Australian Special Marketing, Human Resources,& Finance/Accounting Issues
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[edit] Special Marketing
[edit] Types of Marketing
Australia is the smallest continent on the earth. It is an island located in the Pacific Ocean. Australia consists of seven states. Most of the population density is in the eastern part of Australia. The majority of the people live in urban areas. The eastern coasts of Australia are covered with tropical rain forests, while the interior is dry with many deserts. Most of the population is concentrated in New South Wales, Victoria, and Queensland. For the traditional aspect of marketing, those three states are the best areas to market to because that is where most of the countries population is located. The climate in Australia is usually warm and arid which can also be taken into consideration to market a product. For example, surfing is a sport that a lot of Australians, both male and female, are involved in. In Australia surfer’s ages range from as young as 10 to well into their senior years of old age. The warm climate, long coast lines, sandbars, and plentiful reefs make Australia a surfer’s paradise.
Australians are known for their outdoor activities and healthy lifestyles. Along with surfing, they are big fans of football, also known as Australian rules, and rugby. Australians take huge pride in their sports because they are very competitive. Other outdoor activities they participate in are cricket, golf, soccer, rowing, sailing, cycling, fishing, swimming, volley ball and basket ball. Therefore the best place to market products is at sporting competitions, sporting areas, and on television during sporting programs. This type of marketing is the psychographic part of marketing.
It could be argued whether Australians are brand loyal or not. On one hand Australians are proud of their countries brands that are world famous such as surfing’s Billabong, and beer’s Fosters. However Australian’s personalities tend to look for the product that works the best and is the most reasonably priced. For example if an Australian would buy a surf board it would be for oneself or for a gift. They would look for whether the board would perform well or whether it looks good. Australians are usually enthusiastic, positive, and indifferent. Any brand that deals with the sport the Australians are most involved in will most likely have a buyer. Australians would want a quality item that is not too pricey for what it is worth. Most of the Australians buyer-readiness is based on whether or not they like the products. Australians who are 50+ are ready to buy anything that they might find useful or interesting to them and they have the income saved up already because they are retired seniors.
[edit] Evaluate segmentation
Consumers in Australia, as in any market, have specific needs and wants for a wide array of products that will enable them to sustain, enjoy and improve their lives. One particular product will not always satisfy every member of a population’s needs. Market Segmentation is necessary to figure out the needs & desires for various sub-sets in a population. To make sure segmentation efforts are effective & accurate one must evaluate the market segmentation strategy. Market evaluation is done by looking at each segment‘s accessibility, measurability and reasonability of size and weighing it with the costs and projected profitability with fulfilling each of segments needs.
One of the hardest parts in the segmentation process can be reaching a particular segment, which can be difficult based on the specific culture and language of its members. In Australia there is a high population of European decent 89.3%, of the total population. This population is known for being highly educated and boasts a 99% literacy rate across the country (ages 15 and above). This is good for American companies because many Australians will be accessible. Though Australia does have words specific to its members, marketing campaigns and promotional efforts launched in America will not require as much translation and minimal differentiation than other countries. Whether or not an American company should offer their particular product or differentiate their product to meet the specific needs of an Australian segment is based upon the product being offered and segment being assessed. Product differentiation can be expensive when expanding company operations into a new country. Being that most Australians are affluent and up to trends occurring in the United States many American products should require only minimal adjustments.
Australia does have several different segments that may require product or promotional differentiation. Segments that may require special adjustments in products or promotions include indigenous tribes such as the Aboriginal population. Specific segments like these have a culture, language and method of survival that can be very different from other general segments. It is believed that when Europeans first made contact with native Australians there were between 200-300 indigenous languages. Only about 75 have survived and an indigenous language remains the main language for only about 25% of the Australian population (50,000). Various indigenous segments in Australia may not be as significant as others, however depending on the product offered may prove profitable. It is necessary to assess the size and profitability of each specific indigenous segment based on demographic information, culture, and purchasing trends to clearly see if product differentiation would be profitable.
