Business Environment Analysis: Nestle's SWOT, PESTLE & Functions

This report offers a comprehensive analysis of the business environment, focusing on various organizational structures such as public, private, and voluntary sectors, including their purposes and legal frameworks. The report examines the size and scope of organizations like Nestle, NHS, and Oxfam, highlighting their key characteristics and operational aspects. A significant portion of the report is dedicated to Nestle, including a detailed SWOT analysis, and an exploration of the interrelation of its strengths and weaknesses with external macro factors. The report also explores the relationships between different organizational functions within Nestle, such as HR, finance, marketing, and production, and how these functions contribute to the company's overall objectives. Furthermore, it assesses the positive and negative impacts of the macro environment (political, economic, social, technological, legal, and environmental factors) on business operations, providing a holistic view of the business landscape. The report concludes with a summary of the key findings and insights gained from the analysis.

Business and Business
Environment

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Types and purposes of different organisations & their legal structure..................................1
P2 Size and scope of a range of different type of organisation...................................................2
TASK 2............................................................................................................................................3
P3 The relationship between different organisational functions.................................................3
TASK 3............................................................................................................................................4
P4 Positive and negative impacts the macro environment upon business operations.................4
TASK 4............................................................................................................................................6
P5 Swot analysis of Nestle..........................................................................................................6
P6 Interrelation of strength and weakness with external macro factors......................................6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Business environment is the overall surroundings of an organisation. In this report
various organisational structures are discussed along with their purposes and legal structures.
Every company vary on the basis of size, scope and range which is discussed in this report along
with relationship between the functions of these organisations. Various analyses is conducted
such as SWOT and PESTLE of Nestle company which is engaged in producing food products
and has it's headquarters in England, United Kingdom.
TASK 1
P1 Types and purposes of different organisations & their legal structure
In an business environment, there are various types of organisational structures such as
private, public, LLP, voluntary etc. These entities has a specific legal structure which is required
to be followed in order to develop their business. Purpose of these structures along with their
legal structures are mentioned below:
Public sector organisation
Public sector organisation are the companies which are majorly owned by the
governmental authority. The main purpose of these companies is to serve their customers. Focus
of these structure is on customer satisfaction and not on profit maximisation. National health
services or NHS is a public organisation which is publicly funded by the government of England,
United Kingdom. Purpose of NHS is to render medical services to society and contributes
towards community.
Legal structure: Public organisation is regulated or controlled by governmental
authority such as Central government, state government and local government. NHS is controlled
and managed by Central government (Cross, 2011).
Private sector organisation
Private organisations are the companies, sole proprietorship and partnerships which are
owned by private individual and government has no involvement in these entities (Private
company, 2018). Main purpose of these companies is to attain growth in order to earn maximum
profit. Nestle is a private company which deals in producing various food products, some of
them are chocolates, noodles, milk powder etc. The main aim of this company is to produce high
quality food products so that they can earn high profitability.
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Legal structure: Private organisations are owned by private individual but they have to
follow various legal requirements complied by governmental authority. Nestle has to follow
various acts such as Minimum wages act, payment of wages act etc.
Voluntary organisation
These organisations are the non profit organisations which operates with the objective of
society welfare. Oxfam is a voluntary organisation which support survival of poor individuals.
Their aim is to provide food products and other help to poor people in order to remove poverty.
Legal structure: These type of organisations is partially controlled by government and
private individuals.
P2 Size and scope of a range of different type of organisation
There is a brief description given below, subject to size, scope of private, public and
voluntary organisations.
Nestle
This is one of the international successful brand associated with analysing the
organisation by offering products worldwide. It retains high profitability in food market it is
currently operating approx five hundred factories and plans which make its largest manufacturer
across the globe. It has huge supply chain in 190 countries. It has employee strength of approx
339000 employees. It retained 89.90 billion revenues and 131.9 billion assets are defined in this
context.
Scope of nestle: Organisation deals in diversified products and fulfilling the desires and
satisfaction of customers. Package foods, water bottle, tea, coffee, pet food, chocolates, ice
cream, frozen products, break fast, baby food and Maggie. All these products are supplied
across the world (Gillon, 2012).
