Unilever: Analysis of Business and Business Environment

This report analyses the external and internal business environment of Unilever, a British multinational company. It uses the PESTLE framework to analyse the external environment and SWOT analysis to determine the internal factors. The report critically reflects on the findings and evaluates the influence on decision-making processes.

Business and Business
Environment

TABLE OF CONTENT
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
External environment analysis (macro).......................................................................................3
Internal business environment ( Micro analysis).........................................................................5
Critically reflecting of the finding evaluating the influence on decision-making processes.......7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
The business environment is mainly defined as the process which helps in analysing the
factors impacting the business while operating in the dynamic surroundings. Unilever is
recognized as the global consumers products company established for serving wide range of
product while operating in the business environment. It is mainly organized for serving the food
and refreshments, personal care and the beauty products. The internal and external factors
pertaining in the environment manly influences the need and wants of the consumers for
purchasing the products. This report provides details about the Macro and micro business
environment of the Unilever the British multinational company.
MAIN BODY
External environment analysis (macro)
The external environment of the business mainly aims in defining about the factors which
is impacting the business internal operations. As by using PESTLE framework helps in analysing
this environment.
Political factors
Political business environment mainly aims in defining about the rules and regulations
imposed on the business and must be followed by the companies as to obtain the competitiveness
while operating in the dynamic business environment. Unilever is mainly recognized as for
operating and serving wide range of product portfolio among the consumers. It is mainly selling
the home care products, beauty care with the personal care (Unilever PESTLE Analysis, 2022).
Due to the changing rules and regulations by the government this impact the company and its
operations. With this complying with all the rules and regulations in the business aims in
cooperating and conducting all the business for sustaining in the dynamic business environment.
Economic factors
The country economy is also impacting the business and its operations, as the economy
of the country mainly impacts the consumers buying power for purchasing the products. Further

more, the county employment level impact hiring the skilled workers. Also the boom in the
economy helps in earning more revenue and the profits for the company. Further the high level
of unemployment in the country impacts the business and its operations, with this serving with
the high prices to the consumers results in non affordability of the food products served by the
company.
Social factors
While operating and serving wide range of consumers as it mainly impacted by the
societal factor, their attitude, value, beliefs, preferences and the changing trends in the market.
This results in adopting the company to comply th all the new trends in the personal care and the
beauty products to attract the consumers. But the Brexit and covid pandemic impact the
consumers purchasing power due to the highly impacting factors of the virus on the consumers to
purchase more organic in nature. Also the physical stores of the company is shifted with using
the online platform due to the restrictions of the government being imposed on the country. Thu,
the massively shifting of the consumers buying products impact the purchasing power.
Technical factors
With the changing technology and the trends in the market impact the business and its
operations. As for innovation and introducing the new products, the company adapt various latest
technology to sustain in the competitive market. The constantly changing the internal operations
for better production helps in producing and improving the products with providing the best
quality in nature. As the R&D of the company helps in improving the business process by
adopting the latest technology as by minimizing the expenses with optimizing all the operation
with efficiently using the resources. Thus, with adopting the new technology and the procedure
in the business helps in adopting and producing the products by adding new features which helps
in attracting large number of consumers while operating in the dynamic market for sustaining to
attain the competitiveness.
Legal factors
The legal laws and regulations imposed by the government helps in attaining
competitiveness while sustaining in the dynamic market. With diversifying to high range of
market into the food, person care, beauty care products the company is mainly complying to
various legality and laws pertaining in the market. With this the company is able to maintain and
give taxes, providing employee safety and concerning with all the health laws in mind as to

operate at the international level. The company must protect their patent rights for attaining
growth, also due to changing laws and legislations may impacts the company.
Environment factors
While operating in the highly dynamic environment the company is successfully
establishing with providing the environmental friendly products to attain the ultimate goal which
helps in building the brand image of the company. With dedicating to achieve the 100%
sustainability for providing the products by packing the plastic free and recyclable in nature.
With implementing and achieving all the sustainability goals help the company in achieving and
enchaining the image of the business to attain the competitiveness while operating in the long
run. The product designed in the company are safe in nature and with using the eco friendly
materials. Further more with operating with the strong CSR level helps the company to increase
the consumers satisfaction and the overall efficiency to sustain and produce the product with
satisfying the consumers.
Internal business environment ( Micro analysis)
With using the SWOT framework helps in analysing the business internal factors
impacting its operations. This helps in addressing the four aspects of the business mainly the
strengths, weakness, opportunities and threat pertaining in the company while operating in the
dynamic market.
Strengths
Unilever is mainly recognized with serving wide range of products with providing the
portfolio with adopting the changing needs and preferences of the consumers helps in satisfying
and attaining the competitiveness. With operating with more than 190 countries results in
recognize with the global consumers with creating the best brand image (SWOT analysis of
Unilever, 2022). Also the company is heavily funding with the research and development
activities which helps in operating in Selling the distinct feature products than the competitors to
attract the large number of consumers market. Also with forming the flexible pricing of the
products helps in attracting the large consumers market to willingly pay the prices being charged
by the company. While operating with hiring the excellent workers and the staff personnels helps

