BRCM COLLEGE OF BUSINESS ADMINISTRATION

LIBRRARY ASSIGNMENT 2013-14

BUSINESS ENVIRONMENT-II

TYBBA- SEM-V

DIVISION-II [MARKETING]

TOPIC: STUDY OF TECHNOLOGICAL, SOCIAL AND GLOBAL ENVIRONMENT FOR AUSTRALIA

BY,

106- VARUN BHUVA

112-VISHAL DHANANI

115-SANI GANDHI

117-LAY GANDHI

132- VISHAL LAKHANI

133- RAKHI LODHA

SUBMITTED ON -18TH FEBRUARY, 2014

SUBMITTED TO – MS. MANSI THAKKAR

About Australia

Australia is the sixth biggest country in the world and the smallest continent. It lies between the Pacific and Indian Ocean, about 3,000 km from the mainland of Asia.

Australia is often called Down Under because the whole continent lies south of the equator .

All the world’s climates are found on the continent—from the tropical rainforest in the north to the cool and temperate climates in the south and southeast.

The continent is also one of the richest countries in the world. It produces wool and meat on one side, as well as gold, bauxite and other minerals on the other. Australians have a high standard of living 

Size : 7.7 million square kilometres

Population : 19 million

Capital : Canberra

Biggest Cities : Sydney (3.7 m), Melbourne (3.1 m)

Flag : A British flag with five small stars that show the Southern Cross . One large

star represents the country’s six territories.

Money : The Australian Dollar

The country is divided into 6 states and two territories.

Introduction to socio cultural environment

o The social environment, social context, socio cultural context, or milieu, refers to the immediate physical and social setting in which people live or in which something happens or develops. It includes the culture that the individual was educated or lives in, and the people and institutions with whom they interact.

o The interaction may be in person or through communication media, even anonymous or one-way, and may not imply equality of social status.

Introduction to socio cultural environment of Australia

Socio cultural environment of Australia includes following:

1. People, culture and lifestyle

Australia is a product of a unique blend of established traditions and new influences. The country’s original inhabitants, the Aboriginal and Torres Strait Islander peoples, are the custodians of one of the world’s oldest continuing cultural traditions. They have been living in Australia for at least 40 000 years and possibly up to 60 000 years.

The rest of Australia’s people are migrants or descendants of migrants who have arrived in Australia from about 200 countries since Great Britain established the first European settlement at Sydney Cove in 1788.

In 1945, Australia’s population was around 7 million people and was mainly Anglo–Celtic. Since then, more than 6.5 million migrants, including 675 000 refugees, have settled in Australia, significantly broadening its social and cultural profile.

Today Australia has a population of nearly 23 million people. At 2009, about 25.6 per cent of the estimated resident population comprised those born overseas. Australian Bureau of Statistics projections from the 2006 census of the numbers of Aboriginal and Torres Strait Islander people suggest and Indigenous population of 575,552 people at 30 June 2011.

Many of the people who have come to Australia since 1945 were motivated by a commitment to family, or a desire to escape poverty, war or persecution. The first waves of migrants and refugees came mostly from Europe. Subsequent waves have come from the Asia–Pacific region, the Middle East and Africa.

Migrants have enriched almost every aspect of Australian life, from business to the arts, from cooking to comedy and from science to sport. They, in turn, have adapted to Australia’s tolerant, informal and broadly egalitarian society.

2. Shared values

The defining feature of today’s Australia is not only the cultural diversity of its people, but the extent to which they are united by an overriding and unifying commitment to Australia.

Within the framework of Australia’s laws, all Australians have the right to express their culture and beliefs and to participate freely in Australia’s national life.

At the same time, everyone is expected to uphold the principles and shared values that support Australia’s way of life. These include:

respect for equal worth, dignity and freedom of the individual freedom of speech and association freedom of religion and a secular government support for parliamentary democracy and the rule of law equality under the law equality of men and women equality of opportunity peacefulness a spirit of egalitarianism that embraces tolerance, mutual respect, and compassion

for those in need. Australia also holds firmly to the belief that no one should be disadvantaged on the basis of their country of birth, cultural heritage, language, gender or religious belief.

3. An egalitarian society

In most practical ways, Australia is an egalitarian society. This does not mean that everyone is the same or that everybody has equal wealth or property.

But it does mean that there are no formal or entrenched class distinctions in Australian society, as there are in some other countries. It also means that with hard work and commitment, people without high-level connections or influential patrons can realize their ambitions.

