Business Environment Assignment : Nestle firm

Business and the Business
Environment

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Types and Purpose of private, public and voluntary organisation and their legal structure. .1
P2 Size and scope of different organisations..............................................................................4
TASK 2............................................................................................................................................6
P3 Interrelation between different organisational departments and their link to objectives.......6
TASK 3............................................................................................................................................8
P4 Impact of macro-environmental factors.................................................................................8
TASK 4..........................................................................................................................................10
P5 Internal analysis of organisation for identification of strength and weaknesses.................10
P6 Interrelation of macro-environmental factors with organisational strength and weaknesses
...................................................................................................................................................11
CONCLUSION..............................................................................................................................12
REFRENCES.................................................................................................................................13

INTRODUCTION
Business environment can be defined various internal and external factors that can affects
on the organisational functions, activities as well as operations in which includes supply and
demands, customers management, business rules or regulation, employees etc. Business
environment generally connote with several forces which are beyond the control of management.
There is requires to formulate better strategies and action plan for surviving in competitive
advantages (Reed, 2013). In this included competitors, suppliers, social, technological, legal,
customers and government. This report is based on Nestle firm which is Switzerland's food and
drink company and dealing in international market. This assignment will define various types
and purposes of different organisation such as public, private as well as voluntary. It will explain
size or scope of various organisation and their relationship with different functions that link to
business objectives and structure. This will be identify positive or negative impacts on the
business operations and conduct internal as well as external analysis for identification of
strengths and weaknesses. It will also defines that how these strengths or weaknesses are
interrelated with external macro factors.
TASK 1
(Covered in PPT)
P1 Types and Purpose of private, public and voluntary organisation and their legal structure
In this defined that there are number of organisation which have different objectives,
aims, and legal structure. These are depend on the nature of business as how it perform its task
and run its operations for achieving particular goals or objectives in an effective manner. There
must be required to follow several legal structure and focus on performing entire activities so
that company can run and attain predetermined objectives or targets. In this describe various
organisation with different categories such as public, private and voluntary. They have their
different types and purposes with legal structure such as:
Private company:
In this defined as the venture that generally controlled and operated by an individual in
private form. They also use the term of private limited company and in such kinds of
incorporated firms, individuals shares are not publicly traded and held by a small number of
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stakeholders. An individual come up with their resources, funds and several tools or techniques
for the purpose of operating business and achieve set goals.
Nestle is privately owned company that deals in food and beverages sectors in the world.
Their main aim is to become world's largest firm and generate higher revenues or profits in more
effective manner. It was established in the year of 1866 in Switzerland. There are number of
products or services which provided by the Nestle firm such as medical and baby foods products,
coffee, frozen items, dairy products, teas and snacks etc.
Purpose of Nestle
 To serve better quality and organic products to the target audience.
 To grab the various opportunities and become world's largest firm in nutritions
products.
 To attain Zero environmental aims or objectives in the market.
 To give best products or services to meet the vision as good food and good life.
Legal structure of private company: Partnership: There are two or more individual come up with several ideas, thoughts,
resources, capital and many tools for the purpose of starting and operating business ins
an efficient way. They have to perform some legal formalities and make agreements in
which describe about their limited liabilities, responsibilities as well as percentage of
sharing profits and loss within the firm. In this consider a partner who do not take any
part of making decisions and corrective actions is called silent partner. The purpose of
partnership is to generate more profits or revenues while running firm. Sole proprietorship: In this included those business firm that starts, operated and run by
an individual or a single person. They bring some effective business ideas and resources
for starting a new venture. Sole trader owned and controlled of the business firm for
attaining set targets or objectives in an effective manner. They also have unlimited
liabilities and no any separate legal distinction as well.
 Limited companies: There may be defined any separate legal entity from owner or other
individuals as in this included two types of limited such as shares and guarantees etc. in
which owners have some limited liabilities regarding capital or shares of the business
firm.