in inclusively involving the employees to work reflectivity by hearing their voices. Also with
strongly advertising and promoting the products in the market helps in attracting the large
consumers market for establishing and attaining the competitiveness. Thu, the external factors
impacts the organisational strengths and the achievement of the goals to attain the success for
surviving in the long run.
Weakness
It mainly defined as the factors impact the company profits and its earnings. As the
product offered by the company are easily substitutable in nature which hinders in attaining
competitiveness while producing the personal care, beauty and the food and refreshments by the
company. As the products produced by the company are imitable in nature which results in
attaining the issues. With operating in the highly competitive market results in comprising for
earning the less profits with the low margins with remaining with charging the constant pricing.
The main competition of the company includes the Proctor and gamble also the nestle. As the
company is mainly providing the products which are used daily this induces the consumers to
easily substitute the products with the local and which are available in the market (Faria and
Cunha, 2022). Thus, the external factors impact the company also the social factors are related
and impact the decision-making of the company products towards establishing the prices due to
consumers and the high level of substitutes.
Opportunities
The business to attain growth in the market, must enter into new emerging markets and
the economy this helps in attaining competitiveness while operating in the dynamic market. With
entering into the emerging economies helps in developing and serving the high standards
individual which results in attaining more profits for the company. Also with growing and
adopting all the changing trends of the lifestyle patterns helps in moulding the products an
attracting to target the consumers (Du, 2022). With entering into new market helps the company
to tap the wide diversifying opportunity with serving the diverse consumer base (Unilever SWOT
Analysis, Competitors & USP, 2022). The emerging factors of the health conscious products
helps in arising and attaining growth in the company. Thus, the company is able to adapt and
with adopting the changing social trends, and being responsible towards the environment with
packaging products in all the recyclable in nature helps in developing the good image of the
company in front of consumers by adopting all the ethical means.

Threats
While operating in the dynamic global environment, the Unilever is impacted by the
global pandemic conditions. This impacted the company earning and the revenues for sustaining
in the long run to remain competitiveness. Also, with the ever-increasing of the private label
brands and the highly new entrants for Selling FMCG products results in impacting the
operations. Also, the highly substitutes limitability while operating in the dynamic market impact
the company and its operations (Ahmad and et.al., 2021). With the global crises impact and
shrinks the consumer incomes which impact the purchasing power and capacity to purchase the
highly prices products serves by the company, this reduced the revenues earning capacity of the
company to sustain and operate in the long run. With this the consumers tends to buy less as they
are mainly insisted on saving the money to operate and sustain in highly pandemic
(Setiyaningsih, 2022). Also, the Asian market was considered as the thereat for the company to
serve and provide the product in the international markets. Due to highly new entrants as of
private label brands for Selling the products at low prices. The main and most important thereat
for the company is the high level of competition to sustain in the market. This results in attaining
few margins with shifting the consumers to purchase the new brands products with paying less
money.
Critically reflecting of the finding evaluating the influence on decision-making processes
With this finding from the Unilever, I have been able to analyse that the company is
mainly producing the products which helps in fulfilling the daily needs of the consumers with
Selling the FMCG products. The product portfolio of the company is mainly involving the
personal care, beauty and the food and refurbishments in nature which helps in satisfying the
daily needs of the consumers. With the above factors I have been analysed that the threat of the
Asian countries competitors with the highly available of substitute products in nature is
impacting the company and its operations at large level. By analysing the internal operations of
the business, being able to adapt an work for attaining the 100% sustainability with packaging
the products which are recyclable in nature helps in generating growth in the business which
improves its performance with operating in the highly competitive market.
Also I have understood that, the external factors of the company are responsible for
providing and adopting the changes which helps in attaining growth in the business which results
in achieving success by influencing the decision making process. From this I have understood

that the company is mainly gaining success by adopting the changing needs and operating with
highly investing in the R&D department which encourages the innovation for producing the
newly featured products. I have been able to study that the company is able to achieve success by
adopting and operating with the changes in the policies, legal rules and regulations also the
changing economy with the technical changes helps in assisting the company to attain the
competitiveness while operating as to sustain in the dynamic environment. Thus, with
understanding the factors and its influences on the decision-making helps in attaining the success
by operating the business in the dynamic environment with reassembling the strategies and
retaining the loyal consumers.
CONCLUSION
From the above report it can be concluded that with analysing the external and internal
business environment mainly impacts the business with various factors and its growth of the
company. With using the PESTLE framework helps in analysing the external and with using the
swot results in determining the internal factors which helps in attaining growth and results in
competitiveness while operating in the dynamic business environment.

REFERENCES
Books and Journals
Ahmad, W and et.al., 2021. COVID-19 Pandemic and firm-level dynamics in the USA, UK,
Europe, and Japan. International Review of Financial Analysis. 78. p.101888.
Du, S.,2022. Evaluate the importance of the board of directors to the corporate governance of
large listed UK firms. Academic Journal of Business & Management. 3(10). pp.44-46.
Faria, A. and Cunha, J. F., 2022. Decolonizing business history: the case of Unilever
historiography. Cadernos EBAPE. BR. 20. pp.118-134.
Setiyaningsih, D., 2022. Relasi Interfirm-Control dalam Konfigurasi Strategi Jejaring Produksi
Global pada Industri Teh (Studi Kasus Unilever dan PT. Perkebunan Nusantara VIII).
JURNAL POLINTER: KAJIAN POLITIK DAN HUBUNGAN
INTERNASIONAL.7(2). pp.26-42.
Online
SWOT analysis of Unilever.2022. [Online]. Available through <
https://www.marketing91.com/swot-analysis-unilever/>
Unilever SWOT Analysis, Competitors & USP.2022.[Online]. Available through.<
https://www.mbaskool.com/brandguide/fmcg/13494-unilever.html >
Unilever PESTLE Analysis.2022. [Online]. Available through:<
https://www.mbaskool.com/pestle-analysis/companies/17992-
unilever.html#:~:text=Unilever%20PESTLE%20Analysis%20examines%20the,the
%20business%20of%20the%20brand. >
[Online]. Available through: <>