Business Research Proposal: Australian Dollar's Impact on Retail

This research proposal investigates the impact of the rising value of the Australian dollar on the retail industry in Australia. It examines the effects of a stronger currency on various stakeholders, including consumers, employees, employers, and shareholders. The proposal outlines the research problem, background information on the Australian economy and retail sector, ethical considerations, and a literature review covering the economic impact of dollar value enhancement, currency fluctuations, and government intervention. The study aims to analyze how the increased dollar value affects the retail industry, considering both positive and negative impacts. The methodology includes data collection and analysis procedures to assess the implications of the currency's strength on the retail sector's performance, competitiveness, and consumer behavior. The research also explores the role of the government and other factors influencing the currency's value and its subsequent effects on the economy and the retail industry's sustainability. The proposal also highlights the significance of the retail industry in the Australian economy and its contribution to GDP, employment, and revenue generation.

BUSINESS RESEARCH PROPOSAL
STUDENT NAME:
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Abstract
During the contemporary period, Australian population and economy has witnessed a sharp rise
in value of Australian dollar in foreign trade exchange. According to the current financial report,
the value of Australian dollar is increased by 4.1% than previous value which ultimately provide
great and prolonged impact on the social as well as economical setup. The main purpose of the
research proposal is to investigate the impact of this increase rate in the value of Australian
dollar on the country’s retail industry. It has been observed that, there are almost 170,000 retail
organisations are located throughout the Australia and almost 10.9 percent of the total population
are solely depend on this particular industry for earning purposes. In that context, this research
proposal has a significant value as it can highlight over the actual effect of such rise on the retail
industry as well as on a specified group of a population which mainly includes customers,
employees, employers, shareholders.
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Table of content
Chapter 1: Introduction....................................................................................................................5
1 The research problem...................................................................................................................5
2 Background...................................................................................................................................6
3 Ethical consideration....................................................................................................................7
4 Literature review...........................................................................................................................8
Introduction......................................................................................................................................8
Economic impact related with dollar value enhancement...............................................................9
Impact of frequent currency value fluctuation.................................................................................9
Government intervention into the issue.........................................................................................10
The impact of dollar value increase upon retailing industry.........................................................10
Negative impacts in relation with the issue...................................................................................11
Summary........................................................................................................................................11
5 Aims and objectives of the research...........................................................................................12
7 Research philosophy...................................................................................................................13
8 Data collection............................................................................................................................14
9 Data analysis procedure..............................................................................................................14
Reference list.................................................................................................................................16
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Gantt chart.....................................................................................................................................18
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Chapter 1: Introduction
1 The research problem
In recent times, Australian economy has witnessed a sudden and sharp rise in the value of
Australian dollar in share market. This increase rate in dollar has the potentiality to bring
effective improvisation in the entire economical setup of the nation which ultimately can
maximise the economical sustainability of the nation. This sudden hike in value of the Australian
dollar is only possible because of the sudden downfall of US$ in international share market. This
increase rate in dollar has helped the Australian government in generating huge revenue by
which they can able to maintain sustainable economical development for the nation. This sudden
hike in value of dollar also gives them opportunity by which they can make improvement in their
NI and overall GDP growth rate (Kim, S.J., 2015). Retailers are assumed as an emissary between
the producers and the consumers. Their efficiency and effectiveness in business operational
process can ensure that the consumers or the customers can get opportunity to enter into the
widest range of products in best price. The effective operational performance of a retailer can
also make it sure that the customer can receive superior service provision in accordance to their
needs and preferences. So, it can be accepted that, the total GDP rate of a country can depend on
the retail marketing to a large extend (Robinson et al. 2017).
This research proposal is conceptualised on the impact of sharp rise of dollar on the Australian
economy and especially on the retail sector.
This current research proposal contains a research background that provides readers a brief and
elaborate description about the overall impact of the increase rate of the dollar on the Australian
retail sector (Lim et al. 2014). The research background also gives an intricate explanation about
the potential effect of the rise of the value of dollar on the certain group of people in overall
population like: consumers, employees, employers, business owners, government.
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This research report also contains a specified aim and objectives of the research proposal that
highlighted on the exact importance or the significance of the research work.
The given research hypothesis which are relevant with the research topic can also provide an
ample amount of help to the researcher by which he can draw some research questions.
Moreover, all the necessary ethical consideration that is associated with the scenario or the
research topic is also being discussed.
