Business and Business Environment Project

This project examines the business environment and its impact on organizational success, using Nestle as a case study. It analyzes different types of organizations, their legal structures, and the interrelationships between various organizational functions. The project also explores the influence of macro-environmental factors through PESTLE analysis and utilizes SWOT analysis to identify strengths, weaknesses, opportunities, and threats for Nestle.

Business And Business
Environment

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Types and Purpose of private, public and voluntary organisation and their legal structure. .1
P2 Size and scope of different organisations..............................................................................4
M1 Analyse how structure, size and scope of different organisation link with business
objectives.....................................................................................................................................6
TASK 2 ...........................................................................................................................................6
P3 Relationship between different organisational functions......................................................6
M2 Advantages and disadvantages of interrelationships between organisational functions .....7
D1 Critical analysis of complexities and interrelationships of different types of business........8
TASK 3............................................................................................................................................8
P4 Positive and negative impact of macro environmental factors............................................8
M3 PESTLE model to support a detailed analysis of the macro environment ........................10
D2 Critically evaluate the impacts of environmental factors have upon business objectives and
decision-making........................................................................................................................10
TASK 4..........................................................................................................................................11
P5 Conduct internal and external analysis................................................................................11
P6 How strength and weaknesses are interrelated with external factors..................................11
M4 SWOT analysis and justify how they influence decision-making for the chosen
organisation...............................................................................................................................12
CONCLUSION..............................................................................................................................12
REFRENCES.................................................................................................................................14

INTRODUCTION
Business environment consist with several factors that has direct impact on the operations
and functions of the firm. In this includes internal and external factors that can affects on the
business functions or operations in various ways. These forces may or may not be control by the
management of company. In the external environment, it included several forces such as
political, economical, social, technological, environmental and legal that cannot be controlled so
organisation focus on making better decision and formulate strategies for achieving competitive
advantages in an effective manner. There are some internal factors including technological
capacities, employees moral, and sustainability that have major impacts on the organisational
operations. This report is based on Nestle firm which deals in food and drinks in the international
market. The assignment will define about several types of businesses with purposes such as
public, private and voluntary. These firms have different size, and scope that interrelate with
organisational department that linked with company's objectives and gaols. This will also define
the positive and negative impacts of macro environment that can affects on the business
performance and its productivity. This will also analyse SWOT to identify strengths and
weaknesses and their relations with external factors.
TASK 1
(Covered in PPT)
P1 Types and Purpose of private, public and voluntary organisation and their legal structure
Every business firm have different legal structure that based on nature of the
organisation. In this define several objectives and goals of particular firm that can be attained by
following legal structure and legislation as well. These can be classified according nature or
categories such as public, private and voluntary etc. they always consider some legal terms and
regulations of government so that organisation can be run in well manner.
There are defined some various type and purposes of organisations and their legal structure
which helps in understanding better. These are as following:
Private company:
In this included those firms that privately owned by an individual. These operates and
held under private ownership that known as private company. Governmental authorities do not
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interfere in any procedures such as making decision, formulating plans or strategies. They have
no rights or control over the business operations of private firms. There are defined several
limitations or restrictions that imposed upon such kinds of businesses such as they cannot
allowed to other individual or invite public to subscribe their shares and other properties as well.
Nestle is one of the world's famous and largest firm that deals in food and drinks in the
market place. It was established in the year of 1866 and its headquartered in Switzerland. The are
selling varieties of products such as baby food, dairy items, tea, coffee, medical, baby food and
many more.
Purpose of Nestle:
 To serve better quality of products or services to the targeted audiences for satisfying
desired needs or wants.
 To grab best opportunities and achieve particular targets or competitive advantages.
 To increase market shares and create better position among competitors in the market.
Legal Structure of private company Partnership: In this types of firm, two or more individuals who come up with various
resources such as land, capital, physical resources, tools or techniques and many others
for the purpose of operating business and run its functions in an effective manner. They
starts firm by considering legal agreements or make a contracts in which consists several
tasks or activities that must be performed by them and also share profits as well as
liabilities to achieve common goals and objectives. Sole proprietorship: In this defined those venture that starts by an single person as such
organisations are owned and controlled by an individual that known as sole trader. In
such kinds of businesses, individuals comes up limited resources to starts and operates
business functions or activities in an effective manner. They have proper rights and
control over the business operations and functions with unlimited liabilities as well. In
this, they do not have separate legal distinction for running a particular firm.
