Analysis of Nestle's Stakeholders: Influence and Interest in Business

This report provides a comprehensive analysis of Nestle's business environment, focusing on the identification and evaluation of its stakeholders. It begins with an executive summary and an overview of Nestle, detailing its functional areas such as human resources, technical and production, and marketing. The report then identifies both internal and external stakeholders, including employees, customers, government, and communities, and assesses their respective roles and influence. A PESTLE analysis is conducted to examine the political, economic, social, technological, legal, and environmental factors affecting Nestle. The report further explores the nature and degree of stakeholders' interests, including potential conflicts, and presents a stakeholder matrix to visualize their influence levels. A comparison between Nestle and Wal-Mart is also included to provide a broader industry perspective. Finally, the report concludes with an assessment of stakeholder influence and its implications on Nestle's strategies and brand values.

Business Environment
8/25/2019
Nestle company

Business Environment 1
Executive summary
The report majorly focuses on the stakeholder’s level as well as their influence on the
selected company which is Nestle. The functions areas of the company are identified at the
beginning which involves the different stakeholders. The identification of the internal and
external stakeholders has been done so that effective analysis of the stakeholders can be done.
In addition, findings of the report show that stakeholders majorly have major influence on
Nestle Company which affects the brand values bring the changes in strategies and options.
The nature, degree of the major stakeholders has been determined in the report with the
interest. The level of major stakeholder influence shows that government, customers and
others have high influence. On the other hand, communities, employees and other have less
influence. In the end, the differences in stakeholder influence and interest has been
determined in Nestle and Wal-Mart, a company that deals in different industry.
Content

Business Environment 2
s
Introduction................................................................................................................................3
Overview of Nestle................................................................................................................3
Functional areas of Nestle..........................................................................................................4
Internal and external stakeholders and their roles......................................................................5
PESTLE analysis....................................................................................................................5
Nature and degree of main stakeholders interests, implication of conflicting interests.............7
Level of major stakeholders influence.......................................................................................9
Stakeholder’s matrix................................................................................................................10
Compare the industry your business operates in with their industry.......................................10
Conclusion................................................................................................................................12
References................................................................................................................................13

Business Environment 3
Introduction
The aim of report is to assess stakeholders level of influence as well as degree of interest
related to the business. This analysis is major used to assess the relationship among the
dissimilar stakeholders and problems that they care about the most. It has been found that the
business stakeholder examination is a method for identifying the stakeholders as well as
analysing their roles. The company that has been selected for conducting the internal as well
as the external stakeholder’s analysis is Nestle. In addition, the report includes the nature and
grade of major stakeholder’s attention and the implication of the contradictory interest. The
stakeholder’s matrix has been created for the company which include the different
stakeholders that are performing the operations within company.
Overview of Nestle
Nestle company is considered as world’s largest food as well as beverage trade with more
than 339,000 employees, 442 factories in approx. 86 countries as well as the sales of more
than $130 billion in the year 2014. Nestle is a Swiss multinational company with food and
drink processing conglomerate corporation with the head office in Vevey, Vaud based in
Switzerland. In the year 1999, Nestle Australia’s head office converted formed for Oceania
region that consists of processes in the country of Australia, Pacific Islands and New Zealand
(Nestle, 2019).

Business Environment 4
Functional areas of Nestle
Business functions are the major activities that are carried out by an enterprise as every
business perform different sort of functions which involves functions like Human resource,
financial function, marketing function and many others (Tiwari, 2019). The below given are
the major functions that are performed by Nestle company: -
Human resource: - Human resource is concerned with rising efficiency of the personnel
presentation in any of the business. HR purpose aims at procurement arid preserving the
effective as well as capable workforce, motivating the personnel for achieving the goals.
Nestle perform the functions of HR as it involves attracting, developing and engaging more
of excellent ability that they are looking to cultivate their occupational operations (Nestle,
2019). Nestle company has their Centre of Scale which is a group that ensures our personnel
have their required needs that are taken care of so they can focus.
Technical and production: - Production is one of the major functions which are performed
by the company for their smooth operations. Nestle company has 418 factories in 86
countries where they perform the strong manufacturing capabilities across all our businesses.
This function contributes in accomplishing the high expectation of Nestle clients and Nestle
shareholders. Nestle have the strong manufacturing capabilities across the different
businesses. The company is passionate and multidisciplinary team who are working in
different areas which include Safety, Health & Environment, engineering, operations and
many others. Nestle company serve always with the passion and always strive to perform
better, collaborating with the different partners as well as colleagues to grow as well as
achieve success all together (Nestle, 2019). This function leads to the success by winning the
mind, hearths quality and everything with the spirit of ownership as well as excellence.

