Benefits and Drawbacks: Global Business Environment for Nestle

This report presents a comprehensive case study on Nestle, examining the benefits and drawbacks of operating within a global business environment. The research delves into the definition of globalization and its impact on businesses, with Nestle as the primary focus. The report explores the advantages of global expansion, such as increased sales and market opportunities, while also addressing the challenges, including competition, unemployment, and resource limitations. Furthermore, it analyzes the ways Nestle can mitigate the negative impacts of globalization, suggesting strategies like reducing trade barriers, controlling corruption, promoting renewable resources, and fostering cross-cultural management. The methodology employed is qualitative research, utilizing a descriptive research design to provide an in-depth understanding of the subject matter. The literature review covers key concepts and perspectives on the global business environment, providing a solid foundation for the analysis. The report aims to provide a clear understanding of the global business environment and its effects on a major multinational corporation.

Research Project

Title:
“To identify the benefits and drawbacks of a global business environment. A case
study on Nestle”
Chapter 1: Introduction
Overview of the Research
Globalisation is defined as an effective aspect that is applied to depict how nations,
people or organisations across the world are flattering more interrelated as forces such as facility
media technology and worldwide economics make it easier for goats employment ideas and
individual to cross traditional borders and extremity. Nestlé is the selected business for this
specific investigation as it is a wide Swiss multinationals food and drink Processing
conglomerate Corporation with its headquarters is in Switzerland (Azimi Delarestaqi, Razavi and
Boroumand, 2017). The company is mainly concerned over achieving growth and sustainability
with global market why this path of global enterprise situation. The study aimed to identifying
the benefits and drawbacks of global business environment over the operations of an
organisation therefore in this object is and questions are double up to aid the activity in the
accurate way. Literature review is effective in double up in the understanding of the learner and
researchers In regards to the chosen subject area with the support of secondary sources in
addition to this suitable selection of methods are effective in assisting the work in right manner
to reaching at the potential outcome and data analysis is effective in evaluating the gathered
information with the support of thematic analysis. At the end of the research recommendations
are provided over the findings of the research and researcher has also share their personal
experience which can be attained while conducting the investigation.
Background of the Research
Globalisation is effective in developing a porch unity is for the business To exploring
their operations at wider scale and attaining growth and success globalisation offers both benefits
and challenges for businesses there for it provides wider opportunity to the businesses for
economic growth to improve the quality of life for individuals, on the other side it can also lead
to challenges with the welfare of workers, economies and the Environment as organisations are
going globalised (Bathelt, Cantwell and Mudambi, 2018). Thusly, Nestle is a Swiss global
nourishment and drink handling aggregate partnership. It is the most well known food and drink
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organization, the headquarter of the firm is in Vevey, Vaud, Switzerland. It perceived as the most
stretched out nourishment organization in the globe. It is an open constrained organization,
which is established in the time of 1866 by the potential influence of Henri Nestle. The
organization is having 308,000 representatives who are placing their noteworthy affect in the
development and accomplishment of the business. The general income of the firm is around
91.43 billion and the organization is working in numerous items like, infant nourishment,
espresso, dairy items, candy parlour, breakfast grains, pet nourishment, filtered water, frozen
yogurt and so forth. The key concern of the business is to become globalised in respect to
exploring their operations at world wide scale (Birkin, Clarke and Clarke, 2017). Organisations
are focuses over implementing globalisation as their key strategic step to develop their
operations at global level and gain more profitability and growth, thus in today's competitive
business era, the key motive of each businesses is to attaining higher growth and success at
market place.
Rationale of the Research
Investigation into actual action is relay upon identifying the benefits and drawbacks of
global business on the growth and success of a business. Therefore, the area of investigation is
wide and significantly based on academic writing and very much influential in enhancing the
idea and knowledge base of individual in relation to a chosen study area. This work is affective
in exploring the benefits and drawbacks of global business environment and how it can be
beneficial for a business to achieving growth and competitive advantage (Bendell, 2017). The
another rational motive for administration the investigation is The individual curiosity of the
investigator as The researcher is willing to enhance their knowledge and Skills in regards to the
chosen subject area and also Effective in processing their individual and occupational group
ability which would be beneficial for them in accomplishing their future objects in more efficient
manner.
Research Aim
“To identify the benefits and drawbacks of a global business environment. A case study
on Nestle”
Research Objectives
• To identify the concept of global business environment.
• To identify the benefits and drawbacks of global business environment on Nestle.
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• To identify ways through which Nestle can overcome negative impact of global
business environment.
