ASSIGNMENT 1 FRONT SHEET

Qualification BTEC Level 4 HND Diploma in Business

Unit number and title Unit 1: Business and Business Environment

Submission date 6/12/2020 DateReceived1stsubmission

Re-submissionDate DateReceived2ndsubmission

Student Name Nguyen Anh Ngoc Student ID NgocNAGBD201682

Class GBD0902 Assessor name Phan Tran Phuong Trang

Student declaration

I certify that the assignment submission is entirely my own work and I fully understand the consequences of plagiarism. I understand that
making a false declaration is a form of malpractice.

Student’s signature

Grading grid

P1 P2 P3 M1 M2 D1
Summative Feedback:ResubmissionFeedback:

Grade: AssessorSignature: Date:

InternalVerifier’sComments:

Signature&Date:
Table of Contents
1/ INTRODUCTION ............................................................................................................................................................................... 4

2/ TYPE OF ORGANIZATION AND LEGAL STRUCTURE ..................................................................................................... 4

2.1 Definition of profit and non-profit organization ............................................................................................... 4

2.2 Definition of public and unpublic organization ................................................................................................. 5

2.3 Definition of private and stay-owned enterprised ........................................................................................... 6

2.4 Legal structure...................................................................................................................................................................... 6

3/ FUNCTION DEPARTMENT .......................................................................................................................................................... 7

4/ TYPE AND PURPOSE OF NESTLE COMPANY ..................................................................................................................... 8

4.1. Type ................................................................................................................................................................................................ 8

Nestle is a public company. It was incorporated in 1866 at Anglo-Swiss Condensed Milk Company. ........... 8

4.2. Purpose........................................................................................................................................................................................... 9

- - Vision:............................................................................................................................................................................................ 9

- - Mission: ...................................................................................................................................................................................... 9

- - Core value ................................................................................................................................................................................. 10

- - Objectives:.............................................................................................................................................................................. 10

- - Activities of the company ................................................................................................................................................ 10

5/ SIZE AND SCOPE OF NESTLE .................................................................................................................................................. 11

5.1. Size: ............................................................................................................................................................................................... 11

5.2. Scope: .......................................................................................................................................................................................... 12

- - Geographic
locations:……………………………………………………………………………………………………………………………… 12

- - Target customer: .............................................................................................................................................................. 14

6/ Nestle’s Organization Structure .......................................................................................................................................... 14

6.1. Advantages and Disavantages of Nestle’s structure ......................................................................................... 17

6.2. Evaluate department of Nestle ..................................................................................................................................... 18

7. CONCLUSION .................................................................................................................................................................................... 19
1/ INTRODUCTION
The business environment is the most critical part of a business. The business community's
attributes are its vendors, rivals, media, administration, consumers, economic trends, investors, and a
range of other externally operated entities. This report presents Nestle-a food and beverage company.
Nestle is the oldest and largest food, nutrition, fitness, and well-being system in the world. Created and
headquartered in Vevey, Switzerland. The fifth biggest company in the world according to its sales.
There are 522 factories present in 81 countries across the globe. Over 700 items have been renovated or
innovated over the last five years, with interest in mind.

2/ TYPE OF ORGANIZATION AND LEGAL STRUCTURE

2.1 Definition of profit and non-profit organization
Profit Non-profit
Profit business organizations - a sole (NPO) Nonprofit organizations are
proprietorship, partnership, or corporation organized for a public or interactive
organized to earn profits and enhance the advantage other than generating profit for
financial position of the owners (Averkamp, n.d.) owners or investors
The owners can decide to keep all the profit
themselves, or they can spend some or all of it on A nonprofit corporation can make a profit,
the business itself. Or, they may settle to share but this profit must be used harshly to
some of it with employees through the use of forward the goals rather than to provide
various types of reimbursement plans, e.g., earned income to its shareholders. Non-
employee profit-sharing. profit organizations are often used for trusts,
cooperatives, advocacy, charity,
environmental and religious groups. (Lester
M. Salamon, 1997)

Examples are banks, manufacturing companies Example: Red Cross, UNESCO, World
(Ford, Mitsubishi, Toyota), retail companies Wildlife Fund (WWF), etc
(Walmart), service companies and consultancies,
contractors etc. (Alan Edward)

