Ultimate Guide to Doing Business in Australia


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5/4/2011 Hour long presentation for International Business Strategy Class SDSU

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  • Australian dollar/U.S Dollar is the fourth most traded currency pair globally.6th most traded overall.Banks are ranked 12th in the world in terms of financial security and AA rankings.Employment statistics
  • 1.22 trillian dollar GDP @ official exchange rate.13th largest GDP in the worldHigher GDP per capita than US, UK, Germany & FranceCan be attributed to relatively small population, so take that statistic as you may.71% of GDP is within service industry, 24.8% industry, 4% agricultureIn America 76% services, 22% industry, 1.2% agriculture
  • GDP similar to Mexico & South Korea, but obviously bounds below America, Japan, others.
  • Imports from US:Reactors, boilers, vehicles – not railway, medical instruments, aircraft, spacecraft, precious stones, fertilizers.
  • MiningCoal, Iron ore, goldAgricultureWheat, barley, sugarcane, fruits, sheep, poultry10th largest exporter of natural gas right behind USMajor BuyersChina 17.5% growing quicklyJapan 22.8%South Korea 8.3%US 5%Export Market Development GrantThe Export Finance & Insurance Commission assists Australian business that export goods or services with mainly Australian content
  • more franchising outlets per capita than any country in the world, and three times more per capita than in the U.S. Contributes to 14.8% GDPRetail industry is most successfulMust australianizeFast food restaurants tripled in the ’90s.
  • more franchising outlets per capita than any country in the world, and three times more per capita than in the U.S. Contributes to 14.8% GDPRetail industry is most successfulMust australianizeFast food restaurants tripled in the ’90s.
  • Auto Parts 600 cars per 1000 people in Australia, third highest in the world.Construction Machinery no duty fees from US (AUSFTA)Medical Equipment every major US medical company has a subsidiary in Australia.Renewable Energystregnth in solar power for isolated communities
  • Indonesia, Malaysia, The Philippines, Singapore, Thailand, Brunei, Burma (Myanmar), Cambodia, Laos, Vietnam, and New Zealand
  • Miningisstill a profitable industrybecause of the important exportation, but the major problemisthatthisindustryis not sustainable (diminution of ressources)Agriculture is for nowstill profitable because of australian good climateFinancial services: 4th sector in Australia’seconomy, and ideallypositionedat the center of asia-pacificregion.Clean energy: profitable because of the eco-friendlywave. Austrliancompanies or investing in order to improve and develop clean energy.
  • About 15 oil/natural gas projects also planned
  • Insert US AUST Picture
  • buddies
  • Will get picture
  • Ultimate Guide to Doing Business in Australia

    1. 1. The<br />ultimate<br />guide<br />for<br />doing<br />business<br />in<br />Australia<br />Jeanette Reyes, Rosa Mercado, Chloe Jubecourt, Clemency Rusek, James Frontera, Derrick Trees, Roman Feygenberg<br />
    2. 2. G’Day!<br />Government<br />Economy<br />Country Attractiveness<br />Profitable Industries<br />Cultural Dimensions<br />Etiquette<br />Do’s & Don’ts<br />Recommendations<br />Picture background<br />
    3. 3. Introduction<br />The time is now!<br />Few barriers to entry<br />We share a familiar legal and corporate framework<br />Sophisticated consumer and industrial demands<br />Straightforward business culture much like we’re used to here<br />Picture background<br />
    4. 4. Government<br />Constitutional Monarchy<br />Written constitution<br />Liberal Democratic <br />Common law <br />Efficient and transparent <br /> legal framework<br />Picture background<br />
    5. 5. Constitutional Monarchy<br />
    6. 6. Political Parties<br />Picture background<br />Liberal Party of Australia<br />National Party of Australia<br />Australian Labor Party (ALP)<br />Australian Green<br />Picture background<br />
    7. 7. Government Support<br /><ul><li>Australian Trade Commission</li></ul> (Austrade)<br /><ul><li>Investment Unit
