Nestle: Macro Environment and Micro Environment Analysis Essay

External Evaluation of Nestle:

Nestle in the Global Environment:

Nestle are operating in over 135 countries and to understand the business environment they will operate in analysis on the external factors that rest outside the control over Nestle needs to be conducted (Grant et ing. 2011, 101). The application tasked with conducting an external analysis from the macro environment is PEST while the external micro environment will be analysed with the help of Porter's Five Causes. However it will be worth mentioning that Nestle is definitely not even so exclusively motivated by the mentioned factors below (Shaw 2004). Macro Environment Analysis:

PEST Research:

Political: Nestlé is a global company and in the food and beverage market one of the most critical factors to consider is globalization. According to Jose Lopez, Nestlé's Vp of businesses explained the effect of the positive effect on Nestle to continues to be very different by first predicted initially we all thought it meant growing countries opening up their markets but in hindsight it turned out that instead of being globalized we had to understand how to interact with global markets (Bell 2009, 10). One other factor to consider may be the impact restrictions has had in Nestle. The global food and beverage industry is one of the most highly controlled industries in the world. Nestle by way of example has had to face multiple divisions of rules when have inevitably affected their products (Nestle 2008). Monetary: Food can be described as basic man need and it is therefore a necessity for endurance. In financial terms this means that the basic demand for food will be high. Though food eating patterns may possibly change and vary from place to place. Nestle has adjusted to variations in preference and sensitivity to price in several places that it operated. One among Nestlé's model is opening up factories in different places that caters to the neighborhood market from the packaging, to pricing, to taste. Majority of these new factories are situated in expanding...

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