Health Care and Egypt

Quest Diagnostics Economic Support Social Support Technological Support Opportunity Supporting Client's Operational Needs Threat Factors and Trends Iran Risk of maintained and possibly new U.S. sanctions Structural Weaknesses in economy Social threats Egypt Political Instability Economic Threats Poor technology and brain drain Opportunity and Threat Factors/Trends Country Level Analyses Quest Diagnostics has its headquarters positioned in Madison and its main operation encompasses the provision of diagnostic information. The company's operations encompass two arms.

One, Diagnostics Solutions Group provides resolutions for insurers, and also the firm's health information technology operation that provides resolutions for healthcare providers. The other arm is Diagnostic Information Services, which nurtures and offers diagnostic testing information and services. The two countries in this essay is Iran and Egypt and the analysis encompasses a PESTEL framework of both nations. From the perspective of Iran, opportunities include political support through the reelection of Hassan and Rouhani, securing the nuclear deal and continuing reign of Ali Khamenei.

There is also economic support through the revitalization of business with foreign nations in different fields including healthcare. Third, there is also the increasing population and lack of proper healthcare facilities and provision draws the populace to products and services provided by Quest diagnostics. In addition, there is the high number of young population that are educated and expansion of the technological sector. From the perspective of Egypt, opportunities include new political ties between President Donald Trump and President Abdel Fatah el-Sissi increasing investment and trade agreements.

Secondly, there is economic reform through the institution of policies and investments and lastly, Egypt is the trend setter in the region and is embracing health information technology. In addition, there is room for technology enhancement and development in the nation. At the same time, there are threats that are faced in both nations that is expected for prospective businesses such as Quest Diagnostics to face. From Iran's perspective, the most significant risk encompasses the risk of maintain and prospectively new U.S. sanctions.

Infringement of such sanctions will only create greater issues and lack of foreign investment and poor ties with the United States. Secondly, there is structural Weaknesses in the economy, making it hard to have successful businesses. Lastly, social threats in the aversion of the Iranian people to western companies. In contrast, with respect to Egypt, there is political instability through increased numbers of terrorism incidents. This poses the greatest threat and can deter businesses from entering the market.

Secondly, there are economic threats that create harsh conditions for businesses to prevail. Lastly, there is brain drain and poor technology. Taking all aspects of opportunities and threats into consideration, the recommendation made for Quest Diagnostics is for the company to invest and enter the Iranian market. It offers a more feasible investment opportunity compared to Egypt. Introduction Quest Diagnostics Incorporated is a company that provides diagnostic information services with its center of operations situated in Madison, New Jersey. Quest Diagnostics has two main business operations.

To begin with, the company's Diagnostics Solutions Group takes into account its risk evaluation services business, which provides resolutions for insurers, and also the firm's health information technology operation that provides resolutions for healthcare providers. Secondly, there is the Diagnostic Information Services business that cultivates and renders diagnostic testing information and services, rendering acumens that endow and facilitate a variety of consumers, taking into account patients, clinicians, hospices and accountable care organizations (New York Times, 2017). Initially, the company operated as Metropolitan Pathology Laboratory, Inc. since its establishment in 1967.

The company changed and became an autonomous corporation in 1996. Quest Diagnostics' services are rendered under the Quest brand name. However, the firm also renders its services under other business brands, including Focus Diagnostics, Quanam, AmeriPath, ExamOne, and Dermpath Diagnostics. Quest Diagnostics has expanded internationally with business operations in Brazil, the United Kingdom, Puerto Rico, Brazil, as well as India. The company is impelled to unravel and render diagnostic discernments and innovations that assist to enhance human health (Quest Diagnostics, 2017).

The purpose of this paper is to perform a country level analysis of the Egyptian and Iranian markets. The analysis will utilize the PESTEL framework to examine the political, social, economic, technological, environmental, and legal opportunity and threat factors together with the trends in the external settings of these two nations in the next 3 to 5 years. This framework is commonly employed to group macro-environmental factors in searching for sources of overall opportunity and risk.

In particular, these sources are essential and changes in them, can give rise to the transformation of industries, especially in the longstanding period (Witcher and Chau, 2010). Finally, the paper will offer a recommendation as which nation offers the better new market for Quest Diagnostics to undertake its business operations. Opportunity Factors and Trends Economic Market Opportunity and Economic Growth In accordance to recent data and information, the economy of Egypt appears to be progressively picking itself up.

Despite that the fact business and market conditions continue to diminish in the non-oil sector, the Purchasing Managers Index escalated to its greatest level in almost a year. Moreover, production in the industries has soared in the contemporary market, making progresses lost in the preceding financial year, whilst Central Bank reserves escalated yet again as investors are increasingly bringing their investments back to Egypt. However, the inflation of the nation is just about climaxing, notwithstanding at an agonizingly high rate causing the purchasing power of consumers to deteriorate (Focus Economics, 2017).

On the other hand, Iran has experienced a recent spring up in its oil sector, which has given rise to a 7.4% growth. Nonetheless, activity in the nation's non-oil business sector continues to be restricted by structural shortcomings, especially a tattered banking system and high level of unemployment amidst the young and women populaces. In addition, the nation has just re-elected President Hassan Rouhani for a second term who won emphatically and therefore the nation is expected to have strong economic growth through his continued reform agenda (Focus Economics, 2017).