    8. 8. Export Market</li></ul> Development<br /> Grants<br />Picture background<br />
    9. 9. Picture background<br />Currency<br />Currently: $1 = A$0.93<br />Picture background<br />
    10. 10. Economy<br />$1.22 trillion GDP in 2010<br />Higher GDP/capita than US, UK, Germany & France<br />17 years of continuous growth<br />≈75% of GDP is in the service industry<br />Picture background<br />
    11. 11. GDP<br />Picture background<br />
    12. 12. GDP<br />Picture background<br />
    13. 13. Imports<br />Machinery/transport equipment<br />Computer/office equipment<br />Telecommunications equipment<br />Crude oil & petroleum products<br />Picture background<br />Picture background<br />
    14. 14. Picture background<br />Exports<br />Picture background<br />Mostly “primary products”<br />Mining<br />Agriculture<br />Major Buyers<br />China, Japan, South Korea, India, US<br />“primary product”<br />Export Market Development Grant (July, 2010)<br />Picture background<br />
    15. 15. Setting-up shop <br />Franchising is very successful<br />14.8% of overall GDP<br />Must “ Australianize” to suit local market.<br />Picture background<br />Picture background<br />
    16. 16. I’m lovin’ it? <br />Picture background<br />
    17. 17. Companies in Australia<br />Picture background<br />
    18. 18. Leading Sectors for US investment<br /><ul><li>Aircraft & Parts
    19. 19. Automotive Parts and Accessories
    20. 20. Construction Machinery
    21. 21. Cosmetics & Toiletries
    22. 22. IT Services
    23. 23. Medical Equipment
    24. 24. Mining Equipment
    25. 25. Oil/Gas Machinery
    26. 26. Renewable Energy
    27. 27. Software
    28. 28. Travel/Tourism</li></ul>Picture background<br />
    29. 29. Leading Investor Countries<br />
    30. 30. Country Attractiveness<br />Picture background<br />Ease of Doing Business 2009<br />
    31. 31. Country Attractiveness<br />
    32. 32. Country Attractiveness<br />
    33. 33. Country Attractiveness<br />
    34. 34. Costs<br />Least costly countries in the industrialized world to base a business (4th)<br />Cost of office space in Australia is the lowest in the developed region<br />comparatively low energy costs (10th for oil)<br />Workforce is one of the most highly skilled and multilingual in the world (lower wages)<br />General Taxation is High (47.9% ranks 48th)<br />
    35. 35. Risks<br />
    36. 36. Political Risk<br />Picture background<br />
    37. 37. Politics & Corruption<br />Picture background<br />Political Freedom<br />Civil Liberties<br />Press Freedom<br />Corruption<br />United Nations Convention <br /> against Corruption <br /> (UNCAC)<br />Picture background<br />
    38. 38. National Risk<br />Picture background<br />ANZAC Pact<br />ANZUS Treaty<br />ASEAN Australia-<br /> New Zealand FTA (AANZFTA)<br />Singapore-Australia FTA<br />Thailand-Australia FTA (TAFTA)<br />Australia-U.S. FTA<br />Australia-Chile FTA<br />
    39. 39. Summary<br />Institute for Management Development (IMD) World Competitiveness Yearbook, 2010<br />
    40. 40. Risks<br />
    41. 41. Risks<br />
    42. 42.
    43. 43. Benefits<br />Strategic Location (proximity with Asia)<br />Rich in natural resources (oil & minerals)<br />Quotes….<br />
    44. 44. Benefits<br />
    45. 45. Benefits<br />
    46. 46. Free Trade Agreements<br /><ul><li>Australia-US Free Trade Agreement (AUSFTA)</li></ul>“Lily Pad”<br />ASEAN-Australia-New Zealand Free Trade Agreement (AANZFTA)<br /><ul><li>Currently in process of negotiating other FTA’s in Asia</li></ul>Quotes….<br />
    47. 47. Benefits<br />
    48. 48. Benefits<br />
    49. 49. Culture of Innovation<br />
    50. 50. Research Funding<br />
    51. 51. Benefits<br />
    52. 52. Profitable Industries<br /><ul><li>Agriculture
    53. 53. Building and constructions
    54. 54. Clean energy
    55. 55. Manufacturing
    56. 56. Financial and Professional services
    57. 57. Mining</li></li></ul><li>Profitable Industries<br />Mining,<br />Agriculture<br />Services,<br />Manufacturing<br />Clean energy,<br />Biotech<br />Development Intro Growth Maturity Decline<br />
    58. 58. Investing in Mining<br />
