Report on Business Environment of Organization

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Added on 2019-12-04

Report on Business Environment of Organization

Added on 2019-12-04

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BUSINESS ENVIRONMENT

TABLE OF CONTENTSBUSINESS ENVIRONMENT........................................................................................................1Introduction......................................................................................................................................3LO1: Understand the organizational purposes of businesses..........................................................31.1) Identify the purposes of different types of organizations.....................................................31.2) The extent to which Nestle meets the objectives of different stakeholders..........................31.3) Responsibilities of Nestle and strategies employed to meet them .......................................4LO2: understand the nature of national environment in which business operates..........................52.1) How economic system attempt to allocate resources effectively.........................................52.2) Impact of fiscal and monetary policy on business organization and their activities............62.3) Impact of competition policy and other regulatory mechanism on the activity of Nestle....6LO3: Understand the behavior of organizations in their market environment ...............................73.1) How market structure determine the pricing and output decision of Nestle........................73.2) The way in which market forces shape organizational responses........................................83.3) How the business and cultural environment shape the behavior of Nestle..........................9LO 4: Be able to assess the significance of the global factors that shape national businessactivities ..........................................................................................................................................94.1) Significance of international trade to UK business organizations........................................94.2) Impact of global factors on UK business organizations.....................................................104.3) Impact of policies of the European Union on UK business organizations.........................11Conclusion ....................................................................................................................................11References......................................................................................................................................12

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INTRODUCTIONBusiness environment refers to the internal and external factor which affects the businessfunctions of the company (Breinlich and Criscuolo, 2011). Both internal and external factors ofthe environment can influence each other. In this case, the entire report is based on Nestlé S.A,which is world's leading food company in terms of revenue and has annual sales over CHF 1billion (About us. 2016). The company is headquartered in Venvy, Vaud, Switzerland. Thecompany was formed by Merger of Anglo-Swiss Milk Company, established in 1866. The reportexplains the purposes of different types of organizations and their purposes. Apart from this,roles and responsibilities of an organization and its describes its strategies to meet theirobjectives. Other than this, effect of fiscal and monetary policies are also elaborated. Effect ofall the internal and external factors are elaborated which assess their impact on revenue of thecompany. LO1: UNDERSTAND THE ORGANIZATIONAL PURPOSES OFBUSINESSES1.1) Identify the purposes of different types of organizationsKraftHeinz is one of the organization which has business relationship with Nestle. Theirmajor objective is to give sustainable health to the customers and feed America with healthyfood services. Apart from this, they also have an objective of getting profitable sales growth,best-in-margin and ensure a superior return of capital (Davig and Leeper, 2011). Other than this,their mission is to make big innovations in the business and also they have a mission to expandtheir business internationally. They are also working on maintaining dividend policy. They havea great market share with an annual revenue of 18.218 billion. In addition to this, they served themajor area of America through which they are able to get more customer satisfaction from thepeople. 1.2) The extent to which Nestle meets the objectives of different stakeholdersStakeholders are basically the people who majorly invests their money in the companyfor the achieving the organizational goals and getting more revenue than their investment. Thispeople have more interest in the growth and profits of the company, so that they can get moreannual dividend.

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Shareholders: Shareholders are the person who have invested their money in the Nestle.Through shareholders Nestle will b able to achieve its objectives. They are willing to getmore revenue than their investment (Diefenbach and Sillince, 2011). Customers: Customers are the people who create demand in the market through whichNestle will be able to met its organizational goals. Their main aim is to get the rightproducts from the company in the market. They need more safety and guarantee of foodproducts (Eden and Ackermann, 2013). Suppliers: Suppliers are the people who makes availability of raw material to Nestle.They focus on the thing that what is the Major demand of the firm from them. It showsthat whether Nestle is demanding for raw material or semi-finished products. They areinterested in what the firm regularly order from them, whether they are making properpayment to them (Ferraro and Brody, 2015.).Financial institutions: Financial institutions has the major role in providing money toNestle. They will examine that whether the company will be able to make timely return tothem or not. Government: Governmental authorities are those which are interested in collecting moretaxes from Nestle. Apart from this, it will also expects the employment of firm. They willalso views that firm's actions are directing according to the legal compliance (Jordan,2012).1.3) Responsibilities of Nestle and strategies employed to meet themThe basic responsibility of Nestle is to provide good food to their customers. Corporatesocial responsibility means the responsibility of the company towards the society and itsconsumers. In consultation with all the stakeholders, Nestle decided to make focus on itsactivities on the following criteria through which they can give maximum profit to thecustomers. Nutrition: Nestle has the aim to provide better nutrition to their customer through whichthey can get healthy products and become more healthier. They have done major focus onschool children so that they can better nutrition in their diet (Koos, 2011). Water and Sanitation: As, major of the countries are facing the problem of water stress.Apart from this, safe drinking water is also an major issue in now-a -days. For removing

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