Business Environment Introduction
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Added on 2020-01-07
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BUSINESS ENVIRONMENT INTRODUCTION 1 TASK 1 1 1.1 Purposes of different types of organizations 1 1.2 The extent to which an organization meets the objectives of different shareholders. 2 1.3 Responsibilities of an organization and strategies employed to meet them 2 TASK 2 3 2.1 How economic systems attempt to allocate resources effectively 3 2.2 The impact of fiscal and monitory policy on business organizations and their activities 3 2.3 The impact of competition policies and other regulatory mechanism on the activities of Nestle 4 TASK 3 5 3.1
Business Environment Introduction
Added on 2020-01-07
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BUSINESS ENVIRONMENT
Table of ContentsINTRODUCTION......................................................................................................................1TASK 1......................................................................................................................................11.1 Purposes of different types of organizations....................................................................11.2 The extent to which an organization meets the objectives of different shareholders.......21.3 Responsibilities of an organization and strategies employed to meet them.....................2TASK 2......................................................................................................................................32.1 How economic systems attempt to allocate resources effectively...................................32.2 The impact of fiscal and monitory policy on business organizations and their activities32.3 The impact of competition policies and other regulatory mechanism on the activities ofNestle......................................................................................................................................4TASK 3......................................................................................................................................53.1 How market structure determine the pricing and output decisions of business...............53.2 The ways in which market forces shapes organizational responses.................................53.3 How the business and cultural environment shapes the response of Nestle.....................6TASK 4......................................................................................................................................64.1 Significance of international trade to Nestle UK.............................................................64.2 Global factors impact on Nestle UK................................................................................74.3 Impact of European Union policies on Nestle..................................................................7CONCLUSION..........................................................................................................................8REFERENCES...........................................................................................................................9
INTRODUCTION Business environment is considered as the internal and external aspects that impact onthe business operations. It is a central part to manage the business effectively. Here, the reportis illustrating several conditions of environment impacting on the business undertakings anddifferent purpose for which a company exists in the market. Besides this, the organisation isresponsible to meet stakeholder’s requirements and gain their positive consent in theundertakings. In this regards, the case of Nestle UK, is elaborated in the paper to comprehendhow the company deals with different stakeholders by employing adequate strategies. Thecontent is including discussion about the UK national environment that influence on firmsoperating in EU regions. Moreover, the reader will find the way in which EU policies impacton the Nestle and industry of food and health as a whole. TASK 11.1 Purposes of different types of organizationsThere are various kinds of business organizations the Nestle deals with. On the basis of theirstructure these business organizations can be divided into the following categories:Sole proprietor: As the name suggests, this type of business is owned by a single person. It isthe most common form of business in the UK. It may have more than one employee. Theprimary reason for their success is that they carter the needs of their customers personally.The basic purpose of sole proprietor business is that the owners have full rights over theprofits and earnings of the business (Avant, 2005).Partnership: it is that form of business which is owned by more than one person. Thepartnership is normally covered under the partnership deed which forms all rules andregulations for the purpose of carrying out partnership business. The basic purpose ofpartnership business is that it spreads out the risk between more than one partners.Company: Company is that form of a business which is owned by shareholders and run bydirectors. Every company has to register under the Companies House and is awarded aCertificate of Incorporation by the Companies House. There are basically two types ofcompanies, private company and public company. The basic purpose of a private company isto pool funds from shareholders and earn profits in return. Whereas, the basic purpose of thepublic company is to work for public welfare. They are not supposed to make profits innormal course of business (Besanko and et.al., 2009). 1
1.2 The extent to which an organization meets the objectives of different shareholders.Stakeholder refers to a person who affects or is affected by the organisation’s actions orcourse of actions. There are many stakeholders associated with an organization such asemployees, shareholders, customers, suppliers, government agencies, society, etc. Differentstakeholders have different expectations from the organization they are associated with. Forinstance, employees are concern about their salaries, wages and bonus. Their objective is toreceive their salaries and wages on time. Nestle usually pay the salaries to its employees ontime there by fulfilling their objectives. Shareholders are the investors who have investedtheir money as capital in the company. They expect the company to not only pay themdividend on time but also increase the value of their stock. Nestle not only pay a healthyamount of dividend but also its shares are quoted at high prices in the share market(CANTARELL, 2016). The objectives of shareholders are duly fulfilled by Nestle. The customers expect fromthe company to provide them good quality of products at a reasonable price. Nestle providesits customers quality products at reasonable prices thereby fulfilling the objectives of itscustomers. Nestle also procure raw material from its suppliers on a regular basis and at areasonable and sustainable price and hence satisfies the expectations of its suppliers. Thegovernment agencies expect the business to work according to the laws of the land and alsoto deposit taxes well on time without any evasion. Nestle deposit taxes on time and hencesatisfies the objectives of government agencies. The society in which the business operatesexpects the business to work for the betterment and of upliftment of the society in which it isworking. Nestle has very liberal CSR policies and works for the betterment of the society. Inthis way, the organization fulfils the Expectations of nearly all the stakeholders who arehaving interest in the business (CSR Profile of Nestle, 2017).1.3 Responsibilities of an organization and strategies employed to meet themNestle decided six strategic priorities, first is to make choices and for which theorganisation put resources behind the products, categories and ideas that support the companyin its journey of recognising Health, Nutrition and Wellness leadership and to deliversustainable financial performance. Second is to grasp available opportunities and in thisregards, the organisation see the opportunity in trends and change as well as translate them inconcrete opportunities of business. Third is value the customers beliefs or values and all thatNestle do to meet this responsibility is to create more value for the buyers by minimisingoverall wastage (Cavusgil and et.al., 2014). Fourth, the company effectively engage with2
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