Identification and evaluation of two different opportunities for New Zealand business with regard to globalisation
Discuss About The Critical Analysis Role Of Globalisation Economy.
As mentioned by Laudon & Laudon (2015), globalisation can be considered to be both a threat as well as an opportunity. In essence, it can be hereby stated that the nation New Zealand can be regarded to be doing pretty well in globalisation even though the nation suffers from necessarily being price takers. The entire nation has a broad network for undertaking trading as well as other associations that stretch from a specific end of the world to another. Also, this nation has an open as well as stiffly competitive domestic economy that manufactures both products/services that are capable to compete in worldwide markets. Policy makers of New Zealand are slowly developing price making services related to export in a bid to balance the price taking chief exports. The nation has a low rate of unemployment and favourable education level, different health as well as social services. Laudon & Laudon (2015) suggests that the company has a reputation for specifically honesty along with practical tactic that stands us in good stead in varied negotiations with other nations as well as geopolitical nations.
The present global economic integration period is exceptional and the extent and pace of globalisation will linger to have major ramifications for the world, regional and economy of New Zealand. It is highly unlikely that the process of rising global economic integration will reverse. New Zealand can get substantial advantages from future globalisation. The challenge will make sure that we are one of the economies that are adaptive and can adopt successfully policies that maximise the advantages and risk minimization. The advancement towards further global economic integration calls for emphasis in New Zealand on policies that support the growth of a business environment that is internationally competitive.
Identification and evaluation of two different opportunities for New Zealand business with regard to globalisation
There are a numerous nations counting New Zealand that has responded to the various opportunities as well as risks stemming from globalization (Laudon & Laudon, 2015). In essence, globalisation is not an entirely new phenomenon and speed as well as extent of this globalisation has enhanced considerably over the last 15 years as a consequence of different advancement as mentioned below:
-Technological development, mainly in ICT as well as transportation have shown the way to a diminished significance of distance in trade. Essentially, trade as well as technologically have necessarily converged internationally, leading to decrease in levels of poverty and increasing levels of earnings (Barry, 2017).
Evaluation of four different steps by business entities for alignment with global business practices
– In addition to this, processes of production of different business entities have got relocated internationally by means of off shoring along with outsourcing of procedures of production.
Evaluation of four different steps by business entities for alignment with global business practices
Diffusion of technology: Innovations in the area of telecommunication, different computing advances, development of information technology can become important drivers of business that can uphold enhancement in globalization (Barry, 2017).
Sustainability of particularly natural environment: There are certain advocates of particularly globalization that take into account free trade as a solution to lessen poverty and pollution. Business entities can acquire financial resources for aligning with regulatory regimes from shielding the environment.
Reconfiguration of dynamics of culture: Culture can be considered to be an important zone of intricate controversies with globalization. Reconfiguration of specific dynamics of the culture can be considered to be important step towards alignment towards worldwide business culture (Jeston, 2014).
Development of organizational stratagems for worldwide competition: The business concerns have the need to maintain dynamics of particularly globalization that include regionalism, flows of financials, dynamics of culture, innovations of technological, sustainability of environment (Sadiq & Governatori, 2015). This can help in developing an environment for handling worldwide competition.
Critical examination of influence of globalisation on operations of entity towards attaining organizational goals in the context of worldwide trade agreements
Trans-Pacific Partnership is an important trade agreement that is carried out between United States, Malaysia, Vietnam, China, Australia, New Zealand, Mexico, Brunei, Chile and Singapore. The nation New Zealand by way of signing this specific trade agreement has gained improved access to important regional markets. Different parties consented to execute the specific convention on worldwide trade. In essence, this trade delivers higher level of particularly protection for different New Zealanders that are investing abroad (Sadiq &Governatori, 2015).. Also, this trade agreement also presents principles for enhanced transparency in particularly pharmaceutical firms, leads to reduction in clearing times of the customs that can facilitate trade and uphold flow of open data along with competition in mainly segment of telecommunications.
The New Zealand–China Free Trade Agreement is necessarily a bilateral free trade contract that is signed particularly between “People’s Republic of China” as well as New Zealand during the period of 2008. In essence, this can be considered to be the first free trade contract that China has essentially signed with developed nation, and largest trade agreement of New Zealand. This specific contract was positively welcomes by numerous exporters of the nation New Zealand mainly dairy cooperative as well as appliance manufacturer. The deal would necessarily direct towards stiffer competition with cheaper products of particularly China (Armstrong et al., 2015). However, Trade Council of particularly New Zealand opposed the addition of workers in particularly the trade agreement mentioning the fact that there is possibility for different skilled Chinese workforces to be exploited as well as underpaid (Sadiq & Governatori, 2015).
Critical examination of influence of globalisation on operations of entity towards attaining organizational goals in the context of worldwide trade agreements
Impact of TPP on particularly aviation industry
Airlines have by now experienced considerable growth in global air travel engaging Asian-Pacific nations. In essence, 1 billion passengers necessarily travel typically to and from, or else within Asia yearly. Essentially, industry analysts anticipate this number to augment by around 100 million yearly for the predictable future. Again, with signing of the TPP, this tendency shall carry on as demand enhances for more and superior services in the area (Armstrong et al., 2015).