Business Environment 5
Information system/technology: - One of the major functions areas involves information
system as well as technology is managed by the company that will be GLOBE program
across the world. This helps the company that is forming corporate greatest practices as well
as infrastructures. In addition to this, Nestle Australia performs the finest commercial
practices and processes through our Enterprise Resource Practice (Nestle, 2019). The
function that is performed by Nestle involve depending on SAP skills, employed together
with colleagues from different background as well as shaping the personnel knowledge.
Marketing and sales: - It is considered as one of essential function that is performed by
Nestle Company in order to promote products and services. The marketing and sales
contribute in improving excellence of life that contribute in improved future and forming of
good brands at heart of everything. “Brand Building the Nestlé Way” is considered as one of
the distinctive approach that is set by the company for marketing function (Nestle, 2019). The
role of marketing encompasses all the related aspects related to management brand with the
indirect and direct responsibility towards the brand innovation, product, communication and
others. Nestle function of marketing collaborate with the different groups which include
sales, e-business, R&D, technical appliances and others.
Internal and external stakeholders and their roles
The internal and external stakeholder’s analysis of Nestle Company has been done with the
help of the PESTLE tool as it shows the external factors which influence the working of
company (David & David, 2013).
PESTLE analysis
Political factors: - The political factors include change in rules and regulations formed by
government as they have vital role that can influence Nestle. Government is considered as
one of the stakeholders of the company which contribute in the opportunities by providing the

Business Environment 6
stable market in market (Hitt, Ireland, & Hoskisson, 2012). Along with this, it also leads to
threat for the company due to changing global regulations by motivating the standardised
practice yet adaptation to the diverse political forces.
Economic factors: - The economic factors which are required to be considered are influence
of GDP and purchasing power that influence the working of business. The economy of
country is vital to be considered by Nestle Company. Economy leads to influence by bringing
rise in the prices of the raw material related to the goods which is linked to need to source the
sustainable supplier. This shows that one of the stakeholders of the company is their suppliers
who contribute effectively.
Social factors: - The social factors are considered by company because it involves change in
the attitude of the customers by moving towards the healthier product line. The customers are
major stakeholders for the company who perform the vital role as they are the one who lead
to the success of business operations. In addition to this, media is one of the major
contributors in changing the social preference of the customers in the market. Thus, this is
fact that media is considered as one of vital stakeholder’s of company who can form the role
by forming the good brand image of the company in the eyes of customers (de Oliveira, &
Rabechini Jr, 2019). However, they can also provide the criticism on the wrong activities of
Nestle which might change in mind-set of the customers towards the company.
Technological factors: - The technology that influence working of company as up-gradation
and development in technology leads to high opportunities as well as threats (Kotler, Keller,
Ang, Tan, & Leong, 2018). The company get this technology through their business partners
who work as the stakeholders and perform their role by providing the effective services in
terms of IT.

