Investment in Australia

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Executive Summary

Mayu LLC is a service and product company dealing in fashion and design.  The company was founded by Star Mc Cain.  The company makes use of ecofriendly, modern and upcycled materials to create attractive and ancient water art. The company takes part in appreciation events, image enhancing programs for outreach centers and hospitals, bridal showers, guiding programs as well as gals and ceremonies.  The company’s objective in the event is designing and make it colorful. Currently.

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This organization is located in the U.S.A ands has gained much success. Its popularity and success in the American art and hospitality industry has led eyeing a possible market in Australia.

Introduction

Mayu art is a small business that has gained much popularity in the American art and design market. Mayu art company specializes in art and design by making use marble silk products in producing its products. The company produces various products from headbands, scarves, neckties, and bowties, painted origami flowers, marbled cotton, and placemats. The organization aims at setting up a branch in Australia due to various reasons.  To start with, the Australian fashion industry has been performing poorly and the manger believes that introducing a new form of design in the fashion and design industry would bring a major success to the company as well as the fashion and design industry (Bjorklund, 2014).  The organization also aims at setting up their firm in Australia since the country provides a good environment for growth of foreign organizations. Additionally, the Australian government offers significant support to small business hence the firm stands an opportunity to grow. However, a major barrier to the company is the already existing fashion and design companies in the region.  However, the company will use marble products to its own advantage. The firm also reviewed studies and research on how small companies faired I Australia.  The reports showed that 1000 in every 3000 small businesses succeed in the Australian economy.  This report showed that the firm stood a chance of succeeding in the Australian economy.

Analysis of International Business Opportunity

Economic environment

Australia has had 25 consecutive years of impressive output growth. The gross domestic product per capital is high. In spite of the world product super cycle, the Australian economy still does well.  The equilibrium of the of economic activity from product investment to different activities is advances, and facilitated by fiscal and monetary policies, product markets, flexible labor and currency depreciation. However, the country’s economy shares a universal risk of the “low growth trap”. Alongside most OECD nations, increase in productivity growth slowed since the 1990’s.  In recent decades, Australians economy have heavily relied on trade (Bjorklund, 2014).   Trades role in Australian economy can be observed through the GDP percentage, which has significantly grown in the last two decades to 48%. In 2008, economic development and growth was achieved through the significant rise in the two way trade in services and goods.

The central bank is the regulatory agency obligated for maintaining stability and integrity of Australian Financial System.  In Australians private sector, there are four domestic banks operating nationally and provides various services to their customers.  The increase in size and complication of the Australian financial system has had a rapid increase in the last two decades via factors like technology advancement and financial deregulation. The major characteristics of financial deregulation from international investment are elimination of numerous controls in foreign exchange.   Guarantees, loans and other financing tools are often used development of infrastructure. However, the country also provides the funds magnitude required for large scale infrastructural investments and could facilitate partnership of governments to infrastructural. The economic department has offered a single loan and is considering the utilization of financial instruments and further loans that reflect the help policy focus on innovating and collaborating with the private sector.

Social environment

Australia is made up of a cacophony of already established traditions and influences from other cultures. The nation’s original inhabitants’ are the Toress strait people and Aboriginal. People from this culture have lived in Australia for about 40, 000 years. The rest of the Australian population is made up of immigrants   who arrived in Australia from roughly 200 centuries ago. Australian population is 23 million mainly made up of the aboriginal and Toress strait.  Most immigrants who came to Australia in 1945, were encouraged by family commitment and escaping prosecution, war and poverty (Brammall, 2013). Migrants have had a significant social impact.  This has enriched various factors of the Australian life from art to business, comedy. Science, sporting and cooking. This has led to an enriched life in Australia influenced by different culture and tradition. In Australia, there are various shred values.  They include: respect for individuals, their freedom, dignity and worth.  Freedom of association and speech, freedom of secular government and religion. People are expected to show support for the parliamentary democracy and law.  Australians are also expected to have an egalitarianism spirit through embracing mutual respect, patience and tolerance, religious beliefs and gender. All Australians are motivated to learn their national language to unify the Australian society element. However, there other languages like Greek, Vietnamese, Arabic, Australians, Mandarin and 200 languages. The major clothing worn in Australia nation shows diversity and climatic variations.

There are various laws that impact most investing contracts.  The Australian state and government a ns well as territorial legislation is established to protect the environment, the community, and the consumers as well as promote competition and fair trade.  The laws control the manner in which business associates with customers, suppliers and other businesses. These laws include

Competition Laws

He Australian economy is made up of a statutory framework that ensures that trade is fair for consumers and businesses.  The administration and enforcement of this framework is the Australian Competition and Consumer Commission.

Product Liability regulation

The Australian state also has a framework that regulates products information standards and safety. Territory and state governments are involved in enforcing product safety laws.

Environmental Legislation

The Australian government also puts in place various policies that protect the environment. The Australian government legislation, controls the assessment and approval process of cultural concerns and environmental concerns.

Privacy Laws

Australia entails a state privacy legislation that is controlled by OAIC that controls the manner in which business collects, accesses and stores personal communication and information. There are particular requirements on management of information considered to be sensitive.

Operation of the Proposed Business

Organization

The company is owned by McCain and his sons Edam Mc Cain and Oliver Goodwood.  The firm does not support a hierarchy leadership system but instead work as a team. Being a fashion and design firm, the use of teams and collaboration place a significant role in enhancing creativity and improving the design and the quality of services given by the firm. While investing in Australia, there are various start up processes that require to be followed to make the investment successful as well as provide information on the fashion and design market in Australia.  To start with, is seeking advice regarding the investment (Delimatsis, 2016).  This will involve consulting a Chartered accountants to aid in financial advice, starting up and business planning. This could also include seeking mentorship for employees as well as business guides on how to get additional finance. The other ste4p involves development of a business plan.  The business plan is a process that shows how to execute the business idea and is made up of how to execute the idea, market research, the method of delivery and calculating the resources needed. The company is structured to be a limited company.

The third step entails finding investors to fund a project. Despite the factor that the company has been faring well in America and has accrued major profits.  There is still need for additional investors who will aid in the establishment of a better firm that will enable mass production and quality production.

Product

The products produced by the design company include, painted origami flowers, marbled cotton, and placemats and services like designing events.  With various cultural operations in the country, such products can be marketed during events or through creation of events related to the products. Additionally, this products could be supplied in art and fashion ships as well as in house hold shops dealing in flowers, cotton, and placemats.

Transformation

The well connected and developed Australian infrastructure enhances easy transport through road.  Most products will be delivered through roads since it is cheaper, effective and timely.  However, the major risk associated with this cost is lateness and destruction of materials.

Market Entry

The company will make use of indirect exporting which refers to exporting materials and later making up the end product.  The exported material will include, garments, color as well as labor.  The company will make a five years contract with Australian government to get authorization of trading in the country

Marketing strategy Plan

A major marketing strategy that will be used will be the pricing strategy.  The organization will have a fair price on its services and products to lure consumers.  Additionally, the company will also make use of advertisements to show people on the how to use new forms of art. . In order to have profit from their sales (Shankar & Carpenter, 2012). The company shall consult the governments to ensure that it is not highly taxed. The required resources are moved in bulk to minimize the cost of transportation hence enabling a fair price.

Therefore, MAYU Company stands a great chance of succeeding in the Australian economy.  The friendly social, economic and political environment also highly contributes to fathoms that could enhance growth of the country. The fashion industry in Australia still has a gap that Mayu could cover and achieve succe3ss hence increasing and expanding their firm.  It is also evident that the Australian government imposes less tariff and taxes that enable foreign countries perform well.

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