Environmental analysis of Australia viz- Social, technological and global environment.
BRCM COLLEGE OF BUSINESS ADMINISTRATION
LIBRRARY ASSIGNMENT 2013-14
TOPIC: STUDY OF TECHNOLOGICAL, SOCIAL AND GLOBAL
ENVIRONMENT FOR AUSTRALIA
106- VARUN BHUVA
132- VISHAL LAKHANI
133- RAKHI LODHA
SUBMITTED ON -18TH FEBRUARY, 2014
SUBMITTED TO – MS. MANSI THAKKAR
Australia is the sixth biggest country in the world and the smallest continent. It lies
between the Pacific and Indian Ocean, about 3,000 km from the mainland of Asia.
Australia is often called Down Under because the whole continent lies south of
the equator .
All the world’s climates are found on the continent—from the tropical rainforest in the
north to the cool and temperate climates in the south and southeast.
The continent is also one of the richest countries in the world. It produces wool and
meat on one side, as well as gold, bauxite and other minerals on the other. Australians
have a high standard of living
Size : 7.7 million square kilometres
Population : 19 million
Capital : Canberra
Biggest Cities : Sydney (3.7 m), Melbourne (3.1 m)
Flag : A British flag with five small stars that show the Southern Cross . One large
star represents the country’s six territories.
Money : The Australian Dollar
The country is divided into 6 states and two territories.
Introduction to socio cultural environment
o The social environment, social context, socio cultural context, or milieu, refers to the
immediate physical and social setting in which people live or in which something
happens or develops. It includes the culture that the individual was educated or
lives in, and the people and institutions with whom they interact.
o The interaction may be in person or through communication media, even
anonymous or one-way, and may not imply equality of social status.
Introduction to socio cultural environment of Australia
Socio cultural environment of Australia includes following:
1. People, culture and lifestyle
Australia is a product of a unique blend of established traditions and new influences.
The country’s original inhabitants, the Aboriginal and Torres Strait Islander peoples,
are the custodians of one of the world’s oldest continuing cultural traditions. They have
been living in Australia for at least 40 000 years and possibly up to 60 000 years.
The rest of Australia’s people are migrants or descendants of migrants who have
arrived in Australia from about 200 countries since Great Britain established the first
European settlement at Sydney Cove in 1788.
In 1945, Australia’s population was around 7 million people and was mainly Anglo–
Celtic. Since then, more than 6.5 million migrants, including 675 000 refugees, have
settled in Australia, significantly broadening its social and cultural profile.
Today Australia has a population of nearly 23 million people. At 2009, about 25.6 per
cent of the estimated resident population comprised those born overseas. Australian
Bureau of Statistics projections from the 2006 census of the numbers of Aboriginal and
Torres Strait Islander people suggest and Indigenous population of 575,552 people at
30 June 2011.
Many of the people who have come to Australia since 1945 were motivated by a
commitment to family, or a desire to escape poverty, war or persecution. The first
waves of migrants and refugees came mostly from Europe. Subsequent waves have
come from the Asia–Pacific region, the Middle East and Africa.
Migrants have enriched almost every aspect of Australian life, from business to the arts,
from cooking to comedy and from science to sport. They, in turn, have adapted to
Australia’s tolerant, informal and broadly egalitarian society.
2. Shared values
The defining feature of today’s Australia is not only the cultural diversity of its people, but
the extent to which they are united by an overriding and unifying commitment to Australia.
Within the framework of Australia’s laws, all Australians have the right to express their
culture and beliefs and to participate freely in Australia’s national life.
At the same time, everyone is expected to uphold the principles and shared values that
support Australia’s way of life. These include:
respect for equal worth, dignity and freedom of the individual
freedom of speech and association
freedom of religion and a secular government
support for parliamentary democracy and the rule of law
equality under the law
equality of men and women
equality of opportunity
a spirit of egalitarianism that embraces tolerance, mutual respect, and compassion
for those in need. Australia also holds firmly to the belief that no one should be
disadvantaged on the basis of their country of birth, cultural heritage, language,
gender or religious belief.
3. An egalitarian society
In most practical ways, Australia is an egalitarian society. This does not mean that
everyone is the same or that everybody has equal wealth or property.
But it does mean that there are no formal or entrenched class distinctions in Australian
society, as there are in some other countries. It also means that with hard work and
commitment, people without high-level connections or influential patrons can realize
The unemployment rate is relatively low (in December 2007 it was 4.3 per cent) and
the gross per capita income is around $39 000. All people are equal under the law in
Australia and all Australians have the right to be respected and treated in a fair manner.
