Report This report is to seek the contemporary issues businesses are facing in Australia and how the internal and external influences have an impact on business opportunities in NEWS. There are many contemporary issues businesses are facing in Australia at this time as we are in the trough of the economic cycle. The key business issues found in the articles were the competition between businesses, the increase of petrol prices, investments, the Euro debt crisis, the carbon tax, the plunge of the Australian dollar ND the Australian market and the mining boom in WA.
Competition between businesses happens all over the world. This can be an internal or external influence in Australia. The article Smaller but sweeter crop bearing fruit for growers refers back to the heavy rain and flooding that provided some growers with an oversupply of grapes and others with a ruined crop in the beginning of 2012. The article had stated that the February and March rains were not a disaster because 75 per cent of the country’s harvest was finished and only a minor proportion was effected.
This is both an internal and external influence because the loss and the oversupply of grapes and the competition between Wine Grape Growers are happening in NEWS and all over Australia. The rise of Petrol prices is increasing rapidly. The competition between businesses will be to find the cheapest petrol to save money. This is an internal influence as businesses compete in NEWS to provide customers with an appropriate price. Alarm about cuts to R;D tax break is about the government deciding whether to cut the research and development tax break.
Pharmaceutical, infrastructure and mining companies are the biggest users of the tax break which gives companies an annual turnover of more than $20 million a 40 per cent tax offset for research and development spending. ‘ If the government goes ahead with the decision to cut the tax break, investment would move overseas and this would make it harder for Australia to compete with its rivals. This is an external influence happening in Australia. Large organizations have the capability to develop research and development innovations but smaller businesses ant provide.
Cutting the tax incentive would lead to a loss of Australian competitiveness and fear of innovation capital migrating offshore. Another article was China and Japan agree to Join forces in assisting MIFF. The Dustless Issue Involves Canaan Ana Japan Joggling to soups t art en International Monetary Fund as the Euro debt crisis is dragging the global economy down. The United States has the biggest financial stake in the MIFF, who has refused to increase its contribution. Rupee’s crisis hasn’t ended but will need careful monitoring.
This Euro debt crisis is an external influence and if the European dollar decreases, all businesses will be in debt and bankrupt due to the fact that the countries that we receive money from has no money. The $1 b green grants attract interest is about the government providing ways for businesses to invest for the carbon tax. As the carbon tax is being introduced, the government is expecting to invest money in Australian manufacturing as companies use their technology grants to buy plant and equipment to reduce their carbon footprint.
This issue is an internal influence as our government is suggesting ways for the businesses in NEWS to reduce their carbon footprint. Coal tipped to stain clean energy future was also about the carbon tax. Australia may still be dependent on coal- fired power stations at the end of the decade because of volatility in gas and carbon prices and a lack of infrastructure. Businesses will have to pay and extra 10 per cent for power bills when the carbon tax is introduced if the power stations fired by gas and renewable energy isn’t produced.
This is an internal influence because the carbon tax is being introduced into NEWS and businesses are trying to reduce their carbon footprint by using coal- fired power stations and renewable energy. The Australian dollar is in a constant economic lifestyle with its upswing, boom and downswing changes. If the Australian dollar falls even further, businesses will suffer as they lose customers due to the rising of the prices. This business issue is an internal influence, as businesses in NEWS will have to be ready for the downward trend of the lower lows and lower highs of the Australian dollar.
The Australian share market has boosted by strong official figures from China. This article shows that China is a big influence of shares in NEWS, which manufactures hope. This is an external influence as China boosts the Australian share market to keep our economy sustainable. The Half of Sydney firms hate traffic: survey article is about businesses that are deciding to change their operations due to traffic congestion. Some businesses are using more fuel than ever before because of the delays in getting in and around the CAB.
The NORMA survey showed that 50 per cent of businesses are beginning to have n issue with this traffic congestion. This issue is an internal influence on businesses. Businesses will have to make tough decisions of how to operate and when to make deliveries to save as much fuel and money as they can. WA has stood apart from the other states and territories of Australia by leading the nation as a result of the mining boom. The key business issue is that Western Australia’s economic performance NAS move even Turner enema AT toner states Ana territories as a result of the mining boom.
Businesses will have to increase the prices o they are not left far behind in the economy but also to ensure that people are not struggling with the higher costs of living. In conclusion this report shows that there are many internal and external influences that impact businesses in NEWS. Convincing customers to spend frequently to circulate the money cycle (customers spending money on businesses which leads to the business paying taxes. The government and banks then give loans to the customers and repeats the cycle) can easily solve some of these issues mentioned from the articles above.