1 ASSIGNMENT FRONT SHEET UNIT: 1 – BUSINESS ENVIRONMERNT Learning Hours: Hours. Self-learning hours: 90 hours. Course: HND Business – Level 4 CREDIT VALUE: 15 CREDITS Term: 1 Module Leader: ISRAEL OYEDELE Lecturer: Internal Verifier: Mrs S Kotta ASSIGNMENT TITLE: BUSINESS ENVIRONMENT – Nestle (www.Nestle.co.uk), (www.Nestle.com) Learners Name Term: 1 Cohort: Intake: Registration Number Campus: REGENT COLLEGE HIGHER EDUCATION Hand out Date: 22/02/2016 Submission Date:06/05/2016 to 07/10/2016 Learning Outcome Assessment Criteria In this assessment you will have the opportunity to present evidence that shows you are able to: Task Number Evidence Page number LO 1: Understand the organisational purposes of businesses 1.1 Identify the purposes of different types of organisation 1.1 1.2 Describe the extent to which an organisation meets the objectives of different stakeholders 1.2 In this assessment, you will use the scenario of Nestle and have opportunities to provide evidence against the assessment criteria. Indicate the page numbers where the evidence can be found.2 1.3 Explain the responsibilities of an organisation and strategies employed to meet them 1.3 LO2 : Understand the nature of the national environment in which businesses operate 2.1 Explain how economic systems attempt to allocate resources effectively 2.1 2.2 Assess the impact of fiscal and monetary policy on business organisations and their activities 2.2 2.3 Evaluate the impact of competition policy and other regulatory mechanisms on the activities of a selected organisation 2.3 LO3: Understand the behaviour of organisations in their market environment 3.1 Explain how market structures determine the pricing and output decisions of businesses 3.1 3.2 Illustrate the way in which market forces shape organisational responses using a range of examples 3.2 3.3 Judge how the business and cultural environments shape the behaviour of a selected organisation 3.3 LO 4: Be able to assess the significance of the global factors that shape national business activities. 4.1 Discuss the significance of international trade to UK business organisations 4.1 4.2 Analyse the impact of global factors on UK business organisations 4.2 4.3 Evaluate the impact of policies of the European Union on UK business organisations. 4.33 Due Dates Issue Date Submission Date 06/05/2016 Formative Feedback for LO1 Week commencing from the 18th of April2016 Deadline for submission 07/10/2016 Formative feedback for LO2 Week commencing from the 18th of April 2016 Formative feedback for LO3 Week commencing from the 25th of April 2016 Formative feedback for LO4 Week commencing from the 25th of April 2016 Assignment Guidelines:  Use a standard report structure, Word-process the report and use Normal script of a proper font size 12.  Produce an academic report, detailing the above issues with an approx. word limit of 3,500, with +/- 10% margin.  Complete the title page and sign the statement of authenticity.  The Assignment front sheet should be attached in the front.  It should be uploaded on Turnitin before the  Assignments submitted after the deadline will not be accepted unless mitigating and may be entitled for a late fee.  Collusion and Plagiarism must be avoided. Please see that you include the Turn-it-in report. This work will not be accepted without the Turn it in report. Report attached: Yes No If no Reason: % of the turn it in report. Learners Declaration: I certify that the work submitted for this unit is my own and the research sources are fully acknowledged. Learners Signature: Date: Plagiarism: Any act of plagiarism will be seriously dealt with according to the colleges and awarding bodies' regulations. In this context the definition and scope of plagiarism are presented below: Plagiarism is presenting someone's work as your won. It includes copying information directly from the web or books without referencing the material; submitting joint coursework as an individual effort; copying another student's coursework; stealing coursework form another student and submitting it as your own work. Suspected plagiarism will be investigated and if found to have occurred will be dealt with according to the college procedure. (For further details please refer to the plagiarism policy and the student code of conduct.)4  Start each answer on a new page and pages should be numbered. Highlight each question clearly.  Include a Bibliography at the end of the assignment and use the Harvard referencing system.  All work should be comprehensively referenced and all sources must be fully acknowledged, such as books and journals, websites (include the date of visit), etc.  Try to give the page numbers, publishers' details and the year of publication  In order to pass you need to address all the LO  In order to get a merit you need to address the characteristics of pass and address M1, M2,M3  In order to get a Distinction you need to address the characteristics of pass, merit and address D1, D2 and D3. Use a common format for the questions, for example:  Introduction (analyse the question.)  