E7 Emerging Economies: Impact on Business Processes and Strategies

This report critically evaluates the increasing competitive and broader economic pressures created by the growth of the E7 emerging economies (China, India, Brazil, Turkey, Russia, Mexico, and Indonesia) and their impact on business processes, using Unilever as a case study. It discusses how the E7 economies, distinct from the G7, influence global trade and customer demand, creating both opportunities and challenges for multinational corporations. The report examines the impact on Unilever's supply chain, highlighting issues in meeting diverse customer demands and managing raw material costs, particularly in markets like India and China. It also analyzes operational challenges, such as navigating labor market conditions in China, and strategic considerations for market entry and investment, exemplified by Unilever's expansion in Turkey. Furthermore, the report addresses the competitive landscape in E7 countries, focusing on the need to adapt to local preferences and compete with both international and domestic brands in markets like Mexico. Desklib provides students access to similar solved assignments and resources.

Contemporary management
issues

TABLE OF CONTENT
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Critically evaluating increasing competitive and broader economic pressure created by the
growth of the E7 Emerging Economic Power impact business process:.....................................3
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Every business organization contribute effectively in the betterment of the economy, this
simply means business is supporting pillar to country's economy. Contemporary management
issue refer to ongoing challenges in business environment that have impact on company, these
issue do not heavily impact business but can lead to business failure. Management issue are
related to internal problems that slow down speed for example; uncertainty, well-being of
employee and workplace culture. Business to plan to expand their business across different
border look for those opportunities that provide them easy way. This study is based on Unilever,
this company is one the largest retail giant that tend to rule over the industry. Unilever have wide
range of product that allow company to capture greater market share and help them to become
market leader. This report will discuss impact on countries rising economic on business
organization. Later this report will discuss those issue which company might face in the process.
At last this report will discuss impact on strategies, decision-making and operation and other part
of the business.
MAIN BODY
Critically evaluating increasing competitive and broader economic pressure created by the
growth of the E7 Emerging Economic Power impact business process:
E7 Economies are some of the most powerful economies that include China, India,
Brazil, Turkey, Russia, Mexico and Indonesia. These emerging economies promote great allies
together in terms of trade and other foreign affair, these country support their business and push
leading brand to meet demand of customer (Gyamfi and et.al., 2021). E7 is quite different from
G7 because G7 focus on super powers of the world including France, Germany, Italy, Japan, The
US, The UK and Canada. When comparing productivity both group, E7 is more productive and
allow their large brand to explore different market. Unilever is one of those companies who deal
in every E7 economies, this retail giant have access to every nation because this company is well
know for its brand image and wide range of products.
Every country have diverse culture, demand of customer is rising rapidly which is quite
challenging of the company, economic pressure have impact company to introduce those
products and service where they do not have expertise. There are many cases where Unilever
have changed their product line just because of economic demand for example; Indian customer
are demanding broader category of product that means Unilever have wide range of product that

will cover market demand (Vu, 2020). E7 economies impact Unilever and certain area of the
business organization, these are:
Supply chain: supply chain is one of the most important thing for every business organization,
this allows company to fulfil demand of customer and push company to provide those products
which have less supply. Supply chain of every business organization get impacted due to
economic change, this simply means if there is any major changes in economy then supply and
demand will be impacted (Bilovodska, Syhyda and Saher, 2018). Economic condition is crucial
thing for almost every business, unstable economy is major issue for company because if
company deal in unstable market then they might fail and face huge losses. Unilever is one of
those companies who have strong supply chain that allow them to meet demand of the customer
and hold position of market leader, this company face huge issue even after strong supply chain,
market condition of different nation impact supply chain for example; E7 country, India have
great market condition, customer here demanding wide range of product category which means
customer are demanding more product in beauty and well-being in lower range which is not
possible for the company because they do not have effective supply chain that meet, or they do
not have manufacturing unit that can provide more products in beauty and well-being.
The Indian market is unstable as E7 pressure and other major event is impacting this
market, raw material and its prices are extremely high, manufacturing is impacted. Unilever
focus on gathering raw material from other nation is costly alone in India because import duty is
high, government of India support retail giants like Unilever, this simply means support from
government help them to become part of Indian economy (Sodhi and Tang, 2019). Hindustan
Unilever is well-known retail company that meet demand of customer but at some product this
company fail to meet customer requirement, beauty and well-being products have high range.
Unilever have effective distribution channels which strengthen companies supply chain, alone in
Indian market, this company have generated over %5.4 billion in the 2020 and become the
largest consumer good company. E7 pressure on India push them to allow retail giants to import
goods from different nation in affordable price.
Along with this, the country Russia is also having a large market area and where the
company Unilever can get an effective growth and development (Rahman, and et.al., 2019). The
supply chain management of the Unilever in the Russian country is good because the current
market is demanding the Unilever products in higher range from which the supply chain

