Primary Analysis on Pestle Analysis of Australia for B&M Company

Global Business Environment

GLOBAL BUSINESS ENVIROMENT: 1
Contents
Introduction.........................................................................................................................................2
Primary analysis on Pestle analysis of Australia...............................................................................2
Political factors................................................................................................................................3
Economic factors.............................................................................................................................3
Social factors....................................................................................................................................4
Technological factors.......................................................................................................................5
Legal factors.....................................................................................................................................5
Environmental factors.....................................................................................................................6
Ethical factors..................................................................................................................................7
Recommendation.................................................................................................................................7
Conclusion............................................................................................................................................8
References............................................................................................................................................9

GLOBAL BUSINESS ENVIROMENT: 2
Introduction
This report brings out the discussion of primary research of macro factors of Australia. The
report undertakes a research on B&M Company and the impact of macro factors such as
Political, environmental, legal, social, technological, ethical, and economical factors on the
start-up of B&M in Australia. B&M stores was incorporated in 1978 (B&M, 2018). B&M
has been one of the leading variety retailer in UK. The company is renowned for its fastest
growth in retail sector in UK considering a revenue growth and number of stores of more
than 25 times until 2016. The company operates a chain of stores, which sell gardening
products, home-living accessories, electric equipment, baby and summer products and
grocery related to food and drinks (Biggs, 2016).
The company is listed on London stock exchange. The company has its trading operations in
England, London, Scotland, Wales, West Midlands, Greater Manchester and many more and
plans to expand the business in Australia by entering in retail sector of the country. Before
entering in the market, the company has to evaluate and analyse the business environment of
the Australian retail sector. Directly or indirectly, every business is affected by political,
social, technological, legal, environment, and economic factors of the country. From the first
establishment in Blackpool in Europe, B&M has developed and grown the number of stores
to 560 and employed more than 28,000 people.
Primary analysis on Pestle analysis of Australia
The decision of the owner in regards to decide whether they should establish the company in
Australia depends on the Macro environment factors. The tax changing policies, trade
barriers, government policy and demographic change affect the company existence.

GLOBAL BUSINESS ENVIROMENT: 3
Political factors
Australia’s political environment is stable, progressive, and open in terms of providing FDI a
high degree of confidence to run a new establishment in Australia. Australia is renowned
market for MNCs in Asia-Pacific region. Australia has a well-educated, multilingual
workforce. The country has strategic time zone and competitive cost base. These advantages
of competitive cost base and strategic time zone provides a sophisticated and comfortable
environment, which encourages various MNCs to drive technology and innovation.
Prevailing political conditions have contributed to the retail situations in Australia due to
increasing interest of investors, business holding off spending and households. After
establishing the business in the Australia, The Company brings its capital as per the
permission and to raise the remaining capital, the company plans to raise either through
equity or through debt. If through equity, overseas investors believe that falling Australian
dollar currency would lose the confidence of stability of political environment (Instreet
Investment Limited, 2013).
Economic factors
Australia`s GDP was around AUD1677.47billion in 2016 and the per capita income was
estimated at USD51850.27 whereas the purchasing power in regards to per capita income was
estimated at USD 1187.32 (Market research report, 2017). Even at the time recession, the
country has positive consistent growth in the last decade. The country`s manufacturing
potential lies in several sectors such as mining, wholesale and retail trade including their
insurances. Australian economy is a stable economy with increasing FDI inflows in the
country due to increasing demand after the crisis of recession. While deciding the
establishment of B&M, the country`s economic conditions are favourable such as stable
economy, increasing demand of people, and good purchasing power of the people. Moreover,
the country`s economic environment supports retail industry. High purchasing power and