Eco/Hc561 Essay

Submitted By sparkle1169
Words: 1912
Pages: 8

International Business Proposal

Angela Ayers, Jackie Gordon

Hilary Lapham, Susan Long

ECO/HC561

University of Phoenix

Dr. Eric Brown

November 22, 2011

International Business Proposal

Five years into the Plasma for Pay adventure has once again brought a new opportunity for the company, global expansion. Plasma for Pay is looking into expanding their plasma donation centers into Australia. The company has pre-determined the market and population in Australia realizing that the need for these services in Australia is in high demand. The country does participate in plasma donation efforts, but the demand of the service highly outweighs the current supply and current establishments that offer these services. Plasma for Pay is going to monopolize on these facts to expand the life-saving business. A few minor details still require consideration before moving forward. The following paragraphs will show in detail how Plasma for Pay plans to combat the last remaining issues. Global expansion is a highly exciting business venture. Australia is the first global market and if all goes well, other areas are in the identification process.

Pricing

The United States collects 70% of the total plasma donations worldwide and is totally self-sufficient in gathering the whole blood and transforming the blood into useful by-products (Flood, et al. 2006). In the next decade the demand for plasma and whole blood products like those supplied by Plasma for Pay is anticipated to increase by 65% by the year 2016 (Flood, et al. 2006). Australia is a unique country and has a unique bond with their blood and plasma donors. Australian donors come to the clinics on a voluntary basis and give the live-saving blood as a gift of health and well-being to their fellow Australians (Flood, et al. 2006). This is also a major benefit for Plasma for Pay meaning that by coming into the country and offering monetary compensation for their time and services anticipates a growth in donors. Studies in Australia have shown that without a dramatic change, the donor pool is not great enough to accommodate the increasing need for blood products like plasma; this is where Plasma for Play becomes important.

The value of the Australian dollar is slightly higher than the value of the United States dollar; $1 United States dollar is equal to $1.00134 Australian dollar (XE, 2011). Currency translation is relatively identical causing Plasma for Pay to look at the cost of living in Australia versus the cost of living in the United States as the determining factor in pricing for donation. The cost of living in America is lower than the cost of living in Australia (Mark, 2010). This means Plasma for Pay may need to adjust their price to accommodate the increase in cost of living. This is a decision that will be decided during the trial phase of the grand opening in Australia. Being that Australians donate voluntarily, the price paid in the United States of $40 per visit is anticipated to be sufficient compensation and to bring Plasma for Pay to the top of the global marketplace.

Employment Opportunities

The language in Australia is English, so Plasma for Pay will hire both domestically and outside of the country. Plasma for Pay has offered several people from our donation centers in the United States to come to Australia to oversee and to make sure that the center is off to a good start. Hiring domestically is a simple theory: local people know best the host country's culture, language, and work ethic. Thus, they are the ideal candidates for management (International Business, 2011). It would also be wise for Plasma for Pay to hire domestically because they need people to be knowledgeable about international exchange rates and the legal-political and sociocultural traits of other countries (International Business, 2011).

Entry Barriers

Barriers to entry are circumstances particular to a given industry that create disadvantages for…