FY021 Business Studies: An Analysis of Nestle's Marketing, HR, Finance

This report provides an in-depth analysis of Nestle's business strategies, focusing on marketing, human resources, and financial management. It explores Nestle's marketing mix, emphasizing promotion, and examines the roles of HR in managing and motivating employees through training, performance evaluation, and fostering a positive organizational culture. Motivational theories such as Maslow's hierarchy of needs and Herzberg's two-factor theory are discussed in relation to Nestle's HR practices. Furthermore, the report highlights the importance of financial management, detailing the roles of financial managers in capital management, cost control, and risk anticipation, ultimately aiming to enhance marketing actions and business success. Desklib provides access to similar solved assignments and past papers for students.

FY021 Introduction to
Business Studies

Contents
INTRODUCTION...........................................................................................................................3
TASK...............................................................................................................................................3
Task 1...........................................................................................................................................3
Task 2...........................................................................................................................................4
Task 3...........................................................................................................................................7
Task 4.........................................................................................................................................11
CONCLUSION..............................................................................................................................15
REFERENCES..............................................................................................................................16

INTRODUCTION
Business studies may be referred as academic subject that is taught to students in order to
provide extensive knowledge about business. It involves in-depth study about components of
business such as Finance, management, Human Resource and Marketing. The chosen
organisation for this project report is Nestle, a multinational food and drink processing company
headquartered in Switzerland. It will cover a poster of marketing mix and chosen element is
Promotion. Further, it will cover roles of HR in managing and motivating employees. At last, it
will cover importance of financial management, roles of financial manager and sources of
finance.
TASK
Task 1

Task 2

Task 3
INTRODUCTION
Human Resource may be refereed as those organisational individuals who pertain their
knowledge and skills so as to perform operational function of company effectively and
efficiently (Kellner., Cafferkey and Townsend, 2019). They are considered as a crucial part of

organisation and contributes in leading company towards attainment of objectives. It is important
to manage human resource effectively so that they can function adequately in an organisation. In
order to better understand roles and responsibilities of Human Resource manager, Nestle is taken
into consideration. This case study emphasizes on roles and responsibilities of Human Resource
Manager in motivating employees. In addition to that, it will cover how HR of company
contributes in making effective organisational culture.
MAIN BODY
Human Resource is considered as a vital part and perform various functions within an
organisation such as hiring and relieving formalities, recruitment and selection of employees,
payroll process and many more. It aligns workforce in such a manner that collectively aims to
achieve organisational goals. Various roles and responsibilities of HR are discussed below.
 Management of training and development sessions- It is important to keep workforce up
to date so that they can be effectively aware about their roles and responsibilities. It is
responsibility of HR manager to identify potential strengths and weakness of newly as
well as existing employees, so that training sessions can be provides so as to eliminate
weaknesses. By delivering effective training sessions, employees can polish their skills as
well as gain new skills which contributes in making business more effective. Along with
this, it has been analysed that skilled employee can work more effectively than a non-
skilled employee. Based on weaknesses of employees, formulation of training and
development programmes are undertaken by HR.
 Evaluation of employee’s performance- It is also one of the most important role of HR
in which HR tracks performance of employees and after onboarding process. It is
important to assess performance as it is directly linked to organisational goals. If the
performance of employees are not up to mark, then it becomes difficult for company to
attain organisational goals (Saks, 2022). In order to check efficiency and productivity of
employees, HR of Nestle keeps an eye on employee’s competencies and efficiency.
 Management of organisational culture- HR is responsible to manage organisational
culture and to make company more successful. By maintaining positive organisational
culture, managers can create sense of belongings to employees. HR of Nestle creates a
positive culture in company in which all employees work with peak efficiency and thus
leads to reduced employee turnover. Job satisfaction in company leads to fulfilment of

objectives in an effective and efficient manner. The organisational structure of company
is smooth in which it promotes open communication which can be found effective in
decision making process. Objectives of company are clearly stated and this makes it
easier to attain personal as well as organisational goals. It also facilitates in providing
growth opportunities by which competitive advantage can be taken. HR of Nestle
streamlines its workforce belongs to different demographics and culture and shapes into
organisational culture so as to make them comfortable in new environment.
 Resolves conflicts and taking of disciplinary actions- In some instances, due to
miscommunication and change in perceptions, conflict may arise and it may negatively
impact on company’s performance. It is imperative to resolve conflict of organisation and
to keep workforce on track of attainment of goals. It is duty of HR manager to listen to
employees query/issue and based on that analyse root cause so as to resolve conflict.
There are various legal aspects from which HR managers of company are linked with and
takes disciplinary action, if needed. This practice assists in smooth functioning of
organisation.
 Becomes change agents of company- HR manager is liable to influence and handle
employees to adapt change which enhances efficiency of organisation. Due to emerging
business trends, it is imperative to make employees ready to make change such as
technological advancements and dynamic market trends. HR manager of Nestle ensures
that employees are always ready to adapt change. It is important to tell employees that
changes would not downgrade their as well as company’s performance.
 Human Resource Planning- It is one of the crucial role of Human Resource manager in
which it frames plan of various activities or roles that are needed to be performed by
workforce. HR manager of Nestle frames strategies which links with organisational
objective and plans for future course of action. In addition to that, HR conduct job
analysis in order to identify job requirements. Then HR prepares job specification and job
description in order to invite potential candidate to fill vacant job position in company.
 Payroll and onboarding/Relieving formalities- HR is liable to perform all formalities
from onboarding till relieving of employees (Block, Hirt and Danielsen, 2018). Along
with this, all payroll administration process is undertaken by HR manager. In context to

