Strategic Management and Business Models

This assignment presents a case study focusing on strategic management and business models. Students are required to analyze the case, identifying key strategic issues, evaluating different business models employed, and considering the influence of the legal and business environment. The analysis should also explore the firm's competitive advantage and potential future strategies.

Business
Environment

Table of Contents
INTRODUCTION...........................................................................................................................2
TASK1.............................................................................................................................................2
Covered in PPT...........................................................................................................................2
TASK2.............................................................................................................................................2
P3 Relationship between various organisation function.............................................................2
TASK3.............................................................................................................................................4
P4 Positive as well as negative impact of external environmental factors on companies
operations activities.....................................................................................................................4
TASK 4............................................................................................................................................6
P5 Strength and weaknesses of an organisation..........................................................................6
P6 Interlinked advantages and disadvantages with external factors...........................................8
CONCLISION.................................................................................................................................9
REFERENCES..............................................................................................................................11
..................................................................................................................................................13

INTRODUCTION
Various macro environment factor has affect organisation performance at market place. It
is a management responsibility to analyse these elements on in order to reduce their negative
impact on business activities in long period of time. Some external factors are political,
economical, technology, social cultural, governmental, legal and many more. So that, all these
elements has affect organisation positively as well as negatively. In this report choose Unilever
firm to know the impact of macro environmental factor on their performance. It is British
intentional firm which are run their business activities approx 190 nations. Unilever has
established in the year of 1930 and provide around 400 brand like knorr, lipton, lux, rama,
magnum, hellmann's and many more (Al-Swidi and Al-Hosam, 2012). In this company 169000
employees are work and earn 6.486 billion net income in the year of 2017. In this assignment
covers types and purpose of company public, private and voluntary with their scope of different
organisation. It also covers relationship between various firm function and internal as well as
external analysis of business.
TASK1
Covered in PPT
TASK2
P3 Relationship between various organisation function
The firms structure can be define as hierarchy which are includes all business activities
with in organisation (Dibrell, Craig and Hansen, 2011). It covers all rule, policies, duty and
responsibilities of each one employees according to their role at work place. It also explain how
information communication has been done or processed in company. It create uncertainty risk
which are effect institutes decision as well as performance in long period of time. Various kind
of department with in companies are finance, human resources management, operations,
marketing, sales, production, research and development or many more. It relationship and
advantages are explain as follows:

(Sources: Organisation chart, 2016)
1. Design and production: It is a preliminary section of Unilever where workers are used
resources in order to produce product and services according to customer's needs,
preferences, perception, demand and many more (Welter and Smallbone, 2011). The
manufacturing work want to monitoring correctly so that all available resources are used
in a appropriate manner to achieve set target. Some time manufacturing team are also
divided into two kinds first is quality assurance and second is analyst but the main
objectives of whole group are increase outputs in limited inputs in an effective manner in
limited period of time.
2. Finance department: - Balancing budget in a Unilever is very important as without the
right budget the quality of the product can be compromised. The finance department
includes accounting, controlling, and producing company’s financial statements. Finance
department affects all other departments as HR cannot recruit new people and production
cannot innovate in their product without the right budget.
3. Sales and marketing: - Company has marketing and promoting their product as well as
services to increase customer's awareness about goods (Gharajedaghi, 2011). Through
this activities, Unilever are able to sell commodities to large number of clients which help
to gain high profitability, sustainable and market position. They are create right
Illustration 1: Organisation chart

advertisement for target consumers to provide information like feature, size, price,
colour, technology etc. It help to achieve goals and objectives in given time frame
effectively.
4. Research and development: - Management of Unilever has conducting market research
to know clients needs, preferences, perception, attitude, motivational factors and many
more to produce goods accordingly. Research and develop department has continuously
improve their quality, feature and technology of goods which help to gain higher
customer's satisfaction and market position.
5. Human resource: - Human resources manager has play vital role with in Unilever. They
are organising training program for their employees to enhance skills, knowledge etc.
Through this, HR executive of Unilever are able to improve workers performance and
productivity which help to achieve goals, objectives in specific time period. Some other
work are Boots moral of staff members and hire talented candidate according to their
requirement, provide compensation plan, appraisals, promotion, transfer and many more.
Relationship of these departments and their functions with each other:
With in firm, every section has depend on each other because with this they are not able
to achieve their target on time. For example, it production department can not produce good on
time then marketing department of Unilever can not sell that product on time in resulted finance
department can not receive income on time (Kolk, 2016). Some another example, marketing
department has organising market research to know needs of clients and provide all relative
information to research and development department to produce goods according. So that both
section of institutes has inter depended on each others and can not able to play their role with out
another sector. We all know that, with out skilled workers Unilever can not able to run business
activities in an effective manner so that human resources manager has conducting training event
to enhance staff members knowledge which help to increase productivity in their work.
TASK3
P4 Positive as well as negative impact of external environmental factors on companies
operations activities
Various macro environmental elements has affect business operations activities positively
as well as negatively. So that, it is a management responsibilities to analyse it impact in remove

