The Australian government encourages its businesses expand its parameters beyond boarders which would not have been the case had Australia not been a capitalist nation. Despite the recent economic recession, which has put Australia in a $2 billion deficit, Australia is completely capable of bringing its numbers into the tens of billions in surplus again. Australia’s three biggest importers are Japan ($52.6 billion), China ($39.3 billion), and Korea ($19.2 billion). Trailing the top three, Australia also exports to India ($15.4 billion), and the United States ($11.6 billion). Australia has been growing and continual growth is expected in the coming years.
Currently, Australia has well-structured economic policies and procedures in the country’s system. The Australian economy competes at an international level and continues to be a target that attracts investments. The institutional structure of Australia provides reassurance for the business of society because it is constantly growing at a smooth speed, increasing over the past years gradually. Australia provides prospects of a future rising economy full of growth and prosperity. Australia has an open economy, allowing economic activities between the domestic market and the international community, while maintaining a business friendly system of taxation and minimal trade barriers. There is a lenient and highly proficient labour force, with potential economic expansion, reasonable salary and price demands maintaining on going employment development. The goods and services tax (GST), Australian value added tax, is currently taxed at 10% on most goods and services, except those that are exempt, with business and company tax rates of 30%.
Australia export foundation is both resilient and unique. Majority of Australian based business are international competitors and there is still way for more business investments in Australian because of low tariffs and minimum trade barriers. Australia makes for an excellent location for GJT’s Paradise Park especially to open without much complication.
- Describe the trading country’s structure of government, government stability and how and to what extent the government controls trade and private enterprise.
There are three levels of government in Australian: state, territory, and local. Initially, six states joined together to compose Australia. All the states are governed under one precedent constitution, and each state with its own constitution and three branches of government thereof. All of the other regions, besides the six states, are considered territories. Territories are provided the opportunity to govern themselves, as per the states function, and are also entitled to apply for statehood. Communities are further governed by local governments that are established by state or territorial governments. The local governments are not divided into any further branches other than legislative and executive sections.
The three branches of government in which Australia is divided are legislative, executive, and judiciary. The House of Representatives and Senate are the two divisions of the legislative branch. The Australian Senate is composed of seventy-six members, twelve are appointed from each state, two from the Northern Territories as well as two from the Australian Capital Territories. The House of Representatives is composed of 150 members based upon population from the states and territories. The executive division run by and operated under the laws set by the Australian constitution. Though the Australian constitution does not mention a Prime Minister, the nation still recognizes such a governing authority. Such a Prime Minister is appointed through the House of Representatives and its elected members. It is the duty of the federal parliament to enact laws with regards to customs (Australia Customs and Border Protection Service), national defence (Department of Defence), taxation (Australia Taxation Office), telecommunications(Department of Broadband, Communications and the Digital Economy), money (Department of Finance and Deregulation), copyrights and patents (Parliament of Australia), international trade/external affairs (Department of Foreign Affairs and Trade), social security (Australian Government Statutory Agency, Centrelink), immigration (Department of Immigration and Citizenship), the territories and industrial relations that cover more than one state (Attorney-General’s Department) as well as many more. Lastly, the third branch of government is the judiciary branch. The duty of this branch is to ensure that the other government branches do not ultravire their powers or prohibited as per constitution.
Since the country is in such economic well-being, there have been very little political disturbances. Australian has been spoken of as a political refuge, which is a plausible reason for the country not having had any attempts of assassination on political leaders. The government is steady and has established excellent management over the rising population.
Organizational chart:
Currently, the Prime Minister is the honourable Kevin Michael Rudd along with Deputy Prime Minister the honourable Julia Gillard and Minister of Trade the honourable Simon Crean. Mr. Crean was appointed to be the Minister of Trade in December 2007, and is responsible for negotiating Free Trade Agreements with Japan, China, and Korea as well as a few other negotiations. The studies made between Australia and these countries have concluded that a bilateral free trade agreement, between Australia and each of these countries, will provide benefits for both countries involved. During his duration in office, he has contributed to commence negotiations for free trade in Korea, and has provided on going support for all other pending free trade negotiations. Furthermore, he represents the country at various World Trade Organization (WTO) meetings around the globe.
The state government is responsible for education, transportation, family services, housing and water. Many local governments have been partitioned, combined and divided by the Minister of Local Government and State Parliament. Municipal governments are predominantly responsible for regulating site development plans, waste disposal, domestic parks and reserves, infrastructure (roads and pathways), and majority of the matters dealing with local facilities. The main aim of the Australian government’s trade policy is the establishment of new and more open markets for exports. The local government is not acknowledged in the Australian Constitution and is therefore controlled by its respective state’s parliament.
