8/17/2019 57 _Nestle

1/18

CONTENTS

Section 1.................................................................................1

1. Economic System..............................................................1

Section 2.................................................................................3

2.1 Introduction.....................................................................3

2.2 Organization and Stakeholders....................................4

2.3 Responsibilities and Strategies....................................6

2.4 acroeconomic and !ompetition "olicy.....................7

2.# arket Structure$ arket %orces and "ricing...........9

2.& 'usiness and !ultural En(ironments.........................11

2.) International *rade$ +lobal %actors and European

,nion "olicies.......................................................................12

2.- !onclusion.....................................................................14

3. Reerences.......................................................................14

4. 'ibliography.....................................................................15

SE!*IO/ 1

8/17/2019 57 _Nestle

2/18

1. E!O/OI! S 0S*E 

Economic systems attempt to allocate and make eecti(e use o 

scarce resources eecti(ely O2.1

From the social welfare poit of !iew" a optim#m of allocatio of 

reso#rces is ecessar$ for the pro%#ctio of &oo% a% ser!ice to meet the

ee% of societ$ '(eeth" 1962). * or%er to allocate the reso#rces

e+ecti!el$ a str#ct#re% approach is ee%e% which is referre% as Ecoom$

s$stem. The s$stem is mail$ cocere% with relatioship ,etwee

allocatio of reso#rces" pro%#ctio of &oo%s or ser!ices" cos#mptio a%

%istri,#tio of e% res#lts. -ecisio of reso#rce allocatio i a ecoomics$stem is mail$ i#ece% ,$ role of &o!ermet or role of pri!ate /rms"

a#toom$ to ma0e choice" who ow reso#rces" a% the pro/t will ,e 0ept

,$ whom. The process of allocatio of reso#rces re#ires ta0i& a %ecisio

relati& to allocatio of the limite% reso#rces to meet the #limite% ee%s.

 This scarcit$ of reso#rces ea,les ecoomic s$stem to aswer three

f#%ametal #estios of ecoomic hat to pro%#ce ow to pro%#ce

For whom to pro%#ce.

5hat to produce This re#ires selecti& pro%#cts or ser!ices o#t of 

#limite% %ema% ,ase% o the priorit$ of cos#mers.

6o7 to produce8 This re#ires selecti& the pro%#ctio process which

will ,e most e+ecti!e i terms of &oo%sser!ices" cost a% e+ecti!e

#tilisatio of reso#rces.

%or 7hom to produce8 This %eals with the %istri,#tio of reso#rce a%

process is %i+eret ti %i+eret co#tr$. Somewhere it ca ,e o ee%

,asis or somewhere it is ,ase% o ,#$i& power of cos#mers.

ase% o the %e&ree of i!ol!emet of &o!ermet or pri!ate /rms i

allocatio of reso#rces" ecoomic s$stem ca ,e of three t$pes

Free 8ar0et Ecoom$ * this ecoom$ s$stem %ecisio of allocatio of 

reso#rces %o ot re#ires &o!ermet or state iter!etios. llocatio of 

8/17/2019 57 _Nestle

3/18

reso#rces is ,ase% o the mar0et forces of %ema% a% s#ppl$ which is

resposi,le to aswer all three :; ecoomic #estios. This is also

referre% as free eterprise ecoom$ s$stem or

8/17/2019 57 _Nestle

4/18

ma0e pro/t sates aims comm#it$ ,ee/t a% welfare. The role of 

&o!ermet i!ol!es relatio of laws a% cotrolli& #fair tra%i& a%

mar0et moopol$'o0ema" 199B). * a%%itio the pro%#ctio process will

,e %eci%e% ,$ state ,#t costs a% ,ee/t aal$sis maitaie% ,$&o!ermet. * a%%itio ,$ relatio a% !ario#s policies &o!ermet

cotrols or promotes the cos#mptio of pro%#cts. * this case

&o!ermet icrease% ta? for the pro%#cts which are ot ,ee/cial for

people a% limits the cos#mptio whereas pro!i%e s#,si%ies or more

iformatio o the pro%#cts ,ee/cial to people a% promote that

cos#mptio. owe!er more e?cessi!e cotrol of &o!ermet hi%ers the

process a% %emoti!ates wor0er a% pri!ate or&ai=atios. S$stem is i

f#ctio i all %e!elope% atio s#ch as S" (.

