Business in New Zealand

Introduction:

The main purpose of this report is to provide the solutions regarding the questions that are based on the case study. This report will apply the knowledge of accounting and finances, analyze the external environmental factors in New Zealand economy, the purpose of human resource planning and management process and stakeholders relationships to sustain and establish the effectiveness of a business entity. At the same time, this report will also describe the four different self-management skills that can be developed by the CEO, Sam Bridgewater in relation to effective management of working environment to ensure the success of the business. Furthermore, this report will also suggest the five different leadership skills that need to be developed to CEO Sam Bridgewater for managing the effective working environment to makes sure the success of business in the business environment.

Question 1: Best Internal or External equity finance options to Sam Bridgewater:

There are various types of equity finance that can be used by Sam Bridgewater for the sustainability of business like venture capital, startup capital, angel investors, Crowdfunding, and others. These are the various options of equity finance that can be used by the company.

• Venture capital is a type of equity finance that investors provide to small business and startup companies as they believed that these businesses have long term growth potential (Jones et al, 2013).
• Finance with self-earned money or startup capital is also an option of equity finance in which new business is just started off and it considers the money of investor or owner that is made to start the entire business.  

Based on this, it can be stated that venture capital is the best equity finance option to Sam Bridgewater that would be an institutional investor of the enterprise. The use of this option will support to get higher growth in business and generate new trends as well. For instance, the venture capitalists may be a larger firm and an individual person (Cumming, 2012). Venture capitalists focus on high growth and young companies to invest in a business as they have a larger amount of money for investment. The venture capitalists expected to have a larger share of control in the business enterprise as they invest a larger amount of money within the company.

Question 2: Four appropriate sources of short-term borrowing to the CEO of the PFC:

Following are the four different sources of borrowing are suggested to CEO of the PFC that can be used for short term borrowings are as:

• Overdraft agreement: in use of this option PFC needs to enter into an overdraft agreement with the bank. After this, it would be allowed to take borrow up to a certain limit and bank can ask regarding the collateral security as well as interest can be charged on daily basis at a variable rate (Brigham and Houston, 2012).
• Discounting of bills: in the use of this source, the bank lends the money without any collateral security. This will allow PFC to draws a bill of exchange regarding the goods of the buyer on credit and bill payable is purchased by the bank on demand and bank credit the bill amount less discount from the customer’s account (Brigham and Houston, 2012). This bill is presented by the bill on the maturity of the bill to its acceptor regarding the payment.
• Advances: this source can be adopted by the PFC in which it would be allowed to get the advance payment from the agents or customers against the orders that will help the company to generate the finance. In the use of this method, the PFC also would be able to channelize the various operations and reduce the investment in working capital.   
• Instalments: in the use of this method company PFC would be able to purchase assets and take possession of goods immediately while they can make payment in instalments over a defined period of time (Matters, 2019). In this company can use the unpaid price or amount ass short term working capital while they need to pay interest on the unpaid amount which may support the PFC to meet with the short term financial need and support to grow fast in the competitive market.  

Question 3: Three external environmental factors on the PFC:

Following are the different external environmental factors are described that has a positive and negative impact on the PFC.

Political factor: There are various trends which impact the PFC Company in having positive effects on the healthier options in relation to providing healthy and proper food. In New Zealand, there is political stability that provides a safer environment to businesses and investors as well as there is a low level of corruption and higher governmental transparency. This provides the opportunity to PFC for operating a business and continuous growth within New Zealand because due to political stability the policies of government will run for the longer time period (Gov UK, 2019). Furthermore, the company also targets those patients which are facing various eating issues including swallowing issues which may support to improve the international trade.

Economic Factor: After economic reforms, the economy of New Zealand is growing. The average income of the household in the country is about $ 67,028 which indicates that the economy of the country is doing good as people have the purchasing power by the products/services (Revolvy, 2018). In relation to improving the country economic position, the company PFC is provided different promotions and discounts to its customers as well as keeps its price low that helps to attract a number of customers and improve the savings of households in the country. At the same time, the higher interest rate can affect the performance of PFC in negatively as it increases the cost of borrowings and others that may decrease its profitability.

Socio-Cultural factors: There are various social factors such as taste and preference, needs and wants culture, and others which may effect the performance of the business organizations in both positive and negative aspects within the country. In relation to this, the people in New Zealand who are facing eating difficulties related to dementia, cancer, broken jaw or no teeth, stroke, and others are looking for nutritionally fortified meals. This will support the PFC in its business growth and success in the New Zealand market as the company is offering the nutritionally fortified meals in plastic pouches to patients which are facing eating issues that can help PFC to improve its sales and market presence with improving its customer base (Gatrell and Elliott, 2014). In addition to this, use of slogans may support the company in making its brand successful in the market.

Question 4: Three objectives of the Human Resource planning and management process:

There are different objectives of human resource planning in the context of PFC are as below:

·         The main purpose or objective of human resource planning is to ensure the effective supply of manpower as when needed. In relation to this, effective human resource planning supports the business firms in analysis and assessing the number of human resources that are required within the firm to perform the future and present business functions and operations (Armstrong and Taylor, 2014).  

·         To determine the needs of training of employees within the company as human resource department record and measure the performance of employees that helps in identifying the lacking areas of employees which needs further improvement and development to perform tasks or duties more effectively.

·         To achieve the goals as human resource planning support in achieving of national, organizational and individual goals (Bailey et al, 2018). This is because human resource planning is linked with the career planning effectively which enables to achieve or fulfil the individual goals with achieving business goals and objectives.

In this way, it is needed or essential that developed human resource plan of the company PFC must be realistic and genuine. This is also needed that company should maintain a balance between the demand and supply of the human resource that can contribute in reducing and controlling the labour cost that may increase the profitability of the PFC in a positive manner. It is also essential that the marketing team should have effective communication and organization skills (Boxall and Purcell, 2011). In addition to this, the marketing team should be organized and must be able to communicate and convince the customers to purchase the offered products and services. In relation to this, the company PFC should hire the employees through using the job portals and campus requirements.   

Question 5: Three stakeholders for the PFC:  

Stakeholders are those people or party which have an interest in the business organization and can be affected by the business. In other words, a stakeholder refers to a group of people or a person who own or have a share in a business. The stakeholders include the customers, employees, citizens, and others which are involved in the company (Ackermann and Eden, 2011). There are different stakeholders for the PFC which are described or discussed as below:

• Maia Royal and George Bridgewater (Partners): in the business Pure Food Co (PFC) George Bridgewater and Maia Royal invested their funds and their energy and time within the company. At the same time, they also contributed to the success and growth of the Pure Food Co (PFC) business. Maia Royal and George Bridgewater area the stakeholders for the Pure Food Co as they invested their time and money in the company so they have an interest in the business and may be influenced by the business.
• Sam Bridgewater: the idea of the nutritionally fortified meals and supplying aged care facilities are of the Sam Bridgewater as he is the mastermind of this innovative product idea and concept of the company. In this way, Sam Bridgewater has high interest and stake within the company.
• Customers: the customers are also stakeholders of Pure Food Co (PFC) as they purchase and consume the products and services of the company. It means customers have an interest within the business. At the same time, customers are the main cause or reason for the development of products and establish the company  (Ackermann and Eden, 2011). In relation to this, the satisfaction of the customers is important for the company to ensure its success within the market.