Research Questions
• What is the concept of global business environment?
• What are the benefits and drawbacks of global business environment on Nestle?
• What are the ways through which Nestle can overcome negative impact of global
business environment?
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Chapter 2: Literature Review
The concept of global business environment.
As per the views expressed by Allison Tanner, 2018, global business environment is
defined as the aggregate sovereign area outside of the business home surroundings impacting
how the business develop decision for how to use its resources. In addition to this, global
business environment is categorised among two important factors, i.e. internal and external
factors, therefore, external factors involves the social, political, economic, regulatory, tax,
culture, technological and legal environment (Brannen, Piekkari and Tietze, 2017). Global
business environment mainly mention as the base of understanding that is effective in exploring
the consciousness of culture awareness and world-wide economical inter-dependency, which
could be hard-hitting for the enterprise in attaining higher growth and success at market place.
Global business environment is based on both benefits and challenges, therefore, globalisation is
efficacious in processing possibility for the enterprises to explore their transaction at wider scale
and gain higher competitive advantage. On the contrary side global business environment also
causes issues related with political and legal norms. In the context of business global business
environment is an important feature that plays an effective role in the growth and success of an
organsiation.
The benefits and drawbacks of global business environment on Nestle.
As per the opinion analysis of Victoria Duff, 2019, Global business environment refers to
the uncontrollable international and local interactions which affects how a business operates
within commercial centre. In addition to this global business environment is a path which enable
businesses to conduct trade of goods and services in between and outside of the countries
boundaries. It basically develops opportunities for the business to gain profitability and growth
within the global market. Nestle is a large business organisation which operates at wider level
and global business environment has numerous advantaged and disadvantage (Charte and
Polonsky, 2017).
Benefits of Global business Environment
There are multiple benefits that are gained by the businesses through global business
environment, in which some are associated as under:
Improve in sale: This is the major benefit of global business environment, thus it incorporates
when an organisation trade their products and services at wider level, therefore, it mainly helps
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the business in developing their sales and revenue at global level. Furthermore, global expansion
is effective in reducing the prices of products and develop the profitability of the business
(Cohen, 2018).
Market Opportunities: Globalisation is hard-hitting for a business in processing opportunities,
therefore, with the help of globalisation organisation are able to trade their products and services
at wider scale and attracts customers at global level. However, this develop significance for the
business in achieving higher market opportunities for increasing gains and maturation.
Drawbacks of Global business Environment
In the developing countries,it has a negative impact on the economic of the country like
political, social, and economic factors of the business. The developed countries continue to
explore the underdeveloped countries on the name of business opportunities.
Unemployment factor: Due to use of technology in the countries,the labour force is reduce in
the various country which lead to rise in the unemployment in the market. Skilled employees
remain unemployed for longer period of time which leads them to shifts to another countries to
earn money in long run (Elder and Dauvergne, 2015).
Competition factors: the firm are able to operate at lager platform,which increase the
competition in the market among same line of business. Many new companies very able entry in
to existing market which give tough competition to existing market to make profits in such
market.
Limited natural resources: Due to globalisation, every country is exploring its natural
resources so extensively that their will be not resource for the further generation in the countries.
They are various limited resources which will not last for too long in the business environment
if ones get used in the business.
The ways through which Nestle can overcome negative impact of global business
environment.
Global business environment refers to the environment outside of the organization which
can influence the organization in making decision and make use of the resources. It is a
environment which helps business to perform its activities at the international levels to make
profits by achieving goals and objective. In today's market NESTLE has developed its presences
at global market providing various product such as coffee, chocolate etc. To reduce the negative
impact of global business in the environment government should reduce the trade and tariffs in
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the business agreement (Epstein, 2018). This will helps to increase the performance of the
countries by following the sets rules and regulation without delaying the process of trading
between different countries. country needs to control corruption of its economic to avoid missus
of resources available with them. Government should make policies to help its economy to
increase the revenue from time to time. Their should be financial service industry which provide
services related to money, for money and with money. This will helps economic to be self
sufficient in overall performance of the organization at global level. To reduce the impact of
global business , government should make us of renewable goods in the market which will helps
in retaining the natural resource for further generation (Evans and et. al., 2017). Countries should
make proper use of available resources and human resource to increase the performance of that
country. Their should be good cross -cultural management between the different countries, to
have better understanding about the work culture ethic and standards.
