Discussion on Macro-Environmental Analysis (PESTEL)

1.1         Political of Strategic Analysis of New Zealand and its Econmy

New Zealand enjoys one of the most stable political landscape in the world. With a democratic form of government, the country’s matters are controlled by a democratically elected parliament. Besides, the country is a constitutional monarchy as Queen Elizabeth II is the Queen of New Zealand (Commonwealth, 2020). The Queen appoints a governor-general for the country; however, most of the powers lie with the Prime Minister. The country has a peaceful political environment with very low rates of corruption, which makes it easier for businesses to operate. The fast-food industry of New Zealand, like other businesses, is free from political influence that makes it easier for fast food companies to operate. The government of New Zealand is working more to promote and ease the business environment to attract foreign investors and firms. Thus, keeping in view the political structure of the country, low corruption rates, and significant ease of doing business makes New Zealand an attractive location for IN-N-OUT Burger. Some other points related to this political point of view are for this IN-N-OUT Burger chain are:

Regional regulation for training the staff of New Zealand before they start to work at the restaurants on all aspects of the food quality along with the food safety and hygiene as well.

Handling of food properly.

Staff needs to wear the special aprons and caps that have a specific colour and sign on it to look all similar and maintain the hygiene.

In some of the countries among which New Zealand is the one that has a legislation against the obesity of child, the government campaigned to the young children to reverse out the trends for obesity by eating healthy food.

1.2         Economic of New Zealand

New Zealand is a developed economy with a GDP of $205 billion, ranking 51st in the global ranking (Britannica, 2020). In addition to this, the country is a free-market economy without high governmental influence on economic matters. Thus, the economy is ideal for the businesses as they have high liberty to trade and operate in the country. As of 2018, New Zealand has a GDP growth of 2.6%, with agriculture industry making the major portion of the GDP (IBISWorld, 2020). Also, industries like forestry, horticulture, mining, food and beverage, and tourism are growing rapidly in the country. The trend of dining out and going to cafes is prevalent in New Zealand, and a total of $5.6 billion were gathered in revenue by the restaurants and cafes. The fast-food industry enjoys a significant economic benefit as the cost of raw material is low, and the sales potential is high, which makes increases the profitability of the business in the country. However, the pandemic of COVID-9 has significantly harmed the economy of the country as various economic activities have closed down, leading to a decrease in sales of the fast-food industry. Hence, there is high economic potential for IN-N-OUT Burger in New Zealand, but the market been adversely affected by the pandemic.