Nestle: Analyzing Business Environment, Strategies, and UK Impact

This report provides a detailed analysis of Nestle's business environment, covering various aspects such as the purposes of different types of organizations, objectives of stakeholders, and responsibilities of the company. It examines how economic systems allocate resources effectively and assesses the impact of fiscal and monetary policies on housing and farming. The report also evaluates the impact of competition policy and other regulatory mechanisms, explaining how market structure determines pricing and output decisions. Furthermore, it explores how market forces and the business culture environment shape organizational behavior. The significance of international trade to UK organizations is discussed, along with an analysis of the impact of global factors and EU policies on UK enterprises. The report uses Nestle as a case study to illustrate these concepts, providing insights into how the company navigates its business environment to achieve its goals and maintain sustainability.

BUSINESS
ENVIRONMENT

Table of Contents
TASK 1.......................................................................................................................................................3
1.1 Purposes of different types of organization........................................................................................3
1.2What are the different types of objectives which meet by the firm.....................................................4
1.3What are the responsibilities of the organization which need to be accomplish by firm.....................4
TASK 2.......................................................................................................................................................5
2.1 How economic system can help to allocate resources effectively......................................................5
2.2 Assess the impact of fiscal and monetary policy on housing and farming.........................................6
2.3 Evaluate impact of competition policy and other regulatory mechanism...........................................6
TASK 3.......................................................................................................................................................7
3.1 Explains how market structure determines........................................................................................7
3.2 Ways in which market forces can shape organizational response......................................................8
3.3 How business and culture environment shape the behavior...............................................................9
TASK 4.....................................................................................................................................................11
4.1 Significance of international trade to UK organization....................................................................11
4.2 Analysis the impact of global factors on UK...................................................................................11
4.3 Impact of EU policies on the UK enterprise....................................................................................13
CONCLUSION........................................................................................................................................13
REFERENCES........................................................................................................................................14

INTRODUCTION
Business environment play a very important role to make success within the enterprise. It
determines various activities such as production, purchase and extraction to develop enterprise
functions. Environment consist various things that are surrounding the organization and create
impact on operations (Kor and Mesko, 2013). Present report is based on Nestle which is a Swiss
transitional company and deals in different types of food products. Headquarter of this firm is in
Switzerland and they are providing products and services in different areas.
In this context, report covers purposes of different types of organization. Furthermore, it
covers it also includes objectives of different stakeholders which can be meet by the company in
effective manner. Moreover, it also demonstrate responsibilities of the chosen enterprise towards
the different stakeholders. In addition to this, report illustrate ways which can shape to the
business environment. At last, it evaluates impact of EU policies on the UK enterprises.
TASK 1
1.1 Purposes of different types of organization
There are different types of business which possess different purposes for operate functions.
They are as follows:
Public sector organization: Public sector organization possesses important role which has
purpose to enhance customer lives and protect them from different activities and results
which can be support from public welfare at workplace (Van Horenbeek and Pintelon, 2014).
Charity business: Charity business working for help poor and needy people. Their main aim
is to protect people who are suffers from poor lives and provide them shelter and food.
Hence, the business can grow operation for save their lives in effective manner.
Cooperative business: Cooperative business has main aim is to increase profits and market
share of the company to enhance their profits within the market (Amore and Bennedsen, 2013).
In this type of business various people are working together so that company will achieve
profits in effective manner.

1.2What are the different types of objectives which meet by the firm
In Nestle, there are different stakeholders are take place which has effective objectives.
Stakeholders perform different activities through they will easily achieve goals and objectives.
They are as follows:
Employees: Employees are working within Nestle to get wages on time and healthy working
environment. They are playing major role within the organization to demonstrate outcomes and
results through operate functions (Amore and Bennedsen, 2013). Hence, the cited firm need to
provide those timely wages and positive working environment.
Customers: Customer has main aim is to get right product at low cost so that Nestle need to meet
with them through operating functions accordance with time. Hence, they can easily fulfil
customer objectives.
Government: Government has objective is to get taxes amount so that the chosen firm need to
meet with them through provide them taxes so that they can work effectively within the
organization.
Suppliers: In order to meet with suppliers objectives, the cited firm need to provide them timely
payment so that they can get raw material easily. In this aspect, they will easily manage their
results through business can achieve goals and targets (Kor and Mesko, 2013).
1.3What are the responsibilities of the organization which need to be accomplish by firm
In order to meet with objectives of different stakeholders there are various responsibility
which need to be managed by the company through operating functions. Nestle play very
important role to determine responsibility for each stakeholder at workplace. Hence, they can
meet with goals and targets in effective manner (Van Horenbeek and Pintelon, 2014).
Satisfying stakeholder: The chosen firm has responsibility is to fulfil all stakeholders’
requirements so that they can cooperate with business easily. Furthermore, it will give
positive results through developing outcomes at workplace.

