Business Environment of Nestle

Business environment
of Nestle
Table of Contents
INTRODUCTION.......................................................................................................................................3

TASK 1.......................................................................................................................................................3
1.1............................................................................................................................................................3
1.2............................................................................................................................................................4
1.3............................................................................................................................................................6
TASK 2...................................................................................................................................................6
2.1............................................................................................................................................................6
2.2............................................................................................................................................................7
2.3............................................................................................................................................................8
TASK 3.......................................................................................................................................................8
3.1............................................................................................................................................................8
3.2............................................................................................................................................................8
3.3............................................................................................................................................................9
TASK 4.......................................................................................................................................................9
4.1............................................................................................................................................................9
4.2............................................................................................................................................................9
4.3..........................................................................................................................................................10
CONCLUSION.........................................................................................................................................11
REFERENCES..........................................................................................................................................12
INTRODUCTION
In the business environment there are various internal and external factors which can
highly influence the business activities and function. In order to survive in the competitive

environment, corporation requires analyzing business environment in an effective manner so as it
can develop effective strategies and policies to compete with it. These environmental
components influence business internal and external. Further it can be encompasses a set of
conditions, economic, social, political or institutional in which industry operations and activities
are conducted. When any organization is going to operate its business in the new market then
there is required to analyze its entire internal and external components so as it can survive and
compete in the new market. In this report , various internal and external components of business
environment with respect of Nestle has been discussed. Further its corporate social responsibility
toward the environment is also addressed in this report. Nestle is one of famous food processing
corporation in the world which have more than 456 factories in 86 countries. The major objective
of this report is to understand the business policy and practices that assist in reduce the impact of
business environment.
Figure 1Nestle products
TASK 1
1.1
Every business organization wants to gain effective market share and profitability.
Therefore, it develops such policies and strategies which assist in competitive environment.
Every organization have their own criteria to attain its predetermined objective, goal and
mission. Following are some organization which has their own purpose of business survival in
the market-
Hershey purpose- It is a public company which produces large variety of products such as
chocolate, dairy products and baby food. It has more than 14800 numbers of workforce which
continuously giving their effects in order to attain its predetermined goal (Botha, Kourie and
Snyman, 2014). Hershey chocolates corporation have main objective is to change customers

mindset that chocolates are unhealthy. It have marketing strategies is to enter in the new market
such as Canada, United states, Mexico, Brazils and other international locations. Hershey using
effective promotional material in order to increase its chocolate sales. It main objective is to
increase maximum market share further its vision is to become the first larges chocolate
company in the world.
Nestlé’s purpose- Nestle is the world largest food dairy food product company which have high
quality product mix. It has been large numbers of differentiation in the market because its
product have effective and quality feature. It positioned as health and nutrition corporation while
targeting the health conscious customers throughout the world. Nestle have large numbers of
products varieties of products such as juices, chocolate, noodles, breakfast cereals and baby food
along with excellent quality and attractive packaging (Zhang and Huang, 2012). The major
vision of corporation is to become the world largest dairy company and gain the maximum
market share. It focuses on meet the different desires of customers every day by marketing and
selling products of a consistency in high quality. In addition to this according to the survey it has
been ascertained that nestle have major objective to produce and market food in such manner so
as it can create value that can be sustained over the long term for customers, share holders,
employees and investors. Nestle corporative objective is to be the best manufacture brand, whilst
ensuring that the nestle’ name is synonymous with the product of high quality.
1.2
As per the above discussion its has a been ascertained that nestle is dealing with large
numbers of quality products and it have effective and strong brand image in the market. The
cited venture is public company with over 250000 shareholders and only 1.5 % of its sales are
generated in its home country and all but 12 of its factories are situated abroad. Cited venture
stakeholders have largely influenced by the company decisions. These are that bodies of the
corporation which directly of indirectly affects by the company policies, structure, strategies,
growth and decline (TEbert and et.al., 2014). Company needs to considered these body at the
time of taking the business related decisions. All stakeholders have various objectives towards
the company which are as follows-