Business Environment Analysis Report: Nestle, NHS, RSPCA, Functions

This report provides a comprehensive analysis of the business environment, focusing on three distinct organizations: Nestle, NHS, and RSPCA. The report begins by defining the business environment and its impact on organizational performance, highlighting the influence of internal and external factors. It then delves into the different purposes and types of organizations, categorizing them as private, public, and voluntary sectors, with Nestle, NHS, and RSPCA serving as examples, respectively. The report examines the scope and size of each organization, including their revenue, number of employees, and the range of products or services offered. Furthermore, it explores the interrelationship between organizational functions and objectives, analyzing departments such as human resources, finance, production and operation, and marketing. The report also investigates the positive and negative impacts of the macro environment on business operations, along with an analysis of internal and external factors to identify strengths and weaknesses, and their relation to macro-environmental elements. The report concludes with a summary of findings and a list of references.

Business & Business
Environment

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Covered in PPT...........................................................................................................................1
TASK 2............................................................................................................................................1
P3.Interrelationship between organisation function and objectives............................................1
TASK 3............................................................................................................................................3
P4 Negative and positive impact of macro environment upon business actions and operations 3
TASK 4............................................................................................................................................4
P5 External and internal analysis of firm to identify its strengths and weakness.......................4
P6 Interrelation of strengths and weakness with macro environment elements.........................6
CONCLUSION................................................................................................................................7
REFERENCES ...............................................................................................................................8

INTRODUCTION
Business environment is identified as an effective combination of external and internal
factors that effects on business performance and profitability in direct manner (Business
environment, 2018). This factor includes entities, individuals and many other main aspects which
influence the decision making activity of organisation. It also cover, change in technology,
government, customers, market trends and many other. In the assignment, given organisation is
private, public and voluntary which has Nestle, NHS and RSPCA. All these are plan important
and essential in terms of providing job opportunities to the unemployment people (Chetwood and
et. al., 2014). This report divided into different tasks which cover various elements such as
purpose and types of enterprise, scope and size of organisation and other. Interrelationship
between business objectives and functions is also analysed in this report. Positive and negative
effect of macro environment on business operations is also described in this project. Along with
them, analysation of internal and external factor and its relation with macro environment
elements which also included in this assignment.
TASK 1
P1 Different purpose and types of organisations
There are different types of organisation whose play important and essential role in
achieving long term goals and objectives in given time period. Fundamentally, it is classified into
different aspects such as voluntary, private and public as well. All these business are having their
own objectives and goals which assist in differentiate from many other firms. Beside this,
purpose and legal structure of three organisations also analysed which support them to run
business operation in marketplace systematically. Various kind of firm as well as their purpose
and legal structure are analysed as below:
Private Organisation:
It is a type of business which are controlled, handled and owned by a single person, these
are fall into the part of private organisation. In these business, contribution of legal authority and
government is few. Main motive of these enterprise is to earning maximum amount of capital.
Nestle is one of the best example of private enterprise.
Nestle overview: It is one of the well known and famous organisation worldwide. Nestle
is a Swiss transnational business which is formed in 1866 headquartered in Switzerland, United
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Kingdom. It provides different kind of services and products to clients, including, chocolates,
Maggie, dairy products, pet food and many other.
Purpose: Main purpose of Nestle is to earning maximum profit by rendering quality goods and
services to the customers at reasonable price.
Legal structure: This structure includes some points which are determined as below:
Partnership: It includes two and more than two people whose are employing with each
other. In such enterprise, 2 to 20 people can be manger or owner of a company.
Sole proprietorship: It is the role and responsibility of owner is to manage all activities
and functions in proper manner. They require sufficient money fir running such kind of
company.
Limited companies: It is type of joint stock organisation where business entity has
separate legal individuality from owners. Such kind of businesses is established by shareholders.
It is divided into two types such as limited by guarantee and limited by share.
Public organisation:
It is also a main part of the business in which government is highly responsible for
control and regulate business activities and operations in an effective manner. Main purpose of
such enterprise is to earning profit as well as social development. This type of organisation
mainly focuses on the welfare and development of society. This enterprise includes different
entity such as education sectors, electricity boards and health care organisation.
