External Factors Impacting Unilever

This assignment examines the influence of various external environmental factors on Unilever's operational management and leadership decisions. It delves into political, economical, social, technological, environmental, and legal (PESTLE) factors affecting Unilever, using examples to illustrate their impact on the company's performance. The analysis highlights how Unilever must adapt to these changing circumstances to maintain success.

Management and
Operations
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Contents
P6. Business environment factors that impact in
operational management and decision making by
leaders and managers..........................................3
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P6. Business external environment factors
that impact in operational management and
decision making by leaders and managers.
Unilever is international company which
manufactures number of products and services in
wider area. The manager of Unilever set the goals
and analysis the performance of employees in order
to achieve objectives. It contains external
environmental factors such as CSR, culture, values,
ethics and sustainability which influences
management and leadership.
CSR: This means corporate social
responsibility which is used to set the procedure of
business activities in order to development and
growth of country. Such as Unilever's manager
increases the productivity and contribute in the
development of country.
Culture: This is effective factor which is
used by Unilever's manager to define the beliefs,
assumptions and values that contributes in social
and psychological environment. If manager will
focus on employees performance and their need
then it can increase its production that will leads to
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achieve organisational goals (Vahid-Pakdel and
et.al., 2017).
Values: This means broad preference by
concentrating on actions and outcomes. For
instance, Unilever's manager give preference to
customer and employees that reflects what is right
and wrong by using operation and management.
Sustainability: This is also essential factor
that help to sustain in competitive market by
producing new products. Such as,Unilever's
manager analysis the needs and wants of customer
and make efforts of fill their wants. It innovates
new products and services that help to sustain in
competitive market.
The PESTLE analysis of Unilever is described
below-
Basically, the PESTEL analysis is useful to
analysing the external factors of the environment.
This is very useful for the companies to do this
analyse so that they can evaluate about different
kind of factors which may effect the performance
of the organisations. Herein, the aspect of the
Unilever company it is important to implement the
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PESTEL analyse so that they can analyse the
external factors. The PESTEL analysis of the
Unilever company is mentioned below:
Political factors- It is important for the success of
the business that political situation should be stable.
If political condition is unstable among different
countries then it will be difficult to do the business.
The Unilever company offers their products and
services in different kind of countries. If political
relation of UK is not well other countries then it
will be tough for the company to operate different
business activities..
Economical factors- The economical factor
consists interest rates, inflation rates etc. If these
rates fluctuate then it will be difficult for the
companies to run the business. The economical
condition of the UK can impact the Unilever
company. For example if interest rate increase then
it will be tough for the company to get the loan
from the banks because cost will be high.
Social factors- The social factors includes
culture, religion, population, perception of the
customers etc. Companies are needed to make their
policies as per the social factors. This is why
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because these factors can effect the performance of
the company. Herein, the aspect of the Unilever
company, it is important for them to provide
products and services are per the social factors,
otherwise it will be difficult for them to attract new
customers.
Technological factors- The technology is
getting change continuously and organizations are
needed to apply these new and advanced
technologies in their process. In the absence of
proper technology adaption it will be difficult for
the companies to sustain. Like in the Unilever
company, it is necessary for them to apply new and
advanced techniques in their system so that they
can attract more customers (.Viveros Gunckel and
et.al., 2016).
Environmental factors- The environmental
factors contain the climate changes, natural factors
which can impact the companies. Eventually, this
factor is not under control of the companies. If any
disaster occurs then it will negatively impact the
company. In the aspect of the Unilever company,
changes in the environment of the UK can impact
their performance.
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Legal factors- The legal factors includes
legal laws, rules and regulations which are needed
to be followed by the companies. These are
determined by the government of the country and
require to follow by the companies. In the context
of the Unilever company it is important for them to
follow all the legal formalities, rules and regulation
of government to sustain in the market (Wild,
2017).
From the above factor it can be concluded that
Political, legal and social factors impacts on
business organization such as if UK's government
has changed the policy o tax rate then it impacts
negatively on Unilever. As the Unilever has to pay
much money in importing and exporting the
finished goods. In case of social factor if the culture
and tradition of people changed then organization
has to focus on people taste and their preference
that impacts negatively as manager need to analysis
the market and get the needs of customer that may
be difficult for Unilever. On the other side,
Unilever is facing lack of productivity because
industry is not following workmen compensation
act and minimum wages act that impacts
organization as result employee turn over.
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Therefore, these factors impacts on Unilever
negatively that can reduce its profits.
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