Pestel analysis australia pdf

Australia pestle analysis 2022. Análisis pestel pdf.

Australia pestel. Pestel analysis australia 2022.

Australia is the world’s 6th largest country, recognized as an entire continent. The following discussion covers the PESTLE analysis for Australia, covering the different factors from the external environment. The discussion will also elaborate how these factors affect the business environment in the country.
Political Factors The political climate of a country determines the pace of growth of the businesses in the country. It also affects the foreign investors from entering into the market as a tumultuous political situation creates a high risk business environment. On the other hand, a stable political climate allows the businesses to operate in a low risk
environment with low uncertainty. Australia has overall experienced political stability, which provides an encouraging environment to businesses to operate in the country. There have been no significant threats of political turmoil or terrorism, depicted by the 74.6% of political stability index. The favorable trading regulations further facilitate the
businesses in achieving development targets (Trading Economics, 2023). Australian government is planning to improve the relationship with China for establishing better business and trading. The rift with China has resulted in a high tariff on some of the products of Australia, due to which a significant cost was incurred by the Australian economy
(Fildes, 2022). There have been some political disturbance owing to the decisions made by Scott Morrison; however the business environment faced no significant complications due to this issue. This level of political stability indicates that the country is a regulated well and has the capacity to deftly respond to uncertain political occurrences.
Economic Factors Overall, the economy of Australia has maintained a stable outlook for 3 decades, indicating the strong economic functioning of the country. This degree of stability and positive economic indicators has made the country an appealing location for businesses. The GDP of Australia has increased from 2.17% in 2019 to 2.24% in 2021,
showing a positive trend. However, the rising inflation is an area of concern as the inflation rate is currently at 7.8%, which is the highest since the past 3 decades. Higher inflation has resulted in increased prices effecting price structure of industries such, also causing price hike of electricity (Venz, 2023). According to Australian Bureau of Statistics
(2023), the country was able to retain the unemployment rate of 3.5%, while observing a rise in the ratio of employment. The lack of migrants has disrupted the flow of labor while growing wage ratio is another area that needs to be considered by the organizations. Despite the positive GDP and employment growth rate, the increasing inflation would
affect the cost structure of the business operations.

In addition, the growing wage structure poses another challenge to the businesses that have to adjust their operating cost accordingly, while maintaining significant profits. Social Factors The population of Australia is estimated to be 26,141,369, and the population composition reflects a combination of different ethnic backgrounds. English and
Australian ethnicities dominate the population, while there are other ethnic groups as well such as Irish and German. The behavior of consumers is guided by the ethnicity; therefore businesses have to develop products and services keeping the preferences of the target market. The marketing endeavors also have to be shaped around the cultural
diversity to make the message appealing to the target population. The largest segment of the population consists of 25-45 year old’s, and the smallest ratio is of 55-64 year old’s. The population growth rate was 1.25% in 2022, and during the pandemic the growth ratio has been adversely affected. The slower population growth has a direct impact on
the businesses and their financial performance (Packham, 2021). The onset of COVID 19 has influenced consumer behavior, as individuals preferred to spend on less expensive brands for essentials. Along with the decision making process of the businesses as government had to put restrictions and limit social interaction. Organizations in Australia
have also experienced disrupted supply chain due to pandemic. Technological Factors The technology segment in the country is showing positive trends as businesses have increased their investment in the domain of R&D.
The number of individuals employed in the technology sector has also indicated a growing trend, suggesting the expansion of the sector, including IT and digital economy. The main reason for the development of the growth is the focus of the government on bringing improvements in the technology sector. The government has made efforts to promote
the development of this sector as it has been recognized as holding potential for contributing significantly to economic development of the country (Technology Council of Australia, 2021). Businesses in Australia can benefit with the established technology as technology upgrades can be used to manage the business operations more effectively. The
growing technology has also supported the businesses in bringing innovation into the organizational processes as well as the product design. Environmental Factors Climate changes have brought significant changes to the weather patterns, which has resulted in the Environment Protection Authority (EPA) of Australia to take required measures.
Organizations operating in Australia have to illustrate compliance with the environmental protection policies. The Climate Change Bill is an example of the steps the government is taking to lower the greenhouse gas emission from different industries. To further strengthen the environmental protection the government has imposed penalty on
organizations that have failed to comply with the standards. Legal Factors The Australian government has developed a set of comprehensive laws which outline the standard practices that businesses should follow. For instance, there are laws that protect the interest of the customers and maintain functional competition in different industries.
Moreover, environmental laws are there to guide sustainable practices of organizations in the region. There are also employment laws that influence a firm’s human resource management practices. Organizations are bound by these laws to refrain from discrimination against candidates and focus on being an equal opportunity employer. Fair Work
Act 2009 is there to protect the interest of the employees, providing employment and growth chances to different people. Conclusion Australia provides a favorable business environment to businesses as evident from the above analysis. The stable political and economic situation, along with a fast developing technology sector offers growth
opportunities to organizations.

