Regent College: Business Environment Report on Nestle

This report offers a comprehensive analysis of Nestle's business environment, focusing on various aspects critical to its operations and success. The report begins with an introduction to the business environment, defining its internal and external factors and their impact on a firm. It then delves into the specifics of Nestle, a food processing organization based in the United Kingdom, and explores different organizational types, sizes, scopes, and legal structures. The core of the report examines the interrelationship between various organizational functions, such as marketing, human resources, finance, operations, and research and development, highlighting how these functions contribute to achieving the company's objectives. The report further analyzes the positive and negative impacts of the macro environment on Nestle through a PESTLE analysis, covering political, economic, social, technological, legal, and environmental factors. Finally, the report utilizes SWOT analysis to identify Nestle's internal strengths and weaknesses, as well as external opportunities and threats, providing a holistic view of the company's strategic position and challenges.

BUSINESS
ENVIRONMENT

Table of Contents
INTRODUCTION ..........................................................................................................................1
TASK 1............................................................................................................................................1
Covered in PPT...........................................................................................................................1
TASK 2............................................................................................................................................1
P3 Relationship between different organisational functions and they link to objective.............1
TASK 3............................................................................................................................................4
P4 Negative and positive impacts the macro environment.........................................................4
TASK 4............................................................................................................................................6
P5 External and internal analysis of organisation.......................................................................6
P6 How weaknesses and strengths interrelated with external factor .........................................8
CONCLUSION ...............................................................................................................................9
REFERENCES .............................................................................................................................10
.......................................................................................................................................................10

INTRODUCTION
Business environment is defined as a combination of external and internal factors that put
their direct or indirect impact on firm’s functions. These factors can affect the success, growth
and development of enterprise in an effective manner. Nature of the business environment is
uncertain, complex and dynamic as there are different variations which can be occurred on a
regular basis. This report is based on three organisations such as private, public and voluntary
sector such as ASDA, Nestle and NGO. All businesses play an essential role in order to provide
healthy and friendly environment to their workers. Main aim of this project is to identify the
macro and micro aspects to company effectively (Babatunde and et.al., 2012). This assignment is
mainly based on Nestle that is a food processing organisation based in the United Kingdom. This
report will highlight different types of organisations with their size, scope and legal structure.
Relationship between different organisational functions will also be shown here. Apart from that,
strengths and weaknesses which are interlinked with the macro factors will also be described.
TASK 1
Covered in PPT
TASK 2
P3 Relationship between different organisational functions and they link to objective
There are various types of functions which is performed by the organisation with the
purpose of achieving desire and long term objectives in a specific time period. All those
functions are connected with the purpose and aims of company. All those are considers as a best
activities and function which are supportive as well as beneficial in accomplishing targets in a
particular time. Various functions of Nestle are marketing, human resource, research and
development, finance and operations etc. All these are plays essential roles in the success and
development of company. For the aim of increasing sales or revenues, structure of the
organisation is very supportive which assist managers in order to perform their own
responsibilities and roles effectively (Bansal and et. al., 2012.). One of the main purpose of
company is to enhancing satisfaction, sales, survival and profit level by fulfilling customers basic
needs. There are certain functions which are interrelated with each other are as follows:
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Il
lustration 1: Organisational structure
(Source: Organisational structure of Nestle, 2017)
Human Resource: In the each and every organisation human resource is very important and
main person of the business success. Main role and responsibility of HR is to recruit and select
knowledgable or talented person who can easily achieve long term and desire objectives and
goals in a specific time period. Human resource of the Nestle company is to mange and control
entire activities and functions of firm in an effective manner (Carroll and et. al., 2014). They are
able to promote their employees regrading its working by giving effective training and
development programs. With the help of this, they can communicate with their employees about
business functions and operations.
Finance: They are also main part of the business entity which plays vital role in order to
analysing the resources. This support in identifying the financial position in the place. In the
company, main role of this section is to recognise different internal and external factor of funds
such as friends, relatives, banks and other essential factors. With the absence of this department
business entity can not do their all activities and function systematically. So this are important
part of the company success and development.
Operations: This department help of the employees and employers in order to provide
motivation tools to them (David and Fred, 2011). Motivate person do their all works or functions
in given time period which is profitable for the company. In this business, they produce quality
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products and creative services to their customers as per their needs and wants. So in this, they
can easily fulfil customers demands which output is higher profitability and productivity. In the
Nestle, there are large number of the employees are work together with the motive of achieving
common goals.