Fiall$ it ca ,e cocl#%e% that all the ecoom$ s$stem has its ow

a%!ata&e or %isa%!ata&e" howe!er mi?e% ecoom$ s$stem has the

,ee/ts of the ,oth the s$stem mar0et a% comma% ecoom$ s$stem. *

a%%itio 8i?e% ecoom$ s$stem re#ires iter!etio of ,it pri!ate a%

p#,lic /rma th#s it remo!es the moopol$ of either of these. S$stem is

a,le to ma0e pro/t while loo0i& for social welfare.

SE!*IO/ 2

2.1 I/*RO9,!*IO/ 

or&ai=atio %oes ot e?ist i !ac##m" it is s#rro#%e% ,$ %i+eret

e?teral a% iteral e!irometal parameters which shape the at#re

a% &rowth prospects of a i%#str$. These factors collecti!el$ calle%

,#siess e!iromet of a or&ai=atio. or&ai=atio is forme% with

a o,Decti!e which is i#ece% ,$ these e!irometal factors alo& with

the sta0ehol%ers of the compa$. * a%%itio a or&ai=atio &rowth is

e+ecte% ,$ !ario#s policies a% relatio forme% ,$ the &o!ermets

which has &reater impact o the prici& a% o#tp#t %ecisio ta0e ,$ the

i%#stries. * a%%itio e!irometal poll#tio a% %e&ra%atio ha!e

,ecome oe of the prime cocers of most of the co#tries which also

8/17/2019 57 _Nestle

5/18

relates the operatioal polic$ of a i%#str$. ith the icreasi&

competitio ,#siesses are mo!i& &lo,al which ot ol$ s#pports the

&rowth of or&ai=atios ,#t also acts as facilitator for the ecoomic

%e!elopmet of co#tr$. aper %isc#sses the strate&ies a% performaceof a m#ltiatioal or&ai=atio Nestle #%er the i#eces of these

,#siess e!iromet factors a% e!al#ates its o#tcome o the &rowth of 

the or&ai=atio.

2.2 OR+:/I;:*IO/ :/9 S*:

8/17/2019 57 _Nestle

6/18

Gol#tar$ Or&ai=atio These are ot owe% ,$ a$ oe ,asicall$

r# ,$ &ro#p of people or co#cil. These are o pro/ta,le

or&ai=atio committe% to ser!e people a% comm#it$ a% help

them i their ee%s witho#t a$ moetar$ &ai i.e ser!i& people ato cost. The$ &eerate f#%s from their acti!ities or f#%. E?ample

local co#cil" charita,le or&ai=atio.

Nestle is lea%i& i%#str$ i foo% ma#fact#ri& se&met a% li0e a$

other pri!ate or&ai=atio it also aims to ,e pro/ta,le as it is re#ire% for

the s#r!i!al of the or&ai=atio alo& with its core p#rpose of o+eri&

comm#it$ the ,est #alit$ #tritio#s foo% with s#staia,le a%

coti#o#s %e!elopmet. The or&ai=atioal &oals are sprea% thro#&ho#t

the or&ai=atio a% or&ai=atio relates e!er$ acti!ities a% %ecisio

with its core !al#es which ca ,e i%eti/e% ,$ compa$;s statemet

:>oo% Foo% >oo% life; 'Nestle" 2@14).

Eorts and success o /estle to meet the ob=ecti(es o dierent

stakeholders O1.28

Nestle primar$ itet is pers#a%e ,$ its sta0ehol%er o,Decti!e a% i or%er

to f#l/l those Nestle a%opts a strate&$ of Sta0ehol%er e&a&emet i

e!er$ acti!ities ,$ collecti& their fee%,ac0s a,o#t pro%#ct a% their

e?pectatios. This helps or&ai=atio to &ai ,etter #%ersta%i& of 

sta0ehol%ers; o,Decti!e a% ,ase% o those Nestle %eci%es its co#rse of 

actio. Sta0ehol%ers of Nestle icl#%e C#stomer" Emplo$ee" S#pplier"

Comm#it$ a% >o!ermet. Nestle meet the o,Decti!e of %i+eret

sta0ehol%ers i followi& maer

!ustomer Nestle is committe% to ser!e c#stomer with &oo%" safe a%

#tritio#s pro%#ct for which Nestle wor0s o e?tesi!e research a%

%e!elop pro%#cts #%er the health a% safet$ i%elies of the co#tr$ i

which it wor0s. * a%%itio compa$ emplo$ a%!ace techolo&$ to ha!e

cost e+ecti!e pro%#ctio so that pro%#cts are a+or%a,le ,$ each se&met

of societ$.

