Strategic Approach to Export Activities of Australian Business Organizations - Essay Example

Strategic approach to Export activities of Australian Business Organizations Introduction The globalization of business enterprises has rapidly gained pace in recent past years which have enabled many organizations to perform at international level and have their business operations in multiple geographical locations. The international business is mainly concern with import and export activities of goods and services across nations. It has been observed that organizations have increased their efforts to bring their name at international level of business affairs through export activities. These export activities have been proved to be more effective in improving the profitability of organizations which were earlier present only in local markets. In Australian business environment also it is very much evident that organizations which engaged in export businesses have more growth prospects and opportunities (Austrade-1, n.d.). These business organizations also receive substantial support from the government agencies in performing their export activities being within a framework of trade policies and laws. The export activities also help in building reputation in global market as well as provide economic support to the nation (Chen p6, 2004). Better technologies and management practices are also learned by the organizations under the export trade activities. Existing export strategies of Australian trade organizations The export business affairs of Australian organizations are performed within a framework which provides a strategic approach to the export activities and adds more effectiveness and efficiency to the trade practices of the organizations (Austrade-2, n.d.). The export activities comprises certain basic steps which are required to be followed by the organizations which have plans to expand their business operations at international level. These basic steps provide the organizations with ideas regarding the export activities and its importance in terms of enhancing growth opportunities and competitiveness in global market (Austrade-3, n.d.). The strategies adopted for export activities by Australian organizations provide support to all of the various activities which are done in order to perform export activities. Australian multinational organizations under the strategic approach to export activities focus on the opportunities which are available in offshore marketing. The offshore marketing strategy considers the global market trends which helps the organizations to develop their strategy for expansion through export activities. The export strategies adopted by Australian organizations also has a concern towards their export destinations which includes both the current and prospective destinations for export. The identification and selection of current and prospective export destinations helps organizations to obtain potential business locations where the goods and services could be exported. The Australian business organizations also utilize their advantage of being a major supplier of many resources as goods and services for many other nations. On the other hand the nation also faces several barriers in terms of market access which creates obstruction for the organizations. The strategic approach towards export activities insists on establishing a connection between the local suppliers of Australia and the global customers so that their demands can be met through these export activities. The service sector of Australia has recorded impressive growth and profitability through the export activities which supports the export activities as a crucial part towards the economic development of the nation (SGSE, 2008). Australian Government support through AUSTRADE in International business The government of Australia provides substantial support to the international business operations performed by the Australian MNCs through the legal framework for the business operations. The Australian government looks after all of the export related trade activities and their promotion through the Australian Trade Commission (AUSTRADE). The AUSTRADE provides support to the export related business and has offices spread in the domestic market of Australia for assistance and also has international presence in 50 different countries other than Australia. To promote the export businesses of processed food items the government has also formed a trading organization in Japan with an intention to promote the Australian origin food products in Japan. The AUSTRADE has a crucial role in promoting the export business of Australian origin processed food in Japan. Some other government supported export business programs include Export Market Development Grants Schemes (EMDG) and Innovative Agricultural Marketing Program (IAMP). These programs have been carried out to provide the financial assistance to the Australian companies which fulfills certain criteria under the export activities, overall business revenue and business performances. The Australian business organizations also has a prominent name in export of agricultural products such as wheat for which the government has formed the Australian Wheat Board (AWB) which acts as a statutory body for the export activities of wheat and sell them to foreign countries. The export activities pertaining to the diary products of Australia the government has formed the Australian Dairy Corporation (ADC) which acts as governing body to promote the dairy products to other nations and also into their domestic market. To promote the Australian meat industry in international market to meet the demands of the customers the Australian Meat and Livestock Corporation (AMLC) has been formed by the government. The AMLC looks after the operations to maximize the returns and profitability from both domestic and international market while it also plays an important role in securing and protecting the access to the local and domestic markets. Another area of interest for export business has been found in the horticulture industry of Australia which resulted into formation of the Australian horticultural Corporation (AHC). The AHC looks after the export activities of horticultural products and raises the returns generated from the export of those horticultural products. The Australian Wine and Brandy Corporation (AWBC) promote the export of grape products around the world and in domestic markets. The AWBC has always insisted on achieving the reputation in the global wine and liquor market and also committed to the knowledge development in the field of wine production and fermentation. Exporting fabrics and garments raw materials has also attracted the