Organizational Compliance: Analyzing Globalization's Impacts and Strategies for Spark New Zealand Limited

Spark New Zealand Limited, a telecommunications organization, aims to achieve organizational compliance. Globalization has impacted the company in terms of uneven profit distribution and increased competition. However, it also offers opportunities such as a larger customer base and expansion into developing markets. To align their operations and business systems with global practices, Spark can follow four steps: outlining organizational mission, identifying necessary adjustments, determining the best approach, and including adjustments in the strategic plan. Organizational culture compliance plays a crucial role in leveraging competitive advantages. Spark can implement strategies such as creating procedures and policies, fostering open communication, promoting ethical behavior, and providing regular training and education.

Running head: ORGANIZATIONAL COMPLIANCE
Organizational Compliance and Risk Management: Spark
Name of the Student
Name of the University
Author’s Note:

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Table of Contents
Introduction................................................................................................................................3
Discussion..................................................................................................................................4
Task 1.....................................................................................................................................4
1.1 Analysis of Two Impacts of Globalization on New Zealand Business Entities with
Evaluation of Two Opportunities for New Zealand Businesses........................................4
1.2 Identification of Four Steps that New Zealand Business Entities taking Alignment to
Operations and Business Systems with Global Business Practices...................................6
1.3 Critical Examination of Contribution of Organizational Culture Compliance for
leveraging Competitive Advantages..................................................................................7
1.4 Suggestion of Four Strategies for New Zealand Business Entity in Implementation of
Development of Organizational Culture conductive to Compliance.................................8
1.5 Two Strategies leading to a Competitive Advantage for Business Entity with proper
Example..............................................................................................................................9
1.6 Identification of Two Internal and Two External Compliance Requirements for
Spark New Zealand Limited............................................................................................10
1.7 Evaluation of Eight Risk Factors for Non-Compliance of the Compliance
Requirements....................................................................................................................11
Task 2...................................................................................................................................12
2.1 Description of Risk Management Process with Flow Chart and Analysis of Each
Step in Planning and Implementation..............................................................................12
2.2 Assessment of Two Risks for both Internal and External Stakeholders for the
Possible Impacts on Business Strategy and Objectives with Mitigation Strategy...........14

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2.3 Development of Risk Management Framework for Selected New Zealand Business
Entity................................................................................................................................15
Conclusion................................................................................................................................16
References................................................................................................................................18

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Introduction
Organizational compliance refers to the conforming to any specific rule like law,
standard, policy or specification. This regulatory compliance helps to describe the objective,
which all types of companies are aspiring to achieve in their efforts for the core purpose of
ensuring that they are completely aware of and undertaking steps for complying with the
subsequent regulations, policies and laws. This organizational compliance also is helpful for
managing their compliance data efficiently (Benn, Edwards & Williams, 2014). The
following report will be outlining a detailed description on the organizational compliance for
one of the most popular and significant organization in New Zealand called Spark New
Zealand Limited. It is a telecommunications organization after providing various fixed line
telephone services, ISP or internet service provider, mobile networks as well as main ICT
providers to the several businesses in New Zealand.
This report will be analysing two impacts of globalization on the New Zealand
Business Entities. Four steps would also be explained and identified for taking to align
business systems and operations and examination of contribution of the organizational culture
compliance while leveraging competitive advantages. Moreover, strategies would be
implemented and two internal and external compliance requirements for Spark Limited. Risk
management process with identification of illustrated flow chart and assessment of two risks
for both the internal and external stakeholders. A risk management framework would also be
provided in this report.

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Discussion
Task 1
1.1 Analysis of Two Impacts of Globalization on New Zealand Business Entities with
Evaluation of Two Opportunities for New Zealand Businesses
New Zealand Business Entity refers to the organization that is being created by one
and more natural persons for the core purpose of carrying out any business or trade. Few of
the business entities are being considered for the federal tax purpose for being not different
from the owner (Kolkowska & Dhillon, 2013). The business entities like sole proprietorship,
partnership, LLC or Limited Liability Company and corporation. Globalization can be stated
as the core procedure of international integration that results from the continuous inter
changing of ideas, products and other cultural aspects.
This significant procedure of globalization within the modern day is being caused by
the advancements in telecommunication, infrastructure and transportation sectors. The
subsequent invention of the Internet has eventually led to the better international integration
promoting trade as well as several trade interests. The business entities of New Zealand have
continued their growth within the mobile telephony after providing proper convenience
within the process of globalization via globalized routing of data and trade. The
organizational members have the ability of networking and conducting business across the
entire globe.
The TPP or Trans Pacific Partnership Agreement is the distinctive proposed trading
agreement between Canada, Japan, New Zealand, the United States, Peru, Chile, Australia,
Vietnam, Mexico, Singapore, Malaysia and Brunei (Putri & Hovav, 2014). This particular
agreement of TPP eventually incorporates most of the provisions for lowering the tariff and
non-tariff trade barriers for establishment of proper mechanism. Two distinctive impacts of
globalization on the Spark New Zealand Limited are as follows:

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i) Uneven Distribution of Profits: The first and the foremost impact of globalization
on the Spark New Zealand Limited for organizational compliance is the uneven distribution
of profits. Since the company’s legal aspects and compliance is completely dependent on the
current scenario of the company, it is extremely vital that the efforts of the organizational
members are being imposed on the labour standards (Paulsen, 2017). The standard legislation
in Spark New Zealand Limited is required to be maintained by each and every staff or
employee after gaining non-binding guidelines for any kind of activity. The penalties for any
type of noncompliance in this particular organization are quite higher and thus the
organization often faces loss and there is an uneven distribution of profits in Spark.
ii) Higher Competition: The next important and significant impact of this
globalization over the organization of Spark New Zealand Limited is high competition. There
are several other similar organizations in New Zealand that have gain utmost popularity in
their business, however Spark being one of the most significant telecommunications
organization, there could be utmost competition between them (Li et al., 2014). The anti-
globalization subsequently claim that the competition is induced by the globalization and
hence firms are led to ignore. This type of higher competition could even be quite degrading
for the growth of their business. Resources are also utilized for better organizational growth
and development in Spark Limited.
Two distinctive opportunities or benefits of globalization within Spark New Zealand
Limited are as follows:
i) Larger Customer Base: The first and the most important and significant
opportunity that Spark New Zealand Limited is that they would be getting larger customer
base. The developments of the business would be having higher potential in reaching to the
significant larger customer base. It substantially refers to the large volumes of exchange and

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sales, large growth rates within GDP and also more empowerment of the business systems
and individuals via the proper acquisition of capital and the additional resources. All of these
advantages of globalization is viewed as the utilities in Spark after providing the most
prominent benefits for the larger customers’ base in the entire world.
ii) Expansion of Developing Markets: Since, Spark New Zealand Limited is a
multinational company in New Zealand, they would be gaining higher benefits like expansion
of the developing markets. Due to the cost effectiveness of the products in this particular
organization, they are getting better customer base and thus the business is being expanded in
the developing markets (Knuplesch et al., 2013). The technological developments have made
the business doing in a better manner internationally in convenient to the others. These types
of developments select in operating internationally since they could achieve high level of
revenue and since they could achieve low cost structure in the business operations.
1.2 Identification of Four Steps that New Zealand Business Entities taking Alignment to
Operations and Business Systems with Global Business Practices
Spark New Zealand Limited falls under the category of New Zealand Business Entity.
They could easily and promptly undertake for aligning the basic business systems and
business operations with the globalized business practices. The significant four steps for this
purpose in Spark New Zealand Limited are as follows:
i) The first and the foremost step for the alignment of business operations and
business systems is the proper outlining of organizational mission, resources, programs,
required supported areas and vision (D'Arcy & Greene, 2014). This particular step eventually
refers to the fact that there is no issue or problem related to the organizational operations and
systems. Hence, the alignment planning process for their strategic planning is being executed
properly and without any type of complexity.