Research and development: In the company, main role of research and development department
is to investigate market trends and actual demands and wants of the customers. Company
conduct research in order to knowing about the market strategies and product demand.
Marketing department: This section is very important and essential part of the business success,
development and growth (Fernando, 2011). There are different number of the employees are
work with each other and they require effective training and development sections. So they can
attract this programs and increase their basic knowledge and skills on particular subject. They are
capable to communicate with their customers in an easy manner. With the help of this
department company provides different tools and techniques such as promotions, advertisement,
publicity and public relation in reds to aware the buyers about business products, services,
policies and other necessary informations.
There are mainly four types of organisational structure which are determine under
this:
Function Based: It is a common part of the organisation structure which is very
important that identify the employees position as per their work. In this all members are grouped
regrading to the specialisation locations. Person are supervised is a employer who is able to
understand utilisation of workers knowledge and skills through which Nestle can easily attend its
objectives and goals.
Geography Based: It is known as a reporting system and structure which is used by
different industry such as retail, food and hospitality (Gilboy and George, 2016). It is beneficial
for those business which offices are placed on international and national.
Product organisational structure: It is mainly classified towards the operations, projects and
products of business. It will allows by the company in order to emphasis on particular
products as well as enhancing its goods quality. All products of the company is lay on
organisational structure which assist in rules of flexible working atmosphere at workplace.
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Customers based: This structure is mainly focuses on completing buyers wants and needs
in an efficiency manner. Main aim is to give higher fulfilment to clients by producing value
added and qualitative goods for customers.
TASK 3
P4 Negative and positive impacts the macro environment
In the environment, there are mainly two types of the factors are considered which effects
on decision-making process and organisation. They are classified into external and internal parts
that helps the company in order to increase their sales or revenues in an effective manner
(Hadjiconstantinou and Eleni, 2012). With the help of PESTLE analysis business entity can
identify their macro and micro in an effective or efficient manner. It will includes political,
environmental, social, technological, economic, and legal factor which have positive and
negative effects on business operations and its functions. All these are determine under this:
PESTLE Analysis:
Political: Nestle serve their products and services in some countries. The regulations and rules
set by legal authority are different in various regions. Company mainly emphasis on these factor
like import export, taxation, government permission and excise duties in order to exist in to
target market as well as introduce hygiene goods which allowed by regime.
Positive Negative
 Effective policies and plan of action are
beneficial or useful for the Nestle.
 Stability of legal authorities which is
also essential for the business entity.
 Instability of legal government in one
of the negative effect on business
organisation.
 Daily basis variation in government tax
rates and policies effects on decision-
making process of company.
Economic factors: Various countries have certain level of division. In this nestle has to set their
various economic policies and plan of actions for various targeted section. Product price is very
essential decision or judgement to take their policies in an effective manner (Hamilton and et. al.,
2015). Policies of economic which is based on the buying power and inflation rate of the
segments.
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Positive Negative
 Higher buying power and preference of
buyers will effects on business in a
positive manner.
 Enlargement of business functions and
activities.
 Diminution in economic growth and
success of country.
 In 2008. person are not capable to
spend different amount on beverage
which decrease profitability and
productivity of company.
Social: It is very important and essential factor which is define buyers beliefs and thoughts that
influence the operations and functions of business (Harrison and Rosemary, 2011). In this
considers variation in demographics, lifestyle, labour and social mobility etc. Ageing population
changes in the demographics which can effects on the Nestle in order to evaluate entire factors
for decreasing affect in a systematic manner. It is very necessary and essential to company in
order to supply their goods or services as per the buyers tastes.
Positive Negative
 In involves latest and social trends as
well as continuous variation in
lifestyles.
 It will maximise the disposable place of
the business operational geography.
 Rapid variations in clients wants and
needs.
 In the case of business entity that will
not upgrade and rise its infrastructure.
Technological factor: It is very important and essential part of the business entity and their
employees who are work in the organisation. There are large number of the members are work
with each other but some persons do not have knowledge about advanced technology (Mahmood
and et. al., 2013). It is responsibility of the manager in regards to upgrade their technology which
can create the positive effects in the buyers mind.
Positive Negative
 Reduce cost and time of the business
products.
 With the help of advanced technology
 Obsolete and accurate technology
effects on business functions and
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business organisation do their financial
transaction effectively.
activities.
 Fast variation in technology, in this cost
of the products will be maximised.