Underpinning Knowledge (write about the relevant theory/points)  Applied knowledge(Data Analysis)  Conclusions and Recommendations (summarizing the whole scenario keeping in view pass, merit, distinction criteria.)5 ASSIGNMENT BRIEF Unit Number and title Unit 1. Business Environment Qualification BTEC HND Business (Level 4) Start Date January 2016 Deadline/ Hand-in 06/05/2016 to 07/10/2016 Assessor The main purpose of this assignment is to: Enable the students to understand different/categories of organisations, the influence of stakeholders and the relationship between businesses and the local, national and global environments. Important instructions to students:  Students must ensure they adhere strictly to the 'command verbs' i.e., identify, assess, discuss, analyse, explain, examine etc. They must not be changed, converted or be replaced in all the necessary areas of arguments and interpretations.  Students must use the key assessment criteria titles for their sub-titles. Do not provide your own adapted sub-titles in this report.  Students must strictly follow the scenario. Do not adopt another company/business scenario, but you can cite an example to support your arguments.  Students are encouraged to use relevant diagrams, statistical and graphical illustrations to support/ enhance the narrations in the display of their arguments.  Students are advised to comply with the word count of 3,500 word limit, +/- 10% margin6 Scenario: INTRODUCTION The environment is a key subject that affects us all. Protection of the environment and the move towards sustainable development remains a responsibility that must be shared between the public, governments and the private sector. This case study examines the background to sustainable development, the environment and its protection. It also looks at how Nestlé S.A., the world's leading food company, developed a policy and current business practices that reduce the company's effect on the environment. Following years of work on environmental issues dating back to the 30's, in 1996 the Nestlé Environmental Management System (NEMS) was introduced which consolidates all environmental measures taken by the Nestlé Group. NEMS is now used to ensure continuous improvement in Nestlé's environmental performance covering all its business activities (www. Nestle.co.uk); (www. Nestle.com) You are shadowing a senior manager of Nestle Company Ltd. A team of middle management business research analyst were appointed and approved by the top management of Nestle to carry out a specialised and highly competitive market and business opportunities research. You were part of this newly approved group of researcher's and analysts.7 For the business to succeed in the current environment, it would need to find cost-effective ways to manage operations, while delivering high quality and differentiated consumer durable products. In addition, companies operating in this industry face numerous other challenges, including uncertain demand, shifting tastes, operating at a profitable level, changing standards and regulations, and relying on the global supplier network, among others. Below are the specific and broad challenges posed for Nestle Company Ltd. Changing Consumer Demands: Today, consumer products companies need to be consumer focused. Demand has a tendency to fluctuate rapidly. For example, consumer preferences have altered greatly in recent years as demand shifts toward healthier and sustainable options. Consequently, manufacturing success is closely related to time-to-market and new product introduction (NPI) capabilities. Additionally, demand can fluctuate cyclically and with economic volatility. The success and profitability of any organization in this industry is heavily dependent on how effective these companies are at addressing the changing demands of consumers. 2. Shrinking Operating Margins: With global competition, companies are faced with the challenge of meeting global price points. This creates additional pressure, as manufacturers need to ensure the delivery of high quality products while finding innovative ways to cut costs. Companies also need to account for fluctuations in factors such as oil prices and their effect on transportation costs or petrochemicals which may be used for agrochemicals and packaging.8 3. Compliance and Regulatory Pressures: The global regulatory environment is dynamic. Companies are faced with the challenges of mitigating operational risk and managing non-conformances. Creating additional pressures, as manufacturers rely on the global supplier network to battle shrinking operating margins, meeting international compliance and regulations becomes a factor. 4. Globalizing Economy: Leveraging the global supplier network, (that is condition of having a relatively small amount of cost yield a relatively high level of returns); is a means for reducing costs; however it does come with numerous risks in terms of compliance, product safety, and other areas. 