Business Environment and Strategy Analysis

This assignment delves into the complexities of the business environment, exploring its various factors and their impact on organizational success. It requires students to conduct a comprehensive analysis of a chosen business, utilizing tools such as Porter's Five Forces and SWOT analysis to evaluate its competitive landscape and strategic position. Furthermore, the assignment emphasizes the importance of corporate social responsibility and sustainable development in contemporary business practices.

Business and Business
Environment

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Different types and purpose of organisations as public, private and voluntary with legal
structure.......................................................................................................................................1
P2 Size and scope of different types of organisation..................................................................4
TASK 2............................................................................................................................................6
P3 Relationship between different organisational functions that link with objectives and
structure.......................................................................................................................................6
TASK 3............................................................................................................................................8
P4 Positive and negative impacts of macro environment upon business operations..................8
TASK 4..........................................................................................................................................10
P5 Conduct internal and external analysis to identify strengths and weaknesses.....................10
P6 Explain strengths and weaknesses interrelate with external macro factors.........................11
CONCLUSION..............................................................................................................................12
REFRENCES.................................................................................................................................13

INTRODUCTION
Business environment may be concerned with various factors such as internal and
external that affects on the organisational functions or activities in which included employees,
customers, business rules or regulation and supply chain which are needed to run the firm. On
the other side, business environment is generally defined as the external forces or those
institutions which are beyond the control and affects on organisation's operations. The main
factors are suppliers, competitors, government, social, political, legal and technological. There
are defined various businesses such as public, private and voluntary. They operate its functions
or activities for the purpose of generating revenues and profits.
This assignment is based on Nestle, a Swiss transnational firm and deals in food and
beverages in the international market. This report will explain various types, purpose, size, scope
and legal structure of this organisation. It will describe the relationship between various
organisational functions that link with objectives as well as structure and also identify the
positive or negative impacts of macro environment upon business operations. This will conduct
internal or external analysis to identify strengths or weaknesses which are interrelated with
external macro factors.
TASK 1
(Covered in PPT)
P1 Different types and purpose of organisations as public, private and voluntary with legal
structure
In the present scenario, there are number of firms who operated their businesses at global
level with the purpose of increasing market image and generate more profits in an effective
manner. They have certain aims or objectives behinds their business operations so that it can be
run in better manner in the international market. Every organisation has their legal structure
according to business nature. There is requires to follows some rules and regulations by the
business firm that formulated by the government which are needed for running an organisation as
well as its activities in an effective manner. In can be classified among various business firms
such as public, private, voluntary. These are essentials for developing country and its economic
condition in more effective ways. It can be understood by considering several types of businesses
with legal structure such as:
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Private Company:
It is define the venture that starts and operates by an individual by considering ownership
of firm. A person comes up with new ideas, innovation, necessary resources, capital, lands and
many more for the purpose of running business. These types of businesses are also known as
private company. They have certain rights for issuing shares or stocks and possession of owned
properties so that business can be run and accomplish set targets as well. In this, several defined
restrictions or limitations as per the legal structure that they do not perform such tasks regarding
public exchanges including Initial Public Offering (IPO) and not consider any Securities,
Exchange Commissions (SES) that are restricted in public companies for fulfilment such
requirements.
Nestle is world's most famous company that deals in foods and beverages at global
market. It has established in 1866 in Switzerland. They serve a number of products including
baby food, dairy items, frozen foods, tea, coffee, medical and many others.
Purpose of Nestle:
 To satisfy customers desired expectations by providing better quality of goods and
services
 To achieve competitive advantages and increase market position at international level
 To enhance productivity and profitability with wining trust of society people and
improve their life
Legal structure of private company
 Partnership: In this consider those ventures that started by two or more individuals and
they make an agreement for running business operation. They generally come up with
new ideas and necessary resources for operating functions as well as activities to
accomplish set targets or objectives in an effective manner. In this, partners make a
contract and decide every task or activities with showing their interest in starting a new
venture. Every individual have rights to share profits and liabilities that depends on the
situations during running of business.
 Sole Proprietorship: In this, an individual comes up with several resources and
appropriate funds for the purpose of starting and operating business functions or
activities. They take responsibility for organising, directing and controlling over
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operations while running an organisation. In these kinds of firms, owners have separate
legal distinction to operate the business.
 Limited companies: There are define another separate legal entities that describes
distinct a particular owner from other. They follow some rules or regulations as per the
legislations and also consider the shares or guarantees with limited companies. In this
also describe the limited liabilities for owners and shareholders for the purpose of
operating business in an effective manner.
