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Business Environment of Different types of Organization - Nestle

University: Regent College London

  • Unit No: 5
  • Level: Undergraduate/College
  • Pages: 5 / Words 1228
  • Paper Type: Dissertation
  • Course Code: EC4F05
  • Downloads: 738
Question :

The scenario of this report determines Business Environment of different type of organization by analyzing all the factors which influence operations for an organisation. In this report, different types of business are explored on grounds of size, scope and legal structure. The internal as well external environment is evaluated through SWOT and PESTLE.

  • Discuss different types of organisation, its size and scope as well as their legal structure.
  • Determine interrelationship between different functional departments of Nestle.
  • Evaluate the positive and negative impact of external environmental factors upon the business operations of Nestle.
  • Examine how the strength and weaknesses of Nestle are interrelated to macro-environmental factors of the firm.
Answer :
Organization Selected : Nestle


Business environment may be concerned with various factors such as internal and external that affects on the organisational functions or activities in which included employees, customers, business rules or regulation and supply chain which are needed to run the firm. On the other side, the business environment is generally defined as the external forces or those institutions which are beyond the control and affect on organisation's operations. The main factors are suppliers, competitors, government, social, political, legal and technological. There are defined various businesses such as public, private and voluntary. They operate their functions or activities for the purpose of generating revenues and profits.

This assignment is based on Nestle, a Swiss transnational firm and deals in food and beverages in the international market. This report will explain various types, purpose, size, scope and legal structure of this organisation. It will describe the relationship between various organisational functions that link with objectives as well as the structure and also identify the positive or negative impacts of the macro environment upon business operations. This will conduct internal or external analysis to identify strengths or weaknesses which are interrelated with external macro factors.


P1 Different types and purpose of organisations as public, private and voluntary with legal structure

In the present scenario, there are number of firms who operated their businesses at global level with the purpose of increasing market image and generate more profits in an effective manner. They have certain aims or objectives behinds their business operations so that it can be run in better manner in the international market. Every organisation has their legal structure according to business nature. There is requires to follows some rules and regulations by the business firm that formulated by the government which are needed for running an organisation as well as its activities in an effective manner. In can be classified among various business firms such as public, private, voluntary. These are essentials for developing country and its economic condition in more effective ways. It can be understood by considering several types of businesses with legal structure such as:

Private Company:

It is define the venture that starts and operates by an individual by considering ownership of firm. A person comes up with new ideas, innovation, necessary resources, capital, lands and many more for the purpose of running business. These types of businesses are also known as private company. They have certain rights for issuing shares or stocks and possession of owned properties so that business can be run and accomplish set targets as well. In this, several defined restrictions or limitations as per the legal structure that they do not perform such tasks regarding public exchanges including Initial Public Offering (IPO) and not consider any Securities, Exchange Commissions (SES) that are restricted in public companies for fulfilment such requirements.

Related Sample: Fiscal and Monetary Policy Impact on Nestle

Nestle is world's most famous company that deals in foods and beverages at global market. It has established in 1866 in Switzerland. They serve a number of products including baby food, dairy items, frozen foods, tea, coffee, medical and many others.

Purpose of Nestle:

  • To satisfy customers desired expectations by providing better quality of goods and services
  • To achieve competitive advantages and increase market position at international level
  • To enhance productivity and profitability with wining trust of society people and improve their life

Legal structure of private company

  • Partnership: In this consider those ventures that started by two or more individuals and they make an agreement for running business operation. They generally come up with new ideas and necessary resources for operating functions as well as activities to accomplish set targets or objectives in an effective manner. In this, partners make a contract and decide every task or activities with showing their interest in starting a new venture. Every individual have rights to share profits and liabilities that depends on the situations during running of business.
  • Sole Proprietorship: In this, an individual comes up with several resources and appropriate funds for the purpose of starting and operating business functions or activities. They take responsibility for organising, directing and controlling over operations while running an organisation. In these kinds of firms, owners have separate legal distinction to operate the business.
  • Limited companies: There are define another separate legal entities that describes distinct a particular owner from other. They follow some rules or regulations as per the legislations and also consider the shares or guarantees with limited companies. In this also describe the limited liabilities for owners and shareholders for the purpose of operating business in an effective manner.

Public organisation

Public companies are those that operate and run by government authorities and perform tasks for the welfare of society. In these, businesses includes public transportations, free educations, military, police services, health and safety firms and many more that provide better services and safety to people and regulate by the government of nation. They take responsibility for managing and running such businesses and provide effective services and protections to public within a country.

National Health Services (NHS) is providing various healthcare services to the social people as it is founded in UK. They deals in various healthcare services and serve better facilities to the public for improving their health conditions in well manner. In this included number of facilities such as dental, medical and optical care services that are requires to provide better services to the social people for their health improvement as well.

Purpose of NHS:

  • Provide better quality of services to the people in cheap cost.
  • To treat every individual with effective medical services.
  • To become world's largest healthcare centre and achieving set targets in limited time period.

Legal structures of public company:

  • Central government: These kinds of businesses generally operates and regulates by the states as well as central government department.
  • State government: their main aim is to perform several tasks and contributes more in such agencies activities as well.
  • Local government: They play vital role in managing these kinds of firms by considering number of activities and functions.

Voluntary organisation:

In this defined various companies that perform entire tasks regarding providing social helps and support to other volunteers as well. Their main aims is to give several services or facilities to needy people for fulfilling their desired expectations and wants in an effective manner. It is also known as non-profit firms who give various services to the social people rather than earning profits. There is required to take permission from country's government regarding starting such kinds of venture so that particular aims or objectives can be accomplished in well manner.

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