You have been tasked to conduct an environmental analysis of a New Zealand organisation. The terms of reference would be an assessment of the internal and external environment of the company. These findings and conclusions will assist the business entity to develop business plans at a later stage when required.
Whilst it will be difficult to isolate the pervasive influence of global forces, your primary goal is to present recommendations for operating within the domestic New Zealand market. Nevertheless, any global linkages that could have an impact on the local business operation should be highlighted.
What is the Treaty of Waitangi?
Counterparts of bi-cultural partnership
Basic overview of Maori customs and norms
Basic overview of the concepts of Whanau, Hapu and Iwi.
Outline of key principles of the bicultural partnership: partnership, participation and protection
Application of Treaty principles to business activities and relationship of your chosen organization
Analyse the impact of the internal and external environments on the business entity
Analyse the influence of bi-cultural partnership on business activities and relationships in New Zealand.
Analyse the impact of internal and external environments on entities.
Analyse how the origin and nature of the bicultural partnership (as embedded in the Treaty of Waitangi) can be applied to business activities and relationships.
Restaurant Brands NZ Ltd Overview
This report highlights the external and internal environment of the New Zealand business and influence of the Treaty of Waitangi on New Zealand based business. In this report, Restaurant Brands NZ Ltd is chosen to analyse the business environment in New Zealand. This report highlights the implication to New Zealand businesses in terms of the uniqueness of the principles of the Treaty of Waitangi. This report provides the scope for further research on the influence of global forces in the business. The scope of the report provides strategic implication to the New Zealand based businesses. Furthermore, the limitations of the report are that the report is solely depended on secondary data sources and analysis will also be done based on the secondary data sources.
Restaurant Brands NZ Ltd is New Zealand based fast food Company and it owns and operates with master franchising property for KFC, Pizza Hut, Carl's Jr and Starbucks in New Zealand. Restaurant Brands New Ltd was established in the year 1989 and this brand operates in New Zealand stores and provides support to independent franchising stores in New Zealand (Restaurantbrands.co.nz, 2018). Restaurant Brand was established to have the share in Pizza Hut and FFC from PepsiCo. It is in the restaurant and leisure industry. Restaurant Brands has it headquarter in Auckland New Zealand. Restaurant Brands NZ Limited is a corporate franchise and it is specialised in branded food retail chain and the target customers of Restaurant Brands NZ are the food lovers which belong to the upper-middle class people who can afford to fast food. Restaurant Brands is listed on the New Zealand Stock Exchange and Australian Securities Exchange. In 2018, Restaurant Brands employs more than 8,000 staffs and serves more than 120,000 customers worldwide. Restaurant Brands owns 94 KFC stores in New Zealand and 61 KFC stores in Australia, 36 Pizza Hut New Zealand stores, 22 Starbucks, 19 Carl’s Jr., 37 Taco Bell Hawaii and 45 Pizza Hut in Hawaii stores (Restaurantbrands.co.nz, 2018).
Restaurant Brands started its journey by acquiring the takeaway operations of Pizza Hut and KFC in 1998 and since then, the management and leadership team of Restaurant Brands has been playing the role of dedicated and managing and leading the people of the organisation. Since the float of the company, Restaurant Brands has capitalised the position. Current CEO of the organisation Russel Creedy himself observes the sales and operational performance of the organisation along with the logistics and manufacturing departments. Another leader of Restaurant Brands is Grant Ellis is the Chief Financial Officer of the organisation and he is responsible for the treasury, investment and financial functions of Restaurant Brands NZ. In particular the New Zealand division of the organisation, Ian Letele plays the role of CEO and Ian is responsible for the leadership programme of New Zealand. Ian recognises the importance of training of the people and leadership programme provides importance to the qualification of food and safety. The leaders provide importance to the employee safety as well. Restaurant Brands provides significance to the injury prevention, active rehabilitation of the employees and safety awareness (Restaurantbrands.co.nz, 2018). The management follows the democratic leadership in this organisation as they always discuss with the fellow employees before expanding the business and changing any business rules. Restaurant Brands tries to develop along with nurture ambition and talent of the employees.
Environmental Analysis of Restaurant Brands NZ Ltd
Human Resources: Restaurant Brands purchased initially only 122 stores in New Zealand; however, as of February 2018, Restaurant Brands has more than 314 stores worldwide. Restaurant Brand employs more than 8,000 staffs (Restaurantbrands.co.nz, 2018). Human resources of the organisation are important and the staffs are given the training to improve the customer satisfaction. Restaurant Brands has developed more than 300 managers for the store management by providing a training programme.
Financial Resources: As of market capitalisation of 2017, Restaurant Brands has the total equity of NZ$560 million. Net profit after tax has reached NZ$ 40 million up with +32%. Overall Group revenue of the organisation was NZ$ 520 million (Restaurantbrands.co.nz, 2018).
Assets: In Restaurant Brands, most of the store managers are young and with the right training; these managers are able to manage the turning over $4 million in a year with the assets of over NZ$ 3 million (Restaurantbrands.co.nz, 2018). Each of the stores has more than 20 employees who report to the store managers.