Public organisation
Public companies are those that operate and run by government authorities and perform
tasks for the welfare of society. In these, businesses includes public transportations, free
educations, military, police services, health and safety firms and many more that provide better
services and safety to people and regulate by the government of nation. They take responsibility
for managing and running such businesses and provide effective services and protections to
public within a country.
National Health Services (NHS) is providing various healthcare services to the social
people as it is founded in UK. They deals in various healthcare services and serve better facilities
to the public for improving their health conditions in well manner. In this included number of
facilities such as dental, medical and optical care services that are requires to provide better
services to the social people for their health improvement as well.
Purpose of NHS:
 Provide better quality of services to the people in cheap cost.
 To treat every individual with effective medical services.
 To become world's largest healthcare centre and achieving set targets in limited time
period.
Legal structures of public company:
 Central government: These kinds of businesses generally operates and regulates by the
states as well as central government department.
 State government: their main aim is to perform several tasks and contributes more in
such agencies activities as well.
 Local government: They play vital role in managing these kinds of firms by considering
number of activities and functions.
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Voluntary organisation:
In this defined various companies that perform entire tasks regarding providing social
helps and support to other volunteers as well. Their main aims is to give several services or
facilities to needy people for fulfilling their desired expectations and wants in an effective
manner. It is also known as non-profit firms who give various services to the social people rather
than earning profits. There is required to take permission from country's government regarding
starting such kinds of venture so that particular aims or objectives can be accomplished in well
manner.
Oxfam is one of the best firm who provide such types of services to the needy people and
also consider charity or donations to the poor people who are required for living life. Their main
purpose is to overcome the poverty of the nation and satisfy customers needs or wants. Voluntary
firms always consider the critical situations and provide support to the needy people including
natural disaster, pro-migration, provide relief, advocacy, and policy research as well. It
established in 1942 and focusing on giving appropriate help to the volunteers.
Purpose of Oxfam:
 To give better facilities or services to the social people for fulfilling their requirements.
 They try to overcome poverty and provide financial support to the needy people.
 To provide education to the poor children to reduce the illiteracy and develop country.
P2 Size and scope of different types of organisation
There are define various types of businesses with different nature that perform entire
activities or functions for meeting desired expectations or needs or wants in an efficient manner.
For example NHS, Nestle and Oxfam that have wide scope, size and nature which are different
from another firm. In this included several types of components such as locations, size aspects,
business activities and particular areas etc. every business performs its tasks or works by
considering business operations, activities and functions which must be performed in an effective
manner so that company can be run or achieved in well manner. Here are defined some size, and
scope for an organisation such as:
Nestle
 Size: Nestle is Swiss transnational food and drink company that deals in international
market. They focus on customers needs or wants and give best quality of goods and
services to them so that better relationship can be built. Nestle undertakes health and
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safety factors which must be necessary for customers healthy life and make them loyal
towards firm for long term benefits as well. This firm was established in the year of 1866
and also diversified its business at number of business. They have various products line
and provide different foods or beverages products to the customers. It has around 447
factories in the world and there are approximately 339000 workers are working for
getting better possible outcomes. L'orial is the part of Nestle which is world's largest
cosmetic brand.
 Scope: There are wide of scope of the Nestle firm as it has diversified the business into
various products line and also serving number of items in the market place. In this
included foods, medical, coffee, tea, drinks, water bottles, Kit-Kat, Maggie, Frozen
foods, snacks, pet foods and ice cream etc.
 Vision: Nestle is dealing with number of products to the targeted audiences by
considering their health and safety so it is necessary to serve better quality of items so
that they can attracts towards firm. Their main aim is to produce and deliver effective
good and services to the customers for avoiding any side effects and fulfilling their basic
requirements as well.
 Missions: The missions statement of Nestle organisation is to become world's number
one firm in giving various services with nutritions. It will support in achieving audiences
trusts and improve health in an efficient manner. Therefore, they are serving better
quality of foods and beverages in the marketplace.
NHS
 Size: The National Healthcare Services is giving various kinds of facilities or services
regarding health at cheap costs so that their health can be improved in more effective
way. They are providing different medical services and others such as optical, dental and
many more by arranging some components and give better facilities to them for the
purpose of improving health conditions of patients in well manner. It has established in
the year of 1948 at UK. They are providing healthcare services at free of costs to the
social people.
