Impact of Global Factors on Business: Roscommon Liquor - Assignment 2

This report examines the impact of global factors on the operations of Roscommon Liquor, a company based in Auckland, New Zealand. It explores the influence of political, economic, and legal systems, highlighting the effects of political regulations and economic conditions on the liquor industry. The report delves into cultural challenges, emphasizing the importance of understanding cultural differences and bicultural partnerships, particularly in the context of the Treaty of Waitangi. It also discusses various strategies and management techniques, including discounts, promotions, and ethical considerations, to improve sales and navigate the complexities of the business environment. The analysis considers the impact of cultural differences, communication barriers, and the need for multiculturalism within the organization. Furthermore, the report assesses complex situations, attitudes, and the importance of acquiring knowledge, partnerships, and the future of Maori businesses within the industry. Overall, the report provides a comprehensive overview of the challenges and opportunities faced by Roscommon Liquor in a globalized market.

Managing Business Environmental Factor STUDENT ID-103594
Assignment-2
NAME-DALJEET SINGH
STUDENT ID-103594
DUE DATE-31-january-2020
1 | P a g e

Managing Business Environmental Factor STUDENT ID-103594
2 | P a g e

Managing Business Environmental Factor STUDENT ID-103594
Table of Contents
Introduction......................................................................................................................................2
Impact of operating in a global context...........................................................................................2
Impact of operating in a global context in the political system...............................................2
Cultural challenges..................................................................................................................3
Strategies and management techniques...................................................................................4
Discounts and cross-promotion...............................................................................................5
Promotional ideas....................................................................................................................5
Product Bundles and Liquor Store Promotions.......................................................................5
Events Can Improve Liquor Store Sales..................................................................................5
Bicultural partnership in New Zealand....................................................................................6
Complex situations or challenges............................................................................................7
Attitude problem......................................................................................................................7
Acquiring the right knowledge and expert..............................................................................7
Partnering.................................................................................................................................8
Maori business future..............................................................................................................8
Conclusion.......................................................................................................................................8
References......................................................................................................................................10
3 | P a g e

Managing Business Environmental Factor STUDENT ID-103594
Research report
 Section-1
Introduction
The research deals with the impact made on the organization due to its operations from a global
perspective. Moreover, the report concerns the effect made on the goals and objectives of the
organization due to the implication of the operations carried out globally. Moreover, factors like
culture economy and social aspects are taken into consideration for the growth of the business.
moreover, as per the organization is based in New Zealand, it is important to understand the
impact of the bicultural partnership on the organization and how it can be applied in order to
understand the problems and challenges faced by the organization in any specific region. As far
as cultural diversity is concerned, the treaty of Waitangi is needed to be taken into consideration
for the purpose of identifying how bicultural partnership can be understood in the most effective
manner.
Here, the chosen organization is a liquor company, Roscommon Liquor. Roscommon Liquor is
an organization based in Auckland, New Zealand. The company has been effective from October
20, 2006. Roscommon has an entity of a Ltd. Company. The company has a registered office in
Auckland. The service are provided in Auckland at ManurewaInvalid source specified.
.
 Section-2
4 | P a g e

Managing Business Environmental Factor STUDENT ID-103594
Impact of operating in a global context:-
Impact of operating in a global context in the political system
Politics are the major manifesto in the business of New Zealand. With the major outcome of
politics in the field of New Zealand, there was an uprise of almost ten out of seven businesses in
New Zealand. With the recent outbreaks and elections in New Zealand politics has been
widespread in not only liquor but other forms of business in New Zealand.
The consumption of alcohol and this brings associated with it is in an overall increase with the
highest of the business in New Zealand. Politics has been a wide part of the influence of the
liquor business in New Zealand. Politicians from different genres of politics with a high rise in
the influence of politics are highly objectionable to the business of liquor and favor the rise of
high taxes in the business of alcohol. The biggest example of the rise of taxes in alcohol is that
the political system is trying to reduce the harm of taxpayers of alcohol. Especially they are
concentrating on the facts of roadside accidents and the verbally abused nondrinkers by the
drinkers.
From the political genre, the “political left” is completely at the forefront of such regulations. As
per the advice from the politicians, there must be something in common to reduce the harm on
nondrinkers and other New Zealanders. On the other hand, the “far-right” think that there should
be no further changes in the mode of regulations in the alcohol system as it might harm more to
the taxpaying organization and as well as nondrinkers.
While there is a high rise in the regulations to reduce the effects of alcohol there also might be a
chance that the operating companies in the alcohol business like the "Roscommon" will surely
5 | P a g e

