Business Environment Analysis and Management

The provided assignment requires students to analyze the business environment and understand its impact on organizational performance. It involves exploring various aspects of the business environment, such as economic, social, political, and technological factors. Additionally, it emphasizes the importance of management in making effective decisions within this complex environment.

Business
Environment

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Covered in PPT...........................................................................................................................1
TASK 2............................................................................................................................................1
P3 Relationship between various organisation function.............................................................1
TASK 3............................................................................................................................................3
P4 Explain positive and negative effect of external environmental on enterprise operation......3
TASK 4............................................................................................................................................6
P5 Internal and external factor and its interrelationship.............................................................6
P6 Strength and weaknesses of Unilever....................................................................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10
..................................................................................................................................................12

INTRODUCTION
Business environment factor has create positive as well as negative impact on an
organisation performance as well as productivity. There are two kind of business environment
components internal and external elements has available at market. Some important macro
factors are economical, political, social culture, technological, legal, governmental and many
more. In this assignment select Unilever organisation in order to analysis the impact of external
environmental components on their performance. It is run their business activities around 190
countries and selling almost 400 brand that includes hellmann's, knorr, lipton, lux, rama,
magnum and many others (Al-Swidi and Al-Hosam, 2012). It was established in the year 1930 at
United Kingdom. here are working approx 169000 workers and earn net income of 6.486 billion
in the year 2017. In this report covers different size, type, scope of an organisation and develop
interrelationship of several function with in company and positive as well as negative effect on
business operation. It also covers strengths and weaknesses of Unilever and its interrelationship
with external macro factors.
TASK 1
Covered in PPT
TASK 2
P3 Relationship between various organisation function
The enterprise structure is a hierarchy that covers all department as well as business
activities with in company. It includes all regulation, role, policies, responsibilities of all staff
members according to their abilities and job obligation. Management of institutes has develop
strategies and plan in order to operate business activities in an appropriate manner. Through this,
they are able to run entire work effectively and create strong communication network with in
firm to reduce miscommunication among all workers (Bryman and Bell, 2015). Lack of
connection networking evolve uncertainty risk thus affect Unilever performance as well as
productivity in long period of time.
Administration of Unilever manage all division effectively to enhance each one activities
presentation through this all work together and able to achieve common goals and objectives in
limited period of time. There are various department has working into an organisation like
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human resources, operations, marketing, production, research and development, sales, finance
and many others. All sector has interrelated to each others and no one division has capable to
completing their work without considering entire relevant information that are arrange from
another department. For example, marketing manager of Unilever has organising market
research to identify need, preferences, perception, attitude, behaviour etc. of clients and provide
these data to research & development team to modify product accordingly. Through this they are
able to get higher market position as well as customer's satisfaction.
(Sources: Organisation chart, 2016)
1. Design and production: Operations is very important department of Unilever which are
produce goods and services on time. Manufacturing is a preliminary division of the
company where employees has worked by using available resources in order to produce
goods and services according to their target market demand. With in production unit two
type of labour has worked here first is analyst and second is quality assurance. So that,
Unilever administration has develop plan related to manufacturing process, inventory
management, inflow as well as out flow of raw material, machinery maintenance and
many more (Christopher and Holweg, 2011). Through this, firm has produce higher
quality commodities and sell it into market thus enhance customer's satisfaction in long
period of time.
2. Finance department: - Finance department of Unilever has make several kind of
financial report like balance sheet, trading account, profits and loss statements, income
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Illustration 1: Organisation Chart

report and many more. With an organisation they are prepare budget for each one
division so that all section has work accordingly. It is a very important function because
with out fund or right budget firm are comparison with their quality of product. The main
role of Financial division is accounting, managing fund, controlling, preparing firm's
financial statements etc. Fund section has effect other department of Unilever for
example, human resources manager can not recruit new employees with out money,
research & development team can not invent new things with out right budget. So that
budgeting activities may effect another section by both ways positively as well as
negatively.
