Impact Of Internal And External Environment On New Zealand Business Organisations

Internal environment

The report analyses the impact of various internal and external factors that sometimes help as well as create problems in the company’s growth. The company is doing a profitable business in New Zealand as well as the other islands in south Pacific. There are important factors that support its business and increase its market penetration (Zlatevska et al., 2016).

System:

Tip Top is a subsidiary of Fonterra which is a global leader of dairy production. Therefore, the system of Tip Top largely follows the system of Fonterra.

• Ingredients are the chief element of this business that largely depends on the dairy products like milk. Therefore, the company’s core business depends on the milk supplier shareholders and manufacture them for export products (Park et al., 2015). These products of Tip Top range from the various flavoured ice creams that are manufactured from milk.
• The food and customer service business focusses on supplying ready products in the supermarkets globally and ask for regular feedback from the consumers as well as market to enhance the quality of their products.

Tiptop Ice Cream Company is a renowned ice cream brand from New Zealand. It is a subsidiary of Fonterra Brands and based in Auckland. The company was founded by Albert Hayman and Len Malaghan and they started producing ice cream in 1936. This company now produces more that 40 million litres of ice cream per year. The Fontana Brand has more than 400 employees working in New Zealand. Tip Top ice cream is exported to Taiwan, Japan, Malaysia, Indonesia, Australia along with the Pacific Islands. The most sold products of this company are Lemonade Popsicle, Choc Bar, Jelly Tip, Memphis Meltdown Big Nuts and Pineapple FruJu. Beside these, the company also sales cakes, sandwiches and desserts.

The company is responsible with revenue more than NZ$10 .7 billion and it is the largest ice cream company in New Zealand. Therefore, there is no issue that can create problem in business. There are some resources that are necessary for every ice-cream company. This include ice cream making machines and other technological support. The human resource of this company is quite high compared to its competitors (Sadeghi et al., 2017). The talent and skill along with hard work of the employees, have helped the company to carry out all the goals effectively.

The organizational culture encompasses the values as well as behaviours of the employees to maintain a unique social and mental environment within the organization. In this case, the company’s culture discloses its collective values and principles of the members. The culture of Tip Top allows the employees to enter in strategic planning, product planning and expectations. The leads and mangers of Tip Top has been successful in keeping the work culture healthy (Boons & Lüdeke-Freund, 2013). They keep the employees motivated and provide guidance to the teams. There is absence of stress factors as the company leaders believe that there must be an emotional attachment among the employees as well as the professional group.

System

There are six external forces that affect the business of Tip Top ice cream company. Tip Top is an Auckland based ice cream company that is influenced by all these factors both in negative as well as positive manner. Factors like technology sustainable management and social trends have positive effect on the company’s production, operation and distribution whereas factors such as government policies, laws and economy may have slightly negative effect on the company’s business. These factors could also have positive effect if handled properly.

· The governmental policies of New Zealand are supportive of the dairy industry. They provide opportunities for expansion of production and export of the ready products to the overseas market.

· The policies have proved to be beneficial for the company’s production by developing transport infrastructure, processing workforce and other facilities (Mowday, Porter & Steers, 2013).

· The government of New Zealand has improved the business environment so that the industry can operate successfully though it does not provide subsidies to this sector.

· The government policies also keep good relation with the south pacific islands and help it in expanding overseas markets.

· Tip Top ice cream company is based in Auckland therefore, enjoy an advantage with the regulatory services.

· The Milk Industry Act National Chemical Contaminants Programme, Dairy Industry Restructuring Act and Milk Industry Regulations are New Zealand’s regulations that supports the growth of this sector.

· In case this company do not assign with these laws or unable to uphold the regulations, they will not be allowed to distribute their line of ice creams (Waemustafa & Sukri, 2016).

· The company keeps up with industry standards and sell the best quality ice cream in New Zealand. In case of exporting the products in overseas markets, the company is dependent on the foreign policy.

· Due to the recent economic situation of New Zealand, the financial factors can have a negative impact on the sales of Tip Top Ice Cream Company.

· The company’s products are affordable yet it is not a necessity therefore, with the oscillation in national economy, sales can be fluctuating (Epstein & Buhovac, 2014).