2.2 Definition of public and unpublic organization

Public Unpublic
 Public organizations are expected to cooperate,
with nonprofit organizations and with citizen
groups and to use modern technology
strategically to manage and convey services.
They are under potent pressure to use resources
efficiently as markets and quasi-markets
influenced by global forces play a much greater
role in structuring service delivery. Within this
context public branches must manage human
resources accordingly, yet also humanely and
legally (Anthony, 1975)
Example: BBC, Post Office, National Health
Service
2.3 Definition of private and stay-owned enterprised
Private-owned
A private enterprise is a business that is not
dominated or owned by the government.
Including the means of manufacturing, is
owned by an individual or group of
individuals. Manage by owner and
professional managers. The term “private
enterprise” stands in contrast with a “private
company,” which is a company not
commerced on any public stock exchanges
and is privately held. Private enterprise is a
conservativist, market-based economy, rather
than a direction economy. (Tamplin, 2020)
 Example: Koch Industries, Deloitte, LEGO, etc.
2.4 Legal structure
The unpublicized companies have frequently
been debate in the literature on public
administration, politics, and economics.
Private firms are own by entrepreneurs or
shareholders, public agencies are owned
collectively by members of political
communities. (Boyne, 2002)
Example: Microsoft, HSBC, Nokia etc.
Stay-owned
State-owned corporations optimize social
welfare and ensure sustainable economic
growth. Owned and governed by the
Government. Operates in the basic and public
services industries. It can be directly or
indirectly owned by the government and
normally l supposed to engage in particular
business activities. The fundamental objectives
of state-owned enterprises are to serve the
people and help to establish a state of
industrialization in the country.
Example: BIDV, Vingroup, Vietnam Airlines,
Petrolimex and so on.
 Sole trader
 A sole trading organization is
a business that is owned by
one individual. Accounting
reports shall be submitted
primarily for use by the
owner, and occasionally for
inspection by third parties at
the personal expense of the
owner. For example, before a
loan amount is issued, the
owner will be asked to
include a copy of the most
current company financial
statements. Unlike other
types of business
organization, there is no
requirement to retain
records of serving the
function of stewardship, as
the owner would usually be.
(Limmack, 1985)
Example: Street vendor,
barber shop, Hairdresser and
so on.
3/ FUNCTION DEPARTMENT
Marketing
Partnership Limited company
A business partnership is a Limited Companies are
legal relationship that is companies of limited liability.
most often developed by a Ensures that the owners of the
written contract between corporation are entitled to what
two or more individuals or they have spent in an
corporations. Partners organization. The company and
spend their money in the its members are independent. A
company, and each partner limited partnership is a business
proceeds from any gains owned by the founders, but the
and retain part of any directors of the company
losses. managed it. Limited Companies
Partnership as a company can be either private and public
must also be licensed in all companies.
states where it works.
/ Each
state can have a variety of
different forms of
relationships that you can
establish, so it's essential to
know the possibilities
before you file. (Murray,
2020)
Example: BMW & Louis Example: Google, Facebook,
Vuitton, Nike & Apple and Apple, etc.
so on
Accounting Human Resources
The marketing department Part of the management of Capital comprises all the tools
appears to be responsible for the company responsible that the organization uses to
raising product visibility and for filing the financial generate revenue. Social resource
producing high-quality leads statements, managing the or individuals working in an
for the sales staff. general accounts, collecting organization are the most
"Marketing-qualified lead" is expenses, billing clients, valuable resources. Human
a lead that passes the salaries, expense control, resource management is the
requirements set out by the financial reporting, and practice of employing people,
marketing department. Sales- more. The head of the educating them, compensating
qualified lead adds to the accounting department also them, establishing rules on the
initial stipulations set out by carries the title of the workplace and developing
marketing to help find the controller. (Averkamp, 2020) strategies for retaining
highest-value prospects. employees. (Dias, 2012)
(Milano, Updated 2019)

4/ TYPE AND PURPOSE OF NESTLE COMPANY

4.1. Type
Nestle is a public company. It was incorporated in 1866 at Anglo-Swiss Condensed Milk Company.
The Nestlé Group’s net profit rose from about 7 billion in 2017 to roughly 13.7 billion Swiss Francs
in 2019. Nestlé is one of the world’s largest food and beverage companies, accounting for over 2000
brands in over 180 countries.
 Figure 1 Nestle's overview (Anon., 2020)

Figure 2: Consolidated income statement sheet in 2019 (Nestle, 2020)

4.2. Purpose
- Vision:
Nestlé has become highly convinced that food and beverage choices can affect life. They are
determined to make their products tastier and healthier and to provide more options for global
consumers.

