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Analysis of External Environment Through PESTLE - Nestle

University: University of Roehampton London

  • Unit No: 4
  • Level: Diploma
  • Pages: 2
  • Words: 500
  • Paper Type: Dissertation
  • Course Code:

    BAA747

  • Country: UK
  • Downloads: 0
Question :

Nestle is a multinational organisation that specializes in Food and beverage items through its portfolio of 2000 brands. This project conducts an analysis of the external environment through PESTLE analytical framework so that factors affecting business are identified.

  • Consider the PESTEL analysis framework and evaluate how this theory works in Nestle in order to carry out business activities effectively.
Answer :
Organization Selected : Nestle

INTRODUCTION

Business organisation in modern world have to operate in dynamic environment that contain number of external factors which influence the functioning of company. Therefore, they have to conduct PESTLE analysis in order to study the impact of these elements. The company chosen for this essay is Nestle, which is a food processing industry that supply number of confectionery products in the market area.

MAIN BODY

Nestle is consider one of the largest company in respect of revenue and other aspects. They perform pestle analysis that help them to examine the impact of external factors that are beyond their control (Wilson, 2014). While performing this, Nestle will be able to carry out the operations in correct manner.

Political Factors: As Nestle supply its products to different countries that are present at various places in worldwide. Thus, they have to concentrates on factors like import export duties, taxes imposed by the government. On the other hand, they have to consider number of risks that are present in the environment and have to consider while making important decisions.

Economical Factors: Every country have distinct economical environment therefore nestle have to focus on number of factors that include inflation, deflation rate that is prevailing in the particular country. It also involve the concept of price of products that is offered by Nestle to their final customers.

Social Factors: Nestle company have to consider social aspects while carrying out their business operations. The company have to regular study the societal factors that include style, norms, behaviour that is prevailing in the market place. Following all values, beliefs, norms that are related to upliftment of the society which assist nestle company to construct the trust with their potential buyers in the market place.

Technological Factors: This factor will provide number of developmental opportunity that will increase their current position to significant level. There are number of advanced technology like adoption of internet facilities, e-commerce so that many customers are focused upon at the same time in order to satisfy their needs and demands.

Legal Factors: There are several legal rules and regulations that are present in the distinctive country that have direct impact on the functioning of the company (Arguello, 2013). Nestle have to consider provisions that are present in health and safety laws that is formulated for the employees that are working there.

Environmental Factors: there are several environmental factors that have to be adopted by the nestle company in order to protect the environment in which they are operating its business operations. Every country have its own environmental rules and regulations that have to be followed by the company in order to render the social welfare function (Zimmerman, 2014).

CONCLUSION

From the above discussed essay it has been concluded that PESTLE analysis is a important component of marketing principle that enable them to scrutinize impact of environment on the business organisation. It help the nestle company to keep the check on these components and take decision accordingly.

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