Example 1: Globalisation can be considered to be a universal force. There are different factors that contribute towards globalization and this counts market, specific production, labour regulations, technological advancements, environment as well as directives (Sadiq & Governatori, 2015). Globalization also delivers massive potential profits to firms as well as countries. The aircraft fleet of Air New Zealand is necessarily registered in the nation New Zealand and are employed throughout the global network. This helps the firm to acquire revenue from different geographical segments namely Australia and Pacific Islands, Asia, America along with the United Kingdom as well as Europe (Rosemann & vom Brocke, 2015).
Example 2: Globalization has directed towards establishment of different environmental initiatives. Air New Zealand necessarily has a continuous disclosure policy and the company makes certain compliance with obligations of continuous disclosure on environment.
The entire group functions two benefit plans for varied qualifying workforces particularly New Zealand and abroad.
Analytical review of both role as well as significance of organizational culture in compliance of business concern
The company maintains a compliance with pertinent regulations, specific codes of practice, different contractual contracts, and pertinent third party requirements that in turn cam regulate operations (Laudon & Laudon, 2015). Organizational culture can present guidelines that can contribute towards organizational culture. Also they present employees with a specific sense of direction along with expectations that keep workforces on assignment. This helps employees to comprehend roles as well as responsibilities and accomplish different tasks (Jeston, 2014). The company also ensure maintenance of operating policies as well as procedures that help in satisfying different legislatives as well as regulatory requirements in different pertinent jurisdictions. This culture of Air New Zealand helps in defining the identity of the company. The values as well as beliefs of the corporation also contribute towards development of brand image of the firm and helps in gaining competitive advantage.
Evaluation of four different strategies that New Zealand business communities can develop an organizational culture conducive to compliance
Impact of TPP on particularly aviation industry
Strategies for maintenance of compliance include the following:
– Management ensure maintenance of operating policies as well as procedures that help in satisfying different legislatives as well as regulatory requirements (Eniola & Entebang, 2015)
– Management institute, execute and maintain the requisite structure, procedures as well as resources to handle business of Air New Zealand in conformity with all appropriate obligations
– Management endorse awareness of compliance necessities as well as potential risks all the way through the Group by means of education well as training to augment business along with operational performance (Barry, 2017).
– Management continually observe compliance performance as well as deliver uninterrupted development of conformity performance.
Critical analysis of the process of organizational compliance to competitive advantage of the business entity
Management of the firm maintains compliance requirement regarding progressing technology as well as business boundaries that are constantly altering and at the same time expanding. New technology also introduces novel risks, new procedures and consequently novel compliance concerns (Armstrong et al., 2015). Also, businesses also have flexibility to stay competitive and have rigid control procedures that can again deter flexibility, thereby hurt ability of the business to function effectively.
The company maintains a compliance with pertinent regulations, specific codes of practice, different contractual contracts, and pertinent third party requirements that in turn cam regulate operations. There is close association between culture of the corporation as well as its value system that subsequently exert influence on compliance as well as ethics program of the firm (Schaper et al., 2014). This directives as well as rules that are applied exert influence on diverse compliance aspects and deliver components of organizational stability to the business concern. In essence, the laws that delivers the foundation for the underlying necessities for what the enterprise need to do to function legally within the aviation industry. Thus, this provides consistency to the operations of Air New Zealand.
1) In the process of compliance it is the process of management where is refers to the process of company obeying the legal rules laws in order to manage the business, the staff and regulations in regard towards their consumer. This enables that the corporations are acting responsibly with no criminal charges, building positive reputation and aiming a high productivity in the company (Sadiq & Governatori, 2015). The company Air New Zealand Limited is committed to conduct the activities of the business that would ensure compliance with the relevant regulations, laws, codes and the practices. From annual report of Air New Zealand Limited in 2017 it can be identified that the company has complied disclosures of the ASX listed governance principles. Air New Zealand Limited is a FMC Reporting Entity under the Financial Markets Conduct Act 2013 and the Financial Reporting Act 2013.The various financial statement of the company has been prepared as per the IFRS and GAAP (Hunt, Danes & Keaveney, 2015).
Situational instances that portray efficiency as well as effectual attainment of goals of firms
2) The company Air New Zealand Limited for legally operating the businesses should comply with the various requirements with regard to the transactions of the company, safety procedures and labour practices. The Air New Zealand Limited is aware of the different appropriate regulations for the industry in order to make sure to keep a log of any dates and cost related to their compliance. When it comes to Compliance regulations that are internal, the internal compliance measures the requirements of the state governments and are internally enforced by the upper staff of Air New Zealand (Barkworth & Murphy 2015). The chosen company has an internal requirements that comprises of the formation of the board of directors, conducting annual and initial director meetings, creation and updating of the various bylaws, providing stock to shareholders and transcribing all stock transfers. The internal requirements are meant generally for ensuring that the company is being run with integrity and free of corruption or other corrupting elements. Some parts of the business, such as stock sales, will be governed by external compliance requirements as well.