Nestlé's unmatched R&D, diet research, and creativity, as well as high levels of nutritional
safety, are the cornerstone of its extensive product range. With this in mind, we will see that Nestlé
hires a team of experts, engineers, nutritionists, planners, regulators, and members of customer
care. Nestlé will meet the aims by being the global leader in nutrition, fitness, and well-being from
all its partners to corporate financial stability and solid faith.

(A.Lee, 2014)

- Mission:

The mission and conduct of the business are part of the the term "Good Food, Good Life,"
which summarizes the ambitions, including its company. To achieve these aims, Nestlé is committed
to empowering its people to produce a high degree of success and to building long-term and short-
term entrepreneurial action through continuous motivation. (Nestle, 2020)

There are three major points: Boosting health, improving lives, improving communities

- Core value

Nestle core values are “full legal compliance, honesty, fair dealings, integrity, and respect.” It
is not a wonder that Nestle has managed to cultivate positive practices among all its staffers in all
corners of the globe. These guiding principles encourage doing things right while adhering to the
approved processes. It also emphasizes on the presence of proper interrelationships between
different parties as well.

- Objectives:
Nestle's objectives: "Marketing objectives are compatible with Nestle's overall strategic
objectives. The company's goal is to be the world's largest and best-branded food producer, thus
ensuring that the name of the nest is synonymous with the highest quality products." The business
objective of Nestlé is to develop and deliver the brand. Products in such a way as to
build value that can be maintained over time Long term for shareholders, staff, customers, and
businesses collaborate. (Nestle, 2017)

- Activities of the company

Operational and financial results increased dramatically for the second straight year. Nestle's
organic growth was 3.5%. Proper internal development has risen to 2.9% for the full-year, the
fastest amount of the last six years. Profitability increased again to meet Nestle's goal range one
year ahead of schedule. Cash flow was high, while the underlying earnings per share and dividends
to shareholders were recorded.
Across the globe, Nestle delivers safe, delicious, versatile items for urban, time-constraint
lifestyles. Nestle's range comprises goods in appealing and increasing segments, providing options
for all life phases at every moment of the day.
 Figure 3. Organization Structure of Nestle

5/ SIZE AND SCOPE OF NESTLE

5.1. Size:

Nestle is a global food and beverage company. It sells products and services in a wide variety o
f areas, including powdered and liquid drinks, diet and health sciences, milk products and ice cre
am, pet care, packaged dishes and cooking aids, confectionery and water. The company's major b
rands include Nescafé, KitKat, Nespresso, Maggi, Toll House and Milo.
According to the consolidated balance sheet as of December 31, 2019, the total asset was
127.940.000 CHF, the total liabilities was 41.615.000 CHF and the total equity 52.862.000 CHF.
 (Nestle, 2020)

Figure 4. Organization Structure of Nestle

5.2. Scope:
- Geographic locations: With over 290,000 workers, Nestle's goods sell in 187 countries and
the world's leading food and nutrition testing agency, Nestlé has national capital and local
know-how to have a meaningful difference on the scale.
 Asia & Oceania is an area of incredible diversity and boundless possibilities. With over a
century of experience in the country (and a staff of over 110 nationalities), Nestlé has
 developed itself as an iconic household company with renowned food and beverage
brands such as Milo, Nido, Maggi and Bear Brand.
 In Africa and the Middle East, Nestlé colleagues hail from different cultural, social and
economic backgrounds – a diversity that Nestle proud of. Some of the brands we produce
in the region include Maggi, Nestlé Cerelac, Nestlé Pure Life, Nescafé and the new Kit Kat
Lotus.
 Nestlé originated in Europe. They operate in 39 different countries across the continent.
Over 80 000+ employees are all dedicated to delighting consumers with iconic brands
such as KitKat, Nescafé, Nespresso, Purina, S. Pellegrino and Maggi.
 In 2019, the Nestlé Group obtained almost half of its global sales in the Americas –
the region is home to four of our ten largest markets.
(Nestle, 2020)
 Figure 5 Sales by geographic areas (Nestle, 2020)

- Target customer:
 Every person, of any age group, gender etc is the target customer of Nestle
 Nestle target its customers by knowing customer needs and demands. For this purposes
it made customer profile

6/ Nestle’s Organization Structure

- The chart below provides a summary of Nestlé's management system. Nestlé's global
matrix/hybrid organizational structure helps the group to function safely and
economically. It is better shown where commodity standardization and geographical
 distribution are matched, and efficient coordination of the allocation of resources is
accomplished. Nestle use global matrix structure because Nestle is a global organization.
There are many departments such as financial, Nestle water, Zone AOA and others in
global organization.

