Business Environment Report: Nestle's Business Environment Analysis

This report provides a comprehensive analysis of Nestle's business environment, examining various internal and external factors influencing its operations. It begins with an introduction to the business environment and its significance for managers. The report then delves into different types of organizations (public, private, and voluntary), their purposes, and legal structures, providing overviews of Nestle and the National Health Service (NHS) as examples. It explores the size and scope of these organizations, comparing Nestle's global presence with the NHS's focus on healthcare. Furthermore, the report includes a stakeholder analysis, identifying key stakeholders like investors, customers, suppliers, and the government, and emphasizing the importance of meeting their needs for business success. The report concludes by highlighting the key takeaways from the analysis and providing a list of references used.

TASK 1
(P1 and P2)
Business
Environment

Table of Content
 Introduction
 Types and purpose of different organisations and their legal
structure
 Size and scope of different organisation
 Stakeholders analysis
 Conclusion
 References

Introduction
 Business Environment refers to the surroundings in which
firm operates.
 It includes various internal as well as external factors that
influence operations and functions of an enterprise.
 It is crucial for managers to consider all such forces that
directly impacts upon working of business concern.
 It assists them in formulating effective plans & policies and
implementation of those.
 This assignment is based on Nestle, which is a largest food
company measured by its revenues

Types and purposes of different organisations & their
legal structure
 In business environment, different types of organisations are
working such as public, private and voluntary.
 Each one has its own purpose & legal structure which makes
it distinct from others.
 Various rules and regulations are implemented by
government that every firm should have to follow in order to
run their business successfully.

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Private sector organisation:
 These organisations are operated and controlled by private
individuals.
 In private sector, involvement of government is little or no
involvement.
 These sectors highly contributes in growth of economy.
 Main purpose of such organisations is to earn high profits
and employ more workforce than public sector.

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There are many shareholders in an organisation and each have limited liability for companies debts which leads to loose the worth of their investment in a firm. Board of directors are those who develops
organisation internally and externally. To form a company legally Memorandum of association and Articles of Association are compulsory.

Contd...
 Shareholder of private limited company has right to take part in
decision making of organisation and they can not sell shares to general
public in any circumstances.
 Business operations of these organisations are operated by Board of
Directors who are elected through consent of shareholders. Private
limited organisation is headed by Chairman.

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Company overview:
Nestle is one of the largest food company in world and offer
number of food & drink products to customers such as medical
food, ice cream etc.
Purpose of Nestle:
Main purpose of company is to earn high revenues and profits by
offering high quality goods & services to consumers.

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Legal structure of private firms:
Partnership:When two or more than two individuals collectively
start a business then it refers to partnership firms. In this, a
written document, i.e., partnership deed is signed by partners
which is a legal proof of their ownership in business.
Sole partnership: Under this, business is owned and operated by
single individual and they solely responsible for profit and
loss.

Public sector organisation
 These firms are being regulated and controlled by government of
respective nation.
 Public sector organisations are not only working for the purpose of
earning profits but, these also emphasize on development and
welfare of society.
 Health care institutions, education, electricity etc. are sectors
where public sector enterprises generally operates.
 NHS is an example of public sector organisation.

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PLC and private limited company are different in
companies context as in PLC members of general public
can purchase shares on stock exchange. Hence, it leads
to increase more finance as compare to private limited
company. Usually in case of PLC, businessman i.e.
shareholders supports PLC to generate higher profits
aids to receive good dividend per share.

Difference between public limited and private limited
company
There are some difference between private and public limited
company, some of them are as under-
 Public limited company can sell their share on registered
stock exchange to general public While members of private
company can not sell share to public.
 Public company has large amount of capital as compared to
private organisation.