Corporate values are the operating principles which guide the organisational conduct and its relationship with the consumers, shareholders’ and partners (Sakhartov & Folta, 2015). Corporate values of Restaurant Brands NZ are to lead for being an operator which endure and innovate management of stores and franchising. The main target of the organisation is the food-loving customer who can visit the nearby stores of Restaurant Brands. Restaurant Brands NZ Ltd wants to be CSR brand and the principles can shape the management practices, menu and people and contribute to the communities. Four independent elements of the corporate culture and values of Restaurant Brands are people, food, progress and planet. Therefore, major aspects of the business to follow are the environmental, governance ethos, social and sustain the health and vitality of the organisation (Restaurantbrands.co.nz, 2018). In New Zealand, there are approximately 3,600 staffs and each of the staff needs to maintain the corporate values of the organisation. Restaurant Brands wants to deliver the pride contribution to the local areas in which regions, stores are located and Restaurant Brands wants to deliver the economic benefits and support to the community.
New Zealand is an open market economy and it follows mainly free market fundamentals. In the last thirty years, New Zealand has changed itself from regulated OECD country from the free-market based economy. New Zealand is the export-driven economy and exporting provides almost 30% of the GDP in New Zealand (Kelsey, 2018). In the year 2017, New Zealand’s GDP touched US$ 186.5 billion and GDP rank is 53rd. Most importantly, GDP growth of New Zealand is 3.5%. In addition, New Zealand economy recovered very well from the 2008 recession and annual growth of the economy is 2.1%, the stock market has risen by 27% in 2017 (Wilson, Oliver & Malpas, 2018). New Zealand is ranked 1st in Ease-of-doing business in the world and FDI broke the record in 2017 in New Zealand as it touched US$3.5 billion (Anzasw.nz, 2018). Disposable income of New Zealand people is US$ 30,500 and it is lower than OECD based countries. High FDI and economic development of the country must help the organisations of New Zealand to improve the sales and marketing. The companies will try to spend more on marketing as the customers have money in hand to purchase the desired products. New Zealand is the third freest economy in 2018 (Anzasw.nz, 2018).
Impact of Bicultural Partnership on Business Activities and Relationships in New Zealand
New Zealand has the population of 4,790,700 and the population growth of New Zealand is 2.1% (Hong et al., 2016). In New Zealand, more than 96% of people speak English and 3.7% people speak in the Maori language. Understanding the local rituals and customs is hard to settle down in New Zealand and income is high for the most numbers of people. Family structure is small in New Zealand and there is segregation in New Zealand social class. The taste of the people is varied in New Zealand and the preferences of the customers get change with time. Almost 65% of the people aged between 16 and 64. New Zealand's education system has three tiers, early school, middle school and tertiary education. Education is compulsory for the people aged between 6 and 16. Many international students come to study in New Zealand as the educated people get the opportunity to get the vocational training along with job opportunity. Labour force of New Zealand touched almost 2.40 million (Austin & Reid, 2017). Human resources of New Zealand are segregated into two major parts, immigrant labours and New Zealand based labours. One-third of the New Zealand based employees are skilled and skilled employees differ with an ethnic group. Therefore, human resources are abundant in New Zealand irrespective of males and females. The middle range of skills employees is less in NZ who can do the work like technicians, clerks and trades.
New Zealand has political stability in the turbulent world and New Zealand is ranked third in political stability (Wepa, 2015). New Zealand is ranked first on Transparency International Corruption Perception Index. Public institutions are not corrupted as these are trustworthy. Word Justice Project published the names of the top ten countries which follow the rule of law; New Zealand is one of them. Therefore, New Zealand is a peaceful country and a safe place to start the business. Business Innovation and Employment department of New Zealand develops the policy relating to the regulation of financial and capital market with market intermediaries. New Zealand has developed an effective and consistent framework to regulate participation and confidence of the financial market.
Therefore, NZ provides the market-oriented economy and efficient investors with business stability and free trade agreements. NZ government provides the support for investment and NZ provides a secure environment for doing business and it has a network for transportation. The employees are trained, versatile and flexible.
Corporate Values and Culture of Restaurant Brands NZ Ltd
The Treaty of Waitangi signed in the year 1840 by the administrator of the British Crown and Maori leader (Orange, 2017). It is a historical and political document for New Zealand and it has great significance in designing the political relationship between the Maori population and the New Zealand government. This treaty was drafted for establishing the British Governor identifying the Maori ownership of the forests, lands and other possessions. The impact of Treaty is to prevent the selling of Maori land and purchase of the land making different from alienated indigenous people.
Bi-cultural partnership in New Zealand is based on the relationship between the non-Maori people and the Maori people. The Treaty of Waitangi placed the collaboration between the Maori and the British Crown (Parsonson, 2017). In New Zealand, the bicultural partnership now permeates in New Zealand based business structures which endeavour and reflects the centricity of the Treaty of Waitangi in spiritual, social, communal and political as well. Bi-cultural partnership in New Zealand based business can foster the collaboration between diverse people and it tries to address all aspects of social development. The bi-culture partnership follows certain principles as it shares the unique responsibilities between the partners.