negative one in order to run whole business activities in a appropriate manner (Li and et. al.,
2011). Some external environmental factors are political, social cultural, economical, legal,
environmental and many more. Here are explain PESTEL analyse with it impact on enterprises
operations has explain as follows:
Political: Unilever co – headquarter is located in Amsterdam as well as London both
have face British and Dutch political interference in time of flux. So that it create negative
impact on their performance. Company has also run business activities in global level so that
they want to follow other nation political rule when they are run their business at that location.
Political impact on business operations has two type positive and negative which are explain
below: Positive: Through political action, one nation has build positive relationship with others
nation so that Unilever may easily sell their product and services at global level that help
to increase market share as well as customers portfolio. Negative: Each one nation has their own rule and policies of international trade so that
some time Unilever can not able to full fill their requirement which negatively effective
their performance. For example, US. Also their home country where their headquarter is
located has faces dual political environment which are negatively effect organisation.
Economical: Unilever has operating business at international level and all country has
their own economical growth which help organisation to grow in long period of time (López-
Gamero, Molina-Azorín and Claver-Cortés, 2011). In UK, GDP rate is very low 5.2 so that
recession time may effect selling volume of Unilever. Economical factors like rate of interest,
inflation, GDP growth, exchange rate, taxation policies and many more can create positive as
well as negative impact on firm operations performance that are explain as follows:
 Positive: Management of Unilever has run their business at Latin America, china and
India which are booming in current market environment. They have higher GDP rate 7.6
India, 7.5 china and many more (Teece, 2012). So that firm are capable to gain higher
market position and profitability in long period of time. Negative: Low purchasing power, high interest charges, high unemployment, falling
wages, devalued household consumption and less GDP rate may negatively influence
Unilever operational activities. So that, Unilever sell their product in new country where
high growth opportunities like India.

Social cultural: In current environment, social cultural habits has change with change in
nation. So that, Unilever has produce product according to full fill needs and wants of potential
customers effectively. Market trends has modify very fast so that management of the company
has continuously watch industrial scenario to gain sustainable for long period of time. Some
social cultural factors are lifestyle, spending habits, education level, perception, attitude,
motivational factors, moral, value and many more. All these elements has create positive as well
as negative impact on operational work (Meiners, Ringleb and Edwards, 2014). That are explain
as follows: Positive: Through diversify cultural Unilever are capable to achieve goals by offering
product to different nation so that if one goods can not sell in one nation then it may
possible that same commodities has needs of customers on other nation. Negative: Diversify cultural has create issues like change in demand, preferences,
perception etc. very fast so that Unilever can not able to gain profits and sustainability in
long period of time.
Technology: Through latest technology institutes has capable to achieve competitive
advantage as compare to their competitors at market place. It help to enhance market position
and gain higher customer's satisfaction effectively. Positive: Through this, firm are produce high quality of goods which help to gain high
profitability in long period of time with higher brand value. Some other benefits are fast
communication, reduce operational cost, needs fewer employees, new material
development, monitor and control quality of product etc. Negative: Technology has change very fast so that it create negative impact on Unilever
operations activities because it copy by other companies so that it create negative impact
on business operations work.
Environment: Many firms has implementing green corporate policies which has state
various kind of specific commitment in order to effective utilisation of available resources and
their responsibilities related to natural environment. Government of United Kingdom has make
rule, regulation and each one of organisation want to execute that into work place which help to
maintain environment condition healthier (Onetti, Zucchella, Jones, and McDougall-Covin,
2012).