The unemployment rate is relatively low (in December 2007 it was 4.3 per cent) and the gross per capita income is around $39 000. All people are equal under the law in Australia and all Australians have the right to be respected and treated in a fair manner.

4. Language

All people in Australia are encouraged to learn English, which is the national language and an important unifying element of Australian society.

However, languages other than English are also valued. In fact, more than 15 per cent of Australians speak languages other than English at home.

The most commonly spoken languages after English are Italian, Greek, Cantonese, Arabic, Vietnamese and Mandarin. Australians speak more than 200 languages, including Indigenous Australian languages.

5. Religious worship

Australia is a predominantly Christian country, with around 64 per cent of all Australians identifying as Christians. However, most other major religious faiths are also practiced, reflecting Australia’s culturally diverse society.

Australia’s earliest religious or spiritual beliefs date back to the Aboriginal and Torres Strait Islander peoples, who have inhabited Australia for between 40 000 and 60 000 years. Indigenous

Australians have their own unique religious traditions and spiritual values. Australia has no official state religion and people are free to practice any religion they

choose, as long as they obey the law. Australians are also free not to have a religion.

6. Vibrant arts scene

Australia has a vibrant arts scene that reflects both the nation’s Indigenous cultural traditions and its rich mosaic of migrant cultures. All forms of the visual and performing arts have strong followings, including film, art, theatre, dance and music.

According to one survey, almost 13 million or 88 per cent of adult Australians attend at least one cultural event or performance every year. The most popular art form is film, attended by about 70 per cent of the population each year. More than 26 per cent attend a popular music concert; 25 per cent go to an art gallery or museum; 19 per cent see an opera or musical; 18 per cent attend live theatre; 11 per cent attend a dance performance; and 9 per cent attend a classical music concert.

7. A national cuisine?

Australia has one of the most diverse cuisines in the world, thanks to Asian and European migrant influences, a dining public that is happy to try innovative dishes and access to a plentiful supply of fresh and high–quality produce.

Australia, one of the world’s most efficient agricultural nations, produces high–quality vegetables, fruit and grains, meat, poultry, seafood, and cheeses and other dairy products.

8. Clothing

The types of clothing that people wear reflect the diversity in Australian society and the variations in climate. There are no laws or rules on clothing, but Australians are expected to wear certain clothing in work situations—most workplaces have dress standards.

Outside the work situation, clothing is a personal choice—people dress for comfort, the social situation or the weather. Clubs, movie theatres and other places require people to dress in neat, clean clothes and wear appropriate footwear. Australia does not have an official national dress.

9. Celebrations and holidays

Most workers in Australia have around 12 national and state public holidays throughout the year, in addition to their annual holidays.

These include:i. New Year’s Day, which is on 1 January every year. The most common time for

people in Australia to take their annual leave is between mid-December and the end of January.

ii. Christmas and Easter, two of the most important dates in the Christian calendar. Christmas Day is on 25 December every year, while Easter is observed at some point between late March and late April each year.

iii. Boxing Day, the day after Christmas Day, is also a public holiday.iv. Australia Day, on 26 January, is the day Australians celebrate the founding of the

first European settlement in Australia in 1788.v. Anzac Day, on 25 April, is the day the Australian and New Zealand Army Corps

(Anzac) landed at Gallipoli in Turkey in 1915 during World War I. This day is set aside in memory of those who fought for Australia and those who lost their lives in war. The day is a national public holiday and is commemorated with ceremonies, the laying of wreaths and military parades.

There are also a number of other non-national holidays which are celebrated only in specific states and territories (or celebrated in all states, but at different times of the year). These include Labour (or Eight-Hour) Day and the official birthday of Queen Elizabeth.

Melbourne Cup Day, which occurs on the first Tuesday of November each year, is a public holiday in metropolitan Melbourne. The Melbourne Cup is a world-famous horse race which brings Australia almost to a standstill. For a few minutes, most people, whether at work, school or home, stop to watch the race on television.

Key facts

More than 6.5 million migrants have settled in Australia since 1945. English is the national language but other languages are valued.

Australia is predominantly Christian but people are free to practice any religion they choose.

Around 88 per cent of Australians go to at least one cultural event each year. More than 11 million Australians aged 15 or over take part in sport or other physical activity.

Australia has one of the most diverse cuisines in the world but has no national dish.

