QCAA Business Strategic development

Answers could include:

• EduOz.com should have a presence amongst the main social media platforms like Facebook, Instagram, LinkedIn. The most common way companies do this is by creating a short video about the benefits of the product which pops up in people's feeds. At the end of the video, there would be a button where a prospective customer can click to find out more and proceed to provide contact details (phone or email).
• LinkedIn would be another very suitable, place where EduOz.com can create a campaign. LinkedIn also has a 'learning' section on its user interface. Perhaps EduOz may want to provide a free sample of an online topic for users to try. EduOz.com may also want to sponsor a popular podcast also.

Answers could include:

Product features (standardisation)

• English as a language has a global functionality. It is the most common language used in business, so it may make sense to standardise its course which would then negate the cost of making alternative versions in different languages.
• As business environments (political, economic, social, technological) change, online courses may also need to be updated. Therefore, having just one language to deal with would be easier and cost effective.

Product name (standardisation)

• A uniform policy on the product name can enable a consistent and coherent brand message across various cultures.
• However, care must be taken to ensure that the name does not cause offence to local culture, and that the translation is not embarrassing. This may damage the brand quality of the product.

Answers could include:

Levels of education

• EduOz.com may need to make a decision to target recent school leavers who are just out of high school, or perhaps adults who already have a formal qualification and want another skillset in order to become entrepreneurs.
• The market segment of EduOz.com would have to have a basic level of English literacy if they are to understand most of the topic content, as it is written in English.
• There may need to be some translation of some key words so that students are able to understand certain key concepts.

Customs

• Customary greetings to students could be included in some course content that is suited to local cultures of international students, such as 'As-Salaam-Alaikum' (peace be with you) for Islamic countries or 'nihao' for the countries that have Chinese speaking students (Mandarin and Cantonese).
• EduOz.com developers will have to be careful not to stereotype certain cultures and seek advice as to the best way to communicate with students from diverse cultures.

Business etiquette

• The EduOz.com course could include content for entrepreneurs looking to do business in other foreign countries, so it would pay to learn about the way different culture's view notions of introductions/relationships, business card provision, being on time/punctuality, gifts, socialising expectations, working hours, handshakes and dress codes.

Communication protocols

• EduOz.com developers need to pay attention to how they convey their messages. For instance, some cultures may value directness and brevity, while other cultures may prefer a more indirect and nuanced communication.
• Even though the course a written in English, understanding the importance of subtle non-verbal communication between cultures is crucial in international business.

Answers could include:

Level of consumer demand

• Price: from an economic point of view, price can determine the level of demand for goods and services. EduOz.com must consider at what price customers in international markets are willing to pay.
• Scale of demand: it is estimated that by 2025, one billion students from around the globe will be actively seeking education and skill development.
• Economic growth: owners should monitor GDP levels in the various countries they would expand to. Increased GDP may mean more availability of disposable income, which makes it fertile ground to establish operations there.
• Product quality: the online education platform must be able to work well in all operating system and internet browser contexts (e.g., iOS, Windows, Chrome, Mozilla, Safari). The quality of the product must also be dynamic so that it works on desktops and mobile devices.
• Marketing: EduOz.com's branding efforts could also influence demand if people are persuaded to believe in the benefits the online product may provide them. Perhaps some testimonials from satisfied customers may be appropriate in establishing credibility.

Competitor activity

• 'Globally, the online learning industry is increasing rapidly with many regional education hubs being established by competing international learning institutions'.
• Competition within the Southeast Asian online education industry would be fierce. Competitors from Southeast Asian regions may have a significant competitive advantage in that they would have the resources available to translate into different languages, including Mandarin.
• Aspects of the competitor activity could be to scan those that are offering similar online learning products and the degree of market share they are currently holding.
• EduOz.com would want to know who the new and old players in the market are. As well as growth rates of all the competition in order to evaluate who are the biggest threats.
• Competitor activity in terms of marketing strategies would be a very important measure of feasibility, such as the occurrences where pricing wars happen or social media platforms where a high volume of advertising is taking place.

Answer(s) could include:

• Consistency – communicates a consistent message to all customers in all markets resulting in stronger brand awareness and positioning
• Low risk – can use marketing strategies that have worked in domestic markets
• Lower cost – businesses can achieve economies of scale by using the same advertising/packaging around the world. A centralised team can develop marketing strategies for all markets
• Easier to manage – standardised approach to global branding will be less complex to manage
• Better differentiation – a consistent global brand can stand out from the competition. The same logo, colours, product names and advertising can be seen all over the world.

Answer(s) could include:

Corporate slogan:

• language and cultural differences need to be considered
• translations of words may not be accurate or have different meanings in different cultures that could result in offence or not suit the culture
• there have been many businesses in the past that have got it wrong by not conducting the correct market research and not understanding the culture or translations, causing embarrassing blunders and campaign failures. This is why a business may adapt their corporate slogan.

Product features:

• colours play an important role in the design and marketing of products, packaging, branding and advertising as different cultures place different meanings to colours, e.g. white is associated with funerals in Asia
• differences in climate may impact marketing strategies
• businesses need to be aware of common practices, laws and regulations internationally as there may be different labelling rules, electrical requirements, etc.
• these above considerations are just a few reasons why a business may choose to adapt their product features to suit their international market. If they don’t adapt certain features, it may affect the business’ success.