Resources
wikipedia.com
Australian Bureau of Statistics 1998 Special Article - The State of New South Wales
Australian Bureau of Statistics Website: http://www.abs.gov.au
[edit] Promotion Strategy
[edit] Marketing Laws
Marketing/Promotion Restrictions
Australia, akin to the United States of America, has many rules and regulations that govern the way businesses conduct a crucial part of their operation: Marketing. One regulatory act that has been receiving much recent attention is the Anti-Spam Act of 2003, in which the Federal Court of Australia holds the current record as of 2006 for imposing the highest penalty of $3.5 million dollars upon Clarity1 for breaches. Clarity1 was found guilty to have sent 231 million spam messages to 8 million email addresses since the act went into enforcement in Australia in April of 2004. Responsible for enforcing the Spam Act of 2003 is the Australian Communications and Media Authority, which provides information for consumers and businesses about the act and its implementation. The ACMA (Australian Communications and Media Authority) has set forth two relevant codes of practice that Australian business must take heed to, which include the eMarketing Code of Practice and the Spam Code of Practice that are coordinated by the Australian Direct Marketing Association, and the Internet Industry Association respectively. Of the two, the Spam Code of Practice is legislatively complex in which it imposes legal obligations on Internet and Email Service Providers to take corrective action to prevent spam from originating in Australia and to inform and authorize subscribers regarding the control of spam. The ACMA authority spans well beyond the reach of marketing by way of the internet, to include regulation of broadcasting, radiocommunications, and telecommunications. Hence the implementation of the do-not-call register in May of 2007, that some Australian business spend as much as $80,000 annually to ensure they do not call a registered number. Another piece of legislation that governs marketing conducted by Australian winemakers is the Australian Wine and Brandy Corporation Act of 1980. The act gave birth to what today is referred to as the Label Integrity Program. Because there is no way to prove true the label claim of wine vintage, variety, or regional source; the Label Intergrity Program seek to substantiate those claims. For all intents and purposes, The Label Intergrity Program is a tracking system that creates an audit trail, from the purchase of grapes to the finished good. The requirements set forth by the Label Integrity Program are in addition to other labeling requirements set down under Australian Federal and State legislation. The Australian Wine and Brandy Corporation Act of 1980 provides for a penalty no greater than $15,000 for a wine producer who “knowingly or recklessly” fails to make or maintain records as required or makes or maintains a record that is false, deceptive, or deficient. Keeping inline with alcoholic beverages is the often highly restricted promotion of alcohol products. In The New South Wales Liquor Industry Australia, binge drinking is a major public health issue especially affecting Australian youth. Hence the substantial amount of focus placed on alcohol advertising, among researchers and policy makers alike, thus generating efforts to establish some level of law that defines and penalizes unacceptable marketing practices of alcohol oriented Australian businesses. Such legislation sheds light on the existence of a Code of Practice for Responsible Promotion of Liquor Products which provides “a framework of practices which are considered acceptable and reasonable” for licensed premises who serve alcohol. Estimates suggest that more than $100 million per annum is spent on alcohol advertising in mainstream media. Alcohol advertising in Australia is governed by industry self-regulation and an “associated series of voluntary codes.” Conversely, the effectiveness of the Australian alcohol industry has been questioned in recent years by the public who insist on change in the code. In response, the industry, which sought to curtail the criticism and avoid external regulation, proposed a revised national Alcoholic Beverages Advertising Code. The improved code makes way for set practices regarding “promotion of alcohol at events, requires that staff and patrons must be of legal drinking age, promotional staff must not misstate the nature or alcohol content of a product, promotional materials given away at events must not target underage audiences and promotional materials must not link the consumption of alcohol with sexual, sporting, financial, professional or personal success, or encourage consumption patterns that are inconsistent with responsible consumption.” It is clear to see that even in Australia, no business function is more regulated than marketing.
Works Cited
[Jones SC, Lynch M. Non-advertising alcohol promotions in licensed premises: does the Code of Practice ensure responsible promotion of alcohol? Drug Alcohol Rev 2007; 26:477 - 485] Dilanchian, Noric. “Spam fines in Australia and legal compliance FAQ.” 26 June 2007. Hart, Cath. “Advertising for infant formula should be banned in a bid to improve breastfeeding rates to the World Health Organization standard.” 10 August 2007. Academic Search Premier: http://web.ebscohost.com/ehost/ InfoTrac Onefile: http://find.galegroup.com/itx Australian Government, Australian Wine and Brandy Corporation: http://www.wineaustralia.com Australian Government, Australian Communications and Media Authority: http://www.acma.gov.au
[edit] Media Availability
Australia has multiple media outlets available for marketers. There were around one hundred and four broadcast stations as of 1997. Those stations were being viewed over ten million televisions that same year. During 2006 it was reported that there was over fifth teen million people on the internet in Australia. For 2007 there is almost nine million internet hosts in the country. (1)
Australia has two major media outlets funded publicly. These two stations are the Australian Broadcasting Corporation (ABC) and the Special Broadcasting Service (SBS). Both of these stations broadcast on free-to-air television, the radio, and are online also. Along with these two stations, Australia has three major commercial broadcasters. These are the Nine Network, the Seven Network, and Network Ten. The Commercial broadcasters are seen over most of the country’s heavily populated cities. These are the main television sources due to only about twenty-five percent of Australian homes having access to pay television services as of 2005.
The Special Broadcasting Service Radio and Television Broadcasting Channel are used to reach out to the many cultures that have come together in Australia. It uses some of the best television programs from around the world. Subtitles are added to the programs by teams of local translators. During the mornings the channel will broadcast news from European and Asian countries. This allows many locals and tourist to keep in touch with what is happening in their countries of origin.
