Report on Unilever: Evaluating Business Environment with PESTLE/SWOT

This report provides a comprehensive analysis of Unilever's business environment, employing PESTLE and SWOT frameworks to evaluate the impact of macro and micro environmental factors on the organization. The PESTLE analysis examines political, economic, sociological, technological, legal, and environmental influences, while the SWOT analysis identifies Unilever's strengths, weaknesses, opportunities, and threats. Key findings highlight the importance of adapting to changing technologies, navigating competitive markets, and addressing sustainability concerns. The analysis reflects on how these factors influence Unilever's decision-making processes, particularly in areas such as market expansion, product development, and risk management. The report concludes by emphasizing the need for Unilever to leverage its strengths and opportunities while mitigating weaknesses and threats to maintain a competitive edge in the global market. Desklib provides access to similar solved assignments and past papers for students.

UNIT 1 - BUSINESS AND
BUSINESS ENVIRONMENT

TABLE OF CONTENT
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Part 1:...............................................................................................................................................3
Part 2:...............................................................................................................................................3
Pestle analysis of the firm “Unilever”:........................................................................................3
Swot analysation of the firm “Unilever plc.”:.............................................................................5
Reflection related to the key findings and how it will be influencing the decision-making
process for the organization:........................................................................................................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................1

INTRODUCTION
Business environment is the process of collection of all the required factors of
consideration that count under the internal as well as the external business environment. The
purpose is to analyse and investigate different types of business firms, their size and
classifications on the basis of their organizational structure, etc. All these even include the
competitive advantage and position of firms in the global market and chances of their survival in
the long run. The brief will contain two parts, one of which will include the portfolio of fact
sheets with an organizational chart that will depict an overview of business environment of three
different types of organization namely, Unilever, Tesco, and Morrisons.Given all these
business firms are of great impact on the business environment because of their global business
activities and competitor analysis. This will help in the depiction of interrelationships between
various functions in an organization and how do they link with their organizational structure. The
second part will be composed of a report that will analyse the impact of macro and micro
environment on Unilever, a multinational organization. It will also be highlighted that how these
factors can influence the overall decision-making process.
MAIN BODY
Part 1:
In poster
Part 2:
Pestle analysis of the firm “Unilever”:
The pestle analysis helps in studying about the external factors like political, economical,
sociological, technological, legal and the environmental factors that influences the organization.
It is used in different range of the scenarios and helps individual in making the strategic decision-
making. Further, analysation of the pestle factors are as follows under:
Political factor: the firm operates by having the huge range of products which likely includes
the beauty and personal care products, home care and food as well as refreshments. The firm
generates its all over revenue from the fast moving consumer goods (Sivakumar, 2021). In
accordance to this the company is abided by the regulations established by the food and drug

administration. In the international countries the firm have to abide the laws for the functioning
in the smooth way. The main political factor that may impact the company is the new rules and
regulations that are abided by the government of the United States Of America like the
introduction of the strict trade norms that will make the foreign companies live in the harder
times.
Economic factors: the development of the economy will help in the generation of more profits
and revenues. The firm if operates in the developing countries like India and China have the
higher rates of growth. These countries will provide with the employment opportunities for the
locals of the countries. In the countries like India and China there are large numbers of the
people those are not having jobs in hand. Thus, the firm by setting up in such countries can help
the individual by providing them with the jobs. But, having large number of unemployed people
will make the company to reduce its cost that may result in fewer numbers of the customers to
buy the products (Alanzi, 2018).
Sociological factor: the organization operates by having its social presence in more than
hundreds of the countries, the firm have will have to launch the products and have to marketing
activities for them so that the firm can increase the social demographics of the organization. The
firm is aware of the main fact that is that it knows about to advertise and do the marketing of
their products and services in the different languages. This might comes in front as the main
aspect for the firm to do the marketing and advertising of the firm in so many different language
that helps the different types of consumers to approach the firm (Ullah, 2021).
Technological factor: the firm knows that it is operating in the modern business environment
and the organization must continuously adopt the changing technology with the changing
environment to keep up constant in the business run and have over the competitive advantage in
the business run. The firm must acquire with the continuous changes in the operation procedure
of the firm that will help the firm in increasing the efficiency and the productivity of the firm and
will help the firm decreasing the cost (Shtal, and et.al., 2018). The firm must put good number of
resources in the research and development department of the company so the further product
launch can help the firm in growing its market presence.
Legal factors: the organization have the portfolio of their product with over 400 brands. So, the
firm have to take care of so many laws and regulations in the business run. The organization
needs to be in the business run by protecting it patents of the products too. As there are so many

