Table of Contents
1.1 Identify the purpose of different types of organizations.
1.2 Describe the extent to which an organization meets.
Interest and the influence of different stakeholders.
1.3 Explain the responsibilities of an organization and strategies employed to meet them.
2.1 Explain how economic systems attempt to allocate resources effectively.
2.2 Assess the impact of fiscal and monetary policy on business organizations and their activities
2.3 Evaluate the impact of competition policy and other regulatory mechanisms on the activities of a selected organization.
3.1 Explain how market structures determine the pricing and output decisions of businesses.
Market structure can be determined by a number of factors:
However, the main ones are 3 factors
3.2 Illustrate the way in which market forces shape organizational responses using a range of examples.
3.3 Judge how the business and cultural environment shape the behavior of a selected organization.
4.1 Discuss the significance of international trade to UK business organizations.
4.2 Analyze the impact of global factors on UK business organizations.
Factor Could include:
4.3 Evaluate the impact of policies of the European Union on UK business organizations.
It is the key issue for an organization like Nestle to analyze and evaluate its business environment to gain organizational success. The business environment is classified as a macro-environment and micro-environment. The macro business environment includes several external issues such as political, economic, social, technological, legal, and environmental factors. The micro-business environment includes several internal issues of a business. This paper conducts a study on several environmental issues of a particular business named, Nestle. Nestle is a leading food company. However, it has been facing several challenges including poor performance in its current business environment and marketplace. Thus, this paper aims to analyze and evaluate the business environment of Nestle and provides solutions for Nestle to improve its performance.
Task 1 Understand the organizational purpose of business
1.1 Identify the purpose of different types of organization that Nestle caters for or have a business relationship with
There are different kinds of organizations in the current business world. The organizations are mainly classified as sole trader, public limited company, private limited company, government-run companies, partnership company, charity organizations.
Sole trader: the structure of a sole trader is very simple and easy to start. In this case, the business owner only registers the business name and start trading. This type of organization is established by a single person. All of the business activities are processed and managed by the business owner. The aim of this kind of company is to gain profit. The profits depend on the activities of the business. The owner needs to keep the risk and be able to lose money. The example of this kind of business are doctors, farms, service businesses, professional lawyers, small corner shops (Mullins, 2015).
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Partnership: this kind of company is owned by two or more people. The maximum number of partners can 20 in this kind of company. The partners in this kind of business have equal responsibilities, decision-making power, and share profits. Every partner has to pay tax. The main aim of this kind of business is to gain profits. The example of this kind of business is accounting firm, lawyers unite, doctors firm, etc (Mullins, 2015).
Private limited company: private limited companies are those which are non-government and are not listed in the stocks. These kinds of companies are owned by a small number of people. It can sell the business customers, friends, and family members but not to the general public. Thus, for raising fund it needs a director to deal with the lenders. This means the business is run by two or more directors. The aim of this company is to gain profit through excellent services and quality goods. An example of a successful private limited company is Virgin, UK (Mullins, 2015).
Public limited company: public limited companies are those which are listed in stock and public exchanges. Thus, this kind of company has the right to sell shares to the general public. This kind of company has limited liability but must have a number of directors (minimum two) and minimum share capital (£500,000). The example of a successful public limited company in the UK is Tesco, Boots, Sainsbury’s, Lloyds Groups, etc (Mullins, 2015)……………