With ABC and SBS broadcasting free across the nation, through multiple forms of media, these are probably the best way to reach potential clients in the Australian economy. According to the Commercial Television Code of Practice, “a license holder of a commercial television licensee must ensure that 80% of the total advertising time broadcast in a year by the licensee, between the hours of 6 am to midnight, is occupied by Australian produced advertisements.” (2) This leaves little room for international marketers unless they are going to have their ads produced by Australians. If not produced by Australians then at least the creative and administrative aspects being handle by Australians in accordance with Television Program Standard 23 - Australian Content in Advertising.
There are other forms of good media outlets available. Australia has twelve national newspapers, thirty-five regional papers, and only one national daily paper (The Australian). There are also many magazines in circulation. The country has around two hundred and sixty-four commercial radio stations and over three hundred publicly funded stations. The SBS is of course one the major public stations. SBS radio is divided out to numerous community stations. This is great for marketers because they target specific ethnic communities and are staffed by locals. Australians are also not shy to using the internet. With so many active online users in the country this is a very valuable commodity for marketers to reach potential clientele. Just make sure that you are in accordance with the IIA Content Code of Practice. (3)
1.) https://www.cia.gov/library/publications/the-world-factbook/geos/as.html 2.) http://www.acma.gov.au/WEB/STANDARD/pc=PC_91808 3.)http://www.iia.net.au/index.php?option=com_content&task=category§ionid=3&id=19&Itemid=33
[edit] Cultural Preference
Culture is defined as, “a fuzzy set of mostly shared traits within a defined population,” and every country has certain aspects that significantly influence the business process and procedures. Australia has a substantial range of consumer perspective because it is a continent, country, and an island. In the seven states that comprise this nation there are numerous expectations of acceptable behavior and promotional strategy which all businesses must be knowledgeable of to succeed. The increase in revenue and company’s expansion rate are both favorable representations of the consumer’s response to the firm’s promotional strategy and technique for all products on the market.
Tourism is a large contributor to the wealth and employment of Australia. The Australian Government Department of Industry, Tourism, and Resources reported in 2005-06 the tourism consumption was worth nearly $81 billion and approximately 4.6 percent of the entire workforce was concentrated in this industry (www.industry.gov.au/tourism). In Australia, the widely accepted way to promote tourism is to become “less passive” and increase the global awareness of the Australian culture. For example, Tourism Australia recently embarked on a new marketing technique by changing their slogan from “A Different Light” to “Where the Bloody Hell are You?". In this advertisement the adventurous persona of the average citizen in the “Land Down Under” is used to pursue individuals to travel to their country by extending this 'Unique Australian Invitation' (Ward, 2006). Some individuals may be offended by the obscene words but the Travel Trade Gazette (23 June 2006) stated that this company had a worldwide increase of 71 percent in the number of website hits over four months (Ward, 2006). The goal of the majority of companies in the tourism industry is similar to Tourism Australia; they want to promote Australia through their vast, beautiful, and adventurous land. This includes variables like the Great Barrier Reefs, a variety of region specific wildlife, and the Aussie personality which enables them to differentiate from other vacation destinations around the world.
In the alcoholic beverage industry there are other factors which influence the choices of the Australian consumers. In a recent advertisement run by Jim Bean Whiskey, the lines of anticipated advertising were crossed and challenged with a more technology savvy approach by using the mobile phone capabilities and teaming up with SMS, a mobile phone company in Australia. The goal of both firms was to entice individuals with easy ways to win prizes which included five Holden V8 utes loaded with 50 cases of Jim Bean and cola beverages which was geared towards the newest target market of males between the ages of 18 and 39. This method of integrating products with text messaging promotions is more prevalent around the world today due to the increase in text messaging capabilities and usage by all individuals. Media Asia stated that there are “over 12 million mobile subscribers in Australia sending over 300 million text messages each month” (Petty, 2003). This is evidence enough that the Jim Bean Company is obviously heading in the right direction with their promotion strategies.
In the end, if a firm desires true success and domination, as all firms should in their strive to gain a monopolistic position in any country they penetrate, then in Australia they should allow the preferences in promotional strategy and technique desired by the chosen industry’s target market to guide them in their marketing journey. Whether the technique is to use shock value or challenge that industry’s status quo the consumers tend to become enticed by these methods rather than the traditional, predictable advertising in Australia.
References
Australia’s Tourism Industries Fact Sheet. Retrieved November 1, 2007 from http://www.industry.gov.au/content/itrinternet/cmscontent.cfm?objectid= 86562E5E-65BF-4956-BD7541205A8ED978&indexPages=/content/itrinternet/cmsindexpage. cfm?objectid=48A5DFEA-20E0-68D8-EDB550B8BD2CB714&indexType=crossindustry
Petty, S. (2003, Apr 18). One-to-one Marketing: Jim Beam ropes in men with SMS. Media Asia (p09, 0p). Retrieved November 1, 2007, from Business Source Premier Global database .