Vision: To be a market leader in food manufacturing and distribution industry is the main
objective of organisation. Its core operations are focused around providing food with full
nutrition and fulfilling the physiological needs of customers.
Mission: Supplying the high quality products which are supported with healthy lifestyle
of public.
NHS
Size of NHS: National Health Services is an open area association of United Kingdom
which bargains in human services segment and gives well being administrations to nearby
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individuals of nation. Ribs, England, Scotland, Northern Ireland and so on are where NHS
regulate their administrations. Conveyance social change is the significant thought process of
association. Approximately 1.6 million people are working in the association and render
administrations to open.
Scope of NHS: It is an association that render essential restorative offices to needy
individuals of nation. Alongside this, it likewise offers optical and dental administrations. Extent
of NHS are characterized underneath:
Vision: Pass on data with respect to human services offices to society.
Mission: Provide great human services benefits on consistent premise.
Oxfam
Size of Oxfam: 20 autonomous magnanimous associations us Oxfam name to offer their
administrations to open. It furnishes benefits all through the world with the motivation behind
taking out destitution from a few areas. Administration of assets or spending plan assigned for
social insurance offices (Hilton, 2013).
Scope of Oxfam: Advocacy, star relocation, approach inquire about, diminished of
destitution, catastrophe alleviation and so on are a few administrations that are rendered by
Oxfam. Sustenance help office is likewise offer by association to needy individuals of nation by
the help of volunteers.
Vision: To expel destitution from everywhere throughout the world.
Mission: Working for welfare of society and enhance their expectation for everyday
comforts.
Stakeholder analysis: Nestle is one of the multinational organisation which has large
share among its stake holders. There are type of stakeholders are fund as fascinated, less
fascinated and low power.
TASK 2
P3 The relationship between different organisational functions
Nestle is one of the famous brand which offer assortment of items all through the world.
Principle target of firm is to amplify benefit and produce high income. Diverse offices are
working in an association like human asset, generation, showcasing, back and so on. Parts and
obligations of every office is unmistakable yet their goal is comparative. In Nestle, these
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divisions work on the whole to perform activities in powerful way. Synergistic endeavours of
these utilitarian offices encourages firm in achieving its destinations and targets.
Human Resource Department:This department mainly associated with managing and
operating the human resources in Nestle. In organisation management associated with designing
and facilitating the changes in human resource department. Providing right position and job to
the right person is the main motto of Nestle human resource department (Liu, 2011).
Finance department: Evaluation and measurement of effective financial plans and
management of financial resources in order to determine the financial perspective is the main
objective of Nestle finance department. Managers keep monitoring the finance requirement
whether the operations are needed to operate in proper manner.
Marketing department: it is also one of the important department which helps in
enhancing the sales graph of organisation. Promotional tools, marketing campaigns and
promotional events are the USP of marketing department of Nestle.
Production and operations department: This department directly associated with
manufacturing and sales department of business. Departments as activities for purpose of
satisfying the needs and requirement of business.
Structure of organisation
Function based: The core areas remain divided in this section as human resource,
finance and production department.
Geography based: There are basic region and segmentations are done subject to identify
needs and requirement of business.
Consumer based:Main modem of this section is to analyse the behaviour of buyers and
the segmentation and promotes the innovation in firm.
Product based: Organisation offers different type of products to customers to various
segmentations in which firm deals. Ice cream, coffee, tea, baby food etc. Structure of business
also divided on this basis (Low, 2011).
TASK 3
P4 Positive and negative impacts the macro environment upon business operations
Macro environment of business is made of following elements as;
Political factors
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Democratic changes and variations are considered in this factors its positive and negative
impact are defined as follow;
Positive impact: By considering the political changes strategies and plans be able to
sorted in more effective manner.
Negative impact: Strict regulations and procedures impact the process of independent
working and influence the work spirit.
Economical factors
Elements which remain associated with economic growth of business are considered in
this factor
Positive impact: There is a opportunity to develop and grow the market structure of
Nestle in developing economy countries.
Negative impact: Slow economic growth affect the operations and management.
Social factors
Culture, trends, values and customer living index are the part of social factors.
Positive impact:Young generation and open culture may lead Nestle to sustainable
growth and development.
Negative impact: it may create extra burden to management and lose the existing brand
image.
