, accounting for 83% of UK’s exports. The economy in the recent years has seen the largest period of sustained economic growth for more than 150 years and it is also one of the strongest European Union economies in terms of inflation, interest rates and unemployment all which is relatively low. After such improvement in the UK economy, is it correct to look at the country as a country which practices the mixed economic system still or otherwise? Personally in my opinion, I would indeed look at UK as a country applying the mixed economy concept as both government and firms are involved in determining the future growth and further development of the country in terms of profit and welfare as they are both equally significant.

The Childrens Crusade Essay Example

The Childrens Crusade Paper James Millette Ms. Kelzer World History 11/28/11 By June, 1212 about 30,000 kids under the age of twelve had showed up to support and go on the journey to capture back the holy land. (Kreis, Steven) Even wealthy children had snuck outside of their families to join. The children’s crusade seemed like it would be successful and had good intention, but had a huge lack of sense of leadership and planning. He had led him and his army into a dispute against all factors of nature. At him being so young of age, that had also caught up with him. It has been said that the children’s crusade was a set up to try and shame the king and his army to go and fight for the holy land. The Crusades were a series of religious wars, blessed by the Pope and the Catholic Church with the main goal of restoring Christian access to the holy places in and near Jerusalem. The Crusades were originally started in response to a call from the leaders of the Byzantine Empire for help to fight Muslim Turks expanding into Anatolia, these Turks had cut off access to Jerusalem. The main series of Crusades occurred between 1095 and 1291. We will write a custom essay sample on The Childrens Crusade specifically for you for only $16.38 $13.9/page Order now We will write a custom essay sample on The Childrens Crusade specifically for you FOR ONLY $16.38 $13.9/page Hire Writer We will write a custom essay sample on The Childrens Crusade specifically for you FOR ONLY $16.38 $13.9/page Hire Writer This Holy Land was extremely important to Christians because it was where Jesus Christ had lived. The church had taken the process a step further, claiming crusading as doing a sort of deed to God for sins that had been done. This created a desire to fight for Christianity, and a motivation that kept Western Europe in tact, causing thousands of ordinary people to join the cause. The origin of the Children’s Crusade however, was from the increase of religious feeling among the peasants and laymen. Mobs of children, who belonged to religious communities and carried the belief of recovering Jerusalemm had assembled. A boy named Stephen, who was twelve years old and was from Cloyes in the Orleannais. He was born out of a poor family, which was neglected in their town. He supposedly had come upon Christ while he was sleeping and was ordered to give a letter to the king and also preach the crusade. The king had turned him down, but Stephen began to go across town and he preached. His letter had told his followers that crossing obstacles like the sea would be easy for them: it said that the waterways would part and let them cross through. According to the church, this crusade wasn’t really a crusade because they weren’t blessed by a pope. The church believed they couldn’t bless if a crusade was bound to fail, but they thought that by sending these kids would put shame on the popes and make them actually put together a crusade and capture Jerusalem. The amount of inspiration Stephen had towards his religion was immeasurable. He had gone and preached promoting the crusade against Muslims of the east of Spain and had been turned down by nearly everyone who he had come across. After he had received the letter from Jesus he arrived at the entrance of Abbey of Saint-Dennis and had announced that he would lead an â€Å"army† of children to rescue the holy land. In the summer of 1212 three armies of children, each more than thirty thousand strong, setout from France and Germany, to walk to Jerusalem and rescue the Holy Sepulchre from the armies of Muslims. The leaders were children, boys only twelve or thirteen years old; they preached in churches, at shrines, and on highways. Now, this was an act that took major amounts of courage but children cannot lead other children and Stephen being only twelve years old, he wasn’t ready to lead either. When it comes to leadership, Stephen lacked highly in it as a whole. Mostly all of his army had set on foot and Stephen had designed a cart for himself. At his sides were several boys on horseback who were from richer families and could afford these things. It wasn’t fair to the other 30,000 kids that had to suffer on foot. Money distribution had become a huge issue. There was no money to buy food or water or any means of transportation anywhere. Stephen had also made his army believe that the sea would spread for them and they would be able to cross, none of this happened. A few days later, two merchants, Hugh the Iron and William the Pig, confronted Stephen with a deal. They offered to provide seven ships, to the mass of children, free of charge. All of the boys and girls boarded their ships and set out to Palestine. It took about 18 years until the story of the tragedy had been talked about The fact that Stephen was only twelve years old and had come from a poor peasant family really had an effect on his sense of power. It seemed as though people didn’t respect him. On top of that he didn’t know how to read nor write, he was in a way looked at as a fool even at such a young age. It was wrong for the king to even let him step foot out on his own. The morals of the king were that he would shame his own army into fighting the crusades, but this didn’t work and the king had sacrificed 30,000 other children’s lives. When there is a mass population of kids, disease also comes into play. As the journey went on, many kids became diseased and those diseases had carried to both the kids and the towns that they had traveled through. Before reaching the sea, over half of the army had either died from disease, starvation or heat exhaustion. This was considered a very painful journey, some kids had wandered off to seek food or just to go home. Since Stephen didn’t know how to read, for days even weeks the children wouldn’t hear from anyone and they had come across towns out of luck. Once reaching the city of Marseilles, they were kindly greeted and were given rooms to sleep in. Now these rooms were only given to the more wealthy, most of them stayed out on the streets and scavenged whatever food they could find. EBSCO Publishing Service Selection Page. Web. 13 Dec. 2011. †¢ The Childrens Crusade. History Learning Site. Web. 28 Nov. 2011. †¢ Children’s and Shepherds’ Crusades: Were the Children’s and Shepherds’ Crusades Class Protests of the Poor Against the Wealthy? History in Dispute. Ed. Mark T. Abate. Vol. 10: The Crusades, 1095-1291. Detroit: St. James Press , 2003. 32-39. Gale Virtual Reference Library. Web. 11 Nov. 2011. †¢ Kreis, Steven. The Childrens Crusades (1212). The History Guide Main. Web. 11 Nov. 2011 †¢