Ward, D (2006, June. 23). Australia’s Ad Makes a Splash. Travel Trade Gazette. Issue 2722, p10-10, 1/2p, 1c. Retrieved November 1, 2007, from Business Source Premier Global database .
[edit] Acceptable Levels of Persuasion
In this country analysis I’m going to inform you about the acceptable level of persuasion in Australia. After researching this country through various searches I’m led to believe Australia has a medium acceptance level of persuasion. For example, if they were graded on a scale from one to ten, Australia would land at 5.9. Depending on what product you’re trying to sell in their market determines their acceptance level. Unlike most African countries that are reluctant to new inventions, Australia citizens are little more open to new products, designs and activities. But there are some products that might not achieve good recognition which I will inform you about later in this report. Lastly, the last major factor that decides their acceptance level is their personal view of the product you’re trying to sell. Through various articles done on the by marketing institutions I’m led to believe that Australia has a medium overall acceptance level of persuasion. For instance, in Australia if you were creating a new product such as a bicycle that is used frequently as an object for transportation and for extreme sports. Because this product has already been established in their society and has minute threat to injury demonstrates a high acceptance level. It also does not have any obligations that must be met in order to use this object the only use for this object is to ride from destination A to destination B which doesn’t consider any license, age determinant and other restrictions that are required for the use of this product. In addition, special features such as nice rims, cushion seats and a radio may also increase their level of acceptance. Research shows that new technology has become a high selling point to consumers in Australia. Next is their openness to new ideas, products and activities which can be used as marketing techniques. As you know Australia has some distant friends who dominate the world of technology. Australia imports dominate the exports by a high percentage meaning they gain a lot of profit from other country businesses rather than their own businesses within their country. In addition, with so much products made out of the country coming into country makes the country more acceptable to their ideas, products and activities. Finally is the consumer’s personal view of the product you’re selling. In Australia, consumers tend to lean towards word of mouth rather than other communication devices such as televisions and radio stations. Other influences also include the persuading process; some products you might persuade them to buy may not reach agreement because of their religion, ethics and other preferences they have strong beliefs in. For instance, they have a very high acceptance level in technology, but if you’re trying to implement into their religion activities they become unwilling to accept these technology devices since religion is secret. 1. www.wikipedia.com 2. www.CensusBA.com
[edit] Distribution Strategy
[edit] Competition with others in channel
The ideal distribution strategy is one that focuses on consumer expectations of the distribution channel, the price at which they are willing to pay for a specific service, how services are supplied to them, and the benefits and costs of other distribution channels available. Upon further consultation, it can be deduced which distribution strategy will best meet the needs of consumers. To appeal to the consumer it is mandatory to offer a variety of options that instills a strong sense of competition resulting in improved efficiency and innovation from the companies themselves. The strength of competition in product markets plays a prudent role in promoting economic growth and fair prices. Previous inadequate competition in Australia’s economy is responsible for the decline in productivity in the mid seventies to the early eighties, the costs of government monopolies were “inflated by capital investment and over-manning and the goods and services produced by these businesses did not meet the standards sought by users.”(1) In response to these analyses, economic reforms began to rapidly occur in the late eighties to early nineties including: “marked reductions in barriers to trade and foreign direct investment, commercialization and privatization of government business enterprises”(1), and an overall strengthening of competition. To govern these reforms the National Competition Policy(NCP) was created in 1995, which stood as the “centerpiece of structural reforms.”(1) Reforms based on limiting interstate monopolies as well as openness to foreign trade and investment have improved domestic competition, and have been the underlying factors that have led to Australia’s economic growth. (1) The progress made by Australia since its introduction has been very satisfactory, however there still remains several competition restrictions placed on overseas shipping, liquor licensing, agriculture markets, and pharmacies, which need to be removed to promote growth. In previous years the electricity, gas and water division were controlled by “uncompetitive public sector monopolies.”(1) Once competitive pressure was applied to these monopolies there was a general decrease in the prices without negatively impacting quality. Coinciding with reduced trade barriers and lowered tariffs, there has been an increase in Australia’s “import penetration ratio”(1) due to international competition that was not prevalent in previous years. As shown, the introduction of competitive pressures and reduced trade barriers increased the overall productivity and living standards in Australia. Strong implementation of such competitive reforms enables the consumer to have the fairest price at the greatest quality, and promotes better business relations.
