PHAR 4105: Globalization and Pharmacy Practice Management

10 Questions

What is the primary purpose of a comprehensive plan for entering a new market?

To outline the steps to introduce products or services while considering market factors

Why might a company enter a new market?

To expand the customer base and increase sales

What is the main goal of conducting a SWOT analysis?

To develop strategic goals and operations

What is a key consideration when entering a new market?

All of the above

What is a reason for a company to enter a new market when growth opportunities are exhausted in the current market?

To expand into new markets and increase sales

What is a component of a SWOT analysis?

Strengths and weaknesses

Why is it important to consider market trends when entering a new market?

To identify opportunities for growth

What is the benefit of conducting a SWOT analysis?

It helps companies develop strategic goals and operations

What is a key factor to consider when entering a new market?

Regulatory requirements

What is the ultimate goal of entering a new market?

To boost sales and increase customer base

Study Notes

Globalization

Defined as the growing interdependence of the world's economies, cultures, and populations, brought about by cross-border trade in goods and services, technology, and flows of investment, people, and information.
Has the capacity to alter the nature of economic activity within a nation, promote cultural change, and foster cooperation and tolerance.

Significance of Globalization

Promotes innovation through international competition.
Solves economic problems, promotes free trade, and spurs economic development.
Encourages positive trends in human rights and the environment.

Drivers of Globalization

Adoption of trade liberalization policies by global governments.
Rapid advancements in technology.
Increased mobility of persons and commodities due to more efficient transport systems.
Cross-pollination of cultures and exchange of ideas, customs, and traditions.

Advantages of Globalization

Promotes shared cultural understanding.
Encourages positive trends in human rights and the environment.

Disadvantages of Globalization

Destabilizes markets, damages the environment, and lowers living standards.
Facilitates global recessions, damages cultural identities, and increases the likelihood of pandemics.

Dimensions of Globalization

Political: considers the effect of intensification and expansion of global political relations.
Economic: reflects the extent of cross-border trade and investment and revenue flows in relation to GDP.
Social: refers to the impact of globalization on the life and work of people, on their families, and their societies.
Technological: the increasing speed of technological diffusion across the global economy.
Cultural: focuses on the tension between cultural sameness and cultural difference.

Borderless World

A concept of globalization where goods, services, technology, information, and capital flow through borders from one nation to another.
Challenges of managing in a borderless world include cultural differences, language barriers, and communication, as well as legal and economic risks.

Market Entry Strategy

A comprehensive plan that outlines the steps a company will take to introduce its products or services into a new market, considering factors such as competition, target customers, market trends, and regulatory requirements.
Why enter a new market: to increase the customer base and boost sales, growth opportunities, and to reduce diversity risk.

SWOT Analysis

A method for identifying and analyzing internal strengths and weaknesses and external opportunities and threats that shape current and future operations and help develop strategic goals.
Consists of Strengths, Weaknesses, Opportunities, and Threats.