Comprehensive Analysis of Nestle's Business Environment and Operations

This report provides a comprehensive analysis of Nestle's business environment, focusing on the external and internal factors impacting its operations. It begins with an introduction outlining the company's objectives and mission, followed by a detailed examination of different organizational structures such as partnerships, sole proprietorships, corporations, and franchising, with a specific focus on Nestle as a corporation. The report delves into Nestle's interactions with various stakeholders, including suppliers, creditors, investors, and consumers, emphasizing the importance of meeting their needs. It then explores economic systems, fiscal and monetary policies, and their impact on Nestle's strategies. Furthermore, the report analyzes market structures, including perfect competition, monopolies, monopolistic competition, and oligopolies, and how these influence Nestle's market positioning. It also examines the role of supply and demand, consumer preferences, and effective communication in the company's decision-making processes. Finally, the report discusses the impact of both internal and external business environments, including social culture, rules, and regulations, as well as mergers and acquisitions on Nestle's overall performance and objectives.

Business Environment

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
1.1...........................................................................................................................................3
1.2...........................................................................................................................................4
1.3...........................................................................................................................................5
TASK 2............................................................................................................................................5
2.1...........................................................................................................................................5
2.2...........................................................................................................................................6
2.3...........................................................................................................................................6
TASK 3............................................................................................................................................7
3.1...........................................................................................................................................7
3.2...........................................................................................................................................8
3.3...........................................................................................................................................9
TASK 4............................................................................................................................................9
4.1...........................................................................................................................................9
4.2.........................................................................................................................................10
4.3.........................................................................................................................................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Trade climate is a mixture of both external and internal factors that affect the functions
and the operations of the business including the employees, consumers, management and the
business regulations. Protection of the environment is necessary and all the responsibilities
should be assigned or shared between the public, government and the private sectors. In the
current analysis the summary is focused on Nestle which is a food and drink company based on
Swiss transnational (Kubasek, Brennan and Browne, 2016). The main aim of the firm is to
provide the consumers with the best taste and the most nutritious choice in the wide range of
food. The report contains the different purpose of the different type of organisation and to meet
the objectives of the entity what are the strategies to be followed. Along with this impact of the
competition policy in the business has to be discussed.
TASK 1
1.1
In the present era, there are different entity having the different purposes exist in the
environment which have their own values, missions and the objectives. Different organization
includes partnership, sole proprietorship, corporation and the franchising. Partnership is that
business which is done between two or more persons and based on the partnership agreement. In
attaining the success company wants the person and the proper resources which help financially
in attaining the goals and objectives. Along with this entity can attain the success and growth.
Sole proprietorship is the type of the business which is owned by the single person. It is the most
easy type of the business to start up and it is not costly (Klapper, Lewin and Delgado, 2011).
Corporation is that type of the business organization which is owned by the shareholders and
having the separate entity. The company has to issue the shares so that resources can be
increased. It is a large organisation so the resources should be needed more for the betterment
and by that company grow their business and helpful in attaining the targets. Franchising is that
type of business in which person takes the permission from the higher authorities of the company
for selling then products of the firm and for that the person has to pay high cost. So, Nestle is the
corporation which is public limited and helps in attaining the huge market and have to provide
the best quality products which help in increasing the sales. Also maintain the quality of the

products for the betterment of the entity so that consumers purchase more goods and satisfaction
level of the consumers increases by that company can cover the market and can attain the goals.
1.2
Nestle is a firm which sell the food products to the consumers. The company having the
large number of the staff members which are working in the organisation so it is necessary and
important for the Nestle to make all the required tasks and maintain the quality of the products so
that consumers purchase many products so that it can be prove better for the company that firm
covers all the task and make the products according to the demands of the consumers (Aterido,
Hallward-Driemeier and Pagés, 2011). In the market high competition is there and in this many
suppliers are present by which company purchase the raw material to make the better products
and the company has to give the payment on time. After making the payment to the suppliers
they can make the products with the best quality and attain the targets which are set by the higher
authorities. In this creditors are included in this and the corporation have to keep in mind that
they have to make the payments with the interest so that they can not face any problem. When
they provide the proper payment then Nestle can create the goodwill in the market. In this
investors are also included which is also a part of the corporation so that they can attain the
maximum funds. It is the responsibility of the company that they have to fulfil all the
requirements so that they can attain the success. Consumers also the main part of the business as
it is included in important factor which helps in attaining the targets. They have to satisfy the
demands of consumers so that the company can establish itself in the market in the more efficient
way and the consumers are a king of market (Moutinho, 2011). Nestle has to provide the proper
attention on shareholders of the company in providing to the interest so that they can easily lend
the money and that interest will be protected.
1.3
To attain the profits and to generated the revenue are some of the objectives of the
organization. Administration, laws and the environment culture are some of the responsibility of
organization. For attaining the objectives of the organization has to produce healthy product
which satisfy the customer demand. All the operational and financial activity are to be identify
in the organization.
Towards the ethics –For the collaboration of entity company has to follow social responsibility
framework. Export and import of product should be facilitate for international trade facilitation.