1. OECD Economic Surveys. (2004) Product market competition and economic performance (vol. 2004, no. 18, pp. 113-203)
[edit] National retail and wholesale structures available
With well known movies like 'Crocodile Dundee' and television shows like the Crocodile Hunter, many ordinary people in the U.S. may think that the Australian distribution strategy and retail structures may be very different than what they are used to. Actually Australia uses a Western style market economy and uses a very similar distribution strategy. Coincidently some of Australia’s national retail and wholesaler businesses also do business in the U.S.
In the U.S. if a company wants to distribute a product they would want to sell their product online, start their own stores or maybe even sell their product to a superstore like Wal-Mart. Although there are not any Wal-Mart’s in Australia yet, there are several companies who operate very similar to the supermarket giant. Two major supermarket competitors currently in Australia are Coles-Myer and Woolworth’s.(1) In Australia retail is big business, during 2005-06 retail sales of goods accounted for 75.9% ($221.9b) of total income, while wholesale sales represented 16% ($46.8b) of total retail industry income. (2) It is just a matter of time before Wal-Mart goes down under to mix up the competition.
Just like in the U.S. if one gets tired of walking through the giant labyrinth of supermarket department store isles, then another option is the Internet. This distribution technique is employed significantly in Australia. Its success can be seen by the increases over the last six years, since 1999-2000. The largest increase was recorded in the Household good retailing sector, up $407m. This was followed by the Food retailing sector, up $371.8m. The only decrease recorded in this period was in the Recreational good retailing sector, down $25.6m. (3) Several different economic experts predict that these economic increases will continue to rise as the internet becomes even more widely used.
There are many other retail and wholesale structures available in Australia. Some of these include Wholesalers, Trade Suppliers, Dropshippers, Distributors, Excatalogue Stockists, Surplus Suppliers, and Clearance Stockists. Small businesses also make up a significant percentage of the retail and wholesale structures. Considering all of the similarities, a U.S. company should feel very comfortable using the retail and wholesale structures available in Australia.
Works Cited 1. www. Smh.com.au 2. www.abs.gov/AUSSTATS/ 3. www.agimo.gov.au
[edit] Human Resources
[edit] Adaptability factors
By: Ralph Soto
For a few years now, Australia has been undergoing skill shortages in multimedia networks. They have lacked the necessary resources and funding to develop highly innovated multimedia tools. In addition, the people lack the necessary skills to comprehend how to maintain these systems. Realizing the importance of multimedia programs in the world and for the country, Australia tries to adapt. Instead of spending large amounts of money for training individuals, they decide to attract United Kingdom (UK) multimedia experts who they feel would be able to make a difference in the movement that Australia encounters. In recognizing multimedia skill shortages, Australia discusses the importance of supplying the country with skilled individuals. There were several discussions on how to help individuals learn and make a difference in the multimedia market. One discussion was on how multimedia systems can be used to educate individuals’ currently in school or in learning facilities. These systems are needed for simple things that we take for granted in the United States of America such as a projector. Another discussion was on how it is costly to maintain these types of systems along with updating new information. The lack of knowledge needed to produce or maintain these types of systems places a hardship on Australia, not to mention the high cost required to update an everlasting flow of new information. Therefore, in my opinion, if Australia took the necessary approaches to use the little resources and funds they have to help train and develop their own citizens, they would benefit more in the future. The country would gain by helping their people acquire skills at their own pace, gain the feedback and training quickly, and it also gives the people the confidence to learn at their own level. This is the least expensive approach and in the long run will benefit Australia more because these people who acquire these skills will pass them on to the future generations such as family members. Since Australia is willing to pay for each of these digital workers to relocate along with paying them high wages, they might as well just invest that money into the citizens of Australia. Innovation is a continuous trend in any market. If countries are not able to keep up with technology, eventually they will die. Multimedia is a broad occupation that consists of many specialties. For example, hardware developers, curriculum designers and trainers are a part of the specialties needed to maintain and create multimedia systems. Digital workers are also an important part of these factors and make up two thirds of senior positions available in Australia. According to the Australian media recruitment consultancy “The Ladder,” twenty of thirty employment positions are advertised for digital positions. Unfortunately, Australia does not have the necessary man power with the needed skills to adapt and maintain these types of systems. Therefore, they have gained approval from the Australian visa Bureau to relocate UK individuals who have the necessary skills needed to create and maintain digital systems.
http://www.aset.org.au/confs/iims/1992/edgar2.html http://search.rdsinc.com.ucfproxy.fcla.edu
[edit] Personal Characteristics
In this country analysis I chose to write about the personal characteristics of HR (Human Resources) in Australia. There was tons of information I obtained while doing this country analysis but, I will discuss the major issues that I thought would be beneficial to me. In today’s society most people don’t understand the purpose of human resources and that’s crazy. In my opinion, every organization depends on this department for growth, knowledge, and success. Well, in Australia there are plenty factors that I will mainly focus on such as Culture, Decision Making, Diversity, Policies, and EEO (Equal Employment Opportunity).
