PHAR 4105 Managing in a Global Environment.pdf

1 Managing in a Global Environment PHAR 4105 COMMUNITY PHARMACY PRACTICE MANAGEMENT 19TH September 2023  2...

1 Managing in a Global Environment PHAR 4105 COMMUNITY PHARMACY PRACTICE MANAGEMENT 19TH September 2023  2 To define the term globalization and list its advantages, disadvantages an drivers. To discuss the dimensions of globalization. To discuss the term “Borderless World” and its Objectives implications to management. To define the term market entry strategy and understand its significance to business operations. To briefly describe useful market entry strategies for international markets. To use the SWOT analysis as a tool in strategic planning.  3 Globalization  4 Globalization Defined Describes 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.  5 The significance of Globalization Has the capacity to alter the nature of economic activity within a nation. Promotes cultural change of ideas which in turns foster cooperation and tolerance thereby facilitating peace Promotes innovation through international competition. 6  7 Adoption of trade Rapid liberalization advancements in policies by global Drivers of technology governments Globalization Increased mobility of persons and commodities due to more efficient Cross pollination of cultures → exchange of ideas, customs and transport systems traditions  8 Solves economic problems Promotes free trade Advantages of Spurs economic development Globalization Encourages positive trends in human rights and the environment Promotes shared cultural understanding  9 Disadvantages of Globalization Destabilizes Damages the Lowers living markets environment standards Increases the Facilitates global Damages Cultural likelihood of recessions identities pandemics  10 Dimensions of Political Globalization Technological Globalization Social Economic  11 Political Considers the effect Global leadership Considers: size, rate of intensification and needs to be of growth, complexity expansion of global considered of nature. political relations  12 Economic Reflects the extent of cross- border trade and investment and revenue flows in relation to GDP The emergence of a new global The internationalization of trade The changing power of The enhanced role of international as well as the impact of economic order and finance transnational corporations economic institutions restrictions on trade and capital transactions  13 Social Encompasses security, Refers to the impact of The impact of globalization culture and identity, globalization on the life and on employment and inclusion or exclusion and work of people, on their working conditions is also the cohesiveness of families, and their societies. considered families and communities.  14 Technological The ways in which new technologies penetrate The increasing speed of individual nations is heavily technological diffusion across affecting their actual and the global economy potential economic development.  15 Cultural Culture is the ideas, Focuses on the Explores the customs, and social tension between intensification and behaviour of people or cultural sameness and expansion of cultural society. cultural difference flows across the globe  16 A concept of globalization A Borderless where the goods, services, technology, information, capital World flow through the borders from one nation to other.  17 PRODUCED IN ONE COUNTRY MARKETED IN THIRD COUNTRY Products in a Borderless World ASSEMBLED FINANCED IN SECOND FROM COUNTRY FOURTH COUNTRY  18 Challenges of CULTURAL DIFFERENCES LANGUAGE BARRIERS AND Managing COMMUNICATION in Borderless World LEGAL AND ECONOMIC RISKS REGULATORY FRAMEWORKS  19 The Effect of Global Environments on the Business  20 Cultural Differences Communication Workplace Organizational Etiquette Hierarchy  21 Socio-economic Differences Economic stability Education access Healthcare access Built Environment Social and and quality and quality community context  22 Political/Legal Differences Bureaucracy Corruption level Freedom of the press Tariffs Trade control Government Stability  23 MARKET ENTRY STRATEGIES  24 What is a Market Entry Strategy ? A comprehensive plan that outlines the steps a company will take to introduce its products or services into a new market while considering factors such as competition, target customers, market trends, and regulatory requirements.  25 Why enter a INCREASE THE CUSTOMER NO DIVERSITY RISK BASE AND BOOST SALES new Market? GROWTH OPPORTUNITIES IN THE CURRENT MARKET IS EXHAUSTED  26 Global Market Entry Strategies 27  28 Strengths Weaknesses SWOT ANALYSIS Opportunities Threats  29 SWOT Analysis A method for identifying Defined 28 and analyzing internal strengths and weaknesses and external opportunities and threats that shape current and future operations and help develop strategic goals. 30  31 The End