8/17/2019 57 _Nestle

7/18

Employees Nestle ,elie!es that emplo$ees are a ite&ral part of the

or&ai=atio a% meet their o,Decti!e ,$ o+eri& them health a% safe

e!iromet" a a%e#ate pa$ pac0a&e #%er &o!ermet polic$ of 

wa&es" pro!i%e them health a% safet$ traii& to protect them from a$#wate% #safe sit#atios" !al#es the ip#t &i!e ,$ emplo$ee a% treat

emplo$ees fairl$ witho#t a% fa!o#ritism or %iscrimiatio.

Supplier8 Compa$ f#l/ls the o,Decti!e of s#pplier ,$ resposi,le

so#rci& a% maitais a &oo% lo& term relatioship with them. *

a%%itio the$ also s#pport the %e!elopmet of farmer ,$ pro!i%i& them

a%!ace a&ric#lt#ral traii&s.

!ommunity * or%er to f#l/l the o,Decti!e of comm#it$ Nestle o+ers

 Do,s i %omestic mar0et ,$ i!esti& a% setti& #p the local

ma#fact#ri& plats. * a%%itio it ta0e !ario#s meas#res to 0eep

ecolo&ical ,alace a% safear% it from ha=ar%o#s impact.

+o(ernment8 Nestle wor0s #%er the &o!ermet relatio of the each

co#tr$ where!er it has ,#siess operatios. Nestle has icorporate% the

&o!ermetal relatio of e!iromet protectio i their ,#siessstrate&ies a% ta0e e!er$ possi,le actios for the protectio of 

e!iromet. s a o#tcome Nestle has starte% with s#staia,le ,#siess

practices a% form Nestle E!iromet 8aa&emet S$stem 'NE8S)" a

tool to moitor the ,#siess performace a% optimise al operatio to

sa!e eer&$. Eer&$ 8aa&emet a% coser!atio is aother approach

where Nestle is a,le to ma?imise the #tilit$ of Nat#ral reso#rces a%

ta0i& a% attempt to coser!e its. * a%%itio #%er ($oto rotocol of e!iromet cocers it ma%e e+ort to optimise a% impro!e pac0a&i&

process to re%#ce the plastic a% &lass cotet from material which

s#pporte% to re%#ce >ree ho#se &as '>> ) emissio a% cotri,#te i

cotrolli& e!iromet poll#tio.

ece it ca ,e o,ser!es that Nestle has met the o,Decti!es of %i+eret

sta0ehol%ers #pto &reater e?tet.

8/17/2019 57 _Nestle

8/18

s a or&ai=atio Nestle has !ario#s resposi,ilities to f#l/l which is

%isc#sse% ,elow

2.3 RES"O/SI'II*IES :/9 S*R:*E+IES 

/ES*E> Responsibilities and its strategies O 1.3

8/17/2019 57 _Nestle

9/18

which create a$ e&ati!e impact o social !al#es or o foo% choice of a

i%i!i%#al.

 En(ironment "rotection8

s a i%#str$ it has resposi,ilit$ towar%s comm#it$ a% &o!ermet to

safear% the e!iromet a% %o ot %ist#r, ecolo&ical ,alace. To f#l/l

this Nestle has starte% with s#staia,le ,#siess practices a% form

NE8S" a tool to moitor the ,#siess performace" Eer&$ 8aa&emet

a% coser!atio approach a% impro!e pac0a&i& process to re%#ce the

plastic a% &lass cotet from material which s#pporte% to re%#ce >>.

2.4 :!ROE!O/OI! :/9 !O"E*I*IO/ "OI!0  

Impact o ?scal and monetary policy on /ES*E O 2.2

>rowth a% performace of a or&ai=atio is i#ece% ,$ the

macroecoomic policies s#ch as moetar$ a% /scal policies forme% ,$

the &o!ermet with the p#rpose of cotrolli& iatioar$ co%itio i

co#tr$ which ca ,e raise% %#e to irrelar ow of moe$. Cotrol relate%

to iatio" e?cha&es rate" iterest rate" moe$ !al#atio is co%#cte%

#%er moetar$ policies '(orme%i a% 8eire"19B5) which ca a+ect

the &rowth of the Nestle. s a$ icrease or %ecrease i p#rchasi&

power" moe$ !al#atio or iatio a+ects a i%i!i%#al ,#$i& capacit$

a% ,#$i& patter as it %irectl$ impacts the commo%it$ prices.