Public organisation:
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There are several business organisations that generally owned and controlled by the
government of the country for the purpose of social welfare and their benefits. In this included
military, police, transportation services, free school educations, healthcare centres, public transit,
infrastructure and road construction etc. that operated by the government as they play vital role
in performing such tasks or activities for society development and their benefits as well.
NHS (National Healthcare Services) is defined as the public healthcare centre that
situated in the UK. They are giving various medical facilities such as therapy, dental and optical.
Their main aim is to improve health conditions of the society people by providing better quality
of services or facilities at cheapest costs.
Purpose of NHS
 Treat every individual with an appropriate manner for improving their health conditions.
 To provide better quality of treatments and healthcare services to the patients in cheap
costs. To provide necessary informations regarding health matters in national and international
level.
Legal structure of public company Central government: they undertake various functions or activities regarding state and
central government department. State government: In this, they contribute in several activities or functions of agencies
and state government as well.
 Local government: in this consider management functions of public companies.
Voluntary organisation:
Voluntary firm may be concern with those organisations that provide number of facilities
and services to the needy people for their help. They focus on volunteers and provide several
facilities as well as support to them for surviving in any situations or conditions in an effective
manner. Their main aim is to work for social welfare and their development rather than
generating higher revenues or profits as well. There is require to follow some legal requirements
and rules or regulations so that specific outcomes can be get in an effective manner. Therefore,
they take permission from government authorities for running such organisations.
Oxfam is giving such kinds of facilities and focusing on various people who needed some
foods, cloths and other aspects to survive in any conditions. They focus on fulfilling people
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desired expectations and basic needs so that poverty can reduced in well manner. Therefore,
Oxfam is trying to overcoming these kinds of conditions and give maximum support to the poor
people by considering some critical circumstances such as typhoon, flood, tsunami, natural
disaster, whirlwind and many others so that people will get relief and live their life in better
ways. They also undertake some other factors such as advocacy, policy, research and pro-
migration etc. it introduced in 1942 for providing support and help people to meet their basic
requirements.
Purpose of Oxfam:
 The major purpose of organisation is to overcome the poverty of the country and help to
social people.
 To secure future of society and provide necessary support in any critical situations.
 To attain sustainability advantages and develop the country by removing poverty.
P2 Size and scope of different organisations
There are several kinds of businesses which have different types, purposes and legal
structure as per the nature of firm. In this defined various size or scope of the business firm that
describe about organisational functions or activities to achieve predetermined goals. It also
define some important activities that are performed by the every organisation such as producing,
designing, creating any goods or services to satisfy customers needs or wants. They operates and
manage the entire business functions as per the nature for the purpose of attaining best possible
result by performing all those in an effective ways. As per above information, it can found that
Nestle, NHS and Oxfam is dealing in different types of businesses so they have various size and
scope. Size consider the particular area and location where business established and scope
undertake variety of gods and services as well as product lines which are providing by different
firms in the marketplace. These are as following:
Nestle Size: This firm is providing various foods and drinks in the international market. They
focus on giving nutrition products and better quality of food items to the targeted
audiences by considering their health issues or problems. This firm was established in
1866 in the Switzerland. There are wide market covered by Nestle at global level so its
size is also broad and they are earning huge amount of profits or money by expanding
the business at different countries. It has at least 447 factories all over the world. There
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are around 339000 employees working in the Nestle firm who are contributing more to
achieve competitive advantages. Scope: It is serving variety of products such as foods and beverages in the international
market. The main items of Nestle is baby foods, coffee, medical foods, tea, water
bottle, Maggie, Kit-Kat, Dairy products and frozen foods for satisfying customers basic
needs and wants and also meet desired expectations in an appropriate manner. Vision: the main vision of Nestle is giving best healthy foods and drinks to the targeted
audiences to make them loyal towards firm. They provide nutrition foods and beverages
products by considering consumer health and safety and serve them best quality items.
