Analyzing Business Environment of NESTLE : Assignment

Business
Environment
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Table of Contents
Introduction........................................................................................................... 3
AC1. Understanding the organizational purposes of the business.........................4
AC1.1 Identifying the purpose of different types of organization...........................4
AC 1.3 Explaining the responsibilities of Nestle and strategies employed to meet
them...................................................................................................................... 6
AC2. Understanding the nature of the national environments in which Nestle
operate.................................................................................................................. 7
AC 2.1 Explaining the process by systems of economic e attempt to allocate all
the resources effectively........................................................................................ 7
AC 2.2 Assessing the monetary and fiscal policy on Nestle and the activities of
this organistaion.................................................................................................... 8
AC 2.3 Evaluating competition policies’ impact as well as the other regulatory
mechanisms, which are relates with organisational activities ..............................9
AC3. Understanding the behaviour of Nestle in their market environment.........10
AC 3.1 Explaining the process through market structures determined the output
decisions as well as the pricing decisions of a particular business .....................10
AC 3.2 Illustrating the process through which organisational responses has
shaped due to market forces .............................................................................. 11
AC 3.3 Judging the process through which cultural as well as business
environments are shaping the organisational behaviour ....................................12
AC 4 Assessing global factors significance which is useful for shaping activities of
national business................................................................................................. 14
AC 4.1 Discussing the international trade significance in the business
organisation of the UK......................................................................................... 14
AC 4.2 Analysing the impact of global factors which works in Nestle .................15
AC 4.3 Evaluating effectiveness of “European Union” policy on several business
organisation of the UK......................................................................................... 16
Conclusion........................................................................................................... 16
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Introduction
In this assignment, the chosen organization for analysing the business environment is
Nestle. The world well-known healthier food making or nutrition-making organisation is
Nestle. This organisation is spread its business in all over the UK. Nestle UK and Ireland
currently employs about 8,000 employees, and cater whole world, hence making it an ideal
organization to be studied for business environment
TASK 1
1.1 Identifying the purpose of different types of organization
Organisations can be broadly classified into two broad categories namely public
sector and private sector. Public sector comprises of government bodies and private sector
comprises of private organisation. The role of public sector is to provide services, which are
beneficial for the society. On the other hand, the role of private sector lies on generating
productivity by maximizing profit. Public sector includes services like building roads,
infrastructure, providing military service in emergency etc. The private individuals or group
of people generally runs private organisations. Multinational companies belong to private
sector.
Public sector organisations:- These are referred all the governmental organisations.
These types of organisations tried to reduce the unemployment in a country and provide
appropriate welfare win the country. Charitable organisations are those organisations, which
are involves in different social activities. These organisations provide helps several
individuals who are facing lots of trouble for their disability. Public organisations are owned
and run by state governments aiming to provide essential public services.
Private sector organisations:- Nestle try to develop more profit after selling their
product in the competitive market, these types of organisations sale their products based on
customer demand and making huge amount of profits. Public organizations that perform
business relations with Nestle mainly include the healthcare, emergency services sectors of
the governments. Private organizations aim to make profit, achieve growth, increase their
market share and maximize their sales.
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Decision making related to production and distribution of goods and business
operations is done by private individuals. It aims to increase profit earning capacity at high
level. In this regard, different tools and techniques are applied for expansion of entity and
increasing its efficiency. Nestle is one the main example of private sector organization that
provides milk products, chocolates and other services to million customers of UK. Apart
from this, private sector organizations are of different kinds that can be understood as below:-
 Sole trader:- These are those private individuals who takes decision regarding
business operations. Including this, they keep records of business activities related to
profit and loss gained or production of goods. In accordance to this, sole traders are
essential to maintain different kinds of records that present business performance.
 Partnership:- It is an activity to sharing earned profit and loss among partners of the
enterprise. Under this system, partners prepare plans and different strategies to
carrying out entity. Therefore, partnership is an activity for sharing profit and loss as
per terms and conditions.
Nestle is a multinational company which operates worldwide. Thus, a huge network
of different products including milk products, chocolates and beverages enriches the brand
value of the company. In order to prove transparency, Nestle follows the guidelines of the
government of different countries and makes product according to their rules. It also interacts
with private companies for raw products of certain goods. It also aims to build sustainable
development in agricultural food products. Hence, the Nestle private limited company works
with both public sectors and private sectors collaboratively.
1.2 Describing the process through which an organisation is able to achieves its stackholders'
objectives
The company’s objective is to be the world’s largest and best brand in food and beverage
manufacturing sector while insuring that the brand name synchronizes with the highest
quality products. Nestle provides a proper or suitable nutrition information and provides
healthier food which helps to individuals for living a healthier life. To meet the needs of its
stakeholders, Nestle have to continuously evaluate and remap its objectives.
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