Business and its Environment: Organization Types and Unilever Analysis

This report provides an overview of different types of business organizations, including public, private, and voluntary sectors, and their legal structures, focusing on their size and scope. It analyzes how organizational structure, size, and scope link to business objectives, using Unilever as a case study. The report also examines the relationship between different organizational functions and their connection to organizational objectives and structure, including the interrelationship between organizational functions and their impact on the organizational structure. A PESTLE analysis is conducted for Unilever, highlighting the positive and negative impacts of globalization, competition, and Brexit. Internal and external analyses of Unilever are presented to evaluate strengths and weaknesses, along with their inter-relationship with external macro factors. The report concludes by discussing how SWOT and TOWS evaluations influence decision-making within the organization. Desklib offers this and other solved assignments for students.

BUSINESS AND
BUSINESS
ENVIRONMENT UNIT
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Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
P1 Explaining different type and purpose of organization; public, private and voluntary sector
and legal structures:....................................................................................................................1
P2 Explaining the size and scope of a range of different type of organization:..........................3
M1 Analysing how the structure, size and scope of different organization link to the business
objectives and products and service offered by the business organization:...............................5
P3 Explaining the relationship between different organizational functions and how they are
link to organizational objectives and structure:..........................................................................5
M2 Analysing the interrelationship between organisational function and the impact that can
have upon organisation's structure:.............................................................................................7
P4 PESTLE ANALYSATION FOR UNILEVER COMPANY:................................................7
Positive and negative impacts of globalization, competition and Brexit on Unilever................9
P5 Internal and external analysis of Unilever in order to evaluate strengths and weaknesses.. .9
P6 Inter-relationship of strengths and weaknesses with external macro factors.......................14
M4 The ways in which SWOT and TOWS evaluation influence decision-making.................14
CONCLUSION..............................................................................................................................15
REFERENCES..............................................................................................................................16

INTRODUCTION
Business is a combination of various activities which involves occupation, commercial services
or trade activities which involves exchange of goods and services to increase the profits. These
profits can be achieved in any form such as money as well as exchange of any entity. the
business organizations are involved in number of different activities in which the organisations
deal with producing and manufacturing of goods. There are different types of business
depending upon the demands and the resources available for use (Brogaard, 2019). The
manufacturing business deals with manufacturing of various products such as plastics products,
steel manufacturing plants and fabric manufacturer. These business types produce and sell
products either directly to the sellers or to the middleman who sales it further.
In merchandising business type, the organization buys goods and products from other
producers and then sell it in the market at retail price. In hybrid business type the organization
performs two processes simultaneously. The service business type deals in providing the
services of products to the customers. The Unilever is a multinational company which deals in
consumer goods such food products, beauty creams, vitamins and other nutritional supplements.
Stores of the Unilever company are situated in 190 countries (Chow, 2018). The report will
illustrate the different types, scope and size of the organization along with comparing the
interrelation of various functions. It will also highlight the negative and positive impacts of
macro factors along with determining the internal weakness and strength in relation to macro
factors.
MAIN BODY
P1 Explaining different type and purpose of organization; public, private and voluntary sector
and legal structures:
Business organization is wide term, there are different type of business structure that
allow company to become stable in the market. Every business fall under on type which means
either they will be public, private or social organization, under UK Company Law, entrepreneur
need to clear whether their company is public or private. There are different type of business
structure, these are:
Public limited company (plc): public limited company is one of the most common type of
business structure, a PLC is public company that have wide range of product and tend to rule
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over industry. Public company is open for public and welcome customer from local market,
large scale Plc are listed on stock exchange where consumer can buy share of those companies.
Unilever is public limited company who have wide range of product, this company is one of the
largest retail giant who tend to rule over the industry (DuFour and Reeves, 2016). This Plc is
listed on London stock exchange and have great market share. To form a public limited
company, there is legal process, at first minimum of two directors needed to form a company
and their power will be equal. Under HMRC (Her Majesty' Revenue Customs), representative
have to list their income tax form to this department and need approval to start plc in market of
the UK.
Private company: private company are been run by sole trade who enjoy profit alone and take
risk alone, these type of business structure are most common where business person start their
company will small amount of funds. Private company also have ability to rule over market, it is
very clear that there are certain private company who have achieved great success and are listed
on stock exchange (Hope and Vyas, 2017). UK have successful private companies, for example;
Pentland Group is one of the most successful private retail and whole sale company that tend to
rule over retail market. This company have great market share are capture large area of retail
sector. To form legal private company in the UK, sole trader do not mainly have to perform any
legal process. They need to provide self-employed certificate and need to register their ID to
HMRC (Her Majesty' Revenue Customs) to clear income tax and other forms of tax. In the UK,
company need to be legally separate from owner which means private company will be separate
legal entity.
