Business Environment INTRODUCTION Task 1.3 Evaluate the importance of PESTLE analysis for an organisation

Business Environment

Table of Contents
INTRODUCTION...........................................................................................................................3
Task 1...............................................................................................................................................3
Describe the structure of the company, its management and how it is governed..................3
Task 2 ..............................................................................................................................................5
Evaluate the importance of PESTLE analysis for a business organisation............................5
Task 3...............................................................................................................................................7
Use of PESTLE framework to analyse the external environment of Unilever......................7
Conclusion .....................................................................................................................................9
REFERENCES..............................................................................................................................11

INTRODUCTION
Business environment or market environment can be understood as aggregation of various
internal, external or micro and macro factors that affects the firm’s performance, profitability,
and ability to grow, survive and maintain successful relationship with customers (Borojo and
Yushi, 2020). These factors can be market and social trends, change in technology, supply and
demand, economic stability, suppliers, customer changing needs and wants, employees and
activities by government. Various attributes of business environments are dynamic, multifaceted,
complex and uncertain due to which organisations need to track the activities of market
environment in order to have less impact on organisations performance. Unilever laid the
foundation on 2nd September 1929, headquartered in London, England, formed by merger of
Dutch margarine producer Margarine Unie and British soap maker Lever Brother, from where
the company took its name. Under this report, an overview of Unilever including its legal
structure and a detailed analysis of PESTLE framework is carried out.
Task 1
Describe the structure of the company, its management and how it is governed
 Overview of Unilever with its history
Unilever laid the foundation on 2nd September 1929, headquartered in London, England.
Unilever plc is multinational private limited company dealing particularly in consumer
goods. The range of products offered by Unilever include food, baby food, confections,
soft drinks, energy drinks, ice-creams, tea, coffee, packaged water bottles, pet food,
cleaning agents, cheese, beauty products and personal care, chewing gum, frozen pizza,
pharmaceutical and health care products. Unilever has majorly three division dealing in
Foods and refreshments, Beauty & Personal care and home care. It owns more than 400
brands and offering its products and services across 190 countries. Unilever is a one of
the largest soap producer in world. In the year 1929 Dutch margarine producer Margarine
Uni and British soap maker Lever Brothers came together and formed a company named
Unilever. Company has acquired a various business entities such as Lipton in 1971,
Brook Bond in 1984, Chesebrough- pond in 1987, Best food in 2000, Dollar Shave club
in 2016 and Pukka Herbs in 2017 and many more.

1921-1940:- Consequently after the merger of two firms, Unilever grew and expanded its
business operation by acquiring business in US and UK and by launching a new venture
in Africa and Latin America. In year 1933 Unilever started its operation in Indonesia and
in 1943 it acquired a T.J. Lipton a major stake in Frosted foods and Batchelors peas. In
1944 Pepsodent was also acquired (Wanke and et. al., 2020).
1941-1960:- Lever Brother and T.J. Lipton were gradually falling in their business
operations after 1945. In the year 1957 Unilever took the full ownership of Frosted foods
and gave the name of “Bird Eye” subsequently in the same year Dove was first launched
in US, whereas Sun-silk was launched in UK in the year 1954. Good Humor, a US based
ice-cream business was acquired in 1961. In the mid 1960’s, increasing competition in
detergents and soaps especially from Procter &Gamble force Unilever for diversification.
1961-1980:- By the end of 1970, Unilever captured almost 30% of European ice-cream
market through acquisitions. However, in the year 1982 Unilever decided to focus
entirely on FMCG sector. In year 1984 Unilever acquired Brook Bond and in 1986
Unilever strengthened its position in the world skin care market by acquiring
Chesebrough-ponds.
1981-2000:- UAC Ghana and Lever Brothers came together to form a Unilever Ghana in
July 1992. Subsequently in the next year, Unilever acquired Breyers from Kraft which
turned the company into a largest manufacture of ice-cream in US. In the year 1998
Unilever established a sustainable agriculture programme and in the year 2000 it added
more brands like Knorr, Marmite, Hellmann’s and Bovril into its portfolio by acquiring
Bestfoods (Kozubikova and Kotaskova, 2019).
2000- Till present: - In 2001 Unilever was divided into two units, one for home and
personal care and another one for food. In 2002 Unilever sold its oil and fat division to
Kuala Lumpur based company IOI Corporation. In 2007 Unilever joined hands with
Rainforest Alliance and in 2009 it acquired personal care business of Sara Lee
Corporation. In 2013 Unilever increases its share up to 67% in its Indian Unit, Hindustan
Unilever. In 2015 Unilever acquired British skin care brand REN followed by two
acquisition, one of Kate Somerville Skincare and Italian premium ice-cream maker
GROM. In 2020 Unilever restructured its corporate structure by merging Unilever N.V
into Unilever PLC to form a UK based one holding and parent company.