MNC Enters a New Foreign Market

MNC Enters a New Foreign Market

Overview of the Topic, Market & MNC Selection

In today's highly competitive and rapidly advancing business world businesses need to develop strategies and take initiatives that can lead it towards sustainability and growth. Globalization or expanding business abroad is one of the most significant steps taken by companies in order to further grow worldwide. Profitability holds an immense importance for companies while going global; generally, a venture must accomplish higher profitability from its global expanding as compared to its domestic activities in order to compensate for the extra efforts and risks. But for those ventures having sound success in their local markets, accomplishing extra market share is sometimes difficult as well as expensive. Global markets provides an ideal option to increase profitability and growth, where, profitability is so important that it requires effective strategic goals and sound monitoring of those goals and related activities. These strategic goals highly require the business entering in foreign market to have in-depth economic analysis of the new market in order to ensure successful business venture that can accommodate any challenge pose by new market. Therefore, analyzing the risks associated with the new foreign market is very much essential for MNC before entering into the new market (Hisrich, 2010).

This paper basically illustrates what steps must be taken by MNCs to determine the viability of entering the new foreign market. In order to provide this view, the report selected an MNC i.e. Getz Pharma to enter into an India. So, this paper includes the brief summary of Getz Pharma, currency exchange risk and economic variables that have contributed most in exchange rate movements, exchange rate risk associated with transaction; economy; and translation exposure in India, strategies that Getz Pharma can use to manage foreign exchange risk, and risk analysis of India to determine whether Getz Pharma should enter into India or not. Getz is one of the most leading pharmaceuticals in Asia and Middle East; therefore, this MNC is selected to enter into India as well. Getz Pharma is selected to enter into India because this country is emerging as the most favored destination for collaborative R&D bioinformatics; contract research as well as manufacturing; and clinical research as an outcome of increasing conformity with globally harmonized framework like Good Laboratory Practices (GLP). Furthermore, India is poised to be one of the rapidly growing pharmaceutical markets across the globe, mainly because of increasing population; growing incomes; enhanced healthcare infrastructure; health insurance penetration; etc (Khurana & Jaipuriar, 2012). Thus, India is chosen as a new market for Getz Pharma to enter, further economic analysis of India to evaluate feasibility for the firm are analyzed in this report in detail.

Brief Summary of MNC

Getz Pharma (Pvt) Ltd. Is a research driven branded generic pharmaceutical as well as bio-similar corporation with a worldwide outlook. It is the third largest pharma business of Pakistan as well as the leading exporter of Pharmaceuticals from Pakistan. Due to the highest exports in pharmaceuticals, the ...