Create an Executive Summary using the following information for the report of investing in
Australia.
Investing in Australia
Economic Factors: Australia's economy, with a GDP of $1.4 trillion, is steady and diverse. The
nation is among the most prosperous in the globe and has a good standard of life. Mining,
agribusiness, and industries play a significant role in the economy.
Pros: Stable and diversified economy and High standard of living
Cons: Heavy reliance on mining, Agriculture and High labor costs
Political Factors: Australia has a secure government system and is a democratic nation. The
government has laws in place to safeguard investors and promotes international investment.
Pros: Stable political environment and Supportive government policies for foreign investment
Cons: Complex regulatory environment and High levels of bureaucracy
Infrastructure Factors: Australia's infrastructure, which includes highways, ports, and runways, is
well-developed. The nation has excellent global connections and a highly qualified labor
population.
Pros: Well-developed infrastructure and highly skilled workforce
Cons: High cost of living and Limited access to some regional markets
Cultural Factors: Australia has a multicultural culture that is varied. The nation exhibits a high
degree of invention and a strong sense of entrepreneurship.
Pros: Multicultural society and Entrepreneurial spirit
Cons: Geographically isolated from major markets and Limited domestic market size
Competence Factors: Australia's highly skilled workforce, robust education system, reliable
customs, and security system, and modern logistics infrastructure are significant advantages for
businesses.
Pros: Efficient logistics and transportation system.
Cons: For companies operating in some regions of Australia, logistics can be difficult and costly
due to the country's large size and remote locations.
Business Opportunities in Australia: Australia offers a wide variety of career possibilities in a
number of different industries. For our client, some possible company possibilities include:
Tourism:
Australia draws millions of visitors each year because of its stunning natural surroundings.
Investments in tourism-related companies like hotels, resorts, or trip operators may be considered
by our customer.
Food and Beverage:
Australia's food and beverage sector is expanding quickly, and there is a high demand for fresh,
cutting-edge goods. The confectionery bar company owned by our customer might do well in
this industry.
Technology:
With a highly skilled labor population, Australia has a flourishing technology industry. Our
customer might think about making an investment in tech-related companies, like those that
create software or engage in online sales.
Comparison with New Zealand
New Zealand is a small country with a population of only 5 million. The country has a stable
political environment, a strong tourism industry, and a high level of innovation. However, New
Zealand has a limited.
Create an Executive Summary using the following information for the .pdf
1. Create an Executive Summary using the following information for the report of investing in
Australia.
Investing in Australia
Economic Factors: Australia's economy, with a GDP of $1.4 trillion, is steady and diverse. The
nation is among the most prosperous in the globe and has a good standard of life. Mining,
agribusiness, and industries play a significant role in the economy.
Pros: Stable and diversified economy and High standard of living
Cons: Heavy reliance on mining, Agriculture and High labor costs
Political Factors: Australia has a secure government system and is a democratic nation. The
government has laws in place to safeguard investors and promotes international investment.
Pros: Stable political environment and Supportive government policies for foreign investment
Cons: Complex regulatory environment and High levels of bureaucracy
Infrastructure Factors: Australia's infrastructure, which includes highways, ports, and runways, is
well-developed. The nation has excellent global connections and a highly qualified labor
population.
Pros: Well-developed infrastructure and highly skilled workforce
Cons: High cost of living and Limited access to some regional markets
Cultural Factors: Australia has a multicultural culture that is varied. The nation exhibits a high
degree of invention and a strong sense of entrepreneurship.
Pros: Multicultural society and Entrepreneurial spirit
Cons: Geographically isolated from major markets and Limited domestic market size
Competence Factors: Australia's highly skilled workforce, robust education system, reliable
customs, and security system, and modern logistics infrastructure are significant advantages for
businesses.
Pros: Efficient logistics and transportation system.
Cons: For companies operating in some regions of Australia, logistics can be difficult and costly
due to the country's large size and remote locations.
Business Opportunities in Australia: Australia offers a wide variety of career possibilities in a
number of different industries. For our client, some possible company possibilities include:
Tourism:
Australia draws millions of visitors each year because of its stunning natural surroundings.
Investments in tourism-related companies like hotels, resorts, or trip operators may be considered
by our customer.
Food and Beverage:
2. Australia's food and beverage sector is expanding quickly, and there is a high demand for fresh,
cutting-edge goods. The confectionery bar company owned by our customer might do well in
this industry.
