Key factors to consider before embarking into international business

Q1. Assuming you are working for an Australian company and the CEO has recently expressed interest to expand the business overseas. You are to research and outline relevant Australian (and international) standards, policies and guidelines for the CEO’s consideration by visiting.

1. Briefly explain what are the key factors that a company need to take into consider before embarking into international business? (see under Getting Ready for Export)

Cultural aspect is one of the most important factors for any kind of marketing situation. Thus, cultural situations need to be the centre key growing for any kind of e-commerce related website too.

As marketing is progressing through major shift in the business economy culture has a lot to do with the changing trends.

Putting up an unrealistic budget is also a global expansion territory which is very difficult to bear. One of the most important exchange rates and business tax is transaction revolves around low budget expansion needs to be kept rightly on mind before progressing with any long-term aspect.

Coping up with various laws in different countries is another realistic goal that should be set for any kind of business expansion. So maintaining any kind of business advisory one needs to make sure that the law abides by the situation highly.

Any kind of risk taking needs to be first and foremost expectant business and unforeseeable future fluctuations. Hence risk is one of the key developmental project works that needs to be maintained for any business.

1. Austrade has a new online tool i.e., International Readiness Indicator, to help Australian companies get into export. Why it is important for first-time Australian companies is encouraged to use this tool?(see under International Readiness Indicator)

Setting up a business in a new place has many disadvantages and blow on the economy. Avoiding all of these business repercussions for the future needs to be methodical and completely alright. Following the level of advantages give every Australian first time company to invest without suffering heavy losses and by protecting its assets in various government policies. This is the only concern for such variations.

1. What are the key elements of an export strategy? (see under Export Strategy)

Export circumstance which is related to a business is always directly proportional to the magnificence and magnitude of the enterprise.

Exporting a product calls a service demand much more accomplice than anything else. Apart than creating a market that is suitable and manageable there is hardly any reluctance in the distribution.

Following the customer closely always proves to be a profitable export business. This means that and export strategies for and marketed by contacting the direct customer and enhancing the target market representative’s assistance.

Competition in the market needs to be higher up and perceived before launching anything new and exporting these items out. As the competition of the market needs to be closely monitored, proper intelligence research drive should be focusing directly on developing the condition of export hub.

Regulation control and customs needs to be also kept in check if that has to be a proper distribution of export items in the market.

Free trade agreements (FTAs) are treaties between two or more countries that benefit Australian importers, exporters, producers and investors by reducing and eliminating certain barriers to international trade and investment. List four (4) of Australia’s free trade agreements (FTAs) in force.

Explain the role of the Organisation for Economic Cooperation and Development (OECD).

The organisation for economic cooperation and development uses many formats of information and enhances it out to the government authorities. The documentation from this website is taken and channelized into forming a global pattern which fights poverty and enhances prosperity through longevity of economic and financial stability as well as growth.

Why Australian companies should use Austrade’s International Readiness Indicator tool

Provide a brief discussion on the potential of e-commerce. (see under Export Marketing)

E-commerce business pave the path for a future. Thus, this business strategy seems to be widely popular still it is growing by a total of 11.9% in comparison to retail. Specialised social selling is a respect that is producing phenomenal results and complexities are diminishing from the system.

What are the costs to be included when setting export prices?(see under Export Pricing)

Setting a price of any item depends on many factors. Similarly exposed has a level of pricing method such as from the range to the credit to even the after sale prompt delivery fee lot of strategies that determine the value. Export costing is hence widely functional to quantity and price quality.

Briefly explain what is the Export Market Development Grants (EMDG) (see under Market Research)

The export market development is scheme which is led by the Australian government as an assistance program in the financial factors for country’s exporters. This grant is directly government and administered by Austrade.

Exporting means more opportunities, but also entails greater risks. Although the environment for international trade has changed substantially over the years, the risks that exporters face when selling their products and services in other countries remain essentially the same. Explain the following: (see under Risk Management)

Political risk

Political risk is a whole different factor where export needs to be monitored by good knowledge from exporting department.

Legal risk

Legal risks of course, involved in export and import both but this all can be provided situation stimulation.

Bribery, graft and corruption risk

This kind of misdemeanour is in fact, very common it can be avoided by providing employees enough quality sustenance.

Quarantine compliance risk

Hazardous products need to be first content and only then exported to the fullest extent by the possible allocation of Austrade rules.

Exchange rate risk

Situational risks such as exchange rate accomplice are in fact very common in most new boarding trades.

Non-payment risk

Not getting the proper payment after an export business can be clearly avoided if there is enough material to back up the process.

Social and cultural consideration risk

As immensely fixtures this is still a level of truth associates with the situation.

What are considerations when it comes to managing legal issues (see under Legal Issues)

Government sanctions

In case of government sanction involvement first taking care of the people work of one’s own company becomes the most primitive state.

Intellectual Property (IP) registration

Registering the cause causes a great liberty to any given situation at current location.

Dealing with terrorists

This happens to be a very strong opinionated background informing the lawyers first is the basic step.

