Business Environment Table of contents Introduction

Business Environment

Table of contents
Introduction............................................................................................................................3
LO 1 Organizational purposes of business.............................................................................3
AC 1.1 Purposes of different organisation that Nestle have business relationships with......3
AC 1.2 Meeting the objectives of different stakeholders.......................................................4
AC 1.3 Responsibilities of Nestle in different issues.............................................................4
LO2 National environment nature of business operation......................................................5
AC 2.1 Resource allocation by Nestlé through various economic systems...........................5
AC 2.2 Impact of fiscal and monetary policy on Nestle business activities..........................6
AC 2.3 Impact of competition policy and other regulatory mechanisms on Nestle..............7
LO3 Organisational behaviour in the specific market environment......................................7
AC 3.1 Determination of pricing and output decisions of Nestle .........................................7
AC 3.2 Shaping of the market forces.....................................................................................8
AC 3.3 Influence of the business and cultural environments.................................................8
LO4 Significance of the global factors that shape national business activities......................9
AC 4.1 Significance of international trade.............................................................................9
AC 4.2 Analysis of the impact of global factors..................................................................10
AC 4.3 Evaluation of the impact of European Union EU policies and the other factors.....11
Conclusion and recommendation.........................................................................................11

Introduction
Environment is the basic factor that can put a major influence on the internal and
external business functions of a company. In order to maintain the success and improve
furthermore, a company has to operate active and professional business relationship with
their stakeholders and the subsidiary organizations on a regular basis. This paper will
critically analyze the issue based on the business operation of Nestlé specifically in UK.
LO 1 Organizational purposes of business
AC 1.1 Purposes of different organisation that Nestle have business relationships with
Organization is considered as the group of people works in order to accomplish
desired results. There are different types of organization such as public, private and non
governmental. As the largest food company of the world, Nestlé must conduct and maintain
its business function on an international basis. The subsidiary business organizations of this
company are- Nestlé UK and Ireland, Nestlé Nutrition, Nestlé Professional, Nestlé Purina
Petcare, Nestlé Waters, Cereal Partners UK, Lactalis Nestlé Chilled Dairy Company Ltd and
Nespresso (Nestlé UK & Ireland Sister Companies.2016) Following are the different
purposes of organizations such as-
 Public sector- Main purpose such businesses is to enhance the business in regard to
provide welfate of public and thus benefits them in several ways.
 Private sector- Such firms are working in regard to improve their sales and focused
upon raising profitability and sales in market.
 Voluntary organization- Such organizations works for the betterment of society and
main purpose is to service public and not to earn profits.
Nestle is a public company. Company's mission is “Good Food, Good Life”. While,
the vision of firm is to become leading, competitive nutrition, health and wellness company.
Objective of Nestle is to attain international voluntary standard and ensure continuous
improvement of business performance. Nestlé has several clear and definite purposes for
catering relationship with the subsidiary business organizations. Nestlé is the most favourite
food and nutrition brand in UK. The company has achieved the concrete success in the UK
market segment specifically in production of instant coffee and Kit Kat (Nestlé UK & Ireland
Sister Companies.2016). Nestlé is achieving huge success with their nutrition production. In
order to do that, Nestlé is maintaining their business relationship with Nestlé Nutrition. Not
only in the business of beverages, nutrition products or instant coffee, but the company is also

expanding their market into a huge varieties of home products with the help of their sister
organization Nestlé Professional.
Nestlé ha further flourished their market production by providing PetCare service
with Nestlé Purnia PetCare. They have expanded their business success into the water market
also. With the help of Nestlé Waters, the brand has gained the position of one of the best-
bottled water provider of the world. With the continuous success of Nestlé Professionals, the
brand has also conquered the market of creative beverage, which can provide a hard
competition to their contemporary companies. In this manner, Nestlé is maintaining their
business success by constantly maintaining a healthy and effective business relationship with
their subsidiary companies, which are helping the brand to earn a huge rate of profit from
different market segment of a singular area.
AC 1.2 Meeting the objectives of different stakeholders
To succeed in an internationally flourishing business, a company has to acknowledge
and meet the targets or objectives of their different stakeholders, which are the employees,
shareholders, and various related organizations. In case of Nestlé, the brand has to maintain
the environmental proper business relationship with the relatable environmental groups.
Nestlé has to satisfy the needs of their different stakeholders by reducing the risk
possibilities. As substantiated by Barbier (1999), to increase productivity, the company has to
prepare their employees to be productive enough.
The employees will need proper training and information, as well as a good physical
and mental working environment to reach the company’s productivity target. Main objective
of Nestle towards its employees is to provide them best workplace environment so that they
can enhance their market share. Therefore, Nestlé management team should disseminate
proper information, training and workshops to their employees about the targeted market
objectives. A company has to focus on the needs of their shareholders. As mentioned by
Branten and Purju (2015), a business can flourish properly if they can rightly serve the needs
of their shareholders for both short term and long-term profit.
On the other hand, Diaz-Roldan and Monteagudo-Cuerva (2013) opined, no business
can succeed if they fail to identify the demands of their consumers and serve accordingly.
Nestlé must critically segment their consumer markets in the demographic, geographic and
psychological aspects. Main objectives of customers is to satisfy their needs by consuming
company's products. Therefore, they have to stand up to the mark of their expectations.
Lastly, Nestlé management has to follow the needs of different environmental groups,