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External environment Assignment PDF

Added on - 23 Jan 2022

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External environment
“External environments are the forces and events outside a company that have the potential to
influence or affect an environment” Williams, C. & McWilliams, A. 2013. MGMT 2nd Asia-Pacific Edition.
In the other words, ‘external environment’ is anything that affects the company which happens outside
said company.
External environment is separated into two environments which are General and Specific. General and
Specific environments spread to 4 and 5 elements respectively.
The General environment represents the forces that exist outside of the company that have the
potential to indirectly affect it in some way. During a manager’s analysis of the general environment,
four specific areas will be assessed which are economy, technology trends, sociocultural trends, and
political/legal trends.
Firstly, there is economic.Economic is the totality of economic factors, such as employment, income,
inflation, interest rates, productivity, and wealth, that influence the buying behavior of consumers and
institutions. What Nestle company define sustainable development as the process of increasing the
world’s access to higher quality food, while contributing to long term social and economic development,
and preserving the environment for future generations.
Secondly, there is technology.
External factors in technology that impact business operations. Changes in technology affect how a
company will do business. A business may have to dramatically change their operating strategy as a
result of changes in the technological environment. Nestle is one of the largest food and beverage
companies in the world. Nestle have many food products such as Baby foods, bottled water, cereals,
chocolate, coffee, chilled and frozen food, dairy, drinks and ice cream.Nestle from packaging and
equipment, to food processing technologies and manufacturing new beverage systems such as
Nespresso,Nescafé Dolce Gusto, Special. T and BabyNes. They have also developed a large number of
different technologies. For example; Fermentation and probiotics, Extrusion, Healthier fats, Foam
booster technology, Malt extraction, and Portion dispensing systems.
Thirdly, there is socio-cultural.
Socio-cultural environment is a set of beliefs, customs, practices and behavior that exists within a
population. International companies often include an examination of the socio-cultural environment
prior to entering their target markets.
Case against Nestle
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