New Zealand's Business Characteristics And Culture

Population and Ethnic Diversity

Discuss about the New Zealand Business Characteristics, Culture and Issues.

World economies are distinguished by factors such as culture, business characteristics and issues affecting business. New Zeeland is an island country located on the continent of Oceania. The country’s population according to 2016 statistics is about 4.693 million people. The current population is estimated to be around 4.8 million people. The country is made up of a diverse population made up of people of different ethnicities, gender, economic background, geographical location, and religions (Int'L, 2015). New Zealanders from European descent from the highest component of this population at 74%. The M?ori represent a 14.9%, while Non- M?ori Pacific Islanders and Asians represent 7.4% and 11.8% respectively (M?ori Business Growth Support,2018). Other minorities include New Zealanders, people of African, Latin American and Middle Eastern origin. New Zealand has been described as the best and a safe country to invest and do business (Roberts et al.,2015). It is characterized by both the ease starting new ventures, ease of doing business and protection of investors.

New Zealand Business Characteristics. New Zealand is known to be a major destination for foreign investors from across the world. According to the World Bank, New Zealand is the safest and most friendly country to invest and do business. These aspects of the country’s business market have been a major reason for the forays made into the country by multinational corporations such as Australian based Woolworths and American McDonald's Restaurants (Martens & Starke, 2008). The country’s business environment is made up of both small medium and large multinational enterprises. The enterprises operate in the different sectors such as mobile telecommunications, Airlines, food products, consumer goods, financials, technology, dairy, healthcare, and utilities. The dairy industry is the largest in the country of New Zealand, making it the largest exporter of dairy products in the world through companies such as Fonterra (Newzealandnow.govt.nz, 2018). The country has produced some of the widely recognized organization such as AJ Hackett, a commercial Jumping company operating all over the world, Air New Zealand, Weta Studios credited for blockbusters such as The Avengers, King Kong, Avatar, The Hobbit and Lord of Rings. Another distinguishing characteristic is that the country is largely made up of medium sized and small enterprises accounting for over 95% of the total number of Companies. These companies largely depend on international trade with Canada, Japan, South Korea, China, United States and the European Union. One-third of its GDP comes from the export of goods and services, with Tourism and dairy products being the leading export earners. Other exports include minerals, timber, and meat. The country’s business regulations are relatively low characterized by reduced taxation marginal rates, liberalized import regulations and lack of controls on prices, interest rates, and wages. There is also multiple support services and opportunities for new businesses in the country such as liberalization of import regulations. Additionally, the country has a highly skilled workforce making it attractive for a wide range of companies and investors. The country has one of the most Globalized market economies operating majorly through free market principles (Gabrielsson & Gabrielsson, 2013). The main sectors include Agriculture, service sector and manufacturing.   

Business Characteristics and Environment

Business Culture: Culture is a major business component. It is majorly encompasses etiquette, behavior and ethics, habits, beliefs, working style, Vision and values of a particular organization. Culture is a major determinant of all business functions; a great business culture is made up of place, people, narrative, practices, values and vision. Dress code is one of the major components of New Zealand’s business culture. It is mandatory for both men and women to dress appropriately maintain a formal conservative look (Focus, 2018). This dress code is prioritized especially when attending meeting s or interacting with people, not known well to an individual. A conservative dress code tending towards a formal look is therefore the approved business dress code in New Zealand. This however differs between men and women .Men are expected to be dressed in darker colored suits, a conservative tie  and  white shirts to maintain a conservative formal look. Women on the other should maintain a fashionable and classic look with either a skirt and a blouse with a jacket, a dresses or suit, either gray or navy (Gutteridge, 2012). Colors deemed appropriate for professional causal look include white, ivory, camel, gray and Navy. However, outside the formal business situation people are allowed to be dressed informally. In addition people are highly encouraged to be nice to people they meet for the first time (Nzbusiness, 2018). English is the approved business language, majorly used for meetings and other events unless under special circumstances. The dress code for ANZ Bank staff is one of the perfect t examples. Time is also an important aspect of the country’s business culture. Business hours run from 8:30 am to 5pm for weekdays and 9 am to 12:30 pm for Saturday’s .The culture also involves being in time for meetings and appointments and making appointments with associates in advance in advance. All meetings are opened with a small talk running for a few minutes. Discrimination on the basis of political opinion, religion, race, age and sex is illegal and safeguarded against by legislation. Finally trust is also a major component of the country’s business culture. Once broken it is hard to win back (Focus, 2018).

Issues affection business in New Zealand. Businesses are affected by various factors including technological, political, socio, economic and legal factors. These collectively form an organizations business environment. These factors are known to have a major impact on the operations of an organization. New Zealand businesses are affected by a factor ranging from poverty, lack of housing and job insecurity. Poverty is particularly a major issue affecting business in New Zealand. It is estimated that a total of 15% of the total population lived in poverty based on 2010 statistics. Although rated classified among the countries with the highest quality of life, the country also has a sizeable percentage of its population living below poverty line. The country’s level of poverty is particularly high among children population affecting more than 28% of the children population (Oliver & English, 2012). Poverty affects the amount of money that people spend on goods and services hence affect the number of services and goods and services that businesses can sell in the market. Poverty also affects businesses in that poverty leads to low levels of education hence affecting the ability of businesses to obtain qualified workforce within particular environments. With the significant role played by employees in modern organizations lack of qualified employees is a major setback for businesses. Poverty is also one of the major causes of absenteeism from work. Living below the poverty line means that an individual is not able to afford quality healthcare. This increases their chances of getting ill which directly affects their performance and availability at work. Absence or reduced productivity directly affects an organization (Watts, Campbell & Hare, 2016). Political uncertainty, especially in the periods preceding election, is also a major factor affecting businesses in the country; it does not only slow down the rate of economic growth but also affects the profitability of businesses and rate of investments in the country. Lack of housing is also one of the issues affecting businesses in New Zealand. Lack of affordable, well located and healthy housing affects the ability of people to work and hinders productivity (Packham, 2011).  

Conclusion

In conclusion, New Zealand is one of the friendliest countries for businesses and investors according to the World Bank. The country is made up of a heterogeneous population composed majorly of Europeans, Arabs, the M?ori, and Non- M?ori Pacific Islanders. The country’s characteristics include being the safest and friendliest for investors, depending mostly on exports and imports. It is also characterized by minimal government regulation. The country’s business culture include the use of English as the official business language, emphasize on timekeeping among employees and advocacy against workplace discrimination. Trust and dress code are also highly emphasized. The operating hours during weekdays are from 8:30 am to 5:30 pm while on Saturday’s business run from 9.am to 12:30 pm. Some of the issues affecting business in the country include lack of housing, poverty, and political issues.  

References

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