Overview of NHS:
NHS is a public organisation which is mainly related to H&S (Health and social care
sector). It provides different kind of health related services to the service seeker at zero cost.
NHS is located in England, UK. They also render free facilities to audience in emergency case
for any infectious sickness treatment.
Purpose: Main purpose and motive of NHS is to develop innovation in facility linked to
health care. They provide basic medical facilities to domestic visitor and people. Another motive
is to give healthy lives to large number of person.
Legal structure: It is important and essential for the company which includes different parts are
determined as below:
Central government: It is part of government which regulates the transaction of entire
country. Main role and duty is collection of printing and tax of denomination.
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State government: Under this Central government assist entire functions and objectives
of state government. Main motive is to monitor all activities and functions of education
organisation.
Local government: It is another part of the government which work an specific
geographical region like town and city.
Voluntary sector:
It is regulated by large number of person which aim of welfare and development of
society. Main features of this enterprise are working for society development, autonomy for
states, and many other. For fulfilling entire prescribed situation and operating their business
operations and activities in successful manner. One of the main example of voluntary sector is
RSPCA.
Overview of RSPCA: It stand for Royal Society for the Prevention of Cruelty to
Animals, it is a voluntary and charitable enterprise. It located in Wales and England that
promotes animal welfare. It was established in 1824 by William Wilberforce, Arthur Broome.
Purpose: Main purpose is to decrease poverty from world and to give product to lack of
population of society.
P2. Scope and size of different types of organisations
Different business have their own size and scope. Business scope defines regarding
different functions and size of company that precise regarding area where company gives its
services and goods. Due to distinct purpose and objective, scope and size differs that identifies as
below:
Nestle
Size of Nestle: It is a transnational business which deals in drink and food products. It is
largest organisation measured by its sales and revenues. Approx 447 factories of company are
existing where products and services are manufactured. Operations of Nestle are established in
around 190 countries. For satisfying demands of clients properly, different number of person are
employed by business organisation. Approximately 339000 workers are manage business
operations in an effective manner. Nestle yield 89.80 billion revenue in year 2017 by their
operations worldwide.
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Scope of Nestle: Kind of varied products of Nestle are enclosed in it. business
manufacture different healthy and effective goods to customers. These products includes frozen
products, baby food, coffee, bottled water snacks, tea, Maggie, pet food etc.
Vision: “To bring clients foods which are safe, of high quality & render optimal
nutrition in order to meet physiological needs.
Mission: "Good Food, Good Life" . To produce better food products so that people will
live a better life.
National Health Services
Size of NHS: It is a type of public sector which are located in United Kingdom and
health related services to home population of nation. There are different countries like Scotland,
England etc. where business provides its effective services. One of the main motive of
organisation is to carry social reform. For rendering effective and healthy facility to public,
approximately 1.6 million people which are engaged in firm.
Scope of NHS: Basic medical facilities and services are given by enterprise to lack of
population of country. Dental and Optical services are also render by company to people. Scope
of NHS are defined as:
 Transmit health related data and information to society development.
 Allocation of management fund or budget for facilities concentrated to health care.
Vision: Enabling large number of person to live independent and healthier by high
standard seamless care.
Mission: To give better service and care that service seeker families neediness to use.
RSPCA
Size of RSPCA : For providing quality and healthy services to public sector, 20
charitable business work with RSPCA. Services are render by enterprise throughout the in all
over the world for the aim of decreasing poverty.
Scope of RSPCA: It help the government in formulation of laws regarding protection of
animals. Also there are different programs are initiatives by RSPCA which contributes to bring
awareness among the individuals about safety of animals.
Mission: The RSPCA as a charity will, by all lawful means, prevent cruelty, promote
kindness to and alleviate suffering of all animals.
Vision: “Ensuring that every pet is cared for properly and has a good home”
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TASK 2
P3.Interrelationship between organisation function and objectives
Nestle is a world famous and well-know organisation which deals in different variety of
quality food. Main aim and motive of this organisation is to gain maximum amount of profit by
rendering quality products (Crane and Matten, 2016). Each and every business put their full
dedication in satisfying basic requirement of customers. In this organisation, there are different
departments such as marketing, human resources and many other. These are determined as
below:
Human resource department: It is a main department of the company which is strong for
the business to recruit knowledgeable people with aim to achieving long term goals and
objectives. In Nestle, business administrator thoughtful manpower requirements of enterprise and
select talented candidates as per this (Gharajedaghi, 2011). On the other hand Cadbury, need
large number of talented and experienced employees whose are accomplish business objectives
in given time period. In this manger is also responsible for providing proper training and
development secession to their employees. So that they can attend whole programs and maximise
their basic skill on business activities and functions in an proper and effective manner.