Towards the environment –All the natural products are to produce by
company for healthy human consumption. By meeting the needs of
consumer company can attain its objective.
Task 2
2.1
Production, allocation and the distribution of the products are some of the function of
economic system.
In order to increase the performance of the products in the market and maintain the stability of
the goods this system is quite useful. Traditional, command, market and mixed economic system
are some of the economic system. In framing the duties of the employees in the organization the
traditional system is quite helpful. One of the risk free technique is public networking. To
monitor the functions of the production and distribution the government has to play an
important role. By improving the quality of the product company is able to allocate all resources.
For achieving the higher profits and revenue generation are some of important factor of
economic system. The allocation of resources is implemented on the basis of demand and supply
factor. All the decision regarding the production and distribution are to be taken by single entity.
Command and the market economic system are some of the factor of mixed economic system.
This economic system is used in the public and the private sector for allocating the resources in
the different level. From the performance point of view and for making the higher profits the
organization has to use mixed economic resources for the accomplishment of objectives. Thus it
ensure stability and performance in the organization structure.
2.2
Tax rate and level of standard are some of the factor which are essential in fiscal policy
structure. Fiscal policy is being undertaken for reducing the expenditure of public and for
making tax reform. If tax rate is high then low investment is introduce by the company and if tax
rate is low then then huge investment is introduce by the company for expansion purpose.
To control the supply of money, inflation rates and interest rates are some of the factor
of monetary policy. The supply of the money and interest rate which increase the cash flow of
the entity at the high rate of the interest is quite effecting the economic policy.
The company can attain its goal and objective by granting the lower interest rate in the long run.

The policies and strategies of the firm have positive and negative effects regarding the
decision making process.
2.3
For achieving the higher revenue different policy, procedure are to be design from time to
time. Different customer in the organization gets the product at a reasonable price. New products
are being introduce in the market for successful operational of business.
Various policy and procedure are adopted in the industry, through which higher amount of
revenue is generated. Nestle has to produce the good quality of the products so that satisfaction
level of the consumers should be increased. On the basis of the quality and the price various
regulation are to be framed from time to time. The decision making power of company is
effected by demand and supply forces. The economic system of the firm is strengthen by demand
and supply forces. Consumers wants innovative products to be develop in the competitive
market.
TASK 3
3.1
Proper production of goods and service should be operated in the organization market. In
the market large number of buyers and sellers exist in the organization market. The different type
of the market are effected by the price of product, quality and market territory. Different type of
markets are :-
Perfect competition market – In this large number of buyers and sellers are exist and along with
them price taker is having the control on market.
Monopoly –There is only one single seller in the market because of which maximum profit is
achieve.
Monopolistic – Many types of buyer and seller exist in the market so there huge competition
among them for attaining their goals and objective.
Oligopoly – There are few seller and many buyers in the market so there is mutual
interdependence among them.
There is proper communication and coordination among the shareholder so that they is
no entry and exist happen in the new market. On the basis of price of the products and services
the company is facing many competition in the market. Nestle having the perfect competition