Cose#etl$ it a+ects the sales a% pro/t of Nestle.

Fiscal policies are ,asicall$ forme% to collects the moe$ from

or&ai=atio or societ$ i the form of ta?es or a$ iterest. The moe$

eare% i this maer is f#rther #se% for social a% ecoomical

%e!elopmet of the co#tr$ s#ch ai health care" ifrastr#ct#re

%e!elopmet a% HJ- acti!ities 'r#ce a% T#ro!s0$" 1999). Fiscal polic$

is also resposi,le for promoti& health i the societ$ for which

&o!ermet icreases the ta? for the pro%#cts which has ill e+ect o

8/17/2019 57 _Nestle

10/18

societ$ i or%er to re%#ce cos#mptio. O the other ha% it &i!es

s#,si%ies the rate of health$ a% #tritio#s pro%#cts to icrease the

cos#mptio. * a%%itio it also eco#ra&es HJ- acti!ities ,$ &i!i&

&rats o it. Sice the Nestle operatioal acti!it$ a% pro%#ctio is relate%to foo% which is health$ a% #tritio#s it is positi!el$ a+ecte% ,$ polic$.

F#rther &rats o HJ- ,oosts the %e!elopmet acti!ities of Nestle.

 Eect o social 7elare and industrial policy initiati(es on /estle8

>o!ermet forme% social welfare a% i%#strial policies are ite%e% to

resol!e !ario#s iss#es face% ,$ comm#it$ ,$ miimisi& the a+ect of 

i%#strial operatio of a or&ai=atio o e!iromet a% societ$. *

a%%itio it eco#ra&es i%#stries to loo0 for the social ,ee/t a% relate

their acti!ities to it. For e?ample a e!irometal polic$ to relate the

>> emissio ,$ or&ai=atio res#lts i press#ri=i& i%#stries to ta0e

meas#res to optimise i%#strial operatios. s a impact Nestle has

starte% with s#staia,le ,#siess practices a% form Nestle E!iromet

8aa&emet S$stem 'NE8S)" a tool to moitor the ,#siess performace

a% optimise al operatio to sa!e eer&$. Eer&$ 8aa&emet a%

coser!atio is aother approach where Nestle is a,le to ma?imise the

#tilit$ of Nat#ral reso#rces a% ta0i& a% attempt to coser!e its. *

a%%itio #%er ($oto rotocol of e!iromet cocers it ma%e e+ort to

optimise a% impro!e pac0a&i& process to re%#ce the plastic a% &lass

cotet from material which s#pporte% to re%#ce >ree ho#se &as '>> )

emissio a% cotri,#te i cotrolli& e!iromet poll#tio.

8oreo!er the i%#strial polic$ of &o!ermet cotrols the mar0et

competitio a% moopol$ 'r#ce a% T#ro!s0$" 1999) which helps i

%e!elopi& the fair competiti!e e!iromet i mar0et.

Impact o competition policy and other regulatory mechanisms

O 2.3

( or&ai=atio performs #%er ( competitio polic$ of

Competitio ct '199B)"

Fair Tra%i& ct '1973)

8/17/2019 57 _Nestle

11/18

Eterprise ct '2@@2)

rimar$ ite% of these policies are to remo!e arti/cial a% false

competitio from mar0et which helps i %e!elopi& the fair competiti!e

e!iromet i mar0et'a$" 1993). * a%%itio #%er the E polic$ ( mar0et is ow ope for the forei& pla$ers which raise the ,ar of the

competitio a% promotes #se of a%!ace techolo&$" research a%

io!atio 'Gic0ers" 199B). %er these polic$ Nestle is pro&ressi& with

s#staia,le a% coti#o#s %e!elopmet a% pro%#ci& cost e+ecti!e

pro%#ct #si& a%!ace% techolo&$ a% HJ-. Other relator$

mechaism 'ise" 2@@@) of as Hace Helatios ct '1976) a%

8/17/2019 57 _Nestle

12/18

presece or a,sece of a$ s#pplier %oes ot ma0e a$ %i+erece i

mar0et competitio. Nestle is s#ch a or&ai=atio whose pro%#cts are

wi%el$ reco&i=e% a% it is ot eas$ to a!oi% its presece a% a,sece i

the mar0et. 8oreo!er Nestle is ot i#ece% ,$ mar0et price as it follows#iform prici& strate&$ th#s this mar0et str#ct#re %oes ot ma0e a$

i#eces o prici& a% o#tp#t %ecisio of estle.

