Assignment on Brand Value of Products

Running head: BRANDS
Brand Value of Products
Name of the student
Name of the university
Author Note:

BRANDS1
Market situation:
Analysis of the market of Australia (including statistics and micro-factors) (PESTEL):
The following is the PESTEL of the market of Australia:
Political:
Australia is a politically stable federal parliamentary constitutional monarchy. The Prime
Minister of Australia holds the virtual power while the Queen Elizabeth II is the nominal head of
the state represented by Governor General (Australia.gov.au. 2020). The polictal stability of the
country enables the government form laws and policies which drive business and commerce
(Austrade.gov.au. 2020).
The second political factor which impacts the business in Australia is the bilateral
relationships which the Government of Australia shares with other countries. The country has
strong relationships with countries like the US which is the home country of the company under
research namely, Mars Inc (Dfat.gov.au. 2020). This factor holds immense importance for Mars
since the company is based in the US and Australia is one of its strategically important markets.
This bilateral relationships between the two countries (US and Australia) enable the company to
move its resources internally between its offices in these two countries (Aus.mars.com. 2020).
Economic:
The first economic factor which impacts the business of companies in Australia is its high
gross domestic product. As shown below, the GDP of Australia is high which means the country
is facing increasing demands for goods (including pet food). Thus, high GDP boosts the
operations of companies like Mars in the country.

BRANDS2
Figure 1. Statistics showing GDP of Australia (USDbn)
(Source: Tradingeconomics.com. 2020)
The second economic factor which drives the business of American companies like Mars
based in Australia is currency exchange rates (like rates of USD against AUD) which are
extremely volatile. For example, Mars has to convert the incomes and expenses pertaining to its
Australian operations earned in AUD into USD while entering them into its books of accounts
(Mars.com. 2020). Thus, the internal operations of the company like, accounting comes heavily
under the impacts of international currency exchange rates (Bloomberg.com. 2020)

BRANDS3
Figure 2. Graph showing exchange rates of USD against AUD
(Source: Bloomberg.com. 2020)
Social:
The residents of the country have high disposable income which enable them to consume
premium confectionary items made by multinational companies like Mars and maintain pets.
(Hobbs and Shanoyan 2018). As per Australian Bureau of Statistics, a fifth of every household in
the country have pets as on 1994 (Abs.gov.au. 2020). This social condition in the country boost
the operations of pet food manufacturing firms like Mars.
Technological:
The country of Australia is technologically very strong which enable MNCs like Mars to
set up their manufacturing (internal operations) facilities in the country. However, the companies
face high data theft risks in the country (Patil 2018).