New Zealand (NZ) business is the important source of income for NZ economy and the business is mainly divided into three types of industries that are Tier 1, Tier 2 and Tier 3.
Tier 1 is consists of Large companies whereas Tier 2 and Tier 3 belongs to Small and Medium Enterprises (SME). As New Zealand business is well known for export and import of dairy products to Australia and china. New Zealand also have various business related to IT, Animation, Finance, Construction and more over. Every business has their own characteristics and culture to be followed beside that they have to face some issues to run business smoothly.
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Characteristics of New Zealand businessNew Zealand business Characteristics are based according to the nature of business. Every business has their own goals and strategies that are followed to accomplish the objective. First of all, the main characteristic of New Zealand business that the business can be established by less capital as most of the companies in New Zealand are small and medium enterprises as NZ business market is changed to free market. As a result of that according to Immigration, 2018 we are now the second easiest place in the world to do business, according to the World Bank in 2018 (and first for ease of starting a business).
Secondly, the Agriculture business provides a lot of employment to the people to earn their expenses and also contribute in the gross domestic product of the country. For instance GDP from Agriculture in New Zealand decreased to 3220 NZD Million in the fourth quarter of 2017 from 3328 NZD Million in the third quarter of 2017 (Trading Economics, 2018). It have effects on GDP that can be positive or negative. As mostly agriculture of NZ is based on kiwi farming which is also exported to different nations. This business also has seasonal work for the people who hold the working holiday visas.Finally, most of the business is privately owned business. The NZ small and large business provide different sorts of benefits to their employees to increase their morale as well as to retain them in business.
These benefits can be related to non -cash benefits like providing paid holiday, contribution to kiwi saver superannuation scheme, health insurance etc. For example Vodafone’s Phased Return to Work scheme gives new parents the flexibility to spend more time with their baby (or babies!). In addition to this, Vodafone adds to the government’s paid parental leave entitlement of 16 weeks to top you up to 100% of your normal earning. Because we’re at our best when you’re at yours. We also offer two weeks of paid paternity/partner’s leave to our employees supporting their partner in those first weeks.
(Vodafone, 2018).New Zealand business culture is quite different from other the structure of organisation is mostly based on their size as large companies follow hierarchical structure in which communication process is slow because they have to follow the protocol whereas mostly small and medium enterprises or the companies with the less no of employees have flat structure in which they have directly contact with the owner or the head of a company but both the employee and employer have equal responsibilities towards each other.Moreover, there is no age and sex discrimination at the work place because discrimination is illegal in NZ .As New Zealand has no compulsory retirement age and more than 20% of people over 65 are still working (Goverment, 2018). All employees are treated with the same respect whether they belong to any job level which is very important factor to run a business smoothly as well as migrants are also given opportunities and they are accepted with their customs and communication skills.
Furthermore, the dress code in NZ depends on the business. In some food chain business they have uniforms with business badges for example; people working at KFC store wear T- shirt and cap of red colour supplied by the company because of hygiene reasons. In many professional businesses, the dress code is white shirt/ blouse and black trousers/ skirts and also the business hours from 8:30 am to 5pm and on Saturday 9am to 12:30pm or according to the policies of business. Breaks are given to working employees in which snacks and tea/coffee is provided to them. In addition to it, the appropriate language used in the business environment is English.
Employer and employees should use formal words while conveying messages to each other in business hours.Issues faced by New Zealand BusinessThere is no exaggeration in saying the fact that the changes in policies by the government are difficult for the business to implement as they effect both on their structure as well as on their income and work. In the case of new government the policy related to wages rate has been changed and wages are increased from $15.75 to $16.50 per hour that had a great impact on business. According to Chron, 2018 Governments that continually increase minimum wage require businesses in these industries to pay more money for the same amount of employee service.
If companies are unable to increase prices or reduce expenses, they may face liquidation or bankruptcy as a result from the wage increase.Apart from that, with the advent of technology the process of manufacturing should be upgraded time to time to accomplish the goal which leads to the cost of production and also for large companies it is tough to adopt the new technologies and a successful innovation process as they have to remain flexible while adopting a long term plan for manufacturing. If they will not adopt the new plan they will not be able to compete with their competitors.Subsequently, in agriculture business the main issue for farmers is the changes in the weather conditions like heavy rainfall or natural climatic disasters which cause drastic losses which is the result of decrease in the GDP and also in export of products and also increase in the price of electricity is hard to bear. High charges of tax is also another factor to be considered by the farmers in there agriculture business.Meanwhile