Introduction

Nestle is a Swiss multinational food and drink processing company who’s headquarter is located
in Vevey, Vaud, Switzerland. Nestle the world’s largest Food Company was established in the
year 1905 by Anglo-Swiss Milk Company and founded in 1866 by Henri Nestle. Nestle has been
ranked on the top of the list since 2014. Nestle manufactures various variety of products which
includes mineral water bottles, baby food, breakfast cereals, coffee, tea, chocolates, frozen food
items, pet food and the list goes on. About twenty nine of nestle brands have hit the mark of US
$ 1.1 billion annual sales, which includes Nespresso, Nescafe, Kit Kat, Smarties, Nesquick and
many more. If we have a look nestle has been able to build 477 factories which operates in 189
countries and consist of 339,000 employs.

Definition

Louis Allen, “Organization is the process of identifying and grouping work to be performed,

defining and delegating responsibility and authority and establishing relationships for the

purpose of enabling people to work most effectively together in accomplishing objectives.”

There are two types on organization

  Profit organization

 Non- profit organization

Profit Organization

Any business entity, whose primary aim is to generate profit from the regular operations, with a

view to maximizing the wealth of owners, is called as a profit organization. The profit earned by

such entities is either retained in business, for future contingencies, in the form of reserves or

distributed to the owners as the dividend.

Non-Profit Organization

A non-profit organization, as the name suggest is a legal organization whose primary purpose is

to promote public good rather than making profit. These are founded by a group of people who

come together for a common purpose, i.e. to provide service to members and people. The

managing committee looks after its management which consists of a group of individuals, chosen

by the members from among themselves. They are aimed at endorsing a social cause or

supporting a particular outlook.

My organization is a profit organization name as Nestle. Nestlé is a multinational packaged

nourishment organization established and headquartered in Vevey, Switzerland. It appeared from a merger

in 1905 between the Anglo-Swiss Milk Company for milk products built up by the Page Brothers in Cham,

Switzerland, in 1866 and the Farine Lactée Henri Nestlé Company set up in 1867 by Henri Nestlé to give

a new born child nourishment item. Trademark of Nestlé is winged animals in a home, got from Henri

Nestlé's own ensign, recommends the qualities whereupon he started his Company. A few of Nestlé's brands
are all inclusive eminent, which has made the organization a worldwide market pioneer in numerous

product offerings, including milk, chocolate, dessert shop, filtered water and pet sustenance. Nestlé's Brands

are:

a) Milk and Nutrition

b) Food and drink

c) Prepared dishes & cooking aids.

d) Chocolates and candy stores.

Explain micro, small and medium-sized enterprise

The criteria for defining the size of a business differ from country to country. As a reference, the

European Commission’s definition of micro-, small and medium-sized enterprises is established

according to the number of employees and the annual turnover or balance sheet:

 Micro-enterprise: fewer than 10 employees and an annual turnover (the amount of money

taken in a particular period) or balance sheet (a statement of a company's assets and

liabilities) below €2 million. Micro enterprises aim to create large-scale employment in

the economy, separate from the formal sector. And they can achieve this target with very

limited finances and investments

  Small enterprise: fewer than 50 employees and an annual turnover or balance sheet below

€10 million Reduce unemployment through generation of new employment opportunities,

especially for the rural people

 Medium-sized enterprise: fewer than 250 employees and annual turnover below €50

million or balance sheet below €43 million. Encourage production of export-oriented and

import substitute products through promotion of small agro-based industries

The choice of MSME definition could depend on many factors, such as business culture,

the size of the country’s population, industry and the level of international economic

integration.

Sole Trader

A sole trader is a self-employed person who owns and runs their own business as an individual.

A sole trader business doesn’t have any legal identity separate to its owner, leading many to say

that as a sole trader you are the business.

Advantages of sole trading include that:

 you’re the boss

 you keep all the profits

 start-up costs are low

 you have maximum privacy

 establishing and operating your business is simple

 it’s easy to change your legal structure later if circumstances change

 You can easily wind up your business.

Disadvantages of sole trading include that:

 you have unlimited liability for debts as there’s no legal distinction between private and business

assets

 your capacity to raise capital is limited

 all the responsibility for making day-to-day business decisions is yours

 retaining high-calibre employees can be difficult

 it can be hard to take holidays

 you’re taxed as a single person

 The life of the business is limited.

Partnership

A partnership is a formal arrangement by two or more parties to manage and operate a business

and share its profits. There are several types of partnership arrangements. In particular, in a

partnership business, all partners share liabilities and profits equally, while in others, partners

have limited liability. There also is the so-called "silent partner," in which one party is not

involved in the day-to-day operations of the business.

Advantages of a partnership include that:

 two heads (or more) are better than one

 your business is easy to establish and start-up costs are low

 more capital is available for the business

 you’ll have greater borrowing capacity

 high-calibre employees can be made partners

 there is opportunity for income splitting, an advantage of particular importance due to resultant

tax savings

 partners’ business affairs are private

 there is limited external regulation

 It’s easy to change your legal structure later if circumstances change.