 Limited companies: These are defined separate legal entity that distinguished form
owners. Limited businesses have categorise by two types such as guarantee. Limited
liability can be seen in such kinds of businesses because owners have some limited
liabilities for their unpaid of amount shares as well as capital.
Public organisation:
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In this defined that public companies generally starts and operates by the government
authorities of particular nation. It included number of functions and activities that performed by
the government for the purpose of public welfare. It consider military, public transportation,
police services, free educations, public transit and healthcare etc. therefore, government take
responsibilities to control over the business operations and provide better facilities to the public
to their satisfaction as well. Their main purpose is to provide various benefits to the society
people while running organisation in well manner.
NHS is one of the best example for public companies because it provides healthcare
services and facilities to the social people for improving their health conditions in cheap costs.
On the other side, they have several experts and skilled staff members who provide better
medical facilities and treatments to the patients so that their diseases can be remove. They give
some specific services such as dental, optical and therapies as per the problems of people.
Purpose of NHS
 Provide best quality of healthcare services and treatments to the societal people.
 To give medical facilities and improve people health conditions.
 To contributes more for healthcare services and increase economy of UK country.
Legal structure of public company
 Central government: They manage and oversee overall departments of state as well as
central government as well.
 State government: They consider several functions or functions that performed by state
government and agencies activities.
 Local government: They also provide various functions or activities for the purpose of
managing public organisation.
Voluntary organisation
It defined several businesses that perform entire tasks or activities for supporting to
volunteers and any poor persons. Their main purpose is to develop the society and provide helps
to needy people rather than earning profits or generating revenues as well. There is requires to
take permissions from the government and receive approval from them so that they can run such
kinds of businesses in well manner.
Oxfam is providing several services or facilities to the needy person who requires to live
their lives and survive in any critical situations. Their main aim is to reduce poverty and provide
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proper support to societal people so that best possible results can be get. They give several
support to them in the critical circumstances such as natural disasters, reliefs from typhoon,
whirlwind and tsunami so that people can satisfy their basic needs due to these kinds of
situations or conditions. Apart from these, they also consider pro-migration, advocacy and policy
research for giving various kinds of facilities or services in an effective manner. It has
established in the year of 1942 for the purpose of helping such types of needy people or
volunteers as well.
Purpose of Oxfam:
 Their main aim is to reduce poverty and provide long lasting services to the social
people.
 To support in creating effective future and secure from any disasters.
 Provide public education in free and develop the country by achieving sustainability.
P2 Size and scope of different organisations
From the above organisations it can be analysed that there are different types of firms
defined which have various scope and sizes that distinguished their nature with each other.
Nestle, NHS and Oxfam deals in various products and services in the market that belongs to
different nature of businesses. Size defined as the location or area where business operates or
run. On the other side, scope is describe as the various kinds of products or services that
provided by the company. These can bes understood by following such as:
Nestle Size: Nestle is dealing in several types of foods and drinks at the global market. They
focus on serving their items at world wide for satisfying customers needs or wants and
also focus on improving their living standard in well manner. It was established in the
year of 1866 in Switzerland. It has diversified business for generating more profits or
revenues. There are around 447 factories at more then 194 countries that produce better
quality of goods or services in international market. There are around 339000 employees
working in this firm. Scope: In this included various kinds of products that produced by the Nestle such as
foods and drinks within an organisation. In this included some main products such as
baby food, medical food, coffee, Kit-Kat, Maggie and ice cream etc.
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 Vision: The visions of this firm is to produce better quality of products and services by
considering high and safe goods and also provide nutrition so that customers can feel
satisfied and fulfil their desired needs or wants in an effective manner.
 Mission: The mission statement of Nestle firm is defined that they want to become
world's largest firm in providing nutrition and quality of products to customers. Their
slogan is good food, good life.
NHS Size: In this defined that National Healthcare Services are providing several services and
facilities to the social people so that they can improve their health condition in well
manner. It was established in 1948 at UK and giving various treatments such as
therapies, medical, dental and optical treatment to them. It considered under top five
healthcare centre in the world. Scope: It included some diversification of several kinds of services and medical facilities
provided by the NHS. They focus on providing relief from various diseases such as
cancer, infections and flue etc. they also serve some important medical facilities such as
dental, optical and medical treatments. Vision: The main purpose is to provide healthy life and better treatments to the patients
so that they can improve their health condition and live better lives in more effective
manner.