Australian Consumer Law

The Australian Consumer Law (ACL) is uniform legislation for consumer protection, applying as a law of the Commonwealth of Australia and of each of Australia's states and territories. The law commenced on 1 January 2011, replacing 20 different consumer laws across the Commonwealth and the states and territories. The text of the law is a schedule to the Commonwealth Competition and Consumer Act 2010, which is incorporated into the law of each state and territory by reference in separate fair trading acts.

The provisions of the Australian Consumer Law broadly reflects the provisions previously afforded by the Trade Practices Act 1974. The Australian Consumer Law also generally reflects most of the consumer protection provisions of the fair trading legislation in each state and territory.

Implementing identical consumer protection laws at Commonwealth and state/territory levels promotes consistency between jurisdictions. It will also make it easier for the Federal Parliament to amend the provisions which will then be reflected in the laws of the states and territories without the parliaments of each jurisdiction needing to debate and enact the amendments separately, although the states and territories reserve the right not to implement any amendments within their own jurisdiction

The Australian Consumer Law includes:

A national unfair contract terms law covering standard form consumer contracts

A national law guaranteeing consumer rights when buying goods and services;

A national product safety law and enforcement system;

A national law for unsolicited consumer agreements covering door-to-door sales and

telephone sales;

simple national rules for lay-by agreements; and

new penalties, enforcement powers and consumer redress options

Examples of corporate social responsibility

In Australia while doing CSR, major focus is given on two parts:

1. community

2. Environment

Towards community

Giving back to our community gives us great pleasure. It's all about building a stronger,

more caring society, and everyone at Heinz( one of the largest company of Australia)

takes great pride in an active, exciting and effective program that includes:

1. community partnerships

2. fundraising

3. volunteering

4. product donations

5. scholarships

Heinz has developed a number of strong corporate partnerships with organizations that

specialize in promoting the health, nutrition, and wellness of children and families.

Towards environment

One major event carried out in Australia was “Going green in Australia” Heinz believe that complying with the law is the least one company can do. Heinz track

their progress by setting and monitoring environmental targets for every one of our operations across the country. This is done through an Environmental Management System that is audited annually at each one of our sites. 

This audit helps them know how well we are doing in our efforts to decrease the impact of our production operations through the more efficient use of energy, raw materials, water and packaging. 

they also make sure that all of our suppliers and contractors are also working towards the same environmental goals. Every little bit helps us to improve our environmental performance overall and increase the efficiency of our manufacturing operations.

Introduction to Technological environment

Technological Environment means the development in the field of technology which affects

business by new inventions of productions and other improvements in techniques to

perform the business work .

Introduction to Technological environment of Australia

Rules and Regulations related to implementation of technology

1. Ambient air quality standards

On 26 June 1998, the National Environment Protection Council (NEPC) made Australia's first national ambient air quality standards as part of the National Environment Protection Measure for Ambient Air Quality (the 'Air NEPM').

The NEPC is a statutory body with law making powers established under the National Environment Protection Council Act 1994 (Commonwealth) and corresponding legislation in the other jurisdictions. The members of NEPC are Ministers, not necessarily environment Ministers, representing the participating jurisdictions (i.e. Commonwealth, State or Territory Governments).

The Air NEPM sets national standards for the six key air pollutants to which most Australians are exposed: carbon monoxide, ozone, sulfur dioxide, nitrogen dioxide, lead and particles. Under the Air NEPM, all Australians have the same level of air quality protection.

2. Emission standards Australia does not have national air quality emissions standards. Environment

protection authorities in individual States and Territories set such standards. You may wish to contact the local State or Territory environment agency for details on

the current emission controls/license conditions imposed on facilities in their jurisdiction.

3. Rules related to patents on technology

Australian patent law recognises two principal types of patents: standard patents and innovation patents. An applicant for a patent may elect to obtain protection for an invention under either system.

a. Standard patents

A standard patent is the basic form of patent protection for inventions under Australian law and is consistent with the minimum requirements for patent protection under the Agreement on Trade-Related Aspects of Intellectual Property Rights 1994 (TRIPS Agreement).Unless otherwise indicated, references to an Australian patent and discussions of patent rights in this Report relate only to the standard patent system.

b. Innovation patents

The innovation patent is a ‘second tier’ of protection, which was introduced in 2001 to replace the petty patent system.[13] Innovation patents are intended to provide protection for ‘lower level’ inventions for which standard patent protection is not available and which are not covered by the designs legislation

Duration of patent protection

A standard patent generally has a term of 20 years, commencing on the date of the patent; an innovation patent has a term of 8 years.