Voluntary organization: voluntary organization is one of the most common but most important
that provide non-profit service to general public, this type of company perform business only to
serve nation and its people. This type of business do not have greater market share, but they tend
to fulfil demand of the public, British Heart Foundation is one of the most popular voluntary
organization that provide voluntary service to public (Schwabenland, 2016). To form such
voluntary organization in the UK, non profit organization need to list their subject on NCVO
(National Council for Voluntary Organization) and approve them to run such non profit
organization. There are certain other certificate which they need to get from the government and
from the National Health Service to start non-profit organization.
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P2 Explaining the size and scope of a range of different type of organization:
Mirco business Small enterprises Medium and large
scale business
Size Mirco: Mirco business
are one of the most
common and can be
found in large number,
micro are small
business that run in
local area and have
fewer employee.
Trader of this type of
business focus on
limited audience and
do not perform
business
professionally, it is
very clear that micro
business are operated
by single person as
they profit generating
capacity is quite low.
There are more than
5.7 million mirco
businesses in the UK
who contribute
actively in the
betterment. Investment
capital is quite low in
this type of business
and this capital is
Small business: small
scale businesses are
owned and run by
those sole trader who
want to increase their
business process and
have dream to rule
over industry (Kersten
and et.al., 2017).
Every large scale
business was small at
starting stage, from
investment and
successful business
process they become
large scale. Almost
every private company
of UK is owned by
small businesses and
have great impact on
economic growth,
there are almost 5.5
million small
businesses in the UK
with less than 50
employees and with
small capital
investment. According
Medium or large scale:
medium or large scale
business play vital role
in the country, they not
only rule over local
market but there are
many large scale
companies who tend to
rule over global
economy as well.
Medium scale
busineses have wide
range of product that
fulfil demand of every
type of customer,
every large scale
business enterprises
know how to win
customer with the help
of marketing. There
are almost 35600
medium scale
businesses with less
than 249 employee and
there are almost 7700
large scale businesses
with more than 250
employee and even
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raised by owner
themselves. Corner
shop or stall fall under
micro business, but
they play vital role and
even faces challenges
due to unstable
economy.
to Companies Act
2006, small businesses
do not generate more
than 6.5 million euro.
These business
contribute actively in
the betterment of the
economy and provide
support to company's
national business
structure.
more than that. This
type of businesses
actively contribute in
the betterment of the
economy.
Scope Mirco businesses:
mirco businesses have
limited range of
product and have
limited market share, it
is very clear that this
type of businesses not
mainly impact national
business structure but
have great contribution
to the economy
(Prasanna and et.al.,
2019). Mantons Card
is one of the most
successful micro
business of the UK,
this mirco retail
business do not have
wide range of
products, but they
Small businesses:
small businesses have
great role in economic
and country
development, this
simply means small
businesses focus on
innovation and try to
become large scale.
Pentland Group is one
of the best small scale
business who have
small but important
contribution in retail
industry, this company
provide retail products
and have wholesale as
key business. This
company have
contribution in the
Medium and large
scale: medium or large
scale businesses are
key pillar of the
industry, they not only
contribute in the
betterment of the
economy, but they
focus on making
company leading
brand of the world and
boost country;s
reputation. Unilever is
one of the largest retail
company of the world,
this company actively
contribute in the
betterment of
economy. Unilever
have great contribution
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have the best selection
of greeting cards and
gifts. This micro
business have great
contribution in
boosting local
businesses, this
company is slowly
growing and sole
trader is planning to
focus on wide range of
product to become part
of retail industry.
economic
development.
in the economic
development and on
industry development.
M1 Analysing how the structure, size and scope of different organization link to the business
objectives and products and service offered by the business organization:
Business structure play vital role when reaching audience and selling products, it is very
clear that type of business structure decide effectiveness of product and service offered in the
market. When looking at micro environment, Mantons Card have great reach in local or small
scale area, it is very clear that this company have successful retail structure that fir best in micro
business area. Whereas, small scale business Pentland Group have great market share in small
scale business area, on the other hand, medium and large scale business area have different type
of company, and they have great impact on economy. Unilever is one those companies who fall
under large scale business area and have great market share, this company tend to rule over
industry with the help of brand name and image they have in the market of retail industry.
P3 Explaining the relationship between different organizational functions and how they are link
to organizational objectives and structure:
Every business organisation have different structure that provide support to the company,
these department have their own role and responsibility which they need to complete to achieve
organisational goals and objectives. There are certain pillar of business for example; human
resource department, marketing department and finance department (Abbasi and et.al., 2020).
