Impact of Political System and Cultural Challenges on The Warehouse Group

This research report discusses the impact of political system and cultural challenges on The Warehouse Group while operating at the global level. It also explores strategies and management techniques to overcome these challenges. The report focuses on the bicultural partnership in New Zealand and its implications for the organization.

Research report
Table of Contents

Section 1: INTRODUCTION..........................................................................................................1
Report- body:...................................................................................................................................1
Section 2:.........................................................................................................................................1
Political, economic and Legal system....................................................................................1
Section 3:.........................................................................................................................................3
Cultural/ Social/ Ethical challenges........................................................................................3
Section 4:.........................................................................................................................................4
Strategies & Management Techniques...................................................................................4
Section 5:.........................................................................................................................................5
Bicultural Partnership in New Zealand..................................................................................5
Section 6:.........................................................................................................................................7
Complex situation or challenge..............................................................................................7
Section 7: Conclusion......................................................................................................................8
REFERENCES................................................................................................................................9

Section 1: INTRODUCTION
Operating at the global level is a vital task and requires many skills and competencies
along with the better implication of better management strategies and techniques. Thus, the main
purpose of current research project is evaluating about the political system and its implication
and impact on an organisation while operating at the global level (Giorgi, Procaccini and Khalili,
2019). Further, the purpose of this report also includes indentifying the cultural and ethical
challenges that are faced by an orgnisation while operating at the global level along with analysis
of its impact on local operation of the firm. This report also includes the best practice in
international business strategies and management techniques that are used to solve the issues in
the global context. Beside this, the current assignment also aims at determining the principles of
bicultural partnership along with principle of Treaty of Waitangi.
The Warehouse group is selected for current research project that was founded by
Stephen Tindall in 1982, and is considered as one of the largest retail group operating in New
Zealand (The Warehouse Group, 2020). The Headquarter of warehouse group is situated at
Northcote, Auckland and it basically consists of The Warehouse, Noel Leeming, Torpedo7,
Warehouse Stationery and The Market. At present this orgnisation is having around 260+ online
stores and with a manpower of more than 12000 employees working at diversified places in
New Zealand along with two overseas branches at China and India.
Report- body:
Section 2:
Political, economic and Legal system
The Warehouse group is one of the largest retailing groups in New Zealand with around
260+stores online stores and effective distribution centres across the various location of New
Zealand. Besides this, the Warehouse Group is also having two of its branches at overseas that
consists of its office Located at China and India (The Warehouse, 2020). This organisation is
people centred business thus, to ensure best services for its customers Warehouse group is
having a workforce of more than 12000 employees across diversified locations. Thus, The
Warehouse company is making enhanced efforts to have better reach and assess at global level.
Operating an the global market lead to many crucial impacts on business operation of an
orgnisation that consists of many political, economical and legal systems. A discussion about
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impact of political on business operations of The Warehouse while operating at global level is
provided below:
Political system- It basically represent the process of making official government
decisions of a nation and comprises of political parties and various strategies and policies made
by tem to regulate and have control on operation and business transactions of a nation (Political
Factors Affecting Business, 2020). Thus, political system lead to a crucial impact on the
organisation as it consist the all policies and strategies associated with international trade and
global transactions. Thus, it could be evaluated that operating at global level will lead to impact
on business operations of The Warehouse as it need to make strategies and policies as per the
political system of nation in which it wants to operate or expand its business operation. The
impact of political system on The Warehouse company consist of externally induced financial
constraints and externally imposed limits on imports or exports, especially in case of embargoes
or any economic sanctions against the host country. Thus, it could be evaluated that political
stability and mitigation risk are two main factors along with Bureaucracy, Tariffs Trade control,
Employment law, Tax policy i.e. tax rates and incentives, Government stability and related
changes, import restrictions on quality and quantity of product are the some main factors of
Political systems that lead to effect in business operation of The Warehouse while operating at
global level (Alley, 2018).