Disadvantages of a partnership include that:

 the liability of the partners for the debts of the business is unlimited

 each partner is ‘jointly and severally’ liable for the partnership’s debts; that is, each partner is

liable for their share of the partnership debts as well as being liable for all the debts

 there is a risk of disagreements and friction among partners and management

 each partner is an agent of the partnership and is liable for actions by other partners

 If partners join or leave, you will probably have to value all the partnership assets and this can be

costly.

Private Limited Company

A private limited company, or LTD, is a type of privately held small business entity. This type of

business entity limits owner liability to their shares, limits the number of shareholders to 50, and

restricts shareholders from publicly trading shares.

Advantages of private limited company include that:

  A Private Limited Company is a legal entity; the company’s finances are separate from

its owner’s finances.

 Protection from personal liability to Limited company owners.

 Added credibility for Private Limited Companies, which can make it easier for a Private

Limited Company to borrow money, raise capital and achieve financing without personal

risk.

 Private Limited Companies have a reliable legal precedent to guide and direct the

shareholders and directors (or managers.)

 Private Limited Companies have an unlimited life; their existence does not cease with the

death of a director or shareholder.

 Ltd companies’ may bring additional taxes benefits, and are subject to lower corporation

tax.

Disadvantages of private limited company include that:

 The Private Limited Company structure is suitable for profit or non-profit use.

 Private Limited Companies must hold annual meetings and the shareholder and directors

have specific formalities to observe.

 A Limited Company is more expensive to set up than a sole trader or partnership.

 Private Limited Companies pay annual fees and have periodic filing obligations.

 Owners of the limited companies have less personal control over the company compared

to Sole traders due to compliance issues.

Task 2

Large sized organization

“An organization that has grown beyond the limits of a medium-sized business and has 250 or

more employees. This definition of a large-sized enterprise is the one adopted by the United

Kingdom’s Department for Business Enterprise and Regulatory Reform for statistical purposes.

It is usually from the ranks of large-sized businesses that multinational businesses arise.”

Nestle in a large enterprise so that our plans and objectives are to achieve maximum response from the

clients. Our strategy focuses on delivering benefits to people through food and beverages. In our company

we provide better products and services in 150 years we built successful business by understanding and

anticipating of society, and continuously adapting ourselves to seize the opportunities presented to us.

In Pakistan nestle is on 2nd ranked and our focused on to get 1st ranked in Pakistan because of that we are

providing latest technology To the farmers to get maximum raw milk at time and provide them better

food and facilities and in the end we get better quality raw material. Our focused is on to make nestle

brands best in overall Pakistan. Through our brands, our products, and the services we offer, we are

helping and inspiring people to live healthier lives. We are constructing, distribution and apply diet

information and empower people to make informed decisions about what they eat and what they feed

their families. We want our product to be healthier and tastiest choices in each and every category we
compete in. we always focused on our quality ingredients people know and trust, adding nutrients where

appropriate.

Net Profit and Earnings per Share

Net profit grew by 41.6% to CHF 10.1 billion, and earnings per share increased by 45.5% to

CHF 3.36. Net profit benefited from several large one-off items, including income from the

disposal of businesses. The increase was also supported by the improved operating

performance.Nestle now gets around 23% of its sales from products such as its rose chocolate

flavoured Kit Kats and flavoured San Pellegrino water, a figure Schneider expected to rise.

Medium sized and small organization

Small and mid-size enterprises (SMEs) are businesses that maintain revenues, assets or a number

of employees below a certain threshold. Each country has its own definition of what constitutes a

small and medium-sized enterprise (SME). Certain size criteria must be met and occasionally the

industry in which the company operates in is taken into account as well.Though small in size,

small and mid-size enterprises (SMEs) play an important role in the economy. They outnumber

large firms considerably, employ vast numbers of people and are generally entrepreneurial in
nature, helping to shape innovation. About 99.1% of all food companies are small or medium

sized enterprises (SMEs). Roughly 78% of them are being categorized as “Micro-SMEs”,

meaning that they employ on average less than 3 people. Due to the extremely large number of

food and drink SMEs in Europe (about 285.000), they employ in total as many as 2.8 Million

Workers which makes them one of the largest employers in the European manufacturing sector.

Food and drink SMEs are therefore of great economic importance and due to their diversity have

a large potential to develop and test novel solutions that could benefit many European

citizens. For example; The Hero Group is a private, Swiss international consumer

food manufacturer and marketing company, which, through its subsidiaries, primarily sells infant

formula, baby food, jam, and nutritional snack foods.[1] In 2015, the Group

generated revenues of CHF 1.26 billion and had 4,300 employees around the world.

Task 3

What is Stakeholder?

A stakeholder is either an individual, group or organization who is impacted by the outcome of a

project. They have an interest in the success of the project, and can be within or outside the

organization that is sponsoring the project.