 Scope: There are also have wide scope of NHS in the marketplace as they are giving
number of services to the societal people so that they can feel reliefs from various
diseases, allergy, infections and other health related problems as well. NHS helps in
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giving better treatments to the patients by considering their actual problems. There are
many of experts and specialists appointed in the NHS who are providing various facilities
such as medical, therapies and other treatments as well.
 Visions: Their main purpose is to give good or healthy life to the patients by making
them feel relief and relax. They also focus on creating skilled and experts staff workforce
for the purpose of fulfilling customers requirements in better way.
 Missions: The mission statements of NHS is providing better quality of services or
treatments so that they can satisfied their needs or wants.
Oxfam:
 Size: In this defined that Oxfam is dealing in several countries and it also has around 20
charitable trusts at the global level. Their main aim is to overcome maximum poverty
and provide helps to the needy people so that they can live their lives in more
appropriate manner. Oxfam has established in 1942 and it is focusing on removing poor
conditions of the country and also supporting to the volunteers.
 Scope: They are giving number of facilities to the people in any circumstances in which
included, floods, tsunami, natural disasters, whirlwind, typhoon, earthquake and many
more. So that every individual feel fulfil their needs or wants in an efficient manner.
 Vision: The major purpose of this firm is to remove unemployment and poverty of the
country by providing effective facilities or services to the people. They try to fulfil the
basic requirements and give better solutions to poor person.
 Mission: Oxfam is giving various kinds of facilities and support in living standards of
people so that poverty can be reduced.
TASK 2
P3 Relationship between different organisational functions that link with objectives and structure
In this consider number of functions of activities that must be performed by an
organisation as these are necessary to achieve set targets or goals in better ways (Reed and et. al.,
2013). Every organisation focus on creating huge customers and increase market shares by
performing various functions or activities so that predetermined goals can be attained. In this
included production, operations, IT, administrations, customers relations management, research
and development, marketing and sales department and accounting and finance for keeping
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records and maintain business performances in an efficient ways. These all play vital role in
every business firm as they can increase sales volume, profits and market shares by formulating
appropriate strategies and action plan as well. Therefore, many of organisations focused on
performing entire activities as well as operating business in an effective manner so that
maximum outcomes can be achieved and increase goodwill at the particular marketplace. These
are interlinked with business objectives and goals (Reinhardt and Stavins, 2010.).
Therefore, several departments play crucial role and perform various functions or
activities such as marketing, finance, operational, human resources and IT functions etc. which
are required to attain set targets or gaols of the company. The main objectives of this firm is to
give better healthier life to the customers and won their trust for accomplishing defined outcomes
as well. Every functions should be performed in an effective manner by considering
organisational gaols and long term benefits.
Human resource department: In the every business firm, there is require proper staff
members and workforce so that particular gaols can be attained. There are several activities and
functions exists which performed by the HR department such as recruitment and selections,
orientation, training and development, remuneration and discrimination, and performance
appraisals of employees so that better organisational workforce can be created and also complete
entire tasks in well manner. HR manager play vital role in appointing best suitable candidates
who are able to perform any particular work and get best possible outcomes so that company can
attain its goals or objectives (Shigang, 2010). Nestle is dealing at global market and it has
number of factories across the country so they required high skilled person or educated staff who
can bring innovative ideas or unique creation in the existing goods or services within the
company. They also conduct such training and learning sessions for employees for the purpose
of enhancing their skills or knowledge.
Marketing department: This department play crucial role in the business because it
provide adequate informations regarding firm such as finding the actual market situations,
customers demands, competitors and new trends so that company can formulate strategies and
make better plan for manufacturing of goods or services and meet customers requirements in
well manner.
Financial department: This is also necessary department for every business firm as there
is requires to make an appropriate budget and arrange funds for running business and its
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operations to get maximum returns within the firm. In this, company focus on taking corrective
actions and make favourable decisions regarding arranging resources and utilising these for the
purpose of generating higher returns. It play an important role in running entire business
performance without any barriers.
Production department: It is directly linked with marketing department as they provide
accurate information to the manufacturer so that they can balance supply and demands and also
achieve set targets in an appropriate way. Nestle is considering this for producing better quality
of goods and satisfy customers desired needs or wants (Karagiorgos, Drogalas and Giovanis,
2011).
Organisational structure
 Function based: There are required to perform entire various tasks or activities by
considering several functions such as marketing, finance and human resource etc.