Answer(s) could include:

• A marketing strategy is required to build awareness, interest and desire for the innovation. If this is not done correctly the innovation is at risk of failure.
• An education campaign may be required to build understanding about the need for the innovation and the benefits it will bring to customers.
• A marketing strategy may require a range of approaches including public relations, advertising and changes to packaging and promotion in order to create awareness and a desire, so the innovation is successful.
• Positioning may also have an impact on success for an innovation. A company’s reputation for being innovative may impact their success for new and improved products.
• A well-planned marketing strategy is key to the success of an innovation.

Answer(s) could include:

• Social media campaigns are an important technological tool when marketing in a global environment.
• A business can use a social media campaign to gain a competitive advantage or penetrate a new market.
• A social media campaign can be used across a series of different platforms, sharing the same message with a broad audience.
• A targeted campaign could be created across Tik Tok, Snapchat, WeChat, WhatsApp, Facebook, Instagram and Twitter. These platforms reach a large audience hence enhancing marketing opportunities.
• A business could create targeted ads using geographic location or cookies that directly market to their target demographic.
• Businesses can engage with influencers or partner with other businesses to promote their business brand overseas and in a new global market.
• A business could use universal hashtags across all platforms for each particular social media campaign.
• Stories and videos could be used and shared across platforms to engage with a global market.
• Businesses can run global competitions or use influencers to connect with new markets.
• Businesses can direct messages on different platforms to provide updates on campaigns or events to their target demographic around the world.
• All the above strategies are possible examples of social media campaigns that can help to enhance marketing opportunities in a global environment.

Answers could include:

Levels of education:

• a country with higher levels of education would mean citizens earn a higher disposable income and will more likely purchase a business's products
• would determine whether the local staff require further training and induction within the business
• a shortage of people with the required education and skills may impact a business's success. A business would then need to attract overseas employees using attractive financial packages.

Holidays and celebrations:

• local holidays and celebrations can have an impact on a business's marketing campaigns. Social media can be used to promote holiday sales or using a celebration as a background to sell products
• there may be opportunities for businesses that operate overseas to create new products and services based on local holidays and celebrations, to gain a larger market share
• businesses need to factor local holidays and celebrations into project schedules and timeframes to ensure success in overseas countries in which they choose to operate.

Communication protocols:

• it will be important for a business to know and demonstrate the correct communication protocols to display professionalism and respect for business partners
• understanding subtle non-verbal communication between cultures will be necessary. For instance, a firm handshake or making direct eye contact could be unusual or even offensive to foreign colleagues
• where possible, businesses should research the professional protocols required when operating in overseas markets and ensure that staff are attentive to body language.

Answers could include:

• A patent is legally enforceable and gives a business-owner exclusive rights to manufacture and sell any of its products which are new and inventive.
• The protection of intellectual property is an important strategy to achieve competitive advantage. To protect intellectual property globally, Lisa should apply for a patent.
• If Lisa’s intellectual property is protected, competitors will not take its sales and market share from the business and they will not be able to compete directly with Lisa’s products or services.

Answers could include:

Currency fluctuations

• Currency fluctuations can affect everything from a business purchasing power to operating costs and can make it difficult for a business to predict its profits and losses.
• When a business engages in international activity such as importing, exporting and even setting up a business overseas, the changes in currency value can have a significant impact on its bottom line.
• If the Australian dollar rises against a foreign currency, Lisa’s business may find it less costly to operate in the country of that currency. On the other hand, if the Australian dollar falls against a foreign currency, Lisa’s business may find it more costly to operate in that country.

Economic activity

• Economic activity involves the production, distribution, buying and selling of products and services.
• When operating globally, Lisa’s business would need to be aware of the host country’s gross domestic product rates. The strength of economic activity can significantly affect a business’ growth and profits.
• If the overseas country is experiencing an economic expansion, Lisa’s business would experience stronger sales, as consumers would be more confident to spend on Lisa’s products. Similarly, if the country is experiencing lower economic activity, consumer confidence levels would be low, and Lisa’s business might not experience strong sales of her product.

Answers could include:

Currency fluctuations:

• refers to changes in the exchange rate of a currency relative to another currency; these fluctuations can result in an exporter losing money
• exchange rates are determined by the supply and demand of a currency in the foreign exchange market
• factors that influence the supply and demand of a currency include a country's economic and political conditions, interest rates, inflation and market expectations.

Non-payment of monies:

• refers to a situation where one party fails to fulfil its obligation to pay money to another party
• can have significant financial consequences for the party owed money, especially if they rely on the payment to meet their own financial obligations
• to avoid non-payment, it is important to establish clear payment terms and conditions upfront, including deadlines, methods of payment, and consequences for non-payment.

Answers could include:

E-commerce:

• involves the use of websites where potential customers can view and purchase inventory
• allows a domestic business to enter global markets without having a physical presence in a target country
• the growth of e-commerce and the use of mobile devices have enabled better communication between staff, customers and suppliers around the world.
  Examples:
• customers can customise a business's website with a chosen currency and language to enhance their shopping experience
• businesses can use social media to sell their products online, allowing them to access a global market.

Distribution of products:

• technology can be used to communicate directly with customers globally through email and websites
• technology can be used to help track inventory and automate distribution in global markets
• technology in transportation will aid the transfer of products from domestic to international markets.
  Examples:
• GPS technology can be used to track data in real-time, making tracking faster and more efficient
• increased access to data and collaboration in supply chains using technology such as Zoom or Teams to assist.

