Essays on Business Environment Analysis of Centaurus Metals - Expanding into Malaysia Case Study

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The paper "Business Environment Analysis of Centaurus Metals - Expanding into Malaysia" is a great example of a management case study.   Centaurus Metals is an Australian firm listed in the ASX that is hypothetically expanding into Malaysia. The firm is involved in exploring, mining and processing iron ores in various countries. The firm has based its operations in iron ore-rich regions with the marketing of the products poised to go multinational. Expansion plans by the company target mineral endowed countries and fast-developing economies that require large amounts of iron and steel for construction and infrastructure development.

Malaysia is one of the fastest-growing economies in Asia that promises a huge market for the iron and steel industry. Centaurus Metals plans to export already processed steel and iron to Malaysia. The firm's operations are geographically limited by the availability of mineral resources in given countries. As such, the firm will only export processed products to Malaysia. Centaurus Metals aims at being a leading iron marketer in the world providing a platform for investors to earn returns on their investment. Its foreign presence is adequately represented with a combination of local experts and Australian expatriates.

The same is possible in Malaysia. 2.0 Political Environment 2.1 Government stability Malaysia follows a constitutional monarchy government system. The state is headed by a largely ceremonial king elected from and by the nine hereditary rulers of the nine Malay states. The elections are held every five years. Each state has a legislative assembly headed by a chief minister. Although the country has 13 states, only nine are involved in choosing the king with the others headed by titular governors. The government is headed by a prime minister elected by the senate.

Parliamentary elections for House of Representatives are held after every three years with registered voters over 21 years eligible for voting. The current prime minister elected in 2009 is Najib Razak (Austrade 2011). 2.2 Government and contribution The New Economic Model for Malaysia paper, published by the National Economic Advisory Council in December 2010 outlines the governments' plans in transforming the country from a middle-income country to a high-income country targeted at US$ 15 000 per capita by 2015 (Ibrahim 2008). The government has maintained a peaceful coexistence with its neighbours.

The government is also responsible for negotiating and entering into bilateral and multilateral trade agreements with other countries. The government also develops and enforces economic policies aimed at creating an enabling economic environment. For instance, the $25 billion stimulus package of 2009 was partially aimed at financing private investors to stir economic growth (Ibrahim 2008). 2.3 Analysis The government manages interest and inflation rates that affect national economic performance. This also influences aggregate demand that affects the industry at large and the individual market players.

The recovery of the economy after the global recession can be greatly attributed to the government’ s role through economic stimulus programmes. 3.0 Legal Environment 3.1 Regulatory framework Various government agencies streamline given industries The government promotes foreign investors in specific industries through tax exemptions. Local industries are protected by taxes on imports. The government has placed controls on certain products and services to protect consumers.

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