 Mission: The mission of Nestle is to achieve competitive advantages by winning
customers trust and lead in the global market. Their slogan or punch line is good food,
good life so that number of customers can be attracted.
NHS  Size: In this defined that NHS is providing better healthcare services and medical
facilities to the social people which is free of cost. They are focusing on maximising
wealth and improve individuals health condition in an effective manner. This firm was
formed in 1948 in the England, UK. They are giving several facilities and healthcare
treatments including medical, dental, therapies, and optical services to the patients.
 Scope: There are various diversified businesses included in the NHS as they are
giving better effective treatments and improve health of patients for feel them good
from various infections, diseases, cancer and any flue by treating in better ways. There
should be required to consider social health and their well-beingness so that
predetermined goals can be accomplished.
 Vision: NHS is focusing on providing healthy life to the people and also giving better
treatments to patients so that they can feel better and live their lives with appropriate
way.
 Missions: The mission statement of NHS is to give effective environment and provide
medical services in free of cost to the people.
Oxfam Size: Oxfam is one the best firm who support to volunteers in living healthy or better life
as they provide various services to needy people. Their main purpose is to reduce poverty
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and give best life to the poor people so that they can survive in the critical circumstances.
There are around 20 charitable trust who are doing these kinds of work to help poor
people for living their lives in more effective manner. Oxfam was established in 1942
which started for the purpose of removing poverty and provide various necessary
facilities to social people. In this included several situations such as earthquake, flood,
tsunami, volcano and natural disaster that can impacts on common person. Scope: There are wide scope of Oxfam firm because it provide several services or
facilities to the poor people to overcome the poverty and satisfy social needs or wants.
They focus on eradication, policy research and any other situations. Vision: The main purpose of Oxfam is to serve better facilities or services to those people
who want to survive their lives in critical situations. Therefore, they are focusing on
giving healthy life and support to poor people through better facilities.
 Mission: They focus on providing better quality of life to needy people so that poverty
can be reduced and sustainability can be achieved in well manner.
TASK 2
P3 Interrelation between different organisational departments and their link to objectives
Every successful organisations are based on various functions and activities that required
to perform in better manner. In this included some important organisational functions which are
interrelate with several departments. This is an essential that provide better opportunities for
developing business and improve the strengths of internal of a particular firm (Reinhardt, 2010).
There are defined various department such as marketing, finance and accounting, human
resource, operational, IT and many others that are required to perform entire tasks or activities
for attaining set targets or goals. In this defined interrelation of different department of Nestle
with functions such as: Human resource department: It is one of the most important function which must be
performed in well manner by the organisation. HR department consider various activities
such as recruitment and selection, performance appraisal and remuneration systems
within the firm. Manager focus on appointing best suitable candidates who are able to
complete particular task or objectives and achieve best possible outcomes. They take
responsibility to create effective workforce by managing and maintaining relationship
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among employees so that they can feel better while performing any task or work. Nestle
provide training and learning sessions to the employees for enhancing their skills or
knowledge for achieving better targets. Marketing department: This department play an important role in increasing demands
and create better position among competitors (Stavins, 2010). It is directly linked with
manufacturing department as marketing manager of Nestle provide informations
regarding current market situations, trends, customers, competitors and demands towards
particular goods and services so that company can satisfy customers demands and meet
their requirements. Finance department: In the successful organisation, finance department have significant
role to give proper funding and financial services to each and every activities so that set
targets can be achieved. Manager ensure about proper utilisation of available funds and
allocate those among several business functions so that predetermined objectives can be
accomplished.
 Production department: In this consider the manufacture process for creating particular
goods or services and sell them into a market place so that company can meet with their
desired expectations. Nestle is producing number of items in foods and drinks in the
international market (Shigang, 2010). They conduct survey or research process for
identifying consumer needs or demands by collecting more data or information so that
company can make decision regrading productions.
