YOUR NAME

HEWLETT PACKARD
HISTORY AND DEMOGRAPHIC INFORMATION
New Zealand History
 Discovered by the Maori in 1200 AD
 Dutch were the first Europeans to reach the country in the 17th century
 Britain claimed New Zealand as a colony in 1840 after signing the Treaty of Waitangi
 Became an independent dominion in 1907

Demographics
 Roughly 4.5 million people live in New Zealand
 Two official languages: English and Maori
 71% of the population is European, 14% of the population is native Maori, and 25% of
the population is other

The Bottom Line: New Zealand is a country rich with history and is a
unique part of the world. This independent nation has managed to maintain
a significant portion of its native population, the Maori, and has continued
to keep the native language as one of two official languages, all while
adopting European traditions and population.
 POLITICAL AND LEGAL ENVIRONMENT
Political Environment
 Parliamentary Democracy System
 Mixed Member Proportional Voting- this is in place to ensure that no one party wins a
majority of the seats in the house.

Legal Environment
 Common-Law system, based on the English model
 In addition, New Zealand has special legislation and land courts for the Maori

The Bottom Line: The political environment for New Zealand provides
structure for the nation and gives the people of New Zealand a true voice..
The nation chooses to adopt a legal environment that reflects its cultural
preservation and adaptation by resembling England’s, the nation that used
to rule New Zealand, as well as making sure to protect the values and
rights of the native people, the Maori.
 CULTURAL ENVIRONMENT
People highly individualistic
Communication often informal and direct
Similar to the United Stated in power distance, masculinity, individualism,
uncertainty avoidance, long term orientation, and in indulgence according
to Hofstede’s framework.
44% of the population identifies as Christian; 29% of the population
identifies with no religion
Professional situations do not see large religious influence
The Bottom Line: New Zealand business is not highly affected by religious
decisions, but people do tend to make personal decisions. This cultural
environment slightly resembles that of The United States.
 ECONOMIC OVERVIEW
Economic Data
 GDP (PPP): $136.6 billion (2013)
 GDP per capita (PPP): $30,496
 Unemployment rate: 6.4%
 FDI Inflow: $986.5 million
 Public Debt: 35.9% of GDP

Lack of Corruption
 3rd freest economy in the world according to the 2015 index of economic freedom
 Property rights and intellectual property highly protected
 Economy Overview
 Economy has seen positive growth and expansion for about 20 years, aside from the
global financial crisis in 2008 and 2009
 Value principles of market openness and free trade
 Labor market efficient in allocating labor
The Bottom Line: New Zealand’s economy represents a nurturing environment to
conduct business. The lack of corruption and openness to trade are two indicators
that New Zealand does not fear interacting economically on a global scale.
 ECONOMIC ANALYSIS: TRADE AND TRADE
RELATIONSHIPS
Trade Overview
 Exports constitute 29.65% of New Zealand’s nominal GDP in 2014.
 Exports in 2024 totaled $67,175 (in NZ million), and imports totaled $62,927, This results in an
overall trade surplus of $3,948.
 Most exported products are milk powder, butter, and cheese with 13,590 ($NZ million)
exported in 2014
 Most imported products are petroleum products, costing New Zealand about 8,366 ($NZ
million) in 2014.
 New Zealand prides itself on low barriers of trade; however, one tariff is an import entry
transaction fee of NZ$29.26 payable on every import entry clearance and import declaration
for goods, when the sum of duty and GST exceeds NZ$60
Trade Relationships
 Most important trade partners are China and Australia. These countries account for about 40%
of New Zealand’s exports.
 Currently has 9 trade agreements and 10 more under negotiations
 New Zealand a member of the WTO since 1995
The Bottom Line: New Zealand sees value in trade relationships, and its trade levels
and growth reflect the benefits of these varying levels of agreements.
ECONOMIC ANALYSIS: FDI
FDI inflows totaled 946 ($NZ million) in New Zealand investment abroad and outflows totalled 944 ($NZ
million) for foreign investment in New Zealand.
Australia is the greatest source of FDI inflows for New Zealand with 1,751 ($NZ million) of FDI in 2013
in New Zealand
Canada is the second largest source of FDI with 703 ($NZ million) on FDI in New Zealand in 2013
As of March 2014, 58.1% of New Zealand FDI outflows went to Australia, the United States, and the
United Kingdom
Only about1% of inflows are from capital formation, 35% are from portfolio investments, and the rest
goes to M&A
New Zealand is not very successful in attracting FDI. Reasons include
 A lack of competitive tax rates
 Overseas Investment Act actually tells investors that they are privileged if [New Zealand] allow them to
invest in sensitive land
 High FDI regulations and guidelines that cover disclosure, human rights, employment and industrial
relations, environment, combating bribery, consumer interests, science and technology, competition and
taxation
According to the 2014 FDI Regulatory Restrictiveness Index published by OECD, New Zealand’s Index
score was 0.24 - more than double that of the United States.
The Bottom Line: Although New Zealand has significant guidelines for multinational
corporations wishing to do business in New Zealand, these maintain the minimal amounts of
corruption New Zealand faces. The benefits of these guidelines outweigh the consequences.
 ECONOMIC ANALYSIS: CURRENCY AND
MONETARY SYSTEM
The New Zealand Dollar
 10th most widely traded currency in the world
 New Zealand Dollar global FX turnover is 2.0 percent on average
 Involved in US$105 billion of transactions per day in April 2013
 As of April 17, 2015, $1 NZD could be exchanged for $0.767523 USD
 From July 2013 to April 2015, the average volatility of the New Zealand dollar was
14.27%, the minimum volatility was 4.69%, and the maximum volatility was 41.76%
Monetary System
 New Zealand has used a floating currency management system since 1985
 Before 2007, the Bank's foreign-currency assets had been fully matched by foreign-
currency liabilities, but in 2007, the Bank began holding some portion of its foreign
reserves on an un-hedged basis, known as an "open FX" position.
 Member of the IMF since 1961
 Economy has been hailed as one of world’s top safe-haven economies in recent years
after it emerged from Global Financial Crisis relatively unscathed
The Bottom Line: New Zealand dollar remains a relatively stable position globally,
and there do not appear to be any financial crises in New Zealand’s foreseeable
future.
 ECONOMIC ANALYSIS: OTHER AND BALANCE OF
PAYMENTS
Balance of Payments
 New Zealand’s balance of payments uses a system more like the “Fed” system. The BOP
has a financial account which includes foreign direct investment
 Balance of payment statistics are compiled in general accordance with the International
Monetary Fund's principles
 The current account has consistently had a deficit. This deficit can be attributed to the
deficit each year in the investment income, because the trade balance sees a consistent
surplus
 FDI, including the direct investment and the portfolio investment accounts, consistently see
surpluses over the years observed. These surpluses correlate with the consistent deficit in
the current account, because FDI has been used to offset the Current account deficit.