Free Essays on Clemente Chavez

â€Å"There is a heat more intense than fire of the torch! And it can be rekindled at a moment’s notice! Where discrimination, injustice and oppression rear their ugly heads the fire can be called upon to burn them away.† Clemente Chavez is a protagonist in the novel Heart of Aztlan. The took place in Barelas, a â€Å"barrio† in Albuquerque, New Mexico in the year 1950’s. Clemente Chavez used to be a farmer, and he loved to work the soil. He lived in a rural area with his family. He yearns for his life in barrio, he also fight for his and his co-workers rights in the city. The book ends with Clemente leading his co-workers on a peaceful demonstration through the railroad company. And he want his family to have a better future, he believe that there is a better life in the city. Clemente is a father that is willing to give his life to his family’s future and the rights and conditions of his co-workers. Clemente wants his family to have a better life. He had a land in a barrio. Unfortunately he was not able to earn enough to pay the mortgages on his land, so he was forced to give up and sell the land. Prior to selling the land, he is like he lost his old customs and traditions. â€Å"There is no injustice in dealing in land.† He felt cursing and crying out the pain he felt because Don Jose bought it in a very low price; Clemente do have any choice. His family are always there to care for him. His family felt very sorry for Clemente. They the move from rural area to urban life takes a hard toll on the family, especially to Clemente. For him is like moving from one world to another. As Clemente wants his family for a better future, he feels powerless in regards in his own family, who’s members takes up city-life in their own ways, and not to his liking. His children enjoy moving in the city; they quickly socialize with the youth often attending parti... Free Essays on Clemente Chavez Free Essays on Clemente Chavez â€Å"There is a heat more intense than fire of the torch! And it can be rekindled at a moment’s notice! Where discrimination, injustice and oppression rear their ugly heads the fire can be called upon to burn them away.† Clemente Chavez is a protagonist in the novel Heart of Aztlan. The took place in Barelas, a â€Å"barrio† in Albuquerque, New Mexico in the year 1950’s. Clemente Chavez used to be a farmer, and he loved to work the soil. He lived in a rural area with his family. He yearns for his life in barrio, he also fight for his and his co-workers rights in the city. The book ends with Clemente leading his co-workers on a peaceful demonstration through the railroad company. And he want his family to have a better future, he believe that there is a better life in the city. Clemente is a father that is willing to give his life to his family’s future and the rights and conditions of his co-workers. Clemente wants his family to have a better life. He had a land in a barrio. Unfortunately he was not able to earn enough to pay the mortgages on his land, so he was forced to give up and sell the land. Prior to selling the land, he is like he lost his old customs and traditions. â€Å"There is no injustice in dealing in land.† He felt cursing and crying out the pain he felt because Don Jose bought it in a very low price; Clemente do have any choice. His family are always there to care for him. His family felt very sorry for Clemente. They the move from rural area to urban life takes a hard toll on the family, especially to Clemente. For him is like moving from one world to another. As Clemente wants his family for a better future, he feels powerless in regards in his own family, who’s members takes up city-life in their own ways, and not to his liking. His children enjoy moving in the city; they quickly socialize with the youth often attending parti...

