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Business Environment Factors of Nestle

University: Regent College London

  • Unit No: 7
  • Level: Undergraduate/College
  • Pages: 5 / Words 1186
  • Paper Type: Assignment
  • Course Code: L/508/0485
  • Downloads: 295
Question :

The process of Britain existing European Union is going to end soon and Britain will no longer be part of EU. Business analyst of Nestle has to conduct a thorough analysis by considering different types of organizations and other factors.

  • Develop understanding of different type, size and purpose of organizations.
  • Explain different organizational functions and their interrelationship in Nestle before assessing their connection with company’s structure.
  • Analyze effect of macro environment on Nestle’s business operations.
  • Find strengths and weaknesses of Nestle and understand their link with external factors.
Answer :
Organization Selected : Nestle


Business environment includes the internal as well as external factors which makes huge impact on the business operations of an organisation due to which it becomes difficult for organisation especially small-sized firms to sustain in competitive market for longer duration. Internal factors includes employee's behaviour, organisational culture, working environment etc. which affects a lot to the organisation internally whereas external factors includes political, economical, social, technological etc. which affects the business organisation externally. The present assignment report is based on Nestle, a company which deals in offering multiple number of products such as food items, beverages etc. The project summarises the different types of organisation along with their purposes, size and scope. Interrelationship between different departments and their linkage with organisational objectives are also discussed under this report. PESTLE and SWOT analysis for the purpose of analysing the factors arises in business environment are also explained under this report. All other aspects are also described under this report with the context of Nestle (Cassell and Blake, 2012).


P1. Relationship between various organisational functions and their link with structure and objectives of organisation

In the organisation there are different number of departments which are work with together. Main motive of all department is to increase revenues and sales of company in limited time period. These division has various objectives to accomplish long term goals and targets. In the NESTLE, human resource, marketing, production, finance, research and development are play vital role. All these are explained under this:

Marketing department: In Nestle, marketing manager has different role for providing entire information regarding product quality, quantity, price, flavour and many other elements. All these are essential part for the success and growth of company within pre-determined period of time. In order to produce all data to the audience Nestle use various kind of channels such as advertisement, publicity, sales promotions and many other tools (Cavalcante and et. al., 2011).

Finance department: Under this, different departments are play vital role in the success and growth of company. In this main responsibility of finance manager is to arrange accurate amount of fund. It is important for the company to do their all activities and functions easily. There are different sources from which funds can raised such as financial institutions like banks, venture capital, owner's capital etc. It ill increases the financial position of company due to which the company can adopt advanced and updated technology in their business structure. Thus, it support the company to achieve their long term objectives and targets in certain time duration.

R&D department: Nestle is one of the world's best and well-established organisation in all over the globe. In this research and development department has various role for organising effective research which help the business to easily identify needs and desired of customers about Nestle products. Therefore, they are understood and aware about the clients requirement they provide better quality in the products as well as services also.

Human resource: It is another department in the Nestle which has various roles for providing training and development, incentives, reward management, performance appraisal and many other benefits to the employees. Thus, they arrange an effective training program which support them to increase productivity and performance level of workers systematically. Therefore, HR department mainly focuses on meeting human resource requirements in an organisation and recruit accordingly in order to get adequate support from them in achieving desired goals and objectives. Therefore, they are trained and has motive to maximise sales and revenues of the firm.

Production: Main role of production manager is to manufacture better quality in their products and services. It assist the business to increase their turnover. They are important part for the business development and success. Nestle serve innovative and high quality goods to its target and potential clients which help in retaining them for longer period of time. For this, it is essential for production team to utilise available resources in an optimum manner. In this all audience are satisfied with Nestle new and added flavour products (Cronan and et. al., 2011).

Organisation Structure:

Product based: It is formed by the company as per its quality goods and beverages which are demanded more in marketplace. In which role of manager is to provide quality goods as per the needs of customers.

Consumer based: This type of structure is formed as per the preferences and behaviour of audience in order to satisfy them through rendering healthy products and services.

Geography based: It is formed by the Nestle manager as per the different locations that acquire more bunch for Nestle services and products.

Function based: This structure is framed by the Nestle manager with the help of different departments such as marketing, finance, R&D, HR and many.


P4 PESTLE analysis of Nestle

Every organization is effected by the different factors that represent inside and outside the business surroundings. It is important that timely evaluating of every factor is done so that it can be analyzed that how they impact the functioning of business as some has their positive effect and other has negative impact upon the business. In order to understand how Nestle is effected by the factors that are present outside the enterprise pestle analysis of same is conducted which will help in knowing the extent to which it is affected.

Political factors – It is an effect of political conditions that are prevailing in the market as every country has their own power body at center who regulates the function of business. It has indirect impact over the functioning of business as it restricts the capacity of an enterprise to grow. The effects of this change has its both beneficial and non-beneficial effects on business which are as follows

Positive effect- Less restrictions shown by different countries for allowing Nestle to expand its business at a global level (Elliot, 2011). p>

Negative effect- Continuous change in the present laws and regulations which makes it difficult for the referred enterprise to adopt and maintain the required level of profit margins.

Instability in the emerging economies raises question of risk as part of the international process.

Environmental factors – These are the factors that are associated with the protection of surrounding against any harm that may create due to the unhealthy practice of an enterprise.

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