Australian organization which in turn formed the Australian Wool research and Promotion Organization (AWRAP) by the government in 1993. It was formed by the merger of Australian Wool Corporation and the Wool Research and Development Corporation (FASonline, 2005). Benefits to the Australian business organizations from AUSTRADE The business organizations of Australia engaged in export activities receives substantial support from the Australian government through various programs and initiatives. The government has formed many governing bodies pertaining to different industry types which include agricultural and allied products. For example the AWB has contributed an amount of $2.5 million in 1994 from the export sales activities of wheat from Australian market. The government also provides a funding assistance to the wheat research activities by up to 0.5% of the total gross value of wheat which has been produced for research purpose. Through the increase in the number of licensees of “Australian dairy Mark” brand during 1994-95 and signing of MoU has helped the nation to expand their export business of dairy products in nations like China and Vietnam apart from Japan, Hong Kong, and Singapore. The organizations involved in promoting meat export around the world has received support from the AMLC which provided concrete advertisement of Aussie Beef in international market and also improved the business performance in regions such as North Asia, America, Middle East, South eastern region of Asia. Numerous private brands got opportunity to operate at different business locations under the brand of Aussie Beef label. Some other benefitted industries from the Australian government’s initiatives for promoting export business are Wine, Wool, and Horticultural industry which produces and exports the essential pants and natural resources to other nations. The wine industry of Australia has proved to be potential source of export business by promoting the product in Australia and in overseas markets. The body also issues the licenses and performs tasks associated with the shipments of wines to be exported. The AWRAP provides support to the wool research industry of Australia by its customer-focused international marketing research approach which has been formed by the merger of AWARAP and the International Wool Secretariat in 1994(FASonline, 2005). Australian export industry and its related issues The Australian government has prominently supported the export activities which have brought the name of Australia among the nations which focuses on the export activities to establish their business environments and come up as a leading name in the international market. In spite of numerous efforts made by the government to promote their export activities the nation faces many problems which are related to the trade affairs and legal systems. Though Australia has been considered as a major supplier of several products to many other nations in the context of agricultural products export it has remained low performer to attract foreign investments in the nation (Cattaui, 2002). The initiatives taken up by the government also faces problems due to several activities which are performed at international level and influences the business activities of global market. These activities poses threats to the safety and security of other nations due to which the international trade affairs have became more stringent. The rapid increase in the terrorist activities has heavily influenced the trade relations between many nations which have been reflected onto their trade affairs. Some other complexities have also been observed from the continuously increasing level of competition in international market for export activities and variations which are present in the legal systems of different nations. These variations in the legal systems of the nations creates problem for the nation to enter new business locations which has legal system different from that of the Australia. The issue of patent registration has also proved to be a crucial issue in the export activities of the Australian organizations (Austrade-4, n.d.). Conclusion The export business of Australia has always remained a major strength for the nation especially in agricultural industries and its related products. The country has always contributed as a major supplier of agricultural products and byproducts such as wheat, essential floral products and dry fruits, breweries, wool and cotton garments, dairy products and many more. Exporting these products in international market helps the country to develop its economy and a major contribution is made to the country’s economy from these export businesses. But being a major player in export business does not ensure the proper growth and development of the nation since it has found to be less effective in attracting foreign investments into the nation. Bringing foreign investments creates more job opportunities and other sources of doing businesses which directly provides substantial contribution to the economy of the nation. The nation has provided equal importance to its export industry including all of its major products which are consumed worldwide. The government of the nation is very much supportive in the context of providing better export opportunities for all of its industries through numerous schemes and programmes. References Austrade-1. No date. Austrade - About Exporting. [Online] Available at: http://www.austrade.gov.au/How-to-export/default.aspx [Accessed on January 4, 2010]. Austrade-2. No date. Austrade - Export strategy. [Online] Available at: http://www.austrade.gov.au/Export-strategy/default.aspx [Accessed on January 4, 2010]. Austrade-3. No date. Austrade - Getting ready for export. [Online] Available at: http://www.austrade.gov.au/Getting-ready-for-export/default.aspx [Accessed on January 4, 2010]. Austrade-4. No date. Austrade - Legal issues. [Online] Available at: http://www.austrade.gov.au/Legal-issues/default.aspx [Accessed on January 4, 2010]. Cattaui, M. 2002. International Chamber of Commerce - Pitfalls of a Fortress Australia. [Online] Available at: http://www.iccwbo.org/iccdgdc/index.html [Accessed on January 4, 2010]. Chen, J. 2004. International institutions and multinational enterprises: global players - global markets. Edward Elgar Publishing. FASonline. 2005. FASonline – Australia. [Online] Available at: http://www.fas.usda.gov/cmp/com-study/1996/australi.html [Accessed on January 4, 2010]. SGSE. 2008. Department of Trade and Economic development - TOWARDS A SERVICES EXPORT STRATEGY FOR SOUTH AUSTRALIA. [Online] Available at: http://www.servicesaustralia.org.au/pdfFilesResearch/SAServicesExportStrategy.pdf [Accessed on January 4, 2010]. Read More