Benecol: Raisio's Global Nutriceutical
Business and Management
Submitted By lgiscombe2015
Financial Management Policy/BUS5840
June 7, 2015
"BENECOL: RAISIO'S GLOBAL NUTRICEUTICAL"
1. What is required for global product roll-out, including who expends which capital, takes which risks, and reaps which rewards?
Globalization is one of the crucial factors that have impacted the business. Without the proper utilization of the effects of the globalization, it is very difficult for a company to get the competitive advantage. There are many factors that need to be considered before rolling out the product in the global market. The first is to analyze the value chain of the company and to understand and decide on the position where they management wants the company to be into. Then comes the licensing, international licensing is required to do business globally. They need to understand and find out a partner that can help them in the global expansion. The major reason for a partner is that penetrating the international market is not easy and for the same a company needs help from a partner who understand the market in a better way. This will help them to expand globally without much of the problem. Going global means the demand will increase and simultaneously the company needs to increase the production of the product that they produce. Payments are to be made by both the parties. The global partner will pay a lump sum amount based on the sales and the milestones. Benefits and the risks were shared by both the companies. Benefits include increase in sales revenue, profits but simultaneously there are risks that include exchange rate risk, uncertainty in demand and risk of losing the investment since this is capital intensive industry.
2. Complete a detailed financial analysis highlighting the differences in which Raisia reaps rewards in and out of Finland via its role in the product distribution. Compare in terms of short- to...