International Expansion of Coles

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International business

Contents
Introduction............................................................................................................................................3
Current news of Canada.........................................................................................................................3
International relation between Australia and Canada............................................................................4
Pestle Analysis.......................................................................................................................................4
Risk faced by Canada............................................................................................................................6
Recommendation...................................................................................................................................7
Conclusion.............................................................................................................................................7
References..............................................................................................................................................8

Introduction
This report will brings out a discussion on international expansion of Coles in Canada.
Therefore, this report has been analyzing the market of Canada so that it can find the potential of
the market and Coles can derive greater profits by taking the advantage free trade opportunities
of Canada to enter the Australian supermarket (Shin, Kalayci, Haque, Doiron, Jovic, Burr, and
Stieb, 2018). Coles is an Australian supermarket with the employee base of 112298. Operating
income of AUD $1.414 billion and total assets of A$21.644 billion. This report considers
PESTLE analysis, current news regarding Canada, risk when operating in Canada, potentials of
the country, recommendation to the country to make it potential so that its international trade
policies can be improved (Gong, M., Li, X. and Bassi, A., 2018).
Current news of Canada
Latest update related to Canada immigration that has been increasing the population at the fast
rate. This has led to reversing of population and other labor decline caused to other provinces.
The country focuses on immigration that has been combined with the number of residents who
are leaving other countries and moving to Canada (Australian high commission, 2019). Canada
have been focusing on intensive endeavor so that it could attract and retain the skilled workers
from other provinces. Recently, the government in 2018 has undertaken specific programs in
order to target workers in Federal skills trade class that further open the certification of the
qualification, which will prove to work in the trade occupation in the Canada and its eligibility to
offer employment (Australian high commission, 2019).

The benefit of immigration workers is both sided, as efficient workforce will benefit the
country`s economic conditions. This has also led to development of housing facilities with better
infrastructure. Coles has the opportunity to consider the demand of different cultured people who
belong to different provisions (Australian high commission, 2019).
International relation between Australia and Canada
The country “Australia” has long way standing that turns to be productive in terms of
relationships for conducting business in Canada. It is seen that the relationship has been
expanded in many areas (Silinevicha, and Kalinina, 2017). Australia and Canada has shaken their
hands to encounter threat such as is able to undertake the potential to fight with the technical
cooperation, exchange of personnel, and its related joint training. Most importantly, Australia
and Canada enjoys an considerable range of freedom in regards to enhance the relationship
through trade investment and its related links that is concerned with cultural exchanges, working
holiday program, and international study programs in Australia as well as Canada (Silinevicha,
and Kalinina, 2017). Coles can easily penetrate the Canadian market due to high GDP rate,
growing diverse population through entrants of immigrants (Silinevicha, and Kalinina, 2017).
Further, Coles will also be able to modify its retail products as per the immigrant’s requirements.
Canada is an culturally diversified country due to large number of skilled workers from different
provinces (Silinevicha, and Kalinina, 2017).
Pestle Analysis
This analysis will determine several external dynamic factors such as political, social, economic,
technological, and legal and environment because these factor affect the international corporation
(Silinevicha, and Kalinina, 2017).

Political- Canada is the second largest country in world in terms of total area. Canada is the
founding member of UN and it is a powerful country. The country maintains a good relation with
UK, Australia, and other more countries (Australian high commission, 2019).
Canada enjoys and stable political environment and it is one of the safest countries even with the
maximum immigrants. The country is an favorable place to conduct business with trustworthy
services and low criminal rate (Australian high commission, 2019).
Economic- The country is the tenth largest countries in the world with an GDP (Gross domestic
product) of 1.8 trillion USD in 2018. It is seen that that GDP will be enhanced by 2 percent every
year. With strong and diversified economy, it is seen that the economy has diverse
entrepreneurial population with excellent infrastructure and with one of the best business in the
world. Country is the top exporter of motor vehicles, telecommunication, industrial machinery,
equipment and crude oil. Whereas, the top imported goods are vehicles parts, delivery vehicles
and computers (Canada international, 2019).
Social- the country is the second largest country in the world in terms of area population is not
that big. The total population is assumed 36.9 million with the population density of 4 per km
square. Country is diverse as it plays an important role in history of the country. There will be a
shortage in several sectors as this shortage is obstructing (Gong, M., Li, X. and Bassi, A., 2018).
The government of the country has been dealing with situations that focus on flexible immigrants
with the enhancement of people in the nation (Fachehoun, Lévesque, Dumas, Louis, Dubé, and
Ayotte, 2015). The living standard has remained high in the world, as Canadian consumers have
grown confident in regards to the job sustainability and the economy. There is a great demand of

