BUS503 Principles of Commercial Law-Economic Growth in New Zealand

This analysis discusses the various internal and external factors that help as well as create problems in the company’s growth in New Zealand. Auckland transport is the largestcouncil controlled companyof New Zealand. The company is supported by the government and doing a profitable business. The cabinet ministers and the council of Auckland work hand in hand to popularize the company and its growth. The company has a large workforce that has resulted in its competitive advantage.

Internal environment:

The company was formed in 2010 and since then it focuses on the delivery an improvement if the transport system in Auckland, New Zealand.

Ø Stable democratic system

Ø Good cool temperate to warm temperate climate

Ø More than 60% of electricity generated from renewable

Ø Geographically isolate that affects the global supply chain.

Ø Very little manufacturing exists

Ø High rate of car ownership

Ø The company is responsible for the new public transport services, infrastructure projects and city rail link development. The company has policies that supports energy efficiency savings (Grabara, Kolcun& Kot, 2014).

Ø It works collaboratively with Conservation Authority on New Zealand. Auckland Transport enhances useful planning and management that ensures assets of the organization along with the movement.

Ø Foreigners are withdrawing all investments gradually

Ø 'law and order' and overregulation response from government on growing crisis, thereby restricting local initiatives to build on alternatives

Structure:

The company has a definite and active organizational structure that coordinates and collaborates with the external factors and proved to be innovative, flexible and efficient. Through its structured feature it wins a good amount of sustainable competitive advantage. The company well planned strategies are executed by the membersform higher level to lower. They participate in decision making (Uyar & Güngörmü?, 2016). The nature of the service that Auckland Transport provides, follows the functional structure and the employees work collaboratively and repost to their team members. There are different departments focusing on the specialized part and demonstrate goesvolume in low cost.

Resources:

The total assets of Auckland Transport are more than $1.5 billion till 2015. Initially the revenue used to come primarily from roads and bridges.It owns as well as operates the local as well as arterial road, bridges, major culverts, bus shelters, ferry terminals, 4 Auckland railway lines, car park buildings (Leonidou et al., 2017). The roads in Auckland remain owned straight by the Auckland council, but the tally excludes the state highways in Auckland area. these are owned and maintained by New Zealand Transport Agency.

Organizational culture:

In this company the organizational culture is flexible. The organisation strive for making the culture healthy and increased productivity, efficiency and growth since 2010. The healthy culture of the company has also reduced the counterproductive behaviour as well as turnover of the employees. The staff accept and appreciate diversity and absorb with the industry’s innovation as well as customer service. The managers havestrong sense of direction as well as purposes and acknowledge with the full potential of the employees (Maes & Sels, 2014).There is a strong communication between management of worker’s union regarding the policies along with security issues of the workers. On the other hand, the employees have collaborative participation in the company’s road safety as well as community transport initiatives.

Governmental policies:

Auckland Transport is a council controlled company which enables the organization to work according to the decisions of the council. Under sections 6an 7 of Local Government Act 2002Auckland Transport has majority of its shareholding and depends on the council-controlled votes or council-appointed trustees. This Local Government Act of 2002 exempts the organization from its legislative mechanism and the section 7 manually designate other exceptions. For being New Zealand’s largest council controlled company, the directors are appointed by the cabinet and the council of Auckland (Ceschin, 2013).

Legislation:

Auckland Transport is responsible for designing, operating, maintaining the transport system in New Zealand. They are also responsible for the construction of the transport infrastructure as well as services to the general public of the country (Transport.govt.nz, 2017). New Zealand Transport Agency set rules with annual consultation of the minister and cabinet ministers of New Zealand. The treaty of Waitangi plays an important part as it enables Maori representation in the parliament of Australia. The principles of the Treaty are referred to in several Acts of Parliament. It influences the New Zealand’s transportation council and their work. Many M?ori are Members of Parliament via ‘general’ electorates thus play active part in the legislation regarding state transport system. The national regulations set fees and charges by considering programs then sign agreements with the organisation. Therefore, it gets full support from the government.

Economic dynamics:

The recent economic growth in New Zealand has contributed to the growth of the company. as a part of the council’s program, it gets a considerable amount of economic facilities from the government. Growth in the productivity has been the fundamental driving force of economic growth of the country and it contributes directly to the growth of undertaken agencies like Auckland Transport. Despite the fact that the transport sector grew slower than the real GDP of the country but it grew faster than the demand of the population of New Zealand that helped in total transportation growth (Nzta.govt.nz, 2017). This has resulted in the capacity, congestion as well as environmental challenges. Therefore, concerns for safety, mobility and accessibility has become one of the major interest of economic dynamics in transportsystem.

Technology:

  The company utilizes its talented and skilled workforce for innovation in which they get full technological support (Perez, Popadiuk & Cesar, 2017). They utilise available data for improving the operation of the transport system, thus develop an intelligent as well as shared mobility methods in order to improve the transport choices (Stubbs, Higgins & Milne, 2013). The usage of new technologies like integrated ticketing devices and on street pay-and-display machines has made theAuckland’s transport system efficient as well as resilient.