The Bottom Line: The New Zealand Balance of Payments statement

reiterates the financial strengths New Zealand has globally, such as its FDI
surplus, as well as points out weak points of the nation, such as its consistent
investment income deficit.
COUNTRY SYNOPSIS
New Zealand is a country that has successfully progressed from an unknown piece of land
inhabited by the Maori, to a British Colony, and eventually to an independent nation with a
significant presence in the global economy. This country has managed to become an example
of the benefits of a nation with minimal corruption. Those choosing to conduct business in New
Zealand should know that, although small, this nation has a currency that has become the 10th
most traded currency in the world, consistently has trade surpluses by exporting dairy products
like milk powder and butter, and had a stable enough economy to escape from the disastrous
effects of the global financial crisis in 2008 and 2009. Although New Zealand prides itself on
a strong global economy, the country is not completely perfect in regards to its economic
policies and regulations, and businesses should be aware of this. From the late 1980s to the
mid 1990s, New Zealand managed to attract a significant amount of foreign direct investment;
however, FDI as a percentage of GDP has slowed significantly. This slowed interest in FDI is a
result of extensive guidelines that multinational corporations must adhere to, covering issues like
disclosure, human rights, employment and industrial relations, environment, combating bribery,
consumer interests, science and technology, competition, and taxation. These regulations, while
tedious, help maintain minimal corruption and a successful economy.
COC
Hewlett Packard
 Hewlett Packard is a well-established American based multinational technology company that operates
in more than 170 countries around the world
 Headquartered in Palo Alto, California
 Well-established and has significant market share worldwide
 HP shared values include trust and respect for individuals achievement and contribution, results through
teamwork, meaningful innovation, and uncompromising integrity
 HP company objectives include customer loyalty, profit, growth, market leadership, commitment to
employees, leadership capability, and global citizenship

HP New Zealand
 Based in Auckland, New Zealand
 HP is currently the top vendor of New Zealand PC shipments
 PC demand in New Zealand increasing
 New Zealand specific products and services offered
 Leads PC market share for New Zealand
COC: STRATEGIC CONSIDERATION
The PC Market The personal computer industry worldwide is shrinking; however, this is not the case in
New Zealand.
The PC market in New Zealand is skyrocketing. “Findings indicate that strong consumer confidence
and a falling unemployment rate provided the momentum for boosting consumer interest in PCs” in
this country (1).
HP should focus on manufacturing and producing goods they sell, such as PCs for both consumers
and more significantly business.
HP currently leads PC market share in New Zealand with 37%, but they are closely followed by
companies like Acer (1).
I believe HP should focus considerably on competitive pricing. HP already has a well-established
global presence as well as high market share world wide. As a result, brand recognition is a great
strength of HP.
Since consumers and businesses know that HP produces reliable products world wide and in vast
amounts, they already tend to trust the company. In order to capture these open customers, HP
should focus on outperforming competitors in New Zealand, such as Acer, based on price.
COC: OPERATIONAL IMPLICATIONS
In order to maintain its large market share in PC sales in New Zealand, the day to day operational
activities of HP in New Zealand must be tailored to minimize costs so that the company can be
competitive in product pricing. HP can ensure minimization of costs in several ways
1. Follow Regulations
As noted in the analysis of New Zealand places an abundance of regulations and guidelines for
multinational corporations like HP. In order to avoid expensive repercussions and keep costs low, HP
would be wise to constantly monitor compliance of these regulations in every aspect of business.
This monitoring can take place through internal organizational audits or other means of assessment.
2 . Build Relationships with local businesses
Local businesses represent the target customer for HP New Zealand. As New Zealand’s economy
continues to grow, and as the company maintains constant trade surpluses, new businesses
manufacturing goods and providing services within the nation will continue to grow. These
companies will need PCs. Relationships with these businesses will increase the likelihood that these
companies will make purchases from HP.
REFERENCES

1. Spence, Leon. “New Zealand leads Asia-Pacific PC market growth.” ZDNet. CBS
Interactive, 4 September, 2014. Web. Retrieved from
http://www.zdnet.com/article/new-zealand-leads-asia-pacific-pc-market-growth/