Managing Business Environmental Factor STUDENT ID-103594
oppose such regulatory changes as well as fiscal governmental rules. In the history of New
Zealand, there has been often an uprise and revolts whenever there have been new regulations
brought into being and thus the alcohol sellers will refuse and rebuses to the up bring of the
regulations with higher taxes in the liquor industry
Impact on the economic prospects
The alcohol industry has taken onto the larger impacts of the US. There has been a lot of growth
in the US economy due to the consumption of alcohol. Including the wages as well as the overall
process of the economy there has been a rise of almost 3500$ billion in the US. The alcohol
industry is almost summoned of around almost 75000 jobs all across the US. There has also been
a major rise in the productivity of the economy of the US with the economy rising almost 5.5%
of the whole of the economy. Specifically, contentions around pay, work and exchange are
routinely utilized by the liquor business to oppose measures to dishearten utilization and
mischief. Such contentions are introduced on the suspicion that an effective liquor industry is
advantageous to the US economy.
Impact on the legal system
Society has always been a victim due to the consumption of alcohol. The laws and the legal
system has always been a witness to the numerous changes the consumption of alcohol brings
around in society. This has been witnessed at several levels due to the legal changes like the
production, implications as well as consumption. Laws and legal systems face a lot of endurance
due to the consumption of alcohol. Over 11,000 people die every year due to the drinking and
driving cases. It incurs lifelong jail, loss of employment, loss of court's custody and also loss of
6 | P a g e

Managing Business Environmental Factor STUDENT ID-103594
life. The legal system faces a lot of issues while the consumption of alcohol has rapidly increased
in the state of the US. The numbers are counting over 2 billion in the state of California, Texas,
Florida, and New York. These are the counts of the convicts who faces more than 48hour in jail
and also is imposed with a lot number of fines for driving under the influence of alcohol.
 Section-3
Cultural challenges
As per the chosen organization that is the Roscommon Liquor store, there are certain cultural
implications on the business of the organization in the global perspective as per the context of
operating (Glynn, 2015). Also, for the organization that is based in New Zealand, it is necessary
to identify that the growth of the business can only be provided if the various challenges are
efficiently faced. Moreover, cultural differences are considered to be one of the prominent
challenges. This is the reason why the global operating of the Roscommon can be more focused
only if cultural diversity is taken into consideration in a positive manner. Hence, here are the
challenges that the business will be facing in order to grow their business by facing the cultural
aspects of the region.
There are many challenges that can be faced with cultural differences. With the growth of the
organization in region-wise, there are opportunities for the company to grow its business.
However, the need for the organization to keep the growth at the same pace is all the
organization needs to face the various kinds of challenges like social, ethical as well as cultural
challenges.
Here are the cultural challenges faced by the organization in terms of operating in a global
perspective:
7 | P a g e

Managing Business Environmental Factor STUDENT ID-103594
 For different regions, the cultural difference is able to make an impact on the business of
the organization. As the organization is a type of hospitality, there is a need for
understanding the needs of the target customers of the culture that is needed to be
targeted in order to support the growth of the business (Van Munching, 1997).
For this, the cultural implication is needed to be adopted by the organization so that the
customers get attracted and overwhelmed by the values provided by the organization.
 Communication is one of the barriers that the organization can face while operating the
business in a global context. However, communication is needed to be effective in order
to get the desired success of the business.
 Roscommon must be looking for better performance in this section in order to
successfully avoid the challenges faced by the lack of communication. While, English
being the universal language, there can be regions where the native languages are
preferred. Also, the organization must have the staff and employees that are professional
in the way of speaking the native language.
 The individuals irrespective of the culture must be provided with the opportunities. Also,
within the organization, there is a need for fostering multiculturalism. Even in the case of
biculturalism, it is necessary to understand the challenges arises due to cultural
difference.
Taking an example for the cultural impact, there is a huge social cost to liquor and therefore the
change in the whole system to address the problem. The government of New Zealand spends a
fortune in healthcare. There is an increasing need for controlling alcohol related issues in New
Zealand. People face the challenge of fighting against the system. There are a set of transitions
8 | P a g e

Managing Business Environmental Factor STUDENT ID-103594
and social behaviors that surround the consumption of liquor in New Zealand and these affect the
way in which Roscommon Liquor store carries out its businesses. The local authorities where
Roscommon Liquor store is situated have declared some liquor free zones neighboring the area
and hence this culture of liquor free zones gives room for only limited quantity of alcohol to be
taken. The bylaws also allow for liquor to be consumed only on designated areas hence the space
for customers in Roscommon Liquor store is sometimes limited. The community where
Roscommon Liquor store operates has a widespread cultural acceptance of drinking and it is part
of social life. However, other cultural beliefs do not support the idea of drinking as part of social
life since drinking makes most of the community members intoxicated. Due to these cultural
differences, Roscommon Liquor store finds it hard to operate in New Zealand.
 Section-4
Strategies and management techniques
With the highest of the obligations in the business of liquor as well as a lot of endurance into that
which makes it large, the liquor business industry needs to adopt some of the marketing
strategies. These are the endurances that will make it large for them to foreplay their profit and
making it large dogging the legal system. For instance, the strategies and the management
techniques are capable of affecting the operations in the organization. In case of Roscommon
Liquor, these strategies are capable of helping in generating more sales and improving the return
on investment. Hence, these strategies are capable of improving the growth of the business.
9 | P a g e