HR of Nestle, he maintains all records of all employees regarding documentation and
maintaining of attendance so as to make payroll process smoother.
 Motivating employees- Motivating employees is one of the most important function of
HR manager and it is needed to identify from which factor does it can motivate
employees. In relation to Nestle, it provides various fringe benefits and financial rewards
or growth opportunities in order to motivate workforce. It helps in deriving peak potential
from employees and they can be inspired to perform well within organisation. It also
facilitates in enhancing employee’s productivity and efficiency which leads company
towards attainment of organisational goals.
Motivational Theories
In context to Nestle, HR opts Maslow’s need of hierarchy and Herzberg two factor
theory. Maslow’s theory is a pyramidal need of hierarchy in which highest level of
satisfaction is on top and least on bottom. This theory states that an individual seeks to
fulfil his basic needs which are clothes, shelter, food and water. He cannot ascend to next
level without achieving this level. In next level, an individual wants security from
uncertainties regarding job and financial security. After fulfilling this need, he seeks for
maintaining relation with its relatives, friends and family. After this, he demands for self-
esteem and recognition. At top, it is self-actualisation and finds reason for live. The other
theory is Herzberg two factor theory in which there are two factors that can affect
motivation and those are satisfiers and Dissatisfiers (Oehlhorn and et al.,2020). Satisfiers
involves opportunities and advancements, personal growth and recognition can increase
job satisfaction and in adequate salary, working condition and physical workspace can
create dissatisfaction.
CONCLUSION
From the above case study, it has been analysed that Human Resource play an important
role in managing organisation. In order to manage organisation, it is needed to have
effective HR department who can align workforce towards fulfilment of objectives. There
are various functions that Human resource undertaken in order to motivate employees
and to create foster environment such as conducting training and development sessions,
payroll process, hiring of candidates and so on. Along with this, it also helps in creating

positive culture with organisation in which all employees work with peak potential and
put their efforts in accomplishment of objectives.
Task 4
INTRODUCTION
Financial management encompasses with various activities that involves assessment and
analysation of investments for a specific business. In simple words, it can be depicted that
financial management involves planning, organising and controlling of financial
resources in an effective manner. The core aim of financial management is to manage its
financial resources in such a manner that it yields higher return. In order to better
understand financial management, Nestle is taken into consideration. This project report
will cover various roles of financial management within an organisation.
MAIN BODY
Management of funds is one of the important function of financial manager of company
and with management of funds company can attain higher efficiency in a short span of
time (Osipov, Ziyatdinova and Girfanova, 2018). In addition to that, it helps in
maximisation of profits and minimisation of loss. There are various financial principles
that company can use and enhance its efficiency in terms of liquidity and profitability. A
well-structured financial plan renders information regarding investment proposals and
guides company to where to invest fund and from where it has to draw back. It is
imperative for company to allocate financial resources so that optimal efficiency can be
attained. Financial management starts with recording of day to day financial transactions
which can be used to take effective decision after interpretation. In addition to that, there
are various activities involved in financial management such as preparation of Trading,
Profit and Loss and Balance sheet, cash flow statements, ledger accounts and
management of loans and advances. There are numerous advantages of financial
management as it allows company to take effective decision regarding investment
purpose and to make process easier. It facilitates in enhancing overall efficiency as well
as productivity of organisation. Planning of financial management prevents company
from over-debt and tax burden. Recording of all transactions makes auditing process
simpler and company can avoid penalties. The role of financial management for Nestle is
discussed below.

