MGT 448 WK 3 County Risk and Strategic Planning Analysis

Topics: Australia, International trade, Strategic management Pages: 6 (1953 words) Published: December 12, 2013


Country Risk and Strategic Planning Analysis
November 4th, 2013
Team A
Sharon Bubak, Scott Kappers,
Phill Campagna, LeoNita Bigos-Erickson
MGT 448 – Week 3
Natalia Enders

Political, legal, regulatory risks, exchange and repatriation of funds risk, competitive risk assessment as well as tax and double taxation must be considered with a business plan, especially when going international . Australia has similar liberal political and legal values, similar to the UK and the United States. Policies and laws are implemented to protect both the people and the government. Laws and regulations are set in place and reflect both criminal and noncriminal punishments. The government is set up similar guidelines in terms of a Queen and two Houses. A lower house serves up to three terms and the upper house serves up to six terms. Do to laws and regulations changing from state to state, one must review these regulations for the particular state in which the business will be held. Legal systems in Australia have been known to be tainted by corruption and often support non legitimate aspects. This can affect bottom lines for business due to large cash payouts being required to maintain business. In the US these types of payments are referred to as shakedowns. Organized crime and terrorists are often responsible for such actions . Business policies such as HR are often similar in Australia as they are in the US. HR is still plays a similar role as it tries to keep corporations out of court, provide a fair playing field for employees and holds management accountable. Social regulations such as diversity and employee ratios are upheld in this area of the business model. The exchange of funds and repatriation will be dealt with by the laws and regulations associated in Australia. Funds will be used in the current currency issued in Australia. In this instance with the US dollar being a higher value than the current currency used in Australia, the US investor will procure a larger risk. The Australian contractors and government will benefit from the transaction . The risk assessment will provide crucial information in which will influence the decision to start the business process. This crucial information will include: Innovation, Sources of Innovation, Technology, Knowledge, Production Unit, Organizational Principles, Time, Uncertainty, Process of Accumulation, Change and Diffusion, Competition and Policy of Objectives, with the information contained in these reports we can determine if the business venture will succeed or fail . Taxation and double taxation can be a concern a well. Australia has a DTA as a treaty in international law. The DTA is a Double Taxation Act. Many aspects of the Act read very similar to the laws in the United States. The Act breaks down the areas of distribute and allocate aspects as well as resident and non-resident aspects. This 35 page document identifies all of the in’s and outs of the DTA Act. State and government tax apply to all individuals working in Australia as well as business owners. The jurisdiction tax laws may vary and may also include taxation by the originating country . When looking at the wine industry in Melbourne Australia there are a few things that really need to be paid close attention to such as the product, place, price, and how we will promote the product. Looking at the place we have determined that Melbourne will be where we will look at distributing from. Our product is an imported wine that is produced in the U.S we will determine our pricing based on what the current market will allow due to the high concentration of wineries in the Australia area. Promotions we will look at different ways to differentiate our products from the currently produced local brands. Some of the distribution and supply chain risks could include but not be limited to what if we cannot supply enough wine to our distributors locally in a timely fashion grape production goes...


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