International Business Management

The report analyzes the external environmental analysis of Fidani Vanilla Elite Chocolate in the Australian market. It includes PESTEL analysis, external threats and opportunities, and recommendations for improving their condition.

Running head: INTERNATIONAL BUSINESS MANAGEMENT
International Business Management
Name of the Student
Name of the University
Author note

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Executive Summary
The report has thrown light on managing the international business strategies for Fidani
Chocolates Company which is expanding their business in the Australian economy. The
different kinds of external environmental analysis through PESTEL analysis have ben
conducted which provided a brief overview on the different kinds of aspects which can act as
the opportunity or the threat for the company in the respective Australian economy.
Furthermore, the external opportunities along with threats have been analyzed and identified
which provided a brief overview on recommendations for improving their condition.

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Table of Contents
Introduction................................................................................................................................3
Overview of Fidani Chocolate Company...............................................................................3
Offerings of Products by Fidani Chocolates..........................................................................4
Target Country- Australia..........................................................................................................4
PESTEL Analysis.......................................................................................................................5
Political Factors......................................................................................................................5
Economic Factors...................................................................................................................5
Social Factors.........................................................................................................................7
Technological Factors............................................................................................................9
Legal Factors..........................................................................................................................9
Environmental Factors.........................................................................................................10
External Threat and Opportunity.............................................................................................11
Opportunities........................................................................................................................11
Threats..................................................................................................................................12
Recommendations....................................................................................................................12
References................................................................................................................................13

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Expansion of the Fidani Chocolate from Malaysia to Australia
Introduction
The report helps in the analysis of the external environmental analysis of Fidani
Vanilla Elite Chocolate in the market of Australia. The SMEs are the major kind of
businesses which have been taken into consideration in the present scenario in the entire
world. There are various sectors in the SMEs section which are inclusive of the
manufacturing, agricultural, mining along with the different construction organizations.
Overview of Fidani Chocolate Company
Fidani Chocolate Company is one of the major manufacturers of the chocolates which
is situated in Malaysia and they do not have any other branches beyond Malaysian countries.
The Fidani Chocolate Manufacturers has been established 20 years ago and they are
committed towards the different services which are being provided by them to the customers
in the entire Malaysian market.
The main philosophy of the company is providing the different customers by home-
made ingredients and the recipes help and embrace the overall exotic aroma. The main
address of the company or the manufacturing unit of the Fidani Chocolate Company is at
First World Hotel, Genting Highlands along with at the airport of Kuala Lumpur
(Fidani.com., 2018).
Furthermore, Fidani inspiringly epitomises finest kinds of creations while preparing
the different chocolates as the utmost philosophy of the company is to provide the prestigious
gifts to the different high society group. With the proper usage of the imported ingredients
from Belgium, this can help in embracing the exotic aroma along with rich and chocolaty
flavour of the specialities and chocolates. The main aim and purpose of the report is to

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evaluate along with analyse the compatibility along with the opportunity of the Fidani
Vanilla Elite Chocolate in the market of Australia.
Offerings of Products by Fidani Chocolates
The different products which are being offered by Fidani Chocolates are inclusive of
the following:
 Praline and Gianduja- It contains different Mocha Marvel, Golden Gianduja along
with Hazel Heaven
 Crunches- It contains the Hazel Crest, The Trios and Captivation
 Truffles- It contains Coconut Truffles, Fascinations along with Hazel Truffles
 Cup and Solid- In this case, there are different almond attractions and Tropix
 Sugar Free- This category is inclusive of the Vanilla Elite and Mocha Mood which
are being mainly prepared for the different diabetic or other customers who are health
conscious in nature
 Cream- This is inclusive of the Peppermint Fashion, Passion along with Mystical
Mocha which are offered to the niche marketing segment
Target Country- Australia
Australia is one of the sovereign countries that comprises of the mainland of the
Australian continent and this is the hub for both the multinational along with the small kinds
of organizations. The language which is being used in the different aspects along with
conversation with one another is English and the population of the country till the year 2018
is 25128600 till the year 2018 (Welford, 2016). The largest city in Australia is Sydney and
Australia are the most largely and highly developed kind of economy and infrastructure.