Well first, culture is very important in any country mainly Australia. For example, most businesses look at key points that managers as well as employees should work to enhance the knowledge of skills being passed on throughout departments. By looking at which departments are helping one another out, maintaining diversity, or improving customer satisfaction. Through diversity Australia’s future depends on mainly creating a tolerant corporate culture for a competitive advantage in markets. Also, by being more responsive to diverse ethnic groups of consumers and by improving decision making strategies towards the input from minority workers.
Second, Decision Making is another important characteristic shared in Australia throughout many businesses like call centers which is difficult to maintain. For example, choosing the right people for interacting with customers is very reliable in call centers. But, most of the time cost savings are a must so to maximize this feature, a company must depend on HR to balance the cost savings it takes to run the cost center and manage labor while maintaining the right people for the job.
Third, every business has to update their policies for success which will lead to a positive direction and maintain flexible response towards customers. This is a plus for companies in Australia because their policies provide principles through meanings in which every employee must follow. An important issue in Australia regarding this topic is EEO (Equal Employment Opportunity) which means to give all people a fair chance in selecting applicants on the basis of their skills and qualifications. Not by judging a person on their sex, race, or religion. It means to promote a healthy working environment that is free from racism, sexism, and sexual harassment. In my opinion everyone is treated fairly and equally through the EEO on the perception of their work performance.
This goes to show that changes in most areas of the world are taking effect everywhere either through safety rules, security issues, and ethical behavior. Don’t get me wrong the rules apply to everybody including employees as well as managers if not termination will be enforced. That’s why HR is steady changing its fast profession so everyone can understand and contribute to its successful business strategy. In conclusion, while doing my country analysis I think Australia’s future will solely be based upon not only by human resources but through organizations making better use of their employee’s skills and qualifications which will lead to success in the future.
www.wikipedia.com www.about-australia.com www.askjeeves.com
[edit] Culture Shock
The vastly expanding and developing country of Australia attracts corporations worldwide. Those firms seek to gain competitive advantage in one of the world’s fastest growing economies, according to the Organization for Economic Co-operation and Development. Corporations are concerned with how to send prominent employees overseas and how they will adjust to both the new environment and work values. From 2004-2005 there was an influx of 18,111 people in the professions whom arrived as visitors to Australian businesses (Williamson, 2007). Thus, introducing effective preventative measures for understanding differing cultural perspectives can help reduce the process of culture shock in Australia.
Because the country shares historical connections with the United Kingdom and the Western world; it is considered a western culture. Australia’s ethnic groups primarily consist of 92% white, 7% Asian and 1% other; making English 79.1% of their spoken language (CIA Factbook). Language barriers are therefore non-existent between cross-culture multinational corporations when the global language is English. There are in addition, two other predominant languages spoken; Chinese representing 2.1% and Italian making up 1.9%. In studies from 37 countries, done on ten different multinational corporations, researchers Margaret Shaffer and David Harrison found that “foreign language skill was the factor that most influenced the ability to rebuild a personal sense of identity and, as a result, achieve greater adjustment.”
Adjustment in social skills must also be considered for collectivist foreign nationals wishing to work where individualism is valued in the Australian workforce. The country ranked 90, in Geert Hofstede’s analysis of cultural dimensions, under the United States ranking of 91; a relatively high IDV index (Hofstede). The more individualistic a culture is the more aggressive and ambitious the culture will be, in regards to strong desires for personal work success, rewards and self-enhancement. However, Australian’s low rank on power distance (36) makes the workplace an informal atmosphere, as Aussies aren’t as concerned about ranks and titles. There also persists greater equality among social levels; accordingly, calling new people by their first name is one of the country’s cultural norms.
While Australian’s are similar to other western cultures it is their informality that sets them apart from the majority. While most Americans are sensitive about ethnic jokes, Australians value the ability of people to laugh at themselves indicating signs that they are comfortable in each other’s presence. Foreign nationals should not feel offended when greeted with what may seem like an inappropriately-timed joke. Sociable Australians tell jokes as a way to ease tension upon introducing themselves to new individuals. (Kramer, 1992) Therefore, it is important that cultural exposure be taken into consideration when sending employees abroad, preventing cross-culture isolation in Australia.
Cultural competence is an important factor in preventing the feeling of anxiety and confusion that result from culture shock. By adapting Hofstede’s analysis of cultural dimensions, human resources can utilize a thorough examination of the Australian corporate culture and implement training to ease the process of culture shock. Hence, achieving greater adjustment “is influenced by the ability to rebuild a personal sense of identity”; different cultural perspectives must be openly appreciated and understood.
by: Jacqueline Caldwell
Kramer, Hugh E. (1992). Doing Business in Germany and Australia: An Etic-Emic Study. Management Decision, 30(4), 52.
