Lush's Business Case Study

China has, for a sustained period of time, been one of Australia's most important trade and economic partners. But this has not always been the case. Since the late 1970s China has moved from a closed, internal focused economy to more of a global market oriented one that plays a major part in other nations economies, like Australia's. Although China is technically a Socialist nation, market capitalism is actively encouraged, much the same as in Australia. In 2010 China became the world's largest exporter, with exports ranging from natural resources to manufactured goods. (CIA-World fact book) Australia's economy, in this sense, differs from that of China's. As Australia is simply too expensive to manufacture goods ("Holden, Ford,

The EU and Australia end the negotiations for economic and trade cooperation supplying. Australia is the most important economic and trading partner for the EU, China and Japan. The EU and Australia are like-minded partners who share many common concerns in today’s global trade environment , for instance initiative for further rebel trade in green goods, trade in services, and others.

Being a major competitor in the worldwide chemicals industry Victoria Chemicals is trying to keep up with modern productions. Top managers of Victoria Chemicals are indecisive in

• Market and resource seeking: “this motivation was particularly strong for companies that had some intrinsic advantage, typically related to their technology and brand recognition, which gave them a competitive advantage in offshore markets” (Bartlett & Beamish, 2014).

Many Australian businesses are now outsourcing, or shifting their production or services offshore where there is cheap

Through export trade deals, Australia will be able to provide new business opportunities, for people in different industries.

The spread of globalisation especially since 1990 has introduced many new elements into the financial markets and what determines the value of a nation 's exchange rate. This does not just apply to Australia, but as we saw in the later half of the 1990 's, to many other nations in the world. Firstly, trade in goods and services makes up a much smaller proportion of the demand and supply for currency. In the world economy, payments for international trade only account for about 1% of foreign exchange transactions. The total foreign exchange requirements for exporting and importing of goods and services in Australia is less than 3% of the total use of the foreign exchange turnover in Australian dollars (Reserve Bank Bulletin, Table F7 and Australian National Accounts, 5206.0). The main purpose for foreign exchange trading is international financial transfers of

Australia’s political view has been recognized by other countries as a strong market leader and a valuable country to have free trade agreements with. All Australians can see that this is a huge benefit to the Australian economy. An increase in trade agreements means more jobs and security for the

Australia’s Position in the global exporting market is only 22nd, which is far from its leading top trade partners that fit in the Top 5. Also, Australia’s global ranking in the global importing market is 18th, which is under India whose economic status is much lower than Australia. A second disadvantage that Trading brings to Australia is the competition between local small businesses and Trans National Corporations (TNC). Local businesses are closing down and being taken over because of the increase in the entrance of TNCs in Australia. Large Fast food chain Corporations like McDonalds, put local fish and chips shops under pressure. Another disadvantage with Australia being part of International trading is that most of the products that Australia export are agricultural goods that has high tariffs, making it costly for Australia to be able to export.

With a GDP of over $1 trillion USD, the Australian economy is among the largest in the world (Cornett and Saunders, 2014). Australia is trading partners with the United States, China, and Japan, but their economic ties are mainly centered in the Pacific Rim. Exports are crucial to the country’s GDP and this has created problems regarding sustainability in the Australian economy.

Australia’s main trading partners are China, Japan, the United States, Republic of Korea and Singapore. Nearly half of Australia’s trade activity in terms of imports and exports are with these 5 countries alone. Particularly with the recent growth of the Chinese economy, Australia’s chief trading partner, the country has seen growth in its exports. However very recently the growth of the Chinese economy has been slowing which is a risk to Australian exports.

This report is on LUSH cosmetics – a sustainable brand in cosmetic industry. This report will

The second key national interest of Australia is the economy. Australia’s capital, jobs, standards of living, technological innovations and social advances rely substantially on exports and commodity values within Southeast Asia and the Pacific (Department of Foreign Affairs and Trade 2016a). The stability of South East Asia and the Oceania

The government glossy on the Department of Foreign Affairs & Trade (DFAT) website has information that implies the intent is to safeguard “Australian businesses that are competing in or seeking to enter the relevant market” “from unfair advantages from the governments that own them”

The purpose of this report is to investigate the brand, Lush, as an industry leader and delve into what essentially makes Lush successful, what are the internal strengths and weaknesses , the external opportunities and threats as well as a marketing strategy on how Lush is able to further their brand through the extensive promotion tools and techniques.