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ii) The second step in this specific process of alignment of business operations and
business systems to the globalized business processes within Spark New Zealand Limited is
the proper and efficient identification of the working process of the business operation and
what is required to be adjusted in this scenario (Martinez-Moyano, McCaffrey & Oliva,
2013). The strategic planning approach for the core purpose of ensuring that the
organizational direction is to be identified as well as defined properly. This particular step
helps in determining the core link between the operations and strategies of the company.
iii) The third distinctive step for alignment process of business systems with global
business processes is the effective identification of how the adjustments are to be made and
the best approach to be determined properly. The third step is extremely important for the
business for the purpose of establishing business alignment.
iv) The final step in this type of alignment process in Spark New Zealand Limited is
the inclusion of adjustments as the strategies within the road map and strategic plan with the
proper alignment path (Cole & Salimath, 2013). The operational reality and business
strategies are effectively and efficiently maintained and followed for proper execution of
strategies. The organizational alignment is much better with this step.
1.3 Critical Examination of Contribution of Organizational Culture Compliance for
leveraging Competitive Advantages
The contribution of the organizational culture compliance in Spark New Zealand
Limited for the core purpose of leveraging the most significant competitive advantages.
Without the ethical as well as the compliant culture, this particular organization would be at
major risk (Goo, Yim & Kim, 2013). The senior employees of Spark Limited eventually
believe that the mission of the company is required to be followed and the organizational
potential should be recognized for completing the task in a better manner. The employers

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have to find the stronger foundation for building up from appealing to the masses. It could be
done within two inter linked methods of compliance and culture and the organizational
management has built the culture of compliance. There are three aspects of organizational
culture of compliance, which are technology, people and process. The technology includes
risk assessment and due diligence, governance and leadership, third party compliance, testing
and monitoring, employee reporting, case management and investigation, standards,
procedures and policies, continuous improvement and training and communication (Safa,
Von Solms & Furnell, 2016). The engagement and productivity are at stake and hence
business leaders can ensure that Spark Limited is providing subsequent advantages to the
employees and staffs. Due to the better positioning and prospecting, it is much easier for
them to gain competitive advantages.
1.4 Suggestion of Four Strategies for New Zealand Business Entity in Implementation of
Development of Organizational Culture conductive to Compliance
Four strategies for the organization of Spark New Zealand Limited to implement the
development of the organizational culture in conduction to compliance are as follows:
i) Creation of Procedures and Policies: The first and the foremost strategy for this
particular organization of Spark Limited is the subsequent creation of major policies and
procedures. A well-defined code of conduct with the organizational procedures and policies
are the core foundations of the compliance program as well as the ultimate purpose to secure
the company from any kind of risks.
ii) Training and Education to the Staffs: The next significant and important strategy
for Spark New Zealand Limited is providing proper training and education to the
organizational staffs and members (Jain, Giga & Cooper, 2013). The policies and procedures
are required to be understood by the organizational members effectively so competing this

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type of training and education. The ongoing training on the basis of risk areas is extremely
important to maintain an active compliance culture.
iii) Better Communication: The third distinct suggestion to Spark Limited is the
effective and efficient communication. The proper maintenance of open lines of
communication within the management and employees is extremely important for the proper
identification of risk areas (Lee, Kim & Kim, 2013). An environment is being created, in
which the organizational members could work securely and properly.
iv) Carrying out of Internal Audits: The final suggestion of strategy to Spark
Limited is proper carrying out of internal audits. By conduction of regular audits, the
management can easily identify the risk areas even before they are becoming a major
problem and then prioritize the areas of improvement or even gaining a deep understanding
of the existing procedures and processes.
1.5 Two Strategies leading to a Competitive Advantage for Business Entity with proper
Example
Two strategies out of the four strategies suggested for this organization of Spark New
Zealand Limited that could eventually lead to the competitive advantages for the business
entity are creation of procedures and policies and carrying out of the internal audits.
i) Contribution of creation of procedures and policies: The most significant
contribution of creating several well defined processes and policies in Spark is majorly
responsible for resolving the complexities of employee management and also maintenance of
compliance in the organizational management (Jaffery, 2014). Moreover, with such policies,
it is much easier to understand the gaps and issues that are present in the existing policies and
the procedures by which these could be resolved efficiently. A strategic decision process is
eventually guided and hence the implementation effectiveness is maintained properly.

