PESTLE analysis New Zealand

Political, socio-cultural, economic, and technological environments have presented more opportunities for the company. The legal environment has presented a threat in terms of strict regulations. Based on the findings of this report, it is recommended that Infinity Binny Pty Ltd. expand its operations to New Zealand. Table of Contents 1. 1 Currency Exchange ($) 6 4. 2 Economic Trends/forecasts 6 4. 3 Analysis 7 5. 0 Socio-cultural Environment 7 5. 1 Hofstede’s Cultural Dimensions 7 5. The company has been operating in Australia for the last three years since its inception. It has plans to expand to the New Zealand market. A PESTL analysis of New Zealand is required to determine if the company should move. In the analysis, political, economic, technological, socio-cultural, and legal environments of New Zealand will be assessed. 0 Political Environment 2. The positive nature of government relations between these two countries is supportive of business operations and survival.

3 Analysis After considering the stability of New Zealand’s government and its relations with other countries, the opportunities of starting a business in the country outweigh the threats. The political environment of New Zealand is, therefore, conducive for business for Infinity Binny Pty Ltd. 0 Legal Environment 3. 1 Business Laws New Zealand is ranked among the top countries where it’s easy to start a business. In general, the labour laws in this country are balanced for businesses. 3 Analysis The business laws and labour laws in New Zealand are almost similar to those in Australia. Infinny Binny Pty Ltd. ’s decision to move to this country will be smooth and swift. These laws will act as strengths for the company as it’s already used to some of them.

3 Analysis The exchange rate is reliable while the economic trends are positive. The nature of this environment, therefore, creates an opportunity for any business wishing to start operations. The optimistic nature of the future for New Zealand’s economy reduces economic threats that may exist for businesses. 0 Socio-cultural Environment 5. 1 Hofstede’s Cultural Dimensions Hofstede’s Cultural Dimensions Home Country Host Country Implications Collectivism Vs Individualism Individualism Individualism Employees in both New Zealand and Australia prefer working alone Power Distance Medium Low Formality ranks among employees in New Zealand are very low when compared to Australia Uncertainty avoidance Medium Medium Employees in New Zealand are likely to follow set rules and procedures while working just like in Australia Time orientation Lower Low New Zealand employees are more long-term oriented when compared to those from Australia Quality Vs Quantity of life OR Femininity vs Masculinity High Masculinity High Masculinity There are more male employees in New Zealand, just as in Australia9.

Air transport is considered expensive among New Zealand residents. As a result of this, it’s become easier to move from one point in New Zealand to another. 2 Communication Network The country has been adopting fibre-based communication services. The internet is the fastest way to get information in New Zealand with other forms of communication being through telephone, radio, and television11. These forms of communication and disseminating information are well applied by businesses in New Zealand. adopt the following: • Since it doesn’t have any experience operating outside Australia, it should expand to New Zealand and take advantage of the ‘almost’ similar business in the country. • It should hire a qualified legal team that will help it operate within the business laws and regulations of New Zealand Reference List "7.