Table of Contents Operations2 Hofstede’s Dimensions3 Geography4 Social Class4 Ethnicities5 Legal System6 Starting a Business6 Economic System7 Economic Comparison Table8 Works Cited10 [pic] Pizza Hut in Australia Operations As we sitting down to dinner eating pizza from Pizza Hut and watching television, we see an ad for Australia and there eating habits. We wonder if Pizza Hut operates in Australia.
Indeed, we found out that Pizza Hut is a successful franchise in Australia and counts “around 325 stores” (Our Story, 2008)In order to understand Pizza Hut’s success story in Australia, we are going to compare how Pizza Hut operates in Australia compare to the United States. We will decide evaluate which country is better for Pizza-Hut’s business. The first Pizza Hut was implemented in 1958, in Wichita, Kansas and was soon after developed into a growing pizza franchise (Our Story, 2008). Pizza Hut is a food and service provider and is mainly a take-out service in Australia with a few places where an indoor dinning service is provided.
Most of the items on the menu are similar in both countries. Australia also has a few specialties made of different types of meat such as “mildly smoked kransky” which is a smoked, spicy and juicy sausage made to the authentic Dutch recipe with cheese (Pizza Hut Australia). Australian also likes to replace tomato sauce with BBQ sauce on their pizza (Pizza Hut Australia). Since Pizza is in the food industries, they do not serve to any other country besides their own. Pizza Huts premier target market in the United States and in Australia are students, families and Wi-Fi lovers.
The company was able to attract families by introducing pasta in the menu. The Pizza Mia which is a large portions of pasta and only cost five dollars when you buy three or more of them” (Pizza Hut targets families in Pizza Mia launch, 2008). Paying a low price and getting enough to feed a family or a room filled with students are what made Pizza Hut so successful all around the world. Hofstede’s Dimensions Under Hofstede’s dimensions, the United States and Australia landed the top two spots, the US with 91 and Australia scoring 90 (itim International, 1967-2009).
This means that society in both countries tend to look out for themselves and then for their families. The next highest score is in masculinity where again the United States was up by one point with 62 and Australia with 61. Masculinity refers to the male gender as the dominant character type and shows little caress. Australia overtook the United States in the Uncertainty Avoidance Risk dimension. Australia barely made it with a score of 51 and the US was lower scoring a 46. The last two of Hofstede’s dimensions for both the United States and Australia fall under 50.
The United States scored a 40 for Power Distance and Australia scored a 36. On long-term Orientation the United States scored 29 with Australia a little higher at 31. Geography In geography, the United States and Australia differ slightly, the US is the world’s third-largest country by size and Australia is the sixth largest country but is the world’s smallest continent. The US is 1,890,000Km2 larger than Australia with 3% more water, about 13% more land in development and 4% more of forests. Australia has 29% more wild pastures than the United States (Students of the World, 2006).
The United States highest point is approximately 6,194 m at Mt McKinley where Australia’s is 2,228 m at Mt Kosciusko. Huge differences between the two countries are the seasonal months, for example when it winter in the United States it is summer in Australia and when it is spring in the United States it is fall in Australia. In the United States it is typically moderate but varies from different parts; tropical in the south, dry in the Great Plains and Great Basin and, chilly in the Northwest during winter months. In Australia it is normally dry in the South and East and tropical in the North.
The United States and Australia have a lot of familiar natural resources including bauxite, coal, gold, silver, nickel, tungsten, zinc, natural gas and petroleum. Each country has other natural resources but these are the ones they have in common. When it comes to age structure there is very little difference. In the US about 20% of the population is under 14 years old, 67% between 15-64 years old and 13% older than 65 years old and Australia the same age groups the percentages are approximately 19%, 68% and 13%. Both countries have a median age for men and women at 37 years old.
Life expectancy in the US is about 78, and in Australia it is 81 years old. Social Class The social stratification of Australia is similar to the one in the United States. The majority of the population would describe themselves as middle class. Indeed, the working class has changed a lot over the past 50 years. In 2003, over 65% of the workforce was employed in white-collar jobs such as teachers, nurses, bank tellers or public servants. In contrast, Blue-collar occupations represented over half of the workforce in 1947; they are now estimated to represent less than one-third of it.
The reason for this drastic change may be attributed to the decline in the manufacturing industry. In 1966, over 26% of working-people worked in manufacturing, by 2002 it had reduced to 12% Ethnicities Ethnicities between the two countries differ quite a bit. In the United States, approximately 80% is white, 13% black, 5% Asian, 1% Native American or Hawaiian decent, and 1% of two or more races and of the total population 15% are Hispanic (Students of the World, 2008). In Australia people consist of approximately 92% white, 7% Asian and 1% Aboriginals and others (Students of the World, 2008).
In both the United States and Australia the main language is English. The United States and Australia have a political system of a government that protects the thought of indirect democracy and are based on values of political parity and protecting minority rights. The United States is the oldest continuous democracy in the world today and focuses on individual freedom. They are similar in many ways starting with the fact that they are both Federal systems. Both are consisted up of parliament made of two houses, a House of Representatives and a Senate.
The United States and Australia have a Senate that represents the States in the same way except there are two senators per state in the US, and twelve per state in Australia, but both countries serve 6 year terms (AustralianPolitics. com, 1995-2008). The US has a Supreme Court and Australia has a High Court which understands the constitution and performs as a last court of appeals. Some of the differences between the United States and Australia are that the United States is Republic and Australia is Parliamentary.