3. Sales and marketing: - Marketing department has play vital role in an organisation thus
promote product and services in order to increase awareness of clients about goods
information. Through this activities, they are able to achieve higher market position as
well as profitability in long period of time (Cross, and Miller, 2011). Marketing manager
of Unilever has analyse needs, wants of consumers and provide all these information to
their production department and they are produce commodities accordingly. Through this
firm are capable to selling their goods with high volume. Unilever has develop right kind
as well as mode of advertisement for target segmentation to provide information related
to colour, size, price, technology, feature and many more. It help to run business
activities in long period of time.
4. Research and development: - In current business environment, modification in existing
product and services has done on continuous basis in order to achieve higher market
share. So that, most of the large firm like Unilever has make separate section of research
& development. Through this, they are able get higher quality commodities and services
with innovative feature (Dibrell, Craig and Hansen, 2011). Thus help to gain competitive
benefits as compare to their competitors as well as higher market position. All others
section has also effected by this division for example, if enterprise has product higher
quality product then they needed skills employees and reduce efforts of sales persons for
selling goods at market place.
5. Human resource: - The role of human resources manager of Unilever are hiring,
selecting, controlling, managing, appraisals, promoting, transferring and many more. HR
manager of Unilever has conducting training program at work place to increase all staff
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members skills, knowledge, abilities, capabilities to completing task effectively. Through
this, firm are capable to motivate employees and enhance self confidence as well as
satisfaction about their job.
All department has depended on each others in order to increase sales and revenue of an
organisation in long period of time. Management of Unilever has established strong
communication network at work place among all division to reduce conflicts as well as rise
transformation of information process thus help to achieve given target in given time frame.
TASK 3
P4 Explain positive and negative effect of external environmental on enterprise operation
With in an organisation several type of macro environmental factor may effect business
operations work positively and negatively. Management organising market research to identify
several external factors impact on firm work and develop strategies in order to reduce negative
consequence in working activities. Some important external factors are political, technological,
economical, social cultural, legal, environmental and many more. Here explain PESTEL analysis
and its impact on business operation below:
Political: Political party which make government of the nation has develop healthy
relationship with other country in order to encourage trading activities across border.
Headquarter of Unilever has located in London and Amsterdam. Company work has effected by
dual Dutch as well as British political interference (Gharajedaghi, 2011). Unilever has run their
business activities at international level and they are follow all regulation of country where they
are operate enterprise effectively. Positive as well as negative both kind of effect on firm can be
arise due to polities are detail below: Positive: By build positive relationship with others nation, Unilever has easily sell their
goods and services at global level. Through this, firm are get higher profitability as well
as market position in long period of time effectively. Negative: If government can not make able to make healthy relation with another country
then Unilever are not selling their commodities in that location related to expansion
strategies may effected. On the their head, company has dual government interference as
home organisation result operations work effected.
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Economical: Unilever has run their enterprise activities at global level and each one
nation has different economic environment so that overall impact of one country economy in
organisation performance is very low. There are several economical factor are available at
market which provide information of particular country stability like interest rate, exchange
charges, taxation policies, gross domestic product growth, inflation etc. It create positive as well
as negative impact on operations that are explain as follows: Positive: Unilever is expanding their business activities into different territorial division
like China, India, Latin America and many others and some of them have developing
nation where GDP growth rate is very high like China 7.5, India 7.6 so that firm are get
higher market position, profitability and long run sustainability. Negative: Higher interest rate, devalued household consumption capabilities, high
unemployment, low purchasing power, falling wages, less GDP development etc. has
create negative impact on an organisation operational task.
