Nestle Case Study Analysis
Added on 2020-02-05
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SUBJECT NAME: BUSINESS ENVIRONMENTNAME: BUSINESS ENVIRONMENT1
Table of ContentsLO1 Organisational purposes....................................................................................3AC 1.1 Identification.................................................................................................3AC 1.2 Description....................................................................................................3AC 1.3 Explanation...................................................................................................4LO2 nature of national environment.........................................................................5AC 2.1 Explanation of economic purposes...............................................................5AC 2.2 Assessment of impact fiscal and monetary policy........................................6AC 2.3 Evaluating the impact of competition policy................................................7LO3 Behaviour of organisations in market environments........................................7AC 3.1 Explanation of market structures..................................................................7AC 3.2 Illustration of market forces..........................................................................8AC 3.3 Judgement of business and cultural environments........................................9LO4 Assessment of significance of Global factors...................................................9AC 4.1 Significance of International trade................................................................9AC 4.2 Impact of global factors..............................................................................10AC 4.3 Impact of EU policies.................................................................................11References...............................................................................................................122
LO1 Organisational purposes AC 1.1 IdentificationNestle is an Irish company, which has globalised the food industry. It is a globalcompany and facing challenges arising from child obesity as well as deforestation; they havecatered to join other partnerships to improve their business strategies that include providing high-quality food at sustainable cost. They have targeted many NGOs, Government andOrganisations, Industry and multi-layered agencies to cite different options in the food industry.Besides, the company has upheld that it would take care to reduce environmental effects as well.The management has cited that they have addressed environmental, social and economicchallenges through diverse stakeholders. International Federations of Red Cross and RedCrescent Societies have come forward to help them overcome the socio-economic challenges.This organisation has furthermore come to assist the Nestle Company to deal with localcollaborations. They have also come forward to respond in cases of natural disasters. In this way,the International organisation has fostered a relationship to fight back the environmental issues.Gourio (2012, p.2735) has pointed out that the world is facing issues regarding constrainedresources and natural disasters. Thus, Nestle has aimed in achieving the target set to fight thesefactors. The company has highlighted the global food waste. The UN has addressed this issueand the company as well its partner IFRC have highlighted them to the African Government.Furthermore, the company has also targeted the human rights policies to contest the issuesrelated to food worldwide (Nestle.com, 2016).Nestle has also entered in catering the Chinese Food Company called Yinlu. Thiscompany is well known across the Asian country. Nestle has grabbed the attention of China bybuying its products from the local farmers thereby insisting them to enhance the quantity, qualityas well as efficiency of the food. The Irish food company has efficiently encouraged andsupported the local farmers thus contesting harmful food for foods with the highest quality(Nestle.com, 2016).In addition to this, it can be said that public and private sector organisations havedifferent purposes of operations. By having an assistance of such values the issues can beovercome in desired manner. It has been noticed that private sector businesses are focused3
towards activities which provide better opportunities in regard to gain profit margin ratio. On theother side, the public sector organisation focuses on development of products and services forbetter social outcome. However, they also consider profit as critical part because the funding ofbusiness is dependent over it. It has been witnessed that each type of enterprise has somecommon objectives, vision and mission which they want to accomplish. The main objective ofpublic sector organizations is to perform national security related works and providingemployment opportunities to people of country. Partnership is done between two or more partiesfor the purpose of enjoy limited liability and share skills and the workload. Companies can beconsidered as a legal entity and these are typically smaller than public limited companies.AC 1.2 DescriptionThe Irish Food company has always introduced new strategies to gain the support of thestakeholders that include the employees, shareholders, environmental groups, agencies,institutions and customers. The Chairman of Nestle, Mr Peter Brabeck-Letmathe, has introducedthe shareholders of the company and addressed that the company has achieved its target in theyear 2015. The report revealed that as asked by the shareholders, Nestle would continue inproviding organic food. They have satisfied their shareholders by increasing the growth of theorganic food by 5-6% (Nestle.com, 2016). The company has identified the requirements oftraining of the employees to deliver the quality product. However, the company has introducedthe Employee Relationship Policy to identify and thereafter build a relationship based on trust,value , respect and culture. The company allows the employees to refer Human rights as well aslabour practices. Nestle has undertaken the strategy of long-term commitment with its employees(Nestle.com, 2016). The company has claimed to procure a healthy relationship with thecustomers as well. They have introduced operation pillars to gain the trust of the customerssimultaneously building on the brand value and the quality food. Their “Health and Wellnessstrategy” and “Nestle Healthy kids programme” has grabbed the attention of the customers. Thecompany has taken measures to provide the right nutrition by reducing the salts and well as transfat to deliver the high-quality product to the customers as they demand (Nestle.com, 2016). Kashmanian et al. (2011, p.126) have highlighted that Nestle has forwarded various strategies tograb the attention of the environmental groups as well as the agencies by an approach thecompany has named as "life cycle assessment". The company has improved on their resource andprocured commitment for climate change and promotion of proactive and transparent climate4
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