External Factors

Demographic

Australia is known as a dynamic country and embraces all types of ethnic

backgrounds. Australians can boast of their rich cultural background which comprises
of over 240 ancestries. Thanks to the heavy migration factor, one in every four
Australian were not born in Australia. 46% of Australians say that one of their parents
was born overseas.

Population growth in Australia is largely attributed to overseas migration. 60% of the

county's population growth was due to this factor in 2013. People from U.K
contributed to 5.3% of the migrant population into the country, New Zealand took the
second spot with 2.6% followed by China with 1.8%, India and Vietnam contributed
to 1.6% and 0.9% migrant population growth respectively. (Statistics, 2012) In 2013-
14 transfer window, Australia gave citizenship to 163, 017 people coming from 190
different countries.

A study conducted in 2011 showed that 82% of the overseas-born citizens preferred to
live in the cities compared to 66% of Australia's native population. (Statistics, 2012)
Overseas-born migrants preferred living in Australian cities due to factors such as
cultural diversity, economic factors, high employment rates, social interaction, the
point of interaction and visa. (Statistics, 2012)

With a large number of migrants from overseas preferring to live in cities, the
likelihood of one living in the city has reduced. Prior to 1992, 85% of Australians
could comfortably live in the city but this percentage has reduced significantly to
79%. Sydney, Melbourne, and Perth had the largest number of overseas-born citizens
residents compared to lesser known towns that had 14% residents from overseas.
(Statistics, 2012)

Studies conducted in 2011, showed that Australian had a near mirror sex ratio. For
every 98 males, there are 100 females which when rounded of makes 1:1 sex ratio.
(Statistics, 2012)

Over 81% of Australia's population use the English language in their homes and only
2% do not speak English in their homes. (Australian Bureau of Statistics, 2012)
Statistics for the non-English speaking families showed that Mandarin was the most
common with 1.7%, followed closely by Italian 1.5%, then Arabic 1.4%, Greek and
Cantonese tying at 1.3%. 67% of new arrivals speak English and it reflects in the
countries social-economical settings. (Australian Bureau of Statistics, 2012)

Australia's inland is considered a desert and could be contributing to the heavy coastal
population. The southeast and east coast are the preferred settlements for the
Australian population. The Australian population grew by 1.5% as of September 2016.
(Australian Bureau of Statistics, 2016)

Environmental

Human activity has largely contributed to environmental degradation in Australia

through the clearing of natural vegetation which has affected the river system, marine,
coastal vegetation, lagoons and water catchment areas. Environmental impact is
mainly due to urbanization and the establishment of settlements. The consequences of
environmental can be further investigated through

1. Australia river system

Heavy natural vegetation has affected the country's river system. Forests are
considered as water catchment areas and with lower forest cover the country has a
lower river flow. Low level of river flows is contributing to higher salt saturation in
the water and it is affecting oxygen levels in water bodies where the rivers end, which
has potential affects the quality of our water source for production. ( Tisdell C, 2017)
This can be overcome by deploying multiple layers salt-water filter on production
process.

2. Marine problems
Heavy settlement along Australia's coastline is also contributing to marine problems.
Marine life and humans are having to compete for resources and they are threatening
the existence of marine life. More waste is getting dumped into the ocean and this
affects water bodies and contributes to the destruction of food sources for marine life.
(Tisdell C, 2017) It is advisable to set up production plan far away from rivers and
coastline to avoid disturbing marine ecosystem.

Economy:
Australia has a great unemployment rate of 5.9% ( Australian Bureau of Statistics,
2017) and a poor savings rate of 5.2%. (Australian Bureau of Statistics, 2017) Poor
savings could be attributed to high spending and access to credit facilities. On average
each household has a debt percentage of 185%. (Finder, 2017) The country has one of
the best economic growth rate and an inflation rate of 1.5%. ( Australian Bureau of
Statistics, 2017) Taxation rates are designed to suit the low-income earners and
heavier percentage to high-income earners. The country has recorded a GDP of 2.6%
and is currently trading against the USD at 0.76 exchange rate. ( Reserve Bank of
Australia, 2017)