Social cultural: In United Kingdom, peoples which are related to several different
religion has work together in Unilever as well as in the nation. Social cultural habits of clients
has change with change in country. Some important social cultural factor are education level,
perception, lifestyle, motivation factor, spendings habits, behaviours, value and moral etc. All
these social cultural environment has create positive and negative impact on business operations
that explain as follows: Positive: Diversify cultural, values and moral has help Unilever to selling more and more
product because they have diversify portfolio to satisfy each one culture needs and wants
effectively. Management of the company has used diversification strategies in order to
get high market share easily. Negative: But some time some values has create negative impact on organisation sales.
For example, Hindus can not used product which are make with beef due to traditional
moral.
Technology: In current market environment, technology has played vital role so that
Unilever has upgrade with their own engineering science with compare to market tends that help
them to run entire business activities appropriate in order to achieve goals and objectives in
limited period of time effectively. Through this, they are capable to achieve high market position
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as compare to their competitors in long run. It effect operation positively as well as negatively
which are explain as follows: Positive: Latest technology help to produce high quality of product and services that help
to attract large number of clients toward organisation. Through this, enterprise are
provide customer's satisfaction with additional feature (Meiners, Ringleb and Edwards,
2014). For example, Apple is continuously invent new things and produce innovative
commodities for their consumers that provide them highest position in all over the world. Negative: Development and maintenance of latest technology can not affordable for small
scale organisation and its effected their market share negatively.
Legal: Government of United Kingdom has develop policies related to organisation and
for its employees. Through this, they are able to control over each one business activities so that
no one firm has worked unethically. Some of the important laws of UK has discrimination,
minimum salary act, disability law, maternity leave policies, working hour and many more.
Through this, firm are able to run effectively and employees feel confident about their work. All
legal laws has create negative and positive impact on organisation performance that has explain
below: Positive: It save rights of employees at work place as well as protect their innovative
product from copy. By this, Unilever has easily sell their commodities at different nation
by implementing or following all legal laws effectively. Negative: Some time workers has misuse these law for their own benefits that effect
operations performance negatively.
Environmental: Manufacturing unit as well as another organisation has rise several kind
of pollution that effected business operations activities negatively because UK government has
develop law related to protection of natural environment. Each one companies has want to
follows these rule and work accordingly (Onetti, Zucchella, Jones, and McDougall-Covin,
2012). It create positive and negative impact on firm which are explain as follows: Positive: Contribution toward nation environment build positive brand image of the
company in front of citizen. Thus hep to rise brand value as well as goodwill in long run.
 Negative: If effect production or operations process negatively because on some point
government make difficult rule and its effect manufacturing process negative ways.
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TASK 4
P5 Internal and external factor and its interrelationship
In organisation, manager require that framework practices are accurately framed through
which they have delivered services and goods as per the customer requirements. Through
coordinating proper market survey to acknowledge buyer need along with the competitor
knowledge growth can be managed. In Unilever, the enterprise's management need to consider
the components that are discussed company's external. Thus, some of demerits and merits of
framework through for which company organise PESTLE analysis. Henceforth, computing
correlating organisation operation to undertake the place as per the market condition. There are
few extrinsic components that are discussed beneath in brief:
Political factors: This is fundamental for every function of Unilever, as this is needed to
comply the government taxation and policies. Manager should opt more unique and advanced
technologies in regard of managing the tactics and operated enterprise in more significant
manner. These Unilever advantages for competing their organisation in comparison to increased
market share through making laws of government as per the state requirement. If the Unilever
will not function their operations, this can damage the company's reputation. Strength: Unilever has sell their product and services in different countries and healthy
political relationship help them to operating business activities effectively.
 Weaknesses: Conflicts between nation has create negative impact on Unilever
performance as well as productivity in long run.
Economic factors: As Unilever practices rely over country's inflation rate, exchange rate
and other economical factors, this is paramount components that a company should manage. As
manager of Unilever are able to increase their company's sales and desire as per the income of
individual. These elements assist the manager in emphasising the financial loans and institution
of company's operations. Due to the fluctuation in exchange rate, this as an impact on
organisation's techniques.
