Macroeconomic Environment for United States of America Analysis Part (Ii)

Topics: Auckland, New Zealand, Air New Zealand Pages: 4 (1170 words) Published: January 22, 2011
EXTERNAL ANALYSIS
PESTEL Analysis will be used to look at the external environment of the Auckland International Airport. It is a suitable tool used to understand the “big picture” of the surroundings in which the Airport Industry operates and it also allows the organization (Auckland International Airport) to benefit from the opportunities and diminish the threats faced by their organization. PESTEL factors are Political, Economic, Social, Technological, Ecological and Legal (Hill, Jones, G.R, and Galvin & Haidar. 2007). According to the Airport Industry some of the key issues that they will have to deal with are Political, Economic and Ecological factors. These factors are likely to produce threats to the airport industry; however the other factors such as Technology and Social can provide opportunities for the company and industry. Looking at Appendix 1:

From the many issues and factors we found on the external analysis, these are certain key issues that I found in this industry that I believe will provide opportunities for Auckland International Airport such as:

1. Political / Legal Issue:

a. Change of Law: Because New Zealand’s government change every 3 years this can become a threat but can also offer opportunities for New Zealand and has an effect on the Airport Industry. For example the change of government can mean change of law. In the past year since the National Party became the government party they have introduced “tax cuts” (Mc Kay, Krishna. 2009). The decrease of taxes will mean an increase in disposable income for travelers to spend. They will be more likely to buy products and services from the Auckland International airport.

2. Economic Issue:

a. Doubling the Good and Service Tax rate from 12.5% to 15% (National Business Review. 2010). This I believe creates an opportunity for Auckland International Airport as more money gain from the original price consumers used to pay before. This will benefit from...
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