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Finance department: It is a most important department of the company which help them
to arrange sufficient amount of money for doing business activities and functions easily (Gilboy,
2016). In case of Nestle, finance department is more strong as compare to Cadbury. Which is
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Illustration 1: Organisation functions
Illustration 2: Organisational Department

good for them to accomplish objectives and goals of company in an effective and efficient
manner. It is identify as a role and responsibility of finance manager to arrange proper amount
of fund with aim to dealing with difficult situation.
Production and operation department: It is an other department which is linked with
manufacture of services and goods. Company produced goods for consummated wants and needs
of costumers. In Nestle firm, operation administrator steady that entire resources are employ
effectively so that the cost of production that can be decreased (Kian Chong, Shafaghi and Leing
Tan, 2011). Working style of production and operation department are extremely linked with
business objectives and goals. This department mainly emphasised on product quality and its
features.
Marketing department: It is another essential department in the organisation whose have
different role and responsibility in order to innovate new products and services in marketplace.
Role of this department is to apply different promotional mix such as advertisements, publicity
and many other. All these are assist to gain competitive benefits in limited time period
(Kaufmann, Kraay and Mastruzzi, 2011). In case of Cadbury, role of such manager is to
introduced their new services and products by applying different tools and techniques of
marketing.
Structure of organisation:
Function based: Under this, division is developed as per the functions and activities of
different departments. These are mainly linked with marketing, human resource, operation and
production.
Geography based: Under this, division is completed on the basis of locality, region etc.
As per the region business recognises demands and needs of customers whose living on such
region to meet with their need in an effective way (Li and et. al., 2011).
Consumer based: Under this, differentiation, which is based on customer behaviour and
perception. It will assist in enhancing innovative plan in company to satisfy needs and demands
of clients.
Product based: For providing effective products to clients, segmentation of business is
completed. Different varieties of products are given by Nestle to their buyers (López-Gamero,
et. al., 2011). It cover tea, coffee, ice-cream, chocolates etc.
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TASK 3
P4 Negative and positive impact of macro environment upon business actions and operations
There are many factors in macro-environment which has direct impact upon the
business operations of Nestle. Such factors are named as political, economical, social,
technological, legal and environmental (Zsambok and Klein, 2014). All such factors have
positive and negative impact upon business depends upon their capabilities which are defined
below:
Political factors: Important aspect which includes about the stability of government,
taxation policies, excise duty, working regulations etc. Different in all countries.
 Positive impact: Nestle is multinational company having major business operation in
developed nations where the government are stable (Vaiman, Sigurjonsson and
Davidsson, 2011). This will have positive impact upon business.
 Negative impact: If the tax rates are in high some countries this will lowers down their
profitability which impacts their businesses in other nations also.
Economical factors: It helps to assess the economic condition of nation which is present
there through analysis of different factors like inflation, deflation, level of income of individuals,
flow of cash etc.
 Positive impact: If the level of incomer of individuals of society is good then they
creates more demand of different product which has positive impact upon the sales of
Nestle product.
 Negative impact: If somewhere flow of cash in an economy is low then this have
negative impact upon the expansion plan of organisation (Wack, 2017).
Social factors: The different factors which are considered under this are culture, age,
education, values etc.
 Positive impact: Higher level of education has positive impact sale of products as it
helps the organisation is to use online mode to attract more customers.
 Negative impact: Cultures are different in all nation. This will impact the sales of
particular product in such nation where it has negative impact upon culture (Zeng, Li and
Duan, 2012).
Technological factors: This includes about the factors related to use of advance
technology, methods and techniques of working.
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 Positive impact: Change in their technologies helps in motivation of employees to work
hard and improvement of their productivity and quality of products which satisfies the
different demand of customers.
 Negative impact: Use of obsolete technology has negative impact upon the business of
organisation and demoralise the employees (Yu and Ramanathan, 2013).
