Legal Aspects and International Business and Enterprise

Question: Discuss about theLegal Aspects and International Business and Enterprise. Answer: Multinational Company Operating in Australia Nestle Australia is a corporation that has specialized in manufacturing and marketing a variety of food and beverage products. Nestle Australia Companys mission "Good Food, Good Life shows that it intends to ensure that its consumers eat sweet, most nutritious and have wide options for a variety of beverage and food to choose. Nestle portfolio covers a lot of beverages and classes of food providing clients with good taste and improved products that bring joy at every eating time and during the steps of life. Most Nestl's well-known brands are Nespresso, Nescafe, Milo, Toll House, Coffee-mate, Kitkat, Purina Friskies, and Maggi, among others. Nestle Australia products include infant foods, processed milk, coffee, nutritional healthcare products, chocolate, culinary products, nutritional snacks, pet foods and accessories among others. It also provides a wide range of assortment of noodles in different essence, frozen food products, dairy milk products, and espressos. Additionally, it p rovides an assortment of hot and cold beverages, light desserts together with a range of confectionery store, bakery item as well as pastry kit. Nestle has been performing remarkably well in the global business segment in pulling in consumers. Currently, Nestle Australia offers catering services in the direction of eateries, bistros, clubs and lodgings. Moreover, it provides pets nourishments, such as Purina. On the other hand, Nestle Company also exports its products to different nations. Nestle Australia Ltd Company was founded in 1908 and its headquarter is in Rhodes in Australia (Bloomberg.Com, 2016). It runs factories, offices, and distribution centers in Australia, Pacific Islands, and New Zealand. Additionally, people believe that Nestle as an international company dealing in food and beverage has a duty towards satisfying clients. The company has also taken an interest in the Oceanias culture, which is known by its assortments and variety of monetary circumstances, flavors, and cultures. Nestle Oceania became a crucial division in the grouping where the company activated it as a business as well as a dealer in the direction of the neighborhood. On the other hand, the company believes that their customers must live a healthy style by participating in sports activities; hence, they support many games occasions and have continued to guide individuals in the direction of being active. Other than that, they are the pioneers in identifying many issues such as peoples health and ecological safeguards (Nestle.com, 2012). Besides, Nestle in collaboration with Australia Institute of Sports is making the young people be familiar with various sports and the Nestl's diets (Bloomberg.Com, 2016). In 2008, Nestle became number one globally due to its international standings, strategic location in Sydney, higher competent employees, and the superb company's approach. It happened despite the hard-hitting economic situations by that period. Currently, Nestle company has over 490 factories as well as over 400, 000 staffs in 88 various nations around the world. Nestle is found in America, Africa, Europe, Australia and the Middle East. As the biggest food and Beverage Company, Nestle is determined to reach most of the nations globally. In Australia, Nestle Oceania had employed more than 6,500 staffs. Besides, the larger number of staff in this location, it also has more than 20 plants and four distributions centers that are claimed and handled by the Company. Nestle corporation is a Switzerland international food and health-related commodities business with headquarters in Vevey, Switzerland (Statista.com, 2015). It is the main food company internationally. Nestle company improves lives with science-based nutrition and health resolutions for all stages of life. Nestle helps consumers care for their lives and that of their families. Regulatory Frameworks That Affect the Multinational Company That Operates in Australia The regulatory framework that affects Nestle Company is the Forum on Food regulation (FoFR). Forum on Food Regulation is essentially in control of the growth of residential food administrative as well as the improvement of strategy rules for setting food principles. Additionally, FoFR has the capability to embrace, change or decline principles and to demand that the rules be evaluated. Those who are required to participate in FoFR include the Australia government, a Minister from New Zealand, Health Ministers from the nations in Australia, and other various Ministers from related nations where they were assigned through their jurisdictions. The Forum on Food regulation guarantees an entire food-chain technique towards the rules that govern food safety (agriculture.vic.gov.au, 2016). Additionally, the other regulatory framework affecting the multinational company working in Australia is the Food Standards Australia New Zealand (FSANZ). FSANZ is an organization that manages food standards in New Zealand and Australia. Its main responsibility is to build up and manage these two