All these department are connected with each other and support each other to achieve overall
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organisational goals and objectives. Unilever have different department who have great
coordination which allow them to become more stable, human resource function is connected
with finance department and marketing department is connected with R&D department of the
company. Unilever's have different function, these are:
Human resource department: HRM is one of the most important pillar of the company, this
not only handle and manage people but this also focus on other department of the company. HR
is connected with finance team because salary and wages are been provided by HR department
but finance is provided by finance department in the process (Mathis and et.al., 2016). Unilever's
HR department coordinate effectively with finance department, this company have great culture
which promote internal strength and allow company to be stable. It is very clear that HR has
their own role in increasing performance of the company, Unilever strong HR strategies that
allow them to become stable. Crafting effective strategies allow company to boost their
performance, managing organisational performance depend on HR department of the company.
Marketing department: marketing department is another important pillar of business
organization, this allows company to promote their product and service and help them to
increase brand image. Marketing is crucial for business, this fuel boost sales and help company
to generate surplus profit. Unilever is one of those companies who focus on marketing, this
company heavily spend on market with coordination finance department. It is very clear that
marketing need finance this allow them to reach wide range of audience and sell their product
(Baines, Fill and Rosengren, 2017). Unilever have both, online as well as offline marketing that
allow them to reach wider area of market and target right customer. HR of Unilever hire those
marketing expert that can provide expertise to the company.
Finance department: finance is one of the most important thing in every business organization,
this allows company to become stable internally. Finance department make sure financial
stability is maintained. Every expenditure and spending is controlled by finance department,
company and other department depend on finance department as this will provide financial help
and budget to spend. Unilever 's finance department is very stable that provide financial stability
to the company, this company generate surplus profit and manage that profit effectively.
Financial stability is very important for every business organization as this allow them to
achieve goals with financial stability. This department craft effective strategies and allocate
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budget, every department is somehow connected with finance, entrepreneur themselves keep eye
on finance department as this carry most important element of the company (Schell, 2021).
Operation department: operations means production and manufacturing process where
company have to craft effective strategies to improve company's performance. Unilever is one
those companies who focus on production and manufacturing process to become stable in the
market, this company have effective supply chain management process which allow them to
provide and fulfil demand of the customer (Suarez-Barraza, Miguel-Davila and Vasquez-García,
2016). This company have their own supplier who provide raw material at lower cost, Unilever
have strong supply of raw material at reasonable cost allowing company to reduce overall
production cost. Operations department is connected with other important function of the
company such as; operations to R&D team and operations with human resource department and
most importantly operation with finance department.
M2 Analysing the interrelationship between organisational function and the impact that can have
upon organisation's structure:
Every function is connected with each other, which means company only can grow if all
department work collaborate and achieve overall organizational goals. There are certain benefit
of working together, but there are certain limitation as well, each and every department have
their own goals and objectives that might impact other department.
P4 PESTLE ANALYSATION FOR UNILEVER COMPANY:
Political factor: The Unilever company functions globally in 190 countries with over 400
brands. The various trade policies by different countries after the CONID 19 pandemic can
affect the market of the Unilever with different law policies of different countries. The BREXIT
has also implies many trade and transport policies which the Unilever company has to follow to
mat the customers’ demands (Mintchev and Moore, 2019). These restrictions could hinder in the
growth of the company. The unstable condition due to present COVID situation has resulted in
uncertainty for the Unilever company due to various new trade policies imposed by the UK
government.
Economical factor:The Unilever has so large market dealing with millions of customer and to
keep the customers attract red the company has to keep the price of its products low. Due to the
recession in economy due to COVID there has been rise in the prices of the Unilever's company
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and the customers can’t afford such high rates, so they choose to buy from other company’s in
EU (Markandya and et.al., 2021). After the Brexit London has separated from the European
Union which further increased the transportation prices for the company thus increasing the
prices of the products. This leads to cut down the customer market for the Unilever company.
Social factor: The company Unilever focuses on producing the best quality products for its
customers to build a strong bond with its customers (Sivakumar, 2021). The company produces
the food and personal beauty care products which are user-friendly and do not cause any harm to
their skin. Company meets with the desires of the customers to look good along with no side
effects by the products. Marketing of various shampoos like Dove by Unilever has earned the
high trust level among the users. The expanded market of the Unilever has fulfilled the
expectations of the consumers as the company advertise its products in various languages
according to the customers needs.