of the fraudulent companies that makes use of some of the companies in capturing the market
and selling their product and this creates the confusion in the minds of the people. For the
avoidance of the legal allegations the firm needs the vigilant and capable action to be in the safe
zone. Under such circumstance the customers of the firm must be informed related to the legal
aspects and the processes of the company. This will help the organization in creating the trust in
the customer's mind and by gaining the customer loyalty.
Environmental factor: the company operates in the environment friendly ways and it is living
up to the words of the company by promoting the sustainable living. The firm is working
towards the enhancements of the sustainability goals of the United kingdom that is also helping
the firm in developing the good brand image in the public. The firm have to work dedicatedly
towards the achievement of the goals of the development as by creating its plastic packaging
reusable. Organization needs to devise various ways and technologies adoption in the reduction
of the packaging in the company. This will help the firm is reducing the carbon footprint of the
company and also of its customers.
Swot analysation of the firm “Unilever plc.”:
Swot analysation demonstrates the strengths, weaknesses, opportunities and the threats related to
the business and many other aspects. Under this the strengths and weaknesses are the internal
factors of the company on which there is some of the control and can be changed if required. The
further, analysation in the context of the firm Unilever is stated as under:
Strengths of the company:
 The firm operates in around 190 countries and has the good and vast global presence that
is combined to the top of the brand among the customers of the company worldwide.
 The firm has the huge product and the brand portfolio and have the diversified range of
the products that helps the firm to stand out in the competitive run of the business of the
company and with stand the competition (Teoli, Sanvictores, and An, 20191). This helps
the company in positioning the tap change in the consumer preferences.
 The research and the development department of the company is so highly funded and
have been made available with the resources so that it brings in the new and more
innovative product in the markets as per the preferences that are liked by the people in the
market.

 The firm have the competitive advantage over the competitors in the market, the Proctor
and Gamble because of its flexible pricing of the products and having the expertise in the
distribution channels of the company that helps in the managing the reach of the company
in across the globe.
 Organization operates by combining the globalized thinking with the local execution
level that helps the firm in pursuing the global strategies of the markets that helps in the
winning the firm in the minds and hearts of the customers that uses the products of the
company.
Weaknesses of the company:
 The weaknesses that the company faces is the operations in the uber competitive markets
in which the other global giants like the P&G and Nestle are already operating and it
dominance the raise of the stakes in the local markets in the amounts of around trillion
dollar Fast Moving Consumer Goods (FMCG) line.
 The weakness that the firm face is the products of the organization are easily replaceable
with the substitutes of the products and in the markets of the Africa and Asia where there
are less numbers of the urban buyers and more numbers of the rural buyers and the
hinterlands can use the natural alternatives for the products that the firm markets in
(Vlados, 2019).
Opportunities of the company:
 As with the growing globalization and proliferation in the markets consumers in the
markets are having the western lifestyles and the firm have the most advantageous
opportunities of launching the products related to the preferences of the customers and
gain the global market presence.
 More of the capturing with the firms market customers of the trillion dollars consumers
base in the markets of China and India this gives the company with golden opportunities
of the growing its customer base on the rapid base and it often helps the company in
imitating the customers preferences.
 In the growing markets where peoples are more aware of the health and this generates the
great opportunities for the firm in creating the new and healthy products that are made of
the organic products that will help the company in capturing the market presence in the
customers related to this group.

