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Dats PLC - Final
Dats PLC - Final
An Analysis on Australia
1196 WORDS
Sannidhi Bosamia
11R/2014
ACTION PLAN
Research Question:
How do the external factors, such as PEST factors, in Australia affect the business of DATS plc and what
strategies and recommendations can be made to improve DATS plc?
Research Methods:
Identify websites, which will assist me in answering the question.
Identify graphs, tables and charts, which will assist me in answering the question.
I cannot do any primary research as I am not in Australia and I only know one Australian (which
cannot be the most liable source due to the fact that to make a proper answer to primary surveys,
many people are required).
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Brief Plan
1. I will start with an action plan so that I can have all the work that needs to be done planned.
2. I will look at the task sheet and note down the main points which are necessary to include in
the formal report.
3. I will do a thorough research on these topics and ensure that I have understood all of the
research topics.
4. I will start the formal report by introducing Australia, DATS plc and then continue with the
formal report by including the research I have done.
5. I will analyze and evaluate my research to come up with strategies and recommendations for
DATS plc.
6. I will submit the formal report before 15th September, 2014 (the deadline).
7. I will also proofread the formal report to ensure that no mistakes have been made and that
the formal report is properly referenced.
8. I will record the whole process through a handwritten/digital process journal.
In class, we have gone through the types of production and we have studied PEST analysis in the
previous year, Grade 10. This assessment focuses on moving a country from Malaysia to another
country. I have chosen my country as Australia because of its position in the economic cycle - boom.
Furthermore, the exchange rates for the country have dropped which makes the economy of the
country much stronger (theguardian.com).
In Grade 10, we also learnt about the marketing mix, the type of markets, finance, and financial
accounts. The marketing mix is the 4Ps. They are price, place, promotion and product. Through the
means of the 4Ps, I can find out how the place, price, promotion and product of the DATS plcs shop
would affect their sales and revenue. Therefore, it is necessary for me to recommend DATS plc
where and how they should price, promote and make their products to get necessary amounts of
revenue. Finance includes calculating financial ratios, profits and financial accounts. By being able
to calculate different types of profits, it will be easy for DATS plc to know how much they need to
make to ensure a particular amount of profits.
Using the information I have learnt earlier, I can provide an answer to my research question.
However, I need to do a lot of research on Australia as well to give a supported answer.
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Introduction to Australia
The countrys likes as a market (e.g. Malaysia enjoys food and therefore a food restaurant
would most likely survive well)
The countrys PEST analysis (segmented; political, economical, social, technological)
The effect of the PEST factors to DATS plc
How DATS plc can increase sales through the analysis of the PEST analysis and its effects
Recommending ways to increase sales (includes strategies of doing so).
The final goal of this assessment is to come up with a formal report which documents my findings
on Australia and the recommendations to make on it.
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Process Journal
August 19th, 2014 (Tuesday)
Today, Mr. Dave introduced our assessment to us and showed us a sample of the report done by a
senior student. I thought the report was very well written and included various different aspects of
the country she had chosen; Taiwan. Her PEST analysis linked back to DATS PLC, the company,
constantly and the writing flowed, too.
The assessment was simple yet it had its complications. We had a word limit of 1200 words and
were to fit every single required bit of the report into this limit. In the previous works done, I have
always had trouble fitting my works into the word limit. Additionally, it could have been slightly
difficult to find every necessary feature of the country which was required in the assessment. I was
also a bit overwhelmed by the report which the student had written and felt that I would not be
able to write as well as she had.
Mr. Dave explained the assessment to us and afterwards told us to select a country of our choice; I
chose Australia.
2nd September, 2014 (Tuesday)
Today I started writing the action plan during Business Class. We had our mock IGCSEs today and
therefore I did not bring my laptop and thus I wrote the action plan on a piece of paper and copied
it onto my laptop when I got back home. I didnt have a chance to completely finish the action plan
as I had other homework to do.
I did not do anything for the assessment for many days as I had other subject works to do and we
also had a formative for Business. We also had a three day holiday because of Malaysias
Independence Day which was on the 31st of August and we received a holiday on the 1st of
September (Monday). Additionally, we had a Business debate against the question: is capitalism
the only way for an economy to prosper?; which took up 4 of our lessons.
