The labour market is critical for Griffins, because unlike most of the name brand competitors in the market, Griffin has its manufacturing units in Auckland itself. This means any change in the labour situation in Auckland and New Zealand will have an immediate impact on the sales of Griffins. New Zealand is well supplied by a migrant market of immigrants. Research undertaken in the migrant market by the Department of Labour indicates that there is a positive fiscal impact of migrations in the amount of $3,288 million in the year 2006 (Brain Gain, 2014). More recent OECD reports on the migrant worker population also indicates that countries such as New Zealand and Australia are benefitting economically because of the labour power of the migrants.
The threat that can be inferred from this fact is that when this form of a price necessity is not transferred by Griffin down to its suppliers in a proper way, price wars might result with the suppliers. The price wars can be resolved and greater cooperation with the suppliers would be assured if Griffins was to “harness the supplier’s product knowledge of a category to grow the market and its value (for both retailer and supplier) rather than just swap volume between suppliers” (New Zealand Flour Millers Association, 2016).
Internal Environment and Future Management Planning
The internal environment are the cultures and values of the organization. The external environment such as that of the general environment and the task environment will have an impact on the internal environment. For instance, in terms of labor and the social aspect, it can be seen that skilled workers are in demand although there is a good migrant population of workers. This necessitates that the company culture must be respectful and responsible towards their workers in order to retain them. Relationship issues with suppliers also have to be resolved.
There are threats in the form of competitors. In order to meet this competitive standpoint, an internal culture of innovation has to be fostered.