A PESTEL Analysis on the Australian Nuts Company

Australian Nuts Company is a family-owned established since 1987. This concern is dedicated to sourcing, fabrication and providing the highest quality Nuts, Nut Spreads and Dried Fruit and assorted with different spirits, olfactory properties, gustatory sensations and textures. The company is characterized for the high quality criterions, advanced culinary thoughts and back up local Australian Farmers. The client value of the company is compromise each other to our day-to-day operations from telling to bringing and personalized touch for an model degree of service to the consumers.

The company have many of import rivals and the current place of the company is regulated by the Australian Nut Industry who standardizes monetary values and merchandise quality, advancing a healthy competition among companies.

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Australian Nuts Company is located in Melbourne – Australia with three shops in different suburbs. The caput office is located in Albion suburb ( Melbourne – Australia ) . The production works is located in Victoria – Australia and in different states around the universe in stallss climate zones depend of the type of nut produced when warrant that the merchandise has been produced with high criterions of quality.

In the undermentioned two images is showed where precisely is China.


Picture 2

Picture 3 ( China’s flag )

China Flag


Is necessary to see which and how is the politic system inside the state when any company or any individual want to make a concern in this mentioned state. For the instance of China even more due to is necessary to see the possibility of nationalisation of industries, in fact this happen in China in 1949. ( Political Hazard. 2015 ) Besides is necessary to see factors such as expropriation, arrogation, contract renunciation and currency inconvertibility. Furthermore, in China are likely scenarios to see such as rampant rising prices and currency devaluation. There are besides hazards to company’s employees of personal injury, and hazard to the house of extortion efforts.

There is besides some things to bear in head, this is that in China sometimes is hard to the companies which operates in China or want to run over at that place, due to sometimes is difficult to cognize precisely what the regulations are, this nastily because over there in China ever exist a conflict between the country’s cardinal authorities and the local and provincial authoritiess over applicable jurisprudence, and non-observance or observation of it. Even in China this is good known by the Chinese, which says that “The mountains are high and the Emperor is far away”


An of import proclamation was done in 2014, which say that the nut industry likely will hold a free trade understanding with China, which will see monetary values on Australian nuts bead to zero within the following five old ages. ( Australian nut industry hopeful free trade understanding with China would extinguish all duties, peculiarly on walnuts, Prunus dulciss and macadamias – ABC Rural ( Australian Broadcasting Corporation ) . 2015 ) This proclamation is chiefly due to a existent and ill-famed increase of demand of nuts in China which are demonstrated in the undermentioned statements:

Actually Australia is selling to China around $ 64 million dollars per twelvemonth. Currently tariffs on the three biggest Sellerss, which are walnuts, Prunus dulciss and macadamias, sit at about 25 per cent.

Thee really Australian Nut Industry Council manager, Chris Joyce, says the industry ‘s hopes for export growing are siting on duties being abolished.  We expect Australian exports to lift from the current $ 600 million to over a billion dollars by the twelvemonth 2020. “To do that we need more markets. China is the 2nd largest market in the universe for tree nuts, after USA. The Chinese market is the market that it ‘s spread outing. That ‘s the market we want to entree. “ This extroverted trade trade is really of import, more for the hereafter than it is today. The Australian nut industry is puting 1000000s of dollars to increase production. Walnut agriculturists are no exclusion. Walnuts Australia, owned by Tasmanian company Webster, produces more than 90 per cent of the state ‘s harvest. The current FTA that ‘s being negotiated proposes that all duties on all nuts cut down to zero over five old ages. That ‘s what I understand is being discussed at this clip. ”

Meanwhile, Mr Joyce says the seed has already been sown for the nut industry ‘s future enlargement. “The trees are in the land. You know that nut harvests are coming good in progress of them really being at that place, because it takes five to eight old ages to come in full production. “ There ‘s a batch of walnut trees in the land, a batch of Prunus dulcis and macadamia trees in the land, ” he said. He ‘s hopeful a China Australia free trade understanding could finally see all duties on Australian nut imports abolished. “ I would be confident that we would see the entire riddance of duty on Australian nuts traveling into China over a sensible period of clip. I think something like five old ages would be a good consequence. ” The riddance of duties would set Australia on a flat playing field with rival Chile and may let Australian nut exporters to interrupt the chokehold the US, the universe ‘s largest manufacturers of walnuts, Prunus dulciss and Pistacia veras, has on the Chinese market.

