SWOT & PESTL analysis Essay
As the income tax for corporate is 30% , the income tax for individual is 20% of the total income and the commercial tax rate is around 5% to 30%. (Manner. Com 2011) 4. 7 Analysis High interest rate and high tax are the reasons to increase the capital of investment. The inflation rate and the currency exchange rate also show that the economic growth of Manner is increasing. It is difficult to entry the market and Manner cannot produce a free market for business as it is lots of barriers to avoid the investor coming. 5. Socio-cultural Environment 5. Hypotheses Cultural Dimensions (Egger Hefted 2009) Australia Manner Collectivism Vs. Individualism Very high Relatively low Power Distance high low Uncertainty avoidance Time orientation Very low medium Quality Vs. Quantity Medium 5. 2 Analysis In Collectivism Vs. Individualism, it is relatively high and got around 85% in Australia and Manner only got 51% that’s lower than Australia. A group works are good for Manner employees rather than having an individual works. In Power Distance, Australia is higher than Manner which got 31% and 25%.
It shows that the legislations are very well between managers and employees when Australia employees are less communications
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Manner workers do not get a positive respect from employers. Affording more welfare is recommended to employers to keep motivate for working. 6. 0 Technological Environment 6. 1 Technological infrastructure As Manner absence the basic technological infrastructure in their countries, but they get help from SEAN and two powerful countries such as China and India. Manner also now gets ready to exhibit relative readiness in human resources, skills and well preparation for catching up the world-change. (Manner Info-Tech 2007) 6. 2 Communication networks The networks between Manner are not good as possible compared with other countries.
It now has Just 41600 fixed line phones with a density of eight phones per one thousand citizens. (Today in Manner 2011) Furthermore, not many people cannot afford the fiber cable connection for internet as the citizen in Manner are using a slower cable connection such as Kbps at home, Kbps at office ,Kbps at business. (Maize News 2011) 6. 3 Logistics networks The common transportation in Manner is waterways, roadways, railways, cargo, heliports and airport runways. Besides, the roadways in Manner have not been improved by government that lots of roadways are difficult accessible by cars. Assassins 2011) 6. 4 Analysis Being the basic technological infrastructure in Manner also is not totally complete that shows the ‘hardware’ may not suit the operation for business. Furthermore, the communication networks are also weaker than other countries. It cannot to support promotions and research from those. Also the roadways are not being well as a lot of parts are not accessible cars normally. 7. 0 SOOT Analysts 7. 1 Strengths -Errant’s is a world-known brand over 140 years not only in Australia, but also in there Asian region countries. A powerful and steady financial background can make suppliers and workers more confidence and reliably. 7. 2 Weakness -Managers have to use lots of time for training unskillful works. -The type of product may not suit the eating habit of Manner people 7. 3 Opportunities -The labor cost is relatively cheaper than Australia in Manner. -Manner gets a lower SST for attracting investments -The number of citizen in Manner are increased that’s mean the market will be bigger in the future. -The forecast of economic growth are increased as the consumer power will be also increased. 7.
Threats -The cost will be more expensive because of high interest rate. -Many rules and laws increase the barriers to import materials. -It is a high tax in Manner to reducing the revenue. 8. 0 Recommendations To start up a new market in Manner, there are lots of problems and concerns such as demographic factors, high tax and interest rate, and restriction, affecting the business profit and the operation future in Manner. It is acceptable if having a cheaper workers and increasing a consumer power. In the political, legal and economic environment, it is all suitable for investigating a new market in Manner.
However, in socio-cultural and technological environment, they make a lot of threats from now to the future. In Manner, it is lack of skillful labor to work and the communication network is too weak. For example, business cannot completely promote products via internet and phone, is making a decreasing sales if the situation is unchanged. In addition, we may employ some skillful worker from Australia to Manner and lead the other local workers for some technical works. Standing on the position of profit, it is not recommended to expand the operation m am o hangar.