Power point Presentation about doing business in a country.

How to Do Business in Australia

Assignment Guidelines/Example

Introduction (full example)

Doing business in Australia is very compelling – there’re few barriers to entry, their legal and corporate framework is very similar to the United States, there’s strong industrial and consumer demand, and they have a straightforward business culture. (Embassy of the United States, Canberra) With a common heritage and language, it’s easy to imagine that doing business in Australia is the same as it is in the United States (although their business folks may sound like they belong in an Outback or Foster’s beer commercial!) And while many similarities exist, things aren’t exactly the same “down under,” and smart business travelers should be aware of Australians’ professional but more laid back approach to business (and life in general) and adjust their approach accordingly.

Country Background Information

What are some of the basic things a business traveler needs to know about Australia? (in no particular order)

History : optional category – use only if the history of the country has an impact for the modern business traveler

Geography : What are the major cities/areas and why might you be visiting them? Would your business travels take you outside of the major metropolitan areas (if so where)? Is there anything else about the country’s geography that would be important for a business traveler to know? What about time zones or other considerations?

For instance in Australia:

· There are three time zones across Australia (Eastern, Central and Western), but most of the large cities are in the Eastern time zone. (Morrison and Conaway)

· Australia is in the Southern Hemisphere, so if you go in July it will be winter there. Plan accordingly.

· There is a huge, arid section of the country called “the outback” – where it’s very hot and dry. If you are driving there you need to have a reliable vehicle with a “roo” bar on the front, take plenty of water, and have a cell phone with adequate reception and other safety supplies. (Morrison and Conaway)

Economy : Is this a county whose economy would help your business? What are their major businesses (i.e. why might you be there)? What do they import/export?

· “The Australian economy has experienced continuous growth and features low unemployment, contained inflation, very low public debt, and a strong and stable financial system. By 2012, Australia had experienced more than 20 years of continued economic growth, averaging 3.5% a year.” (CIA Factbook)

· Australia is ranked #11 (out of 189) for countries in which to do business by The World Bank.

· Major industries in Australia include mining, industrial and transportation equipment, food processing, chemicals, steel and agricultural products include wheat, barley, sugarcane, fruits; cattle, sheep, poultry (CIA Factbook)

· Australia is the world's largest net exporter of coal accounting for 29% of global coal exports. Other natural resources include bauxite, coal, iron ore, copper, tin, gold, silver, uranium, nickel, tungsten, rare earth elements, mineral sands, lead, zinc, diamonds, natural gas, petroleum (CIA Factbook)

Government (political issues) and Legal Issues (these can be separate categories): Talk about the country’s governmental structure as well as political and legal systems and their impact (if any) on doing business there. There may be special considerations for contracts or other business dealings you would need to know about. Are there any tariffs or other considerations for shipping things out of the country or into the country? For instance some examples in Australia:

· Australia is an open economy with limited restrictions on the import of goods. (CIA Factbook)

· Australia is known for offering extensive social welfare programs to its citizens. (Morrison and Conaway) Negative remarks that are sometimes heard in the U.S. about “government welfare” programs would probably not be well received.

· In the late 1990’s, Australia enacted strict gun laws, banning all semiautomatic rifles and semiautomatic and pump-action shotguns and imposing a more restrictive licensing system on other firearms. The government also spent a large amount of money to buy back and destroy guns that were already owned by citizens. It’s probably not a good idea to pack a gun or discuss the politics of gun control in the U.S.

NOTE: Between the economy and government legal sections you should answer the following: What are the advantages of selling to/buying from this country? Advantages/disadvantages of having a business location in this country?

Currency : What currency do they use? How does it convert to U.S. dollars? Is it stable? Can a business person readily take funds out of the country? One example:

· Australia’s national currency is the Australian dollar which comes in denominations of $5, $10, $20, $50 and $100 notes. Coins come in 5, 10, 20 and 50 cent and one and two dollar denominations. (Australia.com) On August 29, 2014, one Australian dollar was worth .9337 U.S. dollars. (X-Rates.com)

Language : (full example)

Australians do, of course, speak English, which is their official language, but not necessarily American English. Their words come from a combination of British and American English. Spellings can also follow the British models, with “labour” instead of “labor.” (Morrison and Conaway) Most of these should not be hard to understand, simply be aware.