Types of Stakeholder

Stakeholders dived into two main groups:

 Internal stakeholders are controllable and have a direct and immediate impact on the

business of the company.

 External indirectly affect the business.

Influence of Different Stakeholders

Different Stakeholders have different needs and objective. The interest and power of different

stakeholders are different. However, interest of stakeholder is determined by his requirements

and desires to influence the organization.

(a) Investors

Investors are the main source of money that is why investors are concerned with future risk of

the company and profit return. They need that information which will help them to find out

whether they should purchase, hold or sell. Our investors are The Vanguard Group, Inc. Forges

Bank Investment Management UBS Asset Management Switzerland AG

(b) Employees

Employees are interested to know about the position and stability of the employer in the market

and also they want to know about the ability of the company to offer salary, retirement or old age

benefits, medical and employment benefits. Tesco PLC and For Motors provide interesting jobs,

job security, and friendly environment, opportunities of training and safe and healthy workplace.
 (c) Lenders

Lenders want to know about the information that allow them to find whether their credits and

loans, and their calculated interest will be paid when due.

(d) Suppliers

Suppliers are an integral part of a business, and success is interdependent with theirs.

(e) Customers

Customers want to know about continuance of an organization particularly when they want to

build a long-term relationship with the company.

(f) Governments and their agencies

Governments and their agencies want to know that how company is allocating its resources. They

also want to control the activities of the company and find out the taxation policies.

(g) Communities

Company impacts the communities in numerous ways. A financial statement of the company helps

the community by providing important information about the past trends and current development

of the company.

Interrelationship of organization’s function

There are four main business functions: marketing, personnel management, financial

management, and operational management. A business has to market its products and services if

it wants to make sales and profits. A business also has to take care of its employees since they

are what keep the business running. Human resource management deals with employee training,

compensation, recruitment, and rewards. Operational management involves the day-to-day

running of the business. The management has to make sure that the resources that are made

available to the business are used efficiently and effectively. Financial management deals with

the allocation and disbursement of funds within the organization. Here is how the

interrelationship of these four functions leads to the success of the business. Suppose the

business wants to expand to a new market. The marketing department will do market research

and decide on the appropriate promotion strategy. In case they need more employees to help

them with the promotion, they will ask the human resources department for help. The personnel

manager may have to recruit more people to assist the marketing team. In that case, they involve

the financial department since recruitment is a costly affair. The finance department then

involves the operations team to make sure that the funds are used properly by both teams.

Task 4

Human resource management (HRM)

Human resource management (HRM) is the practice of recruiting, hiring, deploying and

managing an organization's employees. HRM is often referred to simply as human

resources (HR). A company or organization's HR department is usually responsible for creating,

putting into effect and overseeing policies governing workers and the relationship of the

organization with its employees. The term human resource was first used in the early 1900s, and

then more widely in the 1960s, to describe the people who work for the organization, in

aggregate. HRM is really employee management with an emphasis on those employees as assets
of the business. In this context, employees are sometimes referred to as human capital. As with

other business assets, the goal is to make effective use of employees, reducing risk and

maximizing return on investment (ROI).

HRM can be broken down into subsections, typically by pre-employment and employment

phases, with an HR manager assigned to each. Different areas of HRM oversight can include the

following:

 Employee recruitment, on boarding and retention.

 Talent management and workforce management.

 Job role assignment and career development.

 Compensation and benefits.

 Labour law compliance

 Performance management.

 Training and development.

 Succession planning.

 Employee engagement and recognition.

Marketing

Marketing is the activity, set of institutions, and processes for creating, communicating,

delivering, and exchanging offerings that have value for customers, clients, partners, and society
at large. Marketing research is the function that links the consumer, customer, and public to the

marketer through information–information used to identify and define marketing opportunities

and problems; generate, refine, and evaluate marketing actions; monitor marketing performance;

and improve understanding of marketing as a process. Marketing research specifies the

information required to address these issues, designs the method for collecting information,

manages and implements the data collection process, analyze the results, and communicates the

findings and their implications.

4 P’s of Marketing

Product

A product is defined as a bundle of attributes (features, functions, benefits, and uses) capable of

exchange or use; usually a mix of tangible and intangible forms.Thus a product may be an idea, a

physical entity (a good), or a service, or any combination of the three. It exists for the purpose of

exchange in the satisfaction of individual and organizational objectives. While the term

“products and services” is occasionally used, product is a term that encompasses

both goods and services.

Price

Price is the formal ratio that indicates the quantity of money, goods, or services needed to

acquire a given quantity of goods or services. It is the amount a customer must pay to acquire

a product.
Place (Or Distribution)

Distribution refers to the act of marketing and carrying products to consumers. It is also used to

describe the extent of market coverage for a given product.In the 4Ps, distribution is represented

by place or placement.