The following analyses indicate the five-year economic forecasts of the two nations. The diagram above illustrates the projected Gross Domestic Product growth rate of Iran and Egypt in the next financial years until 2020. The diagram indicates that both nations will experience positive growth in the forthcoming financial periods. However, as can be perceived in the chart, it is forecasted and projected that Iran will have a bigger growth rate on its GDP compared to Egypt.

The diagram above illustrates the GDP of the two nations, Egypt and Iran for the next financial periods until 2020. As demonstrated, Iran will have a significantly greater GDP in comparison to Egypt consistently for the next financial periods. This implies that Iran is expected to have a healthier economy in the prospective future and therefore the total currency value of the goods and services in Iran in the next period until 2020 will be greater compared to those in Egypt.

Inflation is a key financial indicator of the health and status of an economy. The chart above illustrates that both nations will experience a consistent decline in their inflation rates in the next financial periods until 2020. However, it is expected that Iran will have a significantly lower rate of inflation compared to that of Egypt. This implies that Egypt will experience a general increase in prices and a decline in the purchasing power of money within the nation and thereby having an adverse impact on the economy.

The diagrams above illustrate the individual projections of consumer spending levels in Egypt and Iran. It is perceived that in the next three years, both countries will face an increased level of consumer spending, which implies that the economies will be healthy as the general population will have funds for spending and consumption. Opportunity Support Factors Political Support One of the political opportunity support factor in Iran is the reelection of Hassan Rouhani. The Iranian President won a pivotal and significant victory for a second 4-year term.

Taking into consideration that he was able to secure the nuclear deal with the United States together with fiver other super powers in his first term, Rouhani's reelection means that this is an opportunity to better leverage its profits into perceptible gains that will ooze down to the general public of Iran. In addition, from a political perspective, there has been several international sanctions against Iran that have been lifted owing to the arrangement. This implies that there are great chances of continued political stability in Iran.

Moreover, under the nation's political system, aspects of the nation for the past 30 years have been resolved and ruled by Ayatollah Ali Khamenei, who is the Supreme Leader of Iran (Rafati, 2017). The United States relations with Egypt have fluctuated over the years. In particular, President Barack Obama made the decision to freeze financial aid to the nation's capital city subsequent to Egypt's army, commanded by then General Sissi, dethroned and ousted the country's first democratically elected president, Mohammed Morsi. One year later, through elections, Sissi was voted President of Egypt.

Poor relations between the US and Egypt were perceived subsequent to Obama failing to invite the newly President elect to the White House and making major reproach over the military administration's onslaught on the Muslim Brotherhood that was represented by Morsi. However, in recent periods, President Donald Trump invited President Abdel Fatah el-Sissi to the White House and thereafter declared that the United States would be a good friend of Egypt and not just an ally.

Therefore, this presents an opportunity for US companies to have proper relations in terms of trade and investment in Egypt (Global Security, 2017). Economic Support Subsequent to reaching the nuclear deal, Iran's economic prospects are progressing as foreign nations and corporations seem to be hurrying to regenerate and revitalize business with the nation, which had been severed from international trade. Moreover, the nation's leaders have countered the interest in conducting business, in numerous fields comprising of technology, manufacturing, gas, as well as oil together with other nations (Rafizadeh, 2017).

In addition, according to Hormats (2016), the Joint Comprehensive Plan of Action (JCPOA) will offer licenses to subsidiaries of United States companies. This will have a major impact on the future trade and investment of specific subsidiaries with reference to Iran and on Iranian strategic business affiliations with them. Boost for investment, including foreign investment is a key main concern of the Government of Egypt.

In this regard, the government has backed this policy via a sequence of pro-business reforms, taking into account cutting down customs duties, propagating corporate veil protection, as well as instituting extra media for investor-state disagreements. Moreover, in 2015, the Egyptian president pronounced a decree by reforming investment guaranteed and also income tax law to accommodate foreign investors. For instance, at the present moment, the Egyptian government offers investing to shift investment facilities outside Cairo, the capital city.

To also ensure there is short-term stability, the government has instituted policies and investments driven at augmenting infrastructure, education, together with smart social services to diminish the burden faced for subsidies (U.S. Department of State, 2016). Social Support Iran's population is constantly growing.

With the progression of stability and growth and also with the entry of migrants to the country from other countries, there is a significant societal need for Quest Diagnostics to being about its products and services for not only the general population but also health care facilities, insurers and other entities as a whole (Hormats, 2016). Egypt has a population of approximately 90 million individuals, which signifies 25% of the Arab populace. Imperatively, 30% of the general population in the nation is constituted of individuals between the ages of 15 and 24 years old.

Egypt is considered to have social and cultural influence within the expanse. It serves as the trend setter for the Arab countries. This is an opportunity for Quest Diagnostics as it implies that Egypt is the nation that is likely to embrace technology and innovation within the region. Moreover, in the contemporary world, Egypt is all the more embracing health information technology, an aspect that Quest Diagnostics can take advantage of with respect to its cutting-edge products and services (Egypt in Chicago, 2014).