 Mission: the mission of NHS is to create better environment and provide effective
services to the every individuals for free of costs.
Oxfam  Size: In this defined that Oxfam is giving several types of services and facilities to
the poor people who needs some help for surviving from any circumstances. They
have at least 20 charitable trusts who are operating such kinds of operations and
running business for the purpose of removing poverty in the world with effective
manner. It has established in the year of 1942. it serves number of services across the
world. They consider any critical circumstances such as natural disasters, whirlwind,
tsunami, earthquake, volcano and typhoon and many more that can be create hurdles
to the people in living their life with appropriate manner.
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 Scope: It provided several services or facilities by considering number of functions
or activities that performed by the Oxfam. In this included poverty, eradication,
disasters and policy research and pro-migration etc.
 Visions: Their main aim is provide better services or facilities to the people who
needs to live their lives in well manner so they are trying to making poverty free
country. This will support in living good or healthy life so that people can enjoy in
better manner.
 Mission: Provide effective goods or services to the needy person and also helps in
reducing poverty by giving several facilities so that they can live healthy life in well
manner.
M1 Analyse how structure, size and scope of different organisation link with business objectives
In this included several activities and functions that must be performed by the
organisation as per the requirements such as producing, designing, maintaining and managing
entire operations in well manner so that particular goals or objectives can be achieved with
limited time period (Reed and et. al., 2013). There must be required to perform these rules and
regulations while completing specific task or work. Therefore many of firms consider this and
allocate various available resources among activities for the purpose of getting maximum
outcomes and achieve predetermined gaols or objective.
TASK 2
P3 Relationship between different organisational functions
In a business organisation, it is require to analyse several elements that are helps to
provide appropriate and desirable success easily. Nestle is a largest organisation that provide
effective services in foods and drinks (Reinhardt and Stavins, 2010). For them it is required to
divide working activities in different divisions to reduce pressure from individuals. In this
process, manager of firm provide their own contribution to analysing employees skills and
working capacity to provide them appropriate responsibilities. It provides different opportunity
in business to make effective improvement in their internal working approaches to provide
quality products and higher satisfaction to customers. This procedure build team building
activities in an organisation to completion any task within appropriate time period. Through this
employees of organisation manage their work load and resolve their issues and problems by their
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mutual understandings. Main objective of this process is to getting higher competitive
advantages and achieve business goals easily. There is Relationship between different
organisational functions are given below -
Human resources department of an organisation performed various activities as
workforce planning, recruitment and selection, provide effective training and learning, enhance
performance and skills of employees. Main objectives of this division to getting effective
productivity and profitability. Through this they can achieve future goals and objectives
properly. In Nestle, human resource manager play a most important role by providing their
effective services and managing all functional approaches easily (Shigang, 2010).
Marketing division of organisation is work to introduce organisation's new product and
services in target market by different promotional tools as advertising, e-marketing and
newspaper advertising as well. All these activities helps to provide appropriate information to
customers. Marketing manager of Nestle is analyse customer's demand and their requirement to
providing quality services to them in effective manner. Main objective of them is to resolve
issues and problems of customers and spread appropriate information about new services to
maximise sales and profitability of firm.
Research and development division of firm is provide their appropriate contribution to
analysing market and customers requirement to provide them effective services easily. Through
this they can analyse strong rivalry of firm who provide similar services in market at different
cost. Through this firm can easily manage their cost and products quality to attract target
customers toward their products and services. These division is working as a major division that
provide appropriate information regarding market and customers desire and their requirement to
providing them effective and quality services easily. After this production employee of firm firm
manufacture quality products to provide higher satisfaction to customers and users (Karagiorgos,
Drogalas and Giovanis, 2011).
M2 Advantages and disadvantages of interrelationships between organisational functions
In a business organisation different working division are interrelated with several
business function. These activities helps to provide benefits in various terms. Through this, they
can easily achieve target goals and objectives in effective manner. Theses divisions can be
manufacturing, research and development, marketing, finance, human resources and information
technology. All the business approaches are classify on the bases of employees skills and their
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working ability. There are various advantages and disadvantages of interrelationships between
organisational functions are given below as -
Benefits -
 These activities helps to maximise productivity and profitability of firm.
