New Zealand Business Characteristics, Culture and Issues

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This article explores the business characteristics, culture and issues affecting businesses in New Zealand. It covers the country's business environment, culture, and factors affecting businesses such as poverty, political uncertainty, and lack of housing.

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Running Head: BUSINESS CHARACTERISTICS, CULTURE AND ISSUES 1
NEW ZEALAND BUSINESS CHARACTERISTICS, CULTURE AND ISSUES
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BUSINESS CHARACTERISTICS, CULTURE AND ISSUES 2
Introduction
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 Māori represent a 14.9%, while Non-
Māori Pacific Islanders and Asians represent 7.4% and 11.8% respectively (Māori 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,
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BUSINESS CHARACTERISTICS, CULTURE AND ISSUES 3
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 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
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BUSINESS CHARACTERISTICS, CULTURE AND ISSUES 4
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

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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
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BUSINESS CHARACTERISTICS, CULTURE AND ISSUES 6
composed majorly of Europeans, Arabs, the Māori, and Non- Māori 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.
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BUSINESS CHARACTERISTICS, CULTURE AND ISSUES 7
References
Gabrielsson, P., & Gabrielsson, M. (2013). A dynamic model of growth phases and survival in
international business-to-business new ventures: The moderating effect of decision-
making logic. Industrial Marketing Management, 42(8), 1357-1373.
Gutteridge, L. (2012). Senior business studies. Auckland, N.Z: Cengage Learning
Focus, E. (2018). New Zealand - Business and Workplace Culture | ExpatFocus.com. Retrieved
from http://www.expatfocus.com/expatriate-new-zealand-business-culture
Int'L, B. P. U. (2015). New Zealand investment and business guide: Strategic and practical
information. Place of publication not identified: Intl Business Pubns the USA
Martens, K., & Starke, P. (2008). Small country, big business? New Zealand as education
exporter. Comparative Education, 44(1), 3-19.
Nzbusiness. (2018). Culture Building and Values: Why it Matters. Retrieved from
https://nzbusiness.co.nz/article/culture-building-and-values-why-it-matters
Newzealandnow.govt.nz. (2018). Working in New Zealand | Work in New Zealand | New
Zealand Now. Retrieved from https://www.newzealandnow.govt.nz/work-in-nz/nz-way-
of-working
Māori Business Growth Support. (2018). Retrieved from
https://www.tpk.govt.nz/en/whakamahia/maori-business-growth-support
Oliver, L., & English, J. W. (2012). The Small Business Book: A New Zealand guide for the 21st
century. Sydney: Allen & Unwin.

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Packham, B. (2011). Housing shortage 'threatens economy'. Retrieved from
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