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ii) Contribution of carrying out of the internal audits: The next suggestion of
strategy that could be effective for Spark New Zealand Limited is carrying out of periodical
internal audits. These types of internal audits are solely responsible for identifying the issues
or risks prevailing in business and these could be dangerous for the company. The audit
efficiency and effectiveness is required to be improved and processes are streamlined for
driving the cost savings (Adelstein & Clegg, 2016). Competitive advantages are hence
obtained by the subsequent contribution of sustainable business improvements. For example,
with the help of processes and policies, an organization can find out which employees are not
maintaining rules and regulations for the execution of their work and if anyone is found
guilty, he or she could be straightway imposed with penalty.
1.6 Identification of Two Internal and Two External Compliance Requirements for
Spark New Zealand Limited
There are two distinct types of compliance requirements in Spark New Zealand
Limited, which are internal and external. The internal compliance requirements are majorly
needed by the state governments for the significant business entities like LLCs and
corporations and they are formed as well as enforced internally by the organizational higher
authority staffs and employees (Gray & Silbey, 2014). The external compliance requirements
can be referred to the requirements that are being imposed and enforced by the federal and
state authority.
The proper identification of the two internal compliance requirements for the
organization of Spark New Zealand Limited is required for ensuring that the corporation is
being run with free of corruption and integrity. These corporations comprise of strict internal
requirements like forming of a board of director, conduction of initial as well as periodical
meetings, creation and up gradation of bylaws, providing stock to the shareholders and even

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transcribing every stock transfer (Feeley, 2017). The document template or compliance kit
could be assisting to organize and fulfil the internal compliance requirements.
The external requirements of compliance are being sanctioned by the country of New
Zealand for Spark Limited. The major external requirements include franchise tax, annual
report or statement and the Fair Labour Standards Act. The franchise tax is the most vital
requirement that is to be paid to the government of New Zealand. The amount of tax
eventually is dependent on the state to collect it and then is determined by the formulas that
are on the basis of variety of criterion like collection of annual revenue and shares issued at
par value by Spark.
1.7 Evaluation of Eight Risk Factors for Non-Compliance of the Compliance
Requirements
The eight risk factors for the noncompliance of the compliance requirements are as
follows:
i) Environmental Risk: The first and the foremost risk factor for noncompliance of
compliance requirement is environmental risk (Jaafar & Ajis, 2013). Since, Spark New
Zealand Limited is dealing with telecommunication aspects, it is extremely mandatory to
ensure that the potential for damage to the environment is quite high and organizational
activities should be checked efficiently.
ii) Work place Safety and Security: The second risk factor for noncompliance of
compliance requirement in Spark Limited is work place safety and security. The risks related
to every aspect of safety and security like accidents or strain injuries are to be maintained
under every circumstance. This type of safety and security within the work place is required
to be maintained properly.

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iii) Corrupted Practices: The next significant risk factor is the corrupted practices
(Pierro et al., 2013). The potential for the corrupt practices like fraud or bribery is required to
be avoided so that it is being managed effectively.
iv) Lack of Social Responsibility: Another subsequent risk factor is the lack of social
responsibility. Spark should maintain their social responsibility under every circumstance and
so that the business activities are harming their employees and staffs, where they are being
operating.
v) Lack of Quality: The next significant risk factor for the noncompliance in Spark is
the lack of quality (Silbey, 2013). The release of a lower quality service and product, which
fails in meeting the expected level of due diligence within the organization and even which
violates the regulations and laws.
vi) Process Risk: The sixth risk factor within Spark New Zealand Limited is the
process risk. This risk in the processes would be a failure in the legal violations like failure in
meeting the core responsibilities for the partners and customers. The process failures could
even result in accounting errors and reporting of errors, which could breach the duties to the
investors.
vii) Ethical Misconduct: Another significant risk factor in Spark is ethical
misconduct (Haviland, 2014). If the employees would be found breaching any data or
information, the management should undertake proper measures.
viii) Lack of Interactive Globalized Compliance: The next subsequent risk factor
within Spark is the lack of interactive global compliance.

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Start
Identification of
Risks
Analysis of Risks
Evaluation of Risks
Treating of Risks
Monitoring of Risks
Stop
ORGANIZATIONAL COMPLIANCE
Task 2
2.1 Description of Risk Management Process with Flow Chart and Analysis of Each
Step in Planning and Implementation
The risk management process flowchart is as follows:
Figure 1: Flowchart of Risk Management Process

