The business environment of Pakistan. Give a comprehensive theoretical background of the topic and then analyze its practical application in any private organization.

Contents Introduction Classification of Business environment Characteristics Business environment of Pakistan Practical study Swot analysis Conclusion & recommendations References

IntroductionThe business environment is the aggregate of all conditions, events, and influences that surround and affect a business firm. Business environment generally refers to the external factors affecting, either positively or negatively, the operation of a firm. The most important external factors include economic, legal, political, social and technological factors

Classification of Business environment Internal Environment External Environment

Classification of Business environmentInternal Environment Environment in the organization Factors include

External Environment Out of organization

(i) Man (ii) Machine (iii) Material (iv) Management

(i) Macro (a) Government (b) Political factors (c) Social factors (d) Cultural factors (e) Demographic factors (f) Economic factors (ii) Micro (a) Human resources to include jobs, hygiene, security (b) Company Board (c) Management structure

Characteristics of Business Entrepreneur deals in goods and services involve production or exchange of goods series of deals desire to earn profit involves element of risks creation of utilities

Business environment of Pakistan According to the Index of Economic Freedom Pakistan's economic freedom score improved in the last period reflecting improvements in six of the 10 components of economic freedom. Pakistan scores above the world average in business freedom, fiscal freedom and government size. Pakistan's ranking improved in the World Bank Group's Regulatory Quality and Control of Corruption indicator and ICRG's Political Risk rating. At the same time, the Country Credit ranking dropped 49 spots. Pakistan's overall Ease of Doing Business standing remains unchanged this year. The number of procedures, time and cost required to start a business have all been reduced resulting in Pakistan jumping 17 spots in the Starting a Business indicator. Thanks to an e-services project and the introduction of digital signatures, new companies can register and file tax returns online. Still, Pakistan slipped 17 spots in the Paying Taxes indicator. For example it takes 560 hours to prepare and file taxes in Pakistan, compared to 284.5 hours at the regional level. Also, the number of payments is higher in Pakistan (47) than the regional average (31.3).

Practical study NESTLE MILKPAK

INTRODUCTION Nestle is a multinational packaged food company founded and headquartered in Vevey, Switzerland. It results from a merger in 1905 between the Anglo-Swiss Milk Company for milk products established by the Page Brothers in Cham, Switzerland, in 1866 and the Farine Lacte Henri Nestle Company set up in 1867 by Henri Nestl to provide an infant food product

HistoryNestl was founded in 1860. In the 1860s Henri Nestl, a pharmacist, developed a food for babies whose mothers were unable to breastfeed. His first success was a premature infant who could not tolerate his own mother's milk nor any of the usual substitutes. The value of the new product was quickly recognized when his new formula saved the child's life, and soon, Farine Lacte Henri Nestl was being sold in much of Europe. In 1905 Nestl merged with the Anglo-Swiss Condensed Milk Company. By the early 1900s, the company was operating factories in the United States, United Kingdom, Germany and Spain.

ProductNestl has a wide range of products across a number of markets including coffee (Nescaf), water, other beverages, ice cream, infant foods, performance and healthcare nutrition, seasonings, frozen and refrigerated foods, confectionery and pet food.

VISION AND STRATEGY The Nestl global vision is to be the leading health, wellness, and Nutrition Company in the world. Nestl Pakistan subscribes fully to this vision. In particular, it envisions to: Lead a dynamic motivated and professional workforce proud of its heritage and bullish about the future.

NESTLE PAKISTAN Nestle has been serving Pakistani consumers since 1988, when our parent company, the Switzerland-based Nestle SA, first acquired a share in Milkpak Ltd. Today, Nestle is fully integrated in Pakistani life, and are recognized as producers of safe, nutritious and tasty food, and leaders in developing and uplifting the communities in which we operate. From spreading awareness about nutrition and wellness to digging wells in the Thar Desert and succouring earthquake victims, the company is committed to serving our country and its people.

MILK COLLECTION SYSTEM

Follow the story of Nestl's dairy products, from humble beginnings on tiny farms in Sheikhupura district, all the way to your table!

Step 1 A small farmer in rural Sheikhupura district milks his buffalo twice a day and takes about 4 litres to one of Nestl's 500 Village Milk Collection Centres. Step 2 At the Village Milk Collection Centre the farmer's milk is poured into aluminium churns. The agent checks the milk's freshness and purity, and enters the quantity into the farmer's logbook. He takes it to one of Nestl's 1308 Secondary Reception and Cooling Stations, about 2-4 kilometres away.

table Step 3 The Secondary Reception Station has a large electrically powered cooling tank. A milk inspector measures the fat content, the non-fat solids content, and the milk's acidity. Once satisfied, he takes the milk to one of 27 Main Reception and Cooling Stations. Step 4 At the Main Reception and Cooling Stations the milk is poured into huge tanks and is thoroughly checked for quality. The milk is dispatched to the factories.

