Comparative Management: Feasibility of Weapon Business in the USA

This report serves as an international management consultant's examination of the feasibility of establishing a weapons business in the USA, focusing on defense. It conducts a comparative management analysis between the USA and Australia, assessing political, legal, economic, geographical, technological, and cultural environments. The report identifies potential issues influencing the business development process, such as stringent US regulations and cultural differences, and recommends managing relationships with US defense authorities and considering alternative locations like the Mexico border. It emphasizes ethical standards and mutual understanding in manufacturing and selling defense products.

Running head: COMPARATIVE MANAGEMENT 1
COMPARAT VE MANAGEMENT
[Author]
[Institution]

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Table of Contents
1. Introduction......................................................................................................................4
1.1 Purpose......................................................................................................................4
1.2 Scope..........................................................................................................................4
2. Environmental analysis....................................................................................................4
2.1 Political environment.....................................................................................................4
2.2 Legal environment.....................................................................................................5
2.3 Economical environment...........................................................................................6
2.4 Geographic environment...........................................................................................6
2.5 History.......................................................................................................................7
2.6 Technological environment.......................................................................................7
2.7 Cultural environment.................................................................................................8
3. Recommendation.............................................................................................................9
REFERENCE....................................................................................................................10

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LIST OF TABLES
9

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1. Introduction
1.1 Purpose
I am working as an International Management Consultant (IMC) that examines the
feasibility establishing the business in the international locations. The client is looking to expand
the business of weapons under the category of defense. The demand for defense products and
services is increasing across the world and has a significant impact on the GDP of nations. The
defense organization of client is having rapid growth in Australia that encouraging to expand the
business at international level.
1.2 Scope
The demand for defense weapons is high in the market of USA. The client is looking to
open a shop in this country. The report will conduct a comparative management between two
different environments. The comparative management refers to the analysis of similarity and
differences among business management system from a different context. Moreover, the report
will conduct an environmental analysis of USA region to identify the feasibility of weapon
business. In that process, the report will analyze factors like political, legal, economical,
geographical and cultural to establish the business. In the end, the report will provide
recommendations for improvement in the potential issues that could influence the business
development process of defense organization.
2. Environmental analysis
2.1 Political environment
The political conditions of USA are strong and following democratic set-up for managing
the internal and external operational and functional activities. The parliament is developing and
implementing rules and regulations for managing the living and business environment of the

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country (Coxon and et al., 2016) . The Australian weapon organization is looking to open a shop
in the USA, but in the recent time, the incidents in USA related to gun culture and easy policies
of buying weapons is going to be changed by the government. The national and local
governments are feeling the pressure of high demand and easy availability of defense weapons.
The government is seeking for developing hard policies and procedure to overcome the
incidents of shooting in public places that harming the society. However, the government is
concern about the improvement in defense operations and protecting the country from outside
attacks ((Kideckel, 2018). Now, client organization needs to analyze the new policies and
changes in the political scene to establish the shop in the USA.
2.2 Legal environment
The legal environment of USA defense industry is strong and has various policies and
regulations regarding the establishment of the weapon shop. The leading authority of the USA
defense industry is analyzing the participation of foreign organizations to establish a business.
Moreover, the USA has supremacy in defense-related technology and selling of weapons across
the globe. Therefore, leading authorities of USA defense has applied hard policies for allowing a
foreign organization to start operating their business in the country.
The percentage of foreign defense organization in the USA is less than 0.1% due to an
international security interest. The licensing process and documentation could be the major
barrier for Australian client to start a business in the USA. In addition to this, defense authorities
of USA have monopoly in the market as the legalization began with Sherman Antitrust Act of
1890 which provide authority to block the merger and acquisition of foreign organization in the
defense sector (Moon, and Kang, 2015).

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2.3 Economical environment
The GDP of USA is over $16.760 trillion and considered as the world’s largest economy.
The economic system of the country is well developed and gathers its strength from the services
and manufacturing industries. In the current scenario, the unemployment rate is high and
affecting the growth of various sectors. For client organization, it is important to understand the
taxes and investment functions of USA as the government will not allow for direct investment in
the defense business (Shipman, 2017). The US-based defense organizations are doing well to
provide the weapons and services and exporting to various nations across the world.
By exporting the defense-related products and services the country is earning more than
$89.4 billion. Hence, it can be considered that economic condition of defense industry of USA is
good and not require the support from the foreign organizations to influence their internal
process (Lee, and Back, 2016). The national government has increased the budget of defense up
to 20% for the year of 2018-19 which shows that economic condition for a particular industry is
good. Additionally, the local people are investing high on personal defense weapon that can be
an opportunity for a client organization.
2.4 Geographic environment
The geographic environment of the country is not as good as Australian. The major
natural resources that easily available in the country involve coal, copper, uranium, gold,
mercury, natural gas, nickel and zinc. The total area of the country is 9,826,675 km and
availability of land is 93.24% and 6.76% water. The country is share the border with Canada and
Mexico. The environmental issues of USA involve water shortage, high air pollution, volcanoes
and tornadoes. However, the growth of region compare to Australia is good and having a
competitive advantage over manufacturing related to defense products and services (Rahman and