· However, the consumers do not mind to spend extra money for the best quality of Tip Top ice cream, the company cannot or do not need to make their ice creams more expensive.

· After a recent technical discovery for a new process which increases the speed of freezing ice cream using liquid nitrogen.

· Now this new technology has been introduced in the production of Tip Top which uses the liquid nitrogen to freeze the ice cream mixture instantly.

· Use of liquid nitrogen has greatly influenced the production (Sadeghi et al., 2017).

· With the usage of the liquid nitrogen, the company can open new stores and continue business for more days of week. This procedure allows for more revenue in their sales of ice cream. The proper usage of technology has helped Tip Top company for adding more flavours that allow their customers select variety.

Tip Top Ice cream has grown its business and knows how to sustain the growth. It looks beyond next yearly report. The management has assisted in growing the business by selecting proper intellectual capital as well as strategic partnership with its supply chain (Nzicecream.org.nz, 2017). The management takes good care of the production as well as customer needs. In New Zealand there are potent competitors of the company but the price issue has provided support to Tip Top.

Tip Top Ice Cream is expanding their branches to other countries but the regulatory forces of such countries may prove to be disadvantage and even a negative force because the regulations are different in those provinces. The complications of the regulatory forces can have impact on the ingredients as well as packaging. Therefore, Tip Top Ice Cream has to change its ingredients it uses and change the packaging and potentially create a different brand image across the different provinces (De Medeiros, Ribeiro and Cortimiglia, 2014).

Conclusion:

Therefore, it can be concluded that the ice cream company has successfully overcome the hurdles of government laws as well as issues in the supply chain. Despite the fact that the company largely depends on Fonterra as the company is its subsidiary. However, most of the internal as well as external factors contribute in the company’s growth but needs some revision and initiative to overcome the regulation problem in its overseas branches.

References:

Boons, F., & Lüdeke-Freund, F. (2013). Business models for sustainable innovation: state-of-the-art and steps towards a research agenda. Journal of Cleaner Production, 45, 9-19.

De Medeiros, J.F., Ribeiro, J.L.D. and Cortimiglia, M.N., 2014. Success factors for environmentally sustainable product innovation: a systematic literature review. Journal of Cleaner Production, 65, pp.76-86.

Epstein, M.J. & Buhovac, A.R., (2014). Making sustainability work: Best practices in managing and measuring corporate social, environmental, and economic impacts. Berrett-Koehler Publishers.

Khan, S., & Khan, S. (2017). Price Ceiling in Economics and Its Implications – Business Tip Top. Business Tip Top. Retrieved 13 December 2017, from https://businesstiptop.com/price-ceiling-implications/

Mowday, R.T., Porter, L.W. & Steers, R.M., (2013). Employee—organization linkages: The psychology of commitment, absenteeism, and turnover. Academic press.

Nzicecream.org.nz. (2017). Resources | NZICMA – The New Zealand Ice Cream Manufacturers Association (Inc.). Nzicecream.org.nz. Retrieved 6 December 2017, from https://www.nzicecream.org.nz/resources.htm

Park, S.H., Jo, Y.J., Chun, J.Y., Hong, G.P., Davaatseren, M. & Choi, M.J., 2015. Effect of frozen storage temperature on the quality of premium ice cream. Korean journal for food science of animal resources, 35(6), p.793.

Sadeghi, M., Amini, A., Are?an, A., Behnampou, N., & Ghasemi, S. M. (2017). Microbiological quality of traditional ice cream and homemade juices in Gorgan and its relationship with health conditions of workers and environment. Journal of Health in the Field, 2(4).

Tiptop.co.nz. (2017). Retrieved 6 December 2017, from https://www.tiptop.co.nz/about/

Waemustafa, W. & Sukri, S. (2016). Systematic and unsystematic risk determinants of liquidity risk between Islamic and conventional banks.

Zlatevska, N., Zlatevska, N., Spence, M.T. & Spence, M.T. (2016). Parsing out the effects of personal consumption norms and industry influences on food consumption volume. European Journal of Marketing, 50(3/4), pp.377-396.