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MANAGING ACROSS

BORDERS
CONTENTS:

 1. Determine the environments of both the home and host


country

 Home country—Australia
 Social & Culture environment— Mumbai
HISTORY OF AUSTRALIA RETAIL
INDUSTRY

 1880s, as gold mining and wool and wheat exports created wealth,
the ‘well to do’ came to view shopping as a form of entertainment.
 In the first half of the nineteenth century, large department stores
became a prominent feature of the Australian retailing landscape.
 In the 1950s, the CBD department store model was at the height of
its success.
 In 1966, the ‘Big Six’ in Australian retailing were considered to be
Woolworths, Coles, Myers, Grace Bros., David Jones and Wantons
department store.
FORECAST FOR RETAIL INDUSTRY IN
AUSTRALIA

 More than 77,000 retailers in Australia

 Operating more than 200,000 retail outlets

 Producing more than $200 billion in annual sales

 Growing at more than 6% compound per year


TRENDS IN AUTRALIA RETAIL
INDUSTRY

 A move towards the concept of 'retailtainment.


 Factory outlet centers have become popular destinations in recent
years, as have ‘homemaker’ or ‘bulky goods’ centers.
 That more than 50% of the adult population is currently working
 The industry is characterized by a high degree of casual, part time
and seasonal employment and high staff turnover rates
MACRO-ENVIRONMENT—AUSTRALIA

 GEOGRAPHIC ENVIRONMENT

 ECONOMIC ENVIRONMENT

 SOCIAL & Cultural ENVIRONMENT

 POLITICAL & LEGAL ENVIRONMENT


GEOGRAPHIC ENVIRONMENT
 Location

 Area and Board :


 Total: 7,692 ,024 sq km
 country comparison to the world: 16
 land: 410, 977 sq km

 Natural Resources: Alluvial gold, bauxite, opal, coal (24


billion tons ), natural gas (Australia has trillions of tons of
estimated reserves), oil ( amounts to about 25 million barrels
per year), uranium ore (near Mount Isa and Cloncurry contains
three billion tons )

Source: Geoscience Australia. 12 January 2001.


ECONOMIC ENVIRONMENT
 In the second half of the twentieth century,
Australian trade shifted away from Europe
and North America to Japan and other East
Asian markets.
 In 2009, offers were made by state-owned
Chinese companies to invest 22 billion
dollars in Australia's resource extraction
industry.

 Main Industries: mining, industrial and


transportation equipment, food processing,
chemicals, steel
ECONOMIC ENVIRONMENT

 GDP stood at US$1055.9 billion - nominal - (2009)


GDP growth up: 0.2% - Q3/Q2 2009 and 0.5% Q3 2008/09
Agriculture: 3.8.%
Industry: 26.2%
Services: 70% (2005 est)

 Labor force: 10.844 million (Nov 2009)


Agriculture: 3.6%
Industry: 20.2%
Services: 75.1% (May 2005 est)
Mining: 1.1%
Main data source: CIA World Fact Book
CULTURE & Social Environment

 Most of Australia's rules relate to expressing equality.


 Egalitarianism is also expressed with the male Australian accent.
 In business, do not hype yourself, your company or your information.
 Exchanging business cards is common among professional workers.
 Informal clothing is appropriate when not attending business
functions. Casual pants are fine for both men and women.
 Australians are friendly and open, but directness and brevity are
valued.
 English is the spoken language
POLITICAL & Legal

 GST (Goods and Services Tax) is a value added tax of 10% on


most goods and services transactions
 Tourist refund scheme
 World Information Technology and Services Alliance (WITSA) is a
consortium of associations from the information technology (IT)
industry
 Further empoyler education essential
 Getting retailers “Fair work ready”
 SMES still in the dark over new IR laws—retailers turn to
industry association for clarity