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PESTEL Analysis
Political Factors
In Australia, the political environment is stable and safe in nature for the manufacturing of
chocolates in an effective manner. There are various legislations which will create a negative
impact on the different manufacturing operations of Fidani Chocolates in the Australian
market. The deportation laws of Australia have gained huge criticisms which is inclusive of
the percentage of the corporate tax which is 33% for the different SMEs along with more than
44% for the other companies (Tradingeconomics.com., 2018).
The legal framework of Australia is transparent and efficient in nature which will be
beneficial for the law enforcement system in an appropriate manner. The political aspects of
the country are stable in nature and this will help the chocolate company in establishing their
business in without any kind of fear and issue of the political disturbance and turmoil. This
will be helpful in managing along with improving the capacity of the manufacturing of
chocolates along with maintaining the different activities in an efficient manner (Robson,
2015). The high degree of certainty in the entire manufacturing market of Australia will be
beneficial for the overall success of the Fidani Chocolate Company in a positive manner.
Economic Factors
The rate of inflation of Australia has been noticed as 2.5% in the year 2017 and which
was being lowered down from 3.2% in the month of July in the year 2017. From the figure,
this can be analysed that the maximum rate of inflation in the Australian economy is 3 which
was being noticed in the year 2014 and this is excellent for the business in an effective
manner (Peng, 2016). Additionally, this has been seen and noticed that there is huge capital
growth in the economy is effective wherein the Australian economy offers great opportunities

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for investment for the different businesses which are expanding their operations in various
cities of Australia.
Figure 1: Inflation Rate of Australian Economy
(Source: Piekkari, Welch & Welch, 2014)
On the other hand, the lowest inflation rate which has been noticed in the Australian
economy is 1 which can affect the overall efficiency of the firm in a negative manner
(Kasemsap, 2018). Moreover, this has been noticed that the cost of living of the different
individuals in the Australian economy is less in comparison to the other expensive cities of
Australia and this will be beneficial for Fidani Chocolates to include their effectiveness in the
different cities in an efficient manner without much difficulties (Saebi & Foss, 2015).
The strategies for ‘pure investment’ will be viable in nature which will be effective in
maintaining their business and this will increase their growth in an appropriate manner.
Additionally, this was being noticed that there is huge stability in the currency rate of
Australia which will be effective in nature for the Fidani Chocolate and there will be no such
negative effect of the foreign exchange rate on the Australian economy (Scarborough, 2016).

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Figure 2: Rate of Unemployment in Australian Economy
(Source: Rothaermel, 2015)
Additionally, in the year 2017, this was being noticed that more than 5.56% of the
population of Australia is unemployed in nature and this has remained unchanged for a long
time. The low rate of the unemployment will helpful for the Fidani Chocolates Company in
expanding their operations effectively without much issues. The purchasing power of the
customers in the Australia is improving and this will be beneficial for the Fidani Chocolates
in order to increase their profitability and revenues in the entire Australian market
(Rothaermel, 2015).
Social Factors
From the analysis of the social factors with the help of Hofstede, this can be analysed
and identified that the power distance is 36%, the rate of masculinity is 61% along with
indulgence is more than 71%. From the respective Hofstede model, this can be seen and
analysed that Fidani Chocolates will be able to improve their presence and build more
competitive advantage in the market in a proper manner (Marquis & Raynard, 2016).

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Figure 3: Hofstede’s Cultural Dimension of Australian Economy
(Source: Hill, 2017)
Additionally, the higher education is the other aspect which is essential in nature for
increasing the purchasing power of the economy. The main target customers of Fidani
Chocolate are from the age group of infants to more than 30-35 years of age group.
Furthermore, the target population or the target customers of the Fidani chocolates
can be the different infants along with the different individuals of age group from 20-35 as
they will be beneficial for the overall success of the firm and this will gain the overall
productivity of the firm effectively as well. It has been noticed from the Hofstede’s cultural
dimensions, the culture of the different individuals in Australia have the culture wherein they
want to enjoy and include the different fun elements in enjoying their life in an effective
manner.
The literacy rate of the Australians is high and they are the ones who prefer to include
the different kinds of money on the quality products. The individuals residing at Australia
have the basic and essential knowledge on the different modern aspects which will be

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beneficial for the overall success of the firm along with the increase in the productivity of the
different chocolate items as well.
Technological Factors
The new technological aspects help in playing a vital role in managing the different
aspects in an effective in the entire Australian economy. Fidani chocolate company can play a
major role in managing their operations in the technologically advanced country effectively
(Hill, Jones & Schilling, 2014). However, there are various issues which affects the
Australian economy in the present scenario in which this can be seen that Fidani Chocolates
Company will be benefitting from the overall technologically advanced economy which will
be effective in nature. The government of Australia funds more than 55% for the different
research and developmental related activities which will be beneficial for the overall success
of the company in a positive manner.
The technologically advanced aspects of Australian economy can prove helpful for
innovating the different aspects of making the lives of the individuals better. The discoveries
related to the new technological aspects will be beneficial for the development and
manufacturing of the different chocolates and this will be helpful in becoming more
competitive in nature. Additionally, this has been noticed that there is no such technological
obsolesce in the Australian economy and this will be one huge and major factor which will be
helpful in managing the different operations by expanding the business in a successful
manner.
Legal Factors
There are different kinds of compliance related issues with the government sanction
along with regulations which will be difficult to manage in such kind of environment
(Bocken et al., 2016). There are strict legal rules and regulations which are being taken into

