Please summarize a paper according to the content of my previous homework

Please summarize a paper according to the content of my previous homework（You can add whatever you need）：

Target country：USA

Product: Chinese Medicine

analyzes the market and country you selected to develop or introduce a new product or service. You will tie your research homework together to support your final recommendation is through a comprehensive case analysis paper. You may wish to use the rubric as your table of contents to ensure you cover all the areas:

Criteria

Executive Summary

· Why you selected the product and country

Country and Product Background

Page 8-10

Macro Environment

· Cultural Discussion

· Demographics/Economic Outlook

· Political/Legal Considerations

· Trade & Financial Considerations

Conclusions

· Pull out supportive facts from your paper that leads the reader to support your final recommendation.

Recommendation

What is your recommendation to your boss? Defend you position to keep your job! ;-)

Assignment 1: Country/Product Selection Abstract

A news report from Sina News (one of China's largest electronic news publishing houses) on June 3 showed that Xiaopeng, China's largest new energy vehicle manufacturer, faces the risk of investors withdrawing capital.

The reason is Xiaopeng's R&D investment has not yet been converted into revenue, the company's gross profit margin in 2020 is only 4.6%, which is a significant gap between Weilai (11.5%) and ideal (16.4%). High operating expenses and low gross profit margins make Xiaopeng the company with the worst profitability and the highest bicycle operating loss among the new forces. The April sales list of new energy vehicles showed that the BMW iX3 ranked No. with 3552 vehicles. In the 15th place, Xiaopeng P7 and Weilai EC6 ranked 16th and 18th with 2,995 and 2,779 respectively.

One of the traditional auto giants: BMW, before it has officially launched its efforts, it has caught up with the flagship models EC6 and P7 of Weilai and Xiaopeng with its iX3, which is not mature. The counterattack capability of traditional auto giants It can be seen. In the future, once the Volkswagen ID series is on the right track, the new domestic car-making forces will probably face greater impact.

It is worth noting that Xiaopeng Motors sold 5,147 units in April, a month-on-month increase of only 0.9%. Weilai Automobile saw a year-on-year decline of 2.1%. Obviously, as competition intensifies and the base increases, the myth of high growth among new forces no longer exists.

Compared with the third-party car-building corps composed of high-tech Internet companies, the concepts, technologies, and first-mover advantages of the new car-building forces are no longer obvious. When Xiaopeng and other new forces have changed from challengers of traditional fuel vehicles to challengers in the current pattern of new energy vehicles, the change in roles has also accelerated the destruction of the valuation of new forces. This makes investors hesitate whether they will continue to invest a large amount of money into new energy automobile companies as they are now.

Xiaopeng’s financial statements showed：Xiaopeng Motor’s total revenue in the first quarter was 2.951 billion yuan, an increase of 616.1% over the same period last year. Among them, thanks to the increase in new car deliveries, Xiaopeng Motors' sales revenue reached 2.81 billion yuan, an increase of 655.2% over the same period last year. In addition, the company confirmed the revenue of 80 million yuan from autonomous driving software for the first time.

However, despite the historical highs in revenue, vehicle delivery and other data, the "software fee" model was also highly publicized. Xiaopeng Motors still closed the next day with a -4.93% drop, with a closing price of 23.54 US dollars, which once again set a new low for the year. Although the share price of Xiaopeng Motors rebounded in the next few days, since 2021, the share price of Xiaopeng Motors has fallen by more than 50%.

In my opinion, in the case of a record high sales volume, the reason for the continued decline in the stock price is that it has not done a good job of cost control: Affected by the sharp increase in operating expenses, Xiaopeng Motors has a net loss of 787 million yuan, which is higher than the loss of 6.5 million in the same period last year. 100 million yuan. At the same time, R&D investment is another major expense. With the growth of R&D personnel and the increase in development expenses related to the new P5 model, Xiaopeng Automobile’s R&D expenditure in the first quarter reached 535 million yuan, a year-on-year increase of 72.2%.