countries Food Standards Code, which proves necessities for foodstuffs such as foodstuff securities, additives, genetically modified foods, and additives. In Australia, FSANZ organizes ethics across the food supply chain. It also arranges principles in production and processing, as well as the doctrine intended for food cleanliness, and putting restrictions in food farming along with veterinary stuff. FSANZ develop principles in discussion with other included government organizations together with the stakeholders (Food Safety.govt.nz, 2016). Moreover, the national food security standards geared towards safeguarding the health and the security of the consumers get produced in accordance with the administrative approaches by the FSANZ and distributed as the Australia New Zealand Standards Code. Nations and regions control the execution of the requirements of the Food Standards Code. For example, Dairy Food Safety Victoria executes and respects the principles of the Australia and New Zealand Food Regulation in the dairy trade through its Victorian Dairy Act 2000 and the 1984 Food Act (Health.gov.au, 2016). Furthermore, the other food regulation framework is known as Food Regulatory Standard Committee (FRSC). FRSC is a board consisting of trustees of the Forum on Food Regulation. This association comprises of the senior authorities. FRSC assist in making strategy guidance towards FoFR and provides a guarantee to a steady process of dealing with the utilization as well as enforcement of food principles. Similarly, at the start, it exhorts the actions growth and audit of the IRSC and FoFR (Health.gov.au, 2016). Besides, the Australia food regulation system also entails: (1) The Australia New Zealand Food Regulation Standing Committee. This committee harmonizes approach pieces of advice to the Australia New Zealand Food Standards Council, which is headed by the office of the Secretary of Commonwealth health. The commission in charge engages the leaders of the divisions whose managers are the ANZFSC persons and the current Food Policy Unit of the Commonwealth Department of Health and Aged C are. (2) The Australia New Zealand Food Authority (ANZFA) will soon alter to be Food Standards Australia and New Zealand (FSANZ). Such constitutional right in the authority of the Commonwealth Health portfolio had a responsibility concerning building up all the residential food standards. (3) The accomplishment of the inter-Governmental Code requires changes to the ANZFA Act 1991 on the way to creating the techniques for the fresh foodstuff administrative structure. The major establishments of the new framework include The Australia New Zealand Food Standards Council, which is mandated to create strategy rules for making household food. Question 3 Treaties or Agreements that have Impact on the Products or Services that Multinational Company Provides in Australia Under the Australia, New Zealand Food Standards-setting Agreement, the Australia, and New Zealand have been in agreement to improve the combined foodstuff regulations in both countries. It is the reason why it is vital to evaluate the Country of Origin Labeling (CoOL) There is an equal country of origin agreements enclosed in other Australia and New Zealand ratification such as Australia Commerce Trade Descriptions Act 1905(CTDA) and Australia Trade Practices Act 1974 (TPA) (Food Standards Australia New Zealand, 2015). The Food Regulation Agreement (FRA) The Food regulation Agreement that was initially marked by the Council of Australian Government (COAG) in 2000, offers impact to an oath by State, Commonwealth, and Territory to a national strategy to deal with food guidelines within Australia (Health.gov.au, 2016). Food Regulation Agreement purpose is to provide a national understanding of the secure food controls to ensure the general health and security, reduce an administrative influence on food division, and to support coordination of Australia residential and export standards with universal principles. It also intended to provide money-making agreement and approval courses of action and to give a dependable executive methodology (Health.gov.au, 2016). Food Treaty among Australia and New Zealand The Australia and New Zealand governments made a Joint Food Standards System official by the means of a Treaty. It is the contract between the Australian government and the government of New Zealand whereby these two countries set up an arrangement to build up Development of Joint Food Standards. This a code is meant to remove the needles impediments to trade, receive a common arrangement of food principles and to support sharing of data (Food Standards Australia New Zealand, 2015). Australia-New Zealand Closer Economic Relations Trade Agreement (ANZCERTA) The Australia-New Zealand Closer Economic Relations Trade Agreement commonly referred as ANZCERTA is one of the inclusive joint free trade codes. It is responsible for the trade of various goods including agricultural products. The Treatys inner provision is the development of global trade responsible for free trade zone concerning Australia and New Zealand. Some of the objectives of ANZCERTA may include: First, strengthening a wide relationship between Australia