 The firm operates with the good presence of the social and environmental responsibilities
and by having the good emergence related to the customers and have the great
opportunities of growing as the brand with the good presence related to the sustainable
development.
Threats of the company:
 The modern crisis of the Covid 19 have made so many of the companies suffer with the
downfall in the profitability in the companies related to the FMCG group but in this the
Unilever is of no exception. These might led the company to face the threat of the
diminished values and increasing costs of the company (Puyt, and et.al. 2020).
 Though the company have the succeeded score in the market as per their competitors, but
some of the activities of the company have been criticized that made the company face
the threats related to the sustainability and its maintain the focus.
 The organization might face the threat of the smaller and the nimble local upstarts that
might offers the products with more of the values in the less cost inclusion that might led
the company's customers to change on the substitutes.
 The company might face the threat of the new entrants in the markets related to the new
age and of new type of the functioning in the markets with the more of the brand
recognition and more ability to market their products in the emerging markets and
developing markets of the goods available with the company to grow their brand value
and awareness.
Reflection related to the key findings and how it will be influencing the decision-making process
for the organization:
From the above study conducted on the Unilever plc. Made learnt about how the company is
surviving in the emerging markets and what all the external and the internal factors of the
company are impacting in the company's process and functioning on the daily basis and how
these factors are influencing the decision-making process of the company. The weaknesses that
are identified in the above study related to the company by in the way they are impacting the
firm in the negative way and how it helped in influencing the decision-making process of the
company to overcome the company's weak points like how the firm face the competition in the
emerging markets and how it is giving the impact in the negative way to the company and how
the company will be bringing out the solution for overcoming the problem and the weakness that

is influencing the business operations of the company (Angela, Saftiuc, and Maftei, 2018). The
study also made learnt about the political aspects that are also influencing the operations of the
organization in the negative as it has to face the problems related to the rules and regulations that
are abiding the functioning of the firm in negative ways by stopping some of the trade and the
barriers that are coming in between the company.
The study conducted above also helped in learning that how the firm is advancing its
infrastructure with the advancement of the technology and enhancing the working capabilities of
the firm in every process related to the production, marketing and other daily small business
operations that are being taken in the run in the company under the day to day procedure of the
company (Saviotti, 2018). This also helped in learning about the advancement related to the
growing opportunities for the organization in the growing international economies. This made
study about that how the company is getting to know about that how it will be giving the
opportunities for the local peoples to work in the company by developing the opportunities and it
will also helps the company in growing its global presence and increase the brand value and
image by proliferating the company's revenue.
CONCLUSION
The above report based on the business and business environment have concluded about the
overview of the three different types of the organizations and their growth in the international
markets in the part first. The report also shows about the explanation of the chosen organization
based on the different aspects like the background of the company, size and scope of the
company, vision, mission and objectives of the company. The report also shows about the
organizational and the legal structure of the companies selected and have demonstrated the
information about the stakeholders of the company (Cherunilam, 2021). The report also
concludes about the different business functions. In the second part of the report it is concluded
about the pestle and the swot analysation of the company and how these factors influence the
companies business operations. Further, in the report critical reflection related to the key findings
and evaluation of these factors how they influence the decision-making process in the company
have been shown.

REFERENCES
Books and journals
Alanzi, S., 2018. PESTLE Analysis. Project Management.
Angela, A.L.B.U., Saftiuc, A. and Maftei, D., 2018. Reflection of Business Activities by Mass
Media. LUMEN Proceedings, 6(1), pp.100-112.
Cherunilam, F., 2021. Business environment. Himalaya Publishing House Pvt. Ltd.
Puyt, R., Lie, F.B., De Graaf, F.J. and Wilderom, C.P., 2020. Origins of SWOT analysis.
In Academy of Management Proceedings (Vol. 2020, No. 1, p. 17416). Briarcliff
Manor, NY 10510: Academy of Management.
Saviotti, P.P., 2018. The role of variety in economic and technological development.
In Evolutionary theories of economic and technological change (pp. 172-208).
Routledge.
Shtal, T.V., BURIAK, M.M., AMIRBEKULY, Y., UKUBASSOVA, G.S., KASKIN, T.T. and
TOIBOLDINOVA, Z.G., 2018. Methods of analysis of the external environment of
business activities. Revista espacios, 39(12).
Sivakumar, S., 2021. Study of Internationalization Process of Unilever. Available at SSRN
3939738.
Teoli, D., Sanvictores, T. and An, J., 2019. SWOT analysis.
Ullah, N., 2021. A Comparative Analysis between Unilever and Johnson & Johnsons.
Vlados, C., 2019. On a correlative and evolutionary SWOT analysis. Journal of Strategy and
Management.
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