Drawback -
 It create dependency on different working divisions.
D1 Critical analysis of complexities and interrelationships of different types of business
As per the words of Kolk, (2016) in a business, it is hard to classify work between
several divisions. These activities are hard to determine, so in this manager of organisation
analyse skills of their employees to provide equal responsibilities to them easily. Through this
they can easily reduce extra work load and maximise profitability in firm. For this, employees of
organisation requires to understand their role to accomplish them through effective manner.
Major complexity in this process is that its creates higher dependency on others. Some times it
harms organisation's productivity and profitability as well.
TASK 3
P4 Positive and negative impact of macro environmental factors
Nestle is worlds largest food and drink organisation that provide their effective services
in several countries. Main objective of this is to provide quality services to its user at several
locations. Through this they can easily getting higher profitability and growth as well. In in this
procedure they require to analyse impact of external factors that can be analyse through PESTEL
analysis as -
Political and Legal factors: These are governmental rules and policy that are regulate to build
effectiveness in an organisation. Nestle analyse several terms and policy while expanding their
business in another nation. This factor has different impact as -
 Positive impact: These activities provide effectiveness for economy development
and growth as well. Through this firm can implement legality in their business
approaches as manufacturing services and appropriate selling procedure (Nishitani
and et. al., 2012).
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 Negative impact: For Nestle, it is required to implement legality in their business
approaches to getting provide effective benefits to government of a country. These
activities can impact negatively if firm do not working through ethical terms.
Economical and Social factors: For a business organisation, it is required to analyse customer's
demand and market requirement to provide effective and quality services to them. Through this
they can easily getting higher competitive advantages and build appropriate customers relation to
getting long term benefits. Nestle always make desirable modifications and alteration in their
products and services on the bases of customers desire. This factors has different positive and
negative impact as -
 Positive impact: Through this organisation van easily maximise sales and profitability to
getting desirables outcomes and benefits as well. Nestle implement these process to
provide higher satisfaction to customers on the bases of their requirement and need as
well. For Nestle, it is required to provide their effective contribution in economy
development and growth.
 Negative impact: For a business organisation, it is hard to make effective changes easily
in their firm. These activities reduce productivity and maximise cost of several services.
These cost maximise final price of product that can impact negatively on customer's
purchasing power and aspects. Low level of earning of individuals impact negatively on
social and economic factors of a country (Osterwalder and Pigneur, 2010).
Technological factors: For a business organisation, it is required to adopt advance technology in
their business process to reduce wastages and maximise employees productivity easily. Through
this Nestle can easily attract target customers toward their products and services.
 Positive impact: Advance technology helps top maximise employees productivity and
reduce extra cost from further expenses and wastages. Through this firm can easily make
desirable alteration in their business services to provide higher benefits and satisfaction
to target customers. These implementation required effectiveness through skilled
candidates and experienced candidates.
 Negative impact: These procedure can impact negatively if firm do not have skilled and
experienced candidate who can use technology properly in their business activities and
approaches. For this firm needs to provide appropriate training and development process
to enhance skills of employees easily.
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Environmental factors: For a business organisation, it is required to produce effective and
quality services to create positiveness in environment. Government of each country regulate
different legislation to protect environment properly through proper contribution of each factor.
 Positive impact: By implementing these services, firm can easily get higher growth and
desirable profitability as well.
 Negative impact: For a firm, it is require to provide eco-friendly services other wise
government can make strict rules for them (Pikka, Iskaniusand Page, 2011).
M3 PESTLE model to support a detailed analysis of the macro environment
For a business organisation, it is require to analyse external environmental factors that
can affects on firm's decision making procedure and profitability as well. For this manger of firm
requires to analyse external environmental factors through PESTEL analysis. These factors are
the control but management of an organisation can easily reduce its negative impact by making
impactful strategy and planning as well. These are the beneficial approach of firm in which firm
get detailed analysis of macro environment and its factor. Through this they can easily get higher
business approaches and growths as well.