Promotion

According to the Association of National Advertisers (ANA), promotion marketing includes

tactics that encourage short-term purchase, influence trail and quantity of purchase, and are very

measurable in volume, share and profit. Examples include coupons, sweepstakes,

rebates, premiums, special packaging, cause-related marketing and licensing.

Finance

Finance is defined as the management of money and includes activities like investing,

borrowing, lending, budgeting, saving, and forecasting. There are three main types of finance:

(1) personal, (2) corporate, and (3) public/government. The easiest way to define finance is by

providing examples of the activities it includes. There are many different career paths and jobs

that perform a wide range of finance activities. Below is a list of the most common examples:

 Investing personal money in stocks, bonds, or guaranteed investment certificates (GICs)

 Borrowing money from institutional investors by issuing bonds on behalf of a public

company

 Lending money to people by providing them a mortgage to buy a house with

 Using Excel spreadsheets to build a budget and financial model for a corporation

 Saving personal money in a high-interest savings account

  Developing a forecast for government spending and revenue collection

Personal Finance

Financial planning involves analyzing the current financial position of individuals to formulate

strategies for future needs within financial constraints. Personal finance is specific to every

individual's situation and activity; therefore, financial strategies depend largely on the

person's earnings, living requirements, goals, and desires.For example, individuals must save

for retirement, which requires saving or investing enough money during their working lives

to fund their long-term plans. This type of financial management decision falls under personal

finance.

Corporate Finance

Corporate finance refers to the financial activities related to running a corporation, usually with a

division or department set up to oversee the financial activities. For example, a large company

may have to decide whether to raise additional funds through a bond issue or stock offering.

Investment banks may advise the firm on such considerations and help them market the

securities.

Public Finance

Public finance includes tax, spending, budgeting, and debt issuance policies that affect how a

government pays for the services it provides to the public. The federal government helps prevent

market failure by overseeing the allocation of resources, distribution of income, and economic

stability. Regular funding is secured mostly through taxation. Borrowing from banks, insurance

companies, and other nations also help finance government spending.

Operations

These procedures are used to create goods and services, market them to customers, and deliver

the final products. Thus, every business’ operations are slightly different. A manufacturer’s

activities largely consist of purchasing raw materials and turning those materials into actual

products. These activities include machining, milling, sandblasting, painting, and assembling

materials. All of these activities add value to the product and the company overall. Contrast that

with a retailer that doesn’t create any products. It simply purchases goods from manufacturers

and wholesalers and markets these goods to customers. A retailer’s operations consist mainly of

logistics and marketing activities. Most companies, like the two mentioned above, have multiple

operations that are interconnected. These activities are called a process and typically consist of

four parts: processing, inspecting, transporting, and storing. Operations have the general purpose

of increasing value to customers. For instance a company might obtain more business assets or

improve efficiency with the use of current assets in order to reduce the production costs of its

products. Thus, it can lower the price to the consumer. These procedures never cease and usually

become more complex and more focused as time goes on to pinpoint areas a business can

improve upon.

Organization’s Mission and Objectives

A mission statement is a short statement of why an organization exists, what its overall goal is,

identifying the goal of its operations: what kind of product or service it provides, its primary

customers or market, and its geographical region of operation. Organizational objectives are

short- and medium-term goals that an organization seeks to accomplish so it might reach its
overall strategic goals. Objectives will usually play a part in the setting of

an organization's policies and allocation of resources.

Mission statement and objectives of Nestle:

“In Pakistan our Nestle is the best nutrition and Health Company. We provide better

food, beverages in a wide range of categories to the end user with best tasting. Our mission is to

deliver best valuable products to the clients”

Company's objective is to be the world's largest and best branded food manufacturer while

insuring that nestle name is synonymous with the products of the highest quality. Its

chief objectives are: To achieve compatibility with international voluntary standards on

environmental management systems.

Task 5

Relation of four key functions with company’s mission and goals

While the marketing department communicates the brand of the company to consumers, the

collaboration of HR and marketing communicates the brand of the company to employees. Using

social and technology-based tools, companies are creating a universal brand message, one that

applies to employees, applicants, and consumers. Working together, HR finds the best people to
promote and build the brand, while marketing creates and delivers the brand message to

employees. This process works so well that 67% of Best-In-Class companies have a clear brand

message that integrates HR and marketing processes. The HR department primarily serves the

company’s employees. Due to the connection with employees, the department can share the

brand messaging created in marketing with employees through training sessions, evaluations,

and employee orientations. Through the collaboration with HR, brand messaging can spread

throughout the company through internal communication. Employees can become brand

ambassador which then strengthens the marketing department’s mission of spreading the brand

message to consumers. Due to the marketing team’s connections with consumers, they can help

promote the values and mission if the company. Through this promotion, they can help

attract potential employees. Marketing can also help the HR department and other employees

adapt communication methods and styles as marketing employees have experience in

communicating with consumers. Likewise The HR and finance departments work towards one

ultimate goal of achieving a higher level of performance and profitability. In the current business

context, HR managers often perform some duties that were traditionally thought to be financial

duties. The same applies to chief finance officers. For instance, HR managers must consider the

cost and benefits of recruiting new employees. They must also consider the impact of their HR

policies on the profitability of the organization. Such considerations require data analysis and

financial projections. Finance officers or managers must go beyond considering employees as

costs to determine ways through which they can improve profitability through human capital. For

instance, finance managers estimate the impact of salary increment, bonuses, and other

motivational programs on the company’s profitability.