Figure 6. Sales by geographic areas

- The company's executives are the Board of Directors. The Chairman of the Board and Chief
Executive Officer are responsible for the company's activities. Four boards support the
Board of Directors in corporate governance, plus the Chair and the Chair. Corporate
 Governance Committee, Compensation and Appointment Committee, Assessment
Committee and Finance Committee. The Board, chaired by Chairman Peter Brabeck-
Letmathe, has 14 members to oversee various aspects of the global industry.

- In the Organization Chart, we can see that the administration of Nestle is often classified
into three categories of top-level management, middle-level management and low-level
management.

Top Level of Middle level of Low level of

Management Management Management
 The top management  Branch managers and  The lower level is also
is the final point of departmental managers known as the
authority and are at the middle level. operational/superviso
 the goals and  They are responsible for ry level of
strategies of the the top management of management.
program are being the operation of their  They advise and guide
followed. department. workers on day-to-
 It devotes time to  They enforce the day tasks.
organizing and organization's strategies  They are responsible
managing functions. in compliance with for the quality and
 Top management of  the policies and quantity supplied.
the company's diverse instructions of the top  They are also
priorities and goals. management. responsible for
 It includes the  They make preparations establishing a healthy
necessary guidance for the organization's relationship within
for the planning of sub-units. the organization.
subdivision processes,  They understand and  They express
plans, budgets, etc. clarify strategies from problems, ideas,
 It prepares strategic top-level to lower-level advice, etc., to staff.
policies and plans for management. (Nestle 2012)
 the program.
 The top management
is also responsible for
the stockholders for
the performance of
the initiative.
 They are also responsible
for encouraging lower-
level administrators to
boost performance.

https://www.ukessays.com/essays/management/nestle-system-and-organization-structure
- As Nestle objectives are to be known as a global leader in Nutrition, Wellness, Health,
the matrix structure aims to integrate workers with a unified set of corporate goals
that will accelerate the accomplishment of the targets of the organization. These
objective demands from employees a combination of long-term motivation required
to build up the requisite standard of success for future and short-term company
behaviour.

6.1. Advantages and Disavantages of Nestle’s structure

- Advantages:
 Nestlé has a very tight, stable and efficient internal management structure.
 The Quality Assurance System is another platform implemented by Nestlé to
ensure internationally high-quality raw products, food safety and compliance
with quality requirements.
 Nestlé has mature product lines and stable technology so that they can find
low-cost production within countries and satisfy diverse marketing and sales
demands across countries.
 Nestlé can tailor its products to suit individual needs and to establish closer
client connections.

Disavantages:

 The weakest links are matters they are unable to control.

  The most common concern is the sources of origin of raw materials. This is
attributed to an unexpected and sudden rise in demand, which will lead to
severe supply shortages for commodities and will result in significant price
rises.
 The mistake of the instructions received in the record. No organization will
ever reach the zero imperfection criteria, particularly in the food and beverage
market.

6.2. Evaluate department of Nestle

- Work effectively: Corporate Communications
 Nestle has been one of the leading food and drinks businesses in the world for more
than 20 years. Corporate Communications department plays an important role as a
guiding force in the heart of Nestlé. It operates in close collaboration with other
divisions and teams to carry out an internal viewpoint, to engage constructively and to
help shape our company's commitment agenda.
 Facing the covid 19 epidemics, safe consumer goods are favoured, and food reserves
have also increased according to family needs. In 2020, nestle acquires startup Freshly
to serve the disease situation.
 Nestlé and Starbucks have agreed to a permanent global license for Starbucks
Consumer Packaged Goods and Foodservice brands. "This global coffee collaboration
with Nestlé is a significant strategic milestone for the growth of Starbucks," said Kevin
Johnson, President and CEO of Starbucks. This deal will strengthen the position of
Nestlé in the US where they are ranked 5th with nearly 5% share of the US coffee.
(Nestle, 2018)

- Works badly: Marketing and Sale Departments

 Because of Covid 19 pandemic, total registered revenue declined by 6.2 per cent to
CHF 20.8 billion (3M-2019: CHF 22.2 billion). Net purchases and divestments decreased
revenues by 4.7 per cent; foreign exchange reduced sales by 5.8 per cent. (Nestle, 2020)
  In a statement, the manufacturer of chocolate bars Kitkat and Nestle coffee is told
revenue growth itself (not including currency fluctuations, active mergers and acquisitions)
they were slow from 4. 3% in the first quarter of 2020 to 1.3% in the second quarter of 2020.
(Hang, 2020)
7. CONCLUSION

This report writes about the general theory of business environment and applies to Nestle
company. We evaluated specifically the size, scope, organization structure and purpose of the entity.
Furthermore, we carried out evaluations for Nestle. Different websites and books from various
sources that we have a report on Nestle that leads to conclusions and comments.
References
A.Lee, D. M., 2014. Human Resource Management. s.l.:s.n.