Answer(s) could include:

Financial gain:

• An increase in satisfied customers can lead to an increased market share, sales and repeat customers. Innovation can also lead to creating a delay in the decline stage of the product lifecycle resulting in greater profit for Matilda.
• Product innovation occurs if Matilda sources new and/or more products to sell. This may increase interest, sales and, in turn, profit.
• Process innovation occurs if Matilda is able to improve her processes through new technology. She could see productivity gains and better customer satisfaction, resulting in increased financial gain.

Expansion of global market presence:

• Innovation can be a driver of business growth. Therefore, Matilda expanding into the European market will enhance her global market presence.
• Innovation can give Matilda a competitive edge over her foreign competitors.
• Matilda's innovation can lead to her successful expansion into Europe and ensure that she is competitive in global markets through her business being new and different.

Increased market share:

• Innovation can assist with producing more appealing/innovative products and, therefore, increase market share for Matilda when she expands into the European market.
• Innovation can create a competitive advantage. A new product can create a consumer demand for the product, resulting in more products being sold and Matilda's business' market share increasing in the European market.

Answer(s) could include:

Timing:

• Timing can have an impact the success of innovation in terms of how it relates to customer purchasing cycles.
• Matilda has just read an ecommerce report in 2020 stating that European shoppers are spending more time shopping online. This means the timing is right for her to expand to Europe.
• It would be a good idea for Matilda to innovate her product, process and service while online marketplaces in Europe are attracting significant online traffic and high visitor engagement. This should lead to increased sales, thus success at this time is likely to be high and worth her investment in the innovation.

Cost:

• Investment in innovation, whether it is product, process or service, is costly.
• Money needs to be spent on research and development and can be significant. Therefore, it requires appropriate financial resources.
• Matilda has stated that she is willing to invest money into her business operations, so she has the best opportunity to be profitable.
• Matilda has seen a surge in online sales in 2020 and 2021. Therefore, she has income available to spend on innovation.
• If Matilda spends too much money on research and development, and innovation, and does not receive increased sales through the European market, she may be at risk of business failure.
• Matilda's financial investment in innovation may be important to her standing out from competitors in the European market, and be an important contributor to her success.

Answer(s) could include:

• Marketing through social media campaigns – researching and creating social networking sites used in Europe. This will be an easy and cost-effective way for Matilda to expand into the European Market.
• Adopting faster shipping technology. This will be positive for Matilda's business as it will improve customer satisfaction due to timely delivery of orders.
• Implementing safe payment methods – around the world customers are happy and confident utilising payment methods such as PayPal. This will assist Matilda expanding into the European market.
• Applying GPS delivery tracking systems – for both the business and the customer. This ensures the customer is updated via email or SMS, making them confident regarding the delivery of their order.
• Adopting e-commerce procedures. This will enable transfer of monies between currencies and countries instantly.
• Matilda can purchase relevant and reliable hardware and software for the business' needs. She can improve her website capabilities to change the language and/or apply different currencies. This will increase the business' reach to different countries where customers can make purchasing decisions using their own currency.

Answer(s) could include:

Availability of substitutes: Matilda needs to consider:
likelihood that customers will easily switch or use a competitor's product over hers.

• Are there similar products being sold online at a similar price or lower?
• Do the competitors pose a threat to her business' success?
• Are her products new, innovative and of high quality, compared to others on the market?
• Are there better-quality products available?
• Are there products of better value?
• Can she create buyer loyalty in Europe, or will consumers easily change brands?

Bargaining power of buyers: Matilda needs to consider the bargaining power of the buyers in Europe.

• What is the bargaining position of the buyers? Can the customers drive down the price?
• What is the level of quality and service demanded by buyers in Europe?
• What are the buyer numbers in Europe? Europe has a large population, therefore a large number of potential buyers.
• Which countries in Europe will have more buying power? Many parts of Europe have a large middle class, hence the disposable income to purchase Matilda's products.

Advice:
Due to the fact that Matilda is going to be investing in innovation of her product, process and service, the huge population of Europe and the fact that more European shoppers are spending significant time shopping online, there is no reason why she should not trial an entry into the European market. Her product is unique, luxurious and of high quality, thus should negate the issue of availability of substitutes.

The e-commerce report also affirms 'online marketplaces in Europe have attracted significant traffic and seen high visitor engagement that has translated into sales'. Due to the fact that more Europeans are spending time at home and shopping online, it is worth Matilda expanding her business into the European market.

Chef@Home could introduce lean management, which is an ongoing management philosophy, whereby they seek to reduce wastage in each area of the business while still providing quality and value to customers. They can adopt the ‘pull focused’ principle whereby they only prepare and package the required amount of meals as demanded by customers, perhaps after they order it online. This will minimize wastage in terms of over-production of pre-made meals that will not be sold and thus have to be discarded. They can also minimise waste in regards to time through adopting the ‘flow’ principle, and minimising any wait times in their preparation and packaging of meals. Reducing starts and stops and bottle necks will minimise time that may otherwise be wasted improving the efficiency of operations.