 A strong relationship between all departments has a positive impact on the overall performance

of an organization. Given the overlap in responsibilities, open communication across

departments is important to ensure that the overall goals and objectives are achieved. Businesses

must ensure that there is a free flow of information across departments, especially performance

data.

Task 6

Explain the organization Structure

Transnational

When your business starts operating across international boundaries, you need a business

structure that helps you achieve efficiency. You want your business to be globally integrated and

locally responsive, simultaneously. This requires an organizational structure that is

multidimensional and ensures systematic differentiation between businesses, functions and

geographical areas. In a transnational organization structure, you develop relationships between

different departments based on interdependence and cooperation. With a transnational

organizational structure, you generally organize your business along several dimensions, such as

geographic, product and functional levels. This means you achieve integration either within

various product categories or within geographic areas or functions. Such an organizational

structure helps you coordinate across all related business activities simultaneously. You can

adopt a structure that meets your business needs, even using a hybrid structure that combines two

or more given models. For example, your business can have one division based on geography
 and another based on products. In a transnational structure, you achieve integration by

appointing specific types of mangers. Your country or regional managers act as a focal point for

customers and oversee all products and functions performed in their area. Conversely, if you use

a functional structure in your business, your managers oversee the activities of a particular

function such as technology, marketing or manufacturing. Similarly, you require business

managers to oversee all functions and markets supported by a particular service group.

International

Institution drawing membership from at least three states, having activities in

several states, and whose members are held together by a formal agreement. The Union of

International Associations, a coordinating body, differentiates between the more than

250 international governmental organizations (IGOs), which have been established by

intergovernmental agreements and whose members are states, and the approximately

6,000 nongovernmental organizations (NGOs), whose members are associations or individuals.

IGOs range in size from three members to more than 185 (e.g., the United Nations [UN]), and

their geographic representation varies from one world region (e.g., the Organization of American

States) to all regions (e.g., the International Monetary Fund). Whereas some IGOs are designed

to achieve a single purpose (e.g., the World Intellectual Property Organization), others have been

developed for multiple tasks (e.g., the North Atlantic Treaty Organization). Their organizational

structures can be simple or highly complex depending on their size and tasks.

Global organizations
In our current world scenario, keeping peace and effective trade relations

among countries is a prominent priority for most countries. There are many world organizations, like

the United Nations, that help maintain and promote healthy international relations between countries.

The UN is the biggest and the most noteworthy international organization in the world currently. It
was established right after the World War II with the aim to maintain peace and order in the world

and promote international relations and cooperation. There are currently 193 member countries that

are a part of the UN. The role that international organizations can play depends on the interests of

their member States. States establish and develop international organizations to achieve

objectives that they cannot achieve on their own. By the same token, States will not permit

international organizations to do things that constitute, in the eyes of these States, interference in

their internal affairs. This is particularly true in the very sensitive field of international migration.

The entry, economic activities, residence rights, etc., of foreigners are viewed, to this day, as

falling under the sovereignty and reserved domain of States. In the field of international

migration, no State likes to be told what it can or cannot do - neither by another State nor by an

international organization.

Positive and Negative impact on Macro Environment

Macro-environment, new risk factors are constantly appearing and they are much more difficult

to identify, both for the managers of the business as well as for lenders. The major changes or

developments in the macro-environment are usually outside the business’ control. It’s essential

that the managers of the business are able to anticipate the impact of these changes on either the

business itself or on its market before they actually happen, so as to be able to adjust the

business’ products or processes accordingly. As part of our credit risk assessment we must

ensure that the management of the business is aware of possible changes in its macro-

environment since failure to do so may result in the business losing any competitive advantage

that it might have had and compromising its very existence. Note that when the business is

operating across-borders and revenues and cash flows come from foreign sources you would
need to consider these factors in those countries as well as in your home country. The acronym

PESTEL is used to describe the components of the business’ macro-environment. Each of these

components comprises a number of factors that can positively or negatively affect businesses of

all sizes although it should be noted that most businesses and/or industries will not be affected by

all the factors simultaneously or to the same degree as others. The idea is to consider each of

these factors in turn and the changes that are taking place in these environments and to determine

whether, and to what extent, the business that we are assessing will be affected by the changes.

Task 7

What Is a Macro Environment?

