Business Analysis Of Eu Yan Sang International Limited
Business Analysis Of Eu Yan Sang International Limited

Business Analysis Of Eu Yan Sang International Limited

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  • Pages: 15 (7677 words)
  • Published: October 14, 2017
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The Chinese profile of pharmaceutical industryA is low and it owns 20 % of the un

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iverses population and merely 1.5 % of the globalA drugA market ( Smith, 2005 ) . However, theA pharmaceutical industryA in America is one of the fastest turning industry and many American companies are self sufficient in fabricating drugs medical specialty and chemicals, medical devices, hygiene stuffs andA pharmaceutical machinery ( Jonas, 2003 ) . As a consequence of turning efficiency in pharmaceutical industry, many Chinese markets now are nearing to hold joint venture with other international pharmaceutical company. The pharmaceutical industry in USA is the most profitable industry in last few decennaries and it is the most quickly turning sector in US economic system. It is anticipated to spread out more ( Boussel, 1983 ) .

This paper aims to look into the feasibleness of joint concern activity of Eu Yan Sang, a Chinese pharmaceutical company. The ground taking an American company for joint venture is that American pharmaceutical industry has created a competitory advantage in US economic system. In this paper, the focal point is to analyse how far the concern venture of Eu Yan Sang with a US base company Merck & A ; Co. , Inc. This joint venture is Franchising and Merging & A ; Acquisition. This study undertaking will analyse whether or non making a joint venture with Merck & A ; Co. , Inc is good in footings of success and economical growing.

Industry Business Description

However, Chinese and states of far eastern pharmaceutical market are extremely inefficient. In 2007, they all have about 3,000 to 6,000 domestic pharmaceutical makers companies and about 14,000 domestic pharmaceutical distributers. China is one of the major pharmaceutical market is the universe. In 1996, the market value of Chinese pharmaceutical market was $ 10 billion and this figure is forecasted to widen more. The rapid enlargement of economic system and authorities attempts to construct China as an of import participant in the pharmaceutical industry is fueling the growing rate of pharmaceutical companies in China ( Boussel, 1983 ) .

Company Description

Eu Yan Sang International Limited is listed on the Singapore Exchange as Eu Yan Sang International Limited. It is a planetary health care company with its chief focal point in Traditional Chinese Medicine. The company has dedicated its concern operation to prosecute the best natural health care merchandises and services to its clients.

Eu Yan Sang was established in 1879, emerging from a little Chinese medical specialty store. In 1999,

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the Group transformed its corporate and retail repute, actively lending in the transmutation of the Traditional Chinese Medicine industry and homogeny of its Chinese medicine industry by concerted research with faculty members and the authorities. The company is now an International Limited with the largest TCM maker and retail merchant in Hong Kong, Singapore and Malaysia and sharing their imaginative selling constructs and schemes.

Eu Yan Sang is a pharmaceutical company that specializes and focuses in traditional Chinese medical specialty. The company presently operates more than 140 retail mercantile establishments in Hong Kong, Macau, China, Malaysia, Singapore and Taiwan. It besides owns two mills in Hong Kong and Malaysia. The company besides operates 20 TCM clinics in Hong Kong, Malaysia and Singapore and three Specialist TCM Centres in Singapore ( hypertext transfer protocol: //www.euyansang.com/ ) .

3.1 Type of Business

Eu Yan Sang is a retail and fabricating company. It possesses a distribution web of 140 retail mercantile establishments in Hong Kong, Macau, Guangzhou, Malaysia, Singapore and Taiwan. The company ‘s some of merchandises are besides carried to pharmaceuticss, supermarkets, shops, infirmaries, wellness nines and watering place. Eu Yan Sang is besides a maker and has two fabrication mills in Hong Kong and Malaysia. The Company ‘s fabrication installation in Malaysia is operated by a wholly possessed auxiliary company, Weng Li Sdn Bhd. Eu Yan Sang has invested in a HK $ 110-million in a 130,000A sqA foot ( 12,000 M2 ) industrializing works in Yuen Long Hong Kong in 2006. This incorporation and extraction installation besides has possessed its ain research lab installations for research and development. The Company controls 20 TCM clinics in Singapore, Malaysia and Hong Kong. Furthermore, there are three specializers TCM Centres in Singapore and has trained practicians in Chinese medical specialty. These clinics provide services such as stylostixis and distributing TCM prescriptions ( hypertext transfer protocol: //www.euyansang.com/ ) .

3.2 Legal Structure

The company is group of companies operated in Hong Kong, Malaysia, Singapore and Australia by senior direction of the company ( hypertext transfer protocol: //www.euyansang.com/ ) . In add-on, in August 2010, Eu Yan Sang announced its joint venture of acquisition with ASX-listed Healthzone Limited, and the understanding to get 14.99 % of Healthzone Limited. ( Company Document available on URL[ 1 ])

3.3 History/Mission/Goals/Objectives

The company was founded in the 1870s by Eu Kong Pai besides known as Eu Kong. He built up the first rock of the company after he realized that the locals were greatly reliant on opium as the most convenient manner for instant alleviation for their medical demands. Since the bulk were nescient and incognizant that opium could be dangers to their wellness. Eu Kong applied his traditional cognition of Chinese medical specialty to bring forth herbal redresss to handle their physical agony and re-establishing the wellness. Eu Kong started his first Chinese medical specialty shop in 1879 in Gopeng, with the name “ Yan Sang ” ( Singapore concern, 1993 ) .

Eu Tong Sen, the eldest boy of Eu Kong inherited the household concern in 1890. Eu Tong Sen had been greatly concerned in Sn excavation industry of Malaya.

His

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