Philippines Risk Assessment for Australian Pharmaceutical Expansion
This paper presents a comprehensive risk assessment of the Philippines as a potential expansion market for Miller Inc., an Australian multinational pharmaceutical corporation. It examines the country's political system, legal framework, cultural environment, economic conditions, ethical issues, and trade landscape to determine the viability and risks associated with establishing business operations there. The analysis draws on the Philippines' democratic governance, its hybrid Eastern-Western culture, a transitioning economy with strong growth prospects, and an established trade relationship with the United States. The paper concludes that risks are generally manageable and recommends that Miller Inc. proceed with its planned expansion into the Philippine market.
- Introduction: Context and scope of Philippines risk assessment
- Profile of the Philippines: Geography, population, and international standing
- Political and Legal Systems: Democratic governance, legal framework, and stability
- Cultural Issues: Eastern-Western cultural blend and business implications
- Economic Issues and Trade: GDP, exports, imports, and growth prospects
- Foreign Exchange: Floating exchange rate system and currency management
- Conclusion and Recommendations: Risk summary and expansion recommendation for Miller Inc.
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What makes this paper effective
- The paper follows a clear, methodical structure, systematically addressing each major risk domain — political, legal, cultural, economic, and trade — before synthesizing findings in a conclusion, which mirrors professional risk-management reporting.
- It grounds its claims in specific quantitative data (GDP figures, unemployment rates, trade values, literacy rates) that give the analysis credibility and precision.
- The paper consistently links each risk category back to the specific company (Miller Inc.) and its existing market presence, making the analysis applied rather than purely descriptive.
Key academic technique demonstrated
The paper demonstrates applied risk stratification — categorizing each environmental factor as low, medium, or high risk for the business — which is a standard technique in international business and market-entry analysis. This keeps the paper focused on managerial decision-making rather than pure description.
Structure breakdown
The paper opens with an introduction establishing the business context and scope of the analysis. It then profiles the Philippines geographically and demographically before examining each risk domain in dedicated sections. The trade and foreign exchange sections add depth on the commercial environment. A brief conclusion synthesizes the findings and issues a clear recommendation, rounding out a well-organized country-risk report format.
Introduction
Globalization is an obvious trend that is catching on all over the world, and Australia has not been left behind. This has led some Australian firms to become multinational companies by opening branches and offices in foreign countries, with the goal of increasing global sales volumes, generating more revenue, and achieving a higher return on investment (ROI) for investors (Suryadinata, 2006).
The Australian firm under analysis is Miller Inc., a pharmaceutical corporation providing products to over 54 countries around the world, including New Zealand, Egypt, India, Malaysia, China, the UK, the USA, Canada, Brazil, Chile, and South Africa. The company is looking to expand its business venture to the Philippines. As a business analyst at Miller Inc., this risk management plan analyzes the foreign market situation presented by the Philippines in order to gauge the potential of this business venture (Nolan, 1996). The risk analysis examines the political and cultural systems in the Philippines, ethical practices, the legal system, stability, economic prospects, foreign direct investments, and other aspects of doing business in the Philippines (Nickles, 2002; Publications and Usa, 2007a; Publications and Usa, 2007c). This risk assessment will help Miller Inc. understand the prospects of the venture and to rank and prioritize risks in order to devise the right strategic plan.
Profile of the Philippines
The Philippines is a country in Southeast Asia bordered by Taiwan to the north across the Luzon Strait, Vietnam to the west across the South China Sea, the island of Borneo to the southwest across the Sulu Sea, the Celebes Sea to the south, and the Philippine Sea to the east. The country is the 12th most populous in the world, with a population of slightly less than 94 million people and a gross national income of approximately US$2,000. The country has a healthy workforce of about 38.9 million people, a functional literacy rate of 86.4%, and a basic literacy rate of 93.4% for those aged between 10 and 64 years (Llc, 2010; McManus and Chua, 1990).
The country maintains strong international relations that are largely based on trade. Over 11 million Filipinos live outside the country. The Philippines is a founding member of the United Nations (UN) and participates actively in its Human Rights Council and peacekeeping missions. It is also a founding member of ASEAN (Association of Southeast Asian Nations), an organization that strengthens relations between member states and promotes cultural and economic growth in the Southeast Asian region (Davidson and Studies, 1997; McManus and Chua, 1990).
According to the Doing Business 2012 survey data provided by the International Finance Corporation (IFC) and the World Bank, the Philippines is a lower-middle-income country with a doing business rank of 136 — a slight drop from its 2011 rank of 132. This ranking reflects how easy it is to conduct business in the Philippines.
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