Customer satisfaction: When Nestle satisfy their customer, they can easily get loyalty of
them towards the business operations so that it assist to get profitability and developing
results through determines satisfaction.
Effective working environment: In order to maintain sustainability of employee, Nestle also
possess responsibility to provide them effective working environment so that they will easily
get right worker at right place (Amore and Bennedsen, 2013).
Payment of taxes: For government, the chosen business has also responsibility to provide
them taxes on time so that results can be maintain easily.
TASK 2
2.1 How economic system can help to allocate resources effectively
In different country, distinctive economic system possess through organization. Every
business also need to follow economic system in which they are possessing. Thus, resources and
output decisions are also taken accordingly. Following are different system take place within the
different nation:
 UK economic system: In UK free economy system take place through business can
determines their operations according to their convenience. In respect to this, they are
frame rules and regulations without any restriction so that company can achieve high
market share for each and every activity which can support to business in effective
manner (Amore and Bennedsen, 2013). To develop operations, it is very essential to adopt
economic system which make effective results through allocate resources.
 China economic system: China possess mixed economic system in which market demand
and government both play very important role within the business. In respect to this, they
can frame rules and regulations in which government and market both take equal part.
Further, it support to each activity of the organization which need to be monitor carefully
at workplace. In addition to this, the cited firm (Nestle) can cooperate with different
factors which need to be ascertain carefully at workplace (Kor and Mesko, 2013).
 Cuba economic system: In order to make decisions, Cuba possess command economic
system in which government take all rules and regulations to frame decisions. Hence,
they can easily support to each and every activity of the company which make positive

results. In addition to this, country can cooperate with different elements which can be
assess to create positive results.
2.2 Assess the impact of fiscal and monetary policy on housing and farming
Fiscal and monetary policy create major impact on each type of business. This is because,
it determines different rules and regulations to operate functions effectively by the enterprises. In
Nestle various activities are determines impact on company. Monetary policy is owned by
government in which they are supply to control on interest rates (Van Horenbeek and Pintelon,
2014). Prices of products can be create impact on the business operations so that it can be
generate effective results to operate functions in housing and agriculture sector. In this aspect,
agriculture sector highly impacted from fiscal policy. This is because, political conditions
depends on this system so that government introduce taxes, expenditure and many more things.
In this aspect, they are frames rules and regulations in which farming organization have to
working effectively. Hence, they can easily support to the company to give effective
participation at workplace.
In different nation distinctive system work in which government possess rules and
regulations in effective manner. Further, it is also impact to allocate resources effectively within
the organization so that business need to protect through following all rules and regulations.
Monetary policy is determines effective results through controlling on money supply on farming
and housing business. Thus, it is essential to conduct market research for ascertain impact of
monetary impact on the business operations. In respect to this, government increase their taxes
rates so that they will able to enhance revenue within the nations. From the help of housing
income, government can easily increase their revenue and sales through they will achieve
profitability at workplace.
2.3 Evaluate impact of competition policy and other regulatory mechanism
There are different types of competition policy take place which create impact on the
business operations. In UK it frames to determine competition which take important place for
development of the nation. Hence, Nestle can assess market for enhance their operations and
consider value for development. It also determine for monitor and analysis resources which take
place for developing operations and revenue of the company (Kor and Mesko, 2013). It includes
following competition policy which determines effective results on the business operations:

Fair trade act 1973
According to this act, Nestle deals with strategy of merger and acquisition. Thus, they
have to maintain their operations truly for create effective results. In this aspect, all operations
are fairly treated by the business so that they can achieve high market share and operate
functions effectively. In addition to this, in competition firm need to concentrate on fair and
equal system that can make support to each and every activity to demonstrate profitability at
workplace.
Restrictive trade practices act 1976
According to this act, company is restricted to compete fairly at workplace. Thus, it is
essential to demonstrate equal system within the business environment. In addition to this, it is
also comply with restrictive system which need to be ascertain for developing effective
operations and outcomes to enhance profitability at workplace. Thus, the cited company can
easily measure their performances which can be complete to developing outcomes (Van
Horenbeek and Pintelon, 2014).
Resale price act 1976
This act is frame towards the business when they are selling again same product and
services, thus, they have to put minimum efforts for this type of products. Less amount need to
be charged by the company for this types of products so that Nestle can maintain sustainability at
workplace.
The competition act 1980
According to this act, there are several rules and regulations which need to be comply
with competitive practices of Nestle Company. Hence, legal authority of UK always monitor and
review each activity to develop positive results and ascertain outcomes at workplace. In addition
to this, the cited firm requires to follows all rules and laws which are made by government so
that quality products of Nestle can be maintain healthy relations with many people at workplace.

TASK 3
3.1 Explains how market structure determines
Market structure are determines different types of demand and supply system for
operating system. There are different types of market structure are taken which are as follows:
Market structure determines important role within Nestle that determines pricing and output
decisions. There are different types of market structure are take place which are as follows:
 Perfect competition market: In perfect competition market structure, various buyers are
sellers are take place. They all have full knowledge regarding market so that firm can
deliver the best output and attract various customer towards the business. In addition to
this, buyers and sellers both have a lot choice to sell and purchase products. If Nestle
operate their function in this type of structure, they can attract various customer towards
the company. Thus, pricing and output decisions are based on market demand and
structure.
 Monopoly market structure: In this type of structure, only one company take place
within the market. Thus, they have choice to make price according to their own decisions.
When Nestle operate their operations in this type of structure, they can set high price to
make themselves market leader. Hence, it will assist to develop solutions regarding
market decisions. Hence, pricing decisions are set on the basis of particular business who
operate their functions within the environment (Kor and Mesko, 2013).
 Oligopoly market structure: Oligopoly structure determines where few organisations
are competing with each other. They all are sell same products and services within the
market so that it is also known as imperfect competition market structure. If Nestle
operate this system, Starbucks is the biggest competitor who operate their functions
within the market. In this type of structure, two firms take decisions regarding pricing of
particular product and services within the marketplace.
3.2 Ways in which market forces can shape organizational response
There are different types of market forces that can determines relations among supply and
demand. Nestle use different strategies through they will able to increase their operations in

different areas. Hence, the cited firm response towards market forces that creates impact on
profits and reputation of the business.
Supply and demand
Supply and demand take very important place which need to be ascertain to develop
outcomes of the company. Nestle operate functions effectively but they have to identify supply
and demand of the market which can be done through managing business activity and conducting
market research programs. In this aspect, they are handle situations for development of the
business operations which can be done through balancing between supply and demand (Kor and
Mesko, 2013). Thus, company can easily deals with managing operations according to
conducting results positively. It can give shape to the business environment through create
proper balance between demand and supply.
Identification of needs and requirement of customer
Further, Nestle need to operate their functions according to customer needs and
requirements. Thus, they have to conduct market research to develop functions effectively. In
this aspect, they can maintain results through development of customer needs and requirement
for managing activities and actions. In addition to this, it also assess requirement and desire of
customer so that the business can shape to their operations and outcomes which make
profitability and assess market in effective manner (Amore and Bennedsen, 2013).
Using of advance technology
With the help of advance technology, the cited firm can also support to each activity and
action effectively. This is because. Every customer want quick and effective services through
developing outcomes at workplace. Thus they can make solutions to ascertain results at
workplace. This is because, advance technology make effective and high profits so that firm can
make support to the company and operations.
Enhance supply
With the help of increasing supply, Nestle can create effective shape to their business
outcomes so that they will easily manage each and every activity which can be ascertain results
at workplace. In respect to this, chosen business can maintain their operations through targeting
different types of customer in distinctive areas so that they can also capture whole market
effectively (Van Horenbeek and Pintelon, 2014).

