Macro- Environmental Research paper
Jessica Broughan 3283990
Adrian Kazacos 3238737
Joshua Shuean Loong Lee 3364045
Matthew Austin Priyono 3310026
Hugo Ross 3377946
Lite n Easy is an exclusively Australian business and has been ‘making it easy to eat well since 1986.’ The organisation deliver great tasting, healthy meals that make it easy to lose weight and manage your weight. It’s also a convenient solution for time poor people who are too busy to shop or cook every day. Currently Lite n Easy operate solely in Australia and are looking for a potential global expansion into Singapore.
Singapore is a melting pot of many different cultures and nationalities, providing many culturally inspired cuisines and is considered the most innovative country is the Asia Pacific region. Food is a vital part of the Singaporean lifestyle, but due to high work commitments time is limited, and preparation of food is jeopardized, but high quality food is still desired. Singapore has extremely stringent food safety regulations and guidelines that refer and these guidelines refer to all stages of food preparation, manufacturing and distribution. A comparison of Hofstede’s Cultural Dimension Theory was undertaken, the five aspects being; power distance, individualism, Masculinity & Femininity, Uncertainty avoidance and long term orientation. The results of Hofstede’s theory depict very different cultural dimensions between Australia and Singapore.
The political environment in Singapore is very stable with low corruption, low crime rates, stable ruling government, good anti-terrorism strategies and have exceptionally low tax rates, which is ideal for foreign investment. Labor laws are similar to that in Australia, as they are part of the Commonwealth and thus make it appealing and familiar to investors. A pillar of trust and a strong relationship has been formed between Australia and Singapore due to the Free Trade Agreement (SAFTA). The agreement successfully eliminated all tariffs, and opened doors to banking, business and trade opportunities over the years. The factors clearly illustrate why Singapore has been an ideal destination of foreign investment across Southeast-Asia.
Although GDP has fluctuated over the past few years, it is expected to increase from 2012 to 2013 and it can be seen that the Singapore economy is stable, increasing the attractiveness to foreign investors. The simplicity of trading across borders, dealing with construction permits, logistical expertise, as well as accessing electricity and property, paying taxes and enforcing contracts make Singapore an extremely appealing for an Australian business to expand their operations into Singapore. Singaporeans household disposable income has increased from 2011 to 2012, the top 10% of Singaporean workers account for 29% of total income. However, it is predicted that this trend will ease in 2013, with a cutback in consumer spending on , clothing, utility savings and food products.
TABLE OF CONTENTS
Geert Hofstede’s Cultural Dimensions Theory3
LEGAL AND POLITICAL5
Singapore has a population of 5,183,700 according to the (World Bank 2011), of which 42% are foreign (SINGSTAT 2013). It was deemed the ‘most innovative Asia-Pacific city’ by the (Ministry of Foreign Affairs Singapore 2013) and is made up of a melting pot of different people and cultures; predominantly Chinese (mostly Buddhist), Malay (mostly Muslim), Indian (mostly Hindu), Caucasian and other Asian minorities (Kotabe 2011). These groups can be seen as an indication of the immigration history throughout time in Singapore as it became a business hub for South-east Asia.
The influences of nation and society are factors that affect our lives, values, beliefs and our views on the...