3) The External compliance deals with the requirements that are enforced and imposed by the federal authority or the authority of the state. The External requirements for Air New Zealand are sanctioned by the state government of New Zealand. Typically the external requirements include the following:
- Annual statement or report: The Air New Zealand submits the annual reports to the authority of the state so that are able to maintain a clear record of them. A fee is generally required with a statement or report submission, typically ranging from $10 to over $300.
- Franchise tax: The state of New Zealand requires the corporations as that of the Air New Zealand to pay a fee to operate, that is in general known as the franchise tax. The amount of tax generally depends on the state is determined on a formulas basis on varying criteria, such as annual revenue collection or the number of shares issued by a company at par value.
- The Fair Labour Standards Act: The Air New Zealand are needed to comply with the Fair Labour Standards Act (FLSA), that establishes the overtime pay, minimum wage, and recordkeeping standards for part time and full time workers in the State of New Zealand. The requirements of FLSA can vary by state, so business owners should be aware of these requirements and take the necessary steps to comply.
4) Failing to meet the both internal and external compliance the organisation has to face a number of risk. In the present discussion the risk that are associated with the non-compliance both internal and external of the chosen company of Air New Zealand are as follows:
- Wage issues: In the company of Air New Zealand the employers who neglect to pay workers suitable wages may risk violating compliance with their states. Failure to comply with the wage-compliance laws can result in audits and fees among the results.
- Hiring: In the process of hiring persons in the business not all the candidates are hired. However, if the company does not comply with the requirements of code of conduct and inappropriate questions, engaging in inappropriate discrimination and conduct during the interview process can make Air New Zealand vulnerable to many negative consequences.
External issues
- Work place Safety: It is essential that the company ensures that thee are thorough workers’ compensation coverage as a remedy for workplace injuries and insulate from the various lawsuits. In failing to give the workers’ compensation can end up in high fines (Elgammal & Turetken 2015).
- Noncompliance claims:The Company has to face various complexity in the compliance requirements, and business owners may not always be totally educated about the recent regulations and rules.
5) The steps for ensuring both internal and external compliance in the business involves the following points:
- Determination of the format of the various regulative policies
- To make the various policies and procedures easily accessible
- To create deadlines for the all the policies and procedures that are to be acknowledged
- In the financial management of an organisation the process of risk management deals with the process of analysis, identification and the acceptance of the uncertainties that takes place in the decisions of the business. It also takes care of the various mitigation process of the risk. The risk management in the present organisation of Air New Zealand limited the risk management occurs when the fund manager or the investor makes an analysis of the substantial losses in the investment process and takes apt actions in order to mitigate the same (Hopkin, 2017). Risk management that is Inadequate can result in severe consequences for companies, individuals, and for the economy. Air New Zealand is subject to foreign currency, credit and interest rate and fuel price risks. These risks management are done with various financial instruments that use a variety of policies that are approved by the Board of Directors. Compliance with these policies is reported and reviewed monthly to the Board and is included as part of the internal audit programme (Lam, 2014). Group policy is not to hold, enter or issue financial instruments for speculative purposes.
- The Internal stakeholders are those who are involved in the typical operations of your organization, in the company of Air New Zealand the internal stakeholders who are comprised of the core employees who are all responsible for implementing and managing the organization’s risk management process (Harrison & Lock, 2017). The key team members should be involved in every core decision and part of the risk management process, as they have a better understanding of how risk management should function within the company.
- Theexternal stakeholders represent clients, vendors, and other groups that have an important relationship with your organization. The risk management process includes identification analysis and mitigation of the risk related to the company (Freise & Seuring, 2015). The external risk management includes reduction of the cost of capital, more accurate financial reporting, competitive advantage, better perception of the organization, better market presence and, in the case of public service organizations, improved political and community support.
- The Flow chart showing the four essential step for risk management:
- The analysis of the risk management includes the following steps asper the above framework:
- Identification of the risk: The starting point is to pinpoint the risks and define them in detail and in a structured format of the stakeholders.The key team members should be involved in every core decision and part of the risk management process, as they have a better understanding of how risk management should function within the company
- Evaluation: Risks are evaluated for their likelihood and impacts (McNeil, Frey & Embrechts, 2015).
- Treatment: An approach to the handling of each risk should be defined, which, in some cases, may be simply doing nothing. This requires an acceptability analysis of the risk and may require an action plan to transfer, prevent, or reduce the risk (Honey,2017).
- Monitoring: An ongoing review process is vital for proactive management of risk, monitoring the status of actions, reassessing risks and controls implemented.
- Communication: Communication in each of these four stages is a fundamental part of a process of decision-making that is effective in risk management
Reference
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