3.3 How business and culture environment shape the behavior
Business and cultural environment greatly create impact on the operations of company. It
determines economic and non-economic environment which assist to determine policies and
conditions at workplace.
Political factor
Political factors are those which frame by government to regulate rules and regulations
within the business environment. Every organisation have to work accordingly. For example,
government determines tax rates, expenditure and many more things that need to be followed by
the company, Nestle pat taxes to government for developing their operations and enhance
revenue. Political factor play a very important role to determine effective operations within the
industry. Hence, it assist to manage business results and relations with government (Doyle,
McEachern, and MacGregor, 2015).
Economic factor
Economic factor determines recession, currency exchange and inflation within the
country. Thus, Nestle create their operations and outcomes through determines impact from this
factor. According to this factor, the cited firm can cooperate with different sources which need to
be maintain according to plans and creativity. Hence, the cited firm need to maintain their
outcomes. It gives opportunity to the company for enhance their operations and results through
protecting outcomes.
Social factor
Social factor create major impact on the business to protect from changes which are take
place within the market. This is because, customer demand and taste are changed according to
time so that it is essential to overcome issues through ascertain results to overcome this issues
(Ferrell and Fraedrich, 2015.). Hence, Nestle can shape their organisation through conducting
market research program within the nation.
Technological factor
Technology factor also play very important role in success of every business. This is
because, every customer demanding effective product which are less cost and enhance
profitability at workplace. In respect to this, Nestle have to introduce advance and the latest
technology which can be done through providing effective product and services to customer.
Legal factor

Legal factors are determines rules and regulations which need to be followed at
workplace by Nestle. Thus, they can protect business environment from exploitation. There are
various rules and regulations which can support to each activity and goals of the company. Thus,
the cited firm can protect their employee and customer regarding business activity (Yee-Loong
Chong, Ooi and Lin, 2014). As results, it assist to give proper shape to business environment.
Environment factor
In order to make effective results within the organization, Nestle need to protect their
business environment. In this aspect, their activities never harm to each nature and environment.
Thus, business can shape their results and enhance profitability at workplace.
TASK 4
4.1 Significance of international trade to UK organization
International trade plays very important role within the business environment to protect
themselves to attain business results and overcome issues related with sales. In respect to this,
Nestle has various significant from operate functions in international market (Grabara, Modrak
and Dima, 2014). Further, it also provide opportunity to the business to enhance operations in
new areas. Hence, market share of the business and operations can be expand easily. It possesses
following significance to operate functions in international areas:
 It assist to reduce dependency of the business in domestic market so that the operations
can be expanded at international level.
 It also assist to expand the organization in new areas through they can achieve high
market share and revenue from different places.
 Market share of the company can easily increase which can facilitates to manage business
results through generating revenue and profits (Bocken, Short and Evans, 2013).
 The chosen organization can also adopt new technologies which can support to various
activities together so that they can attain profitability at workplace.
 International trade also helpful to attain profitability through enhance reputation of
company in front of customer so that business will achieve results.
 Nestle can also target different types of customer in new areas through they will achieve
high market share.
 It is also facilitates to the business through developing operations and outcomes.

4.2 Analysis the impact of global factors on UK
There are various factors that create impact on UK business (Onetti, Zucchella and
McDougall-Covin, 2012). Nestle operate functions effectively within the country. Thus, following
are factors generate impact on their operations:
Political factor
When the business operate their functions in international areas, there are policies and
budget take major impact. This is encourages to Nestle to operate their operations through they
will able to generate high income.
Economic factor
Economic factors affects to operations and activities of Nestle in term of interest rates,
inflation rate and many more aspects. Further, trade activities are of the consumer are related to
the organization so that the cited firm need to focus on their activities (Wilden, Gudergan and
Lings, 2013).
Social factor
The major focus on every customer so that it take important place so that the business
need to identify customer demand to operate effective functions. In addition to this, Nestle is
highly affected through customer perception so that they have to concentrate on customer taste
and preferences.
Technological factor
Advancement of technology aspect also generate major impact so that operations of the
organization need to be ascertain through different activities of the company so that it generate
major impact on the Nestle operations in effective manner (Rossi, Vrontis and Thrassou, 2012).
Legal factor
Legal factors determines rules and regulations which can support to the business
functions through following rules and regulations. Hence, it will protect the company for
enhance outcomes at workplace.
Environment factor