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(Source: Created by the Author in MS Word)
The above provided flowchart of risk management process demonstrates the steps of
management of risk. The steps are as follows:
i) Start: This is the first step in the process, where risk management is started.
ii) Identification of Risk: In the second step, the major risks are properly identified in
the company.
iii) Analysis of Risk: After risk identification, risk is analysed and likelihood and
consequences are analysed.
iv) Evaluation of Risk: The fourth step in this process is risk evaluation. The risk
magnitude is being determined and thus risk evaluation is important.
v) Treating of Risk: The next step in the risk management process is the treating of
risk. It is also termed as risk response planning. The highest ranked risks are assessed and
thus acceptable risk levels are achieved.
vi) Monitoring of Risk: The project risk register is required to be monitored after
bringing treated and thus tracking and monitoring of risks is much easier.
vii) Stop: The final step in this flow chart is stop.
2.2 Assessment of Two Risks for both Internal and External Stakeholders for the
Possible Impacts on Business Strategy and Objectives with Mitigation Strategy
Two risks for internal stakeholders for impacts on business strategy and objectives
with the mitigation strategies are as follows:
i) Ineffective Leadership and Management: The first risk for the internal stakeholder
for the core impacts on business strategy is the ineffective leadership and management

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(Liang, Xue & Wu, 2013). This type of ineffective leadership and management could be
extremely vulnerable for the organizational management. The mitigation strategy for this risk
is to conduct periodical meeting with the employees.
ii) Dishonesty by Employees: The next risk for internal stakeholder is dishonesty by
employees. Any type of dishonesty could lead to loss of resources of the organization (Posey,
Roberts & Lowry, 2015). Imposing of penalty on the dishonest employees is an important
mitigation strategy of this risk.
Two risks for external stakeholders for impacts on business strategy and objectives
with the mitigation strategies are as follows:
i) Different Customer Demands: The different customer’s demands is a significant
risk in any organization and hence this could be a major issue for the business. The mitigation
strategy for this specific risk is to notify the customers beforehand and thus managing the
risks effectively.
ii) Issues with Investors and Creditors: There could be various issues with the
organizational investors and creditors (Ferrell, 2016). The mitigation strategy for this risk is
to deal with these investors and creditors in an efficient manner.
2.3 Development of Risk Management Framework for Selected New Zealand Business
Entity
For the incrementing number of several regulations as well as the requirement of
operational transparency, the companies are increasingly adopting the proper utilization of
the harmonized and consolidated compliance control sets (Knuplesch et al., 2013). The
approach is being utilized for ensuring that every necessary governance requirement is being
met without any unnecessary effort or activity duplication from the relevant resources. Most
of the organizations keep the compliance data, these data pertaining or belonging to the

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enterprise that could be utilized to implement or validate compliance so that the reporting
requirements are being met effectively. The entire concept of this compliance is to ensure that
the corporations are acting responsibly. Positive reputation is being built and thus the success
of the organization is dependent on the public image (Merhi & Ahluwalia, 2013). When the
organization is starting to face any type of difficulty, this compliance would ensure that the
organization is upholding a positive image and even building consumer tests. High
productivity is majorly enhanced with this organizational compliance and hence rules are
being maintained eventually.
The risk management framework including a risk register for Spark New Zealand
Limited is as follows:
Serial
Numbe
r
Type of
Risk
Risk Description Risk
Impact
Mitigation Strategy
1. Internal Ineffective Leadership
and Management
Medium Conduction of Periodical
Meetings with employees.
2. Internal Dishonesty by
Employees
High Imposing of penalty and
even termination from
organization.
3. External Different customers’
demands
Low Regular notification and
progress report to clients.
4. External Issues with Investors
and Creditors
Medium Proper communication
and understanding gaps.
Table 1: Risk Register
(Source: Created by the Author in MS Word)

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Conclusion
Therefore, from the above discussion, it can be concluded that organizational
compliance is extremely important or vital for each and every organization. The presence of
compliance in a business refers to the fact that each and every law and regulation is being
followed by the company in respect to how they are managing their business, staffs as well as
treatment to the clients. The risk management can be referred to as the proper identification,
evaluation and even prioritization of risks that are being followed by the economical and
coordinated resource application for the core purposes of minimization, monitoring and even
controlling the impact or probability of the unfortunate events and even for maximization of
the opportunity realization. These risks could come from several sources like uncertainty
within the financial markets or even threats from the project failures.
The strategies that are responsible for managing threats after including avoidance of
threat and hence reducing the negative effect of that threat and thus transfer of threat to the
other is being utilized properly. Various aspects of these risk management standards are
considered for reducing each and every risk in the business. The above provided report has
clearly outlined the organizational compliance and risk management for a distinctive
organization called Spark New Zealand Limited. Various details regarding this particular
organization is clearly described here. Furthermore, risk management process is also
provided here with subsequent analysis for Spark New Zealand Limited.

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