All people in Australia are encouraged to learn English, which is the national language
and an important unifying element of Australian society.
However, languages other than English are also valued. In fact, more than 15 per cent of
Australians speak languages other than English at home.
The most commonly spoken languages after English are Italian, Greek, Cantonese,
Arabic, Vietnamese and Mandarin. Australians speak more than 200 languages,
including Indigenous Australian languages.
5. Religious worship
Australia is a predominantly Christian country, with around 64 per cent of all
Australians identifying as Christians. However, most other major religious faiths are
also practiced, reflecting Australia’s culturally diverse society.
Australia’s earliest religious or spiritual beliefs date back to the Aboriginal and Torres
Strait Islander peoples, who have inhabited Australia for between 40 000 and 60 000
Australians have their own unique religious traditions and spiritual values.
Australia has no official state religion and people are free to practice any religion they
choose, as long as they obey the law. Australians are also free not to have a religion.
6. Vibrant arts scene
Australia has a vibrant arts scene that reflects both the nation’s Indigenous cultural
traditions and its rich mosaic of migrant cultures. All forms of the visual and performing
arts have strong followings, including film, art, theatre, dance and music.
According to one survey, almost 13 million or 88 per cent of adult Australians attend at
least one cultural event or performance every year. The most popular art form is film,
attended by about 70 per cent of the population each year. More than 26 per cent
attend a popular music concert; 25 per cent go to an art gallery or museum; 19 per cent
see an opera or musical; 18 per cent attend live theatre; 11 per cent attend a dance
performance; and 9 per cent attend a classical music concert.
7. A national cuisine?
Australia has one of the most diverse cuisines in the world, thanks to Asian and
European migrant influences, a dining public that is happy to try innovative dishes and
access to a plentiful supply of fresh and high–quality produce.
Australia, one of the world’s most efficient agricultural nations, produces high–quality
vegetables, fruit and grains, meat, poultry, seafood, and cheeses and other dairy
The types of clothing that people wear reflect the diversity in Australian society and the
variations in climate. There are no laws or rules on clothing, but Australians are
expected to wear certain clothing in work situations—most workplaces have dress
Outside the work situation, clothing is a personal choice—people dress for comfort, the
social situation or the weather. Clubs, movie theatres and other places require people to
dress in neat, clean clothes and wear appropriate footwear. Australia does not have an
official national dress.
9. Celebrations and holidays
Most workers in Australia have around 12 national and state public holidays
throughout the year, in addition to their annual holidays.
i. New Year’s Day, which is on 1 January every year. The most common time for
people in Australia to take their annual leave is between mid-December and the end
ii. Christmas and Easter, two of the most important dates in the Christian calendar.
Christmas Day is on 25 December every year, while Easter is observed at some point
between late March and late April each year.
iii. Boxing Day, the day after Christmas Day, is also a public holiday.
iv. Australia Day, on 26 January, is the day Australians celebrate the founding of the
first European settlement in Australia in 1788.
v. Anzac Day, on 25 April, is the day the Australian and New Zealand Army Corps
(Anzac) landed at Gallipoli in Turkey in 1915 during World War I. This day is set
aside in memory of those who fought for Australia and those who lost their lives in
war. The day is a national public holiday and is commemorated with ceremonies,
the laying of wreaths and military parades.
There are also a number of other non-national holidays which are celebrated only in
specific states and territories (or celebrated in all states, but at different times of the
year). These include Labour (or Eight-Hour) Day and the official birthday of Queen
Melbourne Cup Day, which occurs on the first Tuesday of November each year, is a
public holiday in metropolitan Melbourne. The Melbourne Cup is a world-famous horse
race which brings Australia almost to a standstill. For a few minutes, most people,
whether at work, school or home, stop to watch the race on television.
More than 6.5 million migrants have settled in Australia since 1945. English is the
national language but other languages are valued.
Australia is predominantly Christian but people are free to practice any religion they
Around 88 per cent of Australians go to at least one cultural event each year. More than
11 million Australians aged 15 or over take part in sport or other physical activity.
Australia has one of the most diverse cuisines in the world but has no national dish.
