Aim and Purpose of Nestle : Assignment
Added on 2020-01-28
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Business Environment1
Table of contentIntroduction...........................................................................................................................................2TASK 1....................................................................................................................................................31.1 Identify the purpose of different types of organizations.......................................................31.2 Describe the extent to which an organization meets the objectives of different stakeholders.......51.3 Explain the responsibilities of an organization and strategies employed to meet them.................6LO2Understand the nature of the national environment in which business operate ...........................72.1 Explain how economic systems attempt to allocate resources effectively......................................72.2 Assess the impact of fiscal and monetary policy on business organizations and their activities.....92.3 Evaluate the impact of competition policy and other regulatory mechanisms on the activities of a selected organization...........................................................................................................................10LO3 Understand the behaviour of organizations in their market environment ..................................113.1 Explain how market structures determine the pricing and output decisions of businesses..........113.2 Illustrate the way in which market forces shape organizational responses using a range of examples..............................................................................................................................................123.3 Judge how the business and cultural environments shape the behavior of a selected organization.............................................................................................................................................................13LO4 Assessing the significance of the global factors that shape national business activities...............154.1 Discuss the significance of international trade to UK business organizations................................154.2 Analyze the impact of global factors on UK business organizations..............................................164.3 Evaluate the impact of policies of the European Union on UK business organizations.......17Conclusion...........................................................................................................................................182
IntroductionProper use of the resources and the formation of the policies will depend on howefficiently the managers of the organisation can utilise the environment in its favour. Theassignment aims to describe the purpose and aim of Nestle and the process in which itdesigns its organisational activities keeping in mind various global factors that affect it. Theassignment aims to analyse ho then organisation can use the different factors in enhancing theproductivity and the satisfaction of the customers. Figure 1: Company Logo(Source: nestle.co.uk, 2016)TASK 11.1 Identify the purpose of different types of organizationsDifferent organizations have different purposes that depend on the type of customersthey cater. The private sector organizations as opined by Schjoedtet al. (2013, p.10) are3
mostly profit oriented and owned by individuals. The purpose of the private organization isprofit maximization and enhancement of the sales. The private sector organisations are privately owned and impact the growth of theeconomy directly with its activities. On the other hand, the purpose of the voluntaryorganizations is to provide services to the customers without claiming any financial benefitsin return. Public sector organization:- The public organization has the purposes that are inbetween the above mentioned two. The public-sector organization is aimed to provide theservices to the customers that may benefit the society but at the same time has some financialresponsibilities for the well-being of the organization.In public sector organization, government interferes for business operations. Forexample; by preparing and providing policies for production of goods and other activities.Therefore, it is helpful for social welfare and contributing in country's growth. However,public sector entities of UK such as Tesco, Sainsbury work for retail sector and providesgroceries to million customers. Private sector entities:- Furthermore, Rosemann and vom Brocke (2015, p.112)stated that the ownership of the organization determines the purposes of the organization. Theprivate sector organizations that are owned by single individuals are generally devoted onlyin making profits. The owner is the only one responsible thus makes all the importantdecisions for the organizations. Home Depot, and Johnson & Johnson are some of theexamples of private sector organisations. The main purpose of private sector organization to increase profitability at maximumlevel. For these entities, owner and individual of the company makes decisions related tobusiness operations. However, there is less government interference for operating businessactivities. In addition to this, it has large scope and various branches for implementation ofentity. Iceland, River Iseland are private sector firms of UK that have different branchesworldwide.Sole trader:- These are private individuals who run their business as per their ownmind. However, these are self employed employees who makes decisions by their own. Inthis regard, there are some responsibilities of sole trader such as; to keeping records of4
entity's sales and expenses. It presents financial position of entity to create innovative ideasfor further business operations.Voluntary sector organizations:- However, the voluntary organizations that can bedescribed as limited liability organization, where the shareholders and the owners take equalresponsibility of the profit and loss of the organization like the Oxfam and do-it areorganisations where the shareholders and the volunteers take equal part in organising theorganisational activities. The public-sector organisation works has the responsibility ofenhancing the quality of services provided to the society while gaining financial benefits. TheBritish Council and NHS are the example of public sector organisations.Nestle:- It aims to sustain its good reputation in market through analysing businessenvironmental factors and preparing planning for further implementation. However, it isuseful for social welfare and awareness of society regarding products produced byorganization. In accordance to this, entity sets target to establishing good relations withsuppliers and other business entities. Including this, it is useful to create bright future as wellimproving quality services for effectiveness of firm. Hence, increasing efficiency of entitycan be obtained through this process systematically. Nestle Plc establishes good relations with suppliers and other business entities. Itleads to improve service qualities and increasing in demand for its products. In this regard,for establishment of organization, it has to take approval from government that impacts onlegal legislations. Therefore, this entity has interactions with different sectors' organizationsfor providing healthy and secured products. It affects productivity and profitability of entity.1.2 Describe the extent to which an organization meets the objectives of differentstakeholdersThe stakeholders of an organization are the one who are directly or indirectlybenefitted by the working of the organization. The stakeholders take part in the welfare of theorganisation and are Brickson (2013, p.230) described that the organization has to worktowards the maintenance of the welfare of the stakeholders to ensure their participation in theorganization. As far as Nestle is concerned the organization has several stakeholders whohave a varied number of interests in the organization.Stake holdersNeeds of the stake holdersin the organisationEffect of the satisfaction ofthe stakeholders5
CustomersThe most importantstakeholder of theorganization is the customers who are to becatered by providing higherquality of level of servicesand maintains thenutritional value.The satisfaction of thecustomer will decide thefuture prosperity of theorganization. The moresatisfied customers willenhance the brand image ofthe organisation. Thus, Nestle has takeninitiatives that will ensure aproper evaluation of thedemands of the customers andthe increasing the sales.EmployeesThe most important need of the employees in theorganisation is to provide thescope of growth and survivalwithin the organisation. The employees of theorganization are directlyinvolved in meeting thedemands of the customers.Thus an optimizedcontribution of theemployees is essential tomeet the organizationalneeds.Nestle maintains anenvironment of corporatesocial responsibility thatcreates a transparent andhonest environment of workand increases the motivationof the employees.SuppliersFinancial prosperity asdefined by Schnackenbergand Tomlinson (2014, p.200)is important for retention ofthe suppliers who tend tolook out their financial gainsdue to their association withthe organization.Active participation of thesupplier will enhance theprofit percentage of theorganisation and allow theorganisation to be moreinnovative in their productlineNestle has allowed itsshareholders to be a part of theorganisational process byproviding them a clearknowledge of the working ofthe organisation. Thesuggestions of the suppliersare taken in to account by theorganisation to develop amore elaborate plan. 6
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