MIBS6001 Global Business Environment Assignment
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University Of Sydney
Global Business Environment (MIBS6001)
Added on 2020-05-11
MIBS6001 Global Business Environment Assignment
University Of Sydney
Global Business Environment (MIBS6001)
Added on 2020-05-11
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GLOBAL BUSINESS ENVIRONMENT GLOBAL BUSINESS ENVIRONMENTName of the StudentName of the UniversityAuthor’s Note
1GLOBAL BUSINESS ENVIRONMENTTable of ContentsIntroduction......................................................................................................................................2Japan’s economic environment affecting its Crafts-Beer industry..................................................2Rate of inflation...............................................................................................................................4Socio-cultural factors of Japan that influences Craft Beer industry................................................9Recommendation on which Japan can be potentially attractive for expansion of business..........12Conclusion.....................................................................................................................................12References......................................................................................................................................14
2GLOBAL BUSINESS ENVIRONMENTIntroductionThe aim of this report is to focus on the economic environment and socio cultural trendsin Japan that affects the craft beer industry in Australia. The economic environment refers to thevarious factors in the business market as well as the broader economy that affects the particularindustry. The economic environment is basically classified into two types that includes-microeconomic environment and macroeconomic environment. Microeconomic environmentinfluences the decision making of the business organizations that involves- actions of the eachorganization and consumers. On the other hand, macroeconomic environment impacts on thewhole economy and each participants. Numerous economic factors mainly act as an externalconstraint on the business organizations (Prajogo, 2015). Social- cultural trends refer to thefactors that affect the business organizations. These factors include customs traditions,consumer’s behavior of that specific country, fashion trends and activities in the market affectingthe actions as well as decisions of the business. Socio-cultural perspective has been one of thevital factors that affect the decision of managers and the strategic target of the entities enteringinternational market. One of the main socio-cultural factors that influence the businessorganization is the legal factors. Appropriate factor identification while analyzing the businessstrategically might lead to good strategic company’s alignment to the society. This reporthighlights on the economic environment and social cultural trends of Japan that affects their craftbeer industry. In this study, Japan has been chosen as the nation at which Australia’s craftbrewery industry must expand their business.
3GLOBAL BUSINESS ENVIRONMENTJapan’s economic environment affecting its Crafts-Beer industryCraft beer industry in Japan can achieve success in this nation owing to its diversebeverage industry. The organic beer has been one of the Japan’s culture since time immemorial.In addition, microbreweries have gained huge popularity since the year 1994 as it suppliesdiverse tasting beers with huge style variety that seeks in matching the stress on craftsmanship,ingredient provenance and quality. It has been noted from the recent study that Japan has beenone of the largest consumer of beer and has been ranked seventh largest in the year 2014.Thereare mainly five domestic beer producers that dominates 92% of this market in Japan. At present,these producers are now looking for investment opportunities in the overseas and producediversifying their products. Japan’s economic environment influences the craft brewery businessorganization that operates in this nation.Macroeconomic environment are mainly huge economic factors that affect the wholeeconomy and the business organizations either in direct or indirect way. These factors includes-Interest rates, Inflation rate, Taxes, exchange rate, rate of unemployment, savings rate, recession,depression, level of consumers confidence and discretionary income of the consumer. On theother hand, microeconomic factors that affects the business organizations includes- size of themarket, demand, supply, rivalries, suppliers and distribution chain. The government of Japan hasintroduced economic policy, which is known as Abenomics with the help of three ways thatincludes monetary easing, structural change and flexible fiscal policy. This economic policy hashelped this nation in stabilizing its exchange rate, stock market, improved corporate investmentand enhanced business operations. In addition, the increase in consumption tax rate alsoadversely affected the profit margin of the business. The Japanese government has also increasedthe Value added Tax (VAT) to 10% this year in order to boost growth of the business.
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