Florida International University Russia Ukraine Geopolitical Crisis Discussion
Description
You need to present a rebuttal to the following team’s discussion:
Hello class,
From the different team case presentations, it is evident that the Russia-Ukraine has led to geopolitical crisis and sanctions by several western countries including the United States of America causing a lot of damage to pharmaceutical imports and operations by companies such as Pharma Corp in Ukraine. The primary driving factor identified by the teams as a key contributor to the situation faced by Pharma Corp in Ukraine is political instability (Rice & Zegart, 2020). The major worry is that the political unrest will affect cash flows which may also affect the remittances of remaining trade receivables from supplies to Ukraine clients. Furthermore, Pharma Corp is among the top pharmaceutical companies in India, and it stands to be affected by the ongoing war between Russia and Ukraine since its Ukraine branch cannot continue to operate effectively. The war is going to affect the profitability of the company since transportation has been paralyzed and the political instability in the country also paralyzes business operations across the nation (Porter, 2008). Many people among them Pharma Corp personnel are fleeing the country.
The impact of the Russia-Ukraine conflict may not cause delays to the shipment of medicines from India, but it will significantly compromise the supply chain of intermediates for individuals conducting discovery work. Therefore, the primary solution that can be employed by Pharma Corp is to slow down operations completely to avoid incurring costs without returns. It can also outsource most of its operations or supply chain to its mother company in India to ensure to continue to serve its clients within and outside Ukraine until the country stabilizes. Most of which is dependent on how long the crisis lasts. Another approach is for Pharm Corp to shift to online retailing to reduce the need for physical operations that expose its personnel to attack risks (Chen & Chang, 2020).
The state of politics of the nation can significantly affect its economic performance (Porter, 2008). Many businesses depend on the country’s stability to effectively run their operations. In the context of the ongoing Russia-Ukraine war, the attacks on major towns in Ukraine by Russian forces have forced many businesses to close down, others even pulling out of the country. Companies such as Pharma Corp may pull out of the country or close down their operations indefinitely, and depending on how long the crisis last, most companies may choose to venture into new territories.
References
Chen, B., & Chang, F. (2020). PEST Analysis of Development Trend in China’s Online Drug Retail Market under the “Internet Plus” Strategy. Global journal of Economics and Business Administration, 4. Retrieved from: https://full.escipub.org/Articles/GJEBA/GJEBA-2020…
Porter, M. E. (1987). From competitive advantage to corporate strategy (Vol. 59). Cambridge, MA: Harvard Business Review. Retrieved from: https://web.uniroma1.it/dip_management/sites/default/files/optional%20reading%201%20porter_0.pdf.
Porter, M. E. (2008). The five competitive forces that shape strategy. Harvard business review, 86(1), 25-40. Retrieved from: https://www.academia.edu/download/49313875/Forces_…
Rice , C., & Zegart, A. (2020, December 10). Managing 21st-Century Political Risk. Harvard Business Review. Retrieved from: https://hbr.org/2018/05/managing-21st-century-poli…
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