MMM710 A research guide for students on Overcoming GVC Challenges and Achieving SDGs

2. Executive summary

This individual report has critically analyzed the macro-environment and its factors that can facilitate or hinder Australian companies in pursuing offshore growth. So, the report has analyzed the cultural, political, economic, legal, and trade environments of Australia. The analysis has included the findings of the McKinsey & Company report, as well as used relevant academic, government, and industry reports to provide a comprehensive understanding of Australia’s position in terms of the global business environment. The report is divided into the following areas:

Cultural factors to leverage Growth: Australia is a multi-cultural country and follows cultural values and philosophies of easy-going, indirectness, helpfulness, etc. This cultural competence can act as a strategic asset that will facilitate Australian companies in entering diverse international markets. Australian business practices are fair, professional, and flexible, which makes it easy to align with global business standards. Hofstede’s cultural dimensions have ranked Australian culture to be high on individualism, masculinity, etc. By using this framework and its scores Australian companies can devise their management and operational strategies to perform well in the international market.

Political Stability and Situation: Australia is found to be a stable and democratic constitutional monarchy, with multiple states. It provides a safe and transparent political environment, as its political and economic risk is also low. Therefore, this political stability provides Australian businesses with reliable frameworks and reduced risks when venturing with international partners or planning to enter into global markets.

Economic Standing of Australia: The Australian economy is strong, as it has a positive and consistent GDP growth, high per capita income, and CPI trend, whereas, its inflation rate is low but unemployment rates are high, as many sectors lay off their employees in off-season periods and due to technological advancements. The Australian government has strong economic and foreign trade policies related to free trade, open markets, and foreign investment. This creates a favorable climate for companies to plan for business expansion.

Legal System of Australia: Australia's legal system focuses on common law, that provides a transparent and safe environment for Australian companies to align with international standards. The Australian la and regulatory compliances help to protect in terms of intellectual property, contracts, and business practices.

These are the main strengths of Australian businesses, while they may face weaknesses like: High operating costs, regulatory compliance issues, geographical distance, etc., which may create challenges, and impact the overall efficiency and business cost. Furthermore, the Australian business can gain benefits by seizing opportunities in emerging markets, especially free trade regions, like Asia Pacific. Also, by investing in technology and innovation, Australian players can make a difference in the international market. Lastly, Australian companies may face threats due to political situations in other countries, regulatory differences, geographical risk, and intense competition.

Overall, the report has presented the macro factors of Australia in detail. By strategically using this SWOT analysis, Australian companies can work on their strengths and weaknesses to achieve success in the global marketplace.