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Factors Driving Global Business Development - Coggle Diagram
Factors Driving Global Business Development
Financial growth opportunities and/or loss minimisation
For Financial Growth
Developing globally allows a business to increase the potential market as well as lowers the cost of production - increasing financial growth
To minimise losses
businesses can minimise losses by expanding into other countries
it allows businesses to capitalise on the different seasons in the southern and northern hemispheres
Consumer purchasing and spending patterns
Consumer purchasing
Consumer behaviour factors that contribute to business
product choice
Smart phone technology
Strength of the Aus dollar
Brand awareness through social media
Secure payment systems
Patterns of consumption
Internet and smartphone apps allows for purchasing at any time of the day, anywhere
Consumers are confidant purchasing online
Businesses use technology to give consumers access to online shopping and social media sites
Loyalty cards and reward points are incentives that businesses use to entice customers into returning
Online sales often have a reduced price compared to in store, encouraging online shopping
Global Transportation
Shipping and air freight are now very quick and goods can be monitored by the use of technology
Faster delivery = satisfied customers who are more likely to purchase from there again because it's relatively cheap and quick
Secure online payments
Consumer is confidant that the bank details are safe from hacking and anyone wanting to steal their identity or money
For businesses, payment is made upfront before the goods are delivered, guaranteeing payment
World Trade Organisation (WTO) regulations and sactions
Ensures that trade flows as smoothly, predictably and freely as possible.
Has 160 countries
WTO Free Trade Agreements
ASEAN
EU
NAFTA
ANZCERTA
Every member has to have a list of tariffs and quotas that they apply to other countries
Needs to be transparent
Must adhere to rules or be punished
Settle disputes and trade tension
Deregulation of the financial market
Allowed foreign banks to trade in Aus market
Happened in Aus in 1980's
Removing the barriers to transactions globally, in and out of Aus
Currency speculation now occurs between countries, businesses and individuals
Govs, businesses and indies are able to buy and sell shares in different countries
Examples of foreign institutions operating in Aus
American Express
ING
Citibank