Managing Business Environmental Factor STUDENT ID-103594
Discounts and cross-promotion
The most common of the foreplay is increasing discounts and enlarging the business. To attract
more and more of the customers the common way is to make big discounts and collaborating it
to three of the same brand. This often tends to increase the sale of the liquor and also a cross-
product promotion. Moreover, this also ensures that it is at all the best way to sell and bargain for
customers. This marketing strategy a management technique will often attract the sum of
customers more and more into the business of liquor.
Promotional ideas
Steadfastness programs are a typical practice to urge clients to shop only in your alcohol stores.
In any case, numerous clients discover the advantages of immaterial and not worth the problem.
You can recover those clients accompanying receipt coupons. Coupons have a one of a kind bit
of leeway over point-unwaveringness programs. They give the vendor the alternative to control
when you might want the client to return.
Proper Code for Advertising and promotion of Alcohol
Proper code of ethics will assist in solving the cultural differences since the promotion
will have its targets ready. Proper code will also ensure that all alcoholic drinks that are packed
in bulk and the liquor with alcohol above 1.5% (Sibley C. G., 2004). Proper code of ethics will
also be important in ensuring that liquor stores open at the required time and that people do not
drink alcohol during working hours. Proper code of ethics will lead to minimal conflicts with the
authorities and this will bring about increased sales for Roscommon Liquor (Came, 2016).
Adherence to the Legal Regulations
10 | P a g e

Managing Business Environmental Factor STUDENT ID-103594
New Zealand suffers from inappropriate and excessive consumption of alcohol. The latter
has been a major cause of social harm. Liquor is the most common recreational drug in New
Zealand. A great number of police tackle in alcohol related incidents including violent offending,
homicides, family violence and ensuring the safety of intoxicated people or the people around
them. Roscommon Liquor is supposed to consider the responsible sale and supply of alcohol in
the community where it operates from. Roscommon Liquor is not supposed to sell to underage
people. If the firm adheres to the rules and regulations as required by the law, then it will face
minimal conflicts with those in authorities hence make sales smoothly.
Events Can Improve Liquor Store Sales
Shopping in physical stores has a great deal to do with the shopping experience. Contending with
online shops and conveyance administrations is troublesome, yet something that is difficult to
supplant is the experience of really strolling through a store (Rata, 2005). An incredible method
for making the shopping experience to another level is by facilitating occasions or exhibiting
certain items. Clearly, this requires additionally arranging and publicizing which will accompany
 Section-5
Bicultural partnership in New Zealand
Due to the bicultural partnership in New Zealand which was all done because of the T1reaty of
Waitangi formulating the bringing of Maori and the non-Maori tribes recognizing them as proper
British subjects The Treaty of Waitangi, as well as the bicultural partnership in New Zealand,
plays quite an important part in uprising the forefronts of the business in New Zealand.
11 | P a g e

Managing Business Environmental Factor STUDENT ID-103594
The Treaty of Waitangi signed in the late 1840s resulted in the British crown’s signing a relevant
peace subsidiary between them and the Maori chief (Culpitt, 1994). This has also been in the
upfront likewise because the British wanted to colonize New Zealand before any other powers
get their control on it.
The Treaty of Waitangi affected the Roscommon Liquor and other businesses in New
Zealand in several ways. The treaty affected business activities and also the people’s way of
living. Land ownership is a major factor that affects construction of business premises.
Roscommon Liquor was affected since the land where it is located had been taken by the British
colony. The activities of Roscommon Liquor were disrupted and the business in the long run
realized reduced rates of return.
Most importantly the treaty has affected the lives of the New Zealanders in many a form.
Because the Maori were the original people of this land (Sibley C. G., towards the general
principles and resource-specific aspects of bicultural policy, 2004). The treaty of Waitangi has
resulted in a widespread of larger settlements. Most evidently this treaty has also enabled job
opportunities for the Maoris in overall all of the industries like the “Roscommon liquor” and the
“Wakatu corporate” (McLeod, 2011). The TOW gives and enables the Maori the same rights
and ensures them in actively taking part in business and welfare. Treaty of Waitangi ensures the
right to all the Maoris to indulge in economic activities like fisheries which ensures a huge flow
of economy in New Zealand. The TOW or as the Queen of England states that the tribes or the
Maoris can indulge in fishing trades and practices as long as they don't retain it. It also mentions
equality and justice with respect to equal opportunities in culture and business for the Maoris.
12 | P a g e