Australian Consumer Law
The Australian Consumer Law (ACL) is uniform legislation for consumer protection,
applying as a law of the Commonwealth of Australia and of each of Australia's states
and territories. The law commenced on 1 January 2011, replacing 20 different
consumer laws across the Commonwealth and the states and territories. The text of the
law is a schedule to the Commonwealth Competition and Consumer Act 2010, which is
incorporated into the law of each state and territory by reference in separate fair
The provisions of the Australian Consumer Law broadly reflects the provisions
previously afforded by the Trade Practices Act 1974. The Australian Consumer Law also
generally reflects most of the consumer protection provisions of the fair trading
legislation in each state and territory.
Implementing identical consumer protection laws at Commonwealth and
state/territory levels promotes consistency between jurisdictions. It will also make it
easier for the Federal Parliament to amend the provisions which will then be reflected
in the laws of the states and territories without the parliaments of each jurisdiction
needing to debate and enact the amendments separately, although the states and
territories reserve the right not to implement any amendments within their own
The Australian Consumer Law includes:
A national unfair contract terms law covering standard form consumer contracts
A national law guaranteeing consumer rights when buying goods and services;
A national product safety law and enforcement system;
A national law for unsolicited consumer agreements covering door-to-door sales and
simple national rules for lay-by agreements; and
new penalties, enforcement powers and consumer redress options
Examples of corporate social responsibility
In Australia while doing CSR, major focus is given on two parts:
Giving back to our community gives us great pleasure. It's all about building a stronger,
more caring society, and everyone at Heinz( one of the largest company of Australia)
takes great pride in an active, exciting and effective program that includes:
1. community partnerships
4. product donations
Heinz has developed a number of strong corporate partnerships with organizations that
specialize in promoting the health, nutrition, and wellness of children and families.
One major event carried out in Australia was “Going green in Australia”
Heinz believe that complying with the law is the least one company can do. Heinz track
their progress by setting and monitoring environmental targets for every one of our
operations across the country. This is done through an Environmental Management
System that is audited annually at each one of our sites.
This audit helps them know how well we are doing in our efforts to decrease the
impact of our production operations through the more efficient use of energy, raw
materials, water and packaging.
they also make sure that all of our suppliers and contractors are also working towards
the same environmental goals. Every little bit helps us to improve our environmental
performance overall and increase the efficiency of our manufacturing operations.
Introduction to Technological environment
Technological Environment means the development in the field of technology which
affects business by new inventions of productions and other improvements in techniques
to perform the business work .
Introduction to Technological environment of Australia
Rules and Regulations related to implementation of technology
1. Ambient air quality standards
On 26 June 1998, the National Environment Protection Council (NEPC) made Australia's
first national ambient air quality standards as part of the National Environment
Protection Measure for Ambient Air Quality (the 'Air NEPM').
The NEPC is a statutory body with law making powers established under the National
Environment Protection Council Act 1994 (Commonwealth) and corresponding
legislation in the other jurisdictions. The members of NEPC are Ministers, not
necessarily environment Ministers, representing the participating jurisdictions (i.e.
Commonwealth, State or Territory Governments).
The Air NEPM sets national standards for the six key air pollutants to which most
Australians are exposed: carbon monoxide, ozone, sulfur dioxide, nitrogen dioxide, lead
and particles. Under the Air NEPM, all Australians have the same level of air quality
2. Emission standards
Australia does not have national air quality emissions standards. Environment
protection authorities in individual States and Territories set such standards.
You may wish to contact the local State or Territory environment agency for details on
the current emission controls/license conditions imposed on facilities in their
3. Rules related to patents on technology
Australian patent law recognises two principal types of patents: standard patents and
innovation patents. An applicant for a patent may elect to obtain protection for an
invention under either system.
a. Standard patents
A standard patent is the basic form of patent protection for inventions under Australian
law and is consistent with the minimum requirements for patent protection under
the Agreement on Trade-Related Aspects of Intellectual Property Rights 1994 (TRIPS
Agreement).Unless otherwise indicated, references to an Australian patent and
discussions of patent rights in this Report relate only to the standard patent system.
b. Innovation patents
The innovation patent is a ‘second tier’ of protection, which was introduced in 2001 to
replace the petty patent system. Innovation patents are intended to provide
protection for ‘lower level’ inventions for which standard patent protection is not
available and which are not covered by the designs legislation
Duration of patent protection
A standard patent generally has a term of 20 years, commencing on the date of the
patent; an innovation patent has a term of 8 years.
Australia's Environmental Technology A World Winner
Australia's environmental technology has been recognized at the 2005 World Expo
Aichi Japan with six companies winning awards, Acting Prime Minister and Trade
Minister Mark Vaile announced today.
