Time Context: 1980 - This is when massive foreign exchange from Nigeria’s crude oil exports provide a base for all sorts of expansion.
II. Point of View: Henry Livingstone - Vice President of the Africa Middle East Region of Hygeia International
III. Problem: How will Hygeia integrate forward in Nigeria as part of its international expansion?
IV. Objective: To be able for the company to integrate forward in Nigeria for the purpose of increasing its sales volume through sales promotion and to cooperate as well as fully as it can in the development of medical services in the country.
V. Areas of Consideration:
1. Hygiea International is one of the ten leading pharmaceutical companies of the world, and it also has laboratories and plants in many countries. 2. The company was able to covert drugs designed for humans to use in farm animals that opens a large market with relatively low R & D expense. 3. The company imports and sells unique medicines and veterinary products for control and treatment of disease and produces a variety of feed supplements. 4. Hygeia’s agricultural business includes activities participation in mass production of poultry, and such methods of mass production provide one of the most efficient conversions of cereal grains into protein. It has also helped promote modern poultry technology in Europe and Latin America. 5. It has experts that are familiar with the latest technology and developments of new genetic strains in chicken – for faster growth, larger production of white meat, more eggs, disease resistance, and other desired characteristics.
The company does not operate its own egg-laying colonies or meat colonies. It does not maintain colonies of “parents” – pedigree chickens which produces the million of first-line workers.
1. Hygeia is earning over a third of its net income outside US and also looks abroad for a rising percentage of income because of growing federal regulation. 2. The government of Nigeria is looking forward to increase agricultural output for the country because of serious shortage of protein foods. Meaning, government support is available. 3. The danger of exchange rate losses is not high.
1. It has several competitors who also produce drugs for disease control and feed supplements. 2. There might be political risks such as revolution, confiscation, controls on repatriation of profits, and arbitrary actions to promote diplomatic ends. 3. The village society in Nigeria is unsuited to large-scale agricultural technology and marketing channels are poorly developed.
VI. Alternative Courses of Action (ACA)
|Alternative Courses of Action (ACA) |Advantages |Disadvantages | |ACA 1: |Company’s expansion will take advantage of the |The company has several competitors who also | |To keep on regular line of business, |increasing healthcare demand in Nigeria. |produce drugs for disease control and feed | |this is selling and producing | |supplements. | |pharmaceutical products, while keeping|The company has a competitive advantage since it | | |on promoting modern poultry technology|imports and sells unique medicines and veterinary | | |by introducing mass production method.|products for control and treatment of disease and | | | |produces a variety of feed supplements. As well as, it |...
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