Business Environment Report of Nestle


Added on  2020-07-22

17 Pages4743 Words110 Views
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INTRODUCTIONBusiness environment refers to the surroundings in which firm operates. It consists ofinternal and external forces that affect functions of company. Factors includes in it arecustomers, suppliers, government, competitors, political, legal, cultural, social and technologicalconditions. Both the factors, internal as well as external put positive or negative impact onbusiness operations and functions. So, it is necessary for firms to consider all these factors inorder to successfully attain business objectives (Asif, Garvare and Ahmad, 2011). Considerationof these factors helps managers in formulating effective plans & policies. In the presentassignment, chosen organisation is Nestle which is a private business enterprise and deals in food& drink products. This report also includes public & voluntary organisation, i.e., NHS andOxfam. Types, purposes, size, scope of different types of business enterprise are defined.Relationship among various functions of organisation and their link with its structure andobjectives are included in the report. Apart from this, positive & negative influence of macroenvironment on business operations are identified as well as internal and external analysis isconducted for determining strengths & weaknesses of firm. TASK 1 P1 Different types & purposes of business organisationsIn business environment, three types of organisations are operated, i.e., public, privateand voluntary sector. Each one of them has its different legal structure & purpose whichdifferentiates them. Management has the duty to comply with all the laws and regulations madeby government. This assists in effective development of operations in various countries &attainment of firm's objectives. Different types, purposes and legal structure of organisations aredefined below: Private organisation: The firms that are owned, operated & controlled by single individual are referred asprivate organisation. Such companies does not require to fulfil any conditions that are made bysecurities & exchange commission. On private sector firms, many restrictions are imposed suchas, these organisations are not permitted to trade their share in public stock exchange. Theoperations of such firms are not under control of government. Major purpose of privateorganisation is to earn huge profits. Best example of private sector company is Nestle. Overview of Nestle:1
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Nestle is one of the largest Swiss Transnational food & drink company in the worldwhich is known by its high quality products. The firm is headquartered in Vevey, Switzerlandand is considered by largest company by its revenues. Different products provided by Nestle areice cream, bottled water, baby food, snacks, chocolates, coffee, tea, dairy goods etc. Thecompany administer their products in around 194 countries and 339000 employees areemployed by it. Purpose of Nestle: Similar as other organisations, main purpose of Nestle is to earn large amount of profitsby administering high quality products to its customers.Contributes in providing healthy future and enhance life style quality of customers.To inspire people for living healthy life. To work for welfare of society and attain high position as well as long term sustainabilityin market. Legal structure of private sector organisation: The legal structure of private sector organisation is categorised into three types which aredefined below:Partnership: In this, two or more individuals come together and sign a partnership deedin order to establish & run business. With the mutual consent of partners, an organisation isformed which is known as partnership firm. In such kind of companies, profits and losses areequally distributed among all the partners. The parties eligible for partnership includesgovernment, businesses, individuals, schools, interest based organisations etc. Sole proprietorship: The firms which are owned, operated & controlled by a singleindividual are termed as sole proprietorship. There is no legal differentiation among owner andbusiness entity. Owners of the business are solely responsible for all the profits & losses bear byfirm. Limited companies: These firms can be categorised into 2 types, that is, limited byguarantee & shares. Members of such companies has limited liability as per their investment inbusiness. Merits and demerits of private sector organisation: Merits Demerits These organisations are not interrupted byPrivate sector firm are not thinking about2
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