Organisational structure
 Function based: In this, organisation generally describe its particular structure which
is based on business functions and must be performed in very effective manner. In
this included marketing, human resource and finance functions of the business firm.
 Geography based: Company consider this for dividing the functions and activities as
per the segmentation such as region, areas and hilly etc. where goods and services are
provided to reach at potentials customers.
 Product based: In such structure, company fix the culture and diversified products
that are providing by the firm. For example: Nestle is dealing in foods and drinks at
global market.
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 Consumer based: It is totally based on customers behaviours and depends on their
choices, preferences and demands.
TASK 3
P4 Impact of macro-environmental factors
There are number of factors available that based on environmental aspects and they have
major impacts on the business operations and its functions. Many of companies are dealing in the
international market and selling their goods and services across the country. Macro-
environmental factors have direct effects on organisational activities or functions that can affects
on their reputation in the marketplace (Karagiorgos and Drogalas, 2011). In this included several
aspects such as political, technological, environmental, economical, legal and social that are
beyond the control. Management try to formulate effective strategies and create action plan to
deal with such forces. These are as following:
Political factors: Nestle is providing their goods such as foods or drinks in many of
countries so it is genuine that to have political impacts on the organisational operations because
different countries have several rules or regulation, policies that can affects on the operating
business and harms its productivity in various ways. In this included taxation, import, export,
government stability, and entrance problem due to permission from government etc. Positive impacts: There can be positive impacts on the business if such regulations or
policies are in favour of firm (Giovanis, 2011). For example, Nestle is providing quality
of foods and beverages by considering consumer health.
 Negative impacts: It can be impact on the import and export process due to higher
taxations for Nestle firm.
Economical factor: In this defined various factors that related with economic changes of
particular country. Nestle is dealing in number of nations and providing goods in different
countries so currencies fluctuation can be affects on the profitability of the organisation. It
included growth rates, currency rates, GDP and inflations etc. Positive impacts: There is requires proper report and analysis regrading economic
conditions so that company can get more information or knowledge.
 Negative impacts: there can be negative impact due to lower level of incomes and
inflations rates of the country.
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Social factors: This force have major impacts on the business operations and functions
because social factors included culture, values, beliefs and norms that linked with people
choices, purchasing decisions, and preferences as well (Kolk, 2016). Positive impacts: There should be proper study regarding consumer behaviour as
company conduct study to analyse needs or wants of customers for maintaining
relationship among with people.
 Negative impacts: Lack of customers behaviours and their choices can be affects on the
business operations and its profits.
Technological factors: In this defined various tools or techniques that are launched in
modern world as many of firms are focus on adopting new technologies and methods for
operating business functions and run its entire functions in an effective manner. Positive impacts: This can be beneficial for organisation by adopting new methods
such as internet and e-commerce services for making communication process in easy or
effective manner.
 Negative impacts: It can increase company's costs through adaptation of new
technologies.
Legal factors: There various rules or regulations and legislation that have direct impacts
on the business firms. Every organisations have to follow such legislation and regulation for
running the firm (Nishitani, 2012). Nestle also consider this while expanding business and
dealing in other country. Positive impacts: Nestle is following the legal requirements such as health and safety
policy as well as providing better quality of products to the customers for winning trust.
 Negative impacts: Company have to follow legal rules or regulations otherwise they
may have to face any penalties regarding breaks of rules.
Environmental factors: This is another important aspect that must be followed by every
business firm. It is require to keep environment clean and green which Nestle is considering.
They are trying to making healthy and positive environment by giving support to nature. They
also contributes in CSR activities. Positive impacts: It is beneficial for keeping positive and healthy environment for
society.
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 Negative impacts: If organisations are not considering this factor then it can affects on
the brand image of the company.
