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Business Environment Assignment | NESTLE Report

   

Added on  2020-01-28

13 Pages5395 Words180 Views
Business Environment1

Table of ContentsIntroduction: ............................................................................................................................LO 1: Understand the organisational purposes of businesses: ...............................................1.1 Identify the purposes of different types of organisation.................................................1.2 Describe the extent to which an organisation meets the objectives ofdifferent stakeholders...........................................................................................................1.3 Responsibilities of an organisation and strategies employed to meetthem.......................................................................................................................................LO 2: Understand the nature of the national environment in which businessoperate: ....................................................................................................................................2.1 Explain how economic systems attempt to allocate resourceseffectively..............................................................................................................................2.2Assess the impact of fiscal and monetary policy on businessorganisations and their activities:.........................................................................................2.3 Evaluate the impact of competition policy and other regulatorymechanisms on the activities of a selected organisation......................................................LO 3: Understand the behaviour of organisations in their marketenvironment: ............................................................................................................................3.1 Explain how market structures determine the pricing and outputdecisions of businesses..........................................................................................................3.2 Illustrate the way in which market forces shape organisationalresponses using a range of examples....................................................................................3.3 Judge how the business and cultural environments shape thebehaviour of a selected organisation....................................................................................LO 4: Be able to assess the significance of the global factors that shapenational business activities: ....................................................................................................4.1 Discuss the significance of international trade to UK businessorganisations.........................................................................................................................4.2 Analyse the impact of global factors on UK business organisations.............................4.3 Evaluate the impact of policies of the European Union on UKbusiness organisations........................................................................................................Conclusion: ............................................................................................................................References..............................................................................................................................2

Introduction: In this present world business is the most important part of country’seconomy. Business environment of the country and business performancesare interrelated. Positive business environment improve the businessperformance level, on the flip side negative environment decrease thesame. This particular report will discuss about the business environmentwith the context of Nestle (García-Zamora, et al., 2013). Organisationalpurpose of different types of business will be presented in this report.Significance of different economic policies and effect of market structureon business strategies like pricing also will be presented. Importance ofcultural environments on behaviour of Nestle and significance of globalfactors in shaping national business activities also will play vital role in thisreport to make the proper understanding about business environment ofNestle. LO 1: Understand the organisational purposes ofbusinesses: 1.1 Identify the purposes of different types of organisationBecker, et al. (2013), specified that there are different types ofbusiness organisations and they have distinct types of business process asper the nature of organisation. Depending on the nature of business theorganisational objectives and purpose of the business also defer amongthem. Business entities also can be categorised as per the purpose of thebusiness. Areas of operation, vision and mission, business value, andbusiness processes are also vary according to the characteristic of the firm.The aim of a company also represents the process of operation andpurpose of the business, by focusing on their actual interests. In the relation with objectives of establishments the present businessworld can be segregated into three categories such as private limitedcompany, profit based business, and non-profit business organisations.Types of business also can be represented as per the legal structure andbased on this factor the business can perform as voluntary, private, andpublic organisations. The voluntary organisations can be define as NGOs(Non-governmental organisation), as they never think about the profit ofbusiness (Oliveira & Welch, 2013). The private companies think about boththe profit of the business and the profit of stakeholders mostly thecustomers so that they belong to profit making organisations. Thegovernmental firms are concerned about the interest of population of thecountry and they can be both the profit seeking and non-profit seeking asper their nature of business. 3

There are various types of companies under private sectororganisations like sole proprietor, Partnership firms, cooperatives,Franchise business and charity organisations.Sole proprietors: The sole traders organisations are those whoseownership and controls are held by an individual and takes alldecisions on its own or through help of his advisor. The major goal isto maximise the profits for better survival. For instance Partnership firms: This is a business in which there are two or morethan two partners agree to run a business and share all profits andlosses equally. The major purpose of such organisations is to maketheir company successful and increase profits so that each partnercan have the position of profitability. Franchise: The franchise business are those where a company takesthe permission and right to sell the products and services of a othercompany. The major objective of franchise is to make brandsrecognisable and gain benefits of growth opportunities by havinglarger profits. Mc Donalds, Subway etc. give their franchise todevelop their brand in more places. The Nestle has its various business relationships in which are ofdifferent forms. It provides services through giving franchise to otherbusiness, partnering with companies like Coca cola to evolve and distributehealth drinks.Purpose of the company defers as per the nature of business. Theprofit seeking organisations have the purpose to provide required productsor services to the customers to fulfil their demands along with makingprofit from the same. Whereas the non-profit organisations have thepurpose to improve the level of comfort, security, and happiness within thesociety without thinking about profits from operations. Therefore thechosen organisation of this report belong to profit seeking organisations asNestle provides products to customers for fulfilling their need of nutritionalfoods and make profits through their business operations. 1.2 Describe the extent to which an organisation meets the objectivesof different stakeholdersThere are different types of business and stakeholders of businessalso can be segregated in different types. Cserháti & Szabó (2014),suggested that stakeholders can be recognised as primary stakeholders,secondary stakeholders, and key stakeholders. Stakeholders are theessential aspect of the business and businesses have direct and indirectinfluence on stakeholders. Business objectives, business policies of a firmalso effect stakeholders along with the business process. Bourne (2016), also observed that some of stakeholders such asdealers, investors, employees, owners, directors have direct effect onorganisational process. Different status of stakeholders also considers asvital within the concern. The internal policy of a firm can be changed tosolve the issues about employees but the customers will not be considered4

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