- Describe the laws and/or governmental agencies that affect your product and/or service (e.g. labour laws, trade laws).
As of November 2009, there were 5.5 million visitors to Australia which has been a generally constant number; with over 5 million international visitors every year, tourism is Australia’s largest service export industry. Australia has a rapidly growing trade structure with trade policies affecting many different countries. Australia has free trade agreements with various countries including the United States, New Zealand, Singapore, Thailand, and Chile. Australia is a part of the World Trade Organization, along with all industrialized countries in the world. This free trade agreement provides Australia comprehensive control upon trade importation and trade exportation to and from its borders, helping Australia coordinate their economy and trade freely and completely in every possible aspect that they are capable. For example, the free trade agreement with the United States gives them decreased tariffs on their exported goods in all trade sectors in Australia with the exception of textiles, clothing, and footwear. This free trade agreement has aided in cultivating good trade relationships amongst the United States and Australia. One of Australia’s greatest monopoly is also their strongest and most advantage implementable asset, which is on the telecommunications industry. It is a requirement that 55% of television programs be of original Australian content and that commercials must be 80% Australian composed. Radio stations are also required to practice these policies with each and every commercial being 80% Australian manufactured. This means that it is mandatory that we must produce and utilize Australian advertisements for GJT’s Paradise Park as oppose to using advertisements that were created in non-domestic countries.
The labour laws of Australia also vary a little bit than that of other countries’ labour laws. Their customary operational hours begin at 9am and conclude at 5pm during the weekday, and the customary operational hours during the weekend commence at 9am and terminate at 4pm. The only exceptions to this procedure are retail businesses which operate with extended hours and every city center with late afternoon shopping as a minimum as one evening a week. Australia have their vacations at the end and beginning of every year, from December to January, combining Christmas, New Year’s and the long summer school vacation period.
- Trade area and cultural analysis
- Geographic and demographic information, important customs and traditions, other pertinent cultural information, competitive advantages and disadvantages of the proposed business.
Australia is considered the world’s most flat and dry mass of land, after Antarctica, with an average land elevation of 0.03km. Australia has nearly the equivalent landmass as the United States, with the continent bordered by its low-lying coastal plains. Whereas the center of Australia is generally flat, the residual amount of land is enveloped with mountainous ranges, such as the Victorian (Australian) Alps and the ranges of Tasmania. These mountainous ranges date back to millions of years old, whilst the American and European land masses merely date back 20, 000 years.
Majority of the country’s citizens live on the eastern coast in large, modern cities. The mountains which border the coasts are the chief reason for majority of rainfall to run toward the sea and leave 90% of the land semi-arid. The inner plain is for the most part a series of Great Plains, or low plateaus, which are generally located in the upper northeast corner of the country. Australia is the most lightly inhabited of the populated continents, and is well-known for its isolated, desolate colonies/settlements. The largest number of Australians exists in the ten biggest municipalities by the side of the coast. The Australia population at the end of June 2009 was estimated to be 21.9 million people, which is a population increase of 2.1% from the previous year’s population. The population of Australia is composed of individuals from more than 250 different countries.
Australia also possesses an absolutely diverse social and cultural group, aboriginals. The aboriginals are almost entirely distinct from the rest of the Australian population in characteristic of their verbal communication, customs and traditions, and social organization. They are further entirely distinct in the midst of themselves, containing more than 100 unique aboriginal languages practiced. The aboriginals possess distinctive forms of art, such as music and dance, relationship behaviours/practices, visual art forms and rituals/traditions that all vary from Australians. The aboriginals and Australians also have resemblances that have joined them together for trade, ceremonies, and even for marital relationships, which has authorized them to preserve tradition and folklore. Even to this day, district differences remain; there isn’t a single aboriginal civilization and individuals of separate distinct districts tend to highlight their own individuality and uniqueness. As the persons of the Western society, Australia moreover celebrates many of the identical public holidays such as Easter and Christmas.