Business Environment 7
Legal factors: - The legal factors that influence working involves adhering to regulations as
well as changes within the company (Chernev, 2018). Nestle company perform the health and
safety laws for the employees with the company which is considered as there stakeholders.
Employees of the company are considered as stakeholders of Nestle. Employees perform
their role effectively as they are the one who contribute in the success of business.
Environmental factors: - Environmental factors that affect working include influence
towards the environmental factors which include consumer concern for the packing and
recycling of the products. Nestle company finds significant contribution shareholders of the
company who contribute in the CSR and environmental improvement activities. In addition,
this is very clear from the analysis that communities to whom the company provide the
services are also considered as one of the stakeholders. The community works as the
stakeholders as they are one who performs the role by providing the opportunity to Nestle to
make effective utilization of resources and also to lead development and improvement
towards the society.
Nature and degree of main stakeholders interests, implication of conflicting interests
It is essential to consider the nature and degree of foremost stakeholder’s attention which is
easily understood with the help of engagement of the stakeholders towards the company.
Along with this, the implications of the conflicting interests are also determined for some of
the stakeholders that are essential.
Communities: - Communities are considered as vital stakeholders for the business as they
contribute in allowing Nestle for achieving the success. The engagement of this stakeholder is
high as Nestle company work with the community stakeholders. For instance; Mossel bay
region of South Africa since the year 2009 to diminish influence of scarcity. Through, the
holistic method related to water management can be supplied dairy agriculturalists with water

Business Environment 8
as well as this lead to address quality of water in home-grown areas (Eskerod & Jepsen,
2016). In the year 2017, the factory of the company also set in the region where there was
zero water facility. Thus, this leads to the development of the communities due to which they
have interest.
Customers: - Customers have keen interest as they are the one for which the company is
performing the operations. There are 200 companies who came together to join alliance for
Youth initiative that is introduced by Nestle by supporting 62,000 young Europeans to search
for the jobs as well as training opportunities (Nestle, 2019). The similar sort of initiative is
spread by the company in other areas like Asia, Africa, Middle East and others. This is the
reason due to which there is high consumer interest within the company. However, the
products which are offered by the company sometimes don’t meet the quality which affects
the interest of company. For instance; the case of Maggi took place in India affects the
interest of customers from company.
Employees: - The employees of company has interest in the company as Nestle and their
employees have six questions that are required to assess which shows the way persons feel
that they are being preserved. The appointment of the employees incorporate the culture of
Quality survey which get linked to approx. 62,000 personnel in this business with wide
worker study that drive the excellence all over business (Nestle, 2019).
Government: - The government has interest the as there initiatives helps Nestle company in
performing the work and also they get the support of the company to get the work done. US
government initiative develops the public as well as private partnership with the motive to
acknowledge the reasons behind the poverty as well as hunger (Bellantuono, Pontrandolfo &
Scozzi, 2016). Nestle has contracted partnership in 2016 to assist climate smart cocoa project
for farmers of Ghana to make them aware about the agricultural practices.

Business Environment 9
Media: - Media also plays a vital role with the high interest in the company as they are the
one who permits business to direct get in touch with their customer or vice versa (Dhanesh &
Sriramesh, 2018). The conflicting implication occurs in case of media as they can reflect the
company image in negative manner which influence the working.
Business partners: - Nestle has the trade association which provide them the opportunity to
adopt the services like technology and others. The company has been active in ISDI
(International Special Dietary Foods Industries) that enhance the standards in manufacturing
as well as trade of special dietary foods.
Suppliers: - Suppliers of the company have interest as they get high amount contracts from
the company (Andriof & Waddock, 2017). Nescafe plan of the company provides the
assistance to the smallholder coffee agriculturalists in Lampung province of Indonesia to
enhance the quality as well as output of Robusta coffee. In the year 2016, 676 farmer field
schools have trained more than 20,000 farmers on good agriculture practices. This leads to
the improvement in the supplier’s practice which made them to show their interest (Susnienė,
& Purvinis, 2015). However, some of the suppliers are there who don’t get the support of the
company which influence their interest with company and leads to conflicting situation.
Level of major stakeholders influence
This section include the level of major stakeholders influence that Nestle Company in the
market. The below given table shows the level of influence that is majorly maintained by the
stakeholders within the company: -
Stakeholders Level of influence
Government High
Customers High

Business Environment 10
Suppliers High
Employees Low
Communities Low
Business partners Low
Media High
Stakeholder’s matrix
Compare the industry your business operates in with their industry
In this section, comparison of two business companies has been done dealing in diverse
industry. Nestle company is dealing the business in the Conglomerate business and peer
company is Wal-Mart which is a retail business which shows that both the companies deal
High power, Low
Interest
Media, Government
High power, High Interest
Customers, Business
partners
Low interest, Low
power
Communities
High Interest, Low power
Suppliers, employees
Interest
Power

