Moving McLaren Automotive to New Zealand

The prevailing economic conditions, political policies, shifting social-cultural tastes and preferences, viable legal policies all point to the desired growth model that the country is building to attract foreign investments. As an initiative, the paper has assessed the business environment of New Zealand using the PESTEL model to determine the position of the country to accommodate the plans to expand the operations of McLaren Automotive. Though threats are notable, the analysis has revealed that operating in such an environment is worth exploring (McLaren. com, 2018). Table of Contents Abstract 2 Introduction 3 Background information 4 Products and marketability 4 Financial position 5 PESTEL analysis of the New Zealand automotive 7 Political issues 7 Economic factors 7 Social-cultural factors 9 Technological factors 10 Ecological/environmental factors 11 Legal issues 12 Conclusions 12 Bibliography 14 Appendix 16 Figure 1: per capita income in New Zealand 16 figure 2: car ownership in New Zealand 16 Figure 3: population distribution in New Zealand 16 Figure 4: Preference for used and new cars 17 Figure 5: fleet growth rate 17 Figure 6: rising fleet travels 17 Figure 7: revenue trends for 2012-2016 for McLaren Automotive 18 Introduction In a bid to expand the operations of McLaren Automotive to New Zealand, there is need to assess the business potential of New Zealand and compare with the availability capacity and resources in the company.

The British company has had a transitional history dating back in 1963 when technology becomes an aspect of racing competitions. The company has an employee base of over 1000 skilled personnel. McLaren Group owns the company (McLaren. com, 2018). Products and marketability McLaren Automotive is an accomplished manufacturer and seller of heavy-duty luxury sports cars. McLaren has spread its production and dealership wings to about 35 shops. The company sports cars are high end luxurious but very expensive which are mainly made to meet the affluent needs of the wealthy families. McLaren brand is reputed for being a great supercar producer and seller, very technologically monetised products (Shaheen and Cohen, 2013). The blend of the brand at the company defines the beliefs and ability in improving benefits.

The company stands out as exhibiting both theories and practice of improving brands in the market. m pounds. However, the 2015 figure was down compared to the 2014 figure which was at 475. British pounds. The company has a stable balance sheet with strong debt management policies (McLaren. com, 2018). PESTEL analysis of the New Zealand automotive The pest analysis is a tool used in assessing the environmental situations and its influence on business. The PESTEL means political, economic, social and technological, ecological and legal factors that influence how business is done in a locality (Gupta, 2013). Political issues Political situations prevailing in a country has a direct effect on the viability of the automotive industry. The rising fuel prices have the government implement policies in favour of low emission with relaxed import rules about cars.

Additionally, operations of automotive manufacturers like Toyota and Ford have been enhanced through tax rebates. Ministry of Transport Report, 2016). The country has a low inflation rate with stringent money management system undertaken by the central bank. Coupled with the flexible exchange rate and limited restriction on repatriation of funds, the country is stable for investments in the auto industry. The country’s annual growth rate is averaging 2. which is rising over the years with projections for 2018 at 3. As at 2016, the per capita income stood at the U. S. which implies higher purchasing power shown in figure 1. The significant imports for the economy include vehicles and parts, electrical machinery, textile, mechanical machinery, and petroleum products. The country ranks among the top twenty nations to do business with, being ranked thirteen in global competitiveness.

However, these ages prefer used cars to new. Figure 3 and 4 illustrates the population of New Zealand and the preference for used and new cars (Gupta, 2013). The social trends may keep changing because of the changing tastes and preferences which may be ignited by aggressive marketing campaigns. New Zealand has a free society that people easily determine decisions independently. The reconstruction in the region that felt earthquakes is quickly necessitating the need for acquiring cars. com). Technological factors Technology is an integral aspect of the business environment. Indeed, the automotive industry in New Zealand is characterised by increased innovation and technological transformations, which in the long affects how businesses are done, consumption and investment patterns in the country (Gupta, 2013). Vital technological aspects influencing operations of a business in New Zealand are rising use of electronic commerce, an improved mobile technology which enhances communication as well as cybercrime related threats.

Relocating to New Zealand require strict compliance with the technological space where strategies to combat cybercrime are at the apex, as well as increasing accessibility of the company brand through internet utilities. McLaren Automotive has opportunities that it can exploit in New Zealand because it is technologically capable of creating a brand suitable for the market. Ecological/environmental factors The environmental issues that affect business are the climate change, declining oil reserves, and improved business sustainability. New Zealand as an oil import is highly influenced by global changes in the price of oil. The devastating weather conditions in the country equally impacts the business environment negatively. The earthquakes witnessed, and uncertainty of the future climatic conditions subject business operations in obscurity (Teara.

As a producer and seller of McLaren brand, the policies in the country supports its operations. The need to meet the environmental laws such as pollution and global warming effect is a hot topic in New Zealand. The report by the Ministry of Transport (2016) documents the level of global warming is quickly getting out of hand as more vehicles enter the economy. Therefore, the country encourages the use of less environmentally degrading production methods. Additionally, the consumer laws governing acquisition of cars by citizens is open and voluntary. Bilateral trade agreements in the Asia-Pacific. In Bilateral trade agreements in the Asia-Pacific (pp. Routledge. Anon, New Zealand GDP and Economic Data.  Global Finance Magazine. Energy consumption, economic growth and CO2 emissions in Middle East and North African countries.

 Energy policy, 45, pp. Cmo. com.  McLaren’s Allert Believes His Marketing Strategy Is a Winning Formula.  Merit Research Journal of Art, Social Science and Humanities, 1(2), pp. Kuhnimhof, T. Zumkeller, D. and Chlond, B. Who made peak car, and how? A breakdown of trends over four decades in four countries. Available at: https://www. stuff. co. nz/motoring/trends-in-suvs-and-vans/94316524/new-zealands-top-10-vehicles-list-almost-carless [Accessed 22 Apr. Newzealandnow. P. Carsharing and personal vehicle services: worldwide market developments and emerging trends.  International Journal of Sustainable Transportation, 7(1), pp. Teara. govt. Appendix Figure 1: per capita income in New Zealand Source: figure 2: car ownership in New Zealand source: Ministry of Transport Report, 2016 Figure 3: population distribution in New Zealand Source: Ministry of Transport, 2016 Figure 4: Preference for used and new cars Source: Ministry of Transport report 2016 Figure 5: fleet growth rate source: Ministry of Transport Report, 2016 Figure 6: rising fleet travels Source: ministry of Transport Report, 2016 Figure 7: revenue trends for 2012-2016 for McLaren Automotive.