Australia's Environmental Technology A World Winner

Australia's environmental technology has been recognized at the 2005 World Expo Aichi Japan with six companies winning awards, Acting Prime Minister and Trade Minister Mark Vaile announced today.

The Global 100 Eco -Tech Awards, established by the Japan Association for the 2005 World Exposition, recognize 100 companies from around the world which contribute to the resolution of global environmental problems and the realization of a sustainable future.

The Australian companies, and their award winning technologies, were:

i. Revolutionary photovoltaic solar cells manufactured by ORIGIN ENERGY SOLAR;ii. MIEX Technology - Advanced Dissolved Organic Carbon Removal by ORICA

ADVANCED WATER TECHNOLOGIES;iii. MetaMizer Clinical Waste Conversion Technology by MEDIVAC LIMITED;iv. Heat pump hot water production by QUANTUM ENERGY TECHNOLOGIES PTY LTD;v. Molectra Integrated Waste Tyre Recycling Technology by JOHN DOBOZY;vi. Biolytix Waste Treatment System by BIOLYTIX ™ TECHNOLOGIES.

Impact of change in technology on Australian Economy

1. Structural Change in the Australian Economy

Over time, the structure of the Australian economy has gradually shifted away from agriculture and manufacturing towards services, with the mining industry growing in importance recently. Economic activity has also shifted towards the resource-rich states of Queensland and Western Australia. Changes in the structure of the economy

have been driven by a range of factors including rising demand for services, the industrialization of east Asia, economic reform and technical change.

The development and application of new technologies has also driven structural change over recent decades, particularly in service industries. Since 1970, investment in computers and software has increased exponentially in real terms, reflecting the rapid improvement in the quality of computers over time and their range of uses. In the finance industry, the adoption of technologies such as automatic teller machines and electronic payment methods in the 1980s and 1990s resulted in significant structural change. Improved transportation technologies and new business practices (such as just-in-time production) are also likely to have resulted in better inventory management and contributed to the reduction in the relative size of distribution services such as wholesale trade and transport.

Over recent decades, firms in goods-producing industries such as manufacturing have progressively outsourced a range of business services to take advantage of the economies of scale generated when these services are pooled together and provided by specialized firms. The outsourcing of services such as accounting, marketing and IT support is also likely to have been hastened by improvements in communications technology, together with increasing trade in services, which exposed service industries to greater competition. As such, the resulting rise in service industries' share of the economy may be overstated since it partly represents the measurement of activities previously undertaken by the goods-producing industries.

The impact of technological change is primarily felt through the development of new products and new methods of producing existing products or providing services. For example, expansion of Australia's mining industry in the mid-1960s partly reflected the development of new technology for extracting and transporting large volumes of minerals at world competitive prices. More generally, with the pace of technological change differing across industries both locally and overseas, there are likely to be constant changes in relative prices, inducing shifts in the structure of production, consumption and employment.

Advances in transport and communications have been important catalysts for change. Lower costs of international transactions have helped to enhance the efficiency of international markets, reduce consumer prices and increase international competition. Increased exposure to goods of foreign origin has helped to stimulate greater innovation in order to meet that international competition and has served as a conduit for faster diffusion of technological progress and organizational change.

Changes in information technology have spawned the creation of computer hardware and software industries. Increases in computing power have allowed information to be processed in greater quantities and with more speed, increasing demand for information services and underpinning advances in communication which have

assisted the process of increased international integration. Enhanced information processing has also assisted in accelerating the spread of knowledge, potentially advancing the rate of technological progress in a wide range of areas. These influences accelerate changes in the types of goods and services purchased and how and where they are produced.

So development in technology leads to development of services and mining business and hence it led to increase in Output, employment, investment and Exports from service sector.

Agriculture Mining Manufacturing Services Output1960’s 13 2 26 591980’s 6 6 19 702000’s 3 7 12 78

Employment1960’s 10 1 26 631980’s 6 1 17 752000’s 4 1 11 84

Investment1960’s 11 5 19 641980’s 6 11 13 702000’s 4 13 11 72

Exports1960’s 62 15 9 141980’s 33 38 10 182000’s 18 42 17 23

Technology that changed whole Australia

One of the major technologies that changed Australia was the invention of the telegraph. Prior to this technology being developed, Australia was very much isolated from the rest of the world, unable to communicate immediately with other countries and continents. Any news that came to Australia took weeks to arrive, because it came via ships. When the Overland Telegraph line was completed in 1972, the southern states were in contact with Darwin which was in contact with Java and the rest of the world. The main line went to Adelaide, and communication and information could then be sent out to Melbourne, Sydney, Brisbane, Perth and Hobart. Australia was able to

keep up with events as they happened, whereas before people only heard important news when it was weeks or even months old.