 Geography based: It consider that there are several businesses which are classified into
various groups by considering some basis such as according to consumers behaviours
and regions for operating business and generate higher revenues in effective manner.
 Products based: Company make decision regarding production as they diversify the
products or services and create more customers in an appropriate way. Nestle is giving
number of foods and beverages to the targeted audiences in the marketplace (Kolk,
2016).
 Consumer based: This is based on consumer behaviours as how they can satisfy their
needs or wants and also identify desired demands as well. Company take favourable
decision and action plan for bringing new ideas or innovation within the firm for
producing specific new goods or services or modify existing one.
TASK 3
P4 Positive and negative impacts of macro environment upon business operations
In the present era, every firm is trying to adopt best technologies and appropriate
marketing functions or activities which are required to attain set targets in well manner.
Marketing department play an important role in getting more information and providing best
solution to the firm as it is an essentials for achieving set targets or goals with more effectively.
In this included the best procedure for conducting a research or survey and also collect data or
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information which are needed to identify the desired demands, market trends, situations analysis,
competitors and customers choices so that company make decisions regarding producing of
goods and services for fulfilling their desired expectations in an appropriate way. Nestle is
dealing with several products in the international market so it is necessary to undertake various
functions so that set goals or targets can be achieved and also increase more profits within the
firm (Nishitani and et. al., 2012). There are various environmental factors that can affects on the
business firm such as political, legal, technological, economical, social and environment which
have major impacts on the business operations and its brand image as well. It can be analyse by
following such as:
Political: Nestle is dealing in the international market so it must be required to understand
the particular rules or regulations and analyse forces that can affects on the organisational
functions. It includes governments stability, import and export excise duty, code of conducts,
taxation, permission from government for entrance etc.
 Positive: There can be positive impacts of the political force is it favourable for the
business firm. Nestle is selling best quality of products by undertaking health and safety
policy of the government of country.
 Negative impacts: it has negative impacts because government is formulating rules or
regulation regarding taxations and make policies which can affects on the business
operations.
Economical factors: Nestle is providing its products or services at several countries where
currency and economic changes can be impacts. In this includes growth , currency, fluctuation in
economy as inflations or deflations which can decrease the profitability as well.
 Positive: there is requires adequate informations about changes in economy so that
company can grab opportunities for increasing sales or generating profits.
 Negative: It has negative impacts due to decreasing in growth rates which directly affects
on the profitability and productivity (Osterwalder and Pigneur, 2010).
Social factors: There are various social factors which can affects on the organisational
environment such as customers, beliefs, region, genders, educations and culture which can
decrease the productivity.
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 Positive: In this is require proper environmental study or research so that company can
analyse customers needs or wants, choices, preferences and behaviours so that customers
can be attracted.
 Negative: It also have various negative impacts such as illiterate people, lack of
knowledge, and inefficiency of work for performing any tasks or works in well manner.
Technological: In this defined that several tools or techniques are launching in the market
that must be adopted by the company for the purpose of achieving tasks or objectives in well
manner.
 Positive: It can have positive impact due to adoption of new techniques which will
support in making entire work in easy manner. In this included online works, e-
commerce and company web sites as well (Osterwalder and Pigneur, 2010).
 Negative impacts: new technologies requires proper skills or knowledge for adoption and
uses. Lack of knowledge can affects on the organisation.
Legal factor: In this included various rules or regulations that can impacts on Nestle
performance therefore, legislation or laws must be performed by the firm.
 Positive: Nestle has to follow health and safety of consumer for running organisation.
 Negative: There are several legal laws or legislation and rules, regulation that can affects
on the business functions.
Environmental: It must be erquired to maintain the environment clean and effective so
that targets can be achieved.
 Positive: Nestle can create better organisation and build brand image through safe
climate.
 Negative: If it is not considered then company can decrease its brand image or goodwill.
TASK 4
P5 Conduct internal and external analysis to identify strengths and weaknesses
There are define SWOT analysis of Nestle firm which requires for identifying internal
factors such as:
Strengths of Nestle:
 Strong market image: Nestle have strong reputation and good image among competitors
in the international market (Pikka, Iskanius and Page, 2011).
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 Distribution network: This firm has better distribution network for providing goods and
services and reaching at customers.
Weaknesses:
 Brand structure: There can be difficulties to formulate structures due to broad
segmentation.
 Legal and consumer issues: some issue can arise as market shares, brand image and
customers so legal requirements have major effects.