5. Data Granularity and Visibility: With compliance and regulations becoming stricter, traceability functionalities are more pertinent and requisite than in the past. Consumer products companies need strong data granularity to reduce operational risk, properly respond to an adverse event with a targeted recall, provide high quality and compliant products, and avoid counterfeiting issues associated with global trade. Note: the above challenges highlighted are highly interconnected. For example shrinking operating margins are dependent on the globalizing economy and increased competition. NOW To survive in these tough times, companies need to effectively assess the priority and criticality of these challenges, developing strategies to effectively overcome them. Your role:9 Use the above information to guide your detailed report to the team. You have been asked by your team to report: LO1 Understand the organisational purposes of business:  IDENTIFY according to the structures, objectives/purposes, missions, values, market share and growth, sales; operational service level; customer satisfaction; of different types of organisation that Nestle caters for or have business relationships with, (this will provide evidence for AC 1.1)  DESCRIBE the extent to which Nestle meets the objectives of different stakeholders, like Shareholders, employees, customers, institutions, environmental groups and agencies will influence its operations in various ways and to a varying degrees, (this will provide evidence for AC 1.2)  EXPLAIN the corporate social responsibilities of Nestle such as environmental and ethical issues, consumer legislations, fair trade, all codes and compliances and strategies employed to meet them, (this will provide evidence for AC 1.3) LO2 Understand the nature of the national environment in which business operate  EXPLAIN how economic systems, such as mixed, free enterprise and even transitional population; labour force; growth; inflation; balance of payments; balance of trade; exchange rates; public finances; taxation; government borrowing; business behaviour e.g. investment, objectives, risk awareness; cost of capital; consumer behaviour- will attempt to allocate resources used by Nestle in the most efficient and effectively way, (this will provide evidence for AC 2.1)10  ASSESS the impact of fiscal and monetary policy such as economic goals; fiscal policy: control of aggregate demand; central and local government spending; Public Sector Net Borrowing (PSNB) and Public Sector Net Cash Requirement (PSNCR); euro convergence criteria; interest rates; on Nestle business activities as an organisation, (this will provide evidence for AC 2.2)  EVALUATE the impact of competition policy (up-to-date legislation including Competition Act 1998, Enterprise Act 2002); Competition Commission, Office of Fair Trading; Directorate General for Competition); European Commission); and other regulatory mechanisms on the activities of Nestle as an organisation, (this will provide evidence for AC 2.3) LO3 Understand the behaviour of organisations in their market environment  EXPLAIN how market structures, like perfect competition, monopoly, monopolistic competition, oligopoly, duopoly; competitive advantage, strategies adopted by firms; regulation of competition will determine the pricing and output decisions of Nestle as a business organisation, ( this will provide evidence for the AC 3.1)  ILLUSTRATE the way in which market forces can shape Nestle organisational responses using a range of examples: such as; supply and demand, elasticity of demand; elasticity of supply; customer perceptions and actions, pricing decisions; cost and output decisions; economies of scale outsourcing; (this will provide evidence for AC 3.2)  JUDGE how the business and cultural environments, such as core markets; labour market trends; employee skills, technology; innovation; research and development; core competencies; business11 environment (political, economic, social, technical, legal, environmental); cultural environment, will shape the behaviour of Nestle as an organisation, (this will provide evidence for AC 3.3) LO4 Be able to assess the significance of the global factors that shape national business activities.  DISCUSS the significance of international trade, (that is, the report should look closely at (market opportunities; global growth; protectionism; World Trade Organisation (WTO); emerging markets (BRIC economies – Brazil, Russia, India, China); EU membership; EU business regulations and their incorporation in to UK law) to Nestle as one of the UK business organisations, (this will provide evidence for AC 4.1)  ANALYSE the impact of global factors, such as, business, competition, growth, employment, education, economics and finance, employment, environment, science and technology, regional); labour movement; workforce skills; exchange rates; trading blocs (e.g. monetary unions, common markets; customs unions, free trade areas); labour costs; trade duties; levies; tariffs; customs dues; taxation regimes; international competitiveness; on Nestle as UK business organisations, (this will provide evidence for AC 4.2)  EVALUATE the impact of policies of the European Union EU policies e.g. agriculture (CAP), ; international business environment (political, economic, social, technical, legal, environmental); investment incentives; cost of capital; commodity prices; intellectual property; climate change e.g. Kyoto Protocol, Rio Earth Summit; third world poverty; the group of 20 (G-20); global financial stability on Nestle as part of the UK business organisations, (this will provide evidence for AC 4.3)12 Assessment: The module will be assessed meeting all the Assessment Criteria (AC), as specified by the awarding body, Pearson Edexcel. Please read the instructions carefully while addressing the tasks specified. Contribution: 100% of the module Outline Details: Individual report approx. 