Positive and Negative Impact of PESTEL Factors on Unilever

Business in Context

Table of Contents
Introduction .....................................................................................................................................1
Main Body.......................................................................................................................................1
Discuss the positive and negative impact of the PESTEL environmental factors.................1
Assess the key challenges faced by the chosen organisation.................................................4
Discuss how organisation is responding to such challenges in context to its business strategy. 4
Recommendation....................................................................................................................5
Conclusion.......................................................................................................................................5
References .......................................................................................................................................7

Introduction
Business environment is defined as the sum total of all the factors present inside and
outside the business environment and directly impacting on the operations and functioning of the
business. There are number of internal and external factors present in the business environment,
in order to enhance their performance it becomes essential for the business organisation to
analyse these factors (Zahari and Romli, 2019). For this report Unilever is taken as the base
company. Unilever is one of the well established consumer goods company headquartered in
London, England. Unilever was founded in 1929 having more than 400 brands and biggest
producer of soap around the globe. This report highlights the detailed analysis of the business
environment using the pestel analysis along with its positive and negative impacts which will
lead to influencing the organisational strategies. Also the main challenges faced by the company
are also mentioned in this report. In addition to this, how company is responding to these
challenges in context to the business strategy along with the proper recommendation are also
highlighted in this report.
Main Body
Discuss the positive and negative impact of the PESTEL environmental factors
Business environment includes the sum of all the internal and external factors that
directly creates huge impact on profitability and performance of the business (Schaltegger,
Hörisch and Freeman, 2019). In context to Unilever, in order to analyse the business
environment of the company the PESTEL analysis is taken into consideration as mentioned
below:
PESTEL analysis: It is one of the most essential strategic framework used by the marketing
manager in order to effectively analyse their business environment and various factors creating
challenges as well as opportunities for the company. In context to the Unilever, the various
factors of the analysis along with their positive and negative factors are mentioned below:
Political factors: It includes any kind of changes in the government policies and rules which will
directly influence the functioning of the company. In case of the Unilever, company is operating
in the global market and has to deal with the different political policies of different countries.
Recently the decision of Brexit has created direct impact on the company (Merkulova and
Zhavoronkova 2018). Also company is facing political restriction imposed by the European
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