Introduction
For developing the expansion of business in other countries, international business planning plays a very important role. The organization that has been selected in assessment 1 of this assignment was Woolworths and the organization is trying to make the enlargement of its business in South Korea and Indonesia. For making the enlargement of business there will be some abstracts that are required to evaluate by the management of Woolworth. In the following report, the evaluation regarding the average pay scale will be determined. The following report will also provide ideas about the behavior of consumers of South Korea and Indonesia. The fund transferring process will be examined in the document and many other abstracts will be evaluated before making the enlargement of business in South Korea and Indonesia.
A) The average pay rate for staff in entry-level and managerial roles in your chosen firm’s industry
The research is conducting for knowing the below abstracts which are related to the International strategy of Woolworths Australia:
The average pay role of staff at entry-level: Woolworths need to provide the average salary to people who will involve in South Korea and Indonesia. For making the expansion in South Korea they have to provide 8,590 Won for per hour. It is the average pay scale in South Korea for the entry-level. This payment would be sated approximately USD 7.3 per month. Also considering the full-time job a person could earn 1.5 million in a year. On the other side for Indonesia is IDR 326,830,989 and this amount could be converted into 265,863,199 net earnings. This is the salary range for both Indonesia and South Korea and Woolworths need to provide this entry-level salary to the people who will join the company in South Korea and Indonesia (Kompas, et. al., 2018).
Managerial roles in Woolworths: The managerial roles are important for establishing the entire tasks in an appropriate manner. In terms of international business, Woolworths need to conduct different managerial roles. Planning is the most important managerial abstract which is required for developing an international marketing strategy. Also, the organizing capabilities also need to have in the roles of managers. The manager is also responsible for leading the things in an appropriate manner and making control over the activities related to international marketing strategy (Deng, et. al., 2018).
B)The attitudes of local consumers or businesses towards international firms. You can identify this by reading a range of news articles or listening to podcast news about the country.
The attitudes of local consumers towards international firm
The behavior of South Korean consumers: In South Korea the local consumers are not interested in the domestic process. The demand for foreign services and products is increasing day by day. It is making a great opportunity in front of Woolworths Australia to increasing its overall revenue and establishing better international business with South Korea. On the other side, the consumption behavior of South Korea is to keep changing. In this situation, it is necessary to produce the products according to the choices of consumers (Cole and Mori, 2018).
The behavior of consumers of Indonesia: the growth rate of Australia is increasing and it is making more opportunities for Woolworths Australia to increasing its international market. There are countless opportunities in front of Woolworths that can increase the number of their consumers. The online shopping is very popular in Indonesia and Woolworths can provide online purchasing facilities to the consumers (Engel and Siszek, 2018).
C) How easy or difficult it is to transfer funds to and from the country with particular emphasis on the ability to repatriate funds back to the home country (Australia)
Fund transferring between South Korea and Australia: The south Korean WONS could be converted into Australian dollars. A particular transferring fees need to provide the bank the transaction could be done in an easy way. Skrill is the software that could be used in terms of transferring the fund from South Korea to Australia.
Fund transfer between Indonesia and Australia; The same pattern could be used in the fund transfer process between Indonesia and Australia. It would become easy for Woolworths to send the money by using Skrill.
D) Whether Australian banks have relationships or agreements with banks in that country
Banking terms between South Korea and Australia: There are lots of banking relationships which is running between South Korea and Australia. There are different trade agreements that were found between both countries. In terms of trade and investment, Australia is having better relationships with south Korea. The corporate and institutional banking solutions have opened its first branch in Seoul in the year of 1978 and it is providing transaction facilities between Australia and South Korea.
Bank terms between Indonesia and Australia; Australia is providing similar opportunities of Indonesia to make the use of the World Bank. There are several loan agreements established between Australia and Indonesia. These loan agreements have established between the commonwealth bank of Australia and the Republic of Indonesia. The better banking relationships between Australia and Indonesia are providing great transaction facilities to the people (Capuano, 2018).