Business Environment 11
differently with different industry. Most of stakeholders of the company remain similar as
they don’t have any diverse category. Wal-Mart Company only partly meet the interest of
personnel due to they continue to get the less wages. The company is unable to satisfy the
interest of suppliers. On the other hand, Nestle Company ensure that they are able to maintain
the interest of the suppliers due to which they remain loyal. Wal-Mart Company is only
approx. 50% of the effective in acknowledging the interest of the stakeholders (Meyer, 2017).
On the other hand, Nestle Company ensures that they consider the needs of the stakeholders
and also contribute in monitoring the interest. In addition to this, Nestle Company has
communities as their major stakeholders which on the other hand Wal-Mart has community
as stakeholders but at lower level.

Business Environment 12
Conclusion
In the end of report, this is concluded that the internal as well as the external stakeholders has
major interest and influence in the working of Nestle as a company. The functions of the
company are evaluated in the different areas. The tool of the pestle analysis has been used
with the motive to identify the stakeholders and also to determine their roles within the
working of the company. In addition, it has been found that different stakeholders have
diverse nature and interest within the country which is explained by providing the specific
cases as well as the incident that took place. Along with this, the level of influence by the
major stakeholders have been specified which shows that the company need to consider the
high level influence stakeholders which might lead to change in the decision as well as
strategies of company. In the last, the comparison among the different industry has been done
considered Wal-Mart as Peers Company.

Business Environment 13
References
Andriof, J., & Waddock, S. (2017). Unfolding stakeholder engagement. In Unfolding
stakeholder thinking (pp. 19-42). Routledge.
Bellantuono, N., Pontrandolfo, P., & Scozzi, B. (2016). Capturing the stakeholders’ view in
sustainability reporting: a novel approach. Sustainability, 8(4), 379.
Chernev, A. (2018). Strategic marketing management. Cerebellum Press.
David, F. R., & David, F. R. (2013). Strategic management: Concepts and cases: A
competitive advantage approach. Pearson.
de Oliveira, G. F., & Rabechini Jr, R. (2019). Stakeholder management influence on trust in a
project: a quantitative study. International Journal of Project Management, 37(1), 131-144.
Dhanesh, G. S., & Sriramesh, K. (2018). Culture and crisis communication: Nestle India's
Maggi noodles case. Journal of International Management, 24(3), 204-214.
Eskerod, P., & Jepsen, A. L. (2016). Project stakeholder management. Routledge.
Freeman, R. E. (2010). Strategic management: A stakeholder approach. Cambridge
university press.
Hitt, M. A., Ireland, R. D., & Hoskisson, R. E. (2012). Strategic management cases:
competitiveness and globalization. Cengage Learning.
Kotler, P., Keller, K. L., Ang, S. H., Tan, C. T., & Leong, S. M. (2018). Marketing
management: an Asian perspective. Pearson.
Meyer, P. (2017). Walmart’s Stakeholders: Analysis & Recommendations. Retrieved from:
http://panmore.com/walmart-stakeholders-analysis-recommendations

Business Environment 14
Nestle. (2019). Functions. Retrieved from: https://www.nestle-cwa.com/en/jobs/functions
Nestle. (2019). History. Retrieved from: https://www.nestle.com.au/aboutus/history/
Nestle. (2019). Marketing. Retrieved from: https://jobs.nestle.com/en/career-area/marketing
Nestle. (2019). Other functions. Retrieved from:
https://www.nestle-caribbean.com/careers/our-teams/other-functions
Nestle. (2019). Stakeholder engagement. Retrieved from: https://www.nestle.com/csv/what-
is-csv/stakeholder-engagement
Nestle. (2019). Technical production. Retrieved from:
https://jobs.nestle.com/en/career-area/technical-production
Susnienė, D., & Purvinis, O. (2015). Empirical insights on understanding stakeholder
influence. Journal of Business Economics and Management, 16(4), 845-860.
Tiwari, A. (2019). 6 Most Important Functions of Business. Retrieved from:
http://www.preservearticles.com/business/6-most-important-functions-of-business/30339