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| Words: 2058 | Submitted: 10-May-2011
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DescriptionMicro and Macro- Environment of Nestle
Every company which exist on the current market is dependent from the marketing environment. Nestlé is no exception. Micro and macro environment determines conditions in which Nestlé is functioning. Lots of changes in this organization during the last years were influenced by its marketplace. This essay describes function and structure of Nestlé marketing environment and answering how this organisation is responding to its changing environment by adapting their products.
2. Marketing environment of Nestlé:
Nestlé was founded by Henri Nestlé in 1866. It merged with the Anglo-Swiss Milk Company in 1905. One of Nestlé's strengths is their market leader position including in UK most popular brands such as Nescafé, Carnation, Buxton Water, Kit Kat, Ski, Shredded Wheat and Bakers Dog Food. Their development was running under influence of the marketing environment – macro and micro forces.
2a. Macro environment:
Political/Legal/Regulatory forces - these forces include: government regulations, legal issues, tax policies, food and production laws, political officials decisions, pressure groups opinions, trade associations, internal and external regulations and codes of practice. Nestlé's paying attention on political decisions, because company would lose million pounds of sales if tax has increase and in effect decrease customer demand. Legal forces influence Nestlé activities – specially procompetitive legislation - The Financial Services and Markets Act 2000 in UK and consumer protection laws like Fair Trading Act 1973 and The Food Safety Act 1990, which is base for all food legislation in England. The influence of the regulatory forces on Nestlé is also significant. These are agencies administered by governments and non-governmental organization. The Department for Environment, Food and Rural Affairs has responsibilities for environmental issues and food policies connected with Nestlé. Company strictly cooperating with Fairtrade to ensure that workers and farmers get a better training with increased income. Nestlé has strictly internal regulations concern on nutrition/health/safety, consumer communication, quality assurance, supplier and customer relations.
Economic forces - The state of the economy is changing over the world and is affecting also Nestlé. Changes in business cycle occur from prosperity through recession and depression to recovery (Dibb, 2009). During prosperity unemployment is low, total income is high so buying power is higher. Prosperity is the best period for Nestlé. They easily selling their products, consequently develop bright future for their business. In recession the unemployment rate expand and buying power declines because of loans and low-income. Despite this, for Nestlé is not only about keeping prices down and cutting costs – its long-term social and economic challenge by create value for shareholders and public. The inflation rates must also be careful monitored by Nestlé as if they don’t, company may miss chance of their expecting profit. Depression is the hardest for this company. During ...
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