Step 5 At the Sheikhupura and Kabirwala factories, the milk is processed and packed into the familiar Nestl cartons you can find in your grocery store. It is checked for quality thrice before being released for sale. Some is processed into yoghurt, powdered milk, or other dairy products.

MARKETING AND SALESAs the worlds number one food company, our challenge goes beyond providing safe, hygienic packaged food Nestl wants its products to be within reach for every single Pakistani. Yet nutritional value and quality remain the most essential ingredients in all their brands. Over the years, food products have evolved from mere commodities to a statement of lifestyle. As consumers get more health and quality conscious, consumer empowerment surges.

MARKETING ENVIRONMENTThe marketing environment can be classified in to two major categories: Micro environment Macro environment

MICRO ENVIRONMENT ANALYSIS SUPPLIERS:Milkpak has its own suppliers as milk come directly from the nestle dairies. It has also established milk collection centres in areas considered rich in milk production. Also traditional milk contractors who buy milk from farmers supply milk to the company in flush season. In addition, Milk Pak has established village co-operatives and through them, receives milk directly from farmers.

CUSTOMERS: There are two major customers of nestle Milkpak: CONSUMER MARKETS: household wives use Milkpak for their children and for the making of tea there fore they are the major consumer markets of Milkpak BUSINESS MARKETS: Bakeries, milk shops, supermarkets and general stores are the business markets of Milkpak. At present 7000 outlets are Milk Pak clients.

COMPETITORS: The main competitors of Milkpak are: Olpers Nagori and dairy land Unbranded loose milk

MACROENVIRONMENT ANALYSIS DEMOGRAPHIC ENVIRONMENT Population age mix: Pakistan's people are not evenly distributed throughout the country. There is an average of 146 persons per square kilometer, but the density varies dramatically, ranging from scarcely populated arid areas, especially in Balochistan, to some of the highest urban densities in the world in Karachi and Lahore.

Educational Groups: The majority of the population is illiterate, both in the rural areas as well as the urban areas. Most of the population does not have access to adequate educational facilities and they are not inclined towards getting an education. A smaller proportion of the population has completed their Matric or Intermediate level of education and a still smaller figure has gone on further to become graduates.

SOCIAL / CULTURAL ENVIRONMENT Pakistani social life revolves around family and kin. Even among members of the most Westernized elite, family retains its overarching significance. Rarely does an individual live apart from relatives; even male urban migrants usually live with relatives or friends of kinfolk. As far as cultural occasions are concerned, Ramadan is an important part of culture.

ECONOMIC TRENDS Effect of Recent Economic Downturn Low Saving Rate Low per Capita Income

SWOT ANALYSISSTRENGTHS 1. Preference for its taste over a long period. 2. Longer shelf life. 3. Safe and hygienic because of the brand name nestle backing it. 4. Widely spread distribution network WEAKNESSES 1. Packaging is complicated and not user friendly. 2. Sourness in taste. 3. Peoples doubt about the usage of chemicals for preservation

SWOT ANALYSIS OPPORTUNITIES 1. Product improvement. 2. Expansion by introducing new flavors. 3. Expansion of uses like yogurt, coffee. 4. People now more aware of hygiene. THREATS

1. Growing popularity of Olper. 2. Trend of unbranded loose milk.

conclusion The emphasis on providing consistent quality, aggressive marketing and distribution plans in addition to the convenience to enjoy hygienically packed dairy and fruit juice products year round has helped Nestle to reinforce its leadership position throughout the years since it launched its flagship product, Milk Pak UHT milk, in 1981 in Pakistan. Nestle is not only playing an important role to produce and market a range of high quality dairy and fruit products in a country where a huge quantity of the two commodities are wasted each year due to an inefficient farm-to-market infrastructure but is also engaged in a much needed value-added activity to help earn a substantial foreign exchange through exports.

RECOMMENDATION These are some of the things, which can probably happen in the future. The challenges Milkpak perceive in the future can be met only through an aggressive strategy. Nestle has already used already used the brand Nestle as a quality seal. TRADE ACTIVITES MARKETING STRATEGIES AD STRATEGY