Module: Business Organisations in a Global Economy

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 Content

Table of Contents
Introduction.................................................................................................................................................3
Background Information of Beximco...........................................................................................................4
Size and Financial Performance...............................................................................................................4
Legal Form/Ownership Structure.............................................................................................................5
Current International Operations............................................................................................................5
Business environment of Finland.................................................................................................................6
Explain of the Business Scenario.................................................................................................................9
Porter's Five Forces framework.................................................................................................................11
Recommendation......................................................................................................................................12
Conclusion.................................................................................................................................................13
References List...........................................................................................................................................14

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Introduction

Business groups are essential for promoting international trade, spurring economic
growth, and creating employment possibilities in the modern global economy. They
operate internationally, taking use of technical improvements and FDE chances to
broaden their reach and compete in a globalized environment (Newell and Paterson,
2010). Understanding the intricacies of global marketplaces and adapting to various
cultural, governmental, and economic conditions are crucial for success as globalization
continues to change the corporate landscape. For this report I have been select
Beximco Pharmaceuticals Ltd and country is Finland.

A renowned pharmaceutical business with headquarters in Bangladesh is called

Beximco Pharmaceuticals Ltd. With a long history spanning more than 40 years,
Beximco Pharmaceuticals has made a name for itself as a reliable supplier of high-
quality active pharmaceutical ingredients (APIs) and generic pharmaceutical products in
both domestic and foreign markets (Sium, 2018). Beximco Pharmaceuticals is actively
looking at foreign direct investment (FDI) prospects in Finland as part of its efforts to
broaden its worldwide presence and enter new markets. Finland is a desirable
investment location for the business due to its sophisticated healthcare infrastructure,
technological advancements, and high-quality healthcare services. Beximco Inc
Pharmacy has carefully chosen to pursue Investment in Finland for plenty of reasons.
The first thing to note is that Finland has a very advanced healthcare system, which
generates a sizable market for drugs and medical services. The nation places great
importance on research and development, and its highly skilled workforce supports
Beximco Pharmaceuticals' commitment to innovation and quality. Finland has
advantageous access to the wider European market thanks to its geographic location
within the European Union (EU). Finland benefits from a stable political as well as
financial environment that facilitates business and attracts international investment as a
result of it joining the EU. In addition, Beximco Pharmaceuticals has an ideal
atmosphere for assuring the security, efficiency, and compliance of its goods on the
Finnish market because to Finland's strong safeguards of proprietary rights and

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regulation. This is consistent with the company's mission to offer cost-effective
healthcare options to individuals all across the world (Rahman, 2023). In conclusion,
Beximco Pharmaceuticals views Finland as a strategic FDI opportunity because of the
country's cutting-edge healthcare system, accessibility to the rest of Europe, hospitable
business climate, and dedication to intellectual property rights. The company wants to
take advantage of these advantages to grow its market share, support the regional
healthcare sector, and offer cutting-edge pharmaceutical goods to serve the
requirements of the Finnish people.

Background Information of Beximco

Beximco Group, also known as Beximco, is a global conglomerate with headquarters in

Bangladesh. With a substantial presence across numerous industries, it is one of the
biggest and most varied business groupings in the nation. To give you some
background on Beximco. 

Size and Financial Performance

The Beximco Group has expanded to rank among the biggest businesses in
Bangladesh. Beximco's annual revenue as of the cutoff in September 2021 was around
USD 1.6 billion. It is advised to consult the most recent financial reports for the most up-
to-date information because the company's size and financial performance have
probably changed since then. For the third quarter and nine months ending March 31,
2023, Beximco Pharmaceuticals Limited reported financial results. Sales for the third
quarter were BDT 9,554.23 million, up from BDT 8,959.56 million in the same period last
year, according to the business (Ahamed, 2020). In contrast to BDT 1,102.44 million a
year ago, net income was BDT 950.56 million. A year ago, basic earnings per share
from continuing operations were BDT 2.47; this year, they were BDT 2.13. Sales for the
first nine months were BDT 29,232.97 million, up from BDT 25,928.47 million in the
same period last year. In contrast to BDT 4,280.45 million a year earlier, net income was

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BDT 3,634.59 million. In comparison to BDT 9.6 a year ago, basic earnings per share
from continuing operations were BDT 8.15.