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consideration as this will be beneficial for the success of the Fidani Chocolate Company
when they will be shifting their business in Australia. The different laws relating to the Fair
Work Act helps in governing the different operations which are necessary for the success of
the firm and gain competitiveness.
While operating in the Australian economy, this will be inclusive of the different
regulations related to health and safety which will be helpful in nature in managing the
operations without much issues. The respective legislation will be helpful in improving the
overall aspects of the safety of the individuals who are working in the respective organization
and this will be beneficial for their success. In Australian economy, there are various kinds of
aspects such as no wastage as this will be beneficial for the overall success of the firm in the
competitive business environment of Australia and this will be effective in nature in
managing the operations as well.
Environmental Factors
The environmental factors are inclusive of the different kinds of climate change along
with the change in the temperatures which affect the different well-being of the companies
which are shifting their business from one country to other country. As the weather is hot and
humid in nature in the Australian economy, this will be helpful for Fidani Chocolate
Company in managing the different activities in a successful manner. In the respective hot
along with humid weather, this will be helpful for attracting more customers in the market
and gain competitive advantage in the market effectively (Carroll & Buchholtz, 2014).
In case of the other environmental rules and regulations, there are different programs
of waste management which will be helpful for managing the different regulations in an
efficient manner. The environmental protection act of 1974 is one of the environmental
aspects which is required to be taken into consideration by Fidani Chocolates as this is

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mandatory in nature in managing the manufacturing of chocolates in such humid weather.
Lastly, Fidani needs to analyse the moves of the other competitors which are existing in the
market and this will help them in strengthening their distribution channels in a positive
manner (Beretta, 2016).
External Threat and Opportunity
Opportunities
There are various kinds of opportunities which can be gained by the Fidani
Chocolates in the Australian market which will be beneficial for the success of the company
in the respective market (Hill et al., 2017). The political stable environment of Australia will
be beneficial for the overall success of the firm in such a manner which will be effective in
nature for making the manufacturing aspects in a positive manner. Furthermore, the other
opportunity which is seen in the Australian economy is the huge growth opportunities for the
different businesses which are shifting their business and expanding the business.
Additionally, the growth of the confectionary market has reached a global level by
$232,085 million and this is one of the major aspects which can be taken into consideration
which will be beneficial for the overall success of the firm. As there is huge technological
advancements and innovations in the entire market, this will increase their market share in the
Australian market. The lifestyle preferences of the different individuals in the Australian
economy is changing and they are becoming health conscious in nature (Hair Jr et al., 2015).
From the above, this can be seen and identified that all the individuals love and prefer
the different variants of chocolates, however they are health conscious and they prefer fat-
free and sugar free chocolates which will be tasty and this won’t affect the health-related
issues. There are different cities in Australian continent and the company can expand their

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operations in such a manner which will be efficient in nature in managing their business and
gaining competitive advantage.
Threats
There are different kinds of chocolate companies in the Australian economy which
can be a huge threat for Fidani Chocolates while introducing the different ranges of
chocolates in the economy. Furthermore, there are different kinds of legislations and the
environmental protection act which can be affecting the business of Fidani Chocolates in a
negative manner (Doz, 2017). Additionally, this has been noticed that there has been huge
fluctuation in the Australian currency which can affecting their brand in a negative manner.
Recommendations
From the above case scenario, this can be seen and analysed that there are different
kinds of aspects which can be highlighted in order to make their manufacturing process better
in the entire Australian economy. This can be inferred from the above scenario that the Fidani
Chocolates will be performing well in the entire market of Australia and gain huge
competitive advantage in the entire market as well. The other strength of Australian economy
is that there is huge scope of inventions and this will be beneficial for the overall success of
the firm in a positive manner.
From the opportunities and threats, this can be seen that there are huge number of
opportunities while conducting their business in Australian economy and gain more
competitiveness in comparison to the other companies. With the usage of the different kinds
of innovative techniques such as different promotional activities can be helpful for Fidani
Chocolates in making the individuals of Australia regarding their presence in the entire
market effectively without much issues and gain more competitive advantage.

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References
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