 Strength: Low interest rate of loan, help Unilever to take money for running operations
task effectively.
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 Weaknesses: Less economic growth create negative affect on Unilever working
activities .
Social factors: Organisation require to deliver goods and services to their consumer demands. As
the referred enterprise provide personal and home care, food and refreshments to their service
user. Management require to make development within their company's offering so this can
assist within services so this can help in competing with the trade. As if organisation will not
gain benefits of product innovation within their services. Then this can impact over the sales and
revenues of Unilever.
 Strength: As Unilever, this is essential for manager to opt the promotional practices for
rendering consumer information. It can assist in grabbing attention of consumer and
refraining client's attention for a longer period.
 Weaknesses: Frequently change in clients taste, demand etc. has affected Unilever image
at market place although they have diversify product portfolio.
Technological factors: Administration requiem to use accurate tool and techniques as
this can deliver more productive services and consumer. It can aid in improving the strategies
which can help in development of Unilever and emphasising the entire sales impact that can
affect their market sales.
 Strength: Unilever has latest product with higher quality for this they are using advance
technology at their work place. Through this, they are able to achieve customer's
satisfaction.
 Weaknesses: Tools and techniques has help each one company to operate business easily
and produce higher quality commodities that provide high customer's satisfaction (López-
Gamero, Molina-Azorín and Claver-Cortés, 2011) Technology has modifying frequently
so that company can not able to implemented each one modification in their product
resulted reduce market share.
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Hence, this can be claimed that external environmental factors such as economical,
environmental and political etc. which are included through the design management. In this
market survey, market evaluation in regard of demands and ned of services user can be evaluated
in more efficient manner.
P6 Strength and weaknesses of Unilever
The management of Unilever business firm has assigned some roles as well as
responsibilities to all staff members on the basis of their professional skills and also capabilities.
Manager of Unilever organisation set up clear objectives and aims and also clear to every
employees so that they can focus on achieving them with in set time period (Palo and Tähtinen,
2011). Unilever has operate their business activities at global level with different nation so that
each one country has their own impact on it presentation. Some important strength and
weaknesses are explain as follows:
Strength Weaknesses
 Unilever has global presence by
running business activities into 190
countries.
 High brand recall so that its trigger
clients purchasing behaviours
positively.
 Large and diversify product portfolio
with almost 400 brand.
 Management of Unilever has highly
invest in research & development
practices.
 There are several subject specialist into
distribution channel.
 Company has offer both low as well as
high prices goods and services that help
to attract large number of individuals
toward their commodities.
 Imitable product may reduce firm
profits.
 Unilever has limited business
diversification so that they are
operating their work into less filed thus
so that impact of economy on their
performance is very high (Pham, Segers
and Gijselaers, 2013).
 Company has highly depend on their
retail store and distributors.
 Substitutes has available easily so that
clients are switch very easily due to low
cost.
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Opportunities Threat
 After Brixet opportunity is very high in
united Kingdom.
 Higher demand of quality product.
 Improve lifestyle has increase spending
power resulted sales are effect
positively (Pikka, Iskanius and Page,
2011).
 Current environment, internet as well
as social media site has save money of
the company because it reduce cost of
advertisement.
 Increase number private brand with
higher popularity.
 Product limitability has create negative
impact on R&D work of Unilever.
 High competition at market reduce
profits margin.
 Rise demand of Ayurveda product has
reduce sales of Unilever.
CONCLUSION
Form the above report it is concluded that there are several business environment factors
are effecting performance as well as productivity in long period of time. So that, management of
the company has consider both and develop strategies in order to reduce negative impact.
Operation manager has want to control, monitor and manage correctly all manufacturing process
so that all available resources can be utilise in significant manner to achieve predetermine goals
and objectives in given time frame.
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REFERENCES
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business environment. 2018. [Online]. Available through:
<http://www.yourdictionary.com/business-environment>.
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