Business Environment and Unilever Limited

The assignment discusses the concept of business environment, which refers to various internal and external factors that can affect an organization's operations. It provides a case study of Unilever Limited, examining how the company adopts new tools and techniques to develop its firm and achieve predetermined goals. The report also includes references to relevant literature on business strategy, corporate social responsibility, and environmental management.

Business and Business
Environment

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Types and Purpose of private, public and voluntary organisation and their legal structure. .1
P2 Size and scope of different organisations..............................................................................3
TASK 2............................................................................................................................................5
P3 Interrelation between different organisational departments and their link to objectives.......5
TASK 3............................................................................................................................................6
P4 Impact of macro-environmental factors.................................................................................6
TASK 4............................................................................................................................................8
P5 Internal analysis of organisation for identification of strength and weaknesses...................8
P6 Interrelation of macro-environmental factors with organisational strength and weaknesses 9
CONCLUSION..............................................................................................................................10
REFRENCES.................................................................................................................................11

INTRODUCTION
Business environment is refers to various internal and external factors which have direct
impact on the company's functions and operations. In this included several elements such as
employees, customers, policies and policies, management, supply and demand, competitors,
social, cultural, political, technological and many business regulations. Business environment
consists various aspects including entities, individuals and some resources that can affects on the
organisation. These forces generally beyond the control by the firms so that they have to make
appropriate strategies and actions plans (Reed, 2013). It involves some important elements like
political, social, economical, legal, environmental, and technological that can affects on the
profitability and productivity as well. This report is based on Unilever Limited which is British-
Dutch transnational consumer goods firm and its is situated in London, UK. They deals in
various products such as food, beverages, personal care and cleaning agents items. It will define
different types of organisations with size and scope. Interrelationship of various functions within
organisation that link with structure also describe. Impact of macro-environment and internal
strength and weaknesses of business will explain in this.
TASK 1
P1 Types and Purpose of private, public and voluntary organisation and their legal structure
Every firm generally starts or operates by considering their legal structure which is
depends on nature of business. Entire organisations have their particular aims or objectives that
must be achieved by them within limited time period. Managers as well as owners have to follow
these legal structure while running business. It can be understood by classification of different
organisation such as public, private and voluntary with their types and purpose as well. These are
as following:
Private company
In this consider those companies that owned by private owner as well as held under the
private ownership. Government authorities do not interfere in the private companies like in
process of controlling and operating for running the business (Reinhardt and Stavins, 2010).
Therefore, private owners generally operates, control and manage the entire organisational
functions or activities for achieving set target or goals in more efficient manner. In this defined
various restrictions regarding inviting public for subscriptions of company's shares. Unilever
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Limited is a British Dutch company that provide several products such as food, beverages,
cleaning item and personal care goods as well. This firm is world's largest firm and they are
serving products at the global level as approx 190 countries in the world.
Purpose of Unilever Limited:
 Provide best quality of products and services to the society people.
 To becomes world's most famous firm in providing transnational consumer goods in
the market place.
 To achieve growth and competitive advantages in an appropriate manner.
Legal Structure of private company: Partnership: In this consider that there are two or more people who come for operating
and running business with a formal agreements (Shigang, 2010). Every individuals have
equal liability as well as sharing profits or losses during business operations. Sole proprietorship: These kinds of businesses are generally operates and controls by an
individual as they are responsible to take risks or share profits or losses if occurs. There
are no any separate legal structure or distinction in this type of business.
 Limited companies: In this included those business firms who have separate legal entities
as well as limited regarding guarantees and shares. Therefore, businessman have their
limited liabilities towards organisation.
Public organisation
In this consider several business entities that belongs to different fields such as military,
police, public educations, transit, healthcare, and infrastructures etc. these businesses are
operates or controlled bhy the government of the country as they have powers and rights to
manage or maintain such kinds of organisations by providing appropriate funds and resources as
well (Karagiorgos, 2011). The purpose of public firms is to satisfy social people by effective
working and also provide accurate facilities or services in an efficient manner.