Therefore, in summary, the reason for the decline in stock price is that although Xiaopeng Motors' revenue has increased by more than 6 times, the company's losses are still increasing, which has aggravated investors' concerns that the company still has no hope of reaching the break-even point in the short term. , This has led to the constant pressure on Xiaopeng Motors’ investors because they get rid of this situation and recover their investment income as soon as possible.

Assignment 2: Culture & Ethics

As a company that exports Chinese medicinal materials, in addition to respecting local culture, laws, and ethics, it also needs to have higher standards for itself, because medicinal materials are a precious social resource.

The following is what I think a medicinal material company, especially a Chinese medicinal material company while gaining profit and occupying the market, the most important thing is to bring health to patients. As a Chinese medicinal material company, the main function of our medicinal materials is a conditioning, and the effect is slightly slower, but the side effects of herbal medicines are small, and there is little harm to the human body without subsequent harm. The following are the specific cultural, ethical and social responsibilities that I think companies need to comply with:

Corporate culture:

1. Focus on healthcare and patients-everything we do is for the benefit of patients. 2. Integrity-We should be ethical, honest and respect others in everything we do. 3. Independence-independent decisions made by all parties should be protected from adverse effects. 4. Legality-everything we do should be justified, legal, and uphold these spiritual principles and values. 5. Transparency-We have open ideas and open behaviors, while respecting legitimate business ideas and intellectual property rights. 6. Responsibility-We are willing to take responsibility for our actions and relationships.

Ethical and social responsibility:

In terms of drug marketing, companies should promote, sell, and distribute drugs in an ethical, objective, balanced and responsible manner, and comply with relevant laws and regulations. The information on promotional materials should help evaluate the pros and cons of related drugs and their use.

Then, we need to carry out education and training on the safe, correct and effective use of medicines. Finally, we should abide by relevant business ethics.

Assignment 3: International Finance

What financial considerations should you ensure you evaluate for proceeding with your concept?

As a multinational trading company, it needs to always consider the habit of conducting business activities in the target market country, and it needs to abide by local fiscal policies and related laws and regulations.

In addition, at the same time, the following points need to be considered in terms of financial:

1. Keep a Line of Credit, in the early stage of business establishment, you may need to obtain funds other than the initial investment to maintain business development. Credit cards and commercial credit lines are the two most common forms of revolving credit, each with advantages and disadvantages. When cash is tight, having an available line of credit is essential to fill the gap. Therefore, it is necessary to maintain good credit and not excessively consume one's own reputation.

2. Minimize overhead

Whether a company can be profitable is very important, and everything spent in the company will eat up profits. Prioritize procurement to minimize costs. In addition, consider labor costs, utilities, property-related expenses, and other operating costs. Find ways to reduce expenses so that you can maximize profits

3. Maintain cash reserves

Your initial savings will quickly dry up. You can rely on credit lines and loans, but it is usually better to have liquid assets.

Is it more advantageous for you to work in US dollars or should you use the host country’s currency?

As a Chinese herbal medicine multinational company, I initially thought that USD is the best settlement method. Because of its convenience, every country uses USD for settlement. However, due to the difficulty of exchanging foreign exchange between the United States and China and the continued depreciation of the U.S. dollar, I think it is currently in other words, it is better to use renminbi for settlement, because the current value of renminbi is relatively stable, and there is no risk of currency exchange in China, which is a conservative choice. In the future, when the international political situation is stable, if necessary, it will be settled in US dollars, which is directly linked to the price of gold, so most settlements are safe, reliable, fast and standardized.

Assignment 4: International Finance Mitigation

Internationally, China, as a traditionally conservative country in its impression, has been promoting trade policy reforms, reducing trade barriers and administrative interventions, rationalizing the government’s responsibilities in foreign trade management, and promoting trade policy reforms after joining the WTO in 2001. Government actions will be more open, fair and transparent, and promote an open economy. As the world's largest exporter, China has also implemented many policies in recent years, greatly increasing its trade with other countries. In terms of policy, it is actually very convenient to do export trade in China.

