1) Investigate what products your company sells, where they source these products from and any innovation that they use to grow/sell/market their product?
Products they sell:
- Classic honey
- Manuka honey
- Premium selections
- Kids honey
- Creamed and pot set honey
Where does their honey come from:
- Alpine honey- comes from the snowy mountain regions of New South Whales and Victoria
- Yellow gum- comes from the blooms of yellow gum trees which are located in Stanwell, Victoria
- Manuka honey- comes from Victoria, New South Whales, WA, and Queensland
This honey is made from over 600 bee keeping families in Australia.
2) What factors could impact the supply of their goods?
The supply can decrease due to weather conditions, pests and diseases that effect bees. Supply can change due to the population of bees boosting or decreasing. This would effect the supply and that would go down whislt the demand goes up. If the population of bees increased the supply would go up with not enough demand.
3) What factors could impact the demand of their goods?
If people were informed that the bees have diseases this would mean the honey would decrease in demand because people wouldn't buy the honey. For example capilano honey admitted to selling toxic and poisonous honey to consumers. The demand would have massively decreased while the supply increased.
4) Investigate how your company differentiates itself from its competitors. Hint: Ethical, Sustainability, Australian grown ect... Do you think this would increase demand or their product or not? Why? Or why not?
Something's that Capilano does to set themselves aside from other honey businesses are
5) Explain situations when the goods that you sold would not be counted towards Australia's GDP.
Products aren't counted towards Australia's GDP when they are not in there original form for example if honey joys or smoothies are sold in cafes. Here are some examples of products that are not counted towards Australia's GDP.
- Honey joys
- Ice cream
- Honey comb
- Cough lollies
6) All the businesses mentioned export their products overseas into China. What do you think would happen if they could not sell to this market?
Step 2: response to prompt
" When China sneezes Australia catches a cold "
The phrase " When China sneezes Australia catches a cold" refers to if China has a minor set back in the economy it effects Australia massively. China and Australia have a big trade market, they rely on each other to import and export resources and goods.
Some Australian jobs rely on China's economy more then they rely on Autralia's economy. If China suddenly decides they don't need as much materials this has a large effect on Australia causing disruption. For example in Western Australia there was a decrease in demand this caused mine closure, job losses and for house prices to decrease. If China's economy is causing Australian's to loose there jobs we might be relying on what goods we import to China a little too much.
China's need for our resources drives an enormous share of Australia's economy growth. This is possibly the most dependent Australia has been on one partner of the market. Is this a hazardous situation? Majority of our GDP growth is driven by exports to China. Exports such as Iron, coal and ore. Australia's economy would be more intact if we exported to a variety of different countries and we didn't rely on China for a major part of our GDP growth.
In conclusion hiccups in China's economy should not effect Australia and our jobs.