3,500 words. Details enclosed in the assignment brief Guidance in addition to the Pass criteria's, this assignment gives you the opportunity to submit evidence in order to achieve the following Merit and Distinction grades. Assessment Grid indicating their pass, merit and distinction: UNIT: 1 – BUSINESS ENVIRONMENT Learning Outcomes/criteria: Indicative characteristics Contextualised Feedback LO1. Understand the organisational purposes of businesses LO2. Understand the nature of the national environment in which businesses operate LO3. Understand the behaviour of organisations in their market environment LO4. Be able to assess the significance of the global factors that shape national business activities. As per the assessment criteria specified for Pass Do Do Do All AC for LO1 All AC for LO2 All AC for LO3 All AC for LO413 MERIT GRADE DESCRIPTION: Contextualisation M. Identify and apply strategies to find appropriate solutions. . Effective judgments have been made. . An effective approach to study and research has been used. To achieve M1 you will make effective judgements (1.1, 2.2) and show that an effective approach to the study and research has been used across your assignment. M2. Select/ design and apply appropriate methods/ techniques. Appropriate learning methods have been applied. To achieve M2 you will exhibit a range of learning methods and see that the complex data/information has been synthesized and processed. (3.1, 4.2.4.3) Complex information/data have been synthesized and processed. M3. Present and communicate appropriate findings. . Appropriate structure has been used. . Coherent, logical development of principles/ concepts for the intended audience . communication has taken place in familiar and unfamiliar contexts To achieve M3 you will present and communicate appropriate findings with appropriate structure. (1.3, 2.3, 3.3, 4.1)14 DISTINCTION GRADE DESCRIPTION: Contextualisation D1. Use critical reflection to evaluate own work and justify valid conclusion. . Synthesis has been used to generate and justify valid conclusions . Evaluation has taken place using defined criteria Realistic improvements have been proposed against defined characteristics Evidence of synthesis with valid conclusions. Evaluation has taken place using the defined criteria. Realistic improvements have been proposed against defined characteristic/evidence. (3.2) D2. Take responsibility for managing and organizing activities. The importance of interdependence has been recognized. To achieve D2 you will have demonstrated autonomy across your assignment, with effective independent research and met the deadlines to submit all the tasks and achieve the unit assessment criteria and an interdependence with each learning outcome has been demonstrated15 D3. Demonstrate convergent, lateral and creative thinking Ideas generate and decisions taken. Lateral thinking has been applied. Capacity for innovation and creative thought has been used. Receptiveness to new ideas has demonstrated. Your work demonstrates new ideas or suggestions towards the assigned tasks and your research shows some creative thinking and receptiveness to new ideas across the assignment making it look different and creative. (4.2)16 Achievement Summary The Following Sections to be completed by the assessor: Centre Name: REGENT COLLEGE HIGHER EDUCATION Campus: Centre Number: Please note that the assessor's signature below denotes conformation that he/she has in no way influenced the outcome of the Assessment: Assessors Name: Assessors Signature: Learners Name (to be filled by the Assessor) Intake: Cohort: Term: Campus: Learners Edexcel Reference Number Has the unit been Internally Verified? Y/N Date of verification: Name of the Internal Verifier: Internal verifiers signature: If Sampled ,Internal verifiers comments on the assignment brief:17 Evidence Checklist Summary of the evidence required by the student Evidence presented LO1 LO2 LO3 LO4 Outcome Evidence for the criteria to pass, merit and distinction as specified in the student feedback and contextualised. Assessors decision Internal verification decision. (agree, disagree) You are required to carry out a research by using supportive materials like books, Journals, websites, etc., and write a report of the findings on LO 1, and LO 2. The answers need to be reflected to the CASE STUDY NESTLE chosen for the Purpose. LO 1. Understand the organisational purposes of businesses  AC 1.1- IDENTIFY according to the structures, objectives/purposes, missions, values, market share and growth, sales; operational service level; customer satisfaction; of different types of organisation that Nestle caters for or have business relationships with, (this will provide evidence for AC 1.1) P1.1 (P,M,D) P1.1 (P,M,D)  AC 1.2- DESCRIBE the extent to which Nestle meets the objectives of different stakeholders, like Shareholders, employees, customers, institutions, environmental groups and agencies will influence its operations in various ways and to a varying degrees, (this will provide evidence for AC 1.2) P1.2 (P,M,D) P1.2 (P,M,D)18 AND LO 2. Understand the nature of the national environment in which businesses operate  AC 1.3-EXPLAIN the corporate social responsibilities of Nestle such as environmental and ethical issues, consumer legislations, fair trade, all codes and compliances and strategies employed to meet them, (this will provide evidence for AC 1.3) P1.3 (P,M,D) P1.3 (P,M,D)  EXPLAIN how economic systems, such as mixed, free enterprise and even transitional population; labour force; growth; inflation; balance of payments; balance of trade; exchange