Analysis of an American Business Venture in Australia

Analysis of an American Business Venture in Australia

Carrie Kimbrough

Athens State University

November 10, 2013

Abstract

The paper examines the factors involved in expanding an American business in the office furniture manufacturing industry overseas to Australia. Included is an in depth analysis of the office furniture industry itself, history and culture of Australia, considerations for global development in this foreign market, and suggestions for success upon embarking on the venture. The differences and similarities between American and Australian business practices and culture are discussed. Findings conclude that while there are obvious challenges to expanding a manufacturing facility globally, Australia is an ideal location due to the existing advanced economy, customer base, and original culture.

Executive Summary

The purpose of this research paper is to examine the in depth contributing factors of expanding an American manufacturing facility abroad to Australia. Research for this report was compiled through extensive research on the office furniture industry, studies of Australian culture and business, as well as analysis of international business strategies appropriate to the assignment. Through thorough research major findings were as follows:

• Australian business law is moderately complex and strong relationships with native business workers, suppliers, etc. will be crucial to international expansion.

• Australian culture has many similarities and differences compared to American culture. Preparation for adjustment to Australian value system is necessary.

• The global office furniture industry is small, but foreign expansion will benefit both the people of Australia as well as the organization.

• A major challenge of marketing office furniture in the United States is that the customer base in America is slow to commit to “e-business.” Australian consumers use...