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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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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 />

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