Socio-cultural:

Despite coming from different socio-cultural backgrounds, Australians are proud of

their heritage. Australians avoid racial references when interacting with people from
different ethnicities. You can have courteous communication by referring to others as
mate. Thanks to the different cultural heritage backgrounds, Australians tend to
socialize a lot with their colleague.(Kimmorley, 2017) This may be potential
opportunity for Arnott, where we can specialize our product for social event such as
tea or coffee time. Australians are hard-workers. Rather than refusing, a majority of
the people will take on more work even though they are not free. (Kimmorley, 2017)
This often result to late working hours, workers experience fatigue and stress. A new
branch of product that provide high nutrition for late-hours workers to help stay focus
and feel refresh can be a new opportunity for Arnott.

Technological
New technology such as 3D printing creates new kind of food production, which is
more efficient than tradition method. Instead of the traditional ink-based printing, 3D
printers deposit printing medium as layers. The printing medium solidifies after the
printing nozzle ejects the material. Melted plastic is used as a printing medium and
has transformed the printing scene. 3D printers receive printing instructions from
computers and are now used in different modern applications. (Crampton, 2017)
Food material can be used in 3D printers and is aimed towards improving the food
preparation. Food 3D printing allows us to have fully control of flavor and nutrition in
food. (Mahony, 2016) Thus we have the ability to produce unique flavors and right
balance of proteins, carbohydrates, omega 3 or fats for consumers. Furthermore, this
technology does not require multiple processes to have a final product. Biscuit can be
printed from the ground up to finish in one place thank to printing the biscuit from
chocolate, eggs, flour, sugar...as a form of ink. As a result, we can skip several
processes, reduce wastes and space.

References:

Australian Bureau of Statistics 2012. Year Book Australia, 2012, viewed 19 April
2017, < http://www.abs.gov.au/ausstats/abs@.nsf/Lookup/by
%20Subject/1301.0~2012~Main%20Features~Geographic%20distribution
%20of%20the%20population~49>.
Australian Bureau of Statistics 2012, Reflecting a Nation: Stories from the 2011
Census, 20122013, viewed 19 April 2017, <
http://www.abs.gov.au/ausstats/abs@.nsf/Lookup/2071.0main+features9020
12-2013>.
Australian Bureau of Statistics 2016, Australian Demographic Statistics, Sep 2016.
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http://www.abs.gov.au/ausstats/abs@.nsf/0/BCDDE4F49C8A3D1ECA257B
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Australian Bureau of Statistics 2017, Key Economic Indicators, 2017,

viewed 19 April 2017, <
http://www.abs.gov.au/ausstats/abs@.nsf/mf/1345.0>.

Cameron et al 2003, Overweight and obesity in Australia: the 19992000

Australian Diabetes, Obesity and Lifestyle Study (AusDiab), viewed 19 April
2017, <https://www.mja.com.au/journal/2003/178/9/overweight-and-
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referer=www.clickfind.com.au>.

Crampton L 2017. 3D Printers for Food: Technology and Applications.

viewed 19 April 2017, < https://turbofuture.com/consumer-electronics/3D-
Printers-For-Food-Technology-and-Applications>.

Finder 2017, Australias personal debt reported as highest in the world,

viewed 19 April 2017, < https://www.finder.com.au/australias-personal-debt-
reported-as-highest-in-the-world>.

Kimmorley S 2017, 24 things expats find surprising about Australian

working culture, viewed 19 April 2017, <
https://www.businessinsider.com.au/24-things-expats-find-suprising-about-
australian-working-culture-2017-1>.

Mahony R 2016. 3D Printing As A Solution To Global Food Crises. viewed

19 April 2017, < https://3dprinting.com/food/3d-printing-as-a-solution-to-
global-food-crises/>.

Reserve Bank of Australia 2017. Australian Economy Snapshot, Reserve

Bank of Australia, viewed 19 April 2017, <
http://www.rba.gov.au/snapshots/economy-snapshot/>.

Trading Economics 2017. Australia | Economic Indicators, Trading

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http://www.tradingeconomics.com/australia/indicators>.

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April 2017,
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