onopolistic competition8  * this str#ct#re #mero#s seller are

a!aila,le with hetero&eeo#s or %issimilar pro%#cts ,#t pro%#cts ca ,e

s#,stit#te% ,$ the pro%#cts of other competitor th#s its poses hi&h threat

of s#,stit#tio 'Kip" 2@@7). -#e to %i+erece i pro%#cts" price ca ,e

relate% ,$ s#pplier ,#t the %e&ree of cotrol is less 'Cham,erli"1933).

 Threat of ew etrat is hi&h i this mar0et. Therefore o prici&

competitio will ,e i%eal for this str#ct#re. Nestle pro%#cts ca also ,e

s#,stit#te% ,$ its competitor a% follows #iform prici& strate&$ th#s this

mar0et str#ct#re is more s#ita,le for Nestle o#tp#t %ecisio.

Oligopoly * this str#ct#re !er$ few s#ppliers are a!aila,le which share

the lar&e portio of ,i& i%#str$ s#ch as &rocer$ i%#str$ i (. Therefore

price is more i#ece% with competitor;s price rather tha ,#$er power

a% iteral ri!alr$ is hi&h. * this str#ct#re cost a% ,arrier to ew etr$

is hi&h '8a?well" 1993). ro%#ct cre%i,ilit$ or other competiti!e forces

rather tha price or pro%#ct %i+eretiatio is ,ase of mar0et competitio.

 This str#ct#re is s#ita,le for Nestle as Nestle ca compete o its

io!ati!e pac0a&i& a% a%!ertisemet

onopoly * this str#ct#re a si&le s#pplier %omiates mar0et th#s othreat of s#,stit#tio ,#t hi&h etr$ ,arrier to etr$ which &i!e a s#pplier

complete cotrol o!er price. -#e to ,ei& oe ha!e f#ll cotrol o!er price.

Nestle has few ,i& competitors i the mar0et a% %oes ot ha!e cotrol o

price" therefore Nestle this str#ct#re will ot ,e i%eal for Nestle

performace.

Responses o /estle to market orces O 3.2

8/17/2019 57 _Nestle

13/18

 The strate&ic %ecisios of the compa$ are i#ece% ,$ !ario#s mar0et

forces which also shapes the performace of compa$. These forces ca

,e %ema%" s#ppl$" ri!alr$" e!irometal factor '-eeGo aile$" 2@@5).

* a%%itio impact of each of these factors ca !ar$ with the co#tr$ iwhich Nestle is operati&" as compa$ operates &lo,all$. Sice Nestle

co!ers foo% i%#str$ it is mire i#ece% ,$ social a% e!irometal

factors. Nee% a% foo% choices !ar$ from place to place th#s Nestle o+ers

pro%#cts ,ase% o the c#lt#re a% social ee% of the co#tr$ istea% of 

s#ppl$i& oe sta%ar%ise% pro%#cts. F#rther it compete i mar0et with its

s#staia,le a% e!irometal protectio strate&$ which &i!es compa$

competiti!e a%!ata&e.

2.& ',SI/ESS :/9 !,*,R: E/@IRO/E/*S 

'usiness and cultural en(ironments shape the beha(iour o 

/ES*E O 3.3

ccor%i& to aca%em$ st#%ies '-#ca" 1972) a or&ai=atioal ,eha!io#r

a% its strate&ic %ecisio to achie!e %esire% o,Decti!e is i#ece% ,$ its

e?teral e!irometal factors which i t#rs also i#eces the iteral

capa,ilit$ of the or&ai=atio. owe!er these factors cha&e rapi%l$ th#s

or&ai=atio re#ire% to ,e proacti!e to %eal the %$amicit$ of a

e!iromet 'Oto0iti J wo%#" 2@@3). These factors are %isc#sse% ,elow

#si& ESTE

8/17/2019 57 _Nestle

14/18

Economical8 Ecoomical factor s#ch as macroecoomic polic$" ta?"

iterest rate" moe$ relatio" i!estmet polic$" restrict the

e?pe%it#re of people which i#eces the &rowth of or&ai=atio as it

%irectl$ i#ece the pro%#ct prici&.

