This is the detailed PEST analysis of New Zealand which discusses the political, economical, technological, environmental and legal factors of the country. The mentioned factors could be positive or negative, but determining those factors proactively helps the government to devise the strategies to capitalize on the available opportunities and eliminate or minimize the threats.

New Zealand is a small country located in east of Australia in Pacific Ocean. This country has done remarkable progress in recent past and it made various new changes in the country to uplift the political system and economy of the country. It has unique ecological system being located away from rest of the world.

Political Factors

When any company starts its business in any country, it considers their political system, economic stability and the law and order situation of the country, which can give economic strength to the local business and trade. New Zealand has stable government and it has great chance of success due to their strong rules and regulations. The political change is happened in New Zealand after every three years and the new government makes its own rules and regulations and companies should be aware of these changes to spread their business. The labor laws are strict and the labor force is expensive in the government. The lending rates are high in the country so the companies have to pay more taxes and it reduces the profit of the company and huge amount goes into treasury of government. This country has given the business and trade freedom to the companies, so that they can do their business here quite easily. Political system in the country is strong and elections are being conducted after every three years.

Economical factors

The economic situation is excellent in the government and you can check their per capita income, which is excellent, if you compare it with other countries of the world. As population of this country is about 6 or 7 million so everything is available in the country abundantly. The rates of the products are also very economical and people can afford to buy these products quite easily. People have to buy the products and circulation of the money is continued in terms of its purchasing of capital goods, necessary products and luxurious products. The inflation rate in the country is less and the unemployment is also considerably very low, which shows the positive sign of the economy and GDP growth rate. The users can find every commodity and service in the country and the inflation rate is low. People can find the services of labor, iron, steel, sugar, rice and other commodities in the markets and the companies can earn more and more profit over their trade and business activities. If any company wants to start its business in this country, then it needs to spend a lot of money so that it can earn good profit over the sale of its products.

Social Factors

The social system of the country is wonderful and it has to depend on business with other countries. There is consistent demand in the economic system and it can affect the economic situation of the country. It depends on other countries to get new technology, so it spends fewer amounts on research and development work. The government is changes consistently after every three years and it has brought strong political system. The banking system in the country is strong and it welcomes the foreign direct investment in the country. The literacy rate in the country is 100% and the life expectancy is about 81, which is good sign for health and more than many countries of the world, which are considered developed countries of the world. The government is giving specific emphasis on the tourism and it is providing facilities to the tourists, who visit this country every year. As this country has less populations, which is spread in some bit cities, and the unemployment ratio is also very less, which shows their economical situation and people are contented with their life and the economic and social policies of their government.

Technological Factors

New Zealand has its own educational system, which is run by the Program of OECD for International Student Assessment and it is considered 7th best education system around the world. The students are showing their progress in Mathematics and Science. The students are admitted in the school at the age of 5 years and they complete their education at 19 years age, which increased the literacy rate up to 99%. The country has made significant development in various technological products. It has introduced IT technology and use of internet in the urban and rural area is excessive. Various mobile phone companies are providing their services to people at the affordable rates. The modern facilities of health are provided in their hospitals and government has introduced new health reforms to provide medical facilities to people at their doorstep.

Environmental Factors

The country is located at 900 kilometers away from Australia and it has unique ecological system. The educated population is well aware of the change in weather and they are ready to get rid of pollution and keep them away from the pollution effectively. They have adopted the latest technology to deal with garbage and do not let it to pollute their atmosphere. New initiatives are being taken to keep it safe and free from dust and pollution. The country has various species of the birds in this ecological system.

Legal Factors

The government is change after every three years and the new government makes its own rules and regulation but the crime rate is very low in the country. The government has curbed the corruption from the society so they are enjoying the basic facilities in the country. The international companies are welcomed to start their business there and there is wide scope to develop the business but the profit margin for the companies is low because they have to pay the lending charge excessively to the government. But this country has provided the trade freedom and business freedom to the company to expand their business and they can easily flourish their businesses in this society. The international business community has full legal cover in the country and they can do their business without any fear of legal implication in the business activities.

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