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Chapter 3: Research Methodology
Research methodology is the potential thought of a researcher is to recognise suitable tools
of research technique in regard to helping the general investigation activity in accurate way to
coming to at the key results (Fernie and Sparks, 2018). This is the most basic piece of an inquiry
which help the higher importance in the utilization of appropriate procedure to help the work in
right way, along these lines this segment depends on numerous applications wherein some are
related with the work and suitable in assisting the investigation over the area of identifying the
benefits and drawbacks of a global business environment, few are described as under:
Type of Investigation:
In carrying out of a research the essential worry of the investigator is to choose the most
reasonable kind of research in regard to help the work in right way, in this way, investigation is
fundamentally of two sorts, like wise qualitative and quantitative research methods (Fraj, Matute
and Melero, 2015). In the existing examination work, qualitative investigation is mainly
practically implemented by the investigator as it is well suitable for conducting detailed analysis
over the area of identifying the the benefits and drawbacks of a global business environment over
the operation and progression of an organisation, Along with this, qualitative method is powerful
in directing in-depth assessment by examination of human observation and perception.
Research Design:
Research design is also a suitable area of an investigation work thus this recognise as the
blue print of the research and helps the investigation in implementation of activities in accurate
way, therefore, this segment is fundamentally founded over three aspects i.e. descriptive,
exploratory and experimental investigation design (Gillespie and Riddle, 2015). In the existing
research area, descriptive research design is mainly implemented by the investigator as it is
effective in providing support through elaborated evaluation on the area of identifying the
benefits and drawbacks of a global business environment over the success dealing of a business.
Research Approach:
This is additionally perceived as the other central part of investigation technique as it is
powerful in helping the researcher to pushing forward in right way to coming to at a possible
result, Therefore this area is mainly handing over deductive and inductive investigation
approach, thus the choice of approaches dependent on the type of research tool (Gutierrez,
Boukrami and Lumsden, 2015). In the existing examination activity inductive methodology is
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the most appropriate tool for decisive the data supported over identifying the benefits and
drawbacks of a planetary organisational environment over the maturation of an organisation,
therefore, inductive methodology is generally reasonable for qualitative research and the present
exploration depends on qualitative investigation as inductive methodology is mainly effective in
assisting the work in right manner via the significant support of theories and hypothesis.
Data Collection tools:
Information assortment is the key viewpoint which is requires to be considered by the
scientist as to accumulate practical and significant information. This portion is generally wraps
over primary and secondary source of information collection. Primary research is appropriate in
gathering information through the support of questionnaire, survey, interview, focus group etc.
On the contrary side secondary tool is incredible in making detailed base investigating data
through books, journals, published research articles, etc. In the present examination work both
the sources are applied by the analyst, in this manner these two are viable in helping the general
work in right way to coming to at the key result (Hair Jr and et. al., 2015). Accordingly essential
research is being led through the help of survey, consequently this is generally important in
social event data from the more extensive populace and furthermore compelling in giving point
by point examination. On the opposite side, optional examination is successful in directing
writing survey by means of the help of books, diaries, articles and so on. Along these lines, this
part is viable in building up the comprehension of the scientist of student towards the picked
branch of knowledge.
Sampling:
This territory of assessment is of ordered among probabilistic and non-probabilistic
testing; thusly, sensible assurance of research is required to help the work in right manner. In the
present research work, information is being assembled by arbitrary testing as in this individual
are arbitrarily select for amassing of data (Hamilton and Webster, 2018). Test size for this
specific examination is 30, as it is successful in helping the work in right way to coming to at the
key outcomes and result.
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Chapter 4: Data Analysis and Interpretation
Data Analysis is the imperative portion of an investigation as it is effectual in identifying,
accumulating and examining the data in effective manner. In the existing inquiry data has been
analysing via the support of thematic analysis as it is most effective tool for analysing the
information in effective manner (Hanson, D., Hitt, Ireland and Hoskisson, 2016). Thus, this
approach is effective in effectively analysing the data over the study of identifying the benefits
and drawbacks of a global business environment over the operations of an organisation.
Frequency Table:
Q1) Are you aware about the concept of global business environment? Frequency
Yes 28
No 2
Q2) According to you global business environment is effective for a business
to attain growth and success?
Frequency
Yes 26
No 4
Q3) Do you think that, suitable global business environment is suitable for
Nestle for attaining growth at global level?
Frequency
Agree 27
Disagree 2
Neutral 1
Q4) Which kind of influence does globalisation has over the operations of
Nestle and its worldwide operations?
Frequency
Positive 25
Negative 2
Neutral 3
Q5) What are the key benefits of global business environment over the success
of an organisation?
Frequency
Business opportunity enhancement 15
Diversified market 5
Greater Access to talent 5
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