Forecasting is a materials management strategy that uses data from the past and present and analysis of trends in attempts to determine future events. An advantage of forecasting is that it allows Chef@Home to identify what needs to be produced, in what quantities, how and when. This will result in “all inputs from local suppliers” actually being used and not wasted, thus assisting to improve efficiency of operations as Chef@Home is able to better utilise their resources. Moreover, Chef@Home using forecasting to order inputs from local suppliers in advance avoids the risk of having to outsource to other suppliers as they do not have enough inputs currently to supply boxes. As a result of this, Chef@Home will be improving the effectiveness of its operations as it is able to order inputs in advance to ensure all inputs are from local suppliers, this improving the business objectives of all locally sourced inputs.

However, a disadvantage of forecasting is that it will represent a cost to Chef@Home if the wrong quantities are calculated as it will lead to overproduction or underproduction. Overall, forecasting would be good to improve operations as it ensures that all local sourced inputs will be used.

A strength of sourcing from overseas suppliers is that this would allow Chef@Home to have reduced expenses, as typically overseas suppliers charge lower costs due to paying lower labour costs, hence passing on the difference to customers. Thus, this would help to increase Chef@Home’s net profit figure, hence they would have more capital for expansion, assisting Chef@Home to expand their business allowing for competitiveness to increase because they are able to operate and ship to a wider range of locations, due to this growth. However, a weakness of Chef@Home sourcing from overseas suppliers is that given the nature of the product, food, being perishable there is a risk that the ingredients could go bad given the travel time to ship them to the Chef@Home headquarters prior to being packed. Thus, this would likely increase waste at the business as they would have to discard a large amount of their inputs, increasing waste and thus limiting efficiency at Chef@Home. However, another strength is that by globally sourcing inputs Chef@Home may be able to purchase inputs which are unavailable locally. Thus, they may be able to offer a wider range of meals to customers in their boxes with these exotic ingredients. Thus, this would likely allow Chef@Home to create a point of difference from competitors, this allowing for a competitive advantage. However, a weakness of Chef@Home globally sourcing their ingredients is that they are not displaying social responsibility and sourcing inputs from local suppliers to promote local jobs in the community. Thereby this may damage the businesses reputation, as in an age of conscious consumers, many customers want to buy from businesses who support local jobs. Thus, through Chef@Home globally sourcing inputs they may lose competitiveness along with lowering percentage of market share.

Answers could include:

• sustainability aims to meet the needs of the business while seeking to protect and preserve resources and the environment for the future. This includes finding ways to reduce waste and recycling of more resources such as water, energy and paper
• CHF can also measure their carbon footprint and investigate carbon offsets. Sustainable practices can differentiate businesses in the market and be used to promote the CHF in a positive light to build CHF's customer base
• CHF's employees will feel ethical by working in a sustainable business. Sustainable businesses have been shown to improve staff morale and increase staff productivity and reduce absenteeism
• one way that CHF can be more sustainable is for it to be efficient with resources, recycling supplies and reducing waste. CHF can promote the business more through its website and social media and not through other advertising methods such as print material.

Answers could include:

• control of quality may involve quality assurance (QA), quality improvement (QI) and quality control (QC)
• QA refers to a set of activities designed to make sure the development and maintenance process is adequate so that a system can meet its objectives, for example, CHF could use QA to prevent defects throughout the production process
• QI refers to the effort taken to increase efficiency, actions and procedures, with the purpose of achieving additional benefits for the business and its users, for example, CHF could use Total Quality Management (TQM) to improve its production process
• QC refers to the process of checking and reviewing processes at the end to determine if the requirements of the business are being met, for example, it ensures that the final product meets a defined set of quality criteria and meets the requirements of CHF's customers
• maintenance of quality is essential for CHF to maintain its brand. A brand is often associated with a particular level of quality and any lowering of quality or perception of quality would result in a loss of consumer confidence in the brand resulting in a decline in sales and profits.

Answers could include:

Profit ratio:

• shows the percentage of net sales
• in 2022, this was 12% which means for every ＄1 of sales earned, CHF had ＄0.12 profit
• in 2023, this increased to 14%, which means for every ＄1 of sales earned, CHF had ＄0.14 profit
• ratio has improved in 2023 by 2%.

Return on equity ratio:

• measures how much profit a business generates on capital invested
• in 2022, this was 8%. For every ＄1 of sales earned, CHF had invested ＄0.08 from capital
• in 2023, this increased to 11%. For every ＄1 of sales earned, CHF had invested ＄0.11 from capital
• ratio shows a 3% improvement in generating profits.

Expense ratio:

• shows the percentage of sales that is consumed by operating expenses
• in 2022, this was 60%. For every ＄1 of sales earned, CHF consumed ＄0.60 in operating expenses
• in 2023, this decreased to 55%. For every ＄1 of sales earned, CHF consumed ＄0.55 in operating expenses
• this ratio has improved by 5%, showing that CHF has reduced its expenses.

Answers could include:

Customs:

• when conducting business in another country such as Indonesia, CHF will need to consider cultural differences that may be presented
• cultural differences could include basic customs, mannerisms, and gestures. For example, if a salesperson for CHF approaches a meeting with knowledge of a customer's cultural background, then this salesperson's words, body language, and actions can all be adapted to better suit those of the customers in Indonesia
• understanding cultural differences and adapting to these differences will allow CHF to be better-liked by customers in Indonesia. This will enable CHF to grow their customer base, increase their sales and profits, and to operate successfully in Indonesia.