Introduction to International environment The term Globalization (or globalization) refers to processes of international

integration arising from the interchange of world views, products, ideas, and other

aspects of culture.

Advances in transportation and telecommunications infrastructure, including the rise of

the telegraph and its posterity the Internet, are major factors in globalization,

generating further interdependence of economic and cultural activities.

Introduction to International environment of Australia

Benefits for Australia from Globalization

When we focus on the impact of globalization and open trade on Australia, the benefits are even clearer which are as following.

i. Australia's exports have grown three and a half times over the past 20 years, and exports have increased as a proportion of Australian GDP - from just over 10 per cent in 1981 to nearly 20 per cent in 1999/2000. And it is estimated that if we could achieve a reduction of 50 per cent in global protection, Australia would gain an economic boost of more than $7 billion per year.

ii. The benefits for Australian community from reduced trade barriers and tariffs are significant. Cuts in tariffs since 1986 have delivered gains of around $1000 per year to the average Australian family. And tariffs still cost the average Australian farm over $2,000 annually.

iii. By pursuing trade liberalization over the years, Australia has produced a much more productive and outward-looking economy, with more job opportunities and better wages for workers. Around one in five jobs are now linked to exports, and in regional Australia the figure is one in four. Jobs in the export sector also tend to provide better wages and conditions: on average, exporters in manufacturing pay 25 per cent more than those in non-export industries.

iv. Australia's textile, clothing and footwear industry is often cited as one that benefited from tariff protection. In fact, during the ten years from 1974 to 1984, when the effective rate of protection increased by an average of 12 per cent each year, TCF employment fell by 3 per cent annually.

v. The flip side of this is that our manufacturing sector has actually increased its output as tariffs have fallen. Employment in manufacturing since the recession of the early 1990s has trended upwards, returning to the levels of the mid-1980s. Export growth in manufacturing has been twice the rate of the mid-70s to mid-80s, and growth of elaborately transformed manufactures has been even faster. And industries once

declared doomed by tariff cuts, like the automotive industry, have been turning in world-beating performances. In fact, last year Australia exported almost $4 billion worth in automotive products.

vi. Globalization has also opened the door to the benefits of greater Foreign Direct Investment. Foreign Direct Investment gives Australian industry better access to the latest technologies and helps to strengthen company profitability and jobs. It boosts exports, giving Australian companies better access to distribution channels and networks in international markets. For every dollar generated from Foreign Direct Investment in Australia, 96 cents is retained in Australia - 50 cents of that in wages.

Disadvantages for Australia due to Globalization :

i. Because businesses will export cheap labor, the country will likely see a reduction in low skill job availability. This can have negative effects on unemployment. After the industrial revolution, latest technology required less manpower so that unemployment rises.

a. unemployment is now much higher than it was in the trade-regulated era. Between 1950 and 1970, the Australian unemployment rate seldom exceeded 1 per cent of the work-seeking population. That rate has climbed to about 5.5 per cent, and is arguably much more than that because the way unemployment is now measured is less trustworthy than it used to be.

b. The reason that unemployment has increased is that trade liberalization caused the closure of thousands of uncompetitive Australian manufacturing firms with the loss of their jobs and the skills attached to them. The employment cost of transferring manufacturing from Australia to Asia has been between one and a half and two million jobs.

ii. Because some domestically (in country) produced goods may be more valuable to other countries, they may rise in price in their native country (Australia).

iii. Because domestic investors can invest outside the country, it may be more profitable for them to do so lowering investment in Australia's economy.o The last time that Australia achieved an external current account surplus was in 1975,

and since that time continuing shortfalls in foreign earnings have been balanced by borrowings, new foreign investment and the sale of Australian-owned assets. The result has been an inexorable rise in net foreign debt and a steady erosion of national sovereignty.

iv. Another major damage of globalization is that some cultures are getting lost. Global community is increasing, more and more people have become ignorant about social, ethical and moral values which are various in defining groups.

Sources used

1. Website of Australian government2. Website of Reserve Bank of Australia3. Wikipedia4. Wiki answers5. Slide share