Figure 1: Beximco Income Chart

Legal Form/Ownership Structure

Beximco Group is a publicly traded business in Bangladesh that trades on the

Chittagong Stock Exchange and the Dhaka Stock Exchange. The ticker symbol for the
company's shares is "BEXIMCO." Individual and institutional shareholders who possess
shares in Beximco are part of the ownership structure.

Current International Operations

Beyond Bangladesh, Beximco has significantly increased its operations and established
a global footprint. The corporation operates subsidiaries, joint ventures, and
partnerships in numerous nations, working in a range of industries including ceramics,
textiles, real estate, and medicines. One of the top pharmaceutical firms in Bangladesh
is Beximco Pharmaceuticals, a Beximco Group company with a presence all over the

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world. More than 100 nations around the world, including the US, Europe, Asia, Africa,
and Australia, import its pharmaceutical products. The Beximco Group has made
foreign ventures outside of the pharmaceutical industry (Zalaghi el at., 2019). For
instance, in nations like Egypt and the United Arab Emirates, it has developed joint
ventures in the textile industry. The business also runs a ceramics manufacturing facility
in Malaysia and engages in real estate development in the United Arab Emirates.

Business environment of Finland

Northern European nation Finland is renowned for its highly advanced business climate.
We can acquire insights into the many elements that influence the business
environment in Finland by using the PESTLE analytical framework.

Figure 2: PESTLE Analysis

Political Factors

 Political Climate Is Stable: Finland has a political climate that is stable, with a
solid legal system, open government, and little corruption. The environment
created by this stability is favorable for commercial operations.
 Government policies: The Finnish government supports sustainable practices,
R&D, and innovation. For businesses, it provides a range of incentives and

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 supports, especially in industries like technology, clean energy, and healthcare
(Timilsina, 2016).
 Rusa vs Ukraine Crisis: Finland has consistently remained impartial in regards to
a range of international relations challenges. It will be fascinating to observe,
though, whether it continues to be neutral or considers changing its stance in
light of the Ukrainian issue.

Economic Factors

 Strong economy: The economy of Finland is very industrialized and competitive.

It is renowned for its top-notch infrastructure, knowledgeable staff, and cutting-
edge technology industries.
 Finland places a lot of emphasis on innovation and technology, which has
created a thriving startup ecosystem and a welcoming climate for R&D
operations.
 Open Market Economy: Finland has a market-based economy and welcomes
international investment. Particularly in industries like telecommunications,
engineering, and forest products, it has a strong export-oriented attitude
(Hyvärinen, 2019).
 Infrastructure: Finland has created a fantastic business infrastructure. It has one
of the lowest corporation tax rates in the European Union.

Social Factors

 Education and Workforce: The workforce in Finland is very well educated and
skilled. The education system in the nation is well-known for its rigorous
standards and focus on creativity and critical thinking.
 Egality and social welfare: Social equality and welfare are highly valued in
Finland. A robust consumer market is a result of its extensive social security
system and high standard of living.
 Religious Views: Personal religious views are widely respected though most
people in Finland have secular views. There is also a very good degree of
equality between the genders.

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Technological Factors

 Finland is a leader in digitalization and has a strong infrastructure for information

and communication technologies. It offers a supportive atmosphere for
entrepreneurs and digital companies.
 R&D and Innovation: Finland makes significant investments in R&D, which has
accelerated technological development and encouraged innovation across a
range of industries.

Environmental Factors

 Natural Resources: The natural resources in Finland are abundant. It has vast
forests, lots of lakes, hills and valleys, trees and mountains covered in winter,
amazing Northern Lights, wonderful national parks, historical structures, and
lovely tiny islands.
 Finland lays a lot of emphasis on environmental sustainability and green
initiatives. It has put into place stringent environmental laws and backs
campaigns for clean technologies, renewable energy, and circular economy
principles.

Legal Factors

 Company-Friendly Regulations: The legal system of Finland is clearly

established and promotes company operations. The nation's legal system is
open and transparent, and it effectively enforces contracts and protects
intellectual property rights.
 EU Membership: Finland enjoys access to the EU single market as a result of
being a member of the European Union, which facilitates trade and commercial
links with other member nations (Wang, 2015).

