The Function of Mattel in a Big Blue House Analysis

2.1.1 Economic

The Australian economy has a direct effect on business operations and every Australian business is dependent upon postal services. Although the Asian region is experiencing economic crisis, the local economy is forecast to grow by 3 % during for 1998-1999 with business investment is expected to increase by 6 %. Consumer spending is expected to grow by 5 % with no significant change in the CPI (Colebatch, 1998).

POST’s revenue is minimally influenced by changes in the economy, with the exception business customers and the declining Australian rural economy.

2.1.2 Political

Systematic deregulation of postal services around the globe has lead to increased competition, industry growth, and global integration. Attractive benefits to a Government through postal deregulation include: • Productivity and efficiency improvements;

• modernisation of networks; • increased levels of service; • an accelerated introduction of new products; and • market stimulation and growth.

From the passing of the Post and Telegraphic Act 1901 to the recent investigation by the National Competition Council, the Australian Government has been instrumental in shaping POST policy. It is likely that the issue of deregulation and possible privatisation will remain on Australian political agendas. A further governmental review of POST’s operations will be held in 2005. With the release of the NCC report the current government has assured the nation that POST will remain fully public owned.

Governments shape policy to encourage competition and industry growth. While this will help new entrants, it will work against incumbent monopoly carriers such as POST.

Deregulation of the financial industry following The Wallis Enquiry in 1997 opened up the financial sector to non-bank organisations. Following this change POST’s interest in financial services has increased.

2.1.3 Technological

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Technological...