Members in the House of Representatives in the US serve 2 years but in Australia they serve 3 years (AustralianPolitics. com, 1995-2008). Finally the electoral voting in the US is voluntary but required in Australia. Currently our President is Barack Obama and in Australia the Prime Minister is Kevin Rudd. Legal System The Legal Systems between the two countries are very similar but differ slightly. They are similar in that they both are based on the English common law. The states in the US each have unique legal systems and the US has not accepted the compulsory ICJ jurisdiction.
In Australia their only difference is they do accept the compulsory International Court of Justice (ICJ) jurisdiction with reservations (Students of the World, 2008). Starting a Business To start a business in these two countries is completely different. In the United States there are six steps to take. First, one would have to file an article of organization for the company and adopt the operating agreement with a cost of $275. For faster service one can pay an additional fee of $150 to be done in 2 hours, $75 for same-day service or $50 for 24-hours.
Next apply for a federal identification number for taxes with no charge. Register to collect State sales tax at no charge. Also register as an employer with the Unemployment Insurance division of the state Department of Labor and arrange for workers compensation disability insurance. None of these cost a fee to do. Finally, arrange for publication and submit certification and affidavits of publication that costs $50 (Doing Business, 2009). In Australia the only two steps to start a business is to fill out the form ASIC form 201 to register the company as an Australian company.
This cost AUD 400 in USD that is approximately $292. Finally, register for ABN with the Australian Taxation Office at no fee (Doing Business, 2009). The country that is more favorable to start a business in would be the United States. It might cost a little more and have more steps to take to get started but the US has more freedom to do what is needed to make the decisions for the company where in Australia people don’t have total say so over the company and what they want to do with it. Economic System Australia is a capitalism country where supply and demand are etermined by a free market. This country is among the five first developed countries of the world (GNI superior to 9,000) thanks to an extraordinary growth of development in the last decades. The economic system relies on four main components which are trade, manufacturing, services and finance (Economic System Australia. ) Australia is known worldwide for its mining and chemicals industries as well as its transportation goods, and food processing. Recently, the Information and Communications Technology has boomed thanks to the high-tech and social improvements.
There are now about twenty-five thousand IT companies implemented and contributing to the import-export business and the insurance field (Australia’s biggest 10 companies. ) Economic Comparison Table Economic Indicators in 2007-2008 | |AUSTRALIA |UNITED STATES |ADVANTAGE | |GDP* per capital |36,918 |47,440 |US | |GDP growth |2. |2 |Australia | |GNI* per capital |35,960 |46,040 |US | |Inflation rate |2 |2 | | |Unemployment rate |5. 8 |9. 7 |Australia | |PPP* |1. 468 |1. 00 |Australia | |HDI* |0. 962 |0. 950 |Australia | Sources: Australian Bureau of Statistics, Bureau of Labor Statistics, GNI per capital *Gross domestic product (GDP) *Gross national Index (GNI) *Purchasing Power Parity (PPP) *Human development Index (HDI) According to the set of data above, Australia has a better GDP growth than that of the United States. However, their GDP per capital is about ten thousand lower than the US.
The unemployment rate in the US is almost double compare to Australia. Finally, Purchasing Power Parity (PPP) is half higher in Australia, and the HDI is a little bit more developed. Australia seems to be a better country to start a Pizza Hut; however, the US is more competitive thanks to a higher GPD and GNI per capital. Those two economic indicators put together explain why Pizza Hut is more successful and profitable in the US. One could make the hypothesis that since the unemployment rate is lower in Australia, companies may find it harder to find labor.
Job penury is not as omnipresent compared to the US therefore, an Australian may choose other jobs over the one supplied from Pizza Hut. Works Cited (2009, september 10). Retrieved from Australian Bureau of Statistics: http://www. abs. gov. au/AUSSTATS/[email protected] nsf/mf/6202. 0 AustralianPolitics. com. (1995-2008). Retrieved 10 2, 2009, from AustralianPolitics. com: http://www. australianpolitics. com/usa/australia/ Doing Business. (2009). Retrieved 10 1, 2009, from Doing Business: http://www. doingbusiness. org/ExploreTopics/StartingBusiness/Details. aspx? conomyid=197 Doing Business. (2009). Retrieved 10 1, 2009, from Doing Business: http://www. doingbusiness. org/exploreTopics/StartingBusiness/Details. aspx? economyid=12 itim International. (1967-2009). Retrieved 9 27, 2009, from Geert Hofstede Cultural Dimensions: http://www. geert-hofstede. com/hofstede_united_states. shtml itim International. (1967-2009). Retrieved 9 27, 2009, from Geert Hofstede Cultural Dimensions: http://www. geert-hofstede. com/hofstede_australia. shtml Our Story. (2008). Retrieved 10 2, 2009, from Pizza Hut: http://www. pizzahut. om. au/about_us/our_story Pizza Hut Australia. (n. d. ). Retrieved 10 2, 2009, from Australian Exporters: http://www. australianexporters. net/companyID5211. htm Pizza Hut targets families in Pizza Mia launch. (2008, 6 22). Retrieved 10 2, 2009, from Marketing Site: http://www. marketingmag. com. au/news/view/pizza-hut-targets-families-in-pizza-mia-launch-1349# Students of the World. (2006, 10 10). Retrieved 9 27, 2009, from Students of the World: http://www. studentsoftheworld. info/country_information. php? Pays=USA Students of the World. (2006, 10 10).
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