TASK 4
P5 Internal analysis of organisation for identification of strength and weaknesses
In this defined the SWOT analysis of Nestle firm to identify the strengths and weaknesses
of the business firm (Osterwalder and Pigneur, 2010). It must be required to undertake such
study for formulating strategies and action plan as well. These are as following:
Strengths: World's reputed brand: Nestle is very famous organisation in the world who deals in
foods and services sector. It has strong image among competitors because they focus on
adopting best communication as well as promotional tools or techniques which helps in
creating more awareness among customers.
 Distribution network: Nestle is selling its goods and services in the international market
(Osterwalder and Pigneur, 2010). They focus on adopting best network and distribution
channel so that they can reach at potentials targets customers in an effective way.
Weaknesses: Brand structure: In this consider that there may be complex to create brand structure of
the Nestle firm due to broad segmentation.
 Legal and consumer issues: There are various types of issues or conflicts which can be
arise while running operations and affects on market share, brand image, and any other
legal requirements.
Opportunities: Market expansions: Nestle firm is trying to find several opportunities for expanding
business and achieve best outcomes so that wealth and profits can be maximised in an
effective manner.
 Improve quality of products or services: Nestle firm have opportunities for improving
the quality of particular goods and services so that number of customers can be attracted
and satisfied.
Threats:
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 Competition in the market: This is the major threats of every business firm as many of
competitors are coming with new ideas and innovative products or services so it can
affects on the business operations.
 Commodities prices: There is required to formulate effective strategies regarding setting
prices or costs because it can affects on the company's profitability and sells as well
(Pikka and Iskanius, 2011).
P6 Interrelation of macro-environmental factors with organisational strength and weaknesses
It is very important task for every business firm that to analyse the strengths and
weaknesses and also finds several factors that can affects on the business operations or function
in various ways. Nestle firm is undertaking such study for attaining competitive advantages and
increase sales volume in an appropriate manner. Ins this required PESTEL analysis for
identifying several factors and its strengths or weaknesses within an organisation such as:
Political factor: This is an important factor that beyond the control of management of the
organisation. They affects on the leaders decisions and influence the business operations (Page,
2011). In this included legal rules or regulation, code of conducts and policies which generally
followed by entire business entities. Strengths: Nestle firm has separate legal teams who are following necessary rules or
regulations in different nation. It involves tax payers, and building brand image by
undertaking regulations.
 Weaknesses: There may be difficulties and complexities to understand the various
political policies due to dealing in 194 countries.
Economical factors: Every country has different economies and also have issues
regarding cash flows, inflations, growth rates and import, export ratio as well as currencies
exchange rates that can affects on the profits of the firm. Strengths: Nestle is dealing in Asian continent so they have opportunity to increase
profits or productivity in the market.
 Weaknesses: It has major impacts due to higher international exchange rates that can
influence the profitability of the Nestle.
Social factors: In this defined various cultural factors that related with society of
particular country and also included people attitudes, beliefs, values, income level, and religion
which have major impacts on the company's goods or services (Pulver, 2012).
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 Strengths: It requires proper consumer study to understand appropriate culture and
customs of people to provide goods or services for satisfying desired expectations.
 Weaknesses: This can be difficult to analyse analyse customers cultures due to dealing at
global market. It can arise conflicts due to lack of knowledge.
Technological factors: It is related with various new or advanced technologies,
innovation, creations to make better good or items so many of organisations consider these to run
or operate business in well manner (Avramenko, 2012). Strengths: This can be beneficial for performing several tasks or work in more efficient
way.
 Weaknesses: There can be impacts on increasing costs or expenses of Nestle firm due to
adoption of advanced technologies.
CONCLUSION
From the above report, it has been concluded that business environment consist with
several internal and external factors which can affects on the business operations and functions.
It is necessary to understand strengths and weaknesses of the firm by conducting SWOT and
PESTEL analysis so that company can grab opportunities and attain competitive advantages in
an effective manner. This report describe about various types and purposes of organisation and
also defined sizes and scope as per the business nature. This assignment based on Nestle firm
which dealing in foods and drinks in international market.
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