NHS is one the best example of public sector company as it provide healthcare services
to improve health of people in the UK. They are serving best facilities and qualities in treatments
by considering medical services to the patients. This firm is working for society and their well-
beingness.
Purpose of NHS:
 To provide better treatments for improving people health.
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 Deals in providing medical facilities.
 Focus on people well fare and well-beingness regarding health issues.
 Serve best quality of services to gain trusts and build relations among people.
Legal structure of public company Central government: These firms operates and controlled by the government department
as states or central as well. State government: To ensure about the functions and activities of the firm and provide
contribution for developing the business.
 Local government: provide several facilities and proper management of the activities to
run effectively.
Voluntary organisation:
In this included those companies who works for society and their development rather
than earning profits (Drogalas, 2011). They have required approval from government authorities
regarding operating the particular organisation in well manner.
Oxfam firm can be consider in the voluntary as they focus on providing charity for
reducing poverty within the country. This organisation also support in giving facilities in any
critical situations such as natural disasters, advocacy, pro-migration and floods etc.
Purpose of Oxfam:
 To reduce the poverty rates in the country.
 Provide necessary support to people regarding foods, educations and others.
 To helps people rather than generating profits.
P2 Size and scope of different organisations
It is concern with different firms which have various sizes and scopes depends on
business nature (Kolk, 2016). It included areas or locations where organisation operated and also
involves different goods and services. it can be understood by various sizes or scope which are
given below such as:
Unilever Limited: Size: Unilever Limited is dealing in transnational consumer goods which is situated in
London, UK. It provide various products or services such as foods, beverages, cleaning
agents and personal care products in the market place. It has founded sin the year of 1930
and serving its goods at 190 countries in all over the world. In the recent year, this
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company has generated approx euro 53.715 billion revenues as per the data. There are
around 169,000 employees working within Unilever Limited. Scope: It is defined as the number of diversification of a particular company such as
Unilever Limited is dealing with several goods or services in the market including food,
beverages, personal care products and many more to satisfy customers basic needs or
desired expectations as well (Nishitani, 2012). It owns around 400 brands which have
turnover around 50 billions euro. In this included Axe/ Lynx, Dove, Omo, Lux, Lipton,
Knorr, Ice cream and Rexona and Sunsilk. Visions: Unilever's vision is to focus on making sustainable with living common place
for the purpose of achieving long term growth for business. Therefore, the vision
statement has considered the sustainability and building good relationship among
customers.
 Mission statements: The mission of Unilever limited is to add some vitality in the life.
They focus on providing best quality of services for attracting number of customers
towards organisation and meet their desired expectations with better nutritions, personal
care and hygiene for making feel good to consumers.
NHS  Size: The size of NHS considered as the people's healthcare and safety by providing
better treatments. There are number of facilities available that support in improving
patients health and treat them effectively (Osterwalder, 2010). It established in the year
of 1948. NHS organisation is giving various health facilities and services as free of
costs to the people in the UK. There are approx 1.5 million people getting services from
NHS so it is the world's largest firm and included in top five. They have many of
experts and specialist as well as qualified doctors in the organisation. Scope: In this defined that they have diversified their services among several areas for
providing better services and healthcare facilities to the societal people so that they can
improve their health in well manner. Their main purpose is to provide several facilities
and healthcare services in free of cost. They are giving various services such as optical,
dental and medical facilities and many more.
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 Visions: The vision of NHS is to give better treatments to the patients by considering
experts and tools or techniques in the medical facilities (Pigneur, 2010). These will
support in increasing healthy and safety environment within the firm.
 Mission: The mission of this firm is providing effective quality of healthcare services
to every person.
Oxfam
 Size: Oxfam has around 20 charitable trusts which operates in number of places for the
purpose of providing several services or products to those persons who are required to.
Their main aim is to remove poverty and give better facilities to every individual for
fulfilling their basic desires or needs as well. It serves its services at various countries.
 Scope: In this included several products or services such as advocacy, free educations,
poverty eradication, policy research and pro-migration and protections from disasters
or destroys.
 Visions: The vision of Oxfam is to make the country free from poverty and provide
various services or facilities to needy people for meeting their desired expectations.
