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GENICON A Surgical Strike into Emerging Markets Case Solution

Solution Id Length Case Author Case Publisher
723 1371 Words (6 Pages) Allen H. Kupetz, Adam P. Tindall, Gary Haberland Ivey Publishing : 910M41
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Genicon, since its inception, was quite proactive in identification of opportunities and new markets. Genicon was successful in countering the competitive environment at USA, but it quickly realized that it would be difficult for them to have sustainable growth. Reason for hurdles in growth at US was the fact that, the health care purchases medical equipment through GPOs. On the other hand, it was very hard for a small company to obtain a contract from GPOs because their financial structure encourages them to purchase equipment from industry giants.

Realizing so, it decided to go international and capture increasing demand there. It became smallest company to sell product to European markets with the assistance of BSI. Moreover, it capitalized on opportunities like MEDICA and set more successes to its name. It identified quite potential markets as they are fast growing economies and also populations with increasing demand for health care offerings.

Exhibit 1 provides the samples for the trocar. It served as the first offering or product of Genicon. It’s widely used instrument for getting access to the abdominal cavity. This product was used to get FDA approval.

Exhibit 2 provides an overview of the markets catered by Genicon. This exhibit reflects the international success of Genicon, as, it covers more than 30 countries around the globe.

Following questions are answered in this case study solution

  1. Evaluate Genicon’s internationalization and choice of markets to date. What do Exhibits 1 & 2 suggest?

  2. What do the Hofstede scores of the four proposed markets suggest? (See Chapter 3) Should culture be a concern to Genicon? Why or why not?

  3. Go to www.transparency.org  and compare and contrast the four proposed markets? Should corruption be a concern to Genicon? Why or why not?

  4. Go to www.doingbusiness.org/rankings and compare and contrast the four proposed markets? Do any of these rankings help your decision? Are some factors more important than others, and if so which?

  5. Go to Business Monitor via your UT Library access. Is political risk a concern for any country?

  6. What additional data would you ideally like to have to help Genicon rank the BRIC markets for entry attractiveness?

Case Analysis for GENICON A Surgical Strike into Emerging Markets

What do the Hofstede scores of the four proposed markets suggest? (See Chapter 3) Should culture be a concern to Genicon? Why or why not?

 

Power distance

Individualism

Masculinity

Uncertainty Avoidance

Long term Orientation

India

77

48

56

40

61

China

80

20

66

30

118

Brazil

69

38

49

76

65

Russia

93

39

36

95

N/

These scores suggest that, how much there is an inequality of power distribution, and as if the with investments are directed to few cities. This causes differentiation in living standards and status and hierarchies being considered more important. On the other hand, these scores also suggest that how much a society is collective with a group and team working and decision making. Moreover, country that is tilted towards being more masculine shows that its society encourages showing of power, success and status. Scores of uncertainly avoidance reflects the country’s interest in dealing with an uncertain future. It reflects how much members or organizations are threatened by unknown future. Last, but now the least, long term orientation suggests how much country is concerned about its long term growth.

Yes, culture should be taken into account as culture shapes the organizational practices and behaviors. Large numbers of organizations, who don’t take the cultural difference into account, fail in their foreign ventures. Especially in case of Asian countries where there is high collectivism and team works. Moreover, their body language and gestures are very important and can be misunderstood easily. These can lead to many organizational problems like lack of motivation and turnover.

Go to www.transparency.org  and compare and contrast the four proposed markets? Should corruption be a concern to Genicon? Why or why not?

The corruption index of transparency international suggests how corrupt countries’ public sectors are perceived. This scale ranges from 0 to 100, with 0 means that country is considered to be highly corrupt, and 100 means it’s quite clean.

Country

Scores

India

36

China

39

Russia

28

Brazil

43

With scores of transparency international, it suggests that Brazil is perceived to be a clean society as compare to other three. After Brazil, ranks, China, but it’s a highly regulated country. While Russia remains at the bottom of the list. These figures do put Brazil at the top but, on the other hand, there is not much difference in China and Brazil.

Corruption is an important aspect for an organization to consider before going into a country. Corruption leads to time delays in getting the deals. Addition to that, it can cost an organization more than expected. Corruption also reflects what procedures organizations need to follow as there can be many shortcuts. The corruption index allows the organization to be proactive and flexible in deals, negotiations and time frame. Corruption index puts the organization to a dilemma of serving interest or being ethical. In corrupted countries, it depends on the organization to take a short route to handle the legal issues to setup the business.

Go to www.doingbusiness.org/rankings and compare and contrast the four proposed markets? Do any of these rankings help your decision? Are some factors more important than others, and if so which?

Doing business reflects the ease of setting up and running the business. Its scale ranges from 1 to 185, with higher the score more conducive the environment is.

Country

Score

India

132

China

91

Russia

112

Brazil

130

 As these scores suggest, India is on the top of the list, with Brazil on second. There is not much different in India and Brazil. Both countries represent attractive environment to conduct business. This scale suggests that China is least attractive option, probable because of strong governmental control.
Yes, indeed these rankings are helpful in deciding the country. Reason being Genicon is a small organization and these factors will strongly affect their business decisions. The Hofstede scores transparency international report and doing business scores puts Brazil to be most attractive option. These scores are constituted as per many factors, but there can certainly be few more factors included. These factors can be getting basics else then just electricity. Moreover, data about skilled workforce or literacy of the people to get qualified employees was also important for carrying out the business etc.

Go to Business Monitor via your UT Library access. Is political risk a concern for any country?

Political risk involves the governmental decisions that can add on to uncertainty for the business. These also reflect the complication of macroeconomic factors and social policies that adds onto the risk of financial, strategic and personal loss of a firm.

Country

Score

India

67

China

69

Russia

61

Brazil

73

The scale for the political risk ranges from 1 to 100; with lower scores reflecting the increase in the political risk. As seen from the scores above, one can say that again Brazil is most attractive opportunity for Genicon to pursue the business. It has the lowest level of political risk. It means the businesses here are more stable because of political policies and decisions. On the other hand, Russia is politically most risky option for Genicon to pursue. This reflects relatively unstable country, where small businesses like Genicon can suffer quite losses due to political uncertainty. However, china also reflects a relatively stable political country. One thing to mention here is; political risk never means only on a democratic country is stable, but highly regulated countries like china can have a lower political risk. More the political risk in that country is, more carefully an organization will have to plan, and it will have to be more cautious about risk.

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