Due to changes in climate and whether, Nestle is highly affected so that it is essential to
cooperate with different elements that will support to each and every activity which are not harm
to business environment.
4.3 Impact of EU policies on the UK enterprise
European Union make rules and regulations regarding business operations in which
company need to work. Hence, the business need to work accordingly (Wetherly and Otter, 2014).
In respect to this, government determines different types of rules that are as follows:
 Employment policy: Government play very important role within Nestle to stimulate
employment within the company. Thus. It will encourages to the company to enhance
profitability through generating revenue and profits.
 Regional policy: At EU level, funds are available to make support to regions of high
employment and grow operations in effective manner. In this aspect, the cited firm can
develop more prosperous aspects which can generate profits (Welford, 2013).
 Inflation policy: Inflation policy is also frame due to prices are goes very high so that the
business can be protected through developing outcomes which need to be managed at
workplace. In addition to this, it also develop solutions to manage results at workplace.
CONCLUSION
From the above report it has been assess that different business possess distinctive
objective to operate functions in systematic manner. They are frame rules and regulations to
work on it in systematic manner, furthermore, it also includes different types of economic
structure which followed by the company to operate their functions. Moreover, report also covers
market structure on the basis on which the organization can achieve their outcomes and allocate
resources so that they will able to demonstrate profitability at workplace. In addition to this,
report describe that international trade is very helpful to operate functions in different areas of
the world.

REFERENCES
Books and Jourals
Amore, M.D. and Bennedsen, M., 2013. The value of local political connections in a low-corruption
environment. Journal of Financial Economics,110(2), pp.387-402.
Bocken, N., Short, S. and Evans, S., 2013. A value mapping tool for sustainable business
modelling. Corporate Governance. 13(5). pp.482-497.
Doyle, T., McEachern, D. and MacGregor, S., 2015. Environment and politics. Routledge.
Ferrell, O. C. and Fraedrich, J., 2015. Business ethics: Ethical decision making & cases. Nelson
Education.
Grabara, J., Modrak, V. and Dima, I. C., 2014. Sustainable Logistics and Business
Competitiveness. International Letters of Social and Humanistic Sciences. (26). pp.148-
156.
Kor, Y. Y. and Mesko, A., 2013. Dynamic managerial capabilities: Configuration and
orchestration of top executives' capabilities and the firm's dominant logic. Strategic
Management Journal. 34(2). pp.233-244.
Onetti, A., Zucchella, A. and McDougall-Covin, P. P., 2012. Internationalization, innovation
and entrepreneurship: business models for new technology-based firms. 16(3). pp.337-
368.
Rossi, M., Vrontis, D. and Thrassou, A., 2012. Wine business in a changing competitive
environment–strategic and financial choices of Campania wine firms. 8(1). pp.112-130.
Van Horenbeek, A. and Pintelon, L., 2014. Development of a maintenance performance measurement
framework—using the analytic network process (ANP) for maintenance performance indicator
selection. Omega, 42(1), pp.33-46.
Welford, R., 2013. Hijacking environmentalism: Corporate responses to sustainable
development. Routledge.
Wetherly, P. and Otter, D., 2014. The business environment: themes and issues in a globalizing
world. Oxford University Press.
Wilden, R., Gudergan, S. P. and Lings, I., 2013. Dynamic capabilities and performance: strategy,
structure and environment. 46(1). pp.72-96.

Yee-Loong Chong, A., Ooi, K. B. and Lin, B., 2014. Can e-business adoption be influenced by
knowledge management? An empirical analysis of Malaysian SMEs. Journal of
Knowledge Management. 18(1). pp.121-136.