Technology:
With a highly skilled labor population, Australia has a flourishing technology industry. Our
customer might think about making an investment in tech-related companies, like those that
create software or engage in online sales.
Comparison with New Zealand
New Zealand is a small country with a population of only 5 million. The country has a stable
political environment, a strong tourism industry, and a high level of innovation. However, New
Zealand has a limited domestic market and is geographically isolated from major markets.
Economics: Australia has a much larger economy than New Zealand, with a GDP of over $1
trillion compared to New Zealand's $205 billion. Australia also has a more diverse economy,
with strong sectors in mining, finance, and tourism. New Zealand, on the other hand, is heavily
reliant on agriculture and tourism.
A large and diverse economy offers many opportunities for investment and growth. However,
higher costs of doing business, such as higher wages and rent, can eat into profits.
On the other hand, investing in New Zealand will result in lower costs of doing business,
especially in the agriculture sector, which could benefit our entrepreneur's candy bar business.
But, a smaller and less diverse economy means fewer investment opportunities.
Politics:Australia and New Zealand both have stable political systems and are generally seen as
good places to do business. However, there are some differences in their political landscapes that
could impact investment decisions.
Investing in Australia would have a stable government and legal system, as well as a business-
friendly regulatory environment, make Australia an attractive place for investment. However,
some investors may be concerned about political instability in the wake of recent leadership
changes.
Investing in New Zealand have a transparent and stable government that is committed to
attracting foreign investment. However, the small size of the country means that it may not have
the same level of influence in international trade negotiations as larger countries.
Infrastructure:Both Australia and New Zealand have modern and well-developed infrastructure,
including transportation, communication, and energy networks.
In Australia, there are a large and modern infrastructure network that is well-suited for business
and the cost of infrastructure development and maintenance is high.
Similarly, New Zealand also have a modern and efficient infrastructure network that is well-
suited for business. On the contrary, the small size of the country means that some infrastructure,
3. such as transportation networks, may be limited in scope.
Competence:Both Australia and New Zealand have well-educated and highly skilled workforces.
There is a highly skilled workforce that is well-suited for advanced industries such as technology
and finance in Australia. However, investors may expect high wages and competition for skilled
workers can make it difficult to attract and retain talent.
Whereas, in New Zealand, a highly skilled and adaptable workforce is well-suited for a variety
of industries. Despite that, the small size of the workforce may limit opportunities for growth in
certain industries.
Assumption, Reasons and Analysis
The entrepreneur's lack of clarity regarding the kind of company she wants to launch in Australia
suggests that her motivation for investing is not founded on a carefully considered business
chance. Instead, it might be inspired by individual passions or a wish to discover new options.
Starting a company or business in an international setting entails extra financial risk in addition
to possibilities. It will take more money, research, and evaluation of the industry and rivals to
enter the market with a new concept, product, or set of services. It is essential to conduct a
thorough study of the company and the place where it will be sold.
However, if we take into account Australia's advantageous EPIC structure, we can say that our
customer made the right decision in deciding to expand her candy bar company there, which
makes investing in Australia a wise business move. Additionally, the nation's
telecommunications, electricity, and logistics sectors are up-to-date and dependable,
guaranteeing that companies can run successfully and effectively.
Apart from the fact that Australia is a business-friendly nation and was ranked 14th on the World
Bank's list of "Ease of Business Countries" in 2021, financing the expansion won't be a concern
because she is wealthy and has already achieved success and financial success in her industry.
Confectionary Market Value
The Australian confectionary market from year 2014 was A$ 4,077,200.
On year 2015, it increased to A$ 4,188,300 with percentage growth of 2.7% compared to the
previous year. On year 2016, it increased to A$ 4,305,100 with percentage growth of 2.8%
compared to the previous year. On year 2017, it increased to A$ 4,459,700 with percentage
growth of 3.6% compared to the previous year. And on year 2018, it increased to A$ 4,623,100
with percentage growth of 3.7% compared to the previous year.
From year 2014 to 2018, the compound annual growth rate of the market was 3.2%.
Overall, the chocolate category has the largest confectionery market in Australia followed by
Sugar and Gum category.
Revenue in the Confectionery & Snacks segment amounts to S$16.56bn in 2023. The market is
4. expected to grow annually by 3.82% (CAGR 2023-2027).