Australia is a country with a small amount of theme parks. Wet’ n’ Wild, Warner Bros. Movie World, Sea World, Dream World, and Currumbin Sanctuary are theme parks that are presently operational in Australia. With a small number of theme parks, the direct competition is scarce. GJT’s Paradise Park would be a theme park like none other in the country, transporting advanced and improved rides and attractions to the Australian community. GJT’s Paradise Park will not merely raise the bar but take it down all together because their will be no one to compete with it, it just cannot be taken to the next level. Melbourne is an ideal location to construct an amusement park. Melbourne is a huge city with a largely inhabited surrounding area. The land in the surrounding areas is unacquainted and completely available for starting up an amusement park. Melbourne is the capital of Victoria and is the second most populous in all of Australia. There are 3.8 million people in this one city by itself with many main highways all meeting in the city of Melbourne. Statistics reveal that a new attraction, in any size city will assist the population to develop by attracting more people for jobs and entertainment. The population enhancement will draw additional business to the Melbourne community.
- Market segment analysis, target market (age, income level, population estimate, other specific demographic and economic information), customer buying behaviour related to the proposed business.
GJT’s Paradise Park is an amusement park which functions in many market segments, which include travel and tourism, media networks, consumer products, entertainment, service and technological sectors as well as many others. Travel and tourism is a key market segment because it is what will attract foreign visitors as well as visitors from around Australia to the Greater Melbourne Area.
The construction and operation of GJT’s Paradise Park will be beneficial for contractors to associate with the company because it will provide more business for the domestic enterprises and offer goods and services. Three parties benefit from the business produced, which are the supplies contractors, the amusement park (company) and the customers. The company will acquire all necessary products and provide the promotional advertisements associated through arrangements made with companies of any size, location, and competence.
There is no specific target market for GJT’s Paradise Park because the amusement park is capable of catering towards the interest of a variety of people. From little kids to the elderly, there is something for everyone and no specific age group, even though teenagers are most probably the ones who will want to visit most often, the park is available to everyone.
Australia is a country that currently holds the second highest Human Development Index (HDI) percentage of 0.97, which is a two rank increase, trailing Norway by a point difference of 0.01. Canada has recently declined to the fourth highest this year due to a rank decrease, previously third. GJT’s Paradise Park is dependent upon an internationally competitive economy to be the host of a business with the potential of a great deal of growth and expansion. Australia is an excellent location because the economy has grown to welcome the service industry with a lot of potential to compose a successful business.
- Analysis of the potential location – importance and requirements of each trade document required by Canada and the country selected for your business.
Melbourne not only has 3.8 million people but it is also within very close proximity of Sydney, Australia’s largest city, with a population of 4.4 million people. Sydney is an excellent location for traveller’s to relate with their experience at GJT’s Paradise Park. This location is a very easily accessible and suitable in terms of transportation because the city is accessible by air, land and water.
The amusement park will absolutely required four licences and twenty-one further optional licences because of the necessary business plans, refer to appendix II. The four absolutely required licences are: an Australian Business Number Registration (ABN), Land Transfer Duty, TFN Application/Enquiry – Company, and a Working with Children Check. Any enterprise involved with production of goods, services, livestock and/or professional advice is required an Australian Business Number, which simplifies business connections with government agencies and the Australian Taxation Office, mainly taxation/legal identification purposes. Land Transfer Duty and Tax File Number Application/Enquiry for a company are two other taxation involved requirements. The Working with Children Check is similar to the Canadian Criminal Check, where everyone who intends to volunteer/work with persons under the age of majority (18) is required to have this check done for most jobs in the State of Victoria. In the twenty-one additionally obligated licences: four are in concern with Employing Staff and Contractors (Employer Requirements - Superannuation Guarantee, Registration for Fringe Benefits Tax, Registration for Payroll Tax, and Registration for WorkSafe Injury Insurance), and the others in Taxation (Land Tax as well as a Goods and Services Tax Registration), Advertising/Signs (Trade Promotion Lottery Permit), Innovation (Registration of a Trade Mark) as well as Plant, Products and Equipment (Registration of Cooling Tower Systems) and thirteen licences for Buildings and Land Use. Beginning an amusement park in any country is difficult yet alone a foreign one, but despite that Australia is unproblematic in terms of establishing a business and hospitable to investments in the service industry.
IV. PLANNED OPERATION OF THE PROPOSED BUSINESS
- Proposed Organization
- Type of ownership and rationale; start-up steps to form the business; planned personnel (or functional) needs; proposed staffing to handle managerial, financial, marketing, legal, production (if applicable) functions; proposed organization chart, and brief job descriptions, if necessary.
After thorough analysis I determined it would be most beneficial if GJT’s Paradise Park were a corporation. A corporation is an entity itself that is regulated apart from its members. There are many beneficial factors of a corporation, which will aid GJT’s Paradise Park’s employment.