SocialA cultural Social c#lt#ral factor has maDor i#ece o the foo%

ma#fact#ri& i%#str$ as a i%i!i%#al foo% choice" cos#mptio a%

prefereces are i#ece% ,$ the societ$ i which perso sta$. * a%%itio

c#lt#ral %i+erece" reli&io a% %emo&raphic factors alter the ee% of the

perso. Th#s Nestle ee%s to o+er the pro%#cts meeti& the ee% of 

people ,elo&i& to %i+eret c#lt#re a% social ,ac0&ro#%. * a%%itio

peetrate mar0et it also re#ire% that Nestle ta0e care of the !al#e a%

,elief of societ$ ,efore creati& a$ promotioal acti!it$ a% cosi%er

their colo#r" laa&e a% st$le preferece i a%!ertisemet a%

pac0a&i&

*echnological *!etio a% pro&ress i techolo&$ has raise% the

e?pectatio of the societ$ as a res#lts Nestle emplo$s !ario#s ew

techolo&$ to pro%#ce cost e+ecti!e a% io!ati!e pro%#cts to meet the

c#stomer e?pectatios.

Ecological en(ironment ll co#tries are cocere% with icreasi&

&lo,al warmi& which shifte% the foc#s of all co#tries to Ecolo&ical

,alace a% protectio '8illi0e" 19B7). *t has maDorl$ i#eces the

strate&$ of Nestle a% as a res#lts Nestle has starte% with s#staia,le

,#siess practices a% form NE8S" a tool to moitor the ,#siess

performace" Eer&$ 8aa&emet a% coser!atio approach a%impro!e pac0a&i& process to re%#ce the plastic a% &lass cotet from

material which s#pporte% to re%#ce >>.

egal Compa$ wor0i& i a co#tr$ re#ire% to follow all le&al policies

of the co#tr$. This is similarl$ applica,le to Nestle. The le&al factors

which i#ece the strate&$ of compa$ are Chil% la,o#r act" Fair Tra%i&

ct" 8oopol$ polic$" ethical tra%i& act" Competitio ct a% Eterprisect.

8/17/2019 57 _Nestle

15/18

2.) I/*ER/:*IO/:  *R:9E$ +O':  %:!*ORS  :/9 

E,RO"E:/ ,/IO/ "OI!IES 

Signi?cance o International *rade O 4.18

*teratioal tra%e is the facilitator of ecoomic &rowth a% pro&ress of ( 

,#siess or&ai=atios ' -#%o!s0i$" 2@13). *t pro!i%es co#tr$ a

completi!e sta%i& amo& other co#tries a% also foster the process

&lo,al ecoom$ ite&ratio ,$ e?cha&i& &oo% a% ser!ices. The process

is si&i/cat for ( ,#siess or&ai=atio i followi& aspects

romotes ( ,#siess ori&iatio to *teratioal mar0et a%

s#pports mar0et e?pasio. llow to sell their pro%#ct i %i+eret co#tr$ tha local ,o#%aries

a% re%#ce reliace o local mar0et. ar of the competitio icrease which facilities the research a%

io!atio" a% i t#r or&ai=atio %e!elops ew io!ati!e a%

cost e+ecti!e pro%#cts accor%i& to c#stomer ee%s #si& a%!ace%

techolo&$ which &i!es competiti!e a%!ata&e to or&ai=atio. Or&ai=atio ca &et the opport#it$ coast a%!ata&e at %e!elopi&

co#tries where pro%#ctio cost will ,e less %#e to low la,o#r cost

'Elm#ti"2@@@). owe!er this has a%!erse impact o the emplo$met

of local mar0et as Do, shift to other co#tr$"

Impact o +lobal %actors O 4.28

or&ai=atio mo!i& to iteratioal mar0et will ,e ca#si& the

cha&es i %i+eret e!irometal factors of the or&ai=atio 'Ho=a%a"

2@@B). ece it is re#ire% to for a or&ai=atio form the strate&$ to%eal with cha&es i or%er to remai competiti!e i iteratioal mar0et.

EST metho%olo&$ will ,e appropriate to %isc#ss these factors.