Thus, operating at global level would also lead to significant effect on organisation’s
goals, processes and business activities in domestic or local market. As while operating at global
level The Warehouse Company needs to focus on the changes going on at international market
thus, needs to cope up with the challenges of global market that creates significant changes in its
testacies and polices at local level also thus, it would also impact its goals and strategies in New
Zealand. The biggest change that would be lead it its goal whole operating at global level would
include the more focus and emphasis on quality of product and services to order to attract and
cater customers at global level also with changes in the objective that would also more focused in
better expansion at international level (da Silva and Dobránszki, 2016). Thus, it can be evaluated
that operating at global level would lead to a significant change in the goals and strategies of the
Warehouse at local level across the New Zealand.
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Section 3:
Cultural/ Social/ Ethical challenges
While operating at global level many cultural, social and ethical challenges are also faced by
an orgnisation that are mainly related with diversified cultures, luggage and other social and
ethical implication of diversified nations. Thus, the main cultural and ethical challenges that are
faced by The Warehouse group while operating at global level are discussed below:
Cultural challenge- While operating at global level the biggest challenge that is faced by an
orgnisation that can hamper its success and expansion consists of cultural barriers. The most
common and biggest challenge associated with the cultural barriers consist of difficulty in
understanding each other's customs, language and other prcatises that results in inconveniences
and could hamper and limit the business of an organisation at global level (Searight, 2019). In
context of the Warehouse group the main challenge that would be encountered by this
organisation while operating at global level consist of difficult in dealing with the people who
belongs to different cultures and have different communication and language in use which
became barriers for its operations at global level and also lead to influence on its local strategies
and policies while operating in New Zealand.
Ethical Challenges- These barriers are associated with employment practices and ethics that
prevails in diversified nation at global level along with human rights, environmental pollution
and other moral obligation of a nations (Ethical Issues, 2020). Thus, it creates many challenges
and barriers for The Warehouse Group while operating at global level as it needs to make
changes and motivations in its strategies and ethical policies as per the practises and human
rights strategies of a nations that also lead to impact on its strategies and prcatises at local level
across its operation in New Zealand. Thus, ethical challenges faced by the Warehouse group
while operating at global level consist of ethical implication of diversified nation that consist of
human rights, employment and environment protection acts, etc that are essential to adopt for
The Warehouse while operating at global level (Searight, 2019).
Thus, with respect to above discussion it can be evaluated that operating at global level lead
to many issues and challenges for The warehouse group that consists of cultural barriers and
ethical implication and human rights of diversified countries (Loveless and Linton, 2019). Thus,
the organisation, The Warehouse should make considerable changes and modifications in its
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strategies and policies that would lead the considerable impact on its local goals and objectives
across its operation in New Zealand.
Section 4:
Strategies & Management Techniques
Implication of some effective strategies and management techniques is needed by The
Warehouse group to overcome the above sated issues of political system and discussed ethical
and cultural challenges. It has been evaluated that the instability in political system at global
level and diversified trade barriers and other changes in international rate and trade policies are
the biggest issues that are encountered by The Warehouse group while operating at global level
(Ienca, 2019). Whereas the main cultural challenges that is faced by the Warehouse Group
consist of lack of knowledge and difficulty in communicating with the people who belongs to
diversified culture. On the other hand main ethical challenges are associated with diversified
employment acts and human rights along with strategies for environmental protection that is
encountered and faced by The Warehouse group while operating at global level. Thus, the best
practice in international business strategies and management techniques that could be used by
The Warehouse group to solve the issues in a global context are stated as follows:
 Regular market analysis- It is the most suitable management strategy that could be
adopted by the Warehouse group to encounter the issues associated with political system
at global level as it focuses on identifying the changes going on in the business
environment (Wilson, Kenny and Dickson-Swift, 2018). It has been evaluated that the
instability in political system at global level and in diversified nation is the biggest issues
encountered by the Warehouse group, thus, conducting regular market analysis is useful
and suitable strategy for this organisation as it ensures better awareness and
understanding about the changes going on in the political system and other business
factors. Thus, conducting regular market research and evaluation is best technique for
manager of The warehouse group to ensure better strategy formulation to cope up with
and set a balance with political system at global level.
