The objective of this report is to evaluate impact of business environmental factors over business decision making. These kind of practices influence a firm to make several strategies to minimize negative impact of such factors.
- Evaluate different types of organisation and their size and scope.
- Determine the interrelationship between different organizational functional departments of Nestle that are link to organizational structure.
- Discuss the both positive and negative impact of macro environmental factors over business decision making of Nestle.
- Analyze strength and weaknesses of Nestle and its interrelationship with external environmental factors.
Businesses environment consist various external or internal factors which have great influence on their function. It covers entire forces such as customers, suppliers, competitors, government, cultural, political, legal conditions and technological. The business environment is dynamic in its nature so that it always keep on changing as per the situations. It closely related with all external forces which are beyond the control from management and affects on the business functions or operations in various ways. It is necessary to formulate effective strategies and make favourable decisions so that company can survive in the competitive environment as well as achieve predetermined goals or objectives in an effective manner (Reed, 2013). This report is based on Nestle which is Swiss transnational food and drinks company. It is dealing in various goods such as ice cream, frozen food, Kit-Kat, Smarties, Maggie, tea, baby and medical food, confectionery and dairy products etc. it will define different types and purpose of organisation as public, private and voluntary sector with size or scope. It will explain relationship between organisational functions with objectives. It identify positive or negative impacts of macro-environment and conduct internal or external analysis for identify strengths or weaknesses interrelate with external macro forces within organisation.
P3 Interrelation between different organisational departments and their link to objectives
There are number of functions and activities defined in every organisations that must be performed by the management for the purpose of achieving predetermined goals or objectives (Osterwalder, 2010). It consist necessary functions that interlinked with organisational department so that company can accomplish its set targets or goals through improving internal strengths as well. It included various department of Nestle such as human resources, IT, production and operations,s finance and accounting to attain bests possible outcomes. These are as following:
Human resource department:
It is defined as the functions or activity that every organisation perform in well manner because this must be required to get work done by managing manpower or employees performances in an effective way. HR department perform number of activities such as recruiting and selecting best suitable candidates who have ability to accomplish targets or goals. They also consider other important activities such as performance appraisals, remuneration or rewards systems, training and development programs etc. Nestle gives first priority to the workforce because if employees are not satisfied than it will be difficult to achieve objectives.
This is very important department which play vital role in creating demands and increasing sales volume so that better position can be occupied by the organisation. Manager focus on adopting best tool or promotional techniques so that huge customers can be attracted and also create awareness among them (Pigneur, 2010). Nestle conducts research or survey to identify customers needs or demands, competitors,s market trend, situations etc. for producing best goods and satisfy customers desired expectations.
It play an important role in performing every tasks or activities in an effective way as manager provide adequate funds financial services to entire activities so that particular goals or targets can be achieved within define time period. Without funding, it is not possible to complete whole tasks and runs business operations. Therefore, it is also known as backbone of business.
This department is directly linked with marketings department as they provide proper information and data regarding marketing trends and customers demands so that company make decision about production of goods and services in an effective manner. Nestle also does the same and get information about customer's tastes, preferences as well as desired expectations towards goods or services.
It is considered as the organisational structure that based on business functions (Pikka, 2011). These are very important for every organisations for achieving success as it included human resource, finance functions, sales and marketing, IT etc.
In this consider the segmentation as company divide its entire functions or activities as per the classification of people or areas such as hilly, region, rural or urban etc. for reaching at targeted audiences.
In this company decide their structure or culture for diversified the products and services in an effective manner (Iskanius, 2011). For example: Nestle is providing various products such as foods and beverages in the marketplace.
P4 Impact of macro-environmental factors
It generally concern with numerous factors that based on environmental elements which keeps on changing and they have major impacts on the business operations. It is very difficult to deal in international market because internal and external factors influence on the organisational functions and also create barriers in selling of goods or services in the international market. Macro-environmental factors have major impacts on the company's reputations because these forces are beyond control and can affects on business functions as well. In this involved different elements such as economical, social, technological, political and legal. So company requires to formulate strategies or actions plan for dealing with these forces such as:
In this considered various political aspects that affects on the firm in several ways because of number of rules or regulation, policies and many more that cannot be controlled and must be followed by every business firms. Nestle is serving its products or services at global market so they have to undertake such regulations for running business in an effective manner (Page, 2011). It included various duties as excise, import or exports, taxations, stability of government and many more that can influence on the business functions.
If these regulations and policies are suitable or beneficial for an organisation then it will affects in positive way on the business. For example, Nestle is considering foods or beverages quality because of customers health and safety as well.
There are negative effects on the Nestle due to higher tax rates and other issues.
In this describe the several forces which is related with economical changes and fluctuations that can affects on the business functions or activities as well. Nestle is providing its products at different countries so it can be possible that economical forces affects on profitability or productivities of organisation. It included currencies rates, GDP, inflations, growth rates and many others.