How is showed in the statements above, China shows a truly attractive market to the nuts and its selling over at that place, and to boot China is really the 2nd strong economic system in the universe after United States of America. ( Australian Broadcasting Corporation ) . 2015 )

The Gross Domestic Product ( GDP ) in China was deserving 9240.27 billion US dollars in 2013. The GDP value of China represents 14.90 per centum of the universe economic system. GDP in China averaged 1252.79 USD Billion from 1960 until 2013, making an all clip high of 9240.27 USD Billion in 2013 and a record depression of 46.50 USD Billion in 1962. ( China GDP. 2015 ) .

The undermentioned chart shows how China’s GDP is increasing twelvemonth by twelvemonth.

Graph 1.

C:UserseduardoDesktopFederationInternational Marketing ask 2imagenes task 2china-gdp.png


Actually China is a truly big state, its traditions and imposts vary significantly by ethnicity and geographics. Presents there are more than 1 billion people, which represent 56 cultural minority groups. However the largest group is the Han Chinese, with around 900 million people. Other of import groups include the Manchus, the Tibetans, the Naxi, the Mongols, and the Hezhen, which represent the smallest group, with merely 2,000 people approx.

However Chinese and its rice is non merely its major nutrient beginning ; rice for Chinese besides meant a large aid of turning their society, due to rice is portion of Chinese civilization. However there are besides some nutrient truly present in the Chinese diet, which are besides chicken and porc. ( Chinese Culture, 2015 )

The Macadamia Processing Company ‘s supply concatenation director, Kevin Quinlan, says it ‘s portion of their civilization. The Chinese civilization is really much about eating nuts, and particularly nut-in-shell, and as their richness has grown their demand for all nut harvests has increased every bit good, ” he said.  They ‘re used to checking nuts by manus – Prunus dulciss, Pistacia veras, and pecans – that all the shells have some kind of interruption in them and they crack them unfastened. ( Is China ‘s love for our native nut a production menace or selling chance for Australian macadamia agriculturists? – ABC Rural ( Australian Broadcasting Corporation ) . 2015. )


China is chiefly organized along unitary rules and non Federals. Both the authorities and the Chinese Communist Party ( CCP ; Pinyin: Zhongguo Gongchan Dang ; Wade-Giles romanization: Chung-kuo Kung-ch’an Tang ) , furthermore, operate “from the top down, ” claiming to the “Centre” all powers that are non explicitly delegated to lower degrees. To run the state, the authorities and the CCP have established approximately parallel national bureaucratisms widening from Beijing down to local degrees. These bureaucratisms are assisted by assorted “mass organizations”—e.g. , trade brotherhoods, a young person conference, women’s associations, and writers’ and other professional associations—that encompass cardinal sectors of the population. These organisations, with their highly big ranks, have by and large served as transmittal lines for pass oning and uniformly implementing policies impacting their members. No voluntary associations are permitted to work that are entirely independent of CCP and authorities leading. ( China | history, 2015 )


In 2012 China’s entire disbursement on research and development was one trillion kwai ( $ 164 billion ) , merely under 2 % of its gross domestic merchandise. The same twelvemonth, the U.S. spent $ 447 billion, or 2.8 % of its GDP. But as China’s economic system continues to turn quickly, so does its R & A ; D disbursement — and it’s projected to catch that of the United States by 2022. Scientific advances contributed 51.7 % to China’s economic growing in 2011, and the state is wagering that proficient inventions can assist it address many challenges, including the demand to upgrade its industrial base, cut down air pollution and reference turning inequality. ( China’s rise as a major subscriber to science and engineering. 2015 )

The Chinese authorities unveiled its “indigenous innovation” run in 2006, with a end of turning the state into a “science powerhouse” by 2020 through an accent on human capital. Approximately 7 million Chinese citizens will graduate from college in 2014, up from merely 1.1 million in 2001, and the state wants to entice back Chinese-origin scientists working abroad. China’s increasing figure of faculty members have pushed China up in planetary rankings of published scientific discipline and technology documents: The state was 14th in 1995 and by 2007 was 2nd merely to the United States. ( China’s rise as a major subscriber to science and engineering. 2015 )

Environmetal factors:

Government takes serious affair particularly in protection of the environment, where they impose a batch of ordinances and Torahs to protect, control and bar of pollution and besides an improving of urban environment. The authorities besides is lending with a of import figure of NGO’s to seek to keep in good conditions the nature.