And as in any language, slang sometimes may make it hard to understand your Australian counterpart. While many of us are familiar with the term “barbie” (a barbeque pitt), you may not know the terms “full bottle” (fully informed), “ripper” (terrific), “ringer” (an outstanding performer) or “tucker” (food). (Morrison and Conaway) So be a “full bottle” and read up on Australian slang before you go and you’ll be a “ringer”.

Another quirk that’s helpful to know to understand your Australian business partner, Australians tend to shorten words to one syllable and add a long “e” sound at the end. So a mosquito becomes a “mozzi” (and this is why Australians are called Aussies). Two common America terms not to use are “stuffing” (like in eating too much) and “rooting” (such as cheering for a sports team). These terms have negative connotations in Australia. (Morrison and Conaway)

Other things to include:

· If you don’ speak their language do they readily speak English? Do you need a translator to make sure there aren’t misunderstandings?

· Are there certain words you need to know to be polite? Are there any words that you should avoid?

How to Get to Your Business Meeting :

You can’t always just go to a country, even if you have a passport (assuming it’s one that has enough pages and is valid for at least 6 months).

Australian examples:

· All travelers, except New Zealand citizens, must obtain a visa or travel authority before travelling to Australia. (Embassy of Australia, United States of America) All other passport holders must apply for a visa before leaving home. You can apply for a range of visas, including tourist visas and working holiday visas, at your nearest Australian Consulate. You can also apply for certain types of visas online. (Australia.com)

· There are at least 20 types of visas that allow you to enter Australia for business purposes with different costs and requirements, so you will need to carefully consider which would be the most appropriate. Some of the types of visas that would apply include: (Australian Government Department of Immigration and Boarder Protection)

· Electronic Travel Authority (subclass 601): This visa lets you visit Australia for business visitor purposes as many times as you want, for up to a year and stay up to three months for each visit. (available online for AUD20)

· eVisitor (subclass 651): This visa lets you visit Australia for business visitor purposes for up to three months at a time within a 12-month period.​ (free)

· Business Innovation and Investment (Permanent) visa (subclass 888): This visa allows you to continue to own and manage a business in Australia or continue business and investment activity in Australia.

· Visitor visa (subclass 600): This visa lets you visit Australia for business purposes for up to three, six or 12 months.

· Business Talent (Permanent) visa (subclass 132): This visa allows you to establish a new or develop an existing business in Australia.

· Talk about how you would get to the country:

· If flying, where are the major airports?

· Best way to get from the airport to your hotel (taxi, train, rent a car?)

· Any precautions in taking public transportation/renting a car?

· Once there, how would you get around in the city? Subway? Bus service? Taxi? etc.

· Do you need to get from one part of the country to another? Train service? Rent a car? Boat?

· Any other helpful information? For example:

· A flight from Los Angles to Sidney Australia is approximately 15 hours in length, crossing many time zones. And, due to the fact that you will gain a day when crossing the International Date Line, you will actually get to your destination 3-5 hours BEFORE you left. And depending on your departure location and final destination, you may arrive twp days after you take off. (Answers.com)

· Driving is on the left in Australia (which would be a good thing to know)

· And it’s best not to drive at dawn or dusk – it’s easy to hit a kangaroo! (Morrison and Conaway)

Tips for the Australian Business Traveler

While the Australians are a very friendly and down-to- earth people, that doesn’t mean you can be any less professional in your business dealings with them than you would be anywhere else in the world. Some pointers for you to remember when you are doing business in Australia (or with an Australian in the United States) are as follows:

Business Meetings

Talk about how to go about setting up a meeting (ex: directly or through an intermediary), is there a period of “getting to know you time” or meetings before a formal meeting occurs, how prompt should you be for the meeting, when is the best time to visit, any holidays/vacation periods you need to take into consideration, etc. How comfortable are they with virtual vs. face-to-face meetings? How should you follow up after a meeting? Do you need to put anything in writing? What are the “rules” for business cards?