'Critically evaluate the concept of corporate social responsibility Essay

'Critically evaluate the concept of corporate social responsibility and assess its contribution to the framing of business eth - Essay Example 2006, p. 4). Thereby, Corporate Social Responsibility tends to be a pivotal issue for the organizations that tend to do business in a sustainable way. Though Corporate Social Responsibility is a concept that is affiliated to voluntary actions on the part of businesses, still, in the current times there has been a soaring pressure on the businesses to extend positive contributions to the societies and communities in which they operate, and at a minimal limit the negative impact of their business activities (Fall 2003, p. 205). The governments the world over have been formalizing the salient aspects of Corporate Social Responsibility, particularly those that are related to environment. One salient attribute of the Corporate Social Responsibility is the need on the part of the businesses to affiliate to the ethics prevalent in the socio-economic context in which they operate (Smith 2008, p. 183). Thereby any viable idea of Corporate Social Responsibility is complete without affiliating to business ethics. ... 110). The primary objective of a business is to garner profits for its shareholders and owners. However, the onus of generating profits does not mean that a corporation could do anything to facilitate these pecuniary motives. Therein comes in the concept of Corporate Social Responsibility and business ethics. Many a times the concept of Corporate Social Responsibility and ethics is used interchangeably (Kline 2005, p. 239). The thing that needs to be understood is that the term Corporate Social Responsibility pertains to the acceptance on the part of a business of certain salient social obligations. For instance it is not binding on the part of a business to extend employment opportunities to the physically challenged and other sidelined sections of the society. Still if a business extends employment to the physically challenged people, it constitutes the recognition of a social obligation on the part of a business and comes within the ambit of Corporate Social Responsibility. Howeve r, when one considers the concept of business ethics, things get a little confusing and difficult When it comes to business ethics, it is not merely about the recognition of certain salient social obligations on the part of a business (Joshi 2012, p. 148). Business ethics are not a concept that the businesses could adhere to on the basis of voluntary initiative, but rather they pertain to the actual conscience of a business (Marcoux 2006, p. 51). The ethical behaviour on the part of a business pertains to recognition on the part of that business as to what is good and right. Inculcation of an ethical behaviour on the part of a business pertains to a formal recognition on the part of a business as to what it can do, and what it cannot do

Investment Risks Essay Example | Topics and Well Written Essays - 2500 words

Investment Risks - Essay Example This refers to the poor earning reports, legal actions against the company, management ineffectiveness, or potential bankruptcy related issues that might keep an investor from investing in the company’s securities and stocks. Credit risk refers to the possibility that the company will not be able to meet its obligations and pay off its debts as and when these become due. If this situation arises, this could have a drastically negative effect on the company’s performance and its perception into the minds of potential investors. This might also result in a decline in stock prices and may ultimately lead to solvency problems for the company.This refers to the situation where movements in exchange rates adversely affect the investments for an individual or the company. The exchange rates may move in favor of or against the investments for people. If exchange rates are decreasing, an investment in a security becomes attractive as other investment models, like foreign currenc y, becomes unattractive due to exchange rates being reduced. However, if exchange rates show an increasing trend, an investor might not be willing to invest in a company’s securities until the return from the investment in securities is more than the return from investments in foreign currency. In addition, for multinational companies or for those who try to diversify their portfolio by investing in foreign currencies, exchange risk might be a very critical element to take into account before making the investment.

Owners Perspective During Preconstruction Essay Example | Topics and Well Written Essays - 500 words

Owners Perspective During Preconstruction - Essay Example guidance of the architect/ during this phase maximizes the value added to the project such as, energy efficiency, space used, design, structural integrity, mechanical systems and market value. Construction project cost is a main worry for the owner, yet usually the estimating is carried out in too general a manner like sq. ft. costs or very late in design development phase. The benefits that the estimating process brings are likely to be missed if the estimator comes in at the last part of the design phase to execute an Engineers Estimate. These benefits consist of project feasibility, budget development, scope definition, realistic input to the VE as well as VA process, documents’ quality control, input to the designers as well as owners decision making course, format of the bid, clarity of scope, and projects’ bid-ability. The usual project usually overruns its cost estimation. Overruns are frequent on governmental as well as commercial projects, even when changes are considered. The reason this occurs is because estimating traditionally does not take into account the threat that the work will in point of fact cost less or more than offered by the most proficient estimate. In order to settle on a more suitable contingency, use of a quantitative risk assessment is encouraged. Nevertheless, risk assessment has been mainly ignored for larger projects as a part of the approximating process in addition to the development of the budget. Risk assessment is currently getting more popular; it is being talked and considered a lot more than it was in the past. Major projects, mainly those in the Design-Build or some using an optional delivery technique, the teams involved in design, building, and project controls work jointly developing the design, approximations, budgets, as well as schedules in juxtaposition with each other or concomitantly (Demkin 569). Incorporated cost along with plan risk assessments can thrive in this setting. Nevertheless, in spite of the