The Global 100 Eco -Tech Awards, established by the Japan Association for the 2005
World Exposition, recognize 100 companies from around the world which contribute to
the resolution of global environmental problems and the realization of a sustainable
The Australian companies, and their award winning technologies, were:
i. Revolutionary photovoltaic solar cells manufactured by ORIGIN ENERGY SOLAR;
ii. MIEX Technology - Advanced Dissolved Organic Carbon Removal by ORICA
ADVANCED WATER TECHNOLOGIES;
iii. MetaMizer Clinical Waste Conversion Technology by MEDIVAC LIMITED;
iv. Heat pump hot water production by QUANTUM ENERGY TECHNOLOGIES PTY LTD;
v. Molectra Integrated Waste Tyre Recycling Technology by JOHN DOBOZY;
vi. Biolytix Waste Treatment System by BIOLYTIX ™ TECHNOLOGIES.
Impact of change in technology on Australian Economy
1. Structural Change in the Australian Economy
Over time, the structure of the Australian economy has gradually shifted away from
agriculture and manufacturing towards services, with the mining industry growing in
importance recently. Economic activity has also shifted towards the resource-rich
states of Queensland and Western Australia. Changes in the structure of the economy
have been driven by a range of factors including rising demand for services, the
industrialization of east Asia, economic reform and technical change.
The development and application of new technologies has also driven structural change
over recent decades, particularly in service industries. Since 1970, investment in
computers and software has increased exponentially in real terms, reflecting the rapid
improvement in the quality of computers over time and their range of uses. In the
finance industry, the adoption of technologies such as automatic teller machines and
electronic payment methods in the 1980s and 1990s resulted in significant structural
change. Improved transportation technologies and new business practices (such as just-
in-time production) are also likely to have resulted in better inventory management
and contributed to the reduction in the relative size of distribution services such as
wholesale trade and transport.
Over recent decades, firms in goods-producing industries such as manufacturing have
progressively outsourced a range of business services to take advantage of the
economies of scale generated when these services are pooled together and provided by
specialized firms. The outsourcing of services such as accounting, marketing and IT
support is also likely to have been hastened by improvements in communications
technology, together with increasing trade in services, which exposed service industries
to greater competition. As such, the resulting rise in service industries' share of the
economy may be overstated since it partly represents the measurement of activities
previously undertaken by the goods-producing industries.
The impact of technological change is primarily felt through the development of new
products and new methods of producing existing products or providing services. For
example, expansion of Australia's mining industry in the mid-1960s partly reflected the
development of new technology for extracting and transporting large volumes of
minerals at world competitive prices. More generally, with the pace of technological
change differing across industries both locally and overseas, there are likely to be
constant changes in relative prices, inducing shifts in the structure of production,
consumption and employment.
Advances in transport and communications have been important catalysts for change.
Lower costs of international transactions have helped to enhance the efficiency of
international markets, reduce consumer prices and increase international competition.
Increased exposure to goods of foreign origin has helped to stimulate greater
innovation in order to meet that international competition and has served as a conduit
for faster diffusion of technological progress and organizational change.
Changes in information technology have spawned the creation of computer hardware
and software industries. Increases in computing power have allowed information to be
processed in greater quantities and with more speed, increasing demand for
information services and underpinning advances in communication which have
assisted the process of increased international integration. Enhanced information
processing has also assisted in accelerating the spread of knowledge, potentially
advancing the rate of technological progress in a wide range of areas. These influences
accelerate changes in the types of goods and services purchased and how and where
they are produced.
So development in technology leads to development of services and mining business
and hence it led to increase in Output, employment, investment and Exports from
Agriculture Mining Manufacturing Services
1960’s 13 2 26 59
1980’s 6 6 19 70
2000’s 3 7 12 78
1960’s 10 1 26 63
1980’s 6 1 17 75
2000’s 4 1 11 84
1960’s 11 5 19 64
1980’s 6 11 13 70
2000’s 4 13 11 72
1960’s 62 15 9 14
1980’s 33 38 10 18
2000’s 18 42 17 23
Technology that changed whole Australia
One of the major technologies that changed Australia was the invention of the
telegraph. Prior to this technology being developed, Australia was very much isolated
from the rest of the world, unable to communicate immediately with other countries
and continents. Any news that came to Australia took weeks to arrive, because it came
via ships. When the Overland Telegraph line was completed in 1972, the southern
states were in contact with Darwin which was in contact with Java and the rest of the
world. The main line went to Adelaide, and communication and information could then
be sent out to Melbourne, Sydney, Brisbane, Perth and Hobart. Australia was able to
keep up with events as they happened, whereas before people only heard important
news when it was weeks or even months old.