Talya N Bauer, Sully Taylor. (2001). When Managing expatriate adjustment, don't forget the spouse. The Academy of Management Executive, 15(4), 135-137.
Vicki Williamson (2007). Working across cultures. Library Management, 28(4/5), 197.
[edit] Repatriation
Repatriation is the process from moving back to your home country after living in another country for many years. The repatriation process in Australia has historically been a very hard and complex process, which differs a lot from the repatriation process of the U.S. and Great Britain in many different ways. It has been said that up to forty percent of repatriates return to the previous country they were living in or move to a new one within two years of starting the repatriation process. (Lloyd & Rees, 1994) This report will include some of the many problems that Australian repatriates face and some strategies they use to get past the repatriation process successfully.
The biggest problem that Australian repatriates face is how naive the recruitment consultants’ are about the value of international work experience. The recruiters do not know how to utilize all the skills and experiences that were learned by the repatriate. The repatriates also find it very hard to find out which companies have affiliations with international locations or those that which intend to start doing business internationally. The repatriates that are doing research for well known representative organizations often come to conclusion that the people working for these organizations lack the ability to understand their true value. (Ellson) Repatriates also get used to living their life beyond the comparative Australian wage, their wages in other countries may have included extra money for “hardship” loading and it is also probably a lot higher then where they used to live to live in Australia. (Ellson) Since the repatriates no longer fit the stereotype of being Australian they tend to find themselves left out, not mixing well with their old friends and also find it hard to find some other repatriates to become friends with. (Ellson)
One of the strategies used by repatriates when trying to adapt to the country again is they redefine their definition of success. (Ellson) They may have had high expectations of themselves where they used to work but find it is hard to match those expectations, so lowering the expectations such as trying a career they have always wanted to try and just to be happy will work to their advantage. Another strategy that Australian repatriates may use is to find out what has happened in the country since they have been gone. (Ellson) By doing this they have some interesting topics for conversations with friends and are on top of things about their country at the same time. When repatriates return to their home country they must know they have to watch what they say. It is not a very smart idea to just go up to someone and say that Melbourne is very old fashioned, unless they have asked about details of the country. Repatriates should use the strategy of not expecting too much from their families. (Ellson) The families have been living their own lives and moved into a direction that not does necessarily align with your direction, it is important to accept that the dynamics of the relationships have changed. (Ellson)
Works Cited Ellson, S. (n.d.). Newcomers Network. Retrieved from http://www.newcomersnetwork.com/mel/oursay/ouradvice/mbtm.php Lloyd, C., & Rees, J. (1994). The Last Shilling: a history of repatriation in Australia . Melbourne: Melbourne University Press.
[edit] Labor dominated or Weak
The Commonwealth of Australia is a moderately labor-dominated country set in between the Indian and Pacific oceans. It boasts one of the fastest growing economies in the world. Australia features 10.74 million working people, which include 75.2% in services, 21.2% specializing in industry, and 3.6% in agriculture. The unemployment rate is also about 5%, which has decreased from 8.4% in 1996 (2). Employment rates for younger workers are ranked among the highest in the OECD, while the employment rates of women have increased and male participation has decreased. The service segment has experienced an increase; the industry and agriculture segments have slowed. Australia does have an above-average portion of the population that have completed their tertiary education, while a large share has not completed upper-secondary education due to the customary commitment of citizens working full-time from the ages of 15-19. The unemployed do receive benefits (4). There are 67 labor unions in Australia. The most prominent labor union is the Australian Council of Trade Unions ACTU, which represents 2 million Australian workers and their families (1).
In most recent history the Australian Government established a public employment service in 1945 after World War II. This also created the Commonwealth Employment Service (CES) as well as the 1947 Social Securities Act, which protected the unemployed. The main purpose of the CES was to pair up the unemployed with available jobs. An unemployment increase in the 1970s spurred the creation of new Labor programs including training and development projects. After the recession in the 1980s, the focus came back upon labor and especially more training. In the 1980s, the government also modified the awards system. They felt that it was a big reason for their deficiencies and the hindrance of the adaptability of organizations and businesses to a changing economic environment. It also failed in improving employment expansion and improving Industrial stability. It is now a security web protecting low wage employees. One of the most important changes was the trade unions have a less significant role in agreements. The focus turned towards employers and employees making their own agreements called Australian Workplace Agreements. The AWA must be signed independently and must be verified by the Office of the Employment Advocate to make sure the employee is not at a disadvantage and truly agreed to the terms (4). Workers can also join unions if they choose to, although it is not required. Another major change has been enterprise bargaining, where wages and other conditions can be discussed and negotiated. These two changes have had a big impact on the power that the industrial tribunals have but still retain the authority to oversee awards. The Labor Market semi-deregulation has more importantly created cooperation between workers (5).
