Assignment on Business Environment of Nestle

Business
Environment

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Types and purposes of different organisations & their legal structure..................................1
P2 Size and scope of different organisations..............................................................................1
P3 Interrelationship between organisation functions and objectives..........................................1
..........................................................................................................................................................4
TASK 2............................................................................................................................................4
P4 Positive and negative influence of macro environment on business operations....................4
P5 Internal and external analysis to identify strengths & weaknesses........................................6
P6 Interrelationship of strengths and weaknesses with external macro factors..........................7
CONCLUSION................................................................................................................................9
REFERENCES .............................................................................................................................11

INTRODUCTION
Business Environment refers to the surroundings in which firm operates. It includes
various internal as well as external factors that influence operations and functions of an
enterprise. It is crucial for managers to consider all such forces that directly impacts upon
working of business concern. It assists them in formulating effective plans & policies and
implementation of those (Asif, Garvare and Ahmad, 2011). This assignment is based on Nestle,
which is a largest food company measured by its revenues. The firm has headquartered in Vevey,
Switzerland and offer various food & drink products to customers. The report includes public,
private, voluntary organisations as well as their purposes, size, scope and legal structures.
Relationship between different organisational functions and objectives are also defined. In
addition to this, positive & negative impact of macro environment on business operations is
described. At last, SWOT analysis will be conducted to determine strengths & weaknesses and
their interrelationship with external macro factors.
TASK 1
P1 Types and purposes of different organisations & their legal structure
Cover in ppt.
P2 Size and scope of different organisations
Cover in ppt.
P3 Interrelationship between organisation functions and objectives
Nestle is one of the strong brand which offer variety of products throughout the world.
Main objective of firm is to maximize profit and generate high revenue. Various efforts are put
by company in order to meet needs of consumers. Different departments are functioning in an
organisation like human resource, production, marketing, finance etc. Roles and responsibilities
of each department is distinct but their objective is similar. These all work with common interest,
that is, attainment of goals and objectives of business (Bhaduri and Ha-Brookshire, 2011). In
Nestle, these departments work collectively to perform operations in effective manner.
Collaborative efforts of these functional departments facilitates firm in attaining its objectives
and targets. Various functions that are performed in an organisation are defined below:
Human Resource Department: It is an important department of firm which is concerned
with recruitment and selection of human resource. In Nestle, managers anticipate manpower
needs of organisation and hire candidates on the basis of that. Based on individual's skills and
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abilities, right position is assigned to them. They also design training programme for employees
in order to increase their potential. Proper training programme gives an opportunity to workforce
for enhancing their skills and knowledge related to work (Cavusgil and et. al., 2014). This
enables them in performing their tasks in better manner and attain objectives of company.
Performance appraisal is also done of employees to increasing their motivation level. All this
assists in improving productivity and performance of employees and leads the organisation
towards growth and success.
Finance department: Finance is life blood for every organisation. It is the major factor
on which success of firm rely. Major responsibility of finance department is to formulate budget
and allocate funds to various departments so that all the activities and functions of firm are
executed in proper way. It is important for every business firm to have adequate funds in order to
run day to day operations of business. Finance manager ensures that appropriate amount of funds
are available within organisation. It assists in attaining objectives of company in effective and
efficient manner.
Marketing department: It is also one of an important department which plays major role
in growth and success of company. Marketing managers conduct research for getting information
about market trends & customer needs. They formulate effective plans and policies as well as
implement them to market their product (Chetwood and et. al, 2014). Various promotional tools
are used by managers to effectively promote their product in market and communicate their
value and benefits to customers. This will assists Nestle in attracting more customers and gain
their loyalty towards brand. Effective marketing also increases sales of firm's products which
will ultimately increase revenues of company.
Production and operations department: This department is concerned with production of
goods and services. Products are manufactured for the purpose of satisfying needs of consumers.
In Nestle, operations manager ensures that all available resources are utilized in proper way so
that production cost can be minimized. Activities of this department are highly interlinked with
objectives of company. This department also emphasize on quality of product. Operations
manager ensures to provide high quality goods to customers. It assists in increasing profitability
of company by satisfying needs of customer (Crane and Matten, 2013)).
Structure of organisation:
Company structure is divided into 4 parts which are defined below:
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