and New Zealand. Second, is to develop closer economic relationships among the Member States through an equally helpful extension of free business between Australia and New Zealand (Hawke, 2011). Third, it is meant to eliminate impediments to business between New Zealand and Australia in a steady and progressive approach under an accepted timetable and with minimal restrictions. Last, is to build up business between Australia and New Zealand under conditions of fair competition. ANZCERTA has strengthened the growth of trade across the Tasman. Under its 32 years of existence, the arrangement of trade between New Zealand and Australia has increased tremendously. Many of the goals of the trade have been successful, the governments of the New Zealand and Australia have agreed to have Single Economic Market method to bring the economic relations closer (Hawke, 2011). SEM is currently applied to harmonize the two countries to allow trade, investors, and consumers to perform businesses across the Tasman in an atmosphere that seems not to have regulation. Such agreements have made it easier for Nestle to perform its businesses across these two countries with an ease. How the Treaty Impacts the Goods and Services of the Nestle Australia There various ways through which the Treaty influences the goods and services of the Nestle Australia. For example, the Treaty forces Nestle Australia to have ten years permit for selling Pfizers S-26 and SMA brands, which is followed by ten years ban period in which Nestle Company would not be allowed to re-enter into the business sector of selling Pfizer's brands. The regulations of the agreement state that any outsider supplier that wins the permit would have to source the items from Nestle, with a view that it will manufacture its own particular baby nourishment products within a short period of time. In those 10 year ban, nobody will get permitted in the direction of selling those products within Australia. However, it is trusted that the selected supplier would by this period selling its own products. On the other hand, ANZCERTA has made it easier Nestle goods and services to be manufactured and sold locally in New Zealand (Hawke, 2011). The agreement has made the Australian go vernment have more control over what goes over New Zealand by trading or other means. Nestle has become a major player in New Zealand employing over 650 workers across its six sites. Such treaties have allowed Nestle Australia to sell most of its chocolates manufactured in Melbourne to markets in New Zealand. Moreover, when there are no rules governing trade between countries, there will be no control on the quality of the food products sold to consumers and that could be risking peoples health. Therefore, Treaties and regulations can help in curbing search operations in an international business. References Agriculture.vic.gov.au, (2016). Victoria's Regulatory Food Framework. https://agriculture.vic.gov.au/agriculture/food-and-fibre-industries/food-regulators-forum/victorias-regulatory-food-framework Australianreview.net, (2001). The Australian food regulatory system: Troubling times ahead? https://www.australianreview.net/digest/2001/10/lawrence.html Bloomberg.com, (2016). Company Overview of Nestle Australia Ltd. [Online] Available at https://www.bloomberg.com/research/stocks/private/snapshot.asp?privcapId=12722296 Dairyreporter.com, (2012). FSANZ approves Nestle infant formula L- histidine level amendment. [Online] Available at: https://www.dairyreporter.com/Regulation-Safety/FSANZ-approves-Nestle-infant-formula-L-histidine-level-amendment Food Standards Australia New Zealand, (2015). Food law, treaties, and agreements. https://www.foodstandards.gov.au/about/foodlawandtreaties/pages/default.aspx Food safety.govt.nz, (2016). Food Standards Australia New Zealand (FSANZ). https://www.foodsafety.govt.nz/policy-law/food-regulation/australia-nz-cooperation/FSANZ/ [Accessed 15 September 2016]. Hawke, g. (2011). Australia New Zealand Closer Economic Relations Trade Agreement (ANZCERTA) and Regional Integration. New Zealand International Review, 36(5), 26-27. Health.gov.au, (2016). The Food Regulation System. https://www.health.gov.au/internet/main/publishing.nsf/Content/foodsecretariat-system1.htm Ibisworld.com.au, (2015). Nestle Australia Ltd - Premium Company Report Australia. https://www.ibisworld.com.au/car/default.aspx?entid=807 Nestle.com, (2012). Nestl to manufacture medical nutrition products in Australia https://www.nestle.com/media/newsandfeatures/australia-medical-nutrition-aspx sbs.com.au, (2016). EPISODE 9: Food for Thought - Food Colours. [Online] Available at: https://www.sbs.com.au/shows/foodinvestigators/listings/detail/i/2/article/3431/Episode-9-Food-For-Thought-Food-Colours Statista.com, (2015). Total number of Nestl employees worldwide from 2008 to 2015 (in 1,000s). [Online] Available at: https://www.statista.com/statistics/255203/total-number-of-nestle-employees-worldwide/ Theaustralian.com.au, (2012). Nestle to license Pfizer formula brands in Australia under ACCC orders. https://www.theaustralian.com.au/business/companies/nestle-to-licence-pfizer-formula-brands-in-australia-under-accc-orders/story-fn91v9q3-1226522115399