Israel and the Teva Company

Teva Case Study Teva Case Study Question Israel gave Teva a serene environment for growth and development. Many of the countrieshave been focusing on the returns made by the company. Therefore, laws are enacted in order to increase the taxes being remitted by the companies. These laws prevent the growth of the companies because majority of the firm’s returns are used to pay taxes instead of being used in expanding the business. However, this was not the case with Israel. The country has been focusing on diversifying its source of revenues. This is through expanding other sectors of economy in order to diversify the sources of revenue. This aspect played a significant role in reducing the amount of taxes that were being charged on emerging firms. This gave Teva Company an opportunity to accumulate money which was used to expand the operations in different parts of the world. For a company o dominate in the global market, it must have a large market share in the local market. This gives the firm morale to take up risks.
Israel played a supportive role in Teva development. The government of Israel invested heavily in the education system. Therefore, over the years, I think that the country was able to equip its population with high technical skills which enabled them to work in different manufacturing companies. As a result, the company had qualified personnel at its disposal. These were people who had the necessary skills to steer growth and development in the company. In addition, the employees were well versed on different aspects that they need to consider in order for the business to penetrate the global market. Therefore, through little training by the US professors especially on the American culture, they were able to use the business models that were taught in school in order to penetrate the US market.
Israel played a comforting role towards the growth of Teva Company. Although expansion of any company in the overseas market is important in order to reduce the risks and uncertainties associated with concentrating on a single market, every company must dominate a specific market before trying to capture other markets. Personally, I believe that Teva was able to gain comfort after segmenting the local market. The country gave support to the company’s products through ensuring that many of the prescribed drugs came from the company. The company received numerous contracts with government hospitals. This gave the firm confidence to explore the external market as it was assured of local support.
Question 2
Israel’s location provides a gateway for Teva to penetrate the Asian market. For several decades, the company has been focusing on improving its presence in the US market. However, Asia is one of the fastest growing economies. In addition, the continent has a high population. This offers Teva an opportunity to expand its market base and increase the overall sales. With the increasing levels of globalization resulting from liberalization of markets, efficient flow of information and integration of economies, the level of competition is likely to rise. Therefore, the company needs to penetrate the Asian market and set up a barrier of entry for any other interested investors. This will assure the firm of a prosperous future. Therefore, the location of Israel is instrumental in achieving this success.