Technological factor- Unilever company has large market since and to meet the demands on
time the company has adopted the use of the latest automation technique to track the orders. The
company also various inline stores which focuses in dealing with the customer's queries and
sales products online. This use of technology has helped the company in meeting with the
growing demands of the customers all around the world. Without the use of technology the
company would have faced many problems of cash flow and less profit rates. The company can
also use the latest R&D division which will further help the company to launch the products in
various areas to increase the market.
Legal factors: Operating worldwide the company has to keep in mind the policies of different
trade policies of different countries. It also has to preserve the customers rights. The Unilever
company has to ensure the product safety for its customers along with the safety of its
employees following legal rights. This ensures has helped the Unilever company to expand its
market in various regions. After Brexit the EU has imposed new trade policies for import and
export of the goods and services which has led to increased prices of the products due to meet
the demands of high fuel and diesel. Since the company runs worldwide it also needs to take of
its patents and to keep the patents safe from fraud ism.
Environmental factor- Unilever company produces the best quality products for its consumers
which are safe for use foe the skin as well as healthy to eat. The products are echo friendly and
are easily bio degradable. The environmental friendly nature of the products has build trust
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levels among the users for Unilever company. Unilever company has made new changes in its
policies to achieve the 100% reuse of the plastic products.
Positive and negative impacts of globalization, competition and Brexit on Unilever
Globalization : With increase in the demands for good quality products for skincare all over the
world, Unilever has fulfilled the demands of the consumers all over the world by ensuring
products quality through a network of good transport and communication. The rise in the
economy of the company has resulted in increased living standards for the people, and thus
globalization in this sense has proven positive for the company (McCall-Smith and Rühmkorf,
2018). Globalization in hard sense has laid some problems for the company due to different
trade policies and the legal rights of various countries Unilever need to abide by to continue the
transportation of its products to capture the large market. The increase in cost of the products
and different market strategies across the world can bring down the sales of the Unilever
company.
Competition: There is high level competition for the Unilever company due to various other
brands who deal in selling the same products in low prices to the customers who can choose
from different brands. Unilever company follows a very diverse strategic method to compete
with its competitors such as Gamble by following a well planned research study on the products'
development to meet the market needs (Langford, 2019). The company also keeps a flexibility in
the prices of products to stand out of the competitors. The post COVID situation has been
difficult for the Unilever company due to rise in the cost price of the raw materials and imitation
of products by other local business in the market.
BREXIT: UK has been part of the EU since 1973 and after its separation from the union can
lead to rise in problem for the Unilever company (Zhang and eta.al., 2020). Due to various trade
integration and the rising graph of globalization could have some unprofitable impacts for the
company due to rise in the input cost price of raw materials to meet the demands of high fuel
cost price for transportation. The supply chain of the company can face a downfall after the rise
of the products like the Marmite and PG tips the prices of these products increased by 10% due
to increase in the input prices for the import goods in UK.
P5 Internal and external analysis of Unilever in order to evaluate strengths and weaknesses
SWOT analysis
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SWOT analysis is a kind of strategic planning and management technique that is being
utilized in order to evaluate the strengths, weaknesses, opportunities and threats related to
business competition. This is the major reason that it is also known as situational assessment.
Unilever is a company that involves more than 400 brands which includes products and services
of diversified sector along with wide network which shares 25 million retailers all across the 200
countries (Faber and et.al., 2019). Below represented are the SWOT evaluation of the Unilever:
 Strengths: Unilever is act as one of the major industry leader who deals in diversified
sectors which includes food and beverages, beauty and personal care, home care, etc.
The company shares huge amount of brand portfolio by including more than 400 brands
into consideration. Moreover, they have global presence as the company is situated at
diversified locations and thus involve large amount of profit margin in all sectors.
Unilever also consists of wide retail network along with provides impressive marketing
efforts. Thus, they make it easy for their users to choose their offered goods and services
over their competitors.
 Weaknesses: Unilever faces global health crisis along with government rules and
regulations having adverse impact over the company manufacturing, procurement and
distribution department. And thus impacts the overall supply chain into most negative
ways. Due to pandemic situation from past two years, the company feels recession within
the demand because of customers fluctuation behaviour. Although, company tries their
maximum to expand their business channels through digital techniques. For this, the
technological as well as social changes are disrupting Unilever's traditional brand
communication models.
 Opportunities: With the enhancement of online platform trend, the Unilever also have
to create their online presence into emerging market area. During Covid-19, customer
highly focused and shift towards online platform and thus, the company also capitalize
over online shopping trend. They also share business to business platform. As a good
company Unilever relies on over mass adoption of their products and thus for this they
have to create good relationship with their consumer base. Moreover, they can also have
the capability to expand their market area into more locations that still requires their
presence in fruitful manner.
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