BUS301: Nestle PESTLE Analysis of the UK Food Industry Environment

This report presents a PESTLE analysis of Nestle, a multinational food and beverage company, focusing on its operations within the UK food industry. The introduction highlights the importance of external environment research for competitive advantage, particularly in a complex and rapidly changing global market. The main body of the report delves into the political, economic, social, technological, environmental, and legal factors impacting Nestle. Political factors like Brexit and corporate tax reductions are discussed, along with economic challenges such as fluctuating exchange rates. Social factors, including changing consumer behavior towards healthier eating, and technological advancements, including digitalization and cyber security, are also examined. Environmental considerations, such as Nestle's sustainability efforts, and legal aspects, including health and hygiene regulations, are also addressed. The conclusion emphasizes the value of PESTLE analysis in shaping Nestle's strategies for competitiveness and sustainability in the food and beverage market. References to relevant books and journals are included.

External Environment
Research and Analysis
Portfolio

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
CONCLUSION................................................................................................................................2
References:.......................................................................................................................................2

INTRODUCTION
External environment research is very important to gather the information of the outside
world to gain competitive advantage. Global business environment is complex, full of
uncertainties, in rapid change and with intense competition (Salim, 2018). The report outlines
the PESTLE analysis of the Nestle- a multinational company of food and beverages.
MAIN BODY
Nestle is a well established and highly competitive company with high brand portfolio .
Despite of all this Nestle is facing difficulty in sustaining the competitive UK food industry to
maintain its market position. Therefore PESTLE analysis is conducted to analyse the external
environment factors of UK food industry to determine opportunities and threats of the company. Political factors: Political factor like Brexit created the disadvantage for Nestle as
Europe was the important and large market for the Nestle production profit. Brexit has
bring threat for livelihood of production and the workers of the food. Reduction in
corporate tax of countries in which Nestle operates gives great advantage to Nestle to
produce more products with better quality at lower cost to serve the consumers. Economic factors: Nestle operates globally under different economic conditions
therefore foreign exchange swing is the biggest challenge of the Nestle as prices of raw
materials fluctuate and so the affordability and quality of food. Economic stability in the
largest market like UK, US etc. is beneficial to Nestle in better performance including
larger sales and profit with strong financial statement (Halbert and Ingulli, 2020). Social factors:Nestle always consider the socio culture factor in its marketing and
diversification of products which leads to higher sales and profit for the company. But
change in customers behaviour towards the no sugar, healthy eating, saturated fat etc. has
caused difficulty for the Nestle in meeting the customer demands with its existing
products. Technological factors:Nestle has well adapted the latest technology by implementing the
can factor on the product by which consumers can access all the information about
product along with the process for better transparency. But there is always a disadvantage
of the technology in the food industry, the rapid digitalisation is challenging as cyber
attacks, security, privacy etc. are threat to company (Galli and Vousvouras, 2020).
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 Environmental factors: Nestle is highly facing the environmental issue as company has
obligation of overuse of water and wastage of natural resources like coco and energy.
Environment sustainability is important foe every food organisation for the safety of food
therefore Nestle declined the use of plastic in product packaging and start to use 100%
recyclable packaging materials.
 Legal factors: Nestle is a global food and beverage company therefore it is necessary to
regularly check legal laws related ton heath and hygiene, labour law, protection laws, etc.
(Vlados and Chatzinikolaou, 2019). Nestle faced the shame due to exploit of health safety
law across the globe in 'Maggie' which lead to suspension of the product for several time
reducing the profits of company. Nestle was benefited with protection legal law in
protecting the unique shape of 'KitKat' in various countries.
CONCLUSION
It vis concluded from the above report that PESTLE analysis will help the organisation
like Nestle in uniquely transforming their products and marketing strategies to compete the
highly competitive market of food and beverage industry. Hence food safety, health and hygiene,
environment sustainability, no wastage etc. are very important factors to be considered by food
and beverage industry to grow and sustain the market with profitability (Tourky and et. al.,
2020).
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References:
Books and Journals
Galli, C.C. and Vousvouras, C., 2020. Nestlé caring for water. International Journal of Water
Resources Development. 36(6). pp.1093-1104.
Halbert, T. and Ingulli, E., 2020. Law and ethics in the business environment. Cengage Learning.
Salim, M.S., 2018. An investigation of strategic management on the corporation NESLTE.
Tourky, M and et. al., 2020. New conceptualization and measurement of corporate identity:
Evidence from UK food and beverage industry. Journal of Business Research.109.
pp.595-606.
Vlados, C. and Chatzinikolaou, D., 2019. Methodological redirections for an evolutionary
approach of the external business environment. J. Mgmt. & Sustainability. 9. p.25.
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