Business etiquette:

• the formality of address is an important consideration when dealing with colleagues and business partners from different countries. CHF can consider if team members in Indonesia prefer titles and surnames or being on a first name basis
• while it can vary across organisations, Asian countries such as Indonesia tend to use formal 'Mr/Ms Surname', while Australians and Americans tend to use first names
• CHF will need to be aware of business etiquette in the countries in which they choose to operate. This will allow CHF to operate successfully in Indonesia.

Answer(s) could include:

Acquisitions:

• This is where one business buys another to expand into new or greater markets. This is used as a growth strategy as it can create a bigger, more competitive and cost-efficient organisation.
• Two businesses together are more valuable than they are apart, combining skills, expertise, technology, capital and market share.

Mergers:

• Merging with a foreign business can help gain access to overseas markets.
• Asset sales may be carried out if there are double ups in equipment, buildings, vehicles and other assets.
• This should lead to overall cost reductions and increased profits.

Joint ventures:

• This allows both businesses to develop a new project while still focusing on their core business.
• Joint ventures allow for the sharing of business costs, target market and customer bases that are already established individually by each business.

Answer(s) could include:

• A business with an established brand name may already have a loyal customer base, reputation and presence within the market.
• Training, equipment and expertise is provided.
• Significant economies of scale and potential global advantages in large-scale advertising are possible

Answer(s) could include:

• It is cost effective and more efficient by using a specialist in the nominated field to be outsourced.
• A business can focus on its core competencies by outsourcing activities that are not core to the functions of the business.
• Costs could be reduced, such as labour costs
• Outsourcing might give a business access to technologies and developments in which it may not have the expertise in producing quality output.

Answers could include:

Changes to employment levels in developing countries and developed countries:

• employment levels in developed countries are generally lower than developing countries
• the higher the unemployment level, the greater are the opportunities businesses have of paying lower wages and having more applicants to choose from when they advertise jobs
• low unemployment in most developed countries means that wages are higher and there are less applicants to choose from when jobs are advertised. This drives globalisation towards developing countries, because labour costs are lower.

Global spread of skills and technology:

• technology – communication technology is developing at a rapid rate, including in developing countries. Ease of communication allows businesses in different countries to work together to achieve goals. For example, transport technology (in the form of shipping containers) improved as more goods were transported
• skills – leads to greater sharing of ideas and education. If the required skill sets are not available in a country, the ability to globalise may be hindered.

International cooperation:

• free trade agreements (FTAs), co-productions and strategic alliances to allow for the growth of globalisation
• governments working together through FTAs, negotiations, deregulation and agreed standards
• establishment of positive global working relationships
• greater access to international labour/skills, technology, capital and distribution channels in other countries
• lack of international cooperation can hinder the ability for further globalisation.

Changes in domestic market:

• if a domestic market is flooded with a product or industry type, this may push for businesses to send products overseas or to look for profits in other countries
• domestic businesses might need to decrease the price of their products to compete negatively, affecting their profits. This can lead to cost-cutting domestically, including redundancies.

Tax minimisation, which could include tax havens, and transfer pricing:

• tax haven – is a jurisdiction that has a low rate of tax or does not levy a tax. It offers some degree of secrecy. Tax havens do not share or provide information to other financial institutions or governments
• transfer pricing – is the setting of the price for goods and services sold between controlled legal entities within an enterprise. For example, if a subsidiary company sells goods to a parent company, the cost of those goods paid by the parent to the subsidiary is the transfer price. This allows for the manipulation of profits and the consequent amount of tax paid by the enterprise.

Answers could include:

• there is possible local economic development and prosperity from income and employment opportunities in the home grown business
• increased income to home grown businesses through the sales of their products internationally
• generation of money through local home grown businesses (multiplier effect)
• creation of employment opportunities for home grown businesses in areas such as design, production, sales and distribution of home grown products
• increased awareness of home grown products within the local community in terms of knowledge and pride in Australian home grown products
• recognition of high Australian standards, quality and authenticity
• increased awareness and recognition of high quality Australian home grown products could lead to opportunities and/or innovative ideas to pursue other home grown products.

Answers could include:

Financial assistance, such as grants, to encourage export development:

• government departments such as Austrade provide financial assistance to help encourage export development to other countries. They are used to reduce upfront costs for businesses that want to expand internationally. This makes expansion more financially viable
• a home government incentive for international trade is the Export Market Development Grant (EMDG) which is a key Australian Government financial assistance program for aspiring and current exporters. The EMDG scheme encourages small and medium-sized Australian businesses to develop export markets, reimburses up to 50 per cent of eligible export promotion expenses above $5,000, provided that the total expenses are at least$15,000 and provides up to eight grants to each eligible applicant.

Taxation incentives:

• concessions, such as exports being exempt from the goods and services tax (GST) and the Duty Drawback Scheme, allow exporters to claim refunds on customs duty they have paid. There are tax incentives for research and development expenditure through the Australian Taxation Office
• the Duty Drawback Scheme enables exporters to obtain a refund of customs duty paid on imported goods where those goods will be treated, processed, or incorporated in other goods for export
• the Tradex Scheme – this is a cash flow benefit for importers who intend to export goods. They do not have to pay the relevant customs duty or GST at the time of import. It provides exporters with an upfront exemption from customs duty and GST for goods imported into Australia and then exported within one year.

Answers could include:

• E-commerce enables businesses to access a global market, increasing brand exposure and the potential to increase sales and profits.

