Human Resources Assignment Help review: Essay on Management in New Zealand. Pestle
Introduction
New Zealand business graph in past 20 years have gone high from a an agrarian economy to an independent, industrialized that can compete globally with a any nation of world. New Zealand have seen have seen a rapid growth in terms of economy, business and trade which has also brought enormous foreign exchange to the country. And this has been the result of recent technological growth and diversified growth in its industrial sector. New Zealand is a growing economy today, the percentage of employee population has also increased to 69.9 % which is rapid change in itself. The increasing in the higher rate of employment has to better living wages and better living standard for people. New Zealand also encourages foreign investment without nay discrimination and this has encouraged many countries to invest in New Zealand and lead to the economic growth of New Zealand. New Zealand business shad seen a 2% decline in 2009, but it came out of the recession in 2009,and show a 15 growth in 2010 and 2% in 2011.Th business of New Zealand still remains favorable and contributing factor for productive economy of the country. New Zealand economy and business has been supported by Australia, where they are the strong partners in CSR (Closer Economic Relations) where they can trade freely for most goods and services.
External Environment
The factors that are externally related to an organisation and affect it directly or indirectly are called the external environment.
External environment, I divided into two broad categories:
1) Directly interactive factors
2) Indirectly interactive forces
Directly interactive for these comprises of all those factors which have an immediate impact on the organization like a new competitor entering into the market which is profitable source of income for new Zealand business.
Directly interactive forces also includes other factors like:
Owners: They have the responsibility to look after the interest of all shareholders and the investors.
Suppliers: are the ones who supply the necessary raw materials and fulfill the requirement for final production of goods and services. Suppliers required to be informed about the growth of business. So there should be proper communication between the suppliers and the owners and timely payment should be done to them. There should be good relationship between the suppliers and the owners so that the business can get the best resources from the suppliers to make themselves more competitive in terms of resources and inventory (Kantar, 1989).
Customers: The satisfaction and the dissatisfaction of the customers and stakeholders have an ultimate affect on the growth of the business (Kantar, 1989). If the customers and not satisfied, their needs, wants and demands are not fulfilled, a business cannot grow. So any business must always try to keep its customers satisfied and thus believe in customer relationship management.
Competitors: Competitors directly affect any business because, they are the risk as well as challenge for them. Competitors can disrupt nay business if proper methodology is not being implanted against them. Competitors are a threat in a sense that they can target the market of their business and those customers who may be a profitable source of income of the business.
Employee unions: employee unions are the ones who represent the majority of the employees in the organization, and if their need and demand are not fulfilled at the right time, they may interrupt the work environment for their own interest. So management should try to keep an eye on their demand, needs and listen to their views, because revolts and strikes by employee unions ultimately lead to wastage to time of resources, and thus have a negative impact on the growth of business.
Indirectly interactive forces: These are the forces which have a distant effect on the business, like a new legislation which is being implanted by the government, or any technological change or may be nay socio cultural change
Socio Cultural Environment:
Socio cultural factors determine the values and demands of society. Any business moves on only if fulfills the demands and the wants so the society and follow the principle of society in which it is working (Waddock, 1988). A society which does not allow the consumption of liquor will never support any business of liquor.
Socio cultural factors have 2 factors:
Demographic -factors determine the characteristic of the society, age gender and income will determine the demographics of the society.
Values refer to the belief and the thinking of people, which are customs they follow, that is their behavior pattern.
Economic factors represent the economic condition the country, the inflation rate, the unemployment rate, interest rate, gross domestic product of the country. The rate of foreign exchange also determines the economic factors. These factors a business has to consider for its proper growth in any country.
Technological factors are the recent technological development, any business can grow only if they apply the recent technology in their business, Technology make the functioning of business faster, easier and cheaper. So it is essential for any business to respond to such changes. Eg the implementation of MIS in many business have become the latest trend which are being followed by any business, so it is need of time for nay business to implement MIS in their business so that they are not taken over by their competitors, Not following the recent technology also make the business stagnant and unproductive.