high quality products and servces (Smith, Javed, Barad, Myhre, Li, Reimer, Massicotte,
Tackaberry, Payne, Egger, and Lee, C2017).
Technological- Technology plays an crucial role in the development of the Canadian economy. It
has been one of the fastest growing sector of the country. People often make use of technology in
terms of careers, leisure, and education. This has become as a source of income with people to
whom high paying jobs with the salary of $67000 as compared national average jobs of $48000
(Bauer, Scheim, Pyne, Travers, and Hammond, 2015).
Legal- legal environment considers a lot of relevant issues that has been discussed here. For
instance- there are certain rights of the employees that has to be protected by the laws of the
Canada (Australian high commission, 2019). It is seen that the minimum standard for the
employer’s wages has to be abide by minimum wages, vacation, and dismissal. It is observed
that the country’s human rights prevent discrimination that is based on race, gender, age and on
other social grounds. International businesses are common as company is one of the famous
modes of entry to the country (Loder, A.L., Mallory, M.L., Spooner, I., McLauchlan, C.,
Englehardt, P.O., McLellan, N. and White, C., 2016).
Environmental- every year millions of tourists visit Canada so that they can enjoy scene beauty.
Further, the environmental challenges have been increasing these days. For example- air
pollutants, smog, climate change, acid rain and climate changes factors that could affect the
Canadians. Although, the country has undertaken numerous initiate so that it could decrease the
air pollution and also the emissions of greenhouse gases such as carbon climate that has caused
climate change (Loder, A.L., Mallory, M.L., Spooner, I., McLauchlan, C., Englehardt, P.O.,
McLellan, N. and White, C., 2016).

Risk faced by Canada
According to the country reports, it is seen that country has been facing the issues related to
environment as it is very polluted because of increasing immigrants. The country has been losing
its environmental heritage. The country faces issues in quality of the education as the children
are raised with the false expectation of by limiting their streamline efforts such as medical
system and intrusion in private living. The country has been suffering from homelessness,
poverty, gender inequality, treatment of the indigenous people and social injustice are some of
major issues (Loder, Mallory, Spooner, McLauchlan,., Englehardt, McLellan, and White, 2016).
Risk faced by Canada Consequences solutions
Social injustice With the increase in the social
Injustice, Aboriginals face
numerous issues in
living their life
Country should take
serious steps to
prioritize aboriginals
as citizens for which
they are not
authorized.
Trade barriers With the increase in frauds
and lack of legislative system,
the Australia may suffer from
trade risks
Country should promote free
trade legislations.
poverty With lower contribution of
many people in the GDP, there
is an increase in the number of
poor people.
Country should strive to
delegate employment and help
them to grow their standards.

Recommendation
From the above identified risk it is seen that the country has to improve the living standards of
the people and should give employment to those Canadians who are local rather than employing
only immigrants. It is seen that the country has to raise its economic level as the country suffers
from poverty,. There is a need to smoothen the policies of the international markets so that it
could grab the maximum market (Loder, A.L., Mallory, M.L., Spooner, I., McLauchlan, C.,
Englehardt, P.O., McLellan, N. and White, C., 2016).
Conclusion
From the above discussion, it can be seen that Canada has the potential to internal growth as
coles operates in various sectors apart from supermarkets. The country has to undertake some
serious actions to improve the economic conditions as it suffers from drawbacks. Coles should
invest in this plan as there are many advantages and market potential in order to support Coles.
Whereas, trade barriers would be resolved further with the increase in internationalization.

References
Australian high commission, (2019) Australia - Canada relations. Available on:
https://canada.embassy.gov.au/otwa/relations.html [Accessed on 22/05/19]
Bauer, G.R., Scheim, A.I., Pyne, J., Travers, R. and Hammond, R., 2015. Intervenable factors
associated with suicide risk in transgender persons: a respondent driven sampling study in
Ontario, Canada. BMC public health, 15(1), p.525.
Canada international, (2019) Bilateral international relations. Available
on:https://www.canadainternational.gc.ca/australia-australie/bilateral_relations_bilaterales/
canada_australia-australie.aspx?lang=eng [Accessed on 22/05/19]
Fachehoun, R.C., Lévesque, B., Dumas, P., St-Louis, A., Dubé, M. and Ayotte, P., 2015. Lead
exposure through consumption of big game meat in Quebec, Canada: risk assessment and
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Gong, M., Li, X. and Bassi, A., 2018. Investigation of simultaneous lutein and lipid extraction
from wet microalgae using Nile Red as solvatochromic shift probe. Journal of applied
phycology, 30(3), pp.1617-1627.
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with barley growing in an oil sands reclamation area in Alberta, Canada. Canadian journal of
microbiology, 64(12), pp.1004-1019.

Lindstrom, S.C., 2018. An undescribed species of putative Japanese Pyropia first appeared on the
central coast of British Columbia, Canada, in 2015. Marine pollution bulletin, 132, pp.70-73.
Loder, A.L., Mallory, M.L., Spooner, I., McLauchlan, C., Englehardt, P.O., McLellan, N. and
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Shin, H.H., Kalayci, H., Haque, L., Smith-Doiron, M., Jovic, B., Burr, W.S. and Stieb, D., 2018,
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