BUSINESS ENVIRONMENT

Business Environment

Business Environment

Introduction

There is no doubt that business environment is rapidly changing, and economies are constantly transiting from rigid to flexible economies to meet the needs and demand of countries and people, as well as to remain competitive. The world is swiftly changing into a global economy. Nowadays, companies expanding their businesses to foreign countries and markets for business sustainability in the long-term.

With this transition in business environment, the focus of firms from profit generation product innovation to environmental investment is also being changed. The environment refers to a major subject that has a vital impact on all stakeholders. Environmental protection and the shift towards sustainability and emerged as a key responsibility, which should be shared between the private sector, governments and public.

Nestle is renowned and world's largest food and beverage organisation, founded in 1866. Nestle has operations in more than 80 countries. Nestle has taken several initiatives for sustainable development and to resolve environmental issues. For example, NEMS - the Nestle Environmental Management System was set up that integrates and unites all environmental measures, which ensure ongoing improvement in environmental performance of Nestle including all business transactions and activities.

Thus, this paper takes in hand the case study of Nestle to examine its strategies of Nestle position in meeting its responsibilities and stakeholder's objectives; impact of fiscal and monetary policy on Nestle and how the impact of social welfare and industrial policy initiatives, how market structures determine the pricing and output decisions of Nestle and its response to market forces, business and cultural environments shape the behaviour of Nestle including the competitive strategies employed by Nestle, and significance of international trade, economic integration and global markets and the implications the company entering to EMU.

Business Environment

Command Economy

A command economy can be defined as the coordinated economic activities; thus, vital to the functionality and viability of a multifaceted social economy, is carried out by means of administration, such as regulations, targets, directives and commands than through a market mechanism. In a command economy, economic players and especially organization associated with production, function chiefly through virtue of particular instructions from top management in a political/administrative hierarchy that is under the principle of command. Therefore, the activity and life-cycle of firms and enterprise, their adjustment to disturbances, employment of resources and production of output, and the synchronization among them, which superior organs governed decisions accountable for managing role of units in the economic system. The distinctive features refer to the setting of the organisation's production goals set by upper management (O'Brien, 2012, pp.239-240).

The command principle endeavours to effectively and fully replace the market operations in the major developmental and industrial economic sectors, and render rest of the secondary market subordinate to political direction. Consequently, this is probably to clash with market operation, still this economy can nevertheless rely and contain on the market mechanism in some of its areas and sectors; for instance, allocation of labour.

Free Enterprise Economy

A free enterprise economy is one of the essential components of ...