For example:

· In Australia you should always set up meetings in advance and not just drop in on someone. (Morrison and Conaway)

· You’re expected to be prompt, but meetings may start 5-10 minutes late. (World Business Culture)

A sampling of some very practical (and cheeky) tips for Australian business people quoted directly from an Australia newspaper (Colgan):

· Aim to show up two minutes early to every external meeting. If you're going to be more than three minutes late, text your appointment to let them know.

· Be to-the-point. Have the conversation but do it efficiently and out of the way. People will appreciate getting the time back; it's like giving a small gift.

· Look people in the eye.

· Once an hour's up in the meeting, stop babbling and leave. That's all the time you get.

· Don't say “at the end of the day”. Ever.

· Research the person you are meeting. Be familiar with their achievements. Humility, like chivalry, should never die.

· If you have a hang-up about diversity, know that in the small pool of Australia's elite CEOs, one is a gay Irishman and another is a mum of triplets. Consider this for five seconds before opening your mouth.

· Nobody cares how busy you are.

· Talking about your degree is fine as long as you remember something interesting that you learnt. Don't just talk about your days at university.

· You don't have to be interested in sport but you do need to know which teams are doing well and which ones suck.

· If in doubt, dress like the CEO.

· Australians love to travel and tell stories, so it's a career investment to go to interesting places.

· Being rude to a waiter is the biggest sin.

· Beers are sacred, so no pitching for business in the bar. Exchanging advice is fine.

· Don't try to kick off a major project between Christmas and Australia Day, Not only is it un-Australian, but it will fail.

NOTE: Australia Day is a major national holiday and is celebrated on January 26, the date of the arrival of the first eleven convict ships in 1788. On Australia Day, Australians come together as a nation to celebrate what's great about Australia and being Australian. (Australia Day)

Negotiation Style ( full example)

Unless you are already working for the same company or in an established business venture, much of your interaction with your Australian counterparts will be in the area of negotiations – sales, contracts, or other such agreements. Some things about Australians from Morrison and Conway (except as noted) that would help you to keep in mind:

· Before beginning the meeting it’s important to involve your counterparts in small talk (10 minutes or so) – this period of time may be brief (compared to other cultures) but is an important first step in setting the stage for a successful interaction.

· Don’t be surprised if you’re teased during your conversation – Australians have a great sense of humor and enjoy joking with you. Just relax and be yourself.

· Be direct in your conversation, but also modest. Don’t outline your experience and expertise if it makes you sound like you know more or are better than others. The Australian business culture is egalitarian in nature. (WorldBusinessCulture.com)

· Don’t over prepare for the meeting – Australians use meetings more for debate with follow up afterwards – agendas are general and not closely followed. Being overly prepared gives the impression that you are trying to force your ideas on others and would not be well received. (WorldBusinessCulture.com)

· Australians do not respond well to high pressure sales tactics. They do appreciate a direct approach and you should be prepared to not only point out the positives of your proposal, but the negatives as well.

· They also don’t appreciate a presentation filled with hype or overstatements. Again, an honest assessment of your proposal would best suit their business style.

· Don’t expect an immediate decision – top management must be consulted and this takes time. In addition, everyone seems to have to have a say in the decision. If you are meeting with top management, give them some time to consider your proposal – don’t push for a quick answer.

· Proposals, while truthful, should be brief and to the point. And it may be better to emphasize profit over market share.

Entertaining

Things to include in this section:

· Is there anything that you should avoid discussing (ex: certain historical events, politics, religion, etc.)?

· Are there good, neutral subjects to have ready for discussion? (ex: sports and sightseeing in Australia are good topics down under)

· Are there any expectations for business or social meals? If so, who invites whom, and who pays? What are the meals like and when/where are they? Any particular table manners that are important?

· Would you expect to be invited to someone’s home? If so, is there anything in particular you should know beforehand? Should you take a gift? And if so, what?

