Environment and Nestle
Environmental analysis about Nestle Company
Nestle company, whose headquarter is located in Geneva, Switzerland, was set up by Henri Nestle in 1867 and it is the biggest food manufacturer in the world. Chocolate bar and instant coffee, as its star products, are well-known to the world. In this essay, firstly, we analyze two types of environments the Nestle company deals with. Then, its environmental uncertainty and how to manage the environmental uncertainty are stated. Lastly, adaptive and non-adaptive cultures about Nestle company are discussed.
Two types of environments
External Environment
The external environment comprises of two environments, the Mega and Task environments. The Mega environment is the general external environment in which organizations operate and exerts pressure on the organizations ability to achieve its Vision, Mission and Goals. The Task environment is also comprised of elements from the external environment which can directly affect the operations of the organization.（Business Management student manual, December 2011） Here are external environment that Nestle deal with.
Political environment.
Political issues are one of the major concerns for the company to operate in the country. Political status in many countries that Nestle entered is belongs to stability although there are existence of different language groups and cultural regions. With the political stability in the market, Nestle can actually maintain the sales or even boost up the sales, as the stability will actually bring economic growth, therefore, the consumer purchasing power will eventually growth due the improvement of living standard. For example, Nestle can actually enjoy the tax benefit compare to most countries of the EU and USA and can be enjoy by Nestle is the company can actually deduct the taxes from the income as an expense that relatively lower effective tax rate compare to most other countries where the taxes are not deductible(Colin, M, 2011).
Nestle company, whose headquarter is located in Geneva, Switzerland, was set up by Henri Nestle in 1867 and it is the biggest food manufacturer in the world. Chocolate bar and instant coffee, as its star products, are well-known to the world. In this essay, firstly, we analyze two types of environments the Nestle company deals with. Then, its environmental uncertainty and how to manage the environmental uncertainty are stated. Lastly, adaptive and non-adaptive cultures about Nestle company are discussed.
Two types of environments
External Environment
The external environment comprises of two environments, the Mega and Task environments. The Mega environment is the general external environment in which organizations operate and exerts pressure on the organizations ability to achieve its Vision, Mission and Goals. The Task environment is also comprised of elements from the external environment which can directly affect the operations of the organization.（Business Management student manual, December 2011） Here are external environment that Nestle deal with.
Political environment.
Political issues are one of the major concerns for the company to operate in the country. Political status in many countries that Nestle entered is belongs to stability although there are existence of different language groups and cultural regions. With the political stability in the market, Nestle can actually maintain the sales or even boost up the sales, as the stability will actually bring economic growth, therefore, the consumer purchasing power will eventually growth due the improvement of living standard. For example, Nestle can actually enjoy the tax benefit compare to most countries of the EU and USA and can be enjoy by Nestle is the company can actually deduct the taxes from the income as an expense that relatively lower effective tax rate compare to most other countries where the taxes are not deductible(Colin, M, 2011).
Bibliography: Castillo, G. 2007. How do enterprise adapt external environment. America: Greenwood Publishing Group, vo2.1, no.5, pp.67-89. Colin, M. April 14, 2011, ‘Nestle external environment’, Available from: http://www.studymode.com/subjects/external-and-internal-environment-of-nestle-company-page1.html. [Accessed 25 May 2013] Porter, M.E