Performance of Business Operations Survey

Question: Discuss about the Performance of Business Operations Survey. Answer: Introduction: New Zealand enjoys the advantage of a highly stable government, and the nation does not usually complain of any kind of political turmoil. Owing to the stability of the government, the stringent laws and legal norms are expected to safeguard the concerns of an organization, if it is encountered by any unpredictable, drastic change. However, the nation also follows strict labor laws, that prevent the possibility of labor exploitation, and consequently the labor force is highly expensive in the country. The lending rate of the banks of New Zealand is extremely high in New Zealand, and thus it may affect the profitability of an emerging organization. However, the government allows a freedom of approximately 99.9% to the foreign investors (Hargroves and Smith 2013). The per capita income of the residents of New Zealand is too high, and it is accompanied by a high tendency of consumption of the consumers, that is highly an advantageous factor for a new company. Since the population of the nation is 6 to 7 million, there is a huge abundance of the raw materials, which are also available at a cheap price as well (Smallbone et al. 2012). Further, because of low inflation and unemployment rates, the New Zealand economy is strong with a high growth in the GDP rate. The literacy rate of the residents is 100%, and the average life span of an individual, living here, is 81 years (Hong et al. 2016). This socio-economic well-being of the residents shows that the health of the country is indeed favorable for conducting business. However, the average citizens of the country lack vocational knowledge and expertise, and hence often they are incapable of delivering high quality work. Hence, recruitment of the immigrants may become necessary. As far as the technological factors of New Zealand are concerned, the country is still developing its infrastructure, which is not very technologically advanced. The widespread use of internet among the rural and urban nations has helped the consumers gain awareness of and access to the newly emerging industries. Besides, the nation also offers research and development opportunities for the new organizations entering the market (Kelsey 2015). National Resources and Factors Favoring Business in New Zealand: There is an easy availability of labor force, though the there is a scarcity of laborers for skilled work. There is no dearth of unskilled and semi-skilled workers in New Zealand, though the wage scale of the workers is quite high, as compared to many other countries. As far as the capital needed for initiating business, is usually funded with the help of the bank loans. However, the bank loans are usually very high, and this can prove to be disadvantageous for a start-up business, expanding in New Zealand. As far as the entrepreneurship opportunity of New Zealand is concerned, the country had been rated number one for huge investment opportunities. Any new organization can take advantage of the fertile land, highly qualified and flexible workforce, as well as scope of innovation in the country, all of which makes the country the worlds second easiest place for conducting business, as per the Forbes Magazine. Reference List: Hargroves, K. and Smith, M.H., 2013.The natural advantage of nations: business opportunities, innovation and governance in the 21st century. Earthscan. Hong, S., Oxley, L., McCann, P. and Le, T., 2016. Why firm size matters: investigating the drivers of innovation and economic performance in New Zealand using the Business Operations Survey.Applied Economics,48(55), pp.5379-5395. Kelsey, J., 2015.Reclaiming the future: New Zealand and the global economy. Bridget Williams Books. Smallbone, D., Deakins, D., Battisti, M. and Kitching, J., 2012. Small business responses to a major economic downturn: Empirical perspectives from New Zealand and the United Kingdom.International Small Business Journal, p.0266242612448077.