THE BMZ ACADEMY
THE BMZ ACADEMY
@061 262 1185/068 053 8213
BMZ ACADEMY 061 262 1185/068 053 8213Page 1 of 24
, THE BMZ ACADEMY
Table of Contents
COMPANY 1 ......................................................................................................................................... 3
Introduction ......................................................................................................................................... 3
2. THE SELECTION OF AN ENTRY MODE ................................................................................... 3
CAPITAL BUDGETING ...................................................................................................................... 5
MARKET STRUCTURE IN THE HOST COUNTRY....................................................................... 7
5. MANAGEMENT PRACTICES ....................................................................................................... 9
Conclusion ......................................................................................................................................... 11
REFLECTIONS (10) .......................................................................................................................... 12
COMPANY 2 .......................................................................................................................................... 14
INTRODUCTION ..................................................................................................................................... 14
THE SELECTION OF AN ENTRY MODE.................................................................................................... 14
CAPITAL BUDGETING ............................................................................................................................ 15
MARKET STRUCTURE IN THE HOST COUNTRY ...................................................................................... 16
Management Practices ......................................................................................................................... 18
Conclusion ............................................................................................................................................. 20
Reflections ............................................................................................................................................ 21
References ............................................................................................................................................ 22
IMPORTANT NOTES TO CONSIDER ........................................................................................... 23
BMZ ACADEMY 061 262 1185/068 053 8213Page 2 of 24
, THE BMZ ACADEMY
COMPANY 1
Introduction
This essay examines the planned international expansion of Dischem, a leading South
African pharmacy, health, and beauty retailer, into Botswana a rapidly developing
market in Southern Africa. Dischem’s growth strategy aligns with globalisation trends,
where firms leverage cross-border expansion to access new customer bases, increase
market share, and enhance long-term profitability (Abdulsalam, Tajudeen & Francis,
2024). By entering Botswana, Dischem aims to capitalize on its competitive
advantages, including strong brand reputation, efficient supply chain management,
and a broad product portfolio, within a neighbouring African market characterized by
rising consumer demand for health and wellness products (Clark & Pidduck, 2024).
This essay will analyse the critical strategic decisions underpinning this investment,
beginning with the choice of an appropriate entry mode and the influence of factors
such as local legislation, cultural adaptation, and risk management on this decision
(Peng & Meyer, 2023). It will also explore capital budgeting as a tool to assess the
financial risks, costs, and benefits associated with the venture, acknowledging the
additional complexities posed by exchange rate fluctuations, political risk, and market
uncertainty in an international context (Das et al., 2021). Furthermore, the essay will
evaluate the host country’s market structure, aligning Dischem’s marketing strategy
with local competitive dynamics, and applying the Awareness, Motivation, and
Capability (AMC) framework to anticipate and respond to competitor actions (Quansah
& Hartz, 2021). Finally, it will discuss the management practices most pertinent to
achieving successful foreign operations, with a focus on balancing global integration
and local responsiveness. The essay concludes by synthesising key insights and
reflecting on the broader strategic implications for multinational enterprises entering
African markets.
2. THE SELECTION OF AN ENTRY MODE
Following the decision to expand internationally beyond import and export ventures,
Dischem, the South African pharmacy, health, and beauty retailer, will establish a
wholly owned subsidiary (WOS) in Botswana through a greenfield investment. A
BMZ ACADEMY 061 262 1185/068 053 8213Page 3 of 24
THE BMZ ACADEMY
@061 262 1185/068 053 8213
BMZ ACADEMY 061 262 1185/068 053 8213Page 1 of 24
, THE BMZ ACADEMY
Table of Contents
COMPANY 1 ......................................................................................................................................... 3
Introduction ......................................................................................................................................... 3
2. THE SELECTION OF AN ENTRY MODE ................................................................................... 3
CAPITAL BUDGETING ...................................................................................................................... 5
MARKET STRUCTURE IN THE HOST COUNTRY....................................................................... 7
5. MANAGEMENT PRACTICES ....................................................................................................... 9
Conclusion ......................................................................................................................................... 11
REFLECTIONS (10) .......................................................................................................................... 12
COMPANY 2 .......................................................................................................................................... 14
INTRODUCTION ..................................................................................................................................... 14
THE SELECTION OF AN ENTRY MODE.................................................................................................... 14
CAPITAL BUDGETING ............................................................................................................................ 15
MARKET STRUCTURE IN THE HOST COUNTRY ...................................................................................... 16
Management Practices ......................................................................................................................... 18
Conclusion ............................................................................................................................................. 20
Reflections ............................................................................................................................................ 21
References ............................................................................................................................................ 22
IMPORTANT NOTES TO CONSIDER ........................................................................................... 23
BMZ ACADEMY 061 262 1185/068 053 8213Page 2 of 24
, THE BMZ ACADEMY
COMPANY 1
Introduction
This essay examines the planned international expansion of Dischem, a leading South
African pharmacy, health, and beauty retailer, into Botswana a rapidly developing
market in Southern Africa. Dischem’s growth strategy aligns with globalisation trends,
where firms leverage cross-border expansion to access new customer bases, increase
market share, and enhance long-term profitability (Abdulsalam, Tajudeen & Francis,
2024). By entering Botswana, Dischem aims to capitalize on its competitive
advantages, including strong brand reputation, efficient supply chain management,
and a broad product portfolio, within a neighbouring African market characterized by
rising consumer demand for health and wellness products (Clark & Pidduck, 2024).
This essay will analyse the critical strategic decisions underpinning this investment,
beginning with the choice of an appropriate entry mode and the influence of factors
such as local legislation, cultural adaptation, and risk management on this decision
(Peng & Meyer, 2023). It will also explore capital budgeting as a tool to assess the
financial risks, costs, and benefits associated with the venture, acknowledging the
additional complexities posed by exchange rate fluctuations, political risk, and market
uncertainty in an international context (Das et al., 2021). Furthermore, the essay will
evaluate the host country’s market structure, aligning Dischem’s marketing strategy
with local competitive dynamics, and applying the Awareness, Motivation, and
Capability (AMC) framework to anticipate and respond to competitor actions (Quansah
& Hartz, 2021). Finally, it will discuss the management practices most pertinent to
achieving successful foreign operations, with a focus on balancing global integration
and local responsiveness. The essay concludes by synthesising key insights and
reflecting on the broader strategic implications for multinational enterprises entering
African markets.
2. THE SELECTION OF AN ENTRY MODE
Following the decision to expand internationally beyond import and export ventures,
Dischem, the South African pharmacy, health, and beauty retailer, will establish a
wholly owned subsidiary (WOS) in Botswana through a greenfield investment. A
BMZ ACADEMY 061 262 1185/068 053 8213Page 3 of 24