4th September, 2014 (Wednesday)
Today we had a business class and I finished my action plan in class and Mr. Dave told us we could
send him our action plans and introductions so that he could tell us how we were doing. Therefore,
I sent my action plan to him and he told me it was pretty good and to keep going as I was.
Today, I also did some research on the political aspect of Australia and jotted it down onto another
document in Word.
7th September, 2014 (Sunday)
I wrote my introduction today and I failed to follow my action plan because I have horrible time
management skills and I procrastinate a lot. Also, today was my brothers birthday and most of the
day went by in his celebration so I could only write the introduction and I asked Mr. Dave for
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feedback on the report which he gave me through email. I looked through various different sites to
get information on my country. I will do an evaluation of sources at the end of the process journal.
8th September, 2014 (Monday)
Mr. Dave replied to my email which held my introduction and told me to add the years in my in-text
citations. I already had most of the information on Australias political system so I just had to write
it into the report. Mr. Dave also told me I only need to add legal procedures if they were necessary
however I believe that they werent extremely necessary and therefore I decided to briefly
summarize the laws in Australia for and against businesses, such as environmental laws.
I also started the economic aspect of Australia in the report and wrote a bit about it, such as the
GDP, inflation rates, unemployment rates etc. After I was done with that, I decided I would do the
rest of it tomorrow. However, I feel that I could add/get rid of some of the information in the
political aspect of the report.
9th September, 2014 (Tuesday)
Today we had a Business class and I continued with my research and added in information on the
economical aspect. Also, Mr. Dave told us that we had to talk about corruption in the country and
therefore I researched the corruption levels in Australia, which were very low, and added that
information into the report.
When I came home, I researched corporate tax rates in Australia and Malaysia, the exchange rates
between Malaysia and Australia, as well as Australias position in the economic cycle. I then put this
information into the report.
10th September, 2014 (Wednesday)
Today, I researched various different things under the economic aspect of Australia: business laws,
and then I moved onto the social aspects of Australia and researched the culture of the country. I
also found information on the shopping culture of the country; e-commerce.
11th September, 2014 (Thursday)
Today, we had a Business class so I decided to research the technological aspects of Australia as
that was the only aspect of PEST that was leftover. It was pretty easy and I found various different
things such as the smartphones usage, internet usage, etc.
I also found out that the country has various different manufacturing industries.
14th September, 2014 (Sunday)
Because I am the ultimate procrastinator, I did not do the recommendations & strategies for DATS
PLC until today. The deadline for this report is tomorrow which is why I had to do it today
otherwise I would not be able to submit the report on time.
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I also added the cover page, proofread everything in the report and edited whatever needed to be
edited so that I could keep the report under the world limit. I ended up with 1196 words, which was
certainly under the limit and therefore I was extremely proud of my work.
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I think I did quite well because I managed to get all my work done of time and I used credible
websites and tried my best to paraphrase all the content and explain it in my own words. I also did
all of the things which was asked of us from the task sheet.
I could have found more information on Australia and procrastinated less to finish the report
earlier and hand it in to Mr. Dave instead of leaving the Technological aspect and recommendations
section empty. From the feedback I get on this report, I will further improve the way I write and
what I need to include, etc.
I think I put in quite a lot of effort however my procrastination periods make it seem as if I never
truly put in any effort into the report. I actually did work quite hard to find all the information
necessary as finding some of the information such as which part of Australia would buy formal
wear and handbags was difficult. I needed to implicitly find the information, such as, through
which city in Australia had the most riches.
In a way, yes; I could have procrastinated less and put in more effort into the actual report rather
than listen to music or go through Instagram and other social networking websites. However, the
procrastination doesnt truly affect the actual effort I put into the report which is why I think that I
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have put in 98% of my all and I could have put in the remaining 2% if I procrastinated a teeny bit
less.
I managed to find most of the information I needed easily, therefore I believe that my research skills
are actually really good and I only looked at credible websites; I managed to figure out which sites
are truly credible and which are not. I also managed to finish whatever needed to be finished in a
short period of time.
Procrastination and time management. I have always been horrible at managing my time because I
procrastinate too much and I get distracted quite easily too which is how I end up procrastinating
and being unable to manage my time.
