5/4/2011 Hour long presentation for International Business Strategy Class SDSU

1. The ultimate guide for doing business in Australia Jeanette Reyes, Rosa Mercado, Chloe Jubecourt, Clemency Rusek, James Frontera, Derrick Trees, Roman Feygenberg

2. G’Day! Government Economy Country Attractiveness Profitable Industries Cultural Dimensions Etiquette Do’s & Don’ts Recommendations Picture background

3. Introduction The time is now! Few barriers to entry We share a familiar legal and corporate framework Sophisticated consumer and industrial demands Straightforward business culture much like we’re used to here Picture background

4. Government Constitutional Monarchy Written constitution Liberal Democratic Common law Efficient and transparent legal framework Picture background

5. Constitutional Monarchy

6. Political Parties Picture background Liberal Party of Australia National Party of Australia Australian Labor Party (ALP) Australian Green Picture background

8. Export Market Development Grants Picture background

9. Picture background Currency Currently: $1 = A$0.93 Picture background

10. Economy $1.22 trillion GDP in 2010 Higher GDP/capita than US, UK, Germany & France 17 years of continuous growth ≈75% of GDP is in the service industry Picture background

11. GDP Picture background

12. GDP Picture background

13. Imports Machinery/transport equipment Computer/office equipment Telecommunications equipment Crude oil & petroleum products Picture background Picture background

14. Picture background Exports Picture background Mostly “primary products” Mining Agriculture Major Buyers China, Japan, South Korea, India, US “primary product” Export Market Development Grant (July, 2010) Picture background

15. Setting-up shop Franchising is very successful 14.8% of overall GDP Must “ Australianize” to suit local market. Picture background Picture background

16. I’m lovin’ it? Picture background

17. Companies in Australia Picture background

19. Automotive Parts and Accessories

20. Construction Machinery

21. Cosmetics & Toiletries

22. IT Services

23. Medical Equipment

24. Mining Equipment

25. Oil/Gas Machinery

26. Renewable Energy

27. Software

28. Travel/TourismPicture background

29. Leading Investor Countries

30. Country Attractiveness Picture background Ease of Doing Business 2009

31. Country Attractiveness

32. Country Attractiveness

33. Country Attractiveness

34. Costs Least costly countries in the industrialized world to base a business (4th) Cost of office space in Australia is the lowest in the developed region comparatively low energy costs (10th for oil) Workforce is one of the most highly skilled and multilingual in the world (lower wages) General Taxation is High (47.9% ranks 48th)

35. Risks

36. Political Risk Picture background

37. Politics & Corruption Picture background Political Freedom Civil Liberties Press Freedom Corruption United Nations Convention against Corruption (UNCAC) Picture background

38. National Risk Picture background ANZAC Pact ANZUS Treaty ASEAN Australia- New Zealand FTA (AANZFTA) Singapore-Australia FTA Thailand-Australia FTA (TAFTA) Australia-U.S. FTA Australia-Chile FTA

39. Summary Institute for Management Development (IMD) World Competitiveness Yearbook, 2010

40. Risks

41. Risks

43. Benefits Strategic Location (proximity with Asia) Rich in natural resources (oil & minerals) Quotes….

44. Benefits

45. Benefits

47. Benefits

48. Benefits

49. Culture of Innovation

50. Research Funding

51. Benefits

53. Building and constructions

54. Clean energy

55. Manufacturing

56. Financial and Professional services

58. Investing in Mining

60. Industry revenues: $148,230.7 million (2010)

61. Expectedgrowth: 18,7% for 2010-11

63. Financial Services Strategicgeographic position Recognized as having the 3d best regulation of securities exchanges. The 4th soundestbanking system in the world Companystrategy: licensing

64. Porter’s 5 Forces: Financial Services

65. Clean Energy Industry Population awareness of the importance of clean energy. A vastposibility of clean energy: Bio-energy Carbon capture and storage Geothermal Solar Wave and Tidal Wind Companystrategy: joint-venture or acquisition

66. Porter’s 5 Forces: Clean Energy

67. Agriculture Industry Already a mature industry Opportunities in the organicfarming to relaunch the industrygrowth Nation’s top growthindustry in 2011 Over the last 5 yearsdemandisgrowingreallyfast. Companyindustry: exportation, acquisition, greenfield

68. Culture Australia and U.S. Language Quotes….

69. Hofstede’s Dimensions & Trompenaar’s Dimensions Power Distance Individualism vs. Collectivism Uncertainty Avoidance Masculine vs. Feminine Time Orientation Quotes….

70. More Cultural Dimensions Learned Needs Theory -> Motivation nAff nPow Leadership Theories & Values Charisma Values

71. Being a “mate” Relationship and future business dealings Quotes…. Quotes….

72. Business Etiquette Quotes…. Formal/Non-formal Communication Meetings Presentations

73. Negotiations Direct Pressure techniques How decisions are made

75. Money Transactions

77. Dining Etiquette Business meals “Going Dutch” Barbie Paying your “shout” Tipping Quotes….

78. DO’s DON’Ts Shake hands quickly and firmly. Remain at an arm’s length when conversing. Take in Australia’s diverse culture. Bring a gift if invited to someone’s home. Be direct and to the point when talking business. Talk about the weather and sports in Australia. Shake with both hands or keep shaking. Break eye contact with the speaker. Go around saying: G’day, mate. Bring a gift for business meetings or dinners. Speak evasively and have long introductions. Talk about anything that is critical of Australia.

79. DON’Ts DO’s Schedule appointments with executive’s personal assistants. Be patient with Australia’s casual attitude towards time. Give facts, details, downsides, & benefits during negotiations. Be modest and casual during negotiations. Try Australia’s multicultural cuisine. Insist on speaking to the executive directly to schedule. Be late yourself. Use aggressive sales techniques or try to overtly impress. Be boastful or discuss your personal life. Don’t Eat Vegemite. 

80. Recommendations for U.S. Firms Entering Australia Timing is everything Pick a product or service and stick with it Opportunity Conduct market research Locals Only Enjoy the journey! Picture background

81. Picture background

82. Picture background Picture background Thanks! Picture background Picture background