 Capital management- It plays crucial role in managing capital of company and allocates
in such a manner that its generates higher revenue (Karman., 2020). The financial
manager of company is liable to identify capital requirements that company needs.
Identification of capital structure as well as selecting best source to acquire funds for
Nestle is the core responsibility of finance managers.
 Controlling business cost- It is needed for company to frame effective strategies that
lowers down overall cost of company. It will help company in maximising profit and in
allocating in a best manner. More money indicates that company is operating efficiently
and this attracts potential investors towards company.
 Evaluate success of business- It is important to assess success of company so that
corrective actions can be taken in order to raise efficiency of company. With financial
management, company can evaluate success in terms of profitability and contributes in
achievement of success. It also helps company in inviting more investors and with this it
can expand its business operations. Financial managers of company compare actual
performance with pre-set standards so as to evaluate success of company.
 Better approach to finance- With financial management, company can allocate its capital
wisely and can achieve maximum efficiency. There are various sources by which funds
can be brought into organisation and this practice is undertaken by financial manager.
They frame strategies in which company can minimise its overall cost and maximise
profit. Generation of higher revenue is the core aim for every business.
 Enhance marketing action- Marketing is crucial for every business and it is imperative
to allocate funds on marketing by which it can attract larger customer base with minimum
cost. Financial managers of Nestle analyse best marketing tool which can bring efficiency
in low cost. There are various promotional programmes that financial mangers evaluate
and based on analysis suggest best alternative. They can also terminate campaign if it
does not bring traffic to company’s website and may alter existing strategies.
 Anticipation of risk- Risk are vital for company and it is needed to take prevention so as
to mitigate risk. As the business world is dynamic in nature and it is important to take
corrective actions so that risk of uncertainties can be prevented. Company can forecast its
outcomes and compares with previous data and with successful analysis, risk can be
mitigating. In addition to that, formulation of effective strategies can minimise risk of

future. Financial managers of Nestle analyse market trends and based on that frames
strategies so as to avoid risk.
 Utilisation of funds- It is important for company to utilise its funds effectively so that
competitive advantage can be taken. Allocation of financial resources is a vital
responsibility of financial managers and one wrong move can collapse company’s
profitability. They ensure that all available funds in company are wisely distributed or
allocated in profitable channels. It facilitates in optimum utilisation of resources and
company can achieve higher success from it.
 Focus on weak areas- With evaluation of financial statements, company can focus on
weak areas by spending more funds or y taking corrective action so as to enhance
operational function. Nestle can get to know that which product is bringing efficiency and
which is not. With this, management strategy can be framed so as to attain maximum
profit within an organisation. Company can focus on weak areas with financial
management and can frame strategies to overcome from weakness.
Role of financial manager
 Analysation of market trends and along with identification of expansion opportunities.
 Preparation of financial reports and financial statements of company.
 To take business decision which assist in making company more efficient.
 Supervising employees and to maintain and record all transactions of company.
Sources of Finance Loans and Advances -in order to boost or commence business, company can take loans
from either private or government bank. By taking fund from banks, company can operate
business at large scale or can overcome from shortage of working capital. There are two
types of loan that are secured and unsecured. In case of secured loan, personal security is
taken against loan and in case of non-payment of loan, the property can be forfeited. Bank overdraft -This type of finance is beneficial in meeting working capital requirement.
In this, bank provides credit limit facility to company based on their terms. The major
drawback of this alternative is that it charges high interest rate and should be opted wisely. Firm credit card – This facility is provided by bank to companies to meet their short
obligation such as electricity bills, rent and other expenses. In addition to that, it is important

to pay bill timely for smooth fund process. Bank can charge high interest rate and late fees
charge for non-payment of bill within time.
 Loans from relatives -Company can take loan from their family and relatives at very
minimum or on no interest rates. This option is highly preferred by companies as it do not
have major drawback and there is no risk of late fee.
CONCLUSION
From the above project report, it was concluded that financial management relates to
financial function of company and it assist in utilisation of funds in an effective manner
with various profitable channels. It is imperative for company to manage its funds wisely
or it will negatively impact on company’s performance as well as on profitability. on the
basis of available funds, marketing plans can be framed so as to capture customer’s
attention. It also helps in decision making by evaluation of financial position of Nestle.
Company can mitigate risk by forecasting future uncertainties with financial
management.

CONCLUSION
From the above project report, it was analysed that business studies helps in understanding of
various essentials such as Marketing, Finance and Human Resource. This subject helps in
building strong foundation for learner who want to pursue course in business management.
Motivation helps employees in enhancing employability skills and competitive advantage can be
taken. Finance management is important as it relates to management of financial resources in an
efficient manner and leads company towards attainment of goals.

REFERENCES
Books and Journals
Block, S.B., Hirt, G.A. and Danielsen, B.R., 2018. Foundations of financial management.
McGraw-Hill Education.
Karman, A., 2020. Understanding sustainable human resource management–organizational value
linkages: The strength of the SHRM system. Human Systems Management, 39(1), pp.51-68.
Kellner, A., Cafferkey, K. and Townsend, K., 2019. Ability, motivation and opportunity theory: a
formula for employee performance?. In Elgar introduction to theories of human resources and
employment relations. Edward Elgar Publishing.
Oehlhorn and et al., 2020. Human resource management and its impact on strategic business-IT
alignment: A literature review and avenues for future research. The Journal of Strategic
Information Systems, 29(4), p.101641.
Osipov, P., Ziyatdinova, J. and Girfanova, E., 2018, September. Factors and barriers in training
financial management professionals. In International Conference on Interactive Collaborative
Learning (pp. 167-175). Springer, Cham.
Saks, A.M., 2022. Caring human resources management and employee engagement. Human
Resource Management Review, 32(3), p.100835.
Shapiro, A.C. and Hanouna, P., 2019. Multinational financial management. John Wiley & Sons.