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  Independent Judicial System: Finland has an independent judicial system. The
government is transparent, and the public institutions are very effective.
Contractual agreements are very rigorously honored, and employees are entitled
to many benefits.

The direct effects of political, social, and cultural elements on a particular business
situation can differ, even though they all contribute to Finland's overall business
environment. It's critical to evaluate each factor's relative value in light of the target
market, industry, and corporate goals.

Explain of the Business Scenario

Let's use the Demand-Supply scheme, which analyzes market dynamics and factors
impacting the business potential, to study the business landscape in Finland. An
analysis of the Finnish business environment is provided below:

Demand Analysis

Compared to some other European nations, Finland has a modest population.

Therefore, firms must evaluate the size of the market and its room for expansion within
their chosen specialty or industry. Consumers in Finland enjoy a good standard of living
and significant spending power. Quality, innovation, sustainability, and convenience are
important to them (Wexler el at., 2019). It is essential for businesses to comprehend
consumer behavior and preferences in order to customize their goods and services.
Businesses can identify specific target segments and customize their services to match
their needs by segmenting the market based on demographic, geographic,
psychographic, or behavioral variables.

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 Figure 3: Business Scenario Planning
Supply Analysis
Finland is famous for having a top-notch educational system and strong practical
apprenticeships that have resulted in a workforce that is highly knowledgeable and
skilled. Having access to skilled personnel may assist businesses in terms of creativity,
efficacy, and efficiency in operation. Finland is proud of its state-of-the-art technological
infrastructure, which includes digital services and fast internet. This infrastructure
enables businesses to use tech throughout a number of how they operate, adopt
electronic tools, and operate transactions online (Brennan el at., 2020). Finland offers a
range of business assistance institutions, comprising incubators, incubators, and
government-backed programs, in order to promote innovative thinking,
entrepreneurship, and international investment. These support programs may provide
businesses with beneficial resources, connections, and guidance.

Competitive Analysis

Examine the economy or industry category that is being targeted for competition.
Identify the key participants, their shares of the market, benefits, drawbacks, and
strategies. Think about the obstacles to entry, such as high financial requirements,
adherence to law, expertise in technology, and a well-known brand name. The level of
competition and potential difficulties for prospective entrants are better understood
thanks to this analysis. Determine the differentiators and competitive advantages that
can set your company apart from rivals. This might involve elements like brand
reputation, price policies, customer service, innovation, and product quality.

Market Opportunities and Challenges

Recognize new trends, customer desires, and business changes that may offer
expansion chances. Changes in consumer tastes, technological developments, or

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legislative modifications may all fall under this category (Chermack, 2011). Consider
possible dangers and difficulties, such as market saturation, shifting legal requirements,
erratic economic conditions, or geopolitical reasons. Learning about these risks enables
firms to create ways to reduce them and guarantee long-term profitability.

Porter's Five Forces framework

An industry's vulnerabilities and strengths can be ascertained using Porter's Five

Forces, a model that identifies and examines five competitive forces that affect every
industry. To define corporate strategy, the Five Forces analysis is widely used to assess
the structure of an industry (Dobbs, 2011) . Any sector of the economy can benefit from
using Porter's model to better analyze industry rivalry and increase long-term
profitability. Michael E. Porter, a professor at Harvard Business School, is remembered
by the name of the Five Forces model.

Figure 4: Porter’s 5 forces

Threat of New Entrants

Although the economic climate in Finland is favorable, different industries are more or
less threatened by new competitors. The admission of new players may be hampered
by elements including high starting capital costs, fierce current competition, and

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legislative restrictions. However, some businesses, particularly those that are driven by
technology and innovation, may have lower entry barriers, posing a greater threat.

Bargaining Power of Suppliers

The specific industry determines the suppliers' negotiating position. Suppliers may have
more negotiating power in markets with fewer dominant suppliers or high levels of
specialization (Mathooko and Ogutu, 2015). The supplier base in Finland is often varied
and competitive, which might reduce supplier power.

Bargaining Power of Buyers

In some industries, buyers can have a large amount of negotiating power, particularly if
they have access to a variety of suppliers or if the goods or services being given are
very standardized. However, corporations may have more sway over what terms
purchasers must agree to in specialist markets or sectors with significant differentiation.