The Australian Government has laws in place to try to create job and labor security. There are laws that protect against racial, age, gender, and disability discrimination. The Government also sets in the minimum wage for all employees. There are many different races in Australia so it is important that they have protection. The Government also tries to enforce equal opportunity for all workers trying to become employed (3). Laws have also made executives and workers responsible for their actions in the corporate world. To keep shareholders first in mind, if an employee commits an unethical act, they can be sure to face severe consequences. Since Australia is comparable to that of a Western style economy, employees are faced with the pressures of more productivity. They feel the profits and losses. Companies have to deal with the increased diversity, in which management is trying to adjust to the different races of employees that are currently working. This is especially true since there has been an increase of immigrants from Asia that add to the diversity of the workplace. Management tries to maintain a long-term attitude in employees but it is tough since many workers do not stay at the their current jobs for very long.
Works Cited
1. Australian Council of Trade Unions. <http://www.actu.asn.au/>.
2. "Australia." The World Factbook. The Central Intelligence Agency. <https://www.cia.gov/library/publications/the-world-factbook/geos/as.html>.
3. Human Rights and Equal Opportunity Commission. 15 Oct. 2007 <http://www.hreoc.gov.au/>.
4. Innovations in Labour Market Policies: the Australian Way. Organization for Economic 5. Co-Operation and Development, 2001. 55-300.
Nieuwenhuysen, John, Peter Lloyd, and Margaret Mead. Reshaping Australia's Economy. Cambridge: Cambridge UP, 2001. 178-259.
[edit] Finance section
Australian Government Accounting
BY: Stephanie Cope
Australian international tax rules were drafted in the 1980’s and covered many aspects such as tax residence, controlled foreign corporations (CFC), foreign investment funds (FIF), and transfer pricing. In an attempt to attract more foreign investment to Australia, the Australian government proposed reforming the way they were taxing their residents and foreign companies. The proposals were released in May 2003. At that time the tax rules could have implied another layer of tax for ownership of foreign operations in Australia. Therefore the government created a conduit regime to propose amendments to how Australia taxes the profits from foreign operations. The regime’s main goal is to allow foreign source profits to pass through (the meaning of conduit) to foreign investors without implying the additional layer of tax (Scott, 2003). According to PricewaterhouseCoopers’ International Tax Review, the government passed a new law in June 2005 for conduit foreign income. This law removes Australian tax liability on foreign sourced income that is distributed to non-resident investors of foreign companies. Previously, the rules allowed an Australian company to distribute dividends to a foreign investor from foreign source profits without being subject to Australian Withholding Tax (Scott, 2003). With passage of the new law Australian companies will also be able to include foreign income that is not taxed in Australia, which were subject to the foreign tax credit rules, as conduit foreign income. Therefore it will be considered a source of profit and distributions can be made to non-resident investors from it. The government’s objective is to provide relief for all forms of foreign income and further broaden the circumstances so that conduit income can flow through Australian companies (PricewaterhouseCoopers, 2005). In keeping with their overall objective of attracting more foreign investment, the government setup new foreign tax credit and foreign loss rules in Tax Laws Amendment Bill 2007. These rules will remove classes of foreign income so that it is easier for taxpayers to claim foreign tax credits and foreign losses. Losses can be used against both foreign income and domestic income. The only downfall with the new rules is that foreign tax credits will be lost if not used in that income year. The rules can not become effective until July 1, 2008 and will apply to income years after that date (Morris, Hua, Clemens, Collins, & Crosland, 2007). Currently a foreign tax credit is available to an Australian taxpayer if the assessable income includes foreign income and the taxpayer has paid foreign income tax on the foreign income. Under the new rule, both Australian and non-resident taxpayers can claim a foreign income tax offset for an amount included in assessable income on which foreign income tax has been paid. This essentially means that the amount included in assessable income is not required to be “foreign income”. Presently foreign losses cannot be used to reduce domestic income and are determined separately under four classes of assessable foreign income. The new rules state that there will be no distinction between classes of assessable foreign income, a foreign loss, or a domestic loss when determining taxable income (Morris et al, 2007).
Works Cited
Morris,Chris; Hua Trinh; Clemens, Tony; Collins, Peter; Crosland, Vanessa. (2007, September). FOREIGN TAX CREDITS AND FOREIGN LOSSES NEW AUSTRALIAN RULES. Journal of International Taxation, 18(9), 15-16. Retrieved November 1, 2007, from ABI/INFORM Global database. (Document ID: 1337889651).
PricewaterhouseCoopers (2005). Implications of the conduit foreign income regime for foreign investors. International Tax Review,1. Retrieved November 1, 2007, from ABI/INFORM Global database. (Document ID: 936892511).
Scott, David (2003, December). Advantage Australia. Australian CPA, 73(11), 74-75. Retrieved November 1, 2007, from ABI/INFORM Global database. (Document ID: 525333381).
