Business Organisations and Environments in a Global Context Assignment Solution

Business Organisations and
Environments in a Global
Context

Table of Contents
INTRODUCTION...........................................................................................................................1
Background of Nestle......................................................................................................................1
PESTLE Analysis............................................................................................................................2
FIVE FORCES ANALYSIS............................................................................................................4
Background of Netherlands ...........................................................................................................6
Graphs, Data and Tables ................................................................................................................7
Financial performance of Nestle Baby products.........................................................................7
Conclusion.....................................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
The results of business operations is the harvesting of value from asserts owned by
business. Asserts of business can be tangible or intangible. Operations is the managing of inner
work to make the work effectively as possible. In this report, Nestle company is chosen for
assessment. It is food processing industry. It was founded by Henri Nestle, Charles page and
George page in 1866 (Barak, 2016). Its revenue is about CHF89.791 billion in 2017. Its
operation is on worldwide. The products of Nestle are baby food, coffee, dairy products,
breakfast cereals, confectionery, bottles water, cream, pet foods and many others. Nestle is
going to expand its business in Netherlander. In this report, the report will analysis the PESTLE
analysis, Porter's five forces to track the external environment. SWOT analysis is also done in
this report to identify the internal strength and weakness of company. Furthermore, this
assignment will also include background of company.
Background of Nestle
Nestle was founded by Henri Nestle, Charles page and George page in 1866. It is the
biggest food company in the world. Its headquarters are located in Vevey, Vaud, Switzerland. It
was ranked 64 in 2017 on Fortune Global 500 and rank 33 in 2016 on Forbes. Nestle has 447
factories in the world and it has its current operations in 194 countries. About 339000 employees
are working in Nestle. In 1905, Nestle merge with Anglo-Swiss a condensed milk company. It
has wide range of products which are baby food, coffee, dairy products, breakfast cereals,
confectionery, bottles water, cream, pet foods and many others, it has overall 2000 brands in
over 191 countries. Its revenue in 2017 is CHF 89.791 billion. Nestle has present workforce is
about 339000 employees which are giving their services to make the products available. Paul
Bulcke is the chairman of and CEO is Ulf Mark Schneider. Nestle company. After first world
war company has tremendous growth following second world war. Nestle is listed on SIX Swiss
Exchange and is constituents of the Swiss Market Index. Nestle is facing competitions from
various companies like Unilever, Kraft Foods, Danone, Proctor & Gamble, Mars and Heinz,
ConAgra Foods, Hansen Natural Corporation, Monster Beverage Corporation, PespsiCo Inc,
Snder's- Lance, Coca- Cola Company, Kellogg Company and many other food and beverages
company. These all are the companies which are giving tough competitions to Nestle across the
world. Nestle is one of the most respected company in the world. The brand structure of is the
biggest weakness of nestle as because it creates conflicts in management of large number of
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brands. Nestle is world largest company in the world but still they face controversies over the
year like Nestle baby formula boycott. Price fixing of chocolate suppliers of child labour. This is
also become the weakness when any of the product of Nestle is band in countries. It affects the
name of brand like Maggi in India. This is the first strength of Nestle that it is recognized and
recall all over the brand. According to Fortune 500, it is the world largest food and beverage
company in the world. The most creative feature of Nestle is its individual branding of different
food brands which assist them in developing awareness about the various brands of food and
beverages which helps the m in creating awareness about different brands of food. For example,
if the brand of chocolate is affect it will do not affect the sale of coffee. More than 8000 brands
of nestle use its name which ranges from food and beverages to coffee and mineral water.
Cereals of breakfast, sauces and soups etc. (Clegg, Kornberger and Pitsis, 2015). Nestle has
opportunities to enter into the new market by expanding more. They can elaborate its chain of
supply, penetrating more and rural markets by its robust. Nestle can also increase its income by
stable political condition, developed rate of literary and control rates of inflation in Netherland.
Nestle is facing high level of competition in the market. They are giving tough competitions in
local as well as global market. Increasing price of commodities will affect further increase in the
price. The sales of company are decreases by increasing price as well as it also reduces the brand
switching (Kirton and Trebilcock, 2017).
PESTLE Analysis
PESTLE is referred to marketing principles of the industries. This analysis used as a tool
by the companies to track the external environment. It gives a view of the total macro
environment for the organization. Pestle is a situational analysis tool for the companies. Pestle
analysis helps in to understand the factors which are affecting the organization or business. It is
also used in to analyse the whole business and industry (Murray, Skene and Haynes, 2017).
PESTLE used in to determining the various risks and situation in the industry or business
organization. Nestle used pestle as a long term tool for their business which helps in the
execution of their company. It is a structure for the marketplace and companies which helps in
monitoring the business. It analysis the performance of the business and verifying the
implications. PESTLE stands for -
P – POLITICAL
E- ECONOMIC
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