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International Marketing Management

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Unity University

   

International Marketing Management (EUM0101L)

   

Added on  2020-03-01

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In this document, we will discuss the Case Study of Petronas Downstream, which provides oil and gas resources to the business. The company has captured a significant position in the Malaysian market by offering commendable business-to-business services in the oil and gas sector. Also, we highlight the probable risks faced by the political scenario of the global market. We include a critical evaluation of the main political risks in venturing into the Australian market and the development of the step-by-step approach to the international sale sequence.

International Marketing Management

   

Unity University

   

International Marketing Management (EUM0101L)

   Added on 2020-03-01

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Running head: INTERNATIONAL MARKETING MANAGEMENTInternational Marketing ManagementName of the Student:Name of the University:Author Note:
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1INTERNATIONAL MARKETING MANAGEMENTExecutive SummaryThe study would analyze the case scenario of Petronas Downstream, which provides the oil andgas resources to the business. The company has captured the significant position in theMalaysian market by offering the commendable Business-to-Business services in the oil and gassector. The report would highlight the probable risks faced by the political scenario of thecountry. Furthermore, the study would also develop the ideas about the approaches related to the‘green issues’. The Abott Government has encountered different obstacles that the foreignbusiness might face while venturing in Australian business market. It has become essential forthe companies to judge the perceptive values of the products while establishing the business inthe foreign countries. Especially, in case of rising objections in Australia regarding thecommitments towards Green Climate Funds, the green approach is the major concern to be takeninto account.
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2INTERNATIONAL MARKETING MANAGEMENTTable of ContentsIntroduction......................................................................................................................................31. Critical Evaluation of the Main Political Risks in Venturing into Australian Market................32. Application of Global ‘Green Issues’ to enhance the perceived values of the B2B product......73. Development of the Step-by-Step Approach of the International Sale Sequence.....................104. Hofstede’ Model Development for Personal Reference Context..............................................14Conclusion.....................................................................................................................................16References......................................................................................................................................18
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3INTERNATIONAL MARKETING MANAGEMENTIntroductionThe research based on the international marketing management is quite extensive andwide. The current competitiveness in the business market suggests that the corporate worldshould break the restrictions of conducting business within the domestic boundaries (McDonnellet al. 2016). The consumers in the globalized world have become universal in nature. Thedomestic business companies are looking forward to avail the opportunities of expandingbusiness in the internationalized ground with the help of advanced business technicalities.However, expanding the business is not an easy approach for the domestic businesses (Whitton,Baker and Mounter 2016). The global business scenario is much competitive and it is essential todevelop the business functionalities to participate in this competition. The study would analyze the case scenario of Petronas Downstream, which provides theoil and gas resources to the business. The company has captured the significant position in theMalaysian market by offering the commendable Business-to-Business services in the oil and gassector (Petronas.com.my 2017). It is notable that the ‘downstream’ process plays the majorstrategic role in enhancing the value of the petroleum resources. The process is transformingthese resources into high quality. In fact, the company has been following the value-addedproducts for both the international and domestic market. This subsidiary is generally dealing withthe downstream operations for which the name of the company is Petronas Downstream.Currently, the company has decided to extend the business in the global market and develop thebusiness competitiveness. The company is willing to expand the business-to-business dealings inAustralia. Australia is registered under the Trans Pacific Partnership Agreement, which isfavourable for the B2B marketing process. The report would highlight the probable risks facedby the political scenario of the country. Furthermore, the study would also develop the ideasabout the approaches related to the ‘green issues’. The systematic flow chart of conductingbusiness in Australia would be discussed in this study. The analysis of the Hofstede CulturalModel would ensure the self reference criterion required for the business development inAustralia.