"olitical olitical sceario a% policies a+ects the policies a% ,#siess

practice of a or&ai=atio 'O%ele" 2@@5) i which or&ai=atio is

pai& e?pe% their ,#siess. olicies which ca ha!e more i#ece

are Hace ct" Tra%e act" emplo$met polic$"

8/17/2019 57 _Nestle

16/18

Economical8 Ecoomical factor s#ch as macroecoomic polic$" e?cha&e

rate" ta?" iterest rate" moe$ relatio" i!estmet polic$" restrict the

e?pe%it#re of people which i#eces the &rowth of or&ai=atio as it

%irectl$ i#ece the pro%#ct prici&.

SocialA cultural Social c#lt#ral factors ha!e maDor i#ece o the

choice of a i%i!i%#al" cos#mptio a% prefereces. * a%%itio c#lt#ral

%i+erece" reli&io a% %emo&raphic factors alter the ee% of the perso.

 Th#s compa$ ee%s to o+er the pro%#cts meeti& the ee% of people

,elo&i& to %i+eret c#lt#re a% social ,ac0&ro#%. * a%%itio peetrate

mar0et it also re#ire% that a or&ai=atio ta0e care of the !al#e a%

,elief of societ$ i their a%!ertisemet a% pac0a&i& strate&$.

*echnological *!etio a% pro&ress i techolo&$ has raise% the

e?pectatio of the societ$ as a res#lt compaies are re#ire% to emplo$

!ario#s ew techolo&$ to pro%#ce cost e+ecti!e a% io!ati!e pro%#cts

to meet the c#stomer e?pectatios.

Implications the company entering to E, O4.3

E#ropea io 8em,ership has a wi%er implicatio o ,oth ( ecoom$

a% ( ,#siess or&ai=atio as follows

ei& part of E" ( ecoom$ is ow part of ,i&&est si&le ecoom$

'arriso" 2@1@). E polices aim to cotrol i%#strial e!irometal policies th#s it

i#eces the ,#siess practice of ( ,#siess or&ai=atio #%er

($oto protocol. s a res#lts Nestle has a%opte% s#staia,ilit$

practice to re%#ce >> emissio 'Nestle" 2@12). E polices aim to relate% the prici& moopol$ i or%er to form

fair competiti!e e!iromet. E polices has allowe% iteratioal pla$ers to i!est i ( mar0et"

which has raise% the competitio le!el which i t#r raise

competitio '*S" 2@11). Competitio has ,ee cosi%ere% as a

catal$st for the ecoomical %e!elopmet of the co#tr$ ,$

literat#res. * res#lts it creates the ee% of HJ-" io!atio a% ewtecholo&$ to ha!e competiti!e a%!ata&e i &lo,al sceario.

8/17/2019 57 _Nestle

17/18

2.- !O/!,SIO/ 

ith the a,o!e %isc#ssio it ca ,e cocl#%e% that a or&ai=atio a% it

o,Decti!e is si&i/catl$ i#ece% from its ,#siess e!irometal a%

the impact is same o Nestle. owe!er" Nestle with its s#staia,le a%

coti#o#s %e!elopmet approach a% it !ersatilit$ has t#re% these

factors ito competiti!e a%!ata&e. lso compa$ is a,le to ,e pro/ta,le

a% &row s#ccessf#ll$ ,$ meeti& the sta0ehol%er;s e?pectatio a%

ser!i& comm#it$ with health$ a% #tritio#s pro%#cts. * a%%itio Nestle

f#l/l its CSH ,$ s#pporti& ecoomical a% social %e!elopmet ,$ its

a,ilit$ to o+er Do, opport#ities" r#ral %e!elopmet a% e!iromet

protectio.

3. RE%ERE/!ES :Cham,erli" E. . 1933. The Theor$ of 8oopolistic Competitio.

Cam,ri%&e" 8ass. Ei&hth e%itio" 1965.;

:(eeth rrow" 1962" Ecoomic elfare a% the llocatio of Heso#rces

for *!etio "The Hate a% -irectio of *!eti!e cti!it$ Ecoomic a%

Social Factors

:8S-EN" " 1997. E%itorial ,ri&i& pro%#ctio ,ac0 i L #%ersta%i&

&o!ermet;s ecomic role i late i%#striali=atio. orl% -e!elopmet"

25'4) 469LB@.;

:K" -" 1993. The assessmet competitio polic$. O?for% He!iew of 

Ecoomics olic$" 9'2) 1L26.;

:OE(8N" " 199B. Competitio polic$ i the cote?t of ecoom$wi%e

reform. aper presete% at T*S #al For#m" Mohaes,#r&" Septem,er.;

:

HEE(*E" -" 1999. The Competitio ct" 199B a ecoomic perspecti!e.