Sustainable management:

The management of Auckland Transport supports the long term economic performances of the organization. The leaders have managed to maintain a sustainable growth of the organisation that has ensured competitive advantage and increased the organizational flexibility. The selection for sustainable design has added social, economic and environmental value and minimises impacts during the construction, operation as well as maintenance (Dobscha, Mentzer &Littlefield, 2015). The management or the governance group of the company oversees all the development and achievement but never stops to go beyond the next annual progressplan. The company is driven by the best practices for the people and share their own learning with the subordinates. The issues like lower job satisfaction, general stress, higher job stress and turnover intention are allmanaged carefully and efficiently.

Potential issues for improvement:

The company is an example of a functional organizational structure in which the communication within the organization is rather rigid. This makes the organization slow and stubborn. As the company works under the council of transport New Zealand, the directors are chiefly representative of state and central executive body. Therefore, within the workspace, there is a one-way communication between the authority and subordinates. This is largely because of because of the uniform ways of operations along with the higher degree of formalization. This concept has proved to be burden on the company’s growth. The lateral communication among the functions is very important in which there will be two-way communication among the common members and the authority and ensure that all the information is distributed, not only vertically, but also horizontally within the organization. Communication in the organizations will be helping Auckland Transport for future growth as well as sustainability.

Conclusion:

Therefore, it can be concluded that Auckland Transport is positively affected by the external factors that usually create issues any transport companies around the world but in this case the company is supported by the government of New Zealand that has assisted its growth.Despite there are some issues in the work culture and communication gap in this organization, minimum effort from the leadership will be able to manage the situation and contribute in the sustainable growth of Auckland Transport.

References:

Ceschin, F. (2013). Critical factors for implementing and diffusing sustainable product-Service systems: insights from innovation studies and companies' experiences. Journal of Cleaner Production, 45, 74-88. (Ceschin, 2013)

Dobscha, S., Mentzer, J.T. & Littlefield, J.E. (2015). Do external factors play an antecedent role to market orientation?. In Proceedings of the 1994 Academy of Marketing Science (AMS) Annual Conference (pp. 333-337). Springer, Cham.

Google.co.in. (2017). Auckland Transport DIAGRAM - Google Search. Google.co.in. Retrieved 12 December 2017, from https://www.google.co.in/search?q=Auckland+Transport+DIAGRAM&rlz=1C1CHBF_enIN749IN749&tbm=isch&source=iu&ictx=1&fir=vnc1ULhXxXr3CM%253A%252CPpTQp9K9FgcriM%252C_&usg=__B1-14hU9oPfAl7joVYUzZI1B_W0%3D&sa=X&ved=0ahUKEwiOwMfB-4PYAhXK5IMKHf-WDCcQ9QEIPjAK#imgrc=vnc1ULhXxXr3CM:

Grabara, J., Kolcun, M., & Kot, S. (2014). The role of information systems in transport logistics. International Journal of Education and Research, 2(2), 1-8. (Grabara, Kolcun & Kot, 2014)

Leonidou, L.C., Christodoulides, P., Kyrgidou, L.P. & Palihawadana, D. (2017). Internal drivers and performance consequences of small firm green business strategy: the moderating role of external forces. Journal of Business Ethics, 140(3), pp.585-606.

Maes, J., & Sels, L. (2014). SMEs' radical product innovation: The role of internally and externally oriented knowledge capabilities. Journal of Small Business Management, 52(1), 141-163. (Maes& Sels, 2014)

Nzta.govt.nz. (2017). About rules | NZ Transport Agency. Nzta.govt.nz. Retrieved 9 December 2017, from https://www.nzta.govt.nz/resources/rules/about/index.html

Perez, G., Popadiuk, S., & Cesar, A. M. R. V. C. (2017). Internal factors that favor the adoption of technological innovation defined by information systems: a study of the electronic health record. RAI Revista de Administração e Inovação, 14(1), 67-78.

Scoop.co.nz. (2017). Auckland Transport Blog: A Congestion Free Network | Scoop News. Scoop.co.nz. Retrieved 13 December 2017, from https://www.scoop.co.nz/stories/AK1307/S00348/auckland-transport-blog-a-congestion-free-network.htm

Stubbs, W., Higgins, C., & Milne, M. (2013). Why do companies not produce sustainability reports?. Business strategy and the environment, 22(7), 456-470. (Stubbs, Higgins& Milne, 2013)

Transport.govt.nz. (2017). Rules and Regulations | Ministry of Transport. Transport.govt.nz. Retrieved 8 December 2017, from https://www.transport.govt.nz/legislation/regulations/

Uyar, A. & Güngörmü?, A.H. (2016). Investigation 5 of internal and external factors causing unethical behavior of accounting professionals. Sustainability and Management: An International Perspective, p.71.