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et al., 2015). There are two primary water borders is the southeast between Florida and Cuba and
Florida and Bahamas. The land area of USA is higher than Australia. The level of temperature
varies among locations as the USA has the large area.
2.5 History
The histories of both countries are having distinct differences in the past and current
context. The USA colonies are following traditional Catholic culture and having a significant
contribution to the development of the country as a superpower hub. Most of the population is
pursuing business and providing services for promoting the innovation and efficiency within the
defense and other sectors. This position is consistent with the USA long history of antitrust
legislation (Schermerhorn and et al., 2014). The government has all rights to make changes into
policies to achieve the desired capabilities.
On the other hand, the Australian government is allowing international migrations for
managing the operations and changing the policies to improve technical capabilities. Australia is
following European culture and expanding the defense capabilities by merger and acquisition
with commercial sector firms from overseas locations. The manufacturing industry of Australia
is growing with rapid speed and adopting the changes with lesser environmental issues. In spite
of that, the technical advancement is a major strength of US in the current time (Wrench, 2016).
2.6 Technological environment
The technical background of USA defense is much stronger than Australia. The country
is having advance tools and technical resources related to defense operation and activities. The
expenditure of the USA on technology development and innovation is 7.24% of overall GDP in
2017. On the other hand, Australia is growing nation is the area of technology. The national
government is establishing an agreement with some nations for promoting the technical activities

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and maintaining growth in technology (Fong, and Tanabe, 2014). The expenditure of country on
technology is 2.9% of total GDP. The infrastructure of both countries is having vast differences
as the USA is having railways areas of 293.567 Km where Australia has 36.978 Km. The
waterways of US is approx 41.009 km and Australia is having 2,000 only. The numbers of
airports in the USA are more than 13,513 and Australia has 500.
2.7 Cultural environment
The culture of both nations considering defense sectors is having significant differences.
The USA people are more aggressive and following values of the country to maintain a higher
position in the world. The American people are having active participation in defense-related
operations and developing new ideas for protecting the traditional value and society. The
management of society in USA context involves consideration of country first. The gun culture
of USA is affecting society and people are protesting to increase strictness in licensing of
weapons (Binder, 2016).
This kind of change will affect planning of client organization to offer products and
services in the US. The population of USA is 326,625,791 and Australia is having 23,232,416
until July 2017. The growth rate of population in the USA is 0.81% and Australia is 1.03%. The
diversity in culture and social values could have a significant impact on the establishment of
business for an Australian client. The Australian culture is not having much influence on
defense-related functions. The people of Australia are good at learning and possess the hard
work into business and other activities. The defense culture and weapon are not much famous in
Australia.
The changes in perception and approach of maintaining values for selling products and
services will create difference at workplace. The home culture of client organization cannot be

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followed at USA with same intent. The client requires involving local people to understand the
values and process of selling products in USA (Bail, 2014). Moreover, to improve decision
making proper discussion and planning of the ethical process is required. The client organization
need to understand the internal value and needs of individual to overcome the gaps in cultural
activities.
Table 1: Culture
Activities Differences Managed through
Decision making Collaborative approach (USA)
Individual (AUS)
Proper discussion over terms and
conditions of business
Ethics Lack of transparency (USA)
Fair (AUS)
The consideration of international
standards
Values Strong internal values (USA)
Mix social culture (AUS)
Respect to belief and value of
individual
Social Equality Less (USA)
Less (AUS)
Proper communication between
business authorities of both countries
3. Recommendation
By considering the analysis of external environment of USA and Australia, it has been
recommended to client organization to manage functions and relationship with the higher
authorities of USA defense. The expansion of defense-related business in the USA is hard for the
foreign organization. In spite of that, the client can set up the business at Mexico border. The
demand for defense-related products and services in this region of USA are high. However, the
policies and procedure of developing business in the USA is hard but consideration of ethical

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standard and having a mutual understanding regarding manufacturing and selling of defense
products would be helpful for the client organization (Brewster and et al., 2016).

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REFERENCE
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