market through which the firm sells the good and services at a reasonable price because high
competition is ensured in the organization. Proper goals are set for achieving maximum profit.
3.2
For the product development and distribution various forces play an important role in decision
making . For improving the performance various decision are to be taken from time to time.
Due to the high competition in the market company, Nestle follow the different forces which
includes the demand and supply of the products to the consumers. When the consumer wants the
new and innovative product then the company has to produce the goods which is demanded by
the customers and then firm has to sell the products so that sales of the product should increased
and Nestle attain the high profit. Elasticity of the demand means demand and supply off the
product should be equal otherwise company will get in loss so the demand of the products by the
consumers and the supply of the product should be equal so the company attain the leading
position in the market. According to the taste and preferences company has to produce the goods
and services so that satisfaction level of the consumers should be increased and along with this
purchasing power of the customer also increased. Effective communication should be done
between the sellers and buyers (Nishitani and et.al., 2012).
Nestle follow the various policies for the betterment of the company different policies are
to be used such as fiscal, monetary etc. so that company can gains the positive response for
attaining the goals. For the increase in the production and the operation of the company first firm
has to find out the demands of the products and then only produce the goods so the demand and
supply should be equal with the price mechanism then only Nestle can attain the leading position
in the competitive market.
3.3
Internal and external are some of the factor of business environment which affect the regular
operation of business. There is strong correlation between internal and external environment
which effect the operation of the entity. Nestle has to manage the social culture and to maintain
the rules and regulations of company. Through merger and acquisition various changes in laws
effects the taste and preference of the customer.
In executing the advantages of the company play an important role in business environment.
For attaining the advantage some of the principles are to be adopted for maximum utilization of
the resources in the entity . Principle are maximum utilization of resources.The safe and

qualitative products for the consumers, firm has to make effective relationship with the
stakeholders, in the competitive market, proper communication should be done between the
buyers and sellers . Along with this company has to conduct the training and development
program for the staff members of the company so that all the products should be made of good
quality and good working environment should be available to all the staff executives.
TASK 4
4.1
The international trade was able to increase the market share Of Nestle ltd which has increase
a number of opportunities so that the firm can attain its objective in terms of growth in the
international market and is able to reduce the production costs.
There is a opportunity in the UK market to increase the production of goods and service with
the quality purpose. There should be proper exchange of goods and service in the domestic and
international market. In international trade goods and service are adversely effected in the
market. For domestic and international market price mechanism play an important role in
competitive market. There should be proper integration between all the policy in the
environment. To reduce the competencies, various policy are to be implemented in the
environment.
4.2
Various factors of economic sector are effected by international trade . International
factors are divided into two parts that is micro and macro factors. Micro factors are the internal
factors which can be controlled by the enterprise. Macro factors are the external factor which
can not be controlled by the entity.Macro factor can gives positive and negative feedback on the
company. Some of the factors which are effecting the Nestle Ltd are :
Technological –Rapid change in technology should be adopted for successful growth of
company. Huge amount of investment should be introduce for such purpose. Various technical
measures are to be undertaken for such purpose.
Economical – Supply of money , currency notes are some of the fiscal policy of company which
effects the company policy. These factor effect the stability of company which help in reducing
the cash flow of company.

Social – Purchasing power of consumers are effected by demand and supply factor in the
company which is directly effecting the social economic sector.
4.3
From company point of view, number of policy are to be design from time to time. For
proper supply of goods and services, improvement in the products and service are essential for
attaining the organizational objective. From any kind of negligence in the organizational
climate, Consumer can claim the compensation. European money union is the concern authority
which gives permission for starting the business in UK. European Union design some policy and
procedure which are to be followed by organizational. For attaining higher profit the company
has to frame such policy. Employment, inflation rates, taxation rate, training and development
are some of the policy of company for the growth and expansion. All the laws, rule and
regulation, policies are to be followed by European union so that operation of company
becomes more flexible. For successful operation of business profitability and market share are
quite essential features of the Company .The organization can achieve its goal and objective with
the use of such policy. By attaining the higher profit the company can maintain the brand
image of the company.
CONCLUSION
It has been concluded that company has to adopt the different policies and procedure to
control the tax rate so that they can attain the maximum profit. For attaining the objectives and
goals company has to adopt different marketing policy and procedure. Nestle use the perfect
competition market because in this free entry and exit and have a large numbers of buyers and
sellers are there so that competition can increased and the sales of the products should be
increased and the firm has to sell the products at a reasonable price.