References Australian Bureau of Statistics (2023). Employment and Unemployment. Retrieved from: ~:text=Labour%20Force%2C%20Australia,unemployment%20rate%20remained%20at%203.5%25. Fildes, N. (2022). Australian business hopeful of better ties with China. Financial Times. Retrieved from: Packham, C.

(2021). Australia lowers long-term population, economic growth forecasts on COVID-19. Reuters. Retrieved from: Australia is one of the largest countries on the planet comprising several small islands. The landscape consists of beaches, deserts, tropical forests, mountains, and wildlife. Canberra is the capital of Australia, but the most populated city is
Sydney (Ride, 2021). Here is the PESTEL analysis of Australia. Political Factors Australia has a transparent political system. The administration of government is based on liberal democracy and constitutional monarchy. Since the management of the country is transparent and fair, this convinces people to trust the government. Australia has
maintained strong ties with the United States and is a member of the United Nations. The country has alliances with different leading organizations like OECD, Commonwealth of Nations, G20, Asia Pacific Economic Cooperation World Trade Organization, ANZUS, ASEAN plus Six Mechanism, and Pacific Island Forum. The stable and strong political
climate has attracted investors to the country (Shaw, 2020). Economic Factors Australia is ranked the 14th largest economy in the world. The country was less adversely affected by the COVID-19 lockdown in 2020. Its’ GDP growth is expected to be 3.1% by 2022. Household incomes, business investment, and inflation are expected to grow gradually.
All the companies in Australia are obliged to pay a 30% tax rate on their taxable income. But small businesses are subjected to pay a reduced tax rate of 26%. Machinery, vehicles, mineral fuels including oil, delivery trucks, refined petroleum, types of equipment, electrical machinery, medical apparatus, pharmaceuticals, plastics, furniture, and
precious metals are some of the major imports of Australia (David, 2021).
Social Factors Australia has a low population density. The average life expectancy in the country differs by women around 84 years of age and men around 80 years old. Australia is a diverse country.

Despite having large immigration requests and policies adopted after World War II, the topic is still very touchy for citizens. The Australian population is classified among three main social classes; upper class, middle class, and working class. The upper class consists of 5% to 10% of capital, ownership, and property being their main source of income.
The middle class is comprised of a population who do not have manual jobs, and over 20% of the population is classified as working-class (Frue, 2019). Technological Factors Two organizations support most of Australia’s research and development. The Commonwealth Scientific and Industrial Research Organization was headquartered in Melbourne
in 1926. This is an independent government agency that supports the research and development in almost all fields of biological and physical sciences except nuclear energy, clinical medicine, and science. DSTO (The Defense Science and Technology Organization) supports military research and development. Many issues dominate the current
Australian science and technology policies, for instance, effective communication among industries, resources, and funding allocations etc (UK Essays, 2018). Environmental Factors Australia is one of the most beautiful countries in the world. It has stunning beaches, forests, and mountains. It is broadly known for amazing biodiversity. More than one
million animals and plants are found in Australia. However, there are some environmental challenges that Australia has to face. For example, the country is known to be situated in the driest inhabited continent. Climate change is also a challenge. Water insecurity and infectious diseases are also major issues (David, 2021). Legal Factors Legal factors
help in creating a stable business environment in the country, as the legal frameworks dictate the business rules, labour rights, pay regulations, and many other important factors.
This is an important basic parameter, that would be indispensable in setting the standard of yardstick for all business ventures. The legal system of Australia is very favourable for commerce and trade. The country has fair rules and laws to regulate business operations, employee rights and consumer complaints. The country makes sure that its’
citizens are getting proper wages and are in good and safe working conditions (UK Essays, 2018). Conclusion Australia is a beautiful country with numerous potential for investors. The country has political stability and economic growth is also showing positive figures. The country is transparent and quickly adapts to policy changes and the global
climate. Some new laws and policies affect data privacy and encryption which is deemed a step back by security experts and citizens.
References David, J. 2021. PESTEL analysis of Australia. [Online], Available at: [Accessed on: 26th April, 2021]. Frue, K. 2019.
PEST analysis of Australia.
[Online], Available at: [Accessed on: 26th April, 2021]. Ride, W. 2021.
Australia. [Online], Available at: [Accessed on: 26th April, 2021]. Shaw, A. 2020. PEST analysis of Australia. [Online], Available at: [Accessed on: 26th April, 2021]. UK Essays, 2018. Pestel analysis of Australia. [Online], Available at: [Accessed on: 26th April, 2021].