There are many factors that affect business success. One factor which companies, unfortunately, cannot control, consists of external factors. External factors – or the external environment, as it is collectively known – surround an organization can either inhibit success or create a supportive framework for company growth. Different external environment factors include customer demographics and satisfaction, business competition, national and international laws, and the availability of resources, technology and labor. Most of things are not controlled by the organization; they are completely independent factors that affect the prosperity of businesses.

In New Zealand, businesses are feeling the effects of external environmental factors. Much of the business within New Zealand depends on exporting of raw goods and tourism, making the country’s economics very dependent on the global market. Global customers have typically come to New Zealand to acquire needed raw materials, but this business may be in jeopardy. New markets open every day, and New Zealand will have to struggle to keep up with suppliers in the Pacific, South America and Asia.

Globally, the economy has improved in the last several years; however, most countries are still considered to be in a recession, with unemployment rates remaining high. The resulting affect on New Zealand may be a decrease in tourism. Less individuals are capable of affording expensive trips to this distant islands, so the crucial tourism trade might be in for a tough blow. However, since the recession has started to lift, tourism has started to increase – with ongoing economic stimulus, it may be just as successful as it was in the past.

New Zealand has always been a leader in sustainable business practices, and this trend is growing more popular with other businesses around the world. New Zealand’s business may see a positive reaction when other companies begin adopting their sustainable practices. At the same time, competition would be on the rise, which would be a terrible threat to New Zealand’s businesses. The external environment will have serious consequences on the success of New Zealand’s businesses in 2012.