Legal factors: This will includes the laws and regulations which are formed by
government and need to follow by organisation while providing their activities.
 Positive impact: Consideration of these factors helps in effective performance of
business activities and attainment of results in more optimum manner.
 Negative impact: If such laws not fulfilled then has negative impact upon their brand
image.
Environmental factors: It brings an obligation upon organisation is to keep the
environment clean and removes the adverse impact of their business activities.
 Positive impact: It helps to build their brand image and taking the support of society in
organisational activities (Zeng, Li and Duan, 2012).
Negative impact: This have indirect impact upon their cots of production and reduce their
profitability.
TASK 4
P5 External and internal analysis of firm to identify its strengths and weakness
SWOT analysis is the effective tool which helps the organisation is to understand about
their strengths and weaknesses. This will helps to grab the future opportunities in more optimum
manner. The information which is collected with the help of this tool helps in formulation of the
effective strategies which directs the employees in performance of different functions efficient
manner (Zsambok and Klein, 2014).
Strengths
 World Renowned brand: It is one of the most recognised food organisation in all the
world. In terms of revenue it is worlds largest food organisation. This will adopt the
effective branding approach for their different kind of reports which provides the
opportunity regarding creation of awarenesses among consumers about their different
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various brands ( Meiners, Ringleb and Edwards, 2014). It can be understood from the fact
that controversy with Maggie has no impact upon the sale of coffee.
 Large workforce: There are large number of employees are working in organisation
which is around 340000 globally. It provides the opportunity regarding effective
disbursement of their services in all over the world.
Weaknesses
 Maggie Controversy: Controversy of Maggie due to banned in India has great negative
impact upon the brand value of organisation (Yu and Ramanathan, 2013). This will have
huge impact upon the sales of Maggie on other products after arise of quality issues.
Opportunities
 Expanding market: Due to having their extensive distribution channel there are large
number of opportunity for expansion of business in rural areas also (Sekaran and Bougie,
2016).
 Increasing income level: There are many aspects which helps the organisation is to earn
large number of profits like stability of government, improves literacy rate, higher
income of individuals etc.
Threats
 Competition in market: There are many other small and large companies which
provides food items in market (Saleem, 2017). This will direct impact upon sales and
profitability of organisation.
Price of commodities: Increase in the price of intermediaries has direct impact upon final good
price which results in decrease of demand of their products and profit margin.
P6 Interrelation of strengths and weakness with macro environment elements
Political Economic
There are many standards provided by
government which is need to adhere by
organisation regarding providence of food and
beverage items (Tayur, Ganeshan and
Magazine, 2012).
Economic factor include so many factors like
level of income, flow of cash, rate of inflation
and deflation. In different countries, it becomes
their strength and weakness as per the
situation.
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Changes in import and export policies has
negative impact upon the business of decision.
Strength: They have good management and
legal team which helps in adherence of such
different laws.
Weaknesses: Different regulation persist in
different countries which makes the task
difficult regarding fulfilment all laws and
conditions.
Strength: Having operations too many
developed countries which helps to improve
their profits.
Weaknesses: Difficult to change the policies
frequently (Wack, 2017).
Social Technological
Attraction of customers towards healthy food
and more concern about different cultures like
languages and religion.
Strength: It helps the Nestle to attract large
number of youth
At present new techniques are used in Nestle
for production of food items (Türetken and et.
al., 2011). Also, many R&D are situated in
different countries
Strength: Providence of high quality product
Legal Environmental
Frequent changes in law are ascertained in
different countries.
Weakness: Difficult to understand such laws
and make new strategies every time (Vaiman,
Sigurjonsson and Davidsson, 2011).
Providence of the activities regarding save of
environment and development of society.
Strength: It helps to attain the support of
employees
CONCLUSION
From the above mentioned report, it can be concluded that business environment is an
effective and efficient combination of external or internal factor. This factor influence on
business operations and activities in a proper manner. There are different types of organisation
and its scope, purpose, vision, mission and legal structure effected on company and its
performance. There are different departments whose are play vital and essential role in
accomplishing business's goals and objectives as well as gain competitive benefits. There are
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mainly two factor SWOT and PESTLE, both are interrelated with each other and influence upon
organisation and its development in a direct and indirect way.
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