Business Operates in Society

Business Environment

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1. Different types and purposes of organisations (COVERED IN PPT)..................................3
P2 Size and scope of various organisations (COVERED IN PPT).............................................3
P3 Relationship between organisational functions and their link with objectives and structure 3
TASK 2............................................................................................................................................6
P4 Positive and negative impact of macro environment on business operations........................6
P5 Internal and external analysis to identify strengths and weaknesses.....................................8
P6 Relationship of strength and weaknesses with external factors...........................................12
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Business operates in society. There are many factors which affect the business. Business
environment is mainly divided in two factors i.e. macro and micro. There might be positive or
negative impacts of such factors. It is important that manager has to keep checking the external
factors which affect decision making of company. There are possibilities that leader has to
change plans and policies in smooth running of business (Agarwal, Grassl and Pahl, 2012).
There are chances that if organisation does not change its policies as per external sources then
they might get out of run from competitive world. This report is based on Nestle which is a food
and drink based organisation. This company was found in the year 1905 having headquarter in
Switzerland. This is the second largest Swiss company in terms of revenue.
This report discusses about various types of organisations with their size and scope such
as private, public and voluntary. There is the relationship in between various types of
organisations with regard to their functions as well as positive and negative impacts of macro
business environment. It also talks about internal and external analysis to know about
weaknesses and strength as well as their interrelation with external macro factors.
TASK 1
P1. Different types and purposes of organisations (COVERED IN PPT)
P2 Size and scope of various organisations (COVERED IN PPT)
P3 Relationship between organisational functions and their link with objectives and structure
Nestle has many products in food, drink, chocolates, etc. so there are many activities
which are required to produce and deliver goods to customer. It is important that manager has to
take care of external factors of business so that they can reduce its negative impact. Manager has
to plan activities of organisation in such way that there is no conflict in the activities
(Aterido,Hallward-Driemeier and Pagés, 2011). As there are many department which in Nestle
they have to create good communication channel which help company in smooth running of
business. It is important that employees must be learned how to deal with situation in order to
provide satisfaction to customer. Nestle has good image in market because they accept the
changes taking place and modify there policies accordingly. Tom level manager's worker does

not resist till here they have to deliver it to subordinates and tell them how is it beneficial for it.
There are various departments Nestle which help company in growing their business. Administration department- Administration department is important as they creates link
between various department such as purchase, store, accounts, sales, etc. This link is
beneficial in smooth running of business. There is proper communication about activities
so there is no conflict among activity. This will help in reduction of waste activities and
every department is aware of what has to be done at what time (Auzair, 2011).
Administration department of Nestle is working with production, sales, marketing, etc.
This is the department which select best resources from market so operations of all
department conducted smoothly. For instance tool through which marketing can be done
in society is selected by administration. This department insist on coordination in
commercial activities of Nestle. Marketing department- Marketing department is most important in telling public about
new product of Nestle. When company come with new product it is essential to market
that product in front of public. It is important that marketing manager has to keep
knowledge about feature of new product and services so they can satisfy query of
customer. This department is very important for enhancing profits and sales of
organisation. Marketing department is closely related with production and accounts unit.
There is difference in demand of consumers as per change in geographical region. Hence
marketing manager of Nestle analysis market and then convey to production department.
There is specific budget for marketing of product and services. Hence marketing
manager plan strategies as per set budget by accounts department. Production department- This department deals with production of chocolate, drinks, etc.
they have to interact with purchase, sales, stock department so that there will not be over
and under production of goods (Avramenko, 2012). As Nestle deals in confectionery
items so they have to take care of stock and production. Up-to date product will help
company to enhance profits. Production department is closely related with marketing
department. They complement each other because when production manger tell about
characteristic of chocolates, biscuits, etc. then this is marketing manager is able to
advertise product and this helps to increase sales and revenue.