 Missions: to give best solutions and provide better quality of goods so that poverty can
be reduced to satisfy their needs or wants.
TASK 2
P3 Interrelation between different organisational departments and their link to objectives
There are defined various organisational functions which works for achieving success
and getting best possible outcomes by performing such functions in more appropriate manner.
This is very necessary to analyse the business functions and their importance for accomplishing
set targets ors goals in an efficient manner (Osterwalder, 2010). There are number of
departments available in the organisation that performs number of tasks including human
resource, marketing, finance and operational functions and many more. Unilever Limited has
different departments and functions with interrelation which are given below: Human resource department: This function is most important for every organisation as
it play vital role in increasing productivities and profitability of the firm. This department
take responsibilities for recruiting and selecting candidates, performance appraisals of
employees, remuneration and training and development to achieve tasks or objectives in
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well manner. HR manager of Unilever Limited provide motivations to their employees so
that they will focus on work and work hard to get success. Marketing department: This department is related with production procedures as
marketing department generally consider the study for analysing the market trends,
customers, and competitors so that company can decide to manufacture the specific
products or services as per the requirements (Pigneur, 2010). They get informations
regarding market and give to manufacturing department to produce better quality of
goods and services for fulfilling the customers needs or desired demands as well. Finance department: In this, manager prepare a financial budget for the company. This
department take responsibility to manage or arrange proper funds by allocating those
among number of activities for getting maximum returns.
 Production department: It is an important department for every business organisation as
company make decision for producing goods and services so that customers can be
satisfied in more effectively and efficiently. They focus on customers needs or wants as
how they can satisfy their desired outcomes by consuming various items. Therefore,
Unilever Limited is providing variety of products and services such as personal care,
foods and beverages and home appliances to fulfil customers basic needs.
TASK 3
P4 Impact of macro-environmental factors
Every firm has surrounded with various environmental factors that have direct impacts on
the business operations and functions. It included internal and external factors which affects on
profitability and sustainability of particular firm due to changes in the forces as well. Macro-
environmental forces involved several elements which are beyond the control and have direct
impacts on the business activities (PikkaIskanius, 2011). In this considered political, economical,
social, legal technological and environmental that can affects as positive and negative on the
several functions of the firm. These can be understand by considering in details such as:
Political factors: There are various political forces which can influence on the business
decisions because it includes policies, code of conducts, rules and regulation, tax rates, excise
duties and procedures that can affects on organisational performance and its productivities.
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Unilever limited is providing various products or services at several countries so they have to
considered these political issues. Positive impacts: There can be positive impacts on the business as rules and regulations
of the politics must be effective and favourable so that company can increase its sales
volume at different countries.
 Negative impacts: Government can formulate high tax rates and make changes in
number of duties that can affects on the imports or exports of goods and services.
Economical factors: Unilever limited is dealing at global level as they provide its goods
and services at number of countries so that various customers can be attracted and reached for
fulfilling their demands and needs in more appropriate manner (Page, 2011). There are several
factors affects including inflations, GDP, growth rates , and economies development of the
country. So it is necessary to consider these factors because it has direct impacts on the
company's profits as well as sales volumes in various ways. Positive impacts: In this considered as there can be positive impacts is proper
informations provided by the department regarding economic conditions of particular
country.
 Negative impacts: Unilever Limited can face problems regarding inflations and income
level of individuals for purchasing particular goods and services.
Social factors: In this included several social and cultural factors that have direct impacts
on the business as it included culture, customs, age, gender, values, beliefs and educations of
people. There are different impacts of social factors such as: Positive impacts: Company have to analyse customers needs or wants and provide
effective goods to them.
 Negative impacts: Unilever limited required proper study for identifying demands of
consumer because it can affects on the customers.
Technological factors: There are number of techniques and advance technologies
launched in the market so it is necessary to adopt such technology in the firm so that more works
can be made easy and achieve business goals or targets (Pulver, 2012). Positive impacts: There are various new advance technologies such as internet, e-
commerce, new applications and many more that company can adopt for creating
customers.
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 Negative impacts: This can be affects on the operations due to lack of knowledge and
skills of employees for using such advanced technologies.