A macro environment is the condition that exists in the economy as a whole, rather than in a

particular sector or region. In general, the macro environment includes trends in gross domestic

product (GDP), inflation, employment, spending, and monetary and fiscal policy. The macro

environment is closely linked to the general business cycle as opposed to the performance of an

individual business sector. The macro environment refers to how the macroeconomic conditions

in which a company or sector operates influences its performance. Macroeconomics deals with

the aggregate production, spending, and the price level in an economy as opposed to individual

industries and markets. The amount of the influence of the macro environment depends on how

much of a company's business is dependent on the health of the overall economy. Cyclical

industries, for example: new automobiles, are heavily influenced by the macro environment,

while basic staple industries are less influenced. Industries that are highly dependent on credit to

finance purchases and business investments are strongly influenced by changes in interest rates

and global financial markets. The macro environment can also directly affect consumers’ ability
and willingness to spend. Luxury goods industries and big ticket consumer goods can be highly

impacted by fluctuations in consumer spending. Consumers’ reactions to the broad macro

environment are closely monitored by businesses and economists as a gauge for an economy’s

health.

PESTLE Analysis

Political Factors

Nestle serves in several countries. The rules and regulations set by the government are different

in different regions. Nestle should focus on these political dynamics like taxation, import export

excise duties, government permission to enter in to the target segment and also to introduce

hygiene products allowed by the regulated bodies. Moreover in the contemporary trends keeping

in view the government stability, Nestle should consider and recognize all the related risks that

could be involved. Nestle should also consider the changing global regulations which are yet to

adopt by the company. Albeit nestle is such an organization which in real sense promote the

government health policies by maintain the quality standards and rules and regulations.

Economic Factors

Different countries have different level of development. Economy of countries differs

everywhere. So Nestle has to set different economic policies for different targeted segments. The

price of the product is an important decision to take while strategizing the economic policies

according the inflation rate and the buying power of the segments. Nestle company should made

an analysis report on frequent basis to get the knowledge of the inflation rates and different
income levels. Nestle is contributing a lot in promoting the economic worth of farmers by

producing the products at a local level for the satisfaction of the consumer.

Social Factors

The shared thoughts and beliefs of the customers influence the business operations. The culture,

life style, norms and values force Nestle to deliver the specific product to the right segment.

Nestle so far has considered the social perspective well. The company has well understood the

concept that consumers changing attitude has immense importance. People are now very much

prone to the healthy life style. Nestle has made a good reputation of understanding and

evaluating the consumers behavior and the related dynamics. Nestle is a global brand but the

product has been produced locally in order to sustain the quality. Adherence to the strong values

and principals has always been the priority of the company that assists in building the trust on the

consumers.

Technological Factors

Technology gives many opportunities for the development of new products or improvement of

existing ones. New techniques of marketing such as internet and e-commerce are important to

focus in this modern era. Therefore Nestle uses technology in several business operations like to

maintain the databases with the help of software. The rampant use of social media has narrowed

the gap between the direct interaction of consumer and the company. Nestle should follow such a

maxim that accelerate innovation with the help of technological advancements. Nestle is already

using the state of the art technology for the production of various products, they are meeting the

global standards by installing the contemporary plants.

Legal Factors

Legal factors involve the legal environment of a company and its influence on the operation to

meet the demand and minimize the cost. For instance, Nestle has to follow the health and safety

laws for their employees and also to produce hygiene products for the customers. Nestle need to

focus on these too while operating in different regions of the world.

Environmental Factors

Today the world is more conscious to have clean environment. Nestle need to focus on these

rules and regulations also to produce healthy food with environmental friendly operations.

Several countries set different rules, so to increase the acceptance of the products by the targeted

segment the rules are significant to follow. Nestle has also been taking into account the

considerable attention towards the social contribution. The other related concerns are the realm

of recycling and the issues pertaining to the packing.

Task 8

As with all techniques there are some positive and negative impacts on using it to help plan

organizational strategy.

Positive impacts

 Involves cross-functional skills and expertise.

 Helps to reduce the impact and effects of potential threats to your organization.

 Aids and encourages the development of strategic thinking within your organization.

 Provides a mechanism that enables your organization to identify and exploit new

opportunities.
 Enables you to assess implications of entering new markets both nationally and globally.

Negative impacts

 Users must not succumb to 'paralysis by analysis' where they gather too much information

and forget that the objective of this tool is the identification of issues so that action can be

taken.

 Organizations often restrict who is involved due to time and cost considerations. This limits

the technique's effectiveness as a key perspective may be missing from the discussions.

 Users' access to quality external information is often restricted because of the cost and time

needed to collate it.

 Assumptions often form the basis for most of the data used, making any decision made based

on such data subjective.

Task 9

Strengths and Weaknesses of Nestle

Currently Nestle operates in 12 different segments of the consumer products market, including

baby foods, bottled water, cereals, candy, coffee, prepared and prepackaged foods, dairy, drinks,

food service, healthcare and nutrition, ice cream and pet care. Its staple of brands includes some

of the best-known names in the industry, such as Stouffer’s, Dreyer’s, Haagen-Dazs, Purina,

Aero, Butterfinger, Gerber, Maggi and Perrier.