2 Background
The national income or the GDP growth rate of any developed country depend on the retail
industry to a large extend. Retail industry of a country plays important roles, like: it introduces
the customers to wide range of products, offer assistance to them so that they can buy good
products at best price (Hambur et al. 2015). So, as a whole, it can be assumed that, retail
industry can provide their effective contribution in generating huge revenues for the government
of a nation. On other words, it can be said that, the prolonged economical sustainability can be
easy to maintain if a large population of a country solely depends on the retail industry for
earning purposes. So, retail industry can be considered as an important and contributory business
sector for any nation. In context of Australia, it has been observed that, there are all around
170,000 retailing organisation situated in Australia and almost 1.3 million people of total
population solely depends on the retail industry for earning purposes (Lim et al. 2014).
Therefore, the retail sector has been accepted as one of the largest sector for employment in
Australia. Similarly, many research reports, publication sheds light on the fact that, the retail
industry also has the potentiality to make significant contribution in financial output of the
Australia; the government of Australia can earn $59billion for every year from this retail market
which is almost 5.1 percent of the GDP rate of Australia (according to the 2009- 2010 financial
year) (Apergis, 2014).
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This research study is based on assessing the impact of sharp increase of dollar on retail industry.
During this recent time, the Australian population and its economy have witnessed a sudden hike
in the value of Australian dollar in international share market. The report published in 2015-16
financial year, reveals that there has been a sudden increase of almost 4.1% of the value of
Australian dollar which in turn provides a great impact on the social and on the economical
background of the nation (Brown and Lawrence, 2017). In case of international share market or
in foreign trade exchange, the Australian dollar has an important position along with the US$,
Euro and the Yen. This sharp rise in the value of Australian dollar is only possible due to sudden
downfall of the US$. Another reason behind this sudden increase is that the government has
imposed high interest which ultimately impact upon the foreign exchange market. Due to this
positive effect, the government of Australia also get golden opportunity to generate huge
revenues for the nation. This in turn provides an opportunity to the nation for experiencing a
rapid and sustainable growth in GDP (Anderson et al. 2016). According to recent financial report
(published in 2016), due to this hike in value of the dollar, currently the Australian dollar is
accounted as the 5th largest throughout the world. Apart from this, in foreign trade exchange, now
Australian dollar is occupied an important position with the total share value of almost 6.9% with
respect to the world’s total daily share value of Dollars (Brown and Davis, 2015).
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So, in that context, it can be assumed that, due to high value of currency, consumers of Australia
can get enough opportunity to buy foreign products at a good or cheaper price. This ultimately
can provide positive impact on the Australian trade industry especially on retail industry as the
employers or shareholders can get golden chance of achieving economical benefits as well as
competitive advantages in global business arena. More formally it can be said that, increase in
value of the Australian dollar can facilitate purchasing capabilities of the consumer to a greater
extent which in turns can offer positive impact on the country’s retail sector (Fleming and
Measham, 2015). In simple words, it can be said that, increase in the value of the dollar signifies
that, the retailer can purchase foreign goods or products in mush cheaper price, so in turns he can
sell that same product to the consumer at good price but keeping his own profitable margin
intact. So, as a whole it can be concluded that, increase in the value of the Australian dollar can
provide great impact on the retail industry as well as on the customer and employers.
3 Ethical consideration
In order to carry out any research study with serious consideration for any academic reason, it is
the foremost necessity and basic requirement to abide by all the ethical consideration associated
with the research study. The research proposal is carried out on the topic of “ impact of sharp rise
in dollar on retail market of Australia” (Humphries, 2017). So, in order to carry out this research
proposal with ease and efficacy, the research has the necessity to look over his data collection
procedure. The appropriate consideration of the ethical issues related with the research work can
ensure the researcher that all the data which is accumulated by him is relevant and accurate with
the topic. Moreover, according to the “Data Protection Act, 1998”, the confidentiality and
secrecy of the collected data has to be maintained by the researcher that should be concealed
under the premise of the academic jurisdiction (Gummesson, 2017). To maintain the ethical
consideration, regarding the data which are collected from secondary resources like book,
existing literature reviews, the research has the foremost essentiality to ensure that those data
should be used solely for the research purposes.
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4 Literature review
Introduction
The contemporary times have witnessed a rising concern related to Australian context (Burtt and
Dargusch, 2015). There has been a sudden lift of 4.1% of dollar value since July thus having a
wide range impact upon the social, economic and historical backgrounds. This event has
successfully able to pose a positive impact upon the economic condition of the country. It is in
due course of lowered US dollar that has given Australia to increase their value. An overall
positive impact can be gagged as the rising dollar value has resulted in Australian government to
generate greater revenues. This has in turn enabled the nation to experience a growth in the GDP.
