Business Environment Report: Nestle, CPS, Wellcome Trust Analysis

This report provides a comprehensive analysis of the business environment, focusing on three organizations: Nestle, the Crown Prosecution Service (CPS), and the Wellcome Trust. The report begins with an introduction to the business environment, differentiating between internal and external factors, and highlights the significance of these factors on business operations. The report then delves into the relationship between organizational functions, structure, and objectives, using Nestle as a case study to demonstrate the interconnectedness of departments such as production, human resources, finance, and marketing. Furthermore, the report explores the positive and negative impacts of the macro environment on business operations using PESTLE analysis, including political, economic, social, technological, legal, and environmental factors. The report also includes a SWOT analysis to assess the strengths, weaknesses, opportunities, and threats of the organizations. The report provides valuable insights into the complex dynamics of the business environment and its impact on organizational strategy and performance, offering students a valuable resource for understanding business operations.

BUSINESS
ENVIRONMENT

INTRODUCTION
Business environment includes of two main and foremost elements; internal and external
environment (Reed and et. al., 2013). Both are important part of the economic, in this business
meaning is human activities including production, extraction or sales or purchase of products and
services that are accomplished to earn maximum amount of money. On the other hand,
Environment depict as an element of surroundings. Thus, business environment is define as a set
of conditions institutional, legal, political, social or economic that is not controllable and impacts
the functions and activities of the company.
Further, internal environment consists of 5M's like man, material, machinery, money and
management. Apart from this, external environment includes of political, socio-cultural, demo-
graphical, legal, government and geo-physical factors. In this report, three organisations play a
vital role namely, private, public and voluntary sector. Nestle, Crown Prosecution services (CPS)
and Wellcome trust. This assignment divided into different parts which included purpose & type
and scope & size of three types of organisation. Relationship between organisational function
and business structure and objectives is also explained in this study. PESTLE and SWOT
analysis and their interconnection with each other is also determined in this project.
TASK 1
Covered In PPT
TASK 2
P3 Relation among different organisational functions and their link with objectives & structure
Nestle is a food and beverage organisation which serve different variety of food products
to the customers at reasonable price. In the organisation different departments are work with
each other and have common motive to achieve long term goals and profit in limited time period.
Beside this company need to Cognize the significance of interconnection between the activity of
various departments (Reinhardt and Stavins, 2010). It renders the chances about betterment of
their strength and satisfy basic needs and wants of clients. In the organisation, different
departments are functioning such as finance, human resource, operational and marketing.
Interrelation between various functions and activities of those departments are explained as
below:
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Production department: In the organisation, different departments are work with each
other. Beside this, production department play vital role to produce different variety in their food
and beverages (Shigang, 2010). All these are based on customers’ needs and wants as well as
market trend. Apart from this, business organisation innovate in their ice-cream, chocolates and
baby food products. Thus, it is benefited for the enterprise to maximise customer loyalty in the
organisation. Objective of production department is to produce quality and healthy products in
their food and beverages items.
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Illustration 1: Organisational Structure
Human resource department: There are different role which are play by the human
resource of the Nestle such as workforce planning, selection and recruitment, performance
appraisal, training and development and many other (Karagiorgos, Drogalas and Giovanis,
2011). All these are important and essential for the individual and organisation to improve their
performance and profitability in allotted time period. Main objective of this department is to
recruit knowledgeable and talented workforce either external or internal source. The functions of
this department is interrelated with entire other departments like, operational, finance, marketing
and so on. It support them via appointment of knowledgeable workforce at these division which
allows them is to apply modern technologies in order to carry out all functions in market with
effectiveness.
Finance and accounting department: In Nestle, main role and responsibility of
accounting manager is to arrange sufficient amount of the money. In this business use different
sources such as Bank loan, Hire purchase, equity share and many other. Thus it support the
business to improve their performance at marketplace. Main aim of finance department is to
arrange sufficient amount of the capital. The main function of such department is regarding the
planning about capitals needed to transfer the activities with best quality and acceptance of new
technologies. This will consider the preparation of budgets for various departments to render way
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is to make their plans as per assigned budgets differently it outcome in gain of costs which take
down their profitability.
Marketing and sales department: It is another and main department in the Nestle. In the
company main role of this department is to introduce their new products and services at
marketplace as well as to the customers also (Kolk, 2016). The main and useful function of
marketing department which is to carry on the task related to promotion of of the actual and
possible offerings of Nestle clients to spread consciousness. Also, execute essential function
regarding research and investigation of market to find out the existent demand, current trends,
strategies and challengers adopt by them. All such information or data has direct relation with
operational department of Nestle which has motive regarding conducting regular operations.