STRENGTHS
 Nestle is a highly-diversified company operating in many different markets and sectors of those

markets.

 The variety of brands gives Nestle a strong ability to weather economics because it serves many

different segments of the market.

 It has well-established relationships with other powerful brands, including Coca-Cola, Colgate

Palmolive and General Mills.

 Nestle owns some of the world’s most recognized and trusted brands. Some families have used

its products for generations. Gerber has historically been one of the most trusted brands of baby

food in the United States.

 It has strong research and development capabilities that are growing.

 Nestle has strong relationships with retailers.

 It includes well-established brands with a large amount of market share in some of the largest

national economies, including Europe and the United States.

WEAKNESSES

 Much of its sales depend upon a few well-recognized brands. This makes the company

vulnerable to any sudden changes in consumer behaviour.

 Grocery sales in some major markets are increasingly concentrated in the hands of a few giant

retailers such as Walmart and Kroger in the United States and Tesco in the United Kingdom.

These companies have the ability to force sharp reductions in price. Some of these retailers are

intent on supplementing name brand products with more-profitable house brands.

 Some of its brands, such as Carnation milk, are not tailored to modern lifestyles and are seen as

old-fashioned by some customers.

 The company is heavily dependent upon advertising to shape consumer opinion and drive

traditional sales. This can lead to high marketing costs with a questionable return on investment.

 There is a high cost for launching new brands to supplement older, less-fashionable food

products.

Strength and weakness are linked to the external macro factors

Strength and weakness of the organization are linked with the external macro factors because in

some cases organization may be affected by the outside factors. Organization is not able to

identify various factors that affect the management decision making directly and indirectly. So

this macro factors can be identified with the help of external macro factor analysis. Strength and

weakness are the opposite factors that give power and weakness to the organization. Proper

analysis of these two factors gives different kind achievement to the business. Both the factors

are interrelated to each other and they may increase the risk of external macro factors in the

organization. Macro factors may affect the organization from outside boundaries of the

organization and affects the business in positive and negative way. Macro factors are analyzed

with the help of PESTEL analysis like political factors may affects the organization in political

ways like government pressure thus organization it increases the weakness of business. Social

factors may affect the business in negative way like CSR responsibility of the organization thus

business is liable to do social activities (Tong.et.al.2015). Social responsibility is the duty of

every business and in financial terms it can be weakness for the organization. PESTEL analysis

facilitates Hotel Marriott to evaluate the external factors and try to find the suitable alternative in
order to overcome this kind of hurdles. External factors consists competitors policy, market

changes, government policy, legal rules and regulations etc.

Task 10

What is a SWOT analysis?

S.W.O.T. is an acronym that stands for Strengths, Weaknesses, Opportunities, and Threats. A

SWOT analysis is an organized list of your business’s greatest strengths, weaknesses,

opportunities, and threats. Strengths and weaknesses are internal to the company (think:

reputation, patents, location). You can change them over time but not without some work.

Opportunities and threats are external (think: suppliers, competitors, prices)—they are out there

in the market, happening whether you like it or not. You can’t change them. Existing businesses

can use a SWOT analysis, at any time, to assess a changing environment and respond

proactively. In fact, I recommend conducting a strategy review meeting at least once a year that

begins with a SWOT analysis. New businesses should use a SWOT analysis as a part of their

planning process. There is no “one size fits all” plan for your business, and thinking about your

new business in terms of its unique “SWOTs” will put you on the right track right away, and

save you from a lot of headaches later onto get the most complete, objective results, a SWOT

analysis is best conducted by a group of people with different perspectives and stakes in your

company. Management, sales, customer service, and even customers can all contribute valid

insight. Moreover, the SWOT analysis process is an opportunity to bring your team together and

encourage their participation in and adherence to your company’s resulting strategy. A SWOT

analysis is typically conducted using a four-square SWOT analysis template, but you could also

just make lists for each category. Use the method that makes it easiest for you to organize and
 understand the results. I recommend holding a brainstorming session to identify the factors in

each of the four categories. Alternatively, you could ask team members to individually complete

our free SWOT analysis template, and then meet to discuss and compile the results. As you work

through each category, don’t be too concerned about elaborating at first; bullet points may be the

best way to begin. Just capture the factors you believe are relevant in each of the four areas.

Once you are finished brainstorming, create a final, prioritized version of your SWOT analysis,

listing the factors in each category in order of highest priority at the top to lowest priority at the

bottom.

Here are a few questions that you can ask your team when you’re building your SWOTanalysis.

These questions can help explain each section and spark creative thinking.

Strengths

 What business processes are successful?

 What assets do you have in your team, such as knowledge, education, network, skills, and

reputation?

 What physical assets do you have, such as customers, equipment, technology, cash, and patents?

 What competitive advantages do you have over your competition?

Weaknesses

Weaknesses are negative factors that detract from your strengths. These are things that you might

need to improve on to be competitive.

