The document discusses Nestle's external environment including demographic, economic, political, legal, social/cultural, and technological factors. It also discusses Nestle's internal environment and how departments work to achieve organizational goals. Additionally, it examines Nestle's microenvironment including suppliers, marketing intermediaries, and customers for its Pure Life water brand. While macroenvironmental factors like political, cultural, and economic conditions can impact companies, the document states they do not affect Nestle Pure Life water as it sells necessities rather than luxury items.
The document discusses Nestle's external environment including demographic, economic, political, legal, social/cultural, and technological factors. It also discusses Nestle's internal environment and how departments work to achieve organizational goals. Additionally, it examines Nestle's microenvironment including suppliers, marketing intermediaries, and customers for its Pure Life water brand. While macroenvironmental factors like political, cultural, and economic conditions can impact companies, the document states they do not affect Nestle Pure Life water as it sells necessities rather than luxury items.
The document discusses Nestle's external environment including demographic, economic, political, legal, social/cultural, and technological factors. It also discusses Nestle's internal environment and how departments work to achieve organizational goals. Additionally, it examines Nestle's microenvironment including suppliers, marketing intermediaries, and customers for its Pure Life water brand. While macroenvironmental factors like political, cultural, and economic conditions can impact companies, the document states they do not affect Nestle Pure Life water as it sells necessities rather than luxury items.
The document discusses Nestle's external environment including demographic, economic, political, legal, social/cultural, and technological factors. It also discusses Nestle's internal environment and how departments work to achieve organizational goals. Additionally, it examines Nestle's microenvironment including suppliers, marketing intermediaries, and customers for its Pure Life water brand. While macroenvironmental factors like political, cultural, and economic conditions can impact companies, the document states they do not affect Nestle Pure Life water as it sells necessities rather than luxury items.
The passage discusses the external and internal environments of Nestle as well as the microenvironment including suppliers, marketing intermediaries, and customers.
The external environmental factors discussed include demographic factors, economic factors, political factors, legal factors, and social/cultural factors.
The elements of Nestle's internal environment discussed include employees, different departments like finance, operations, accounting, sales and marketing, and research and development.
EXTERNAL ENVIRONMENT
Demographic External factor
More the education more will be the awareness about brand and quality food.
If the income level of people is high then purchasing power will be high so they willpurchase more.
Nestle products are made for people belonging from all age groups.
Both male/female are included equally in its target market.
Economic environment
If the inflation rate is high then there will be decrease in purchasing power. so inflation indirectly affects the companys sale.
Nation varies greatly in its level and distribution of income.
Changes in major economic variables such as income, cost of living, interest rate andsavings have a large impact on the market place.
Political environment Government regulations to protect interest of society and from unfair business practices.
Unstable political conditions.
Law order situation getting worse.
Legal environment Registered in the stock exchanges of Pakistan.
Social/cultural environment Consumption behavior of Pakistani people is high so they consume more goods.
As Pakistan is Muslim country so we cannot add any ingredient which is prohibited in Islam or which is not Halal.
As nestle water is the branded item so the people who are brand conscious will prefer touse nestle water .so nestle is focusing more on the posh areas.
Technological environment Technological environment is changing rapidly.
Most dramatic force shaping companys offerings and the way product is marketed . Companys must keep up with technological changes to match up with its environment.
Internal Environment
In Nestle Internal environment ensures.
Employees are on side with the goals of an organization.
They have direct impact on product quality,dependability and overall productivity.
They are internal market, which impact everydepartment within an organization; asatisfied internalmarket will be better able to satisfy external market.
Nestle under the supervision of top management runs thedepartments of finance,operations, accounting, sales andmarketing, research and development to achieve thegoalsof organization.
Micro Environment In Nestle microenvironment includes: a)S u p p l i e r s : Suppliers provide the resources like labor and material resources to produce goods and services.They add to customer overall value delivery system. Labor supplies include handling of Quantity of labor Quality of labor Labor strikes Labor relations Material supplies deals with the: Quality of material Price of material Stability of material inputs Delivery delays
Nestle efficiently handles the quality, quantity, price and stability of both material and laborsupplies. Management maps out the strategies for labor strikes, supply short age sand delays toavoid increasing the cost of production, which can badly affect sales in short run and customersatisfaction in long run. b)Marketing Intermediaries: It includes the firms that help the company to promote, sell and distribute its goods tofinal buyers. The physical distribution firms determine the ways to store and ship goods to reach theirdestination. Marketing service agencies including marketing research firms, advertising agencies andmedia firmsare also hired to target and promote product to right market. Financial intermediaries like banks, insurance companies helps to finance transactionsand insureagainst risks associated with buying and selling of goods. Nestle works in coordination with marketing intermediaries to make its product Pure LifeWater available and visible to its valuable customers. c)C u s t o m e r s : Nestle deals with the reseller customers who buy the product Pure Life to resell at a reasonableprofit.
Macro Environment Macro environment include political, cultural, economical factors but as for as Nestle Pure LifeWater is concern none of above factors affect on it. Because it is not at luxury item they areselling necessities of life which can never be affected.