Tire Manufacture MGM336 IP2 Week 5

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Colorado Technical University **We aren't endorsed by this school
Course
MGM 366
Subject
Business
Date
Oct 18, 2023
Pages
10
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Australia Tire Manufacture Australia Tire Manufacture Brittany Shoff Colorado Technical University MGM336: Management in International Business Sheri Weber 10/01/2023 1 | P a g e
Australia Tire Manufacture Introduction The country the I chose for the tire manufacture is Australia. The reason I felt that this is the best place for the manufacture is because they have a fast-growing economy and a natural gateway for international business to flourish. Australia is a safe, stable, and prosperous country that makes is one of the easiest countries to do business in. Being in Australia also opens trade possibilities in the Asia-Pacific region giving us access to an abundance of resources. With their business-friendly environment make it the best area for the manufacture. Chairman As a business willing to operate in a foreign market they must have a market entry strategy planned whether it be a direct or indirect strategy. A direct strategy gives you the availability to access with the foreign market to where an indirect strategy you appoint a third- party agent to act as an intermediary to handle to business in your stead. Our first step into Australia is to research what types of structures are available for foreign businesses. As well as to understand what the business needs to do for setup of operations. All business registrations in Australia are handled by the Australian Securities and Investment Commission. This requires the " ASIC to strive to: maintain, facilitate, and improve the performance of the financial system and entities within it in the interests of commercial certainty, reducing business costs, and the efficiency and development of the economy. ( The ASIC - APRA Relationship , 2023)" Australia offers these business structures for entry: sole proprietorship, public companies, partnership, proprietary limited company, trust, acquiring an existing Australian company, and joint venture. For the mode of entry, I have decided on is a sole proprietorship. Sole proprietorship is the most common business entry in Australia. As a sole proprietor you are the one that is solely responsible for the business. This is one of the simplest and less expensive strategy. The 2 | P a g e
Australia Tire Manufacture advantages of a sole proprietor are easy setup and discontinue, easy to operate, minutest reporting, and the tax structure is simple. The disadvantages unlimited liability for debt and negligence, hard to transfer ownership and hard to rise funds. This will be the best mode of entry for the tire manufacture. One of the most challenging things for a leader is trying to incorporate everyone's opinions into account. This is why as a business venturing to operate in a different country it is a good idea to understand what kind of leadership style will work there. As we open a tire manufacturer in Australia, we will need to consider that they are used to a democratic leadership style. In hindsight a democracy style means its run by the people and helps make room for multiple people to participate or collaborate in the decision-making process. With a democratic leadership style there are some advantages such as having a wide range of ideas, more of a complex problem solving, and an increase in job satisfaction. Some of the disadvantages are the decision-making process is slow, a challenge with rejection and so expertise may not be considered. With this type of style, it requires team participation and collaboration during any decision-making process. A good leader will actively encourage each member of the ream to come up with creative and innovative ideas or solutions to which they will take in the suggestions. With a democratic style this gives everyone apart of the team the opportunity to exchange ideas openly and are encouraged to make discussions. Although this focuses on a smooth flowing source of ideas and equality among the team, the manager/leader is in place to help guide and maintain control. The manger/leader also decides on who they want on their team and which member can help in the decision-making process. Democratic leadership is more effective that leads to a higher productivity and the morale within the group is higher. 3 | P a g e
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