Organisational structure: It is important part of the business which is classified into different
parts which are explained as below:
Consumer based: This structure is mainly based on customer's needs and wants. In this
role of manager is to innovate their products and services which benefited to the company to
maximise their sales and profitability.
Product based: It is another structure of Nestle which play important role in classifying
and providing Nestle food and beverages to the customer's as per its needs.
Geography based: In this business is segmented on the basis of different regions of
nations where they provide their quality products and services to customers (Nishitani and et. al.,
2012). This structure support the company to determine customer demand according to various
regions.
Functional based: This structure is divided into different functions of organisation such
as operational, finance and accounting, sales and marketing and human resource. This structure
assure operational effectiveness and efficiency as the activity is going to be executed by
collective try of all worker. As an outputs, entire functions of organizational are determined in an
effective and efficient manner. In addition to that entire productivity and performance of each
and every functional manager enhances as whole are having appropriate and capable staff who
carries out entire specified task in an accurate manner.
Above all these departments are interrelated with the objectives and structure of
company. It is important and essential for the enterprise to maximise their sales and revenues in
an effective manner. In case of human resource department, they have various roles in recruiting
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best candidates and thus it highly effects on business structure in positive, it is also beneficial for
the company to accomplish their long term goals and objectives in limited time period. Under
financial department, entire growth and success of business is mainly depends on accurate
amount of the money. Therefore, it is needed for the organisation to set an effective structure in
an appropriate manner. In production department that has various roles and responsibility to
provide effective goods and services to the end consumer. Thus it support to accomplish or attain
their desired objective within predetermined period of time.
TASK 3
P4 Positive and negative influence of macro environment on business operations
Macro Environment is the part of the organisation which effects on business operations
and activities (Osterwalder and Pigneur, 2010). This factor includes PESTLE Analysis which has
negative and positive impact on profitability and effectiveness of Nestle. PESTLE Analysis of
the Nestle and its negative and positive effects are explained as below:
PESTLE Analysis Description Positive effects Negative effects
Political Nestle serves in
various nations. The
regulations and
legislation set by the
legal authority in
various regions.
Company should
emphasis on these
political changes like
excise duties of import
and export, taxation
and government
permission in order to
come in to the target
market and introduce
hygiene food and
If rules and regulations
of the government
effects on business
operations and
activities. Main
positive effect of
political factor on
company is to apply
health policies which
help to keep product
quality.
High rate of taxation,
export and import
policy negatively
effects on company in
adverse manner.
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beverages allowed by
the government.
Economical Economy of nations
differs everywhere. So
business entity has to
fix various economic
and effective policies
for targeted segments
(Osterwalder and
Pigneur, 2010). In this
product price is main
decision to interpret
while strategizing the
policy as per the
buying power and
inflation rate of the
segments.
Effective preparation
of report assist the
business to collect
knowledge about
income level and
inflation rates. Thus, it
positively effects on
business functions.
Individual low income
level has direct effect
on the demands of the
food and beverage
products.
Social The shared beliefs and
thoughts of the clients
impacts the business
functions and
operations. The life
style, culture, norms
and conditions force
company to provide
the specific food and
beverages to the
accurate segments.
Nestle has well know
the aspects that
This factor help Nestle
to analysis basic needs
and wants of
customers towards
Nestle products and
services (Pikka,
Iskanius and Page,
2011).
This factor also have
negative impact in
terms of lack of
education. This
adversely effects on
profitability and
productivity of
company.
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customers changing
behaviour has
immense essential.
Technological This factor provides
different opportunities
or chances for the
implementation of
innovative techniques
and tools of marketing
like e-commerce and
internet (Pulver,
2012). Therefore,
company uses these
technology in their
business operations
and activities like
software.
Nestle apply new
technology in their
business operations
such as E-Commerce
and Internet. Both are
beneficial for the
company to maximise
their sales and
revenues in limited
time period.
New technology
effects on employees
are doesn't know about
advanced technology.
Thus, it reduce
profitability and
effectiveness of Nestle.
Legal This factor consists the
legal situation of
Nestle which highly
impacts on their
operations in order to
meet reduce the cost.
For example: Nestle
has to apply health and
safety act for their
workforce and also
render hygiene food
and beverages for the
clients.
Health and safety act
is identify as a positive
impact on employees
and business
organisation to
maintain better
relation with them
(Avramenko, 2012).