As a company that exports traditional Chinese medicine, only in terms of the pharmaceutical industry, especially the export of raw materials for medicinal materials, China's export of raw materials for many years has been ranked first in the world, and it is the country with the largest preparation production capacity and one of the main production bases for small and medium-sized medical devices. . In recent years, the endogenous motivation of Chinese pharmaceutical companies to participate in international division of labor and cooperation has become stronger, and the breadth and depth have been continuously expanded, playing an increasingly important role in the global pharmaceutical market.

I think there are still the following risks: In particular, the new crown epidemic will have a greater impact on international trade, industrial chain extension, supply chain stability, and investment cooperation. From the perspective of internal factors, China is not yet a member of the International Pharmaceutical Certification Cooperation Organization (PIC/S). There are large differences in the procedures and document submissions of domestic and foreign production and registration.

In this regard, I think the most critical step is to improve overseas registration and certification and lower the barriers to entry. The particularity of the pharmaceutical industry determines that product quality, registration and standard integration are the primary thresholds for internationalization. A good quality system and high-end market certification will lay a solid foundation for companies to enter the international market, and it is also a necessary prerequisite for entering the international market.

Assignment 5: Managing an International Business

As a traditional Chinese medicine company, since the 1990s, European and American countries have formed a trend of returning to nature, and natural botanicals have received increasing attention worldwide. Traditional Chinese medicine has been accepted by more and more people in the world with its unique scientific theoretical system and unique curative effect.

Before formulating the strategy, first conduct a swot analysis of the company's current situation:

Strength: Abundant medicinal resources are my other big advantage, and it is also the capital and foundation for the development of the Chinese medicine industry. In terms of medicinal resources, there are more than 10,000 kinds of Chinese medicines, including 11,146 kinds of botanical medicines, 1581 kinds of animal medicines, and 80 kinds of mineral medicines, including more than 320 commonly used medicines.

Weak: At present, most of the Chinese medicine products exported by the company are simply processed by raw materials, and the technological content is generally low.

Opportunity: The current trend of people buying Chinese medicinal materials is more towards light processing, keeping the original of the medicinal materials, which is consistent with our company's business

Threat: Japanese and Korean traditional Chinese medicine production is very mature, and has its own unique industrial system, and it occupies more market share in the US market

Now I can make a overall strategy base on upon analysis:

Enterprise level: Establish a good brand image, and the company is positioned to sell healthy, original and natural Chinese medicinal materials. Looking for local partners in the United States, familiar with and infiltrating the local medicinal material market. Look for famous American sports stars as spokespersons to attract people's attention to the company's Chinese herbal medicines.

Business level: With middle-aged and elderly people as the main target group of the business, experience areas are opened in retail pharmacies such as CVS and Walgreen. Set up a local pharmacy and cooperate with local medical institutions. And mainly promote original medicinal materials, publicizing the health and nature of medicinal materials

Functional level: Do not take sales as the main goal during publicity, focus on the health effects of popular science Chinese medicine, let Americans know more about Chinese medicine, and know the benefits of Chinese medicine for everyone, so as to attract customers to take the initiative to understand the product, and ultimately love Chinese medicine

Assignment 6: International Organization and Culture

As a Chinese medicinal material company, it is inevitable to be labelled as China when conducting cross-border trade, because in the development process, it is necessary to analyze the influence of Chinese culture on the company, remove disadvantages, and retain advantages.

With more and more attention to scientific management today, the influence of traditional Chinese culture and way of thinking on corporate management has become more and more important. The more important.

If we want to develop and prosper the corporate management methods suitable for China, we must absorb the outstanding parts of domestic and foreign corporate culture on the one hand; on the other hand, we must inherit our good traditions and innovate in the process of integration. Due to the different cultural backgrounds of the East and the West, there are some differences in the philosophy of business management.

