King Faisal Specialist Hospital and Research Center (KFSH&RC) in Riyadh, Saudi Arabia

NB: We do not resell your papers. Upon ordering, we do an original paper exclusively for you.

NB: All your data is kept safe from the public.

Table of Contents

Introduction
Cultural Distance
Administrative Distance
Geographic Distance
Economic Distance
Insights Relevant to KFSH&RC Business
Conclusion and Recommendations
List of References

Introduction

King Faisal Specialist Hospital and Research Center is one of the well-known Arabian hospitals treating patients with genetic diseases, supporting organ transplantation and activities. This organization is planning to enter a German market; therefore, there is a need to analyze the effectiveness of the chosen market and explain the peculiarities of the further entrance.

One of the Ghemawat’s frameworks, CAGE, will be used to achieve the desirable goal and understand why Germany is the country to pay attention to. Is it because of the fact that it is the largest population in the European Union? Or are there any other reasons connected with the economic development of the country?

The current project aims at answering these and many other questions as well as presenting credible facts about Germany as one of the countries for King Faisal Specialist Hospital and Research Center to cooperate with taking into consideration the insights the chosen organization prefers to rely on.

Cultural Distance

Germany and Saudi Arabia have rather different cultural preferences and traditions that should be identified to promote a successful business entrance to the country. The following table consists of several important cultural differences crucial for both countries.

Cultural Issues	Germany
Language	This country remains German to be one of the European countries with the most native speakers.
Religion	Christianity is one of the preferable religions that unite people in different communities, but it does not influence the choices of treatment.
Consumer habits	2014 is the period of German healthcare decline because of demographic changes, weather conditions, and the necessity to raise prices on different drugs; Low birth rates and the continuous aging population leads to the demand of remedies only for age-related illnesses. The country has to develop new approaches to treating a number of people under 60.
Business attitudes	German healthcare system is an example of how other European medicines should be organized; Health care is divided into private and public sectors; The principle of solidarity provides people with low incomes, who cannot benefit from the private health insurance (Clarke & Bidgood 2013)

Administrative Distance

The governmental structures of the countries under analysis are also different and have to be analyzed properly by the KFSH&RC to realize and be ready for the challenges and opportunities while entering the chosen sphere of life. As a rule, an administrative perspective touches upon the conditions of the governments of the countries and various political factors that may influence the development of the healthcare or research spheres.

Administrative Issues	Germany
Political Stability	After the World War II, the country demonstrates a powerful political system that aims at protecting human rights and freedoms The Basic Law helps to support the stability and define the rights and court foundations.
Regulations	The Federal Joint Committee regulates the healthcare sector of Germany. A solid degree of governmental regulations and appropriate social welfare are inherent to the German society (IBP 2015).
Insurance Requirements	Germany has one of the best health care systems in the whole world. The residents are provided with comprehensive health insurance coverage.

Geographic Distance

The geographic differences between Saudi Arabia and Germany are obvious. There is a burning necessity not only to compare but also to identify the possibility to integrate the differences and create a necessary door to be opened while entering the chosen market. The following geographic factors have to be considered by KFSH&RC.

Geographic Issues	Germany
Infrastructure	An appropriateness of the German infrastructure impresses a number of developers from different parts of the world; However, the current low infrastructure investments put the country’s position under threat as the one with unstable conditions for further development.
Climate	The country is characterized by a moderate climate with warm springs and summers and wet autumns and winters. People have to be ready for weather changes within a short period of time.
Demographics	Its population is about 80, 7 million in comparison to the one of Saudi Arabia with 28.8 million only (FindTheData 2015). The Germans live in big cities and enjoy the countries around.

Economic Distance

The connection between the economic and healthcare factors is evident in both countries. The better and more stable the economic systems of the countries are, the better conditions people have to improve their health. The list of the economic facts is offered in the table below.

Economic Factors	Germany
Population	The changing economic conditions make workers and employers to consider working hours and wages accordingly. 5,3% of Germans are unemployed.
GDP and Economic Growth	Though the German GDP is not the highest in Europe ($3.2 trillion), its growth is stable (0.5%) (2015 Index of Economic Freedom 2015). Germany is the country that exports it healthcare services around the globe using its reputation.
Private Healthcare Market	Workers with incomes more than £50,000 per year or self-employed people can use public health insurance. A person has to make an agreement with an insurance company individually. A person’s age is considered to understand the level of health risks.
Public Healthcare Market	More than 80% of Germans use public health insurance. All workers have a chance to get private insurance calculated from their wages. Public health insurance does not depend on age or health conditions.

Insights Relevant to KFSH&RC Business

The evaluation of the current population statistics in Germany shows that there are no significant changes, and the number of people living in the country is about 80 million.

Population statistics in Germany

Though the Millennium was rich for Germany, nowadays, the country loses its rating as the most populated region in the European Union (Worldometers 2015). Therefore, it is necessary to pay more attention to the composition of the German population and understand what type of people is in need of medical professional help.

German population

There are not many children, who do need health care from other countries. At the same, the existed amount of adults and middle-aged people may be a solid basis for KFSH&RC to promote their services in treating cancer and offer various transplantation operations. The income levels depend on the region where people live.

Still, taken into consideration that more than 60% of Germans live in urban areas, their incomes are high indeed to promote themselves with the necessary health care treatment. The nature of Germans is particular indeed; not many people are able to understand the way of how a German person thinks and estimates the conditions around. However, it turns out to be clear that the Germans will never neglect their health and do everything to achieve the best conditions they have.

Conclusion and Recommendations

In general, the evaluation of cultural, administrative, geographic, and economic factors in regards to the German healthcare sector proves that the country under analysis is rich indeed but faces certain problems with population growth. The number of people living in Germany does not define the quality of healthcare offered.

There are certain private and public healthcare sectors that provide people with the required portion of treatment and health insurance. On the one hand, Germany is the country that can allow such organizations like KFSH&RC entering the market spending fewer efforts and costs.

On the other hand, it is hard to be sure that KFSH&RC can stay in the country for a long time. As soon as the Germans get disappointed with the services offered or find its unimportance, KFSH&RC may have low ratings and incomes. The company may be weak in comparison to some new entrants to the same sphere of life.

Therefore, a number of recommendations may be given to KFSH&RC with its intentions to enter the healthcare market in Germany. The only point that has to be mentioned is that KFSH&RC should be ready for challenges and possible disappointments while cooperating with Germany and its people.

The recommendations are:

KFSH&RC has to develop powerful advertisements to introduce its services to people of different age and with different incomes.
KFSH&RC has to set several short-term goals and one long-term goal to be achieved within a certain period of time. It is wrong for KFSH&RC to set high prices for its services. It is more important to attract as many people’s attention as possible.
KFSH&RC should consider the nature of Germans and be ready to explain that they do not want to substitute the German facilities just to offer a new approach for a healthcare sector.

List of References

2015 Index of economic freedom 2015, Germany. Web.

Clarke, E & Bidgood, E 2013, ‘Healthcare systems: Germany’, Civitas. Web.

IPB 2015, Germany: Healthcare sector organization, management and payment systems handbook. Lulu.com, Washington, DC.

‘Saudi Arabia vs. Germany’, 2015, FindTheData. Web.

Worldometers 2015, Germany Population. Web.

Click Here To Order Now!