Threat of Substitute Products or Services

Depending on the industry, different alternatives may pose different threats. The threat
may be lessened in industries with significant product differentiation and distinctive
offerings (Dälken, 2014). The threat of replacements, however, can be greater in sectors
where there are easily accessible alternatives or low switching costs for consumers.

Intensity of Competitive Rivalry

Different industries in Finland's business climate experience different levels of fierce

competition. Competition can be fierce in markets with a small number of dominating
companies and high levels of concentration. However, competition may be more
moderate in sectors or industries with considerable innovation and distinction.

Recommendation

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  Perform in-depth study of the market to comprehend the competitors, target
market segmentation, and industry-specific trends.
 To stick out in a marketplace, one must stress creativity and distinctiveness.
 Continue to keep an eye on Finnish market trends, legal developments, and new
business prospects.

Conclusion

Finland provides a welcoming environment for business with a range of options. The
nation has a strong and diverse economy, a stable political system, and supporting
public policies. For companies in technology-driven industries, it is appealing since it
places a strong emphasis on innovation, research, and development. The demand-
supply study emphasizes how crucial it is to comprehend market size, development
potential, customer behavior, and market segmentation (Haas, el at., 2015). The
competent labor force, cutting-edge technology infrastructure, and business support
systems in Finland give companies a strong basis on which to grow. To successfully
traverse the market, organizations must take into account the competitive environment,
entry obstacles, and differentiation initiatives. Long-term performance depends on
recognizing market trends, evaluating risks, and responding to shifting rules (Mander,
2014). In summary, enterprises can take advantage of the commercial prospects offered
by Finland's favorable business environment and tap into the nation's robust consumer
base, competent personnel pool, and innovative ecosystem with careful research and
strategic planning.

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References List

Newell, P. and Paterson, M., 2010. Climate capitalism: global warming and the
transformation of the global economy. Cambridge University Press.
Sium, T.A., 2018. Cost Procedures and Accounting Information System of Beximco
Pharmaceuticals Limited.
Rahman, M., 2023. A Study On Financial Aspects of Beximco Pharmaceuticals Limited
in Bangladesh. Journal of Business, 8(01), pp.15-27.
Ahamed, M.J., 2020. Comparison of the Financial Performance between Square
Pharmaceuticals Limited and Beximco Pharmaceuticals Limited: DuPont
Analysis. Global Disclosure of Economics and Business, 9(1), pp.39-48.
Zalaghi, H., Godini, M. and Mansouri, K., 2019. The moderating role of firms
characteristics on the relationship between working capital management and financial
performance. Advances in Mathematical Finance and Applications, 4(1), pp.71-88.
Timilsina, B., 2016. Does competitively distinct operation enable performance in
turbulent business environment? A study on finnish SMEs. Management and Production
Engineering Review, 7(3), pp.94-104.
Hyvärinen, H., 2019. Finnish companies entering Singapore: Analysis of business
environment and cultural differences: Case: Exove Design.
Wang, M., 2015. A business model improvement proposal for Finnish enterprises doing
business in China: case study: Hankintatukku Oy.
Wexler, S., Shaffer, J. and Cotgreave, A., 2017. The big book of dashboards: visualizing
your data using real-world business scenarios. John Wiley & Sons.
Brennan, R., Canning, L. and McDowell, R., 2020. Business-to-business marketing.
Sage.
Chermack, T.J., 2011. Scenario planning in organizations: how to create, use, and
assess scenarios. Berrett-Koehler Publishers.
Dobbs, M.E., 2014. Guidelines for applying Porter's five forces framework: a set of
industry analysis templates. Competitiveness review, 24(1), pp.32-45.
Mathooko, F.M. and Ogutu, M., 2015. Porter’s five competitive forces framework and
other factors that influence the choice of response strategies adopted by public
universities in Kenya. International Journal of Educational Management, 29(3), pp.334-
354.

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Dälken, F., 2014. Are porter’s five competitive forces still applicable? a critical
examination concerning the relevance for today’s business (Bachelor's thesis,
University of Twente).
Haas, W., Krausmann, F., Wiedenhofer, D. and Heinz, M., 2015. How circular is the
global economy?: An assessment of material flows, waste production, and recycling in
the European Union and the world in 2005. Journal of industrial ecology, 19(5), pp.765-
777.
Mander, J. ed., 2014. The case against the global economy: and for a turn towards
localization. Routledge.

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