Indigenous Approach to Business and Intercultural Issues in New Zealand

Intercultural relation
NGUYEN THI THANH HUYEN -LANA- 19221
HOIL KIM - 100874
PAOLA FONSECA –100742
SATHURA GIRI -100267

Group 1
Table of Contents
Indigenous approach to business differ from traditional approaches................................2
Intercultural issues were evident to you on your Marae visit..............................................3
Conflict between cultural approaches / ideas / patterns.......................................................6
Conclusion.................................................................................................................................7
Bibliography.............................................................................................................................7

Group 1
Indigenous approach to business differ from traditional approaches
The Maori is the indigene in New Zealand and their role in the New Zealand business sector
is becoming bigger nowadays. According to the report of Business and Economic Research
Ltd in 2013, the economy of the Maori is approximately $ 42.6 billion. And they contributed
$ 1.8 billion in primary sector to GDP. It is about 16% (Te Puni Kokiri, 2013).
Also, Maori business culture shows some insight for sustainable business development such
as dealing with customer and client as a family, preserving cultural legacy and environment
(WixonKarl, 2017).
So, regarding differences between indigenous approach and the traditional approach in the
business sector, the comparison between Maori business approach and traditional business
approach will be conducted. And, the comparison between Sanford and Moana New Zealand
will be compared as an example of the differences.
According to the Ministry of Education in New Zealand, it explains the characteristics of
Maori business and differences compared to traditional business. Regarding the
characteristics of Maori business, it has multiple bottom lines. Performance of Maori business
is judged by not only financial outcome, but also environmental, social and cultural
outcomes. It means they have goals in each category and adherence to particular value and

Group 1
principles. Also, Maori business generally takes Risk minimization strategies to protect core
assets such as land. Another characteristic of Maori business is 'collective ownership'.
Basically, Maori business is owned by Iwi (Maori community) or a number of the Maori. So,
dividend benefit is usually used for Maori communities, not for individuals. This
characteristic distinguishes the Maori business from general business. General (traditional)
business organisation is usually owned by individual or companies. due to risk minimisation
strategies for protecting core asset (land), Maori companies’ dept-equity ratio is lower than
non-Maori companies which adopt the traditional business approach. Also, sales of land are
uncommon in the Maori companies (Ministry of Education, 2013)
To explain the characteristics of Maori business and differences from the traditional
approach, Moana New Zealand and Sanford will be compared. Both companies are fishery
company in New Zealand. Moana New Zealand is the Second biggest company in New
Zealand, also the biggest Maori company in fishery industry in New Zealand. And Sanford is
the biggest fishery company in New Zealand. This company is a non-Maori company and
adopt traditional business approaches.
In terms of ownership, Moana New Zealand is owned by 58 Iwi shareholders (Moana New
Zealand, 2017). And its dividend is used for supporting community-based projects and
initiatives of Iwi regarding health, education or employment (Moana New Zealand, n.d.)
On the other hands, according to an annual report in 2017, Sanford has 2,000 shareholders
(Sanford Ltd, 2017). And it consists of a number of companies and individual (Market
Screener, n.d.). Also, the dividend of Sanford is provided to shareholders for their
profit(Sanford Ltd, 2017)
In terms of dept-equity ratio, it can be found the debt-equity ratio of Moana New Zealand is
lower than Sanford’s one. Dept-equity ratio of Sanford is 32.4% in 2018 (Brown Declan,
2018).
However, the dept-equity ratio of Moana New Zealand is 24,27% (calculation based on
figures in financial statement 2017) (Moana New Zealand, 2018)