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4INTERNATIONAL MARKETING MANAGEMENT1. Critical Evaluation of the Main Political Risks in Venturing into Australian MarketThe economic growth in Australia in recent decades is capturing the attention of theinternational businesses. It has become essential for the companies to judge the perceptive valuesof the products while establishing the business in the foreign countries (McClure, Lanis andGovendir 2016). Australia has become the 13th largest export market, which is the contributor tothe economic value of the country (Business.gov.au 2017). Petronus Downstream needs to keepfocus on the recognizable political risks in Australian political environment. . It has beenobserved that both the state and federal government reviewing such tax regulations. However,one of the positive aspects is also needed to be highlighted in this context. It is notable thatAustralia usually prevents the double taxation process from the foreign businesses since thecountry has signed numerous taxation agreements. The repeal of the carbon tax is the major risksfound in the political scenario in Australia. This carbon tax is creating uncertainties for the futuredirections that signify the potential risks for the foreign businesses. The Abott Government hasencountered different obstacles that the foreign business might face while venturing in Australianbusiness market (Hohenthal, Johanson and Johanson 2014). Especially, the risks are associatedwith the legislative agenda with the Green Holdings and Labour aspects. There are some of thepotential risks identified in establishing business in Australia. The risks are discussed further:Senate ObstructionismThe considerable obstruction from the Aboott Government is one of the major politicalrisks that the foreign business might face while establishing business in Australia. In the passageof the short-term labor, it has been observed that the green alliance has been blocking theattempts to repeal the mining taxes and carbon footprints (Politicalmonitor.com.au 2017). Whiledealing with the oil and gas resources, this obstruction is quite recognizable. It is necessary tonegotiate with the government for pushing through these legislations. The power of the senatorsis making the foreign business quite difficult in Australia. However, the foreign businesscompanies require to be much efficient in negotiating with the government. Risks with the Double Dissolution ElectionWhile conducting the business in Australia, the foreign businesses require providingcloser attention towards the double-dissolution election. Especially, in the new financial year, the
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5INTERNATIONAL MARKETING MANAGEMENTeffects of the double-dissolution election become much hazardous. During such time, theinterdependent and minor parties often replace the labor and the greens (Business.gov.au 2017).They support from the Abbott Government is responsible for such scenario. It is even noticeablethat the new senate sometimes focuses on establishing their marks by adding some of theamendments in the traditional legislations. Furthermore, it has been observed that the lack of theexperience among the parliament members may lead to the political miscalculations. Suchuncertain situations are quite risky for the foreign business. High Political Risks in VictoriaVictoria is the second largest state in Australia. The higher debt level occurred during therise of the Abbott Government is persuading the senate members to cut down costs and applynew taxes. The budget presented in 2014 signified such cuts in the economic values of thecountry (Chung and Tung 2013). Hence, this cost cuts and new tax policies can be much riskierfor the foreign businesses. Apart from the political and enviornmental feasibility, it is essentialfor Petronas to develop the significant ideas about the cultural acceptance in Australian makret.The personal reference related to the cultural acceptability would be helpful for the company todevelop the business entity in the foreign country. The government thus requires paying attentiontowards the fiscal strategy that can be effective for developing new businesses in Australia. It has been observed that the tax legislations ensured by the Australian government isrelatively much complicated and complex (Ross, Walker and Walker 2017). This increasinglevel of the complexity is affecting the business functionalities in a considerable manner. It hasbeen observed that both the state and federal government reviewing such tax regulations.However, one of the positive aspects is also needed to be highlighted in this context. It is notablethat Australia usually prevents the double taxation process from the foreign businesses since thecountry has signed numerous taxation agreements (Tolstoy 2014). This positive aspect is muchopportune for Petronas to establish the business in the Australian cities. It is necessary todetermine that the government policies usually encourage the foreign investments for increasingthe economic parameter. However, in some of the cases, it is essential to receive pre-approvalfrom the FIRB (Foreign Investment Review Board) (Smith 2015). For example, whilepurchasing any land or property for the business purposes, substantial investments in largecorporation of Australia, or direct investment purpose, the pre-approval from the government is
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