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1.0 Introduction
Australia is located in between the Pacific and Atlantic oceans and is known for being the worlds
smallest continent but largest island. The whole of Australia is surrounded by bodies of water and
the continent stretches around 3700 kilometers north to south and 4000 kilometers west to east,
making it an incredibly huge country (australia.com, 2014). Despite the large expanse of Australia,
it has a population of 23.13 million people; in 2011, there were 2.13 hectares available for each
Australia, making it one of the highest arable land countries (worldbank.org, 2014).
Australia is a continent, yet, it is governed as a single country, making the country incredibly unique
(australia.com, 2014). Australia has a constitutional monarchy and the government embodies both,
the British and the American models, making it an even more exceptional country (dfat.gov.au,
2008).
Australia is a well-developed country; in 2013, Australia had a GDP of 1.561 trillion US dollars and a
GDP per capita of 67,468 USD (worldbank.org, 2014).
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Australia is in the growth stage of the economic cycle as there was a small decline in the mining
resources; but now, the demand for all Australian products have increased, due to Chinas demand
for Australian resources such as steel and iron (Herald Sun, 2013).
Australia is also a member of the G20 (G20.org, 2014). Australia has a market economy; there is
very little government interference on the businesses. Australias currency is Australian Dollars
(AUD/A$) and it has an exchange rate of approximately AUD2.96 for each Malaysian Ringgit
(XE.com, 2014), making the Australian dollar a strong currency. Australias minimum wage is
A$640.90 a week (RM1,893.96) (Sydney Morning Herald, 2014). In Malaysia, the minimum wage is
RM900/month for Peninsular Malaysia, where DATS PLC is based (Ministry of Human Resources,
2014). Ergo, if DATS PLC shifts to Australia, they would have to pay more than eight times the price
of labor work; however, if DATS PLC uses capital-intensive production, they would not need to
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spend as much as money on the wages but would need to invest in machinery that produce
handbags and formal wear.
For many years, Australias corporation tax has remained 30% (Australian Taxation Office, 2014).
Corporations include corporate limited partnerships, strata title bodies corporate, trustees of
corporate unit trusts and public trading trusts (ibid). Malaysia has a corporate tax of 25%
(kpmg.com, 2014) and once larger sums of profits are made, the difference between the amounts
paid in tax in Malaysia and Australia would increase significantly.
Malaysia and Australia have a Free Trade Agreement which makes importing and exporting
between the two countries easier (dfat.gov.au, 2014). In 2013, Australia and Malaysia had a total
trading of A$17.9 billion (ibid).
Australia has an unemployment rate of 6.1% and an inflation rate of 2.6% (Sydney Morning Herald,
2014). Australias unemployment rate is quite low which means that many jobs are available;
hence, if someone quit or was fired, it would be difficult to find a new employee.
4.0 Social Analysis and the Market
English is the primary language spoken in Australia; however, more than 15% of Australians speak
languages other than English at home (dfat.gov.au, 2012). Australians have a strong love for sports
and enjoy physical activities such as swimming, aerobics, etc.. Australia has no typical, national
cuisine but instead has a multi-cuisine which offers foods and flavors from all over the world.
Australia has an egalitarian society which allows everyone to be treated fairly and equally as well as
reach the highest statuses and ranks possible.
Fortunately, in Australia, employees are required to dress in proper attire which allows DATS PLC
to gain many customers as formal wear is usually the dress codes for workplaces (ibid).
Furthermore, Australias market for shopping has been growing largely through e-commerce. In
fact, Australia sits in the top five markets globally after Britain and/or USA (The Australian, 2013).
Ergo, Australias love for shopping should help increase revenue for DATS PLC.
5.0 Technological Analysis
Approximately 90% of Australians use the internet (internetlivestats.com, 2014) In 201213, over
three quarters (76 per cent) of Australia's 15.4 million internet users made a purchase or order
over the internet. (ABS, 2014). The most popular use of online shopping was for travel,
accommodation, memberships or tickets of various kinds, followed by clothing for females, and
multimedia for males (ibid). Around 61% of Australians are Facebook users and the percentage
decreases with the other social networking websites (socialmedianews.com.au, 2013). In May 2013,
11.9 million Australians owned a smartphone (acma.gov.au, 2013); DATS PLC could introduce apps
that could be downloaded since 76% of the 24-34 age group downloads apps on their smartphones
and 66% of 35-44 age group (ibid).
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Additionally, Australia has manufacturing industries in various fields; including textiles, clothing
and footwear manufacturing industry DATS PLCs field of industry (industry.gov.au, 2014).
