How Macro Environment Affects Business: A Case Study of Nestle

BUSINESS
STRATEGY

Table of Contents
BUSINESS STRATEGY......................................................................................................................1
INTRODUCTION................................................................................................................................4
TASK 1 ................................................................................................................................................4
P1 Explain how macro environment affected the business.............................................................4
TASK 2.................................................................................................................................................5
P2 Analyse and examine internal factors which has impact on business........................................5
TASK 3.................................................................................................................................................7
P3 How competitive advantage is acquired by enterprise. Discuss with appropriate framework...7
TASK 4.................................................................................................................................................8
P4 Discuss concepts, theories and prepare strategic management plan in relevance with organni
sation ...............................................................................................................................................8
CONCLUSION....................................................................................................................................9
REFERENCES...................................................................................................................................10
BOOKS& JOURNAL:..................................................................................................................10

INTRODUCTION
Business strategies refers to group of decisions which helps firm to achieve goal and
objectives in appropriate manner. In organisation, to run the business activities, functions and
operations smoothly it important to implement business strategies. Market is expanding and
competition is rising at rapid level so, to survive in this competitive era these tactics as well as
strategies help in overcoming with threats and challenges. Effective decisions are taken when (BS)
is involved.. Nestle, a multinational corporation headquartered in UK is leading food and beverages
company providing quality of products and services to the customers. Due to its goodwill and
adoption of various business strategies in the market their business is expanding at higher level.
Organisation numerous competitors such as Costa Coffee, Harshey, Pepsico, Unilever, etc. Nestle
coffee beans and ingredients of flavour are the most essential resources of the company and which
also prevent them from imitable of the product from other retailers/ vendors. This report includes
PESTEL, VRIO, SWOT, porter five forces model in relevance with firm, models and theories of
strategic planning. In this present report, my main role was to collect the information regarding firm
and strategies that are being used by them in their activities.
TASK 1
P1 Explain how macro environment has impact on business
Corporate world is expanding their business activities at both national as well as
international level. Regions, culture, rules & regulations and many other factors are present which
has deep impact on firm growth. There are ample number of frameworks and strategies available
which help in identifying those factors. One of them is known as PESTEL Analysis. This
framework is used by entities to identify and examine the external factors which affect the
operations of business. With help of this analysis, firm are able to deal with difficult situation and
implement new strategies as well as tactics for their growth and development. It is time consuming
and requires proper knowledge &skills so that decisions are made in appropriate manner (Lyneis,
2020).
PESTEL Analysis
A framework used by organisation to track and monitor the market activities and external

factors which affect the performance level of business (Ukko, 2019).It depends upon the firm to
use this analysis as a whole or PEST+ 1 depending upon the need and requirement. It includes
several elements which has been discussed below-
Political Factor- Whenever the business start or expand, government involvement is
necessary to identify that organisation are doing the business in appropriate manner and within a
boundaries. Political factors are those which comprises of tax policies, government rules and
regulations, foreign trade policies etc. In context to NESTLE, any change in UK government will
direct have impact on bottlenecks of the company and all the functions as well as operations have to
face obstacles.
Economic factors- These are those factors which affect the growth, development and profit
and sales revenue of the business. Economic factors are those which include trade policies,
exchange rates, inflation& deflation rate etc. In relation with NESTLE, they provide goods and
services at affordable rates which helps them in tax and profitability. Company target upper, middle
and lower level people which increases their product value amongst the market (Bentley-Goode,
2019).
Socio-cultural Factors- Then arises the social factors which involve religion, culture,
behaviour, attitude and preferences. To successfully market & sell the product and socio-cultural
factors are important as they help in identifying the people need and requirement. This assists firm
to provide goods and services to right people so that all their demands are fulfilled in proper
manner. In context to NESTLE, they target the market in which products are consumed in effective
manner.
Technological Factors- Organisations are developing their activities at rapid level and this
is due to use of technology. These factors include use of advanced tools and equipment, artificial
intelligence etc. In relation with NESTLE, they have used technology for their product and business
expansion such coffee makers and machines, online ordering management system etc. Mo matter
what, it is time saving but also in many area use of manpower is reducing and giving rise to
unemployment (Leonidou, 2017).
Environmental Factors- These are those factors which affect both customers as well as
firm decision. It include pollution, waste disposal, temperature, resource availability etc. All these
factors are responsible for enhancing the productivity of business. NESTLE, with properly
identifying and by help of research team track and monitor these (EF) so that performance level of
firm does not get affected.
Legal Factors- Law and legislations play vital role in corporate world and which are to be