· Alcohol and smoking – any issues here?

Cultural Considerations

Are there any overall things you need to bear in mind when meeting with people in this country (business or social)? The types of items you can include:

· How do you greet people? (both verbally and the use of handshakes, etc.)

· What forms of address (titles) do you use? Is the use of first names acceptable?

· How should you dress (business and social)? Anything you should avoid wearing?

· Are there any particular communications considerations you need to know?

· Are there any gestures or other non-verbal language (including personal space and touching) that are inappropriate? What about eye contact?

· Any other behavior that would be considered taboo?

· What about gift giving (business and/or personal)? If acceptable/required, what would be appropriate?

· What’s the general business culture like?

· What kind of management style is most effective?

· How are women and/or other minorities treated in a business environment?

· Are there any age related issues of which to be aware?

· If making a purchase (for business or personal purposes), what are the guidelines on shopping and bargaining?

Optional Item : What could you do if you have some spare time in in the country? What are some “not to be missed” experiences?

· Example: experience Australia’s food and wine culture (Autralia.com)

Summary

Briefly summarize your findings – overall, do you think (so I am asking for your opinion) that this is a country in which it would be easy or difficult for a U.S. business person to do business? Would you personally want to visit this country on business? What would you be most concerned about? How can you address these concerns so you can be successful?

Bibliography

About Our National Day. Australia Day. Retrieved September 1, 2014 from http://www.australiaday.org.au/australia-day/about-our-national-day/

Australia. Cultural Crossing. Retrieved on September 1, 2014 from http://culturecrossing.net/basics_business_student.php?id=13 .

Australia. The Central Intelligence Agency World Factbook. Retrieved on August 29, 2014 from https://www.cia.gov/library/publications/the-world-factbook/geos/as.html.

Australia Business Etiquette & Culture. Cyborlink.com. Retrieved on September 1, 2014 from http://www.cyborlink.com/besite/australia.htm.

Australia - Culture, Customs and Etiquette. Kwintessential.co.uk. Retrieved on September 1, 2014 from http://www.kwintessential.co.uk/resources/global-etiquette/australia.html

Australia’s Food and Wine. Australia.com. Retrieved on August 30, 2014 from http://www.australia.com/explore/things-to-do/food-and-wine.aspx

Colgan, Paul. (2013, October 24). 50 rules for doing business in Australia. The Sidney Morning Herald. Retrieved September 1, 2014 from http://www.smh.com.au/executive-style/management/50-rules-for-doing-business-in-australia-20131024-2w3v6.html

Currency. Australia.com. Retrieved August 29, 2014 from http://www.australia.com/about/key-facts/currency.aspx

Doing Business in Australia. World Business Culture. Retrieved September 1 2014 from http://www.worldbusinessculture.com/Business-in-Australia.html

Ease of Doing Business in Australia. The World Bank. Retrieved September 1, 2014 from http://www.doingbusiness.org/data/exploreeconomies/australia/

Guidebooks to Doing Business in Australia. Embassy of the United States, Canberra. Retrieved September 1, 2014 from http://canberra.usembassy.gov/doing-business-australia.html

How many hours is it from Australia to America? Answers.com. Retrieved on August 29, 2014 from http://www.answers.com/Q/How_many_hours_is_it_from_Australia_to_America

Morrison, Terri & Conaway, Wayne A. (2006). Kiss, Bow, or Shake Hands. Avon, MA: Adams Media.

Rate Table. X-Rates.com. Retrieved on August 29, 2014 from http://www.x-rates.com/table/?from=USD&amount=1.00.

Traveling to Australia. Embassy of Australia, United States of America. Retrieved on August 29, 2014 from http://www.usa.embassy.gov.au/whwh/visiting_australia.html

Visa Information. Australia.com. Retrieved on August 29, 2014 from http://www.australia.com/plan/before-you-go/visa-information.aspx

Visit Australia. Australian Government Department of Immigration and Boarder Protection. Retrieved on August 29, 2014 from http://www.immi.gov.au/Pages/Welcome.aspx

3