It was according to the annual reports of 2016 that Australian dollar accounted as the 5th largest
in the world (Anderson et al. 2016). Calculating the world’s total daily share of dollars Australia
accounts for 6.9% of it. With respect to the foreign trade exchange the Australian dollar seems to
occupy a significant and prominent position. The government of the said country plays the most
important role behind the soaring values of Australian currencies. Increased interest rates are
found to be imposed upon the foreign exchange market by the government of Australia which
has naturally led to cause rise in their currency values. The greater the diversity working upon
the economic systems the better shall be for Australia to improve their currency values.
Economic impact related with dollar value enhancement
Considering the impact of this phenomenon upon the economic and financial factors of the
retailing industry specifically the importing rates are to get reduced drastically (Scollo et al.
2015). The availability of foreign goods and products at cheaper costs shall facilitate the budgets
of the customers. An automatic rise in the customer buying behaviour shall be noted in terms of
the retailing business scenario. The impacts are not limited to this extent; a tough competitive
advantage shall be gained and witnessed within the global market. As the entire retailing industry
is likely to experience the same circumstances every specific organisation shall wish to sell the
goods at much cheaper rates to beat the other and establish a competitive edge.
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The other significant factor aligned with the increase in Australian currency value other than the
government intervention is the recent drop in the value of US dollars. Be it the customers, the
suppliers or the owners a positive impact has befallen upon people residing within Australia
(Wardle and Chang, 2015). The people who went from other countries to reside in Australia shall
also be equally benefitted as they can purchase foreign commodities at cheaper rates.
Impact of frequent currency value fluctuation
It is evident from the empirical research that a frequent fluctuation of interest rates with respect
to the Australian currency shall have a direct impact upon a number of factors. They are likely to
give rise to both positive and negative impacts, depending upon the particular sector under
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concern. As the heightened value of Australian currency is likely to make the imported product
available at cheaper rates which shall enhance the market position. The Australian business shall
encounter with achieving greater competitive advantage within the spectrum of global
environment. This will ultimately result in experiencing an improvement in the economic state of
the nation (Oliva et al. 2014). On concentrating the focus upon the retailing industry the event is
likely to have a positive impact by driving the customers to engage into greater buying activities.
As the level of competitive advantage rises, the customers get to compare the best prices and
avail the products and services at the cheapest costs possible.
Just as the positive impacts of rise of dollar value are enjoyed by the customers of the retailing
industry, there lies a simultaneous negative impact upon the associated employees. The elevation
in the dollar value in Australia has resulted in the total number of working staffs involved within
the retailing sector. The business organisations comprising the said industry have experienced a
serious concern related with issues of unemployment. It is not only a negative event for the
employees but also equally serious phenomena for the employers (Fleming and Measham, 2015).
The increasing unemployment rates have implicated pressure upon the employers as an increased
amount of spending shall get allotted for hiring the fresh set of human resources.
Government intervention into the issue
As the business transactions are intrinsically associated with the government policies and
regulations of the particular country such significant national events are bound to have complex
impact. The government seems to have a great impact upon the financial and business processes
through their policies and regulations. It becomes therefore necessary at times for the
government to show effective intervention upon the foreign capital value changing phenomena.
It is the foreign exchange rates and the capital invested for the foreign goods and services that
determine an enhancement in the foreign cash flow. One of the interrelated and inevitable
segments of the retailing business industry is the taxation regulations in relation to them (Brown
and Davis, 2015). As the prices of the diverse consumer products are experiencing fluctuation a
simultaneous transition is necessary in the taxation policy of the particular nation. Just as the
taxation policy related with the Australian retail industry in liable to get altered the economic
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policies are also to undergo wide number of changes. These transitional processes shall enable in
dealing with issues that are intrinsically associated with unemployment.
The impact of dollar value increase upon retailing industry
In relation with Australian retail industry it can be signified that risen dollar value has enhanced
effects upon retailers across the country (Oliva et al. 2016). As the import trade gets facilitated
by this factor, a subsequent increased buying power is noted. This enhancement in the buying
power is rendered upon the customers. The products and services are getting increasingly
lowered on the expensive meter thus ensuring greater buying trends on the part of the customers.
Although the export transactions become expensive the buying power within the Australian
boundary remains restored. The customers thus experience a wide range of benefits because of
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