• The growth of e-commerce and the use of mobile devices such as phones and laptops has enabled better communication between staff, customers and suppliers around the world.

• E-commerce enables businesses to sell their products/services online over the internet, allowing them to access a global market. It enables business to consumer (B2C), consumer to consumer (C2C) sales and business to business (B2B) buying and selling.

• Businesses are able to use technology such as mobile commerce, electronic funds transfers, internet marketing, inventory management systems and data collection systems to grow their business in a global environment.

• Businesses have been able to take advantage of developments in transportation, communication systems, secure payment systems, 24/7 online shopping and digital distribution of products in order to operate in a global environment.

Answers could include:

• consistency: enables Giacomo and Chris's business to communicate a consistent message to customers in all markets, resulting in stronger brand awareness and positioning
• low risk: Giacomo and Chris could use marketing strategies, such as promotion and advertising
• lower cost: Giacomo and Chris's business will be able to achieve economies of scale by using the same advertising and packaging. Multiple teams for research and marketing strategy will not be needed, a centralised team of people will develop marketing strategies for all markets, thus saving time and money
• easier to manage: Giacomo and Chris should use a standardised approach which will be less complex than working with multiple advertising agencies, marketing teams and different strategies
• better differentiation: Giacomo and Chris should use a consistent global brand for their business so it will stand out from the competition as consumers will see the same logo, colours, product name and advertising.

Answers could include:

Adaptation:

• means Giacomo and Chris could modify their existing business slogan to better suit the needs of the target audience or to reflect changes in the business's brand identity or values
• should be done carefully by Giacomo and Chris to ensure that the modified version still maintains the essence of the original slogan of their business, while reflecting the changes that have occurred
• Giacomo and Chris's business should ensure that the adapted slogan is consistent with the rest of the brand identity and messaging, including visual elements, tone of voice, and brand personality
• can be a useful strategy for keeping Giacomo and Chris's business's brand fresh and relevant, and for maintaining a strong connection with the target audience over time.

Answers could include :

Level of demand by consumers:

• ability and number of Giacomo and Chris's business's potential customers, including frequency of purchase
• Giacomo and Chris's business's potential customers must be able to afford the product
• the lack of interest may limit Giacomo and Chris's business's products and/or size of other potential markets
• Giacomo and Chris's business would need to have sufficient potential customers to warrant investment of expansion.

Consumption patterns:

• Giacomo and Chris need to be aware of the changing trends of consumers and that consumers may be searching out more authentic cultural experiences
• consumers may be looking for more alternative regimes/treatments when it comes to wellness treatments
• wealthier countries may consume more luxury or 'wants' and this may be beneficial for Giacomo and Chris's wellness business
• Giacomo and Chris need to be aware that consumption patterns may change depending on a country's economic conditions.

Competitor activity:

• refers to the number of competitors in the market and their market share
• an analysis of Giacomo and Chris's business's competitors should include importers, local businesses and any online sellers
• competitor activity that will support Giacomo and Chris's market entry could include few competitors and the unavailability of wellness centres
• competitor activity that will hinder Giacomo and Chris's market entry could include many competitors and the presence of well-established wellness centres.

Answers could include:

Skilled communicator:

• it is important for Giacomo to identify the best method of communication in the different markets, situations and people
• Giacomo needs to process and have the ability to exchange information accurately and timely, and to actively listen
• Giacomo needs to understand that it is more difficult in a cross-cultural setting due to language barriers, but if multiple languages can be spoken to convey messages this is an important advantage.

Socially aware:

• Giacomo needs to have an awareness of relationships, thus leading to the ability to understand the needs of his team members
• Giacomo needs to develop an understanding of other social and cultural customs which will enable him to establish trust and long-lasting business relationships
• Giacomo needs to use his emotional intelligence to be able to perceive and understand complex emotions and to regulate his own emotions to communicate well in new markets.

Skilled decision maker:

• it is essential for Giacomo to know when to make decisions quickly if required, but also be able to balance the risk in decision making to avoid damage to the business
• this trait is needed in a new cross-cultural setting as there is no history of past actions and performance to follow or provide advice
• the situation/cross-cultural context is new/different/more complex; therefore, Giacomo will often be required to make decisions quickly, and often in the absence of full or limited available information.

Future thinker:

• Giacomo needs to have a long-term vision of where the business is headed, so incremental planning can take place and the business is proactive, rather than reactive in its responses
• the ability for Giacomo to see the larger global picture, implement the vision on a global scale, and being open to possibilities which would provide an inclusive work environment required in a new cross-cultural setting
• Giacomo needs to be able to motivate people by explaining to them how their daily achievements or setbacks will contribute to the future success of the business.

Responsible:

• Giacomo needs to be independent, accountable, accept authority and be more aware that actions have consequences
• this trait is needed in a new cross-cultural setting to understand where pre-established ideas or the 'same old' consensual view of reality cannot be relied upon, to understand where adaptation or new ideas are required, and to demonstrate that they can think for themselves, often seeing new perspectives, real purpose and outcomes
• Giacomo needs to have the ability to take control and be answerable in a new cross-cultural setting.

