PEST Analysis of Australian Agricultural Sector for Business Environment Assessment

BSB108
Assessment 1: PEST Analysis
Please ensure you have read the instruction in the Assessment 1 folder
STUDENT NAME:
STUDENT NUMBER:
ABSTRACT (approximately 200 words):
Business Environment is the aspect of the business enterprise which affects or influences the
operations and helps in the determination of the effectiveness. It can also be said as the aggregate
of all the conditions, events and influence which surrounds the business and affects it. The
environment of the business consists of the aspects of the business surroundings which affects and
influences the business for its operations and determination of the effectiveness. The business
environment is an always changing factor which is considered to be uncertain because of the
dynamism of the environment. It is the sum total of the factors outside of the control of
management of the company which carries opportunities as well as the risks. In the following project
current business environment of the Australian agricultural sector has been discussed. Australian
agricultural sector is one of the most significant industry in Australia in the production of both
domestic and exported products. Pest analysis is to be done for analyse the factors such as Political,
economic, social and technology for the Australian agricultural sector. There are many factors in the
business environment but with the help of Pest analysis specifically the project will be able to
understand the affects of external environmental factors on the business.

Political
The political factors of Australia plays a very important in the determination of the
influences which can impact the Australian agricultural company limited. The long term profitability
of the company can be influenced by the political factors. This organization is operating in Food,
beverages & tabacoo in multiple countries along with the domestic business. Due to its involvement
in the international business this organization exposes itself into different types of political
environment (Herold and et.al., 2018). For the achievement of the success in different countries
the business has chosen to diversify its products. The dynamics of Food, beverage and tobacco
industry has different system risk in various countries. There are different aspects through which the
political factors of the company effects the business of Australian agricultural sector.
In different countries the political stability is different due to which the products of this
organization get different environmental importance. China among all the other countries is by far
the largest importer of the agricultural products of this sector. It imports a total of 21% of all the
agricultural exports.
Source : Granwal, 2021
The following illustration shows the different countries in which the products of this
organization is exported. Thus, political conflicts between any of these countries specially China,
Japan and USA can be very damaging for the business of this sector. The influence of different
products is very different in different countries. In some countries exports different goods in
different quantities which is based on the availability of the resources.
The agricultural sector of Australia is spread all over the country, more specifically is certain
places more than other. The business of this company is very dependent on the land as it is required
for the food cultivation and rearing and other activities which is useful for the production of the
business. Due to these reasons the company face a huge risk of the army invasion which can result in
the loss of business resources. The invasion of the army is not a natural phenomenon however it can
Illustration 1: Australian agricultural export market

Political
be said due to some political issues the business might have to face such conditions (Ivanovski,
Churchill and Smyth, 2018).
The level of corruption in Australia is not too much. However, corruption is a feature is not
highlighted or identifiable so easily. Thus, due to corruption there are possibilities of the business
getting effected. Apart from Australia this organization also operates in other countries as well. The
level of corruption in these countries is very high due to which it can effect the business export of
Australian agricultural sector.
The business operations of this sector is effected a lot by the interference of the
government. This happens because of the large scale of this organization which has the ability to
change the organizational needs. The government of Australia changes every four years, different
government has different policies which can be effect the business both positively and negatively.
The governments of other countries can also effect the business export of Australian agricultural
sector as they can change the export limits which can be very demoralizing for the company.
The political factors of the organization also have the ability of changing the legal framework
that can directly influence the business operations and activities. Changes in the legal framework
forces an organization to change their policies and procedures in respect to the lawful change. These
laws can be towards the intellectual property protection which forces the business to which is
copyrights and patents. The aim of this political feature is to prevent other company's to profit from
the creation of the Agricultural sector in Australia. Political factors also influence organization to
select their trading partners due to the influence of the government (Berg, 2021).