The political and the legal dimension included all those factors which are related to the country legislation. The trade acts, wages act, tax policies are few of these. Every business has to follow the law as implemented by the government because these are the mandatory policies Government changes, and with it their come a change in the laws and the regulation, so it is required by business to keep them updated with the new laws and legislation coming up, and abide by the laws framed by the political parties.
The global dimension refers to those factors which affect the business internationally ,if the business is operation in any country it may face issue of custom, traditions and language .A business formal management system is same even it works domestically or globally ,only factors that affects is the custom and the tradition of that particular country.
The 5 dimensions of an external environment are:
1)Technological dimension-Technology is one of an important factors that contribute to the business growth and success (Vleggaar, 1991). Technology is changing day by day and it is the need of every business to adapt to the latest technological advancement so that, they do remain behind their competitors.
Internet, bar coding technology, online bill payment, intranet, FAX, robotics, CAD/CAM and E- mailing system have helped a lot in the advancement of business. E-commerce and E business have contributed significantly to the success of any business and sustainability in the global competitive market.
2) Economic Dimension:
Economic factors are those which are the factors related the economic condition of the country. It is measured by the rate of unemployment, foreign exchange rates, and the gross domestic product of the country. Economic factor will decide how profitable a business scan be if started in that particular country or what will be the state of business in coming future.
Factors which determine the economic state of any country are, Inflation, tax rate, Interest rate, Unemployment rate, Recession period, strength of money, and the rate of charitable contribution from different sources. Countries have better economic resources are better place for investment and New Zealand is one among such which has a better GDP, and good employment rate. New Zealand also encourages FDI from other countries.
3) Socio Cultural Dimension
Socio cultural factor is determined by the beliefs, customs, behavior, living styles and the demographic state of the country. Demographic state is determined by the age, gender and the occupation of the society. A business can prosper ultimately if its end customers are satisfied, and end customers are the people of the society, so it is essential that any business can prosper if it can keep its customer satisfied. So any business before starting has to decide what is the demography of that state and on the basis of this next step of the business should be taken. The core values and the beliefs of the country is an important factor for the economy to grow and develop. To make the business more effective and sustainable it is quite essential to keep a good relationship with the society (Waddock, 1988). The population rate and deduction is also an important factor for any business to establish.
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4) Political and Legal dimension
The Political and the legal dimension comprise of the legislation framed by the government of the country, and how they affect the business. New Zealand political framework has its own rules for taxation and interest rate for very business which has to be followed by all the business. The political should keep in mind that the rules and regulations implemented by them should be profitable and bring in lot of foreign exchange to the country. The various welfare cats, foreign exchange and the trade act, FDA rules and the taxation policies determine how a business can grow in a particular country. The taxation policies has a great impact on the business progress of any country. Every business has to follow the rule framed by the government because these rules are in favor of the country and the economic condition of the country.
5) The international domain
The international domain comprises of all those factors which affect the business of Nez eland in their own country as well as the other. Such factors include state owned utilities, exchange rates, the difference in customs and language, outsourcing business of New Zealand. The various policies of trade implemented by UN also play a key role in this
The Four components of Task environment are:
1) Suppliers
Suppliers play a key role in the business growth in any country because suppliers are the one who are the source of resources for the business Every business news should be necessarily communicated to the suppliers and they must be informed of all the rules and regulations for New Zealand business.
2) The competitors who play a key role in determining the threats and the risk for the business and thus analyzing what are the major steps to be taken at right time
3) Potential entrants- Potential entrants are the competitors who can enter the country for productive business and thus help in the growth of the country. The potential entrants may be differ companies from other countries.
5) Buyers –Buyers are the one who bring in foreign exchange to the country, and thus add to the economy of the country
Conclusion
As per the study it is very much clear that the New Zealand is one of the most booming economy in terms of business opportunities and aspects. We can easily discriminate the kind of growth and opportunities they have taken to inculcate new business opportunities and improve their presence in front of the world economy.
The various internal and external environmental aspects give a brief about the kind of strategy they are following to uplift their place and to make better understanding of business environment that is one of the most essential part to grow and develop with the optimal utilization of available resources.
The kind of strategy and relationship with their suppliers and stakeholders they are showing is really appreciable and up to the mark that is helping and supporting them to spread their businesses exponentially.
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