MARKETING MANAGEMENT

IMPORT EXPORT AND PESTEL

ANALYSIS ASSIGNMENT

Submitted By:-
SUSHEEL KUMAR S S Submitted To:-
Reg No. : 201286 Prof. LAKSHMI KANNAN
Section : D
Batch : 2020-2022
 IMPORT OF WOOD FROM AUSTRALIA

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​Import conditions:
All imported timber, wooden articles, bamboo and related products (whether for commercial or personal use) must comply with
the import conditions as stated on the department’s Biosecurity Import Conditions System (BICON).
It is the responsibility ​of importer​s to ensure that their products meet the import conditions. Failing to meet import conditions may
result in delays, additional costs, and, in some cases, the re-export or destruction of the goods at the importers expense.
The import conditions set out in BICON include requirements for you to demonstrate that pest risks are mitigated through the
manufacturing process or through approved treatments. The department verifies that biosecurity risks have been adequately
addressed by assessing evidence of compliance in documentation and/or by inspecting the goods when they arrive in Australia.
Requirements relating to illegal logging:
For timber and timber products, you may also be required to take steps to ensure that the wood is low risk of having been illegally
logged.
Complying with import conditions is important:
The​import conditions set out in BICON protect Australia from exotic pests and other biosecurity risks. Australia enjoys freedom
from many of the world’s most damaging pests and diseases. There are many exotic pests and insects that could hitch a ride to
Australia in timber, bamboo, wooden related products, and packaging and on cargo containers.
Even products that appear outwardly to be clean may harbour biosecurity risks because many timber pests occur within wood and
can be very difficult to detect in their egg or larval stage. If these pests establish in Australia they could have a detrimental impact
on our agriculture and forestry industries, natural environment, food security, timber in service (furniture, houses) and economy.
Report signs of pests in imported ti​​mber:
Everyone in the supply and retail chain has a role in recognizing and reporting any signs of pest activity in imported timber and
wooden related products, including furniture. It is possible for exotic pests that arrive in timber products in the egg or larvae stage
to go unnoticed for many years until frass (a sawdust-like substance produced by feeding wood boring insects) or holes appear.

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PESTEL ANALYSIS OF AUSTRALIA

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POLITICAL ENVIRONMENT IN AUSTRALIA
Australia is a constitutional monarchy with Elizabeth II (the Queen of the United Kingdom and the other Commonwealth realms)
as the head of state. The Queen of Australia is represented by the Governor-General at the federal level and by the Governors at
the state level. The Prime Minister is the head of government of Australia.
Canberra is the capital of Australia and Sydney is the largest city in the country. The total area of Australia is 7,741,220 square
kilometers that makes it the 6 th largest country in the world (Plecher, 2019). The neighboring countries are Papua New Guinea,
Indonesia, East Timor, the Solomon Islands, Vanuatu, and New Zealand.
Australia is a member of the Commonwealth of Nations, OECD, G20 and the World Trade Organization. It maintains a very close
association with the United States. It has a safe and stable political environment. However, it drew a lot of criticisms over a
number of issues in the past. For instance, its deportation laws were criticized by Justice Minister of New Zealand (Newshub,
2017). Similarly, the UN criticized Australia for its failures in areas such as the protection of human rights, Indigenous rights, and
the treatment of refugees (The Conversation, 2018).

ECONOMIC ENVIRONMENT IN AUSTRALIA

The next element to address in the PESTEL analysis of Australia is the economic environment. Australia is the 14 th largest
economy in the world.  It was relatively less affected by global lockdowns in 2020 and its GDP is expected to grow by 3.1% by
2022. Business investment, household incomes, and inflation are also expected to pick up gradually (OECD, 2020).
All companies in Australia are subject to a federal tax rate of 30% on their taxable income. However, small businesses pay a
reduced tax rate of 26%. This rate is expected to go down to 25% soon (PwC, 2020). Individual tax rates vary depending on the
income of the individuals.
Vehicles, machinery, mineral fuels including oil, refined petroleum, delivery trucks, electrical machinery and equipment,
pharmaceuticals, medical apparatus, precious metals, plastics and furniture are some of the key imports of Australia. On the other
hand, iron ore, gold, coal, natural gas, beef, wheat, financial services, educational services, and copper are some of its top exports.
The major trading partners are China, Japan, Germany, India, USA, Thailand, and South Korea (OEC, 2021).
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PESTEL ANALYSIS OF AUSTRALIA

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SOCIAL ENVIRONMENT IN AUSTRALIA
Australia is one of the best countries to live in the world in terms of wealth, education, health and quality of life. Compared to
other major economies, Australia has a relatively small population of around 26 million (Worldometer, 2021)). The life
expectancy for men is 80 years while 84 years for women. However, having more retirees and fewer people of working age is an
area of concern for the country.
Australia is one of the most multicultural and multiracial countries in the world. It has an important heritage from its indigenous
people who are believed to have migrated from Asia many thousands of years before the arrival of British settlers in 1788.
Australia adopted a policy of mass immigration after the Second World War; however, migration is a politically sensitive issue in
Australia.
Australia has a good number of public and private universities which attract a lot of international students every year. In fact,
international students now make up more than a quarter of enrolments at some universities in the country (Robinson, 2018). Most
of the international students come from countries such as China, India, Nepal, Malaysia, Vietnam, Brazil & Colombia.
Australians are generally lively, hardworking, and outward looking. They spend a lot of their spare time in playing or watching
sports. In fact, Australia is one of the world’s best in many sports e.g. cricket, hockey, and swimming. Its sport sector makes a
significant contribution to the country’s GDP.

TECHNOLOGICAL ENVIRONMENT IN AUSTRALIA

Australia is one of the most technologically advanced countries in the world. It is well-known for adopting new technologies at a
faster rate than many other developed countries. The country has witnessed an enormous growth in technology over the years.
Local companies are investing in technologies to meet the growing demands of their customers. Computers & equipment,
software, tech consultancy services, cloud, and artificial intelligence are likely to drive these investments which should result in
more innovation and designs. However, many analysts are of the view that Australia has a long way to go if it would like to
challenge tech hubs in Asia, Europe, the Middle East, and the US.

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PESTEL ANALYSIS OF AUSTRALIA

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ENVIRONMENTAL FACTORS IN AUSTRALIA
Australia is one of the most beautiful countries in the world with stunning beaches, mountains and forests. It is also widely known
for its brilliant biodiversity. In fact, more than one million species of plants and animals are found in the country. No wonder why
millions of overseas visitors visit the country every year!
However, Australia faces some environmental challenges. For instance, Australia is the driest inhabited continent on earth.
Likewise, climate change is also a great challenge. A recent Senate inquiry has concluded that climate change is a ‘current and
existential national security risk’ to Australia. Water insecurity, the spread of infectious diseases, and regional conflicts over food,
water and land are some of the potential outcomes of climate change.

LEGAL ENVIRONMENT IN AUSTRALIA

The last element to address in the PESTEL analysis of Australia is the legal landscape of the country. In order to ensure fair
trading for both businesses and consumers, Australia has fair trading laws, competition laws, and consumer laws. The Fair Work
Act 2009 is the primary piece of legislation that governs employment in the country. Likewise, privacy laws deal with how
businesses handle the personal information of their customers.

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“ Import of teak wood from Australia Import of timber from Australia

Import of lumber wood from Australia Import of Australian red cedar

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