6.0 Recommendations and Strategies for DATS PLC
Most of the expensive housing and real estates are based in Sydney (realestate.com.au, 2014),
implying that most of the high end consumers can be found from this city. Additionally, there are
various tourist attractions in Sydney (especially the Sydney Opera House) which would allow there
to be handbag purchases by female tourists. However, Australia has a very high minimum wage
which makes it better if the goods are produced in Malaysia and then exported to Australia. DATS
PLC can introduce e-commerce and smartphone apps and thus export to Australia through these
methods and include/add shipping prices to the bill.
Capital-intensive methods are the best when it comes to producing in Australia as labor costs are
incredibly high; the moderately low unemployment rate would make it quite hard to find
employees even though not much skill would be required.
Australia requires a proper dress code for work which would allow there to be sales for formal
wear and handbags are a necessity for females. Although, a market research on sizes and types of
handbags as well as formal wear would be necessary to ensure enough sales are made to breakeven. Furthermore, Sydney (and many cities in Australia) has beaches which would mean most of
the tourists and Australians would require beach wear and DATS PLC could produce these clothing
items and increase revenue. With Australias love for sports, they could produce sportswear, too.
DATS PLC could use value-added methods, psychological pricing methods, or penetration pricing
(which may not allow DATS PLC to break even). Value added methods would require more costs
however psychological pricing methods could easily be used to attract various consumers.
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Evaluation of Sources
Source
Type
Strengths
Limitations
http://www.dfat.gov.au/
facts/sys_gov.html
Website
http://cpi.transparency.org/
cpi2013/results/
Website
http://minimumwages.mohr.
gov.my/employers/aboutminimum-wages-policy/
Website
http://www.tradingeconomics
.com/australia/gdp
Website
http://data.worldbank.org
/country/australia
Website
http://www.heraldsun.com.au
/news/national/new-boomchina-builds-aussierecovery/storyfncynkc61226551468180?nk
=82149cbfc14d99674e6b54
0c6ed5f93d
Online
Newspaper
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http://www.theaustralian.
com.au/executiveliving/fashion/click-shopaustralians-love-doing-theirfashion-shopping-online/storye6frg8k6-1226652505483
https://www.dfat.gov.au
/facts/people_culture.html
Online
Newspaper
Website
http://www.smh.com.au
/business/theeconomy/australias-miseryindex-at-a-sixyear-high20140818-105aqe.html
Online
Newspaper
http://www.dfat.gov.au/
fta/mafta/
Website
http://www.austrade.gov.au
/Invest/Doing-business-inAustralia/InvestorGuide/Running-abusiness/UnderstandingAustralian-businessregulation/Australian-businessand-environment-laws
Website
outdated.
https://www.g20.org/
about_g20/g20_members
Website
http://www.kpmg.com/
global/en/services/tax/tax-toolsand-resources/pages/corporatetax-rates-table.aspx
Website
https://www.ato.gov.au/
rates/companytax/?page=12#Tax_rates_
2001_02
Website
http://www.xe.com/
currency/myr-malaysianringgit?c=AUD&r=
http://www.theaustralian.
com.au/media/push-toregulate-press-illconceived-murdoch/
story-e6frg996-1226613315639?
nk=82149cbfc14d
99674e6b540c6ed5f93d
http://www.australia.com/
about/key-facts/cities-statesterritories.aspx
Website
Online
Newspaper
Website
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website.
http://www.realestate.com.au/
blog/australias-25-mostexpensive-suburbs-and-theirhouses/
Blog
http://www.industry.gov.au
/industry/TextilesClothingand
Footwear/Pages/default.aspx
Website
Online
Newspaper
Media
Release
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MLA Referencing
About Minimum Wages." Minimum Wages Portal. N.p., n.d. Web. 09 Sept. 2014.
<http://minimumwages.mohr. gov.my/employers/about- minimum-wages-policy/>.
Australia GDP." Trading Economics. N.p., n.d. Web. 07 Sept. 2014. <http://www.tradingeconomics
.com/australia/gdp>.
Australia." The World Bank. N.p., n.d. Web. 19 Aug. 2014.
<http%3A%2F%2Fdata.worldbank.org%20%2Fcountry%2Faustralia>.
Australian Business and Environment Laws." Australian Trade Commission. Web. 10 Sept. 2014.