Eshan’s breads could use Just In Time, which involves the right number of inputs arriving just as they’re needed for production. By ensuring their ingredients to make bread like flour, oil and sugar only arrive as they’re needed for production, this can reduce the amount of ingredients in Eshan’s inventory that may spoil and become unusable, thus reducing wasted inputs and the costs associated with this wastage, which is an optimal use of resources, improving efficiency of inputs at Eshan’s Breads.

An automated production line (APL) refers to a process where raw materials enter and finished products leave with little to no human intervention. This can reduce the time and labour resources used as the APL will quickly transfer the bread through the entire production process without requiring manual handling or manual mixing of ingredients etc., which optimises resource use and reduces inputs required to produce their bread, thus improving efficient management of its processes. Furthermore, this will allow them to reduce wastage (as an APL is often very accurate) in the form of low-quality bread, cracked eggshells and improve the quality of their product, meeting customer expectations, reducing level of wastage and increasing sales of their bread, thus meeting its objectives and therefore improving effectiveness.

One quality management strategy that could be used to improve effective management of outputs (the produced good/service being bread) is quality control. As quality control refers to the evaluation and checking of bread by highly trained quality control teams, this will ensure that Eshan’s Breads are able to produce crisp and fresh bread as desired in their business objectives. Through inspection and removing the sub-standard bread before reaching the supermarkets, restaurants and catering businesses, Eshan’s breads are able to achieve their objectives of increasing customer satisfaction through removing faulty or undesirable bread. This will ensure that Esha’s Breads is able to maintain a good quality reputation and this leading to an increase in sales, revenue to achieve business objectives of profit (expense deducted from revenue) where quality is under constant surveillance.

Answers could include:

• the strategic planning process guides managers when they are making decisions regarding the allocation of resources
• it involves various stakeholders of a business and the purpose of the process is to build commitment upon goals and objectives
• the purpose could be to analyse the external and internal environments, to develop a mission statement, identify goals and objectives and to come up with strategies.

Answers could include:

Environmental scan = PEST

• a PEST analysis is a strategic planning tool that evaluates the political, economic, social and technological factors that could impact a business
• a business can assess the major external factors that may impact its operations and overall business success in a particular market
• the PEST analysis will gauge how the external factors may impact the overall profitability and success of a business. Hence, it is an important tool in the strategic planning process.

PEST analysis has four factors, each may assess the following:

• Political (P): tax laws, industrial relations laws, environmental regulations, consumer protection, trade regulations, stability and relationships of foreign governments
• Economic (E): interest rates, inflation, unemployment, growth, discretionary spending, currency fluctuations
• Social (S): population growth, religious beliefs, lifestyles, community expectations for safety, value for money and ethics
• Technological (T): rate of change, automation, research and development.

Answers could include:

• due to the increase in hacking and scams, businesses need to ensure they keep up-to-date with security software and ensure they do not publicly share customer information
• loss of income and customer data can damage a business' reputation and can be impacts of poor security practices and privacy breaches
• as a result businesses should increase investment in secure online payment methods, such as PayPal, to ensure secure payment methods. It does require business to invest money into privacy and security software
• businesses should also review/audit their policies and procedures to safeguard against potential security and privacy threats.

Answers could include:

Stability of foreign governments:

• lack of political stability in a particular country will affect business operations
• unstable countries may have riots, protests, looting and general disorder, which will disrupt business operations. Whereas countries with more stable governments will be more attractive for Australian business operations
• Australian businesses should assess how stable a foreign government is, for example know what type of government the country has, how the business may be impacted by changes in the government and also the legal environment within that country.

Relationship of foreign governments with the Australian government:

• the diplomatic and economic relationship Australia has with a particular country will also impact business operations. This may impact businesses in a positive or negative manner, depending on the relationship
• if the relationship is positive, for example, with New Zealand, as there is a free trade agreement, this provides excellent business opportunities and makes it easier for businesses to conduct operations
• if the relationship is strained with a country, this would provide difficulty in business operations. In recent years the relationship between Australia and China has been strained, causing changes in regulations and issues with import and exports in trade, creating issues for Australian businesses operating in China.

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The Australian New Zealand Closer Economic Relations Trade Agreement (ANZCERTA) is the free trade agreement that Australia solely has with New Zealand.

Features of the ANZCERTA:

• all tariffs and quantitative import or export restrictions on trade in goods originating in the free trade area are prohibited
• the agreement includes provisions for free trade in services, allowing most services to be traded without restrictions between Australia and New Zealand
• goods and occupations are mutually recognised, removing technical barriers to trade and facilitating the movement of skilled personnel between Australia and New Zealand
• Trans-Tasman food standards are harmonised, reducing compliance costs for industry and regulatory barriers
• the 2013 Protocol on Investment reduces investment costs, providing greater legal certainty and higher screening thresholds for investors in both countries.
• products that meet the ANZCERTA Rules of Origin criteria can be traded duty-free between Australia and New Zealand
• the ANZCERTA aims to strengthen the economic relationship between Australia and New Zealand through mutually beneficial expansion of free trade and reduced trade barriers.