So as to establish GJT’s Paradise Park, particular steps and procedures are meant to be followed:
Step 1: Ensure that the name of the business is available and not presently occupied by another company. Since, this name is unique and solely used for this Australian theme park, this name is available.
Step 2: Reservation of the name of the amusement park through completing the ‘Application for reservation of a name’ (form 410). All forms available online at the Australia Securities and Investments Commission government website.
Step 3: Completing ‘Application for Registration of a Foreign Company’ (form 402). The application possesses common information in regards to the company.
Step 4: A lengthy list of certification and credentials is a required submission with form 402, which includes: a present Certificate of Incorporation or Registration, corporate constitution, land and property documentations, an article outlining the authority of Australian administrators as well as a message of representation of the domestic representative (Australian resident) with the authority to speak on behalf of the amusement park.
Step 5: Submitting every corresponding document with it respective charges.
GJT’s Paradise Park is going to present an overabundance of employment opportunities in the greater Melbourne area. Precise career opportunities will encompass: managers, accounting personnel, security guards, kiosk employees, ticket collectors, customer service staff, photographers, cooks, waiters and other restaurant personnel, ride operators, mechanical engineers, electrical service engineers, lifeguards, registered nurses and assistants as well as environmental planners and sanitization engineers. All employees are to carry their communication devices at all times.
- Proposed Product/Service
- Details of the product(s)/service(s) to be offered; include potential suppliers, manufacturing plans, inventory policies, if applicable. If the business is a service business, appropriate information about plans to provide the service, including necessary supplies.
The amusement park will contain many rides, shops, an underwater restaurant, and sceneries. GJT’s Paradise Park will surely provide the customer the feel of paradise. Paradise is described as optimistic, harmonious and timeless/everlasting. We want our visitors to feel that exact way. They should feel optimism and happy about coming to the park and we can make arrangements for just that purpose, ranging from fun attractions to comedy. There visit should be pleasant-sounding and full of wonderful thoughts. They should have a fulfillment that there time was well spent because there are so many rides and events that it won’t always be packed with excruciatingly long rides.
One of the main focuses of GJT’s Paradise Park is the wildlife of Australia. Therefore, the rides will include unique animals of Australia, such as the dingo and the Tasmanian devil. These are merely two of the many unique animals of Australia that will be incorporated into the rides of the amusement park. On the other hand, there is the marine life of Australia. The amusement park will have an underwater restaurant, ‘The Lost City of Atlantis’ which focuses on catering seafood platters but it is not limited to seafood, it just specializes in it for the theme of the restaurant. This underwater restaurant will have a humourous film running on the wall with two narrational characters. One is Poseidon, the Greek god of water, earthquake and horses, while the other is Neptune the Roman god of water and sea. Thus, the narrational film is given the name, ‘the Clash of the Titans’ and it involves our narrators touring our little guests through the seven seas while resolving their own little issues.
Most of our suppliers will be domestic but we will import goods and souvenirs from Canada and other parts of the world to promote trade and fame among these two quite so similar countries and others. The domestic market is predominant in primarily trading services, as well as industrial products and goods. Therefore, the type of business pursued has all its necessary supplies in the domestic market. An amusement park is a service which requires raw materials, both of which are specialties in the Australian economy. Despite the various free trade agreements, it will create more business within Australia to get our supplies from this domestic market. It will also reduce the amount of costs involved as well as time while eliminating the need for further acquiring licences to trade with another country, which is besides the cost and negotiation factors.
GJT’s Paradise Park focuses on being more environmentally friendly. Therefore, all waste disposals are filtered to recyclables, organic matter and pure garbage. This way there is a reduction in waste output and the environment is being more taken care of. The amusement park will also have its own power generators, which will reduce the business’ long-term costs. This will not affect the amusement park’s proficiency to operate because there will be two generators for the purpose of when one is not working. Even if both generators break down, we have the engineers to fix it and we have stored electricity under the amusement park, for 72 hours, which can also be charged up using the pre-installed solar panels. The amusement park is also big enough to support a sewage treatment plant. This plant will take any sewage water and separate it into clean water and the bad residue. The clean water can be used for watering the land and cleaning the roads, while the residue is disposed of according to municipal regulations.
- How the product/service will be transported to/from the home country; costs, benefits, risks of the transportation method; documents needed to transport the product.