<http://www.austrade.gov.au /Invest/Doing-business-in-Australia/Investor-Guide/Running-abusiness/Understanding-Australian-business-regulation/Australian-business-and-environmentlaws>.
Australia's 25 Most Expensive Suburbs - & Their Houses." The Realestatecomau Blog. Web. 12 Sept.
2014. <http://www.realestate.com.au/blog/australias-25-most-expensive-suburbs-and-theirhouses/>.
Australia's Misery Index at a Six-year High." Sydney Morning Herald 18 Aug. 2014. Web. 10 Sept.
2014. <http://www.smh.com.au/business/the-economy/australias-misery-index-at-a-sixyearhigh-20140818-105aqe.html>.
Australia's System of Government." Australian Government|DFAT. N.p., Feb. 2008. Web. 04 Sept.
2014. <http://www.dfat.gov.au/ facts/sys_gov.html>.
Cities, States and Territories." Australia's. Web. 7 Sept. 2014.
<http://www.australia.com/about/key-facts/cities-states-territories.aspx>.
Corporate Tax Rates Table." KPMG. Web. 9 Sept. 2014. <http://www.kpmg.com/
global/en/services/tax/tax-tools-and-resources/pages/corporate-tax-rates-table.aspx>.
Cowling, David. "Social Media Statistics Australia November 2013." Social Media News Blog
Australia RSS. 1 Dec. 2013. Web. 12 Sept. 2014. <http://www.socialmedianews.com.au/socialmedia-statistics-australia-november-2013/>.
Free Market Is a Fair Market: Murdoch." The Australian 5 Apr. 2013. Web. 9 Sept. 2014.
<http://www.theaustralian.com.au/media/push-to-regulate-press-ill-conceived-murdoch/storye6frg996-1226613315639?nk=82149cbfc14d99674e6b540c6ed5f93d>.
G20 Members." G20. Web. 9 Sept. 2014. <https://www.g20.org/ about_g20/g20_members>.
How Corrupt Is Your Country?" Corruption Perceptions Index 2013. N.p., n.d. Web. 10 Sept. 2014.
<http://cpi.transparency.org/%20cpi2013/results/>.
Internet Users by Country (2014)." - Internet Live Stats. 1 July 2014. Web. 12 Sept. 2014.
<http://www.internetlivestats.com/internet-users-by-country/>.
Page 17 of 18
Malaysia-Australia Free Trade Agreement." Australian Government | DFAT. Web. 10 Sept. 2014.
<http://www.dfat.gov.au/fta/mafta/>.
McMahon, Stephen. "New Boom? China Builds Aussie Recovery." Herald Sun | Melbourne. N.p., 11
Jan. 2013. Web. 9 Sept. 2014. <http://www.heraldsun.com.au /news/national/new-boom- chinabuilds-aussie-recovery/story-fncynkc61226551468180?nk=82149cbfc14d99674e6b54
0c6ed5f93d>.
Mobile Apps: Putting the 'smart' in Smartphones." The ACMA. 20 Nov. 2013. Web. 12 Sept. 2014.
<http://www.acma.gov.au/ theACMA/engage-blogs/engage-blogs/Research-snapshots/Mobileapps-putting-the-smart-in-smartphones>.
MYR - Malaysian Ringgit." Rates, News, and Tools. Web. 9 Sept. 2014.
<http://www.xe.com/currency/myr-malaysian-ringgit?c=AUD&r=>.
Tax Rates 2014-2015." Company Tax. Web. 9 Sept. 2014.
<https://www.ato.gov.au/Rates/Company-tax/?page=1#Tax_rates_2014_15>.
Textiles, Clothing and Footwear (TCF)." Textiles, Clothing and Footwear (TCF). Web. 12 Sept. 2014.
<http://www.industry.gov.au/industry/TextilesClothingandFootwear/Pages/default.aspx>.
Three out of Four Internet Users Shop Online." Australian Bureau of Statistics. Web. 12 Sept. 2014.
<Three out of four internet users shop online>.
Traill-Nash, Glynis. "Click, Shop - Australians Love Doing Their Fashion Shopping Online." The
Australian 29 Mar. 2013. Web. 10 Sept. 2014. <http://www.theaustralian.com.au/executiveliving/fashion/click-shop-australians-love-doing-their-fashion-shopping-online/story-e6frg8k61226652505483>.
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