Introduction to International environment
The term Globalization (or globalization) refers to processes of international
integration arising from the interchange of world views, products, ideas, and other
aspects of culture.
Advances in transportation and telecommunications infrastructure, including the rise of
the telegraph and its posterity the Internet, are major factors in globalization,
generating further interdependence of economic and cultural activities.
Introduction to International environment of Australia
Benefits for Australia from Globalization
When we focus on the impact of globalization and open trade on Australia, the benefits
are even clearer which are as following.
i. Australia's exports have grown three and a half times over the past 20 years, and
exports have increased as a proportion of Australian GDP - from just over 10 per cent in
1981 to nearly 20 per cent in 1999/2000. And it is estimated that if we could achieve a
reduction of 50 per cent in global protection, Australia would gain an economic boost of
more than $7 billion per year.
ii. The benefits for Australian community from reduced trade barriers and tariffs are
significant. Cuts in tariffs since 1986 have delivered gains of around $1000 per year to
the average Australian family. And tariffs still cost the average Australian farm over
iii. By pursuing trade liberalization over the years, Australia has produced a much more
productive and outward-looking economy, with more job opportunities and better
wages for workers. Around one in five jobs are now linked to exports, and in regional
Australia the figure is one in four. Jobs in the export sector also tend to provide better
wages and conditions: on average, exporters in manufacturing pay 25 per cent more
than those in non-export industries.
iv. Australia's textile, clothing and footwear industry is often cited as one that benefited
from tariff protection. In fact, during the ten years from 1974 to 1984, when the
effective rate of protection increased by an average of 12 per cent each year, TCF
employment fell by 3 per cent annually.
v. The flip side of this is that our manufacturing sector has actually increased its output as
tariffs have fallen. Employment in manufacturing since the recession of the early 1990s
has trended upwards, returning to the levels of the mid-1980s. Export growth in
manufacturing has been twice the rate of the mid-70s to mid-80s, and growth of
elaborately transformed manufactures has been even faster. And industries once
declared doomed by tariff cuts, like the automotive industry, have been turning in
world-beating performances. In fact, last year Australia exported almost $4 billion
worth in automotive products.
vi. Globalization has also opened the door to the benefits of greater Foreign Direct
Investment. Foreign Direct Investment gives Australian industry better access to the
latest technologies and helps to strengthen company profitability and jobs. It boosts
exports, giving Australian companies better access to distribution channels and
networks in international markets. For every dollar generated from Foreign Direct
Investment in Australia, 96 cents is retained in Australia - 50 cents of that in wages.
Disadvantages for Australia due to Globalization :
i. Because businesses will export cheap labor, the country will likely see a reduction in low
skill job availability. This can have negative effects on unemployment. After the industrial
revolution, latest technology required less manpower so that unemployment rises.
a. unemployment is now much higher than it was in the trade-regulated era. Between
1950 and 1970, the Australian unemployment rate seldom exceeded 1 per cent of the
work-seeking population. That rate has climbed to about 5.5 per cent, and is arguably
much more than that because the way unemployment is now measured is less
trustworthy than it used to be.
b. The reason that unemployment has increased is that trade liberalization caused the
closure of thousands of uncompetitive Australian manufacturing firms with the loss
of their jobs and the skills attached to them. The employment cost of transferring
manufacturing from Australia to Asia has been between one and a half and two
ii. Because some domestically (in country) produced goods may be more valuable to other
countries, they may rise in price in their native country (Australia).
iii. Because domestic investors can invest outside the country, it may be more profitable for
them to do so lowering investment in Australia's economy.
o The last time that Australia achieved an external current account surplus was in 1975,
and since that time continuing shortfalls in foreign earnings have been balanced by
borrowings, new foreign investment and the sale of Australian-owned assets. The
result has been an inexorable rise in net foreign debt and a steady erosion of national
iv. Another major damage of globalization is that some cultures are getting lost. Global
community is increasing, more and more people have become ignorant about social,
ethical and moral values which are various in defining groups.
1. Website of Australian government
2. Website of Reserve Bank of Australia
4. Wiki answers
5. Slide share