Unit 4.1        Essay Preview

Look at this examination question about population changes. The student has structured their answer well, but some of the words here don’t fit in with the academic style of the rest. First of all, think for yourself of a more academic way of saying it - then, you can double-click on the words to find a more academic word from the generator. 

‘Population changes present business with specific threats and opportunities’. Using the data provided, discuss this statement in relation to the New Zealand economy over the next 25 years.

Two areas of business which are directly affected by population changes are sales and recruitment. The changes detailed below present a new context in which business must change in order to become more suitable.

In terms of sales, companies need to be aware of the important changes the New Zealand population is going through, not only in overall size, but in ethnicity. One in five young New Zealanders now identify with more than one ethnicity, with a much higher figure in Auckland. This richer ethnic mix suggests that companies may wish to change their marketing mix to improve their appeal to this growing market sector. New Zealand is unusual in having a rising proportion of adolescents in its population, but after 2010, this is expected to change and the average age to rise steadily as in other developed countries. By 2050, about 1 million people, or a quarter of the population, are expected to be over 65 years old. Every business will need to change its sales strategy to service this older population, especially in smaller towns where services aimed at younger people will need to be got rid of entirely because of falling demand.

In terms of size, the population is expected to get stuck at between 4 and 4 ½ million after the rapid growth of the last century. However, migration will continue to be a significant and volatile factor. More than half of the population move house every five years, and this is expected to increase, which means that companies will need to work harder to keep hold of their staff. They may need to change their employment policies to provide greater flexibility, in order to attract part-time workers. The impact of globalisation and increasing competition for skills workers worldwide means that New Zealand companies will need to keep an eye on trends overseas and change their salary structures to remain competitive. Companies which rely on a domestic market, whether for sales or recruitment, will be held back by limited growth and increasing competition.

Migration from overseas is the most difficult population change to foresee, as it goes up and down a lot  from year to year. New Zealand attempts to control external migration by allowing the points required for skilled migration to be different according to the needs of its economy, but may find it more difficult to attract the kind of employees businesses need as other countries target the same shrinking pool of skilled workers. One opportunity available to New Zealand businesses is the large number of nationals living abroad. Businesses which can persuade them to return home have much to gain from the considerable experience these people have built up overseas.

Ministry of Economic Development, the Ministry of Social Development, the Department of Labour & Statistics New Zealand. (2003). Population and sustainable development. Wellington: Government Printer

Statistics New Zealand. (2002). Demographic trends 2001. Wellington, Statistics New Zealand

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