Anon., 2016. Two Basic Types of Organizations: For-Profit (Business) and Nonprofit.
Available at: https://managementhelp.org/organizations/types.htm

Anon., 2019. How to Start a Nonprofit Organization / Corporation – Definition & Examples.
Available at: https://companiesinc.com/start-a-business/non-profit/

Anon., 2020. Economics is awesome textbook.

Available at: https://sites.google.com/site/economicsisawesometextbook/limited-companies

Anon., 2020. Nestlé General Information.

Available at: https://pitchbook.com/profiles/company/11591-65#overview

Anthony, R. N. a. H. R. E., 1975. Management Control in Nonprofit Organizations. Homewood, IL: R. D. Irwin:
s.n.

Averkamp, H., 2020. Accounting department definition.

Available at: https://www.accountingcoach.com/terms/A/accounting-department

Averkamp, H., n.d. AccountingCoach.com.

Available at: https://www.accountingcoach.com/terms/F/for-profit-organization

Boyne, G. A., 2002. Public and Private Management: What's the Difference?. s.l.:s.n.

Dias, L. P., 2012. “The Role of Human Resources”.

Available at: https://2012books.lardbucket.org/books/beginning-management-of-human-resources

Dr. Mark A.Lee, 2014 . Organizational Design and Structure.

Available at:
http://imba.tjufe.edu.cn/__local/E/FF/41/0768DE2F22A3FF59F3BD86E8D7C_09CFBC16_8A3D8.pdf?e=.pdf

Environment, b., 2019. Introduction to Business Environment.

Available at: https://www.toppr.com/guides/business-environment/introduction-to-business-
environment/

Hang, M., 2020. Nestle hạ dự báo tăng trưởng doanh thu năm 2020.
Available at: https://bnews.vn/nestle-ha-du-bao-tang-truong-doanh-thu-nam-2020/164395.html
[Accessed 30 july 2020].
identification, P. a. c., n.d. Problems and challenges identification.
Available at: https://www.ukessays.com/essays/management/nestle-system-and-organization-
structure.php

Kenton, W., 2020. State-Owned Enterprise (SOE).

Available at: https://www.investopedia.com/terms/s/soe.asp
[Accessed 30 September 2020].

Lester M. Salamon, H. K. A., 1997. Defining the Nonprofit Sector. s.l.:s.n.

Limmack, R. J., 1985. Forms of Business Organisation. s.l.:s.n.

Milano, S., Updated 2019. The Responsibility of a Sales & Marketing Division.
Available at: https://smallbusiness.chron.com/responsibility-sales-marketing-division-70451.html
[Accessed 8 March 2019].

Murray, J., 2020. What Is a Business Partnership?.

Available at: https://www.thebalancesmb.com/what-is-a-business-partnership-398402
[Accessed July 2020].

Nestle, 2017. Objective.

Available at: https://nestleblogcom.wordpress.com/2017/09/02/objectives
[Accessed September 2017].

Nestle, 2018. Nestlé and Starbucks close deal for the perpetual global license of Starbucks Consumer Packaged
Goods and Foodservice products.

Available at: https://www.nestle.com/media/pressreleases/allpressreleases/nestle-starbucks-close-deal-

consumer-packaged-goods-foodservice-products

Nestle, 2020. 2019 Annual Review, s.l.: s.n.

Nestle, 2020. 2019 finance statement, s.l.: s.n.

Nestle, 2020. About Us Nestle.

Available at: https://www.nestle.com/aboutus/strategy

Nestle, 2020. Annual review 2019, s.l.: s.n.

Nestle, 2020. Nestlé reports three-month sales for 2020, provides COVID-19 update.
Available at: https://www.nestle.com/media/pressreleases/allpressreleases/three-month-sales-2020
[Accessed 24 april 2020].

Nestle, 2020. Our job locations. Available at: https://www.nestle.com/jobs/locations

Nestle, 2020. Understanding Nestle. Available at: https://www.nestle.com/investors/overview

[Accessed 2020].

Tamplin, T., 2020. financestrategists.

Available at: https://www.financestrategists.com/terms/private-enterprise/

[Accessed 23 July 2020].