 Positive: Contribution of institutes into environment has build positive brand image of
Unilever in client's mind which help firm to provide high worth and value at market
place. Negative: Through this operational activities should be affect so that overall Margin of
production may reduce. Low ethical practices avoid pollution water, air and area.
Legal: It refers to regulation that can be national or international. Some important law
which affect enterprises are discrimination act., healthy and safety regulation, employment law,
reduce global emissions, minimum salary act. and many more. These all rule has develop by
government of United Kingdom and compulsory to implementing by all firms in order to run
whole business effectively. Positive: It help employees to save their rights and provide equal opportunities to all
candidate according to their education and capabilities.
 Negative: Some time employees misuse their right which create negative impact on
Unilever performance.
TASK 4
P5 Strength and weaknesses of an organisation
Management of the institutes has assigned responsibilities to all workers according to
their capabilities and professional skills. For example, Unilever is a clear goals and objectives
and each one employees at every department has work together in order to achieve common aim
according to business hierarchy. Due to firm global presence, Unilever is categorises as
MNC(Multi national company) with out the development of well define enterprises structure
where the all labour can not know whom to report in whole firm. SWOT analysis of Unilever are
explain as follow:
Strength Weaknesses
 Global footprint with run business
activities around 190 nations (Palo and
Tähtinen, 2011).
 Top of mind brand recall of Unilever
product between potential customers.
 High brand portfolio with diversified
 Imitable commodities has reduce
profitability.
 Limited business diversification has
create negative impact on sustainability
of Unilever.
 Unilever has Highly depended on their

goods range.
 High investment in research and
development.
 Expertise into distribution channel.
 Price flexibility has provide benefits of
attracting large number of customers.
retailers which are effect performance.
 Low switching cost and high
availability of substitute product.
Opportunities Threat
 Growing economic demand provide
higher opportunities of sales to
Unilever at market place.
 Demand of health conscious goods.
 Higher lifestyle needs which increase
selling.
 Cheap advertisement like social media
marketing etc. save money.
 Improve popularity of private brand in
current market environment.
 Commodities limitability has create
negative impact of research and
development of new product of
Unilever.
 High competition has reduce profits
and market share.
 Increase popularity of Ayurveda goods
create negative impact of sales of
Unilever product.
P6 Interlinked advantages and disadvantages with external factors
In organisation, manager require that framework practices are accurately framed through
which they have delivered services and goods as per the customer requirements (Pham, Segers
and Gijselaers, 2013). 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 organisation, 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.
 Strengthen: Unilever take benefits for competing their organisation with others in
comparison to increased market share through making laws of government as per the
state requirement.
 Weaknesses: If the company will not function their operations, this can damage the
company's reputation.
Economic factors: As enterprise's 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.
 Strengthen: When overall economical condition is good and brand are reduce their loan
rates than manager of Unilever has emphasising the financial loans and institution of
company's operations. Through this, they are easily run their business activities in long
period of time.
 Weaknesses: Due to the fluctuation in exchange rate, Unilever has can not able to run
their business in different nations effectively.
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. As Unilever, this is essential for manager to opt the promotional practices for
rendering consumer information (Pikka, Iskanius and Page, 2011). It can assist in grabbing
attention of consumer and refraining client's attention for a longer period. 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 organisation.

 Strengthen: By knowing client needs and wants, Unilever are able to offer product
accordingly and diversify demand create opportunity for then to gain higher profitability
in long run.
 Weaknesses: Consumer are price sensitive so that low switching cost has reduce profits
of Unilever. There are lots of substitutes are available and clients are easily change their
brand thus effected Unilever performance negatively.
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 organisation and emphasising the entire sales impact that can
affect their market sales (Scheer, 2012).
 Strengthen: Higher quality product help Unilever to sell their good at different nation
effectively and get high market share as well as long run sustainability at the same
industry.
 Weaknesses: Continuous change in technology has affected Unilever has commodities
sales as compare to their competitors effectively.
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.
CONCLISION
From the above report it is concluded that macro business environment has create
negative impact on organisation performance as well as productivity in industry. There are many
different type of enterprises like private, public, non profits with different kind of working
structure like sole proprietorship, partnership, limited company etc. Several external factor like
political, technical, economical, legal, environmental etc. has create positive and negative impact
so that it is a management responsibilities to reduce it impact and run whole business activities

effectively. Through this, they are manage their work and achieve goals and objectives in limited
period of time.

REFERENCES
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Online
business environment. 2018. [Online]. Available through:
<http://www.yourdictionary.com/business-environment>.