 Providing cultural training- It is also a suitable international management technique that
could be adopted by The Warehouse group as it ensures better cultural learning and
awareness in employees to set a balance and coordination with diversified people at
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global level (da Silva and Dobránszki, 2016). It has been evaluated that cultural barriers
and lack of effective communication is the biggest cultural challenge that is faced by The
Warehouse group at global level thus, providing effective cultural training and better
learning about the language and other norms and customs of international level to staff
and workforce is an effective approach to encounter the issue of cultural barriers and
communication by The warehouse group at international level.
 Focusing on welfare of employees and environment- The another way and technique
that could be adopted by The Warehouse group to encounter and overcome the ethical
challenges consists of focusing more on welfare of employees as it ensure better
implication of human rights and other employment act set by various nations at global
level (Giorgi, Procaccini and Khalili, 2019). Further, making efforts for protection of
environment and using only eco-friendly products are also effective ways that can be
adopted by the Warehouse group to ensure better growth and expansion at global level
through meeting and overcoming all ethical challenges.
Thus with respect to above discussion it can be evaluated that regular market analysis is a
vital management technique for the Warehouse group to meet the dynamic nature of political
system. Further providing regular cultural training is an effective way to ensure better
communication and interaction with people at global level and helps in ensuring cultural
challenges (Alley, 2018). Finally meeting the employees needs and ensuring environmental
protection are effective way to encounter ethical challenges by The Warehouse group to operate
successfully at global level.
Section 5:
Bicultural Partnership in New Zealand
In New Zealand the term bicultural is associated with the rights and partnership of Māori
and non-Māori. The Treaty of Waitangi was made to put in place a partnership between Māori
and the British Crown that was a curial treaty that governs the relationship between Māori - the
tangata whenua (indigenous people) - and everyone else, and ensures the rights of both Māori
and Pakeha (non-Māori) are protected in the New Zealand (Lourie, 2016). The main principles
that were lead by this Treaty of Waitangi and form a crucial part of the principles of bicultural
partnership in New Zealand consist of Protection, participation and partnership. Principle of
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Protection is associated with actively protecting Māori knowledge, interests, values, and other
tāonga along with making efforts to identity, language, and culture to be a culturally located
learner to ensure valuing, validating and protecting local knowledge (Biculturalism in New
Zealand, 2020). On the other hand Participation principle of Treaty of Waitangi and bicultural
partnership consist of a more emphasis on positive Māori involvement at all levels of education,
as expressed in NEG 9: “Increased participation and success by Māori through the advancement
of Māori educational initiatives, including education in Te Reo Māori, consistent with the
principles of the Treaty of Waitangi (Schubert-McArthur, 2019). The main principle that forms
part of this assignment is associated with Bicultural Partnership or principle of Partnership that is
discussed below:
Partnership- This principle of Bicultural partnership consist of a pact that Partnership in
New Zealand would involves working together with iwi, hapū, whānau and Māori communities
to develop strategies for Māori education. Further, this Bicultural partnership is required to
encourage and involves Maori at all level that consists of education sector, including decision-
making, planning, and development of curriculum along with having Māori representatives on
boards of trustees and equity for Māori along with proper power sharing with them (Hickford
and Jones, 2018).
Thus, on the basis of above discussion it can be evaluated that the Bicultural Partnership
in New Zealand lead to crucial impact and influence over the business activities of The
Warehouse group as it made it essential for this orgnisation to ensure proper participation and
involvement iwi, hapū, whānau and Māori communities in business activities. Further, the
Bicultural Partnership in New Zealand also emphasis and lead a challenge for The Warehouse
group through making it more vital and essential to share its power and equity for Māori
communities. Further, the Treaty of Waitangi has made it more essential and necessary for
orgnisation like The Warehouse group to emphasis more on the Maori customs and norms that
consists of Hongi and Moko, Te Reo Maori, The Haka and Powhiri (Reeves, 2018). Further the
main norms of New Zealand consist of democracy, the rule of law rather than being ruled
according to the whims of leaders along with the protection by government to ensure fairness
and equality and honesty. These customs and norms also have significant effect on business
operations and activities of The Warehouse as it made it necessary for this organisation to focus
more on the casting fairness and equality at its workplace along with formulation of business
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strategies and policies that are based by democracy and are fair for all employees who are
belonging to diversified culture and customs.