Legal penalties is
another legislation that
adversely and
negatively impacts on
company profitability.
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Environmental Today's environment
is dynamic and clean.
Nestle require to
emphasis on these
regulation and rules
also to provide healthy
and hygienic products
with environmental
friendly operations.
This factor support
company to provide
friendly environment
to their workforce.
Thus, they work
happily which is
beneficial for them to
maximise their sales.
Environment rules and
regulations highly
effects on the image
and goodwill of
company.
TASK 4
P5 Internal and external analysis for identifying strengths & weaknesses
Internal and external analysis is a main part of the SWOT Analysis. It is important factor
for the all organisation which includes strength and weakness as an internal part and threats and
opportunities as an external part (Bovee, Thill and Raina, 2016). Thus, it is important for the
company to identify their internal as well as external factor also. SWOT Analysis of the Nestle
which are explained as below:
Strength:
Large workforce: In the organisation approx. 340000 employees are currently working
which is main strength of the company. All these employees are well-educated and
knowledgeable which help them to deal with difficult situation in easy manner.
Broad product portfolio: Nestle is a world's largest brand across the world and they
recently having more than 8000 products or brands under its name such as mineral water and
coffee, soups and sauces, breakfast cereals and many other. All these are available in
marketplace as per the needs and wants of customers (Cavalcante, Kesting and Ulhøi, 2011).
Weaknesses:
Brand Structure: Nestle has different brands and products under the umbrella unit so
handling such different number of personal brands can develop conflict and misunderstanding of
interest.
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Consumer and legal problems: Although Nestle recently come up controversies over the
different years for example Nestle baby food formula boycott. Another issues is fixing of
chocolate price and child labour by suppliers which effect in adverse worth of mouth.
Opportunities:
Healthy breakfast: Main opportunity for the Nestle is Maggi oats and many other healthy
breakfast food which have a more time future (Hair, 2015). Thus it is important and essential for
the company to maximise their sales. In this business require to do maximum market penetration
with respects to its cereals.
Maximising income levels: Due to enhanced literacy rate, stable political scenario,
handled inflation rate and disposable income level of population is maximising there by effecting
into changing lifestyle and upsurge in demand.
Threats:
Prices of commodities or products: Maximising price of products will effects in further
gain in the price. Further maximise in price that will output in reduce in sales, brand switching
and margins.
Competition in the market: With maximising number of national and local participant
it's becoming more difficult for the business to distinguish themselves for other organisation.
There is another threat from imitative goods destroying its image in marketplace.
P6 How weaknesses and strengths interrelated with external factor
It is more essential for the company to associate external factor and its weakness and
strength. This factor give better chances to the business entity to gain competitive advantage
easily. It is the role of management to overcome their weakness and provides their efforts in
achievement if predetermined goals (Hamilton and Webster, 2015). Through this, various
advantages are archived by company such as higher profitability, maximum sales better, image
in market and many other. PESTLE Analysis of the Nestle and their relation with Strength and
weakness are determine as below:
PESTLE Analysis Strength Weakness
Political factor is main factor
that have direct impact on the
business growth and success.
Strong legislature structure
turns into the strength of an
organisation as this will allows
Instability due to the impact of
Brexit turns into the weakness
of an organisation as this will
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In this factor company follow
different rules and regulation
that impact on business
strength and weakness.
Presence of political situation
in UK is quite unstable due to
the impact of Brexit but their
strong legislature structure
provide the strong base to
politics of a nation.
Nestle to adopt stable
corporate strategies.
negatively impact their short
term objectives and strategies
about improvement in sales
figure.
Economic factor also main
part of the business growth and
success. Each and every nation
has various economic situation
and various level of cash
inflow or outflow. In UK,
economy is strong due to high
flow of cash but there is
situation of inflation in UK
due to impact of Brexit.
High flow of cash becomes the
strength of Nestle as this will
allows to improve their
functioning specifically in UK
to generate more amount of
profits.
Inflation has direct negative
impact over the per capita
income of individual which
results in lower down the
demand of the products and
impacts the sales.
Social factor is mainly related
to the attitudes, cultural
aspects, beliefs and behaviour
of clients. This will have more
effects on business operation
and demands. Individuals in
UK are more attracted towards
the consumption of different
items but on the other hand
they become the health
Preference of the new items
becomes the strength of the
organisation as the have
diversified product lines.
Health consciousness of the
people turns out into the
weakness as they some target
group goes beyond from their
products which have impact
over their sales.
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