Technology factors
Technical advancements and tools are considered in technological factors.
Positive impact: Improved tactics and models are the essential part to retain the
technological factors with in organisation.
Negative impact: It take times to learn new tactics and ways to improve the operations.
Legal factors
legislations and rules are the main elements considered in this factor.
Positive impact: It creates fair and clear image and picture in the eyes of law and assist
the function of business in dynamic form.
Negative impact: Lack of proper supervision and control reduce the compatibility of
business (Luo, 2013).
Environmental factors
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This is the main element which remain associated with global system spread around the
business. Physical process remains the part of this process.
Positive impact: organisation be able to able to create separate brand value and image
with in organisational context.
Negative impact: Lack of proper procedure of of following environmental rules and
regulations may lead organisation towards among people.
TASK 4
P5 Swot analysis of Nestle
Strength
 Nestle has build up strong
manufacturing and production chain
across the country.
 Strong geographic presence in domestic
and international market Stores in 194 countries regions and
effective budget.
Weakness
 Critical process in terms of bifurcating
the sections lag the supply chain
management, high criticism form
customers are featured by organisation.
 Contaminated food recall is one of the
main downfall for Nestle reduce the
brand image of business.
Opportunities
 Opportunities to build up strong
communication and supply chain in
developing economies Material sources and transparent
process to gain quality and loyalty
(Schaltegger, 2017).
Threats
 Cut throat competition
 Poor water supplies and management
P6 Interrelation of strength and weakness with external macro factors
Political
Nestle need to analyse the political environment and government nature in terms of food
regulations and acts.
Strength: Organisation need to follow the rules and regulations to create the government
to create effective team.
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Weakness: Different political environment create complex business environment and
critical the process.
Economic
There are some critical conditions and interest rate, GDP of the nation subject to analyse
the impact upon operations and functions of business.
Strength: Economic conditions are the main aspect considered as a strength of
organisation
Weakness: customers do not have potential interest to purchase the goods after that
global downfall.
Social
Organisation needs to fulfil the demand and requirement of people in terms of livelihood
and living Index.
Strength: Building strong base of CSR activities and deliveries are the main element
considered in it.
Weakness: Nestle have to compromise with the quality of products and services to
employees.
Technological factors
Technological factors as digital technology are the main objective of organisation.
Strength: Advanced tools and management to enhance satisfaction level is the main
strength of organisation.
Weakness: organisation has to pay additional cost in terms of these services and
management (Zelenkov, 2015).
CONCLUSION
From the above project report, it has been concluded that evaluating business
environment is a vital task of the organisation which can be done by performing SWOT and
PESTLE analyses. Every organisation is different as their size, scope and activities are different.
These organisational structures are divided as public, private and voluntary organisations.
Various organisational functions are discussed and linked with organisational objectives. This
environment plays a significant role in the effective functioning of business operations.
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REFERENCES
Books and Journals:
Cross, F. B. and Miller, R. L., 2011. The Legal Environment of Business: Text and Cases:
Ethical, Regulatory, Global, and Corporate Issues. Cengage Learning.
Gillon, K., and et. al., 2012. Business analytics: radical shift or incremental change?.
Hilton, R. W. and Platt, D. E., 2013. Managerial accounting: creating value in a dynamic
business environment. McGraw-Hill Education.
Liu, B., Cao, S. G. and He, W., 2011. Distributed data mining for e-business. Information
Technology and Management, 12(2). pp.67-79.
Low, C., Chen, Y. and Wu, M., 2011. Understanding the determinants of cloud computing
adoption. Industrial management & data systems, 111(7). pp.1006-1023.
Luo, Y. and Zhao, H., 2013. Doing business in a transitional society: Economic environment and
relational political strategy for multinationals. Business & Society, 52(3). pp.515-549.
Schaltegger, S. and Wagner, M., 2017. Managing the business case for sustainability: The
integration of social, environmental and economic performance. Routledge.
Zelenkov, Y., 2015, June. Business and IT alignment in turbulent business environment. In
International Conference on Business Information Systems (pp. 101-112). Springer,
Cham.
Online
Private company. 2018. [Online]. Available through: <https://lawpath.com.au/blog/what-is-a-
private-company>
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