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Group Members
Swapnil Baikerikar - 04
Avanti Darade12
Sayali Phatak44
Tushar Sadhye47
Nikita Watve - 55
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What does PESTLE Analysis mean?
Its Framework used to scan the organization's
external macroenvironment.
Letters PESTLE stands for-
I. PoliticalII. Economical
III. SocioCultural
IV. Technological
V. Legal
VI. Ecological
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Political Environment
Meaning- Political environment refers to the stability ofthe political environment & the attitudes of political
parties/movements.
This manifest in government influence on tax policies, orgovernment involvement in trading agreements.
In case of Australia, it is a liberal-capitalistic democracy.Here, the state keeps interfering substantially in theeconomy through various roles; for instance parliament
might decide to set up importation taxes aimed to protectthe national economy or environmental protection lawsaimed to protect the natural heritage of the country.
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How does Government intervene in International
Business? (Home country i.e. India)
Tariffs
Subsidies
Import quotas & VER(voluntary export restraints)
Currency controls
Local content requirements
Anti-dumping rules
Export financing Free- trade zone
Administrative policies
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Why businesses choose Australia (Sydney &
New South Wales)- Host Country
Sydneybusiness & financial capital
Strength , Stability & open Government
Time zone advantage
Favorable tax system
Competitive business costs
World class infrastructure & communications
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Economical Environment
Meaning :It refers to economic conditions, systems,
policies of respective country.
Economic factors that commonly affect businesses
include consumer confidence, employment, interestrates and inflation.
In case of Australia, it is one of the largest capitalist
economies in the world. It is dominated by service
sector. Economic growth is dependent on mining and
agriculture sectors.
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How does economic factors ( of home country
i.e. India) determines business conditions)
Economic condition
Economic system
Government Policies
Industrial policies Import export policies
Demographic factors:-
I. Population
II. Income levelIII. Age
IV. Demand etc.
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Why to do business in Australia? (host country)
Ease of doing business index: 10th rank
Continuous economic growth
Low unemployment
Contained inflation
Very low public debt
Strong and stable financial system
Open market with minimal restrictions
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SOCIO CULTURAL ENVIRONMENT
MEANING:
A set of beliefs, customs, practices and behavior that
exists within a population.
International companies often include an examination ofthe socio-cultural environment prior to entering their
target market.
Social environment has a great influence on the
international business environment.
Culture is a sum total of mans knowledge, beliefs, art,
morals, laws, customs and any other capabilities and
habits acquired by man as a member of society.
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Social environment
Collection of diverse people: Australia is a collectivity of
diverse peoples living in a relatively young society.
No official Religion: Anglicon 26.1%, Roman Catholic
26%, Other Christian 24.3%, Non-Christian 11%, Other
12.6%
Increase in level of Education: Today, Australians are
more highly educated than ever before.
British Australian Tradition: There has been a focus on
assimilating different cultural groups into the dominant
British Australian traditions.
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Cultural Environment
Factors that have shaped the national culture include the early small
female population relative to that of men, which is said to have laid
the foundations for a widespread ideology of mateship.
The involvement of Australian and New Zealand troops in World
War I has been characterized as the symbolic birth of the nation.
Australia is a Multi-Cultural Society.
English is the primary language used in Australia.
Within the framework of Australias laws, all Australians have the
right to express their culture and beliefs and to participate freely in
Australias national life.
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Technological Environment
Technological factors include technological aspects suchas R&Dactivity, automation, technology incentives and the rate oftechnological change. They can determinebarriers to entry, minimum efficient
production level and influence outsourcingdecisions. Furthermore,technological shifts can affect costs, quality, and lead to innovation.
Research funding :- Gross Expenditure on R&D was $30 billion in 2010-2011.There are a number of government grants and funding programs availableto assist Australian businesses develop and commercialize their IP, such as;
Export Market Development Grant
Innovation Investment Fund (IIF) R&D Tax Incentive, etc
http://en.wikipedia.org/wiki/R%26Dhttp://en.wikipedia.org/wiki/Automationhttp://en.wikipedia.org/wiki/Technological_changehttp://en.wikipedia.org/wiki/Barrier_to_entryhttp://en.wikipedia.org/wiki/Outsourcinghttp://en.wikipedia.org/wiki/Innovationhttp://en.wikipedia.org/wiki/Innovationhttp://en.wikipedia.org/wiki/Outsourcinghttp://en.wikipedia.org/wiki/Barrier_to_entryhttp://en.wikipedia.org/wiki/Technological_changehttp://en.wikipedia.org/wiki/Automationhttp://en.wikipedia.org/wiki/R%26D -
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New Discoveries and Inventions
Here are some of the highlights of Australias GreatestTechnological Achievements.
Refrigerator
Electric Drill
Black box Flight Recorder Bionic Ear
Xerox Photocopying
Wifi
Lawn Movers Anti Hacking Software Kernel, etc
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Transport
There are many differing forms of transport operating in Australiafor carriage of passengers and goods. There is a general reliance onroad transport and the country is networked with about 900,000 kmof roads. Private road haulage contractors compete to some extentwith railway freight systems within and between states, particularly
for agricultural products and minerals transport to ports. The railnetwork consists of over 40,000 km of track in total. Publictransport is not as well developed in Australia as many other firstworld nations, for example none of the capital cities boast fullyfledged metro rail systems and while the capital cities are connectedto each other by rail services, they are not high speed services.
Passengers and freight are also transported extensively by airbetween the 450 or so airports and airstrips around the country,particularly for business travel.
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STEPS BEFORE SETTING UP OF
BUSSINESS
Registering as a foreign company
Obtaining business premises in Australia
Source of Finance
Exchange control
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Australian Business Taxes
CORPORATE TAX
Goods and Services Tax (GST)
Capital Gains Tax
Other business taxes
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Import and Export Regulations
Australia is a member of the world trade organization and has
undertaken not to raise tariff above level agreed in trade
discussions.
Businesses considering importing should be aware of
government regulations, duty taxes, permits that apply to
imported goods. Imports that do not meet these requirements
can be seized by the Australian Customs and Border Protection
Service.
Exports are rarely subject to any form of tax in Australia.
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Intellectual Property Rights
Patent protection
Trade mark protection
Copyright protection
Government Incentives and Grants:-
The Australian government offers a wide range of grant schemesand incentives to promote and develop foreign investment inAustralia.
The Australian Trade Commission (Austrade) is a dedicatedgovernment agency that seeks to promote and support productiveforeign investment into Australia. The incentives offered take a widevariety of forms including taxable grants, tax relief or the provision
of infrastructure services at discounted rates. Laws relating to competition and unfair trade practices
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Ecological Environment
Ecological environment refers to all living and non-living thing around uswithin which we live and work. People have a two way relationship withthe ecological environment. An individual lives and work is affected by theecological environment he or she lives in. At the same time ecologicalenvironment gets affected by the people in it.
Managers must take into account the ecological factors in their decision-making. By ecology one can understand the relationship of people andother living things with their environment, such as soil, water, and air.
Land, water, and air pollution is of great concern to all people. Land maybe polluted by industrial waste such as packaging. Water pollution may becaused, e.g., by hazardous waste and sewage. Air pollution can be caused
by a variety of sources, such as acid rain, vehicle exhaust fumes, andcarcinogens from manufacturing processes.
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Water: It's hardly surprising that on the world's driest
inhabited continent, experts are concerned about how
Australia looks after its water.
Climate change: It may be a global issue, but when
scientists across the world are asked what the effects of
climatic change will look like, they quickly point to
Australia.
Energy:Australians are replacing fossil fuels by
renewable powers like solar, wind, marine, etc.
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thank you