 Are there things that your business needs to be competitive?

 What business processes need improvement?

 Are there tangible assets that your company needs, such as money or equipment?

 Are there gaps on your team?

 Is your location ideal for your success?

Opportunities

Opportunities are external factors in your business environment that are likely to contribute to

your success.

 Is your market growing and are there trends that will encourage people to buy more of what you

are selling?

 Are there upcoming events that your company may be able to take advantage of to grow the

business?

 Are there upcoming changes to regulations that might impact your company positively?

 If your business is up and running, do customers think highly of you?

Threats

Threats are external factors that you have no control over. You may want to consider putting in

place contingency plans for dealing them if they occur.

 Do you have potential competitors who may enter your market?

 Will suppliers always be able to supply the raw materials you need at the prices you need?
 Could future developments in technology change how you do business?

 Is consumer behaviour changing in a way that could negatively impact your business?

 Are there market trends that could become a threat?

Task 11

Critical Impact of Macro factors on the strengths and weaknesses of Nestle

Governments can use a spectrum of policies from voluntary to mandatory. These include a bill

(proposed law), law/act/statute (approved by legislative and executive branches), agency

implementation (interpretation, application, regulation), court decision, guideline

(recommendation, not mandatory), or directive (internal to an institution).By their nature, public

health concerns such as nutrition are multi-factorial. Even single or simple interventions induce

effects within complex webs of interactions. We focus on policies directly targeting nutrition

rather than more indirect mechanisms related to, for example, trade, farming, food waste, general

education, and economic empowerment. Each policy strategy can be classified according to

different related characteristics that need to be considered and defined in government policy

design.

Local and national governments have important roles in bringing healthier food and food

security to their populations. However, the path from knowledge to effective action requires

capacity in several areas. To our knowledge no country has implemented a full range of updated,

comprehensive, and evidence informed strategies to encourage a healthier and more equitable

food system . Given the remarkable health and economic burden of diet related illness and the
need for multi-stakeholder solutions, a coordinated national food and nutrition policy strategy

should be a priority for all governments.

Government must have appropriate knowledge to translate evidence into policy action. This

includes an evidence based assessment of what defines a healthy diet; an understanding of diet

related health and risk distributions overall and in at-risk subpopulations; analyses of how poor

diet affects non-health sectors such as private businesses or the military; and consideration of

environmental and societal values such as sustainability, equity, and justice. Insufficient

awareness of policy makers of these factors can be compounded by evolving science and

conflicting media messages. For example, some policy strategies continue to emphasis reduction

in total fat, total saturated fat, or total calories, rather than food type and quality, processing

methods, additives, and diet patterns. New metrics are needed that allow the healthiness of food

products to be compared on multiple nutrient criteria.37 In addition, tackling obesity is sometimes

seen as the only goal of nutrition policy and programming, rather than improved diet quality and

overall health and wellbeing. The evidence to support policy interventions is also different from

that for interventions delivered to individuals. Interventions on high risk individuals can often be

studied in randomized placebo controlled trials; in contrast, policy interventions on populations

often cannot. Thus, predictive modeling, observational, quasi-experimental, and interventional

studies, and surveillance data must feature more heavily in the standards of evidence required for

policy change. Government must have the capacity to intervene. This includes having an

evidence informed plan, access to technical experts for implementation and evaluation, and

adequate resources and authority to act in the required areas. For many governments, developing

a comprehensive nutritional policy will be new and unfamiliar, and require acknowledgement of
certain limitations of the current system. The expertise to combine and phase different policy

approaches can be lacking. Jurisdiction and funding for different aspects of policies may be

spread across government sectors and ministries, which may share unequally the costs and

benefits. Budgets for technical policy work on nutrition are often tied to resources allocated for

the prevention of chronic diseases, which is underfinanced given their health and economic

burden. Surveillance systems for monitoring and evaluating nutrition trends and disparities are

under resourced. For some promising policy actions, relevant data demonstrating the links

between food policies and health, healthcare costs, disparities, and economic problems are often

unavailable to policy makers at the right time or in the right format for policy action.

Government must have the will to act and the governance and partnerships to support action.

This requires support from civil society and relevant private and other non-government actors to

implement and sustain appropriate policies. Political willingness to act can be undermined by

several factors. For example, factors driving government food production policy (e.g.,

employment, short term business profits, and international competition) may be different from

those driving nutrition policies (eg, health and healthcare costs). Although dietary shifts can have

rapid effects on health, the perception that dietary interventions require long periods to achieve

benefits may not coincide with political and budget cycles. Public opinion may also not support

policies seen as intrusive. Identified dietary priorities may not match public priorities and

sentiment, agency authority for action. Industry opposition can be a major barrier, including

political lobbying and marketing campaigns to fight policies they consider unfavorable. When

policies are passed, lack of implementation because of limited resources, management, and

accountability can greatly limit their effect, as in the case of school food standards in Mexico or

quality standards to limit industrial transfers in India.

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