E) The number and timing of public holidays in that country or seasons where work may be slower than usual or disrupted
The number of public holidays and session of slower business in South Korea
There are some days on which the government of South Korea has announced holidays and this day are: New year’s day, Korean new year’s holiday, Legislative election day, labor day, children a day, liberation day holiday, etc. Besides these, the final three months of the years are the time that can provide a slower business rate to Woolworths Australia. The company needs to apply better planning for growing their business in that particular season (Naibaho and Rhayu, 2018).
The number of public holidays and session of slower business in Indonesia
The government of Indonesia has maintained some of the holidays like on the new year’s day, Lunar new year, Prophet’s Ascension, Nyepi, and Good Friday too. The government has announced a holiday these days. Through the COVID-19 pandemic, the slower rate of the business is increasing in Indonesia too. After this situation, there is a hope that the Indonesian economy would increase its sales in terms of providing business opportunities to Woolworths Australia (Haugtvedt, et. al., 2018).
F) The current GDP, interest rate and inflation rate in that country
South Korea
- Current GDP: According to the reports the GDP of South Korea has stated $1.trillion in the year 2019 and now it is $2.308 trillion.
- Interest rate: South Korea is containing an interest rate of an average of 3.04 percent from the year 1999 till 2020. This rate has reached a height of 5.25 percent in October 2000.
- Inflation rate: In the year 2019 the inflation rate was 0.38 percent and now in the year 2020 it is remaining 0.27%.
Indonesia
- Current GDP: The GDP of Indonesia is almost reaching to 970.00 USD Billion within the end of the year 2020. According to the reports, the GDP of Indonesia could reach the amount of 1150.00 billion in the year of 2021.
- Interest rate: The average interest rate which is running in Indonesia is 6.89% from the year 2005 to 2020. It has become higher in the year of December 2005 and the rate was recorded at 12.5%.
- Inflation rate; At the present time, the inflation rate of Australia is remaining 2.87% and in the year of 2019 the inflation rate was 2.82% (Chen, et. al., 2018).
Conclusion
Based on the above study, it could be concluded that the better involvement of strategies and planning is required for the international enlargement of a particular business. The above report is related to the international business practices of Woolworths. It has explained about the consumer behavior and attributes related to South Korea and Indonesia in which the organization is thinking about the enlargement. The above report has also provided ideas about banking relationships between these countries. Also, the illustration regarding the whole GDP, Inflation rate, and interest rates has been made in the above report. The above document has also provided an idea regarding the transaction of funds between both countries.
References
Capuano, L., 2018. International energy outlook 2018 (IEO2018). US Energy Information Administration (EIA): Washington, DC, USA, 2018, p.21.
Chen, C.C., Chen, C.W. and Tung, Y.C., 2018. Exploring the consumer behavior of intention to purchase green products in belt and road countries: An empirical analysis. Sustainability, 10(3), p.854.
Cole, T.J. and Mori, H., 2018. Fifty years of child height and weight in Japan and South Korea: Contrasting secular trend patterns analyzed by SITAR. American Journal of Human Biology, 30(1), p.e23054.
Deng, P., Liu, Y., Gallagher, V.C. and Wu, X., 2018. International strategies of emerging market multinationals: A dynamic capabilities perspective. Journal of Management & Organization, pp.1-18.
Engel, L.C. and Siczek, M.M., 2018. A cross-national comparison of international strategies: global citizenship and the advancement of national competitiveness. Compare: A Journal of Comparative and International Education, 48(5), pp.749-767.
Haugtvedt, C.P., Herr, P.M. and Kardes, F.R. eds., 2018. Handbook of consumer psychology. Routledge.
Kompas, T., Pham, V.H. and Che, T.N., 2018. The effects of climate change on GDP by country and the global economic gains from complying with the Paris climate accord. Earth’s Future, 6(8), pp.1153-1173.
Naibaho, K. and Rahayu, S.M., 2018. Pengaruh GDP, Inflasi, BI Rate, Nilai Tukar Terhadap Non Performing Loan Bank Umum Konvensional Di Indonesia (Studi pada Bank Umum Konvensional yang Terdaftar di Bursa Efek Indonesia Periode 2012-2016). Jurnal Administrasi Bisnis, 62(2), pp.87-96.