What is a good direction/approach to this assignment?
Your proposal to expand into three countries was approved by the CEO. Now you have to decide on a strategy - will PM Company simply sell its products (trade) or expand its markets via investment? Choose one international trade and one international investment strategy to research and recommend. Research the advantages and disadvantages of your chosen strategies. Next, develop a set of recommendations for PM Company. These recommendations should be prioritized and should include time frames for their implementation. Accompanying the recommendations should be the rationale for the international market expansion strategy recommendation chosen and just a few bullet points on which international market expansion strategies would probably not be used by PM Company and why. Since you will be presenting this to the CEO and senior management, use Powerpoint slides with notes.© BrainMass Inc. brainmass.com October 16, 2018, 4:54 pm ad1c9bdddf
THE INTERNATIONAL TRADE SELECTED IS CLINICAL LAB-BASED SERVICES NOT INTERNATIONAL INVESTMENT
The healthcare services sector consists of the total revenues generated through the sale of dialysis products and clinical laboratory-based services, valued at manufacturers selling price with any currency conversions calculated using constant 2004 annual average exchange rates.
ADVANTAGES of investing in clinical- lab testing.
* The world's spiraling population and increasing standards of living have driven significant growth within the global healthcare services sector, as consumers have demanded better medical care to support their improving lifestyles.
* One of the primary goals of many countries is to develop a comprehensive, modem healthcare system for all citizens, fueling revenues within the global healthcare services sector. Many countries may develop their own facilities driving out PM.
* To succeed in this climate, organizations need to be more innovative than their competitors, a factor that has driven significant expenditure in recent years. If PM is not innovative enough there could be losses.
ADVANTAGES OF THE STRATEGY
The world's spiraling population and increasing standards of living have driven significant growth within the global healthcare services sector, as consumers have demanded better medical care to support their improving lifestyles. As a result, one of the primary goals of many countries is to develop a comprehensive, modern healthcare system for all citizens, fueling revenues within the global healthcare services sector, which consists of the total revenues generated through the sale of dialysis products and clinical laboratory-based services.
The healthcare services sector reached a value of $125.8 billion in 2004, having grown with a compound growth rate (CAGR) of 5.7% in the 2000-2004 period. In 2003, revenues from healthcare services amassed $118.5 billion, signifying that the sector grew by 6.2% in 2004. The sector is expected to carry its strong performance into the next five years, buoyed by the rapid economic progression within the Asia-Pacific region. An anticipated CAGR of 5.5% for the five-year period 2004-2009 is expected to carry the sector to a value of $164.4 billion by the end of 2009.
The leading revenue source for the healthcare services sector was the clinical laboratory-testing segment, which generated total revenues of $106.3 billion in 2004, equating to 84.5% of the sector's total revenues. Predictive, genetic testing and new diagnostic technologies explain much of this segment's growth, though the availability of home testing kits should also be taken into account. Laboratory tests drive a large part of the clinical decisions doctors take, from diagnosis through to therapy and prognosis. Given the crucial role that test data plays in medical decision-making, it is no wonder that this area dominates the sector. Dialysis products generated the remaining revenues for the sector in 2004.
The US is the dominant player in the global healthcare services sector, generating total revenues of $53 billion in 2004, equivalent to 42% of global revenues. Europe's share of the healthcare services sector is 25.5%, whilst the Asia-Pacific possesses a 18.9% share of global revenues. Asia-Pacific is expected to be the sector's primary driver of growth moving forward, owing to the region's spiraling population and the rapid economic development of its emerging markets.
The global health care services sector grew by 6.2% in 2004 to reach a value of $125.8 billion.
The compound annual growth rate of the sector in the period 2000-2004 was 5.7%.
The sector has experienced a period of increasing strength. The annual sector growth rose from its low of 4.9% in 2001 to a high of 6.2% in 2004.
Global Health Care Services Sector Value
Year Market Value Growth
2001 105,800,000,000 0.049
2002 111,900,000,000 0.058
2003 118,500,000,000 0.059
2004 125,800,000,000 0.062
The leading revenue source in the global health care services sector is clinical lab testing, which accounts for 84.5% of the sector's value.
Dialysis products generate the remaining 15.5% of the sector's revenues.
Global Health Care Services Sector Segmentation - Value, 2004
Clinical lab testing 0.845
Dialysis products 0.155
In terms of value, the US accounts for 42.1% of the global health care services sector.
In comparison, Europe represents 30.4% of the global sector's value, while Asia-Pacific accounts for a further 19.1%.
Global Health Care Services Sector Segmentation - Value, 2004
Rest of the World 0.083
The rationale for international market expansion strategy and investment:
Increasing competition and accelerating changes characterize today's healthcare business environment. To succeed in this climate, organizations need to be more innovative than their ...
Cite the pros of investing in clinical- lab testing.
In order to help us pursue this topic, let first consider thr following question: Why is it important to identify and assess IT risk before developing IT internal controls?
For effective control, management must also develop, enforce, and adhere to the control systems in place. We noted in previous weeks that companies can reduce the risk of compromising information captured in their AIS through control systems. As discussed in Hunton, Bryant and Bagranoff, in recent years, there is an increased emphasis in risk based audit model in contrast to control-based models. This is a very interesting shift.
In order to help us pursue this topic, let first consider the following question: Why is it important to identify and assess IT risk before developing IT internal controls?
Please search for a filing on Diagnostics Inc at http://sec.gov/edgar/searchedgar/companysearch.html, I also attached their k10 locate the most recent 10k report and share your thoughts on the independent auditor's assessment of the internal controls of the company.View Full Posting Details