    59. 59. Mining Industry<br /><ul><li>Leader on the global industry
    60. 60. Industry revenues: $148,230.7 million (2010)
    61. 61. Expectedgrowth: 18,7% for 2010-11
    62. 62. Companystrategy: joint-venture or acquisition of Australian exploration companies</li></li></ul><li>Porter’s Five Forces: Mining<br />
    63. 63. Financial Services<br />Strategicgeographic position<br />Recognized as having the 3d best regulation of securities exchanges.<br />The 4th soundestbanking system in the world<br />Companystrategy: licensing<br />
    64. 64. Porter’s 5 Forces: Financial Services<br />
    65. 65. Clean Energy Industry<br />Population awareness of the importance of clean energy.<br />A vastposibility of clean energy:<br />Bio-energy<br />Carbon capture and storage<br />Geothermal<br />Solar<br />Wave and Tidal<br />Wind<br />Companystrategy: joint-venture or acquisition<br />
    66. 66. Porter’s 5 Forces: Clean Energy<br />
    67. 67. Agriculture Industry<br />Already a mature industry<br />Opportunities in the organicfarming to relaunch the industrygrowth<br />Nation’s top growthindustry in 2011<br />Over the last 5 yearsdemandisgrowingreallyfast.<br />Companyindustry: exportation, acquisition, greenfield<br />
    68. 68. Culture<br />Australia and U.S.<br />Language<br />Quotes….<br />
    69. 69. Hofstede’s Dimensions & Trompenaar’s Dimensions<br />Power Distance<br />Individualism vs. Collectivism<br />Uncertainty Avoidance<br />Masculine vs. Feminine<br />Time Orientation<br />Quotes….<br />
    70. 70. More Cultural Dimensions<br />Learned Needs Theory -> Motivation<br />nAff<br />nPow<br />Leadership Theories & Values<br />Charisma<br />Values<br />
    71. 71. Being a “mate”<br />Relationship and future business dealings<br />Quotes….<br />Quotes….<br />
    72. 72. Business Etiquette<br />Quotes….<br />Formal/Non-formal<br />Communication<br />Meetings<br />Presentations<br />
    73. 73. Negotiations<br />Direct<br />Pressure techniques<br />How decisions are made<br />
    74. 74. U.S. & Australian Similarities<br />Language<br />Diverse Economy<br />Regulation of Businesses<br />Australian securities and investment committee (ASIC)<br />IP Australia<br />Foreign Investment Review Board (FIRB)<br /><ul><li>Business Hours
    75. 75. Money Transactions
    76. 76. Communication/Travel</li></li></ul><li>Specific Adjustments for U.S. firms Operating in Australia<br />Currency<br />Manufacturing<br />Business Meetings<br />Australia in General<br />Quotes….<br />
    77. 77. Dining Etiquette<br />Business meals<br />“Going Dutch”<br />Barbie<br />Paying your “shout”<br />Tipping<br />Quotes….<br />
    78. 78. DO’s<br />DON’Ts<br />Shake hands quickly and firmly.<br />Remain at an arm’s length when conversing.<br />Take in Australia’s diverse culture.<br />Bring a gift if invited to someone’s home.<br />Be direct and to the point when talking business.<br />Talk about the weather and sports in Australia. <br />Shake with both hands or keep shaking.<br />Break eye contact with the speaker.<br />Go around saying: G’day, mate.<br />Bring a gift for business meetings or dinners.<br />Speak evasively and have long introductions.<br />Talk about anything that is critical of Australia.<br />
    79. 79. DON’Ts<br />DO’s<br />Schedule appointments with executive’s personal assistants.<br />Be patient with Australia’s casual attitude towards time. <br />Give facts, details, downsides, & benefits during negotiations.<br />Be modest and casual during negotiations.<br />Try Australia’s multicultural cuisine.<br />Insist on speaking to the executive directly to schedule.<br />Be late yourself.<br />Use aggressive sales techniques or try to overtly impress.<br />Be boastful or discuss your personal life.<br />Don’t Eat Vegemite. <br />
    80. 80. Recommendations for U.S. Firms Entering Australia<br />Timing is everything<br />Pick a product or service and stick with it<br />Opportunity<br />Conduct market research<br />Locals Only<br />Enjoy the journey!<br />Picture background<br />
    81. 81. Picture background<br />
    82. 82. Picture background<br />Picture background<br />Thanks!<br />Picture background<br />Picture background<br />