Business Environment of Nestle : Assignment

Business
Environment

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Covered in PPT.......................................................................................................................1
TASK 2............................................................................................................................................1
P3 Relationship between various functions of an enterprise and its link with objectives and
structure of firm......................................................................................................................1
TASK 3............................................................................................................................................3
P4 Negative and positive impact of macro environment upon business actions and operations 3
TASK 4............................................................................................................................................5
P5 External and internal analysis of firm to identify its strengths and weakness..................5
P6 Interrelation of strengths and weakness with macro environment elements.....................6
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Business environment is known as mixture of various external and internal component
that affect the decision and actions taken by entity. Change in technology, clients, suppliers,
government, market trends and regulations all come under this. Manager of enterprise remain
responsible to identify these factors and consider the same while formulate business policies and
strategies (Shigang, 2010). Both internal and external elements affect the business operations.
Organisation's structure, culture, policy, rules and norms all come under internal factor and these
are remain under the control of a business entity. Elements such as legal, technological and
political issues is all consider under external factor and firm has no control over these. Variation
in these factors affect the decision making process of an enterprise that's why it is very essential
for manager to consider these factors while formulate policies and plans for business. This
increase flexibility of business operations contribute in growth of entity. Nestle, the largest food
organisation in the world is taken under this report for study. Firm offer different type of food
and drink to its customers.
Different type of organisations with its legal structure and purpose is all detailed in this
report. Link of various organisation's functions with structure of company is also given. Further,
impact of external environment elements business operations in positive and negative way is
discussed in this. In addition to this scope of various type of enterprises and interrelationship of
strengths and weakness of entity with macro elements is mentioned in this report.
TASK 1
Covered in PPT
TASK 2
P3 Relationship between various functions of an enterprise and its link with objectives and
structure of firm
Nestle is largest food company in the world, it manufacture and offer various kind of
food products to its customers for fulfil their requirements. One of the main aim of entity is to
capture a large market share and earn more profits than its competitors exist in market. Nestle
work on a global level and various functions such as marketing, finance, operational and human
resource department work in company (Trevino and Nelson, 2016). Every department perform
various functions which support corporation in achieve its set goals and help in attract large
number of customers. However function of various department of entity are interlinked with each
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other and affect the performance. All this affect final outcomes of entity. Further, interrelation of
various function of department and its link structure and objective of firm is given below under
the following points: Human resource department: This department is known as one of the significant one
because this select and hire the candidates for fill vacancy in enterprise. Further,
performance appraisal of employees, formulation of compensation packages and job
rotation is all carry out by this department (Van Vuuren, Roberts-Lombard and Van
Tonder, 2012). Various efforts are done by manager of this department for hire right
candidate for right job. This increase effectiveness of business operations and provide
better results to entity. Finance department: Formulation of various budgets and allocation of funds to different
department of entity all are the functions that is execute by finance department of firm.
Adequate amount of funds to various department support them in execute their functions
in an effective manner (Werther and Chandler, 2010). Further, this support in wastage of
funds and guide manager to perform all activities as per the set standard so large number
of customers can be attracted to buy the product. Marketing department: Manager of marketing department carry out research in order to
get information about trends of market. Further, various mode of communication are use
by this department to interact with target audiences of firm and to inform about the
features of company's good. Efforts done by this department directly increase the sale of
company's products and increase its net income. Information collected through research
support firm in take decisions accordingly (Wirtz, Schilke and Ullrich, 2010). Activities
perform by this department remain link with the final objective of firm. For example, if
Nestle wants to increase its market share by 20% in coming one year then it will focus
more on marketing of its products to persuade individuals to buy the same. Production department: Manufacture of products and services to satisfy needs of
consumers is execute by this department. Activities of this department remain largely
linked with the objectives of entity. For example; if Nestle wants to increase the quality
of its products then it focus to adopt a production process to enhance the quality of
products.
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