rates; public finances; taxation; government borrowing; business behaviour e.g. investment, objectives, risk awareness; cost of capital; consumer behaviour- will attempt to allocate resources used by Nestle in the most efficient and effectively way, (this will provide evidence for AC 2.1)  ASSESS the impact of fiscal and monetary policy such as economic goals; fiscal policy: control of aggregate demand; central and local government spending; Public Sector Net Borrowing (PSNB) and Public Sector Net Cash Requirement (PSNCR); euro convergence criteria; interest rates; on Nestle business activities as an organisation, (this will provide evidence for AC 2.2)  EVALUATE the impact of competition policy (up-to-date legislation including Competition Act 1998, Enterprise Act 2002); Competition Commission, Office of Fair Trading; Directorate General for Competition); European Commission); and other regulatory mechanisms on the P2.1 (P,M,D) P2.2 (P,M,D) P2.3 (P,M,D) P2.1 (P,M,D) P2.2 (P,M,D P2.3 (P,M,D)19 activities of Nestle as an organisation, (this will provide evidence for AC 2.3) Contextualised Feedback for LO1 and LO2 (reflecting 1.1, 1.2, 1.3, 2.1, 2.2, 2.3 Pass merit and distinction.) IV comments towards LO1 and LO2 From the chosen case study Nestle; You are required to carry out a research by using supportive materials like books, Journals websites, etc., and write a report of the findings on LO 3 and LO 4. LO 3. Understand the behaviour of organisations in their market environment  EXPLAIN how market structures, like perfect competition, monopoly, monopolistic competition, oligopoly, duopoly; competitive advantage, strategies adopted by firms; regulation of competition will determine the pricing and output decisions of Nestle as a business organisation, ( this will provide evidence for the AC 3.1)  ILLUSTRATE the way in which market forces can shape Nestle organisational responses using a range of examples: such as; supply and demand, elasticity of demand; elasticity of supply; customer perceptions and actions, pricing decisions; cost and output decisions; economies of scale outsourcing; (this will provide evidence for AC 3.2) P3.1 (P,M,D) P3.2 (P,M,D) P3.1 (P,M,D) P3.2 (P,M,D)20 AND  JUDGE how the business and cultural environments, such as core markets; labour market trends; employee skills, technology; innovation; research and development; core competencies; business environment (political, economic, social, technical, legal, environmental); cultural environment, will shape the behaviour of Nestle as an organisation, (this will provide evidence for AC 3.3) P3.3 (P,M,D) P3.3 (P,M,D) LO 4: Be able to assess the significance of the global factors that shape national business activities  DISCUSS the significance of international trade, (that is, the report should look closely at (market opportunities; global growth; protectionism; World Trade Organisation (WTO); emerging markets (BRIC economies – Brazil, Russia, India, China); EU membership; EU business regulations and their incorporation in to UK law) to Nestle as one of the UK business organisations, (this will provide evidence for AC 4.1)  ANALYSE the impact of global factors, such as, business, competition, growth, employment, education, economics and finance, employment, environment, science and technology, regional); labour movement; workforce skills; exchange rates; trading blocs (e.g. monetary unions, common markets; customs unions, free trade areas); labour costs; trade duties; levies; tariffs; customs dues; taxation regimes; international competitiveness; on Nestle as UK business organisations, (this will provide evidence for AC 4.2) P4.1 (P,M,D) P4.2 (P,M,D) P4.1 (P,M,D) P4.2 (P,M,D)21  EVALUATE the impact of policies of the European Union EU policies e.g. agriculture (CAP), ; international business environment (political, economic, social, technical, legal, environmental); investment incentives; cost of capital; commodity prices; intellectual property; climate change e.g. Kyoto Protocol, Rio Earth Summit; third world poverty; the group of 20 (G-20); global financial stability on Nestle as part of the UK business organisations, (this will provide evidence for AC 4.3) P4.3 (P,M,D) P4.3 (P,M,D) Contextualised Feedback for LO3 and LO4 (reflecting 3.1, 3.2, 3.3, 4.1, 4.2, 4.3 Pass merit and distinction.) IV comments towards Task 2 Merit grades awarded M1 M2 M3 P1 P2 P3 P4 Distinction grades awarded D1 D2 D3 Resubmit : Any other comments Grade given by the Assessor: Pass Merit Distinction Assessors Signature: Date: IV Grading Check: Comments if any: Agree Disagree Modify grade to22 IV signature: Date: Students feedback: Student Signature: Date: Plagiarism: Any act of plagiarism will be seriously dealt with according to the colleges and awarding bodies' regulations. In this context the definition and scope of plagiarism are presented below: Plagiarism is presenting someone's work as your won. It includes copying information directly from the web or books without referencing the material; submitting joint coursework as an individual effort; copying another student's coursework; stealing coursework form another student and submitting it as your own work. Suspected plagiarism will be investigated and if found to have occurred will be dealt with according to the college procedure. (For further details please refer to the plagiarism policy and the student code of conduct.)23