Opportunities:
 Market expansions: Company can expand its business at various countries for
maximising growth or shares (Pulver, 2012).
 Provide better quality of products: They can increase their market shares and satisfy
customers by providing quality of services.
Threats:
 Competition in the market: It is the biggest threats of the firm where competitors are
entering into new marketplace with various tools or innovative ideas as well.
 Price of commodities: Company can face losses due to increasing pricing of particular
goods and services.
P6 Explain strengths and weaknesses interrelate with external macro factors
There are requires to analyse several factors such as internal and external that can affects
on the business. It is necessary to analyse strengths or weaknesses to attain goals.
Political: In this includes code of conducts, rules or regulation and government stability
that can impacts on the Nestle firm.
 Strengths: It is necessary to identify regulations, tax rates and various aspects to increase
brand image (Avramenko, 2012).
 Weaknesses: there may be difficulties to understand these regulations.
Economical: In this consider fluctuation, inflations and deflations which can affects on
company's profitability.
 Strengths: Nestle can increase its profits by dealing in Asian countries.
 Weaknesses: Factors regarding currency exchange or rates can impacts negatively.
Social: In this includes customers culture, attitudes and beliefs which affects on the
customers choice.
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 Strengths: Nestle serve better quality of goods and services as per customers
requirements (Bovee, Thill and Raina, 2016).
 Weaknesses: Customers behaviours and tastes can affects on the business operations.
Technological: It is related with various advanced technologies and new creations that are
launching in the market so it can affects on the business firm due to adoption of new techniques.
In this also includes communication modes, intellectual property, legislation and other issues.
 Strengths: In this, new technologies can bring effectiveness in the work and make easy to
access for achieving success.
 Weaknesses: it can increase cost factors due to adoption of such technologies within the
firm.
CONCLUSION
From the above report, it has been concluded that business environment have major
impacts on the operations as it can affects on productivity and profitability. There are two types
of factors such as internal and external that can decrease the value or brand image of the firm in
the market. Therefore, it requires proper study and appropriate market strategies so that
predetermined goals or objectives can be achieved. This report defined about various types of
organisation as public, private and voluntary etc. it also describe different structures or scope for
running business operations. Nestle is dealing with various products at global market. They have
opportunities to expand business and increase brand image by analysing such factors in an
effective manner.
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REFRENCES
Books and Journals
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McGraw-Hill/Irwin.
Reinhardt, F. L. and Stavins, R. N., 2010. Corporate social responsibility, business strategy, and
the environment. Oxford Review of Economic Policy. 26(2). pp.164-181.
Shigang, Y., 2010. Competitive strategy and business environment: The case of small enterprises
in China. Asian Social Science. 6(11). p.64.
Karagiorgos, T., Drogalas, G. and Giovanis, N., 2011. Evaluation of the effectiveness of internal
audit in Greek Hotel Business.
Kolk, A., 2016. The social responsibility of international business: From ethics and the
environment to CSR and sustainable development. Journal of World Business. 51(1).
pp.23-34.
Nishitani, K. and et. al., 2012. Are firms' voluntary environmental management activities
beneficial for the environment and business? An empirical study focusing on Japanese
manufacturing firms. Journal of environmental management. 105. pp.121-130.
Osterwalder, A. and Pigneur, Y., 2010. Business model generation: a handbook for visionaries,
game changers, and challengers. John Wiley & Sons.
Osterwalder, A. and Pigneur, Y., 2010. Business model generation: a handbook for visionaries,
game changers, and challengers. John Wiley & Sons.
Pikka, V., Iskanius, P. and Page, T., 2011. The business enabling network–a tool for regional
development.International Journal of Innovation and Regional Development. 3(3-4).
pp.324-344.
Pulver, S., 2012. Business and the Environment.
Avramenko, A., 2012. Enhancing students' employability through business simulation.
Education+ Training. 54(5). pp.355-367.
Bovee, C. L., Thill, J. V. and Raina, R. L., 2016. Business communication today. Pearson
Education India.
Hair, J. F., 2015. Essentials of business research methods. ME Sharpe.
Hamilton, L. and Webster, P., 2015. The international business environment. Oxford University
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Online:
Business Environment. 2018. [Online]. Available
through:<https://www.slideshare.net/NikhilSoares/business-environment-
featuresmeaningimportanceobjectives-porters-model>
What SWOT Analysis is in simple words. 2016. [Online]. Available through:
<http://pestleanalysis.com/swot-analysis-examples/>.
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