Global Business Environment

This report discusses the factors prevailing in the global business environment and their impact on businesses operating at an international level. It focuses on Unilever, a UK-based multinational company, and explores the opportunities and threats it faces. The report covers the political, economic, sociocultural, technological, environmental, and legal dimensions of the global business environment.

GLOBAL BUSINESS
ENVIRONMENT

EXECUTIVE SUMMARY
Global business environment refers to the factors prevailing in the environment of the
business which are operating at international level. These factors have impact in both positive
and negative ways. These factors included economic conditions, political and social conditions
of other companies and technological advancement in different countries of the world.

Table of Contents
INTRODUCTION...........................................................................................................................4
Background..................................................................................................................................4
EXTERNAL ENVIRONMENT......................................................................................................4
APPENDIX......................................................................................................................................5
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................1

INTRODUCTION
Business environment refers to the collection of all the factors that can impact directly or
indirectly the functioning of the business enterprise. Here this concept will be discussed in
reference of business that are operating at international level or whose operations are expanded
in different countries of the world. This report is based on Unilever, which is a UK based
multinational company. The present report include PESTEL model explained in reference of
Unilever by stating how external environment provides opportunities and threats to the
businesses.
Background
Unilever foundation was based on the sense of purpose and its special heritage yet shapes the
ways of business. The company was started on 2nd of September in 1929. Owners of Unilever are
Margarine Unie and soap maker from British called Lever Brothers. Organization is based in
London, England. Unilever has 400 brands. Its workforce size is around 1,55,000.
Unilever deals in products which are related to consumers skin care, cleaning agents, personal
care, toothpaste, food, drinks, candies, baby-food, pet food, pharmaceutical and chewing gums. It
also provides its products in consumer healthcare, bottled water, pregnancy test kits, ice creams,
cheese, frozen pizza's, juices, breakfast cereals, coffee and tea. It has 2.5 billion customers who
use its products in all countries worldwide (Kokodey, Gnezdova and Lomachenko, 2018).
EXTERNAL ENVIRONMENT
The huge image of external environment can also be referred as general environment
which is an inclusive concept that includes entire outside factors as well as influences that affects
the operations of business that Unilever must respond to balance its operations flow.
General environment is confidence of the elements that are non-specific in the surroundings of
organization and impacts on its activities. These factors include some dimensions that are
political, economic, sociocultural, technological, environmental and legal which effects an
organization very broadly and gradually (Pan, Chen and Zhan, 2019).
It is extremely important tool which is helpful in understanding the situation and perform the
duties of deciding essential thighs required as firm success is depended on the precise ability of
decision-making. Studying and analysing those factors enables the organizations to choose the
best choice and option for acquiring growth and success within the company. It is also important

for analysing this environment because it plays a crucial role in shaping up the future of whole
industry and business. It supports in keeping business ahead of the rivals and adjust strategies
according the requirements in operations of the company. Recognizing the elements which can
affect performance and reputation of the firm also help in achieving objectives of it and identify
the threats that can be faced in the future. These elements also support in implementing new
plans to grab the opportunities which are analysed in this environment.
APPENDIX
GENERAL
ENVIRONMENT
 OPPORTUNITIES  THREATS
Political  Political stability
 Developed free trade
relations
 Brexit
 Restrictions related to
export and import
Economic  Maximum wages and
economic stability in
growing countries
 Increasing wages
Social  Rising health
consciousness and
behaviours
 Dismantling if dividing
gender gradually
 None
Technological  Raise in business
automation as well as
decreasing prices of
transportation based on
efficiencies of
technology
 Increased automation
of business and raised
investments of research
& development
Environmental  Rising interests in
environmentalism of
 None

business
 Maximized business
efforts related to
sustainability
 Rise in complexity of
programs that are
environmental
Legal  Rising complexity of
environmental
regulations
 Strengthening patent
laws that are
international
 Strengthening right
laws of customers
 None
CONCLUSION
This report concludes that the global business environment is continuously changing the
worlds flexibility and way of responding to the challenges, threats and opportunities by using a
tool of analysing its general environment and acquirer growth and success globally. It is also
considered that monitoring these lead organizations to improve strategically and can also explore
market trends worldwide.

REFERENCES
Books and journals
Kokodey, T., Gnezdova, I. and Lomachenko, T., 2018, October. Modeling the global business
environment based on polycyclic theory. In The International Science and Technology
Conference" FarEastСon" (pp. 487-499). Springer, Cham.
Pan, W., Chen, L. and Zhan, W., 2019. PESTEL analysis of construction productivity
enhancement strategies: A case study of three economies. Journal of Management in
Engineering. 35(1). p.05018013.
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