The main issues created by Treaty of Waitangi for The Warehouse group is associated
with the signed a Māori-language version that is wanting controls on sales of Māori land to
Europeans, and on European settlers but it’s not the case and they wanted to trade with
Europeans, and believed the new relationship with Britain would stop fighting between tribes but
still many challenges and issues are encountered by organisation like The Warehouse group
while making international trade and operating at global level (Rocha and Wanhalla, 2018). The
problem and challenges that are associated with Treaty of Waitangi is that the Government had
made laws which stopped individuals and organisations from living on and taking care of their
land in the ways that they always had done and the Government stopped Taranaki hapu from
controlling their lives that has destroyed their communities. Thus, it could be evaluated that the
biggest challenge lead by Treaty of Waitangi and Bicultural Partnership in New Zealand is
associated with leading better strategies and steps to bring equality and fairness along with the
principles and implication that still hamper the international trade and global operation of an
organization of New Zealand like The Warehouse group (Brewer and Andrews, 2016).
Section 6:
Complex situation or challenge
It could be evaluated with respect to above discussion that still a complex situation and
many challenges are there in New Zealand for operating a business successfully regarding the
Bicultural Partnership in New Zealand and the Treaty of Waitangi that is mainly associated with
the High expectations, Learning to learn, Treaty of Waitangi, Community engagement, Cultural
diversity, Coherence, Inclusion and Future focus. Further, this treaty also makes the government
held responsible for addressing the grievances of the indigenous people and establishes equality
in all New Zealanders under the law thus, lead to higher pressure on The Warehouse Company to
provide equal and fair chances to all within in its organisation (Orange, 2017). Thus, it can be
evaluated that main challenges arise because of Treaty of Waitangi is associated with having
rights on its own land and providing equal power sharing and partnership to Maori customs and
norms to fulfil the principles of partnership, participation and protection.
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Thus, the steps and strategies that could be made by The Warehouse group consist of
better strategy formulation to ensure proper implication of all principles of Treaty of Waitangi
and bicultural partnership in New Zealand to ensure free flow and effective business operations.
Further, leading policy of equality and fairness and providing equal growth opportunity and jobs
along with proper protection and participation of Maori committees is also an effective way to
overcome these issues in future (Hickford and Jones, 2018). Apart from this setting effective
communication channels and leading to unbiased management and leadership with proper power
sharing and equity with Maori communities and other Concepts of Whanau, Hapu, and Iwi is
also an effective way to ensure and meet these complex situation and encounter with them in
future. Thus, it can be evaluated that having a faire decision making and proper implication of
principles of Treaty of Waitangi along with leading effective communication and shared power
and proper management and leadership to direct and control employees of diversified culture is
an effective strategy that could be adopted by the Warehouse group to encounter and overcome
these issues more effectively in future (Brewer and Andrews, 2016).
The main issue and challenge that is faced by The Warehouse Group is associated with
the challenge of leading cultural diversity and equality at its workplace where both Maori and
non- Maori communities enjoys same rights and equal power sharing. This issue should be
encountered by The Warehouse group through leading effective and fair recruitment and
selection process along with ensuring a participative approach of leadership and fair HR
practises by The Warehouse group to ensure a positive and fair workplace environment. To cope
up with this issue of maintaining equality and diversity in future, implication of effective
communication can be made the Warehouse group to maintain a better coordination and balance
among Maori and non- Maori communities and workforce.
Section 7: Conclusion
With respect to above research it can be concluded that many issues are faced by an
orgnisation while operating at global level that are related with political system that consist of
inability and trade barriers that can be overcome by a firm through regular market analysis.
Further, it has been concluded that many cultural challenge and ethical challenge are also faced
at global level that could be overcome through regular cultural training. Further, it has been
summarised that the principles of bicultural partnership in New Zealand influences business
operation of an organisation along with the impact of principle of Treaty of Waitangi that consist
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proper partnership, participation and protection of both Maori and non- Maori communities. It
could also be summarised with respect to above research that maintaining equality and diversity
is a complex issues lead by Treaty of Waitangi that could be overcome by an organisation
through leading fair HR practises and effective communication with employees who belongs to
Maori and non- Maori communities.
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