Legal factor: Nestle follow entire rules and regulations which are regulated by the legal
authorities of UK. In this, business understand its rights and duties in order to fulfil basic
requirements of the buyers (Moutinho and Luiz, 2011). In this factors certain aspects are
involved such as taxations, competitive and employment law. It is important and essential for
this entity in regards to select all legislation effectively.
Positive Negative
 Legal authorities should implement
effective policies and regulations, due
to this wrong or unethical practices
automatically decreased.
 It is very helpful and beneficial for the
company in order to do their all
activities without any issue.
 Enhance or intensify in regulatory and
regime demands.
 Legal system and regulation of country
of economy do not be appropriate then
any other business do not take their
own interest.
Environmental factor: This aspects includes different issues or problems like maximising the
flooding and storms, enhancing temperature and other ways (Onetti and et. al., 2012). In a
delivering products time which is necessary for the organisation to take care regarding these
factors as well as try to decrease them.
Positive Negative
 It is very essential part for organisation
to check conditions of environment, so
that product will be supplied on time to
time.
 Development of natural resources.
 It will create the negative effects on the
business operations and activities.
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TASK 4
P5 External and internal analysis of organisation
In order to identify internal and external factors of the company, they mainly follows
SWOT analysis in an effective manner. Strength and weakness of the business entity known as
internal factor (Wetherly and et.al., 2014). On the other hand, threats and opportunities of the
company is define as external part of the firm. It is very necessary and essential part of the Nestle
to analysis their compositors and better opportunities in order to expand their activities and
function in national and international market.
Illustration 2: SWOT Analysis
(Source: What SWOT Analysis is in simple words?, 2017)
SWOT Analysis of Nestle:
Strengths Weaknesses
 Unmatched development and research
capability.
 Unrivalled brand and product portfolio.
 Nestle has strong and big relationship
with their retailers.
 It is highly-classified business
operating and ruining in various sectors
and markets.
 Criticism over big anti-unionism,
selling contaminated product and water
usage etc. all these are unexpected child
labour as well as using other wrong
practices.
 In the organisation, there is maximum
cost for establishing innovative brand
and product to supplement older.
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Opportunities Threats
 Accurate and clear labelling indicating
or showing of any harmful goods.
 Growing and increasing number of few
silicon Valley suited food start-ups.
 Growing or increasing Ready-to-drink
coffee and tea markets.
 Poor quality in water and their scarcity.
 Maximised competition in the food and
beverage industries.
 Coffee beans price is significantly fall
related to main weather disasters.
 There is high pressure from big
retailers like Walmart to cut product
prices.
P6 How weaknesses and strengths interrelated with external factor
In Nestle all functions and activities are runs in an important and effective manner for
attaining long term objectives and goals of company. In this, each and every functions of
organisation is interrelated with each other in order to maximising the business products sales
(Onetti and et. al., 2012). Internal such as SWOT Analysis and External such as PESTLE
Analysis are connected with each other which are determine under this in detail manner:
Political sector: In this, legal authorities of UK create other legal system and policies in the
context of organisation. On the other hand, inappropriate policies will case the burden of the
business entity that will be increased in an effective manner. Unmatched development and
research capability highly effects the business development.
Economic factor: In this economic situation of the country that will presented, it is not better for
the company because it negatively effected on them. In this interest, deflation and inflation rates
etc. are highly impacted in business products. If company operates their business activities
which reduce entire burden on the organisation.
Social factors: Nestle is a food processing industry that complete their buyers needs by
providing quality products and services. In this situation, business entity do not supply their
products as per the buyers taste and preference then it will create negative effects on company
(Harrison and Rosemary, 2011).
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Technological: Innovative and advanced technology support the business in order to run their
activities and functions in a systematic manner. It will make the better relation and positive
imager in the customers mind (Babatunde and et. al., 2012). Advanced technology maximise the
business effectiveness and efficiency as well as avoid the burden.
Legal factors: Various types of regulation and legal system are created by legal authorities of
UK which company has to execute in a proper manner. In this, Nestle follow entire regulations
that will gain the buyers trust in order to increase business sales.
CONCLUSION
As per the above mentioned report, it can be concluded that importance of business
environment. There are mainly three types of the organisation such as private, voluntary and
public sector which plays essential roles in giving healthy environment to customers. All these
are has their size, scope, stakeholder and objectives in regrades to develop effective and friendly
atmosphere to the potentials and target customers. Structure of the organisation which is
interrelated with their objectives and all are plays vital role in growth and success of the business
entity. SWOT and PESTLE analysis of the company are interrelated with each other that define
the company development in an effective manner.
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