Unilever And Its Environment Name of the Student Introduction In

Introduction
In the competitive business environment, it
becomes very necessary for organisation that they
should identify and analyse the business
environment because it becomes very dynamic
which cannot be easy to predict by company
(Coreynen and et. al., 2020). That's why
companies should use important framework in
order to analyse the internal and external
environment.
Unilever And Its Environment
Name of the Student
External Environment
Political Factors: It includes all political rules and
regulations which involve political stability that
gives a great impact on organisation functions and
operations.
Economic Factors: Economic factor include
inflation rate, interest rate, economic growth, etc. It
gives a great impact on organisation as these things
decide the purchasing power of consumers.
Unilever is facing critical situation due to COVID-
19 because it gives a negative impact on world
economy.
Social Factors: Social factor include beliefs,
customs, traditions, etc. These things influence the
decision making process of consumers. That’s why
Unilever is identifying all social factors which
influence the customer decision in order to reduce
the negative impact.
Technological Factors: Unilever is currently
focusing on the use of artificial intelligence
because it becomes in necessity and also a trend
which should be follow by company in order to
take a competitive advantage.
How the company impact its
context External Environment
After analysis of all external and internal
factors, it is analysed that every organisation
should focus on identifying and analysing the
external factors because they are uncontrollable
in nature which gives a great impact on
operations and functions of company. Company
need to make strategies accordingly so that they
can overcome the challenges of external
environment. If organisation is able to analyse
the external environment and they take some
corrective action which ensures the reduction of
risk.
Internal Factors
Internal factors are the core competencies
and capability of organisation which they
used in order to overcome with the
challenges and for the success.
Strengths:
•Unilever is the international organisation
that operate in many countries and that’s
why they have a good reputation as well as
goodwill.
Weaknesses:
They are unable to increase the prices of
goods.
References
•Coreynen, W., and et. al., 2020. Unravelling the
internal and external drivers of digital servitization:
A dynamic capabilities and contingency perspective
on firm strategy. Industrial Marketing
Management, 89, pp.265-277.
•Kembaren, T., Achsani, N. A. and Maulana, T. N.
A., 2019. Dividend payouts, internal and other
external factors, and its impact on stock
price. Jurnal Keuangan Dan Perbankan, 23(2),
pp.235-245.