In global comparison, most revenue is generated in the United States (US$299.50bn in 2023).
In relation to total population figures, per person revenues of US$628.80 are generated in 2023.
In the Confectionery & Snacks segment, volume is expected to amount to 1.43bn kg by 2027.
The Confectionery & Snacks segment is expected to show a volume growth of 2.7% in 2024.
The average volume per person in the Confectionery & Snacks segment is expected to amount to
51.54kg in 2023.
The site of the company or business's operations is one of the biggest and most crucial
considerations, aside from the business itself. The economic, political, infrastructure, and
competence elements that influence a nation's appeal as a location for business are discussed in
the EPIC structure study.
In the case of Australia, this structure highlights the country's strengths and potential as an
investment hub.
Economic
Economic Output:
Australia's GDP was approximately 1.5 trillion USD in 2021, making it the 13th largest economy
globally.
Potential for Future Growth:
Australia has a steady economy with the potential for growth in various industries, including
healthcare, technology, mining, and agriculture.
Ability to Attract FDI:
Australia is an attractive destination for foreign direct investment due to its stable political and
economic environment, skilled workforce, and modern infrastructure.
Exchange Rate Stability:
Australia has a floating exchange rate system, which ensures that the exchange rate is determined
by market forces, resulting in stability and a lack of exchange rate risk for investors.
Consumer Price Index (CPI):
Australia's CPI is low, reflecting stable economic conditions and favorable living standards.
Balance of Trade:
Australia has a positive balance of trade, with exports outweighing imports, making it a
favorable destination for investors.
Politics
Ease of Doing Business:
Australia is ranked 14th out of 190 countries in the World Bank's Ease of Doing Business report
for 2020, indicating that the country has a favorable business environment.Business registration
in Australia is a straightforward process can take only around 15 minutes through an online
5. application and will get confirmation within two business days. This business registration
process makes it easier for investors and future investors to develop businesses with less
complication and challenges that they may experience.
Legal and Regulatory:
Australia has a well-established legal system that provides investors with a reliable and secure
environment for doing business. Additionally, the government offers various incentives for
foreign investors, making it an attractive destination for investment.
Political Stability:
Australia has a stable political environment, which ensures a predictable and safe investment
climate for businesses.
Intellectual Property Rights:
Australia has robust intellectual property laws that protect investors' intellectual property rights,
making it a favorable destination for investors.
Infrastructure
Energy:
Australia has a reliable and diverse energy supply, with renewable energy sources accounting for
over 20% of the country's total electricity generation.
Telecommunications:
Australia has a modern telecommunications infrastructure, including high-speed internet and
mobile networks, ensuring that businesses can communicate effectively and efficiently.
Competence:
Labor Relations:
Australia has a highly skilled workforce, with a robust education system that produces highly
qualified workers. Additionally, labor relations are relatively stable, ensuring a reliable and
productive workforce.
Logistics Competence:
Australia has a well-developed logistics infrastructure, including modern ports, airports, and rail
networks, making it easy for businesses to transport goods.
Educational Level:
Australia has a highly educated workforce, with a high percentage of the population having a
tertiary education.
Customs and Security:
Australia has a reliable and secure customs system that ensures the smooth flow of goods and
services.
6. Recommendations
Overall, based on the EPIC analysis of the two countries mentioned above, Australia presents
numerous opportunities for investment. The country has a stable political and economic
environment, well-developed infrastructure, and a diverse range of business opportunities but at
a higher cost. New Zealand may be a more cost-effective option, but with a smaller economy and
workforce. As for the potential business ventures of our entrepreneur, both countries have strong
tourism industries that could support a candy bar business and our client's candy bar business
may also be successful in the growing food and beverage industry. However, the larger economy
of Australia, may offer more opportunities to expand into other markets and industries. Also, it is
essential to carefully consider the regulatory environment and navigate any bureaucratic hurdles
that may arise. Ultimately, the decision will depend on the specific goals and preferences of our
entrepreneur.
Australia presents a compelling business opportunity, and with the right strategy and planning,
our client may achieve significant success in the market. The country offers many advantages for
investors, including a stable political and economic environment, modern infrastructure, a highly
skilled workforce, and robust legal protections.
However, potential investors should also consider the country's reliance on commodity exports,
immigration policies, limited infrastructure in remote areas, and complex labor laws when
making investment decisions.