For example, Eastern companies put more emphasis on the management of "human nature", such as emphasizing the role of interpersonal relationships, qualifications, group awareness, loyalty, and cooperation. These two cultures can learn from each other and learn from each other's strengths. In the process of exploring a modern enterprise management method suitable for China, traditional culture should be regarded as an important factor and an important component to realize the continuous promotion of changes in management methods.

Cross-cultural team management

In order for everyone in the team with different cultural backgrounds to adapt to and like the atmosphere of the team, I think the following steps are needed:

Cultural education

That is, experts are invited to introduce the connotation and characteristics of the culture of the host country through lectures, guide employees to read books and materials about the culture of the host country, and provide them with mental preparation for working and living in the new cultural environment.

Environment simulation

That is to simulate the cultural environment of the host country from different sides through various means. Present to employees the situations and difficulties that may be encountered in work and life in different cultural environments, so that employees can learn how to deal with these situations and difficulties, and consciously think and act according to the characteristics of the host country’s culture to improve their adaptability.

Cross-cultural studies

That is, through the form of academic research and cultural exchanges, organize employees to explore the essence of the host country's culture and its impact on the thinking process, management style and decision-making methods of managers. This training method can encourage employees to actively explore the culture of the host country and improve their ability to diagnose and deal with difficult problems in the integration of different cultures.

language training

Language is a very important part of culture. Language exchange and communication are the most effective way to improve the ability to adapt to different cultures. Language training not only enables employees to master language knowledge, but also familiarizes them with the unique expression and communication methods in the host country’s culture, such as gestures, symbols, etiquette and customs, etc., organizes various social activities, so that employees and personnel from the host country have a better understanding More opportunities for contact and communication.

Assignment 7: Managing International Marketing and Operations

standardization or customization?

I will adopt a customized marketing strategy. For Chinese medicinal materials, the most important point is to use customized combinations of different drugs for each person's physical characteristics. The customized content includes: dosage, variety, and time of medication. This is also one of the great advantages of traditional Chinese medicine. It can adopt completely different prescription strategies for different groups of people.

I think the most important things in 4p is the product and price

1. Product: accurate market positioning

From the perspective of consumer demand, the health problems of the elderly are mainly manifested in physical problems. Sometimes minor problems such as fatigue or digestion are not worth going to the hospital, but they really cause great distress to people. These problems are difficult to solve by traditional medicine. Chinese medicinal materials have successfully solved these problems. Using medicinal herbs as a carrier, the efficacy of Chinese medicine can exert its unique effects on the soft tissues of the body, which just fills the gap in the market for pharmaceutical products. .

There is a clear difference from the common medicinal materials that use Western medicines with greater side effects as their selling points. The uniqueness of Chinese medicinal materials makes it impossible for other competitors to copy or plagiarize. It can be seen from the sales terminal that even though Chinese medicinal materials are high-end medicinal materials, the consumers who buy Chinese medicinal materials in stores are often not white-collar workers or fashionable people with strong spending power, but middle-aged people who are more likely to suffer from health problems. Elderly consumers. Therefore, in a sense, consumers buying Chinese medicinal materials are no longer simply buying daily chemical products, but more seeking health care products or pharmaceutical products that solve health problems.

2. Price: high-end price of high-end products

In the medicinal material market, moderate prices are an important consideration for low- and middle-income consumers, but the moderate or reasonable price comes from consumers' psychological equivalence of the value and price of medicinal materials. Chinese medicinal materials are deeply rooted in people’s minds as a health care product that solves oral problems. The price of more than 20 yuan is not a problem. When they are sold too cheaply, consumers question their functions. The unique effects of Chinese medicinal materials are reflected in the high price. The unique product strength provides support for its high prices.

Biggest challenge

I think the biggest difficulty is that the transportation and preservation of fresh herbs requires stricter conditions and costs, and if they cannot be sold in time, these goods will have no use value, making the cost difficult to control, and if the cost is not controlled , Then the profit will be difficult to estimate, which is a huge challenge for the entire international campaign