Maori people are indigenous in New Zealand and their language and Maori people are approximately 700,000 in numbers in New Zealand. Most of the Maori people live in the North Island and in New Zealand; some of the places have two names because of Maori languages and English languages used. Meeting Ground or ‘Marae’ is the focal point of local Maori communities, Manaakitanga is about the hospitality of the guests, Kaitiakitanga is the guardianship or the sense of respect for the natural environment (Came, Cornes & McCreanor, 2018). ‘Hongi’ is the Maori greetings, a kiss on the cheek and full face tattoos of Maori people are known as ‘Moko’. Re Teo Maori is a national treasure and ‘The Haka' is the traditional war dance of Maori (Wilson, 2017). Powhiri is the welcome ceremony of Maori people when the visitors want to go to the meeting grounds.
Whanau in the Maori language is used for the extended family members or the community members. Whanau in the Maori language is the meaning of the political unit of the people who can live together in an area (Wilson, 2018). However, contemporary concept of Whanau offers two different meaning; first one is a construction or object based on cause, descent or mix of the two; second one is about collection of ideas. Descent creates Whanau which is explained as the extended family or community or a family spanning three or more generations.
New Zealand Market Overview
Hapu is a division of Maori community as Hapu has the membership by genealogical descent. Hapu actually comprises a number of extended family group (Wilson, 2018). Some of the Hapu in other Iwi were larger in the past and a Maori person can link with many different Hapu.
In addition, Iwi stands for the largest social units in Maori and it has the dual meaning of tribal people (Newzealandnow.govt.nz, 2018). In Maori language; the word ‘Iwi’ stands for the nation of people and ‘Iwi’ can be translated as ‘tribe’. Iwi people have their link to the original Polynesian migrants who arrived from the place name Hawaki. Iwi cluster in larger groups are called Waka.
The bicultural relationship can develop a sense of autonomy for the real interdependence. Bi-culture relationship helps to develop the meaning of open-partnership which can reinforce the collaborative sharing of the ideas, experience and wisdom (Newzealandnow.govt.nz, 2018).
In Treaty of Waitangi, Partnership is associated in working together with Maori communities like Hapu, Whanau and Iwi to develop the tactics for workplace. Partnership means valuing the young individuals and the support network, having empathy and sharing resources along with decision-making (Wilson, Oliver & Malpas, 2018). Working in partnership in Restaurant Brands is required to show the respect and value differences, share knowledge and along with empowering others. Partnership is about sharing power, sharing skills and treating the network equally.
In addition, Participation means Maori people to be involved at all the levels of workplace including the planning, decision-making and delivery of services. Participation needs everyone to be inclusive. Participation will be perfect when each of the persons will have equitable access of the products and services based on their needs (Wilson, 2017). Restaurant Brands can start participation when they start open discussion and genuine consultation, good faith on people and support young people to share their ideas.
Protection is involved the Government working to ensure Maori people at least have the same level of facilities like non-Maori and this principle plays the role of safeguard of Maori cultural concepts, practices and values (Hayward & Wheen, 2015). Protection is about protecting young individuals’ wellbeing and things which are significant to them, such as language, values and culture. Restaurant Brands needs to acknowledge that threat to someone’s cultural perspectives and values can be threat to people’s wellbeing. Restaurant Brands can start advocacy and honesty and sharing knowledge and awareness.
Restaurant Brands can advance towards indigenous best practices for the employees who belong to Maori people and it will provide the understanding of the community and social work. A good bi-cultural relationship between Maori and other people will definitely give a real interdependence. The business will get high numbers of participation when Maori people will share the wisdom and knowledge of the business.
Human Resources in New Zealand
Waitangi Treaty is significant as it ensures the Pakeha and Maori rights are protected from accepting the rights of Maori tribe. This treaty accepts ownership of the Maori land and it protects the way of life. Treaty of Waitangi asks New Zealand government to meet the desires and roll back what the government took from the people (Wilson, 2018). In business activities, this treaty provides the chance of taking indigenous people in business and establishes the equality in all New Zealand people under the law.
New Zealand provides the free movement of capital and it is the best country to have the ownership cost. New Zealand market is competitive in nature and it provides a simple and attractive tax structure. Custom rates are lower in New Zealand. Therefore, Restaurant Brands NZ can take the opportunity of its resources and assets to develop the organisation as it has proximity in Asian markets.
Restaurant Brands should take the strategy of market development as Restaurant Brands can opt to take franchising in different locations where the market is lucrative for the business. Asian market will be profitable for Restaurant Brands to expand as numbers of buyers are large in the Asian market. In addition, a partnership with Maori people will also help the organisation to have large numbers of human resources pool for the organisation. The hapu-based tribal economy of Maori has observed the renaissance in the economy and Maori renaissance brought the Maori-centred policy which can develop the Maori generations. Therefore, Maori ingenuity into Restaurant Brands can help in doing the business in New Zealand.
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