D2 Critically evaluate the impacts of environmental factors have upon business objectives and
decision-making
According to Pulver, (2012) Environmental factors has direct impact on business
objectives ans its decision making procedure as well. For this manager of an organisation
requires to make effective and impactful strategy to reduce negative effects. For his firm can
easily make higher profits and growth in target market. These activities accomplish targets and
goals in effective manner. For a firm it is required to protect their business activities through
several factors and elements. In this procedure a firm can easily getting higher benefits and
growths as well. External factor can be Political, economic, social,technological, environmental
and legal factors.
TASK 4
P5 Conduct internal and external analysis
For a business organisation, it is required to analyse strength and weaknesses to build
effectiveness easily. Through this they can easily get higher competitive advantages. It helps to
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maximise opportunities for firm to getting desirable growth and income. For this firm can use
SWOT analysis to getting appropriate information as -
Strengths Weaknesses
 Nestle provide quality services to their
customers on appropriate cost.
 Firm has large workforce which
provide their effective and quality
services to customers on the bases of
their requirement and need.
 Nestle is one of largest brand that
provide their effective services in
several countries.
 Firm do not have a impactful structure
that make difficulties to manage
operation activities of firm.
 Nestle faces various legal issues and
problems due to some unappropriated
activities, these activities reduce
market image of nestle (Avramenko,
2012).
Opportunities Threats
 Nestle requires to provide quality
services to their customers through
this they can easily grab several
opportunities from market.
 Nestle needs to expand their
business structure to garbing
several opportunities from
different countries easily.
 Firm faces strong competitions as
Cadbury and coconut bliss.
 Nestle maximise cost of their
services while implementing
advance technology in their
business procedure.
P6 How strength and weaknesses are interrelated with external factors
For an organisation it is required to analyse their internal strength and weaknesses that
are interrelated with external environmental factors. Nestle is multinational food and drink
organisation and for them it is required to analyse such aspects to getting higher competitive
advantages easily. There are several strength and weaknesses are interrelated with external
factors are given below -
Political and Legal factors: These type of activities can be beneficial for government to
getting desirable outcomes of their services by different process to provide development and
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growth in a economy. Each and every country has different political and ethical consideration
that require to implement effectively to getting higher business advantages (Bovee, Thill and
Raina, 2016).
Technological factors: Employees of an organisation require to implement innovative
ideas and creative thoughts in their services to capture customer's eyes easily toward their
business procedure. These activities can be beneficial for them to getting desirables outcomes
and maximise firms inner strength. These activities can be the strength of Nestle.
Environmental factors: Nestle is implement such activities in their business approaches
as they provide quality and eco-friendly services to target customers. Through this they
maximise organisational profitability and growth as well. These factors can impact negatively or
positively in both manner on Nestle.
M4 SWOT analysis and justify how they influence decision-making for the chosen organisation
For a business organisation, it is require to analyse their internal analysis through SWOT
model (Cavalcante, Kesting and Ulhøi, 2011). These kind of analysis process helps to examine
firm's strength, weaknesses, opportunities and threats to making effective and impactful strategy
to create effectiveness in firm. These are most beneficial approaches of an organisation that helps
to maximise higher benefits and growth as well. Internal factors of an organisation influence
decision-making approach and profitability for the firm. By analysing these factors, firm can
easily get higher profitability and growth as well.
CONCLUSION
As per the above report it has been summarised that business environment play a most
important role in an organisation that impact directly on decision making process of firm. These
factors are classify in two different aspects as internal and external element that has direct impact
on decision making process of firm. Nestle is a largest organisation that provide effective
services in foods and drinks. For them it is required to divide working activities in different
divisions to reduce pressure from individuals. Main objective of this is to provide quality
services to its user at several locations. Through this they can easily getting higher profitability
and growth as well.
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REFRENCES
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Shigang, Y., 2010. Competitive strategy and business environment: The case of small enterprises
in China. Asian Social Science. 6(11). p.64.
Karagiorgos, T., Drogalas, G. and Giovanis, N., 2011. Evaluation of the effectiveness of internal
audit in Greek Hotel Business.
Kolk, A., 2016. The social responsibility of international business: From ethics and the
environment to CSR and sustainable development. Journal of World Business. 51(1).
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development.International Journal of Innovation and Regional Development. 3(3-4).
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Business Environment. 2018. [Online]. Available
through:<https://www.slideshare.net/NikhilSoares/business-environment-
featuresmeaningimportanceobjectives-porters-model>
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