Legal factors: There are number of laws and legislation formulated by the government
that must be followed by every company (Avramenko, 2012). Unilever limited also required to
consider such legal legislation while exporting the goods and services at various countries so that
business can be developed. Positive impacts: Unilever limited have to follow employment acts, consumer
protections acts and many more for providing satisfaction to them.
 Negative impacts: Company may have to face several issues if legislation are not
followed and also they can decrease sales volume and profitability due to this situations.
Environmental factors: Unilever limited have focus on clean and green environment as
it is the major responsibility of every firm. They also take part in CSR that is corporate social
responsibility for people well fare. Positive impacts: This will helps in winning people trust and build good relationship
among them.
 Negative impacts: company have to take care of environmental issues because it can
decrease brand value or reputations in the marketplace.
TASK 4
P5 Internal analysis of organisation for identification of strength and weaknesses
Unilever limited is leading the consumer goods business in the international market and
cover various areas in serving its products and services at the global level (Bovee and Thill,
2016). There is SWOT analysis for better understanding of Unilever limited such as:
Strengths:
 This company has strong reputations and brand image among competitors.
 There are number of products and services which provided by the Unilever limited.
 It has strong global market presences and economies of scales. Business expansions at number of countries.
Weaknesses:
 This firm is selling limited products in the marketplace.
 Unilever limited has very selective or limited diversification.
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 This firm is depends upon the retail shops.
Opportunities
 Unilever Limited have various opportunities to increase or develop business such as
business diversification.
 New product developments and innovation for health. Development of particular markets and identification of new trends.
Threats
 There are number of competitors in the global market.
 Increasing more retailers who serves other competitors goods and services.
P6 Interrelation of macro-environmental factors with organisational strength and weaknesses
There are various environmental factors that has interrelated with strengths and
weaknesses of the firm (Cavalcante, 2011). In this included political, social, technological and
economical etc. that can affects to the firm.
Political factors: In this consider various rules and regulation and also policies that have
major impacts on the Unilever limited such as: Strengths: company can understand about the rules and taxation that will support in
increasings brand values.
 Weaknesses: It can be difficult to follow the legal laws and policies due to dealing with
various countries.
Economical: It is another major factor that included GDP rates, growth rates, foreign
currency and many more (Kesting, 2011). These can be affects on the business profitability. Strengths: Unilever limited operates business in various countries so more incomes can
be generated. Weaknesses: Foreign currencies or exchanges rates can be affects on the organisation.
Social: It is related with culture, aspects, beliefs of people that have major impacts on the
firms. Strengths: Unilever limited is focusing on CSR for attracting more customers.
 Weaknesses: Cultural values can be affects on the business operations.
Technological: Various new technologies must be adopted by the Unilever limited for
achieving competitive advantages. Strengths: Company can bring effectiveness and creativity in the production department.
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 Weaknesses: This can be increase the production costs of the company due to adopting
new technologies (Hair, 2015).
CONCLUSION
From the above report, it has been concluded that business environment is refers to
various internal and external factors that can affects on the organisation and its operations. This
report is defined about the Unilever limited as how they are adopting new tools and techniques
for developing firm and achieve predetermine goals or objectives. This assignment defined about
various types of organisation with sizes or scopes in an effective manner.
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REFRENCES
Books and Journals
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Shigang, Y., 2010. Competitive strategy and business environment: The case of small enterprises
in China. Asian Social Science. 6(11). p.64.
Karagiorgos, T., Drogalas, G. and Giovanis, N., 2011. Evaluation of the effectiveness of internal
audit in Greek Hotel Business.
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environment to CSR and sustainable development. Journal of World Business. 51(1).
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Bovee, C. L., Thill, J. V. and Raina, R. L., 2016. Business communication today. Pearson
Education India.
Cavalcante, S., Kesting, P. and Ulhøi, J., 2011. Business model dynamics and innovation:(re)
establishing the missing linkages. Management Decision. 49(8). pp.1327-1342.
Hair, J. F., 2015. Essentials of business research methods. ME Sharpe.
Hamilton, L. and Webster, P., 2015. The international business environment. Oxford University
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