Global Business Marketing and Environmental Analysis

Question: Discuss about the Global Business Marketing and Environmental Analysis. Answer: Introduction Ananas Anam has developed a new kind of leather that is made out of the pineapple fiber. With the help of decortications process, the pineapple fivers are extracted. After this process, the extracted fivers are go thorough different processes to become nonwoven textile and from these, the vegan leather called PINATEX is made off. (ananas-anam.com, 2017). Australia has been chosen to introduce PINATEX. The recent advancement of Australia from every business angel is the main reason behind the selection of Australia. The recent economic development of Australia is optimal for the success of any business. These are the reasons Australia has been chosen to market PINATEX. Looking at the popularity of PINATEX all over the United Kingdom, Ananas Anam has decided to market this product in Australia. In the business environment of Australia, some major factors can affect the business of Ananas Anam in this country. The effects of all these factors are discussed below in details: Political Environment Scenario: The political condition and regulatory environment of Australia is a stable as the political condition is open and progressive and it provides ample business opportunities to the foreign companies that want to start new businesses in Australia (Boutilier, Black Thomson, 2012). Australia is one of the most important markets for multinational corporations in the Asia-Pacific region. Major outcomes of the stable political condition of Australia are well educated, skilled and multi lingual workforce, a competitive cost base and a strategic time zone (Cavusgil et al., 2014). Implications: List Opportunities Rating* List Threats Rating* 1.Growth of business 2.Flexible political regulations 5 4 1.High tax rate 5 Economic Environment Scenario: It can be seen that the strong economic growth rate of Australia is higher than many other OECD countries like United Kingdom, United States of America. The current gross domestic product of the company is higher than that of Germany, United Kingdom and France (Glasson, Therivel Chadwick, 2013). Strong growth in gross domestic products, stable rate of interest, the continuous rise in the exchange rates, high level of employment, low rate of inflation and many others lead to low risks in economy (switzer.com.au, 2017). Implications: List Opportunities Rating* List Threats Rating* 1.Opportunity of high profitability 2.Opportunity for expansion in the whole country 5 4 1. Global financial crisis is a threat 3 Socio-Cultural Environment Scenario: In Australia, people from all diverse backgrounds live together. Most importantly, the country has not any official religion. Some of the major religions of Australia are Anglicon, Roman Catholic, Other Christian, Non-Christian and others (Esteves, Franks Vanclay, 2012). The literacy rate for adults in Australia is 99 percent. Three kinds of social classes can be seen in the societies of Australia. They are working class, middle class and upper class (Chen, Chiang Storey, 2012). The transformation of Australias society to industrial society is perfectly suitable for the new businesses. The social policies of the country are flexible and it provides businesses the opportunity to grow. Social policies allow the women to work freely and Ananas Anam can be beneficial from that (smh.com.au, 2017). Implications: List Opportunities Rating* List Threats Rating* 1. Strong purchasing power of the customers can lead to high profitability 2. high literacy rate is an advantage 5 4 1. Changing preferences of the customers is a threat 2. advertisement campaigns can be affected 5 4 Technological Environment Scenario: The technological advancement of Australia is significant. In the year of 2010-2011, the gross expenditure on the research and development activity of the country was $30 billion. From 1998 to 2005-2006, the number of internet users increased from 1.1 million to 4.7 million (Baker, 2012). The government of Australia has taken many important steps to promote technology like the development of export market, to grant fund for Innovation Investment, grant for research and development fund and many others. PINATEX is a kind of product that highly depends on technology for production. Looking at the technological development of Australia it can be said that this country is highly suitable to set up the business of Ananas Anam. Implications: List Opportunities Rating* List Threats Rating* 1. The business costs can be reduced with the help of technology 2. potential in the increase in business 3. Improvement in communication process 5 4 4 1. adoption of latest technology can increase the cost of the business 3 Contemporary Environmental Variables Scenario: Climate change and the introduction of invasive are the main reasons behind the environmental issues that are tearing the environment of the country. The result of this is fatal. These lead to the decline in distribution and abundance of many species, the scarcity of various natural resources, deforestation, overfishing and illegal fishing, the introduction of exotic spices, pollution and others. All these facts can affect the business operations of Ananas Anam (wwf.panda.org, 2017). Implications: List Opportunities Rating* List Threats Rating* 1. Complying with all environmental regulations increases the efficiency of the businesses 2 1.Extreme weather can increase the business costs 2. The demand can be decreased 3. complying with many regulations is a complex process 5 4 3 Legal Environment Scenario: It is important for the new companies or foreign companies to understand the regulatory obligations of Australia. The main objectives of Australian legal system ate to ensure fair competition in businesses, to provide sufficient protection to all business parties and to maintain the integrity of the Australian business market (Bagley, 2015). The business laws of Australia are highly flexible and the new companies do not have to face difficulties in setting up new businesses (Hamilton Webster, 2015). Implications: List Opportunities Rating* List Threats Rating* 1.Competitve laws ensure healthy competition in the country 2.Consumer laws provide the scope of fair business 3. Privacy laws help to keep the various business information safe 4 4 4 1.Complying with all the laws is a complex process 2. Not complying with these laws can put the businesses in serious trouble 5 4 Competitive Forces Some major leather product manufacturing companies are there in Australia that can be the major competitors of Ananas Anam. The details are given below: Competitors Competing products BDM Leather Canvas Pty Ltd Tool bags, Canvas Products and others Clobber Australia Leather boots, slippers, scuffs and others Planinsek Fur and Leather garments and accessories SIRICCO Leather bags, shoes, jackets, bags, accessories and others Conclusion From the above environmental analysis of Australia, it can be said that Australia is a suitable country for the setting up of new businesses. The stable political condition of the country will help the business of Ananas Anam. It can be observed that the economic condition of the country is one of the main drivers of success for the foreign companies. The technological and legal condition of the country is highly favorable for the new businesses. 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