Assignment | Global Trade: Australia

Running head: GLOBAL TRADE: AUSTRALIA
GLOBAL TRADE: AUSTRALIA
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1GLOBAL TRADE: AUSTRALIA
Executive Summary
The respective report is introspection, analysis and interpretation of Woolworths and its
international expansion of business, emphasizing South Africa. Woolworths is an Australian
company which has tolerated the pressure of internationalization and has responded to the global
competitive environment by successfully launching and performing in China. The respective
report, with the help of various theories and concepts, tries to comprehend the approach of
Woolworths in functioning of its business in China respectively.

2GLOBAL TRADE: AUSTRALIA
Table of Contents
Introduction................................................................................................................ 3
The Company............................................................................................................. 3
The Market.............................................................................................................. 4
Internal market analysis.......................................................................................... 4
International Market Analysis..................................................................................6
Hofstede’s comparative analysis of China and Australia......................................7
The Strategy............................................................................................................... 8
Framework Application............................................................................................ 9
Recommendation of application of the strategy.......................................................11
Conclusion................................................................................................................ 12

3GLOBAL TRADE: AUSTRALIA
Introduction
Expansion of business across globe is increasing day by day as globalization is also
expanding in the contemporary society. After the World War II, there has been a tremendous
increase in international trade as the tariffs and trade taxes in all the countries of the globe had
been revisited and restructured. Every business organization nowadays targets the international
market in order to expand its business operations and functions, earn a considerable amount of
revenue, improving the profit margins of the business, diversifying, reducing costs and recruiting
new individuals with different talents and capabilities (Shenkar, Luo and Chi 2014). Established
firms often feel pressurized about getting internationalized from different globally active and
competitive firms that exist in the respective market. The respective report is introspection,
analysis and interpretation of Woolworths and its international expansion of business,
emphasizing South Africa. Woolworths is an Australian company which has tolerated the
pressure of internationalization and has responded to the global competitive environment by
successfully launching and performing in China. The respective report, with the help of various
theories and concepts, tries to comprehend the approach of Woolworths in functioning of its
business in China respectively.
The Company
Woolworths Group Limited is an extensive retail company throughout Australia and New
Zealand. Woolworths was first opened in Sydney in the year 1924. Woolworths Group Limited
is considered to be the second largest company in Australia as far as revenue is considered after
the Perth based conglomeration retail company Wesfarmers. Woolworths is also considered as
the largest takeaway liquor retailer company in Australia. The main operations of the company