Pearson BTEC HNC Business: Business Environment Analysis of Nestle

This report provides a comprehensive analysis of Nestle's business environment, focusing on the application of PESTLE and SWOT frameworks. The analysis identifies and discusses macro factors, both positive and negative, impacting the organization. The report delves into Nestle's key strengths and weaknesses, exploring their interrelationships with external factors. It critically evaluates the findings and assesses how the analysis influences the decision-making process within Nestle. The report also includes a reference list of sources used to support the analysis. The report highlights Nestle's strengths in areas like brand recognition and product quality. It examines how Nestle addresses its strengths and weaknesses to respond to external environmental factors, including political instability, environmental regulations, consumer behavior, and market trends. Overall, the report offers valuable insights into Nestle's strategic approach to navigating its business environment.

Business
Environment
Analysis
By
Unit 1 Business and the business
environment
30/10/19

Objectiv
es
⊙ PESTLE analysis
○ Identification and discussion
of the macro factors that
positively and negatively
impact the organization
⊙ SWOT analysis
○ Key strengths and
weaknesses of the
organization
○ Interrelationships of with the
external factors
⊙ Critical reflection and evaluation 2

3
PESTLE analysis of ‘Nestle’
Political Economical Socio-cultural
P
o
s
i
t
i
v
e
• Open to foreign
business
• Blockade in Qatar
• Positive sales • Attitude of people
• Changing behaviour
• Lifestyle
N
e
g
a
t
i
v
e
• Regulatory laws
• Political instability
• Rising cost
• Foreign exchange
swings
• Increase in diseases like
obesity.

4
PESTLE analysis of ‘Nestle’
Technological Legal Environmental
P
o
s
i
t
i
v
e
• Research and
development
• Marketing
• Compliance with food
and beverage laws.
• Compliance with
environmental laws
N
e
g
a
t
i
v
e
• Negative publicity and
news over social media
• Change of laws in
different countries
• Child labor
• Use of non-recyclable
products.

5
SWOT analysis of ‘Nestle’
Strengths Weaknesses
• Global presence
• Development and research capability
• Brand and product portfolio
• Efforts in terms of environment
sustainability
• Brand awareness
• Loyal customers
• Faced criticism because of selling of
contaminated food, child labor and other
unethical practices
Opportunities Threats/Challenges
• Transparency
• Accuracy in terms of product description
• Introduction of new products
• Increase in competition
• Use of water of poor quality
• Increase in the price of coffee beans

How
does
‘Nestle
address
strength
s and
weaknes
ses to
react to
external
factors?
⊙ Nestle has many strengths and
very few weaknesses and they
mostly encash their strengths
like their brand name, their
high quality products to
generate profits and revenues
in the market.
6

7
Critical evaluation of macro and micro impacts
on decision making
• Political instability
• Environmental and laws set by the company
• Behavior of the people
• Change in market trends

Referenc
e list
⊙
■ Aljazeera.com, 2019. Qatar Blockade: Five Things To Know About The
Gulf Crisis. [online] Aljazeera.com. Available at:
<https://www.aljazeera.com/news/2019/06/qatar-blockade-gulf-crisis-
190604220901644.html> [Accessed 12 March 2020].
■ Besley, T., 2015. Law, regulation, and the business climate: The nature
and influence of the World Bank Doing Business project. Journal of
Economic Perspectives, 29(3), pp.99-120.
■ Eruemegbe, G.O., 2015. Impact of business environment on
organization performance in Nigeriaa study of union bank of
Nigeria. European Scientific Journal.
■ Qatar-Tribune (2017). 70% of Qatar population either obese or
overweight. [online] Qatar-Tribune. Available at: http://www.qatar-
tribune.com/news-details/id/54297 [Accessed 3 Mar. 2020].
■ Rai, V. and Henry, A.D., 2016. Agent-based modelling of consumer
energy choices. Nature Climate Change, 6(6), pp.556-562.
■ TheGlobalEconomy.com (2018). Qatar Political stability - data, chart |
TheGlobalEconomy.com. [online] TheGlobalEconomy.com. Available
at: https://www.theglobaleconomy.com/qatar/wb_political_stability/
[Accessed 3 Mar. 2020].
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