The legal representative of a company gets to do determinations.

If a Chinese joint venture spouse hires the legal rep, says Harris, it doesn’t affair whether you have the bulk interest, or if you’re on the board. The legal rep still has the power. “Your Chinese spouse can travel to the bank and take out $ 2 million without your say, ” he adds.

There is no such thing as an independent contractor in China

“I had a company of 15 people who signed a contract to develop an app for three old ages, ” says Harris. “Then when the app was developed the Chinese refused to pay and state them to acquire out.”

The bulk stockholder of a house has to hold been at the company for three old ages before an IPO can be made

It has occurred before when Chinese companies were approximately to originate an IPO when the bulk stockholder has died, intending that the move has to be sent back to the pulling board. “China doesn’t like these super-fast IPOs like the U.S. does, ” adds Harris.

A U.S. tribunal opinion holds no truck in China

“Sometimes Americans will contend Chinese to hold a difference settled in a U.S. tribunal, so the Chinese will conflict them, seting up the semblance they care, ” says Harris. “Then the American tribunal will prefer the American company. But a U.S. tribunal opinion has no legal power in China whatsoever.”

Do non end employees as if you are in the U.S.

In the States a company can engage and fire at will, frequently for no ground at all without offending favoritism Torahs. In China an employee may be fired without notice or rupture wage merely if he or she has badly violated company regulations ; engaged in delinquency of responsibility or corruptness that dents the employer ; made concern ties with another company ; or is confronting condemnable probes. Other grounds, which carry notice and rupture, include an inability to execute following a statutory intervention period, and incompetency non remedied by resettlement or preparation ( which Harris extremely recommends non to follow ) . Open firing 20 employees, or more than 10 % of the work force, carries extra judicial admissions. “Americans are used to merely firing people, ” says Harris. “It doesn’t work that manner in China.”


Strengths Failings
  • High client satisfaction
  • Capacity of production
  • Build long-run relationships with clients and providers
  • 100 % environmentally friendly
  • High hygienic criterions
  • Price really competitory
  • Modern roasting techniques
  • Managerial Committedness
  • Oil/dry/flavour roasting techniques
  • Natural natural stuffs
  • Different and advanced spirits
  • Fresh merchandises
  • Teamwork
  • High Market Competition
  • High production cost
  • Lack of experience in local and international Markets
  • Absence of repute
  • High hazard of client alteration opposition
Opportunities Menaces
  • Faster Market Turning
  • The best nutritionary value
  • Higher Quality
  • Competitors’ exposures with some benefits of the merchandise.
  • Modern and attractive packaging
  • Interest and demand for Australian nuts.
  • Supply a clean and green environment
  • Establish a new option to better the life style with more assortments of nuts
  • Give the clients a assurance in nutrient safety and ingredients.
  • Customer Allergies
  • Barriers of trade
  • High sell monetary values for importing goods in China
  • production costs in the place state


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  5. Is China ‘s love for our native nut a production menace or selling chance for Australian macadamia agriculturists? – ABC Rural ( Australian Broadcasting Corporation ) . 2015.Is China ‘s love for our native nut a production menace or selling chance for Australian macadamia agriculturists? – ABC Rural ( Australian Broadcasting Corporation ) . [ ONLINE ] Available at: hypertext transfer protocol: //www.abc.net.au/news/2014-10-24/cracking-nuts-in-china/5834734. [ Accessed 10 May 2015 ] .
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  9. hypertext transfer protocol: //www.royalnutcompany.com.au/about-us/about-us
  10. hypertext transfer protocol: //www.austrade.gov.au/export/export-markets/countries/china/industries/Food-and-beverage # .VUiNuZWJgtp
  11. hypertext transfer protocol: //www.austnuts.com.au/industry.html

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A PESTEL Analysis on the Australian Nuts Company. (2017, Jul 21). Retrieved from https://graduateway.com/a-pestel-analysis-on-the-australian-nuts-company/