Starbucks in Australia

Conducting Business in Australia: Prospects and Strategies for International Managers

Australia, with a competitive, modern economy, an educated workforce, modern communications, and its positioning on the doorstep of Asia, has attracted many international businesses that have enjoyed success there. Some companies that immediately come to mind are Nokia and Optus (Singtel) in the case of telecommunications, IKEA in home design, the global accounting firms, and well-known brands such as Google, Yahoo, and FedEx. Australia has attracted to its shores well-known food franchises, such as McDonald’s, KFC, Starbucks, and BaskinRobbins. It has airlines, including Virgin Blue; the big agriculture and mining equipment companies such as Rio Tinto; Rivers and other big clothing companies; computing companies such as HewlettPackard; and manufacturers such as Toyota. Looking to the future, Australia offers significant investment and business opportunities for international managers seeking a presence there for their firms. This article provides an overview of the Australian business, government, and legal scene and offers some practical guidance for managers who decide to venture there. © 2008 Wiley Periodicals, Inc. Australia, an island continent situated in the Southern Hemisphere between the Indian Ocean and South Pacific, was occupied by Aboriginal groups until formal settlement by the British in the late eighteenth century. Except for the coastal areas, much of Australia is dry and arid. Australia’s nearest neighbors are Papua New Guinea, Indonesia to the north, New Zealand to the southeast, and the Melanesians and Polynesians in the Pacific Islands to the East. Today, the Australian political system is one of democratically elected governments, and general

EUGENE CLARK AND RAM VEMURI

elections must be held at least once every three years. The governmental framework in Australia draws on features from both the British Parliamentary system and the United States. Like the...