So#th frica Mo#ral of Ecoomics" 77'2) 257LBB.;

8/17/2019 57 _Nestle

18/18

:*SE" 8" 2@@@. The role of competitio polic$ i relator$ reform re!iew

of competitio law a% polic$ i (orea. OEC- Mo#ral of Competitio . 8." a% E. elpma '1991)" *o!atio a% >rowth i the

>lo,al Ecoom$" Cam,ri%&e" 8ass. 8*T ress. :

:-eeGo aile$ "2@@5 8ar0et Str#ct#re a% 8ar0eti& Strate&ies"

-epartmet of Ecoomics a% Cooperati!e E?tesio Ser!ice tah State

i!ersit$;

:*S '2@11) Ecoomic cose#eces for the ( a% the E of completi&the Si&le 8ar0et;

4. 'I'IO+R:"60  ‘http://www.athaia.com/economic_system.html accessed on 24-04-2014’

‘http://www.docstoc.com/docs/14711992/!"#$#%&"-'(')!%' accessed on 24-04-2014’

‘http://hi*he+ed.mc*+aw-hill.com/sites/007111/stdent_iew0/chapte+2/  accessed on 24-

04-2014’

‘http://www.comp.ns.ed.s*/ipn*/mecon/s*/0ey_s*.pd  accessed on 24-04-2014’

‘http://www.economicsonline.co.3/"ompetitie_ma+3ets/!conomic_systems.html accessed

on 24-04-2014’

‘http://www.nestle.com/aots/st+ate*y accessed on 24-04-2014’

‘http://www.nestle.com/cs/eni+onmental-sstainaility/+eso+ce-eiciency accessed on 24-

04-2014’

‘http://www.nestle.com/cs/eni+onmental-sstainaility/pac3a*in* accessed on 24-04-2014’

‘http://www.nestle.com/cs/eni+onmental-sstainaility/nat+al-capital  accessed on 24-04-

2014’

‘http://www.nestle.com/cs/nt+ition/nt+itios-p+odcts-child+en accessed on 24-04-2014’

http://www.athaia.com/economic_system.htmlhttp://www.athaia.com/economic_system.htmlhttp://www.docstoc.com/docs/147181992/ECONOMIC-SYSTEMShttp://www.docstoc.com/docs/147181992/ECONOMIC-SYSTEMShttp://www.docstoc.com/docs/147181992/ECONOMIC-SYSTEMShttp://highered.mcgraw-hill.com/sites/0073511331/student_view0/chapter2/http://highered.mcgraw-hill.com/sites/0073511331/student_view0/chapter2/http://www.comp.nus.edu.sg/~ipng/mecon/sg/06effy_sg.pdfhttp://www.comp.nus.edu.sg/~ipng/mecon/sg/06effy_sg.pdfhttp://www.nestle.com/aboutus/strategyhttp://www.nestle.com/aboutus/strategyhttp://www.nestle.com/csv/environmental-sustainability/resource-efficiencyhttp://www.nestle.com/csv/environmental-sustainability/resource-efficiencyhttp://www.nestle.com/csv/environmental-sustainability/packaginghttp://www.nestle.com/csv/environmental-sustainability/packaginghttp://www.nestle.com/csv/environmental-sustainability/natural-capitalhttp://www.nestle.com/csv/environmental-sustainability/natural-capitalhttp://www.nestle.com/csv/nutrition/nutritious-products-childrenhttp://www.nestle.com/csv/nutrition/nutritious-products-childrenhttp://www.athaia.com/economic_system.htmlhttp://www.docstoc.com/docs/147181992/ECONOMIC-SYSTEMShttp://highered.mcgraw-hill.com/sites/0073511331/student_view0/chapter2/http://www.comp.nus.edu.sg/~ipng/mecon/sg/06effy_sg.pdfhttp://www.nestle.com/aboutus/strategyhttp://www.nestle.com/csv/environmental-sustainability/resource-efficiencyhttp://www.nestle.com/csv/environmental-sustainability/packaginghttp://www.nestle.com/csv/environmental-sustainability/natural-capitalhttp://www.nestle.com/csv/nutrition/nutritious-products-children