Impact of Business Environment on Spark Company in New Zealand

Running head: BUSINESS ENVIRONMENT
BUSINESS ENVIRONMENT
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BUSINESS ENVIRONMENT1
Executive Summary
Spark Company of New Zealand is a renowned telecommunications company that is
renowned and established for offering fixed line telecommunication services, mobile
network, internet services along with ICT services. Focused on the services offered by the
company in the market, the position of the company in the telecommunications and internet
connection industry of New Zealand is evaluated in the current report where external and
internal business environment analysis of the company is carried out for evaluating the
factors impacting the business of the organization. From carrying out PESTEL analysis of
Spark Company it has been gathered that the political and economic factors that are
impacting the successful business position of the company in New Zealand includes aspects
related with growth of national GDP along with per capital income and along with that
recession is also deemed to have an impact on the company as it greatly relies in international
business. Social factors impacting the business are revealed to be increased cultural diversity
within society long with consumer awareness is increased that is making the company more
efficient in the business. It is also revealed that according to the vision and mission of the
company, digital technology has the capability of creating positive impact on the social and
economic wellbeing of the companies. Based on the business environment analysis of Spark
Company, certain effective recommendations have been provided in the report where the
company must operate in the industry through abiding by the laws associated with the
nations’ technology framework. In addition, the company is also recommended to employ
highly skilled labour base that increases expenses of the company, where it is also
recommended to outsource cheap and skilled employees from certain nations like China and
India.

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It has also been revealed that the demand-supply chain of the company is focused on
maintaining exceptional consumer connections where there is increased demand for advanced
technology to get closer to target consumers and exceptional telecommunication experiences
each day. It has also been revealed from the report that in accordance with “Health and Safety
at Work Act 2015” Spark is also observed to face certain difficulties in addressing such
compliance requirements that is in the form of maintaining suitable provision of training,
information along with instruction deemed important for safeguarding employees from risks
to health and safety at the workplace. In ensuring better health and safety practices at work
responsibilities considered by Spark under the act includes providing importance to workers
opinions on matters that can impact their health and safety along with developing
improvements on their workplace participation. The report also recommended that Spark
Company can ensure attaining competitive edge over its major competitor Vodafone. In
addition, for ensuring sustainable competitive position in the market, Spark Company is
recommended to attain rapid growth in its broadband connection through positioning itself as
a low-cost operator by switching an increased number of consumers off copper-line services.
This report has discussed the environmental Factors both external and internal, External
environmental (macro) factors impacting on Spark, Recommendation from PESTLE analysis
summary, SWOT analysis impacting chosen organisation and recommendations from SWOT
analysis summary, Economical or Legal situation
Introduction to the chosen organisation:
The aim of this report is to discuss the impact of environmental situation of the
market on the successful operation of the companies. Along with this, application of the
economic and legal principles in operating market will also be discussed. In this report, the
company named Spark New Zealand Limited will be discussed which is a
telecommunication company situated in New Zealand that provides, mobile network, fixed

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line telephone service and internet service within the market. Along with this, the company is
one of the most important ICT provider in the business companies of NZ through Spark
Digital Division. This company is one of the largest companies according to its value on New
Zealand Exchange.
The company was established after the postal services act of 1987 had split New
Zealand Post Office into Telecom New Zealand Limited, New Zealand Post Limited and Post
Office Bank Limited. Telecom New Zealand Limited then started to operate as Telecom
grabbing the telecommunication market of the country and its infrastructure. In 1990, the
company was sold to Ameritech and Bell Atlantic, two US based companies (Sparknz.co.nz.,
2019). The company mainly reaches to the business organizations based on New Zealand
making the country to be more digitally empowered.
According to the vision and mission of the company, digital technology has the
capability of creating positive impact on the social and economic wellbeing of the companies
(Sparknz.co.nz, 2019). The communication system becomes stronger and safer while
connecting ore communities living in the remote parts of the country and creating numerous
opportunities for the people irrespective of their social or economic background. Along with
this, the operation of this company is capable to provide support to the health care industry
improving the situation of the people of NZ irrespective of their ages and income.
Section 1 – Environmental Factors (both external and internal)
Section 1 (a)
PESTLE model analysis:
PESTLE analysis is one of the most important tools that help the companies to
understand the external situation of the market in which it is operating currently. This