- JOSEPH’S COLLEGE OF COMMERCE (AUTONOMOUS)
END SEMESTER EXAMINATIONS – SEPT / OCT. 2014
B.B.M. – V SEMESTER
INTERNATIONAL BUSINESS
Time: 3 Hours Max Marks: 100
Section –A
- Answer All the Questions. Each carries 2 marks. (10 ×2 =20)
- Define Turnkey Projects.
- Expand the terms : FDI, TNC.
- State any two characteristics of International Marketing.
- What is Standardization?
- Make a note on “Dumping”.
- What is “Licensing”?
- “Exim Bank” Comment.
- What is “Organizational transformations”?
- What are“International Corporations?”
- What do you mean by the “Greenfield strategy”
Section –B
- Answer Any FOUR Each carries 5 marks. (4 ×5 =20)
- Explain the features of Globalization.
- What is franchising? State features of Franchising?
- Discuss about theory of absolute cost advantage.
- Write a note on Contractual mode of entry
- Highlight the reasons for domestic companies to become global.
- Draft a brief note on Virtual International Business
Section – C
- Answer any THREE Each carries 15 marks. (3×15=45)
- You are the CEO of a company. Your company wishes to enter the Global Market, in this regard sketch out Comparisons of different modes of entry.
- What are the ethical issues an international manager has to consider in an international business?
- Describe the International marketing mix.
- Explain the Organizational design and structure of MNCs.
- Elucidate Approaches and theories of International Business.
Section – D
- Case study – Compulsory question. (1 ×15 =15)
Read the following case and answer the questions given at the end:
22.
Pharma Off shoring Market: A Bright Future for India
Business Process Outsourcing, Knowledge Process outsourcing and Legal Process Outsourcing have dominated Indian scene in the current decade. During the close of current decade India will witness an another major sunrise segment in the business, Pharma off shoring. Pharmaceutical offshoring in the country is poised to become a $ 2.5 billion, nearly Rs. 12,000/- crore opportunities, according to Zinnov Management Consulting. A beneficiary segment, the already booming clinical trials industry, alone will set to become a $ 608 million (nearly Rs. 3,000 crore) industry by 2012.
RISING R & D COST ABROAD
A key driver of off shoring or outsourcing is the rising cost of R & D which is forcing majors in the US and Europe to look for low cost R & D destinations such as India, China and other Asian countries. On the uptrend is the offshoring of processes of the entire drug development value chain. Other areas are clinical trials, discovery research, clinical data management, bio-statistic, medical writing, marketing and sales.
TALENT AND COST RELATIONSHIP
Off shoring itself is aided by the rich pharma talent pool of 13.5 million science graduates and the spread of pharma educational institutes. There may be a demand for 1.6 lakh pharma translators by 2010, spurred by increased number of clinical trials that global majors are conducting in the country.
Another incentive is the cost of basic production in India, which is up to 50% lower than in the US FDA approved plants. It can be achieved at 30-50% lower costs than in the established markets in Europe. Contract manufacturing worth $ 680 million was done in India in 2008 and may grow at 15%.
Tax incentives, though laws on data security and intellectual property related issues have also helped along with approvals of pharma SEZs, all enabling the growth of the pharma industry, according to the report of Indian Pharma Off shoring Landscape(POL).
Zinnov’s CEO, Mr.PariNatrajan said, “Today, pharmaceuticals space is one of the most happening industries globally and India has the potential to become one of the key global players and also the backbone of offshore services. The influx of outsourced work from global pharmaceutical companies has given the necessary impetus for the creation of pharma SEZs which would be one of the key drivers of outsourced pharmaceutical services growth in the coming years.”
The domestic drug industry, growing at over 7% CAGR is heading towards a $12 billion, nearly Rs. 54,800 crores approximately. By 2010, it is expected to shift from being domestic led to exports driven. All Indian companies such as Cipla, Torrent, Cadila, Himalayas, Dr.Reddy’s Lab and Arabindo Pharma are physically present in every continent in the world. This has brought goodwill through Indian capability in this space.
Mr. Rishikesh Mandilwar, the Director, Zinnov, said, “Clinical trials today dominate the off shoring market landscape followed by clinical data management. Marketing and sales is the another key component of the drug development value chain and is currently a $ 100 million market, which is expected to grow at a CAGR of 36% till 2012.”
Yet, Indian Pharmaceutical companies need to penetrate further in the generics market in the regulated countries and also increase their investment in R & D to gain expertise in a higher value chain process. In the BPO and KPO segments, India was well prepared to focus well before other counterparts and grabbed the business opportunities against its counterparts. A number of drivers such as policies, education, business environment, infrastructure, stability of the government and payment modes play a catalytic role to boost this sector in India. The concern is, “Will India maintains the current dominant position consistently for the whole decade next?”
Questions:
a. Discuss the competitive advantages of India in pharma off shoring markets.
b. Name major potential players who can succeed in such an avenue.
c. Discuss various strategies that can be adopted to win offshoring business.
d. Briefly mention various functions involved in pharma off shoring
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