Receiving and sending products to and from Australia will be the most difficult part but it is an easily resolved problem. Australia has a laissez-faire (let to do) style of market which means that the government imposes very little or no restrictions and borders. Rather, spending lots of money importing products/supplies, it is easier and more cost-efficient to think local. All necessary resources for an amusement park are available in Australia, so there is not necessary to have to go beyond the Australian coasts for anything like services or raw materials. Obtaining all necessary supplies from a domestic business/supplier means less cost-associated, less risks of a particular transportation method and less document requirements other than what was necessary to start the business.
The types of products and services that may need to be brought in from foreign countries may be: advertisement services in other countries and merchandise that needs to be manufactured cheaply which can be made in Asia and shipped to Australian very easily and reasonably quick. Since, Australia already has strong trade relations in the Asian market that will not be a problem and the close proximity allows for containerized products to be shipped and then road transported easily from Melbourne to the amusement park location. This is because Melbourne has many main highways and is right by the coast with a large harbour where shipments can arrive.
- Proposed Strategies
- Proposed pricing policies, the currency to be used , costs, mark-ups, markdowns, competitive pricing analysis, factors that could affect the price of the product or service (e.g. competition, political factors, taxes, tariffs, transportation costs, weather)
Since, the amusement park is located in Australia, it would probably be best to use the Australian dollar as the accepted currency. This would keep away from the problems associated with currency rates and exchanges as well as making it simpler for accounting and taxation purposes. Since this is a service business, most costs and liabilities are present in the start-up cost but there are some regular costs. Therefore, the price should be able to cover the business expenses and at the very least allow the business to reach the breakeven point. The majority of the businesses revenue will come from ticket sales but it may also come from parking fees, food and beverage sales, as well as souvenir sales. In order to attract more customers and make the consumer feel they are truly paying a good price, a pay-one-price is recommended as oppose to a pay-as-you-go price. A pay as you go price system is where the guest purchases rides individually. A pay one price system is where the guest pays one fee and is entitled to go on however many rides, however many times as they wish. Another factor would be the current minimum wage in Australia, which is $14.31 ADU ($13.59 CDN). Since operational hours in Australia are from 9am to 5pm, hiring a worker for a day will be a minimum of $114.48. Since, workers will not outnumber customers and certain jobs require more pay, an estimated range between $114.48 ($14.31/hr) and $240 ($30/hr) will encompass all jobs. Therefore, a price of $89.95 for a single adult admission and $65.95 for a Child (3-13) or senior is reasonable. Currently, other amusement parks are priced at $69.95 for an adult admission and $45.95 for a child admission but they do not offer as many attractions as GJT’s Paradise Park. The amusement park will be able to lower its prices as investments grow and the business starts get off the ground.
There will be souvenir shops located at Tazmanian village and Kangaroo Town, both near the park entrance. They will offer a wide variety of merchandise ranging from clothing to toys to candy, and something for everyone. There will assorted merchandise with the GJT’s Paradise Park trademark, such as shot glasses, mugs, plushies and more. The business would be able to place any desired price range, since visitors have no other option to purchase the same products elsewhere because these items will uniquely be sold at the amusement park itself. Therefore, whatever price makes a profit will be suitable but prices will be within reason so the consumer does feel taken advantage of and because it is the ethical choice.
- Proposed promotional program, promotional activities, media availability, costs, one-year promotional plan outline, local customs relating to business readiness.
The community will have to be informed about GJT’s Paradise Park. Promotion will not strictly be to the Australian community, but also to other countries with potential visitors. The promotional plan can be split into three separate divisions: advertising, publicity, as well as individual and sales promotion.
Advertising will include the use of brochures, flyers, notices, television commercials, radio broadcasts, internet, magazine, travel and tour guides/agencies, and newspaper appeals in Australia to spread word of GJT’s Paradise Park. Brochures will be given to travel agencies and airport tourist info locations. Commercials will air on hit radio and TV channels.
The press and media reporters will be given an opportunity enjoy the park and provide positive feedbacks in regards to the park. This theme park will compete against other country’s theme parks, so we must appeal to other countries that this amusement park is superior and invite them to see for themselves.
Word of mouth is the best marketing tool, and customers will want to tell people that they came to the amusement park and they will promote the business. As for sales promotions, there will be coupons and discounts that will expire a year from the opening date which will give the consumer an opportunity to experience the thrill park at a lower price and make them willing to pay the regular price to come to the amusement park again.
V. BIBLIOGRAPHY
Appendix I
Select how you will advertise your business:
Select which building activities are applicable to your situation:
Select which employment related activities are relevant to your business:
Select how your business will wish to protect its intellectual property
Select which of the following may apply to your business:
International Business Plan