Answers could include:

• access to a larger customer base across Australia and New Zealand would lead to higher sales of greeting cards and revenue for AuraAsh Designs
• enhanced brand visibility and recognition on an international scale will allow AuraAsh Designs to attract more customers and business opportunities
• a global brand can instil confidence in customers, leading to increased trust and loyalty towards the brand
• reduced dependency on a single market, providing financial stability and mitigating risks associated with market fluctuations
• establishing a strong global presence can differentiate AuraAsh Designs from competitors and position them as a leading brand in the greeting card industry
• potential for cost savings through bulk production and streamlined operations, leading to improved profit margins for AuraAsh Designs
• exposure to diverse markets can inspire new ideas and innovations, helping AuraAsh Designs stay ahead of trends and customer preferences in the greeting cards industry
• having a global brand will increase AuraAsh Designs' ability to attract and retain quality staff from different regions and allow the business to bring in diverse perspectives and expertise to the company.
  Accept other relevant answers.

Answers could include:

Just-in-time (JIT):

• just-in-time is an inventory control technique which focuses on minimising inventory as a business only receives inputs only when these are required in the production process. This allows a business to reduce holding costs, increase efficiency, and eliminate waste
• AuraAsh Designs can implement JIT by closely coordinating with local suppliers in New Zealand to deliver raw materials and card-making supplies precisely when they are needed for production. However, this requires the business to accurately forecast their demand and a responsive supply chain with their suppliers
• by using JIT, AuraAsh Designs can lower its holding costs as inventory is minimised, leading to reduced warehouse space requirements and associated expenses. This is particularly beneficial for AuraAsh Designs to manage different seasonal demands for their greeting cards when expanding into the New Zealand market.

Just-in-case (JIC):

• just-in-case is an inventory control technique that involves a business maintaining a level of reserved stock to guard against unexpected variations in demand, supply chain disruptions, or other uncertainties which may arise
• AuraAsh Designs can implement JIC by setting aside a certain quantity of inventory beyond what is expected to be sold in the immediate future. This reserved stock then acts as a safety net in case of unexpected events or changes in demand
• JIC helps maintain customer satisfaction by preventing AuraAsh Designs running out of stock during peak seasons or special occasions. However, JIC increases expenses incurred for storing inventory as AuraAsh Designs would require additional space for storage when expanding into the New Zealand market.
  Accept other relevant answers.

Answers could include:

Technology that assists business in the expansion into global markets:

• AuraAsh Designs can effectively reach their target audience in New Zealand if the business investigates and creates popular social networking sites. This would be an easy and cost-effective way to expand AuraAsh Designs' presence in the new market
• implementing technology that results in faster shipping solutions will improve AuraAsh Designs' customer satisfaction by ensuring timely delivery of orders. This positive experience can enhance AuraAsh Designs' reputation and encourage repeat consumers
• using GPS tracking for deliveries keeps both the business and customers informed. Customers receive updates via email or SMS, which boosts their confidence in the delivery process and enhances their overall experience
• AuraAsh Designs can invest in reliable hardware and software to meet their business needs. Enhancing their website to support multiple languages and currencies will increase their reach, allowing customers to make purchases in their preferred language and currency.

E-commerce, security and privacy issues:

• it is crucial for AuraAsh Designs to stay current with security software and ensure that customer information is not publicly shared. Regular updates can help AuraAsh Designs protect against any new threats and vulnerabilities
• poor security practices and privacy breaches can cause loss of income and customer data, which can severely damage AuraAsh Designs' reputation. This can result in a loss of customer trust and a subsequent decline in sales
• AuraAsh Designs could invest in secure online payment methods, such as PayPal, to ensure secure transactions. This requires allocating funds towards privacy and security software, which can provide customers with a peace of mind when they make purchases through AuraAsh Designs' website
• to safeguard against potential security and privacy threats AuraAsh Designs should regularly review and audit their policies and procedures. This proactive approach can help the business identify and address potential vulnerabilities.

Answers could include:

• businesses should be aware of their ethical role in the use of offshore labour, and be aware of the host country's labour regulations and workplace conditions
• through policies and procedures businesses should consider their ethical actions and decisions when operating offshore
• businesses should avoid the use of sweatshops where workers are paid little for their work, are forced to work unpaid overtime or to work with no breaks.

Answers could include:

• deregulation will allow businesses to source funding for their business operations for lower costs in overseas markets
• deregulation makes funding more accessible/less expensive, allowing businesses to expand globally
• deregulation is the reduction of legislation and laws imposed by the government on a financial market. Therefore, deregulation drives global business growth as business processes and procedures become easier and more cost efficient
• deregulation of financial markets allows industries to operate businesses more freely and businesses to make decisions more efficiently since there is a reduction of legislation in the financial markets.

Answers could include:

Employment levels in developing and developed countries:

• employment levels in developing countries are generally lower than developed countries
• globalisation has allowed businesses to have more applicants to choose from when they advertise jobs as they can access an international market
• the higher the unemployment level, the greater the opportunities for global businesses to pay lower wages, thus having the potential to increase profit margins. This also means domestic workers may lose out on job opportunities due to cheaper labour overseas
• low unemployment in most developed countries means that wages are higher and there are less applicants to choose from when jobs are advertised. This drives globalisation towards developing countries because labour costs are lower.

The global spread of skills and technology:

• global spread of skills leads to greater sharing of ideas and education
• e-commerce and improved security and privacy allows for businesses to sell products and services internationally and widen their markets
• if the required skill sets are not available in a particular country, due to globalisation, businesses can choose to employ international candidates, diversifying teams, hence providing a global spread of skills
• communication technology is developing at a rapid rate, including in developing countries. Ease of communication allows businesses in different countries to work together to achieve goals. For example, transport technology (in the form of shipping containers) improved as more goods were transported.