Business Environment of Nestle PLC

BUSINESS ENVIRONMENT
OF NESTLE PLC
P1 & P2

Different types of organizations
Public
 Owned by the government for carrying out business and commercial activities
 Completely or partially owned by the center or state and belong to a separate ministry
 Some of the public sector firms are set up on account of special act of parliament
 Providing essential services to the people of a nation
 Make the best use of resources for overall benefit
 For example, Department of health
Private
 Owned as well as controlled by private individuals on a sole basis or as a team.
 Generate profit for themselves
 Increase the market share
 Grab growth opportunities
 Maximize the sales
 Providing quality services to the people so as to win the trust as well as goodwill and
compete with the competitors
 For example, Nestle

Different types of organizations
Voluntary
 Known as not for profit firms
 Carry out social activities so as to serve the society.
may or may not make use of funds for profit purpose
 These firms are quite separated from the public sector.
 Good integration with the governments at all possible
levels
 Support of government in terms of delivering the
products and services.
 For example, Cancer research UK.

Growth of the international business
environment
 Define - Set of all those factors that put an impact on the overall activities carried out by the
company but across the national borders.
 Need to deal with a lot of environmental and cultural differences which does not makes it an
easy risk.
 In-depth understanding about the legal, social, cultural, environmental factors that put an impact
on its overall working.
 The percent increase in world trade of goods over the last decade - 10 trillion dollars in 2005 to
18.5 trillion dollars in 2014.
 Service sector - 2.5 trillion dollars in the year 2005 to 5 trillion dollars in 2015.
 Possible in spite of the financial crisis faced by the nations.
 Increase is not only seen in developed nations but also the developing ones such as India, China
etc.
 Several factors are responsible for causing this exponential growth
 Saturated domestic markets .
 Development of communication and technology.
 Reduction in trade barriers.