Analysing Macro Environment and Internal Capabilities of Unilever

Business strategy
1

Table of Contents
INTRODUCTION...........................................................................................................................3
LO 1.................................................................................................................................................3
P1 Analyses macro environment of Unilever..............................................................................3
LO 2.................................................................................................................................................6
P2 Analyses the internal environment and capabilities...............................................................6
LO 3.................................................................................................................................................8
P3 Porter five force and evaluate competitive forces for organization.......................................8
LO 4...............................................................................................................................................10
P4 Range of theories, models and strategic planning for organization.....................................10
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14
2

INTRODUCTION
A business strategy is the set of competitive moves and actions which business uses to
attract customers, complete successfully and strengthening performance of company in effective
manner. This is the combination of all the decision taken and action performed by business for
accomplishing the business goals and to secure a competitive position within the market place
(Park and Mithas, 2020). The present report is based on “Unilever” British multinational
consumer goods company in London. Company deals in various products and services such as
food, ice cream, beauty products, tea, cleaning and personal care products.
Company is needed to make some changes into their business strategy by analysing
complete competitive market. In respect of that report will analysis macro environment by using
PESTEL framework consider with vision, mission and objective of company. This will analysis
internal environmental factors with SWOT framework and VRIO framework for analysing
capabilities of company. For analyse complete competitive market report will include porter five
force model. After, completing whole the process need to ensure about options which is help for
company to make changes and develop strategic plan for growth.
LO 1
P1 Analyses macro environment of Unilever.
Unilever is a British multinational company which is deals in various kinds of product
and services by maintaining their quality and quantity. Company is follow hierarchical
organizational structure for guidance to their employees for working in better manner. Company
is affected with macro environmental factors some times in positive or negative manner. This
consists with condition existing into the economy (Akter and et.al., 2016). This includes gross
domestic products, inflation rate, spending and employment, monetary and fiscal policy. In
respect of that, here is going to discuss on vision, mission and objectives of company are as
follows: Vision: to make sustainable living commonplace. Mission: to add vitality to life. For meet the needs for nutrition and personal care with
brand which help people feel good.
 Objectives:
3

o To help approximately 40 % of the consumer to improve their health and
wellbeing by the end of 2020.
o To improve livelihoods of 45 % of the population in the supply chain of the goods
and services till November 2020.
o To decrease the carbon footprint by 20 % from the manufacturing of the goods
and services by the company till January 2021.
Those are vision, mission and objectives of Unilever Company and believe this is the best
long terms way for our business to grow at market place. The mission of company is help to add
the vitality for life of customers as well as improve life of various peoples. With the help of this,
company is able to attract more customers because working in it is highly good and effective.
Business strategy is providing better opportunity to Unilever for getting success. Company face
hard competition into the market place. In that, management need to prepare competitive price
strategy through analysing macro environmental factors. For analysing macro environmental
factors here is select PESTEL framework and stakeholder analysis.
A PESTEL framework is used by company to analyse and monitor complete macro
environmental factors which have impact on organization (Angeloska-Dichovska and Petkovska-
Mirchevska, 2017). Analyse of PESTEL, in context of Unilever are as follows:
Political factor:
Unilever operates across worldwide with having various employees. This factor is
consisting with all the government taxes and rate like corporate tax, government tax, etc. and
some of political party’s business policy. In some nations political power have a clear majority
and less for performing task. In the case of fewer majorities are help to take best and effective
decision easily. Like the sales activities through supply chain management is affected through
political factor which is lead to economic stability. That is help to turn into the better sales and
profits of company in effective manner. on the other side, political factor is affect to sales of
company when government is increase tax rate on goods, exports and imports because tax rate
increase than price of product is also increases.
Economic factor:
Economic factor is referring with economic condition of country and global economy.
The economy condition is more profitable and for revenue. Through that, company have higher
chance to get more success at market place within the developing country (PESTEL analysis of
4