Technological Support One of the key opportunities in the Iranian market is with regard to technology. The nation has approximately 80 million people, which makes it the second largest population in the Middle East region. Imperatively, 60% of this population comprises of young individuals below the age of 30 years (Rafizadeh, 2017). In addition, Iran has a highly educated population. In accordance to Pargoo (2016), Iran can depend on its high-tech sector to tackle the problem of economic growth in the long-term.

In addition, the Supreme Leader of Iran has proclaimed the progression and development of a knowledge-based economy. From the technological front, companies profit from special tax exemptions as well as financial incentives. Owing to the sanctions relief, the opportunity presented is that companies will have more capacity to obtain essential materials. In addition, the nation is now able to maintain skilled technicians and also appeal to talented individuals across the world. Iran no longer experiences brain drain.

Moreover, the sanctions relief has now generated the prospect of business expansion to not only the prevailing markets in Iraq and Afghanistan but also to more lucrative markets in Europe, Central Asia, East Asia and Oceania (Pargoo, 2016). Egypt is present growing and constantly developing with more progress made within the nation. In the contemporary setting, there is a great room for advancement and development of technology within the nation.

In particular, this is a proper opportunity for Quest Diagnistics to take advantage of and present to the market its products and services (Samir, 2017). Opportunity Supporting Client's Operational Needs Quest Diagnostics is steered to come up with and render diagnostic acumen and novelties that aid in enhancing human health. In particular, the company provides diagnostic testing, data and information, services that patients and doctors to aid in making better decisions in health care.

In the contemporary, Iran faces a significant burden of disease in general and especially in the major metropolitan regions taking into account cardiovascular disease and cancer. At the same time, the nation also faces the issue of infectious diseases, which in numerous circumstances are to some extent associated to its neighboring nations. Despite the fact that several developments have been made and more perceptible changes have taken place, Iran continues to have several shortcomings and downsides that make its health system far away from being ideal (Lankarani et al., 2013).

This presents a great opportunity for Quest Diagnostics to provide is various assortments of products and services that are beneficial to patients, healthcare providers and healthcare companies in Iran. Egypt is undergoing a demographic and epidemiological changeover that is having an impact not only on the size but also the health status of the nation's general population.

In particular, the country's health system is experiencing fundamental and speedy change and the necessities for being compliant with the novel challenges of fluctuating demographics, patterns of diseases, developing and re developing diseases amalgamated with increases costs of health care delivery have forces a wide-ranging review of health systems and their how they operate. This necessitates cutting edge technology and advancements in all areas of the nation's health care system (World Health Organization, 2006).

This present a significant opportunity for Quest Diagnostics and its operations with regard to enabling better health care for patients, clinicians, healthcare providers, and also insurers. Threat Factors and Trends These are the threats and trends for the two nations, Iran and Egypt, tanked by degree of threat. Iran Risk of maintained and possibly new U.S. sanctions From the time Iran experienced relief of sanctions, the nation has been able to increase its oil production by just about 20% and has also been exempt from OPEC supply cuts.

There is the threat of the remaining sanctions that could be infringed upon, which cases American companies to remain reluctant in doing business with Iran. Iran might just break the agreements made, which could lead to poor understandings between the United States and the nation. This is considered the biggest threat in the nation because infringement and implementation of such sanctions implies that the nation will not be able to have operations with other nations (Euler Hermes, 2017).

Structural Weaknesses in economy Iran's economy in recent times has considerably improved to be ranked in position 120 from position 144 in the Doing Business survey carried out by the World Bank. In addition, reforms put in place by Rouhani are projected to progressively more augment financial transparency and thereby generate foreign direct investment. However, the major threat that remains is structural weaknesses that prevail.

The rate of unemployment in Iran is high, approximately 12%, and its economy also lacks diversification, being significantly reliant on the oil and gas sector which represent 23% of the Gross Domestic Product and more than half of export receipts. These threats imply that new businesses such as those of Quest Diagnostics may fail to kick off and thrive in the nation (Euler Hermes, 2017). Social threats Another threat with respect to doing business in Iran is the population aversion for Western companies.

The majority of the nation's populace have a significant negative perspective of the western world and therefore would be picky and not ready to work with or deal with western companies when they set up their operations (Euler Hermes, 2017). Egypt Political Instability In recent periods, Egypt has faced renewed threat from terrorism.

Whereas terrorist events against the military and political figures have been several from the time Sissi took power in 2013, the orchestrated attacks have been acute and the groups that are affiliated to the Islamic State have augmented their undertakings outside the Sinai Peninsula, where Egyptian security forces have been fighting against an Islamist revolution. The proliferation of attacks since the culmination of the past year has nevertheless brought to light the shortcomings of Egypt's counterterrorism procedures and the populace's lack of trust in the nation's security tool.

Stringent security measures are also revitalizing apprehensions regarding Sisi's increasing totalitarianism and its influence on Egypt's political stability in the months ahead. This is considered to the most significant threat because such incidents could lead to another revolution and terrorism battle that could make the country unbearable to live.