FACTORS AFFECTING

BUSINESS ENVIRONMENT

PRESENTED BY:EC-4

4x4x4 ROADMAP OF NESTLE

KEY FACTORS OF BUSINESS

ENVIRONMENT
MACRO FACTORS
MICRO
1. Physical or ecological
FACTORS
1. Philosophy of business
enterprise
2. Way of working of
enterprise
3. Type of ownership
4. Competitors
5. Customers/Clients
6. Suppliers
7. Marketing channel
8. Public

environment
2. Demographic
environment
3. Economic environment
4. Political or legal
environment
5. Socio-Cultural
environment
6. Technological
environment
7. International
environment

PHILOSOPHY OF BUSINESS
ENVIRONMENT

Consumers : Nutrition, Health and

Wellness , Quality assurance and product
safety , Consumer communication.
Human rights and labour practices :
Human rights in our business activities.
Our people: Leadership and personal
responsibility, Safety and health at work.
Suppliers and customers : Supplier and
customer relations , Agriculture and rural
development.

WAY OF WORKING OF ENTERPRISE

Working of various departments in
business Raw material
Manufacturing
Packing
Transport
Waste & disposal

COMPETITORS

Desire competitors
Genric competitors
Brand competitors
In Indian market Nestle is facing tough
competition with these brandsBritannia, Coffee day, Heritage foods,
Kwality.

CUSTOMERS/CLIENTS
Immediate customers
End customers
Food is local
Reason of longitivity
Nestle constantly try to get getting close
to their consumers. eg. spent three
days living with people in the suburbs
of Lima in Peru to understand their
motivations, decision making and
everyday aspects of their life.

 New ProductsClinutren, line of products for senior

citizens
Liquid based food for terminally ill.
Check on new trends and future
issues.
Nutrition

SUPPLIERS

Quality
Price
Reputation
Payment
Nestle has maintained a high quality
efficiency in handling the quality and
quantity of the two different supplies
i.e. labour supplies and material
supplies and hence the company has
been able to run its business smoothly
for more than 150 years.

MARKETING CHANNELS
Advertisement
Marketing research
Packaging & promotion
Distribution & transportation
The basic marketing strategy of the
Nestle was to develop brands for each
their product instead of focusing on
making brand value for the entire
company.
Be the leading multinational company in
food, nutrition and wellness.

PHYSICAL OR ECOLOGICAL
ENVIRONMENT

Natural Capital-Biodiversity
-Ecosystem Services
-Inert services
Nestles commitment towards nature Nestles approach-use of natural refrigerants
-Reduction of GHG emission

POLITICAL & LEGAL FACTORS

Risk factor
Increase or decrease in taxes
Impact on economy
Change in regulations
Political stability
In Saudi Arabia and United Arab
Emirates Nestle faces the Islamic Law
and has created the Nestle Halal
Committee to foresee the Halal products
produced by Nestle Malaysia.

TECHNOLOGICAL ENVIRONMENT

Innovation of technological products

Technological change
Creating destructions
Marketing
New methods of manufacture
Technology used in Nestle Healthier fats & Malt extraction

SWOT ANALYSIS
STRENGTH: Economical- low cost operators
Strong brand name- high level of market
shares
WEAKNESS: Entering into markets that are already mature
Lack of awareness
OPPORTUNITIES: Concentrating on these areas can increase sale
THREATS: Segments are being shared by competitors
Uncertain conditions will affect the sales.

IMPACTS OF MAGGI
Employees impact
Suppliers impacted
Impact on share market
Other noodles making companies
affected
Consumers
have
become
more
concious of their food eating habits.

SOCIO-CULTURAL ENVIRONMENT
What is Socio ? What is Cultural ? What
is environment ?
Environmental Analysis
Nestles approach
Types of product
Variety
COFFEE
CHOCOLATES
NOODLES

NESTLE BRANDS

QUIZ
1.In which European country did Nestle
originate ?
o France
o Austria
o Belgium
o Switzerland

2. Which of these was a trademark of giant Nestle

company?
o A cow feeding her calf
o A woman bottle-feeding a baby deer
o Lambs suckling from a mother ewe
o A bird feeding chicks in a nest

3. Name at least 5 products of Nestle

4. How many brands (approx.) of Nestle
are thereo500 to 1000
o1000 to 1500
o1500 to 2000
oAbove 2000
5. Headquarter of Nestle in IndiaoBangalore
oNoida
oGurgaon
oDelhi

THANK YOU