Dispute resolution

Resolution of any dispute starts with assembles collaboration.

Foreign bribery

In case of any bribery assignment informing the legal head team first is the correct way to deal with such grievances.

Task 2

1. Choose an Australian company of your choice and assume you are heading the marketing department which you are tasked to provide a review to the CEO on which country would be best suited for its business expansion plans in e-commerce.
2. Browse the Australian Trade and Investment Commission and identify two (2) countries of your choice to determine for the company to expand its e-commerce business to.
3. Provide a brief on each countries’ background including its trade agreements with Australia.

Conduct an analysis on each countries’ business environment and rank each country’s business feasibility.

Name of Australian company

Associate traders

Company profile

Major level exporters in local level. Headed by a trial of businessman with the common drive.

E-Commerce profile that is going viral through export business and import distribution.

Business goals and direction

To grow as a potential resource in the export and import e-commerce all retail industry.

Current export activity(if applicable)

Mostly local and sometimes overseas export transaction.

Products/ service focus for export as an e-commerce business

Wide range of products from medical equipment and accessories to minor clothing line.

Target customers/ users

Mostly the retail segment is handled so customers are the direct users.

Overview international business analysis for two countries
Country name	Provide a brief market profile	What are the trade agreements with Australia?	Identify and analyse impact of economic, political, legal, social and cultural (rank each factor from 1 –poor, 2 – fair, 3 – average, 4 – good and 5 – excellent)	Overall country feasibility  (High, Moderate, Low)
Political climate	Economic condition	Legal requirement/s	Social & cultural consideration/s
New Zealand	The market is the most volatile one however it happens to be the most situational with the maximum number of users overseas.	Austrade rules in the Australia – New Zealand treating turn is absolutely followed.	3	4	5	4	high
USA	Has a lot of potential with users following up on new trends. With proper marketing advances the market can be in reached to a bigger level	Serious business pact is made through the Austrade rules and regulations in Australian USA impact.	2	3	3	3	moderate.

2. Provide a brief market review on the short-listed country mentioned above, on the following:
i. Market trends evaluation	Country’s market readiness for new e-commerce product/ service (consumer preference)	It will take some time to get the market warmed up but as e-commerce is already a prevalent industry growth is going to be easy.
Competitor considerations	There are many competitors to be considered but the entire market situation will be advantageous.
Market attractiveness in terms of fit and contribution to the company’s business? (opportunities)	Market attractiveness is surely going to contribute to a lot of the business module as it still needs a lot of prepping up.
ii. Country’s  current business environment	Political risk  (https://www.eulerhermes.us website)	The political aspect might not be the best but there is a lot of potential to it. It should be dealt with a lot of patience.
Financial stability (https://www.beri.com)	Stability can be achieved easily if once customers and more aligned to possessing export import transit business from foreign company.
Corruption risk (https://www.transparency.org)	Corruption is one of the deadliest factors so it can hardly be contained in any format.
Legal considerations in terms of human rights	This is not so prevalent and not factoring the business to a great deal.
Legal considerations in terms of labour relations	Labour relations are already on a top cultural aspect so much trajectory legal advice need not be imported in it.
Cross cultural communications considerations	Accent might be the only barrier to any business proposition of the company for future.

iii. Return on investment	Short-term(within 2 years)	Highly doubtful in achievement of high profit.
Long-term                   (beyond  2 years)	Prolong business transaction for 5 years and above will result in an established business with good returns.
Identify and analyze international marketing opportunities according to their likely fit with the organization’s goals and capabilities. Using the competitive advantage and market attractiveness analysis, rank each variable criteria in relevance if the competition is stronger or the company is stronger and negative or positive respectively.
i. Cost-benefit analysis on competitive advantages	Estimate the contribution these opportunities could present to the business	Competition is stronger		Company is stronger
Competitive advantages/ success criteria	1	2	3	4	5	6	7	8	9
· Market share			*
· Cost structure/ cost advantages							*
· Product/ service quality						*
· Technological know-how								*
· Marketing know-how				*
· Management							*
· Location/ distribution advantages						*
· Financial resources					*
· Own brands, patents, etc.			*
· Spare capacity							*
Average score  (add total score and divide by 9 to give the average)	6
Overall evaluation on current business and customer base summary (In your own words, what is your opinion on this analysis, i.e. is the competition stronger or is the company case stronger?)

ii. Cost-benefit analysis on market attractiveness	Estimate the contribution these opportunities could present to the business (cont.)	Negative		Positive
Market evaluation criteria	1	2	3	4	5	6	7	8	9
· Market size						*
· Market growth						*
· Branch profitability							*
· Innovation potential of industry				*
· Competition intensity								*
· Recession susceptibility					*
· Substitution danger							*
· Client loyalty								*
· Security of supply (materials/ spare parts).				*
· Regulatory/ public opinion risks						*
Average score  (add total score and divide by 9 to give the average)	7
Overall evaluation  on current business and customer base summary (In your own words, what is your opinion on this analysis, i.e. is the situational analysis is more positive or otherwise?)