Report on Impact of Business Environment on Nestle
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Added on 2020-01-28
Report on Impact of Business Environment on Nestle
Added on 2020-01-28
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BUSINESSENVIRONMENT8
TABLE OF CONTENTSINTRODUCTION...........................................................................................................................3TASK 1............................................................................................................................................31.1 Identify the purposes of different types of Organization.......................................................31.2 Describing the extent to which the Nestle meets objectives of different stakeholder...........41.3 Explaining the responsibilities of Nestle plc and their strategies..........................................5TASK 2............................................................................................................................................62.1 Explaining how economic systems attempt to allocate resources effectively.......................62.2 Assessing the impact of fiscal and monetary policy on business organizations and theiractivities.......................................................................................................................................72.3 Evaluating the impact of competition policy and other regulatory mechanisms...................8TASK 3............................................................................................................................................83.1 Explaining how market structures determine the pricing and output decisions....................83.2 Illustrating the way in which market forces shape Nestle responses....................................93.3 Judging how the business and cultural environments shape the behavior.............................9TASK 4..........................................................................................................................................104.1 Discuss the significance of international trade to UK business organizations....................104.2 Analyzing the impact of global factors on UK business organizations...............................104.3 Evaluate the impact of policies of the European Union on UK business organizations......11Conclusion.....................................................................................................................................11References......................................................................................................................................128
INTRODUCTIONThere are various factors which affect the functions of the organization. These constitutethe business environment (Hamilton and Webster, 2015). The external factors highly affect themicro environment. External factors are uncontrollable and the company has to make strategiesfor overcoming its effects. On the other hand, internal factors are closely related to activities ofthe company. The scenario provided in the file presents Nestle, which is leading food andbeverage organization of Switzerland. In terms of revenues, Nestle is the largest company in theworld. In 2014, it was ranked 72 on the Fortune Global 500. In the present report, purpose ofdifferent organizations have been explained along with the extent to which the objectives ofstakeholders are met by Nestle. Furthermore, this report also explains the impact that variouspolicies such as fiscal and monetary have on organization as well as their activities. In additionto this, the Significance of international trade to UK business environment is covered in thisreport. Further, it also emphasizes as how decisions related to pricing and output are determinedby market structure. Moreover, the impact of policies of the European Union on UK businessorganization is explained in this report. TASK 11.1 Identification of different organizational purposes Corporate world comprises of different types of organizations. This differentorganizations are divided into different sectors (Edelman, 2015). Public, private and voluntarysectors are the different types of sectors. Different sector organization has diverse purposes. Public sector organization- this is the organization which is owned and operated by theGovernment or local bodies for the benefit of people. The authority uses the money thatis paid by people in the form of taxes, for financing public sector companies. This sectorwoerks with the purpose of providing public services to the people. Organizationsoperating in this sector do not have any motive to earn profit (Lainema and et.al., 2012).Resources are used by these organizations for providing benefits to the community.UKAEA, BBC, Royal mail, etc. are examples of different public sector firms.Private sector organisation- The organization which are owned and operated by theprivate or group of people is private sector organization. Partnership, sole trade, franchise8
are the example of private sector businesses. The company works with the purpose ofearning profits, increasing the market growth and shares of the company (Lainema andet.al., 2012). and in addition to this, they do not focus on providing services to thepublic. If the company identifies that the organization is not giving profit then they canalso close the firm. Some private sector companies are Nestle, JCB, Greenergy, Johnlewis, virgin Atlantic etc. For example: Nestle is a leading private organization whichdeals in food and beverage and wants to become the most valuable firm in the world.Voluntary sector organization- These organizations are denoted as charitable companies.Their purposes is of supporting venerable groups and these are non – profit organizations.Voluntary sector organization are those which are owned and run by any nongovernmental or non profit making organisations (Hartwell and Michael, 2015). In thissector, their motive is to fulfil the purpose of gathering a group of people and enteringinto an agreement to achieve the objective. These organizations work with the aim ofproviding services to the people involved. It works for the betterment of the community(El-Manstrly, Liu and Rosenbaum, 2016). The various examples of companies areBarnardo, NAS, and NSPCC etc.1.2 Description of extent of meeting stakeholder objectivesNestle is the largest company in the food and beverage sector. It carries out its operationsin a number of countries in the world. The different stakeholders take initiatives for achieving theorganizational goals (Stakeholder engagement, 2016). They take interest in achieving goals andobjectives of the organization. Stakeholders are the people who influence the business of acorporate entity and also get influenced by the practices of company. The different internal andexternal types of stakeholders are shareholder, customers, employees, financial institution etc.Shareholders- Those people who invest their money to get good return for theirinvestments are the Shareholders. Nestle’s Shareholders are interested in earning goodreturns on their investment, therefore company invest in profitable products and providethem chance to earn good (Rubtsova and et.al., 2015). This group comprises of the mostimportant stakeholders of the chosen organization. They are part of the organization’simportant decisions and they are the one who attend the annual meetings. Besides this,they have right to take decision in the business. 8
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