spendings of the company covers the entire market successfully. The cosmetics is the best
business for the Russian market where the Unilever can have a great deal. The Russia
government is also supporting the international companies to be got established in their country
from which there country reputation and success growth can be stable and can make their
country as a developing country. Russian market is very fruitful for the Unilever country and can
establish their organization and in this E7 country (Dudin, Ivashchenko, and et.al., 2019).
Operation: operation is another important thing in the business organization, this simply means
product and manufacturing unit or activity. Every business organization have operation process
to manufacture goods and sell in the market, country's economic condition and other factor
impact operation (Brown, Bessant and Jia, 2018). Unilever have powerful operation unit, this
allows them to manufacture goods and meet rising demand of customer. Under E7 pressure,
Unilever have faced huge issue in operation process, this simply means E7 countries like China
have great influence on operation of the company.
This country is one of the most powerful and have stable economy, Unilever face huge
issue surviving in Chinese marketing. Growth of Unilever is quite low in this market even after
having economic and market stability. Reason behind this impact is because cost of raw material
is high in Chinese market and government of China support local retail business organization as
compared foreign company like Unilever, this company have limited product in China and
revenue generation is also limited (Dogru and Keskin, 2020). Apart from this, labour market
condition and unemployment become an major issue, China's rapidly rising population
increasing unemployment impact companies talent hiring process, operation process of Unilever
demand highly skilled worker which means company need to provide more wages to Chinese
worker which will rise cost in operation or in manufacturing process. This company is successful
in Chinese market but do not have that much of brand image and reputation as compared to other
nation. Operations process is highly important for every business organization, completely
depending upon nation and labour market is quite unstable. Chinese labour market condition is
quite unfavourable for Unilever, this company will face high cost because of wages and salary
they will need to provide to Chinese worker (Chary, 2017). It is very clear that Unilever will
going to face issue in Chinese market and might fail because Chinese government focus on their
own local company and support them to grow. This company have different strategies to survive

in the market but in Chinese market, Unilever will find hard to survive. Focusing on other market
of E7 is beneficial for the company.
Strategies: strategies play vital role when it comes to expansion or surviving different nation,
every business organization who deal in developing or emerging economies focus on crafting
those strategies which allow them to become stable. E7 countries push their business
organization to craft those effective strategies that can be applied to different nation and create
opportunity of foreign direct investment (yan Zhang and Van Den Bulcke, 2018). Unilever focus
on those market where their strategies can provide powerful impact, it is very clear that this
company is well-known for its strategies that allow them to get competitive advantage. Unilever
have planned to continue their investment in Turkey, this company sees Turkey is regional bases
where they can have sustainable growth. Turkey is one of those country who have stable
economy and stable market condition, Unilever have planned to expand their Ice cream factor in
Konya and invested over 95 million EUR and have planned to invest more, this company is
trusting market condition of Turkey and introducing ice cream products.
When looking at strategies of Unilever, this company is building strong supply chain eco
system which means targeting those supplier who will provide raw material in low price that will
allow company to cut their cost. Apart from this strategies Unilever has implemented the largest
factory in Konya and ready to take over Turkish. It is very clear that this company have effective
strategies, plans of Unilever are every clear to enter Turkish market with those products which
have high demand. However, Turkish government want Unilever to invest in FMCG sector and
increase their investment in the market. GDP of Turkey is emerging, this country is welcoming
international brand to place their largest factor, Turkish government is promoting these
international brand (Shukla and Cantwell, 2018). One of the biggest and most important strategy
used by Unilever is entering Turkish market with the help of import and export process, it is very
clear that Turkey have waterway that allow cargo ships to cross European and other part allow
other nation to cut transportation cost. Unilever have used this national advantage and planted
largest factor with the help of import and export power of Turkey. Although not every strategy of
Unilever is effective, of strategies have created huge issue for the company, there are many cases
where Unilever have faced issue in surviving.
Competition: competition is one of the most important thing a business organization need to
consider before entering new market or new nation. National advantage is one of the biggest

reason why international brand enter because if nation carry those resources then they will attract
international brand but this is the biggest threat for those companies who are already been
dealing in same market (Martins and et.al., 2019). Government will see their benefit and will
ignore competition that will impact already operating company. E7 countries have emerging
economies which means international brand will enter these market and provide competition,
Mexico is one of those country who have developing economies and focus on international brand
to enter these market, this country allow international brand to operate in their market. Unilever
already been operating in Mexican market which means country is welcoming international
brand, this country want other retail giants to enter in market and operate effectively.
Unilever will face competition from P&G and Tesco who have wide range of product and
are ready to provide those products in affordable price. It is very clear that country need to
reduce import and export taxes to control market unstability. Mexican market is quite
challenging as taste and preference of customer is quite different, this simply means Unilever can
achieve success in this market but need to face local retail business organization as well, this
company have wide range of product but issue is high price which only target elite customer.
Unilever have opportunity to target those group that have spending capacity and have taste
according to the product (Fichter and Tiemann, 2020). Apart from Mexican market, Unilever
will going to face competition in every E7 country because every country will welcome
international brand to operate in their market and boost their economy. Unilever will go to face
competition from P&G and Tesco in Indian, Chinese, Turkey and other E7 nation.
Product and Services
To run any business and organization, they are required to deliver the effective product and
services areas from which the consumer can be able to get attracted effectively from which the
growth of the company can be increased (Ghazouani, Jebli, and et.al., 2021). As, it has been
known that these two are the major part of the business from which the company obtains the
profit by selling their different items and products to the customer. Every business and
organization is based on the selling of the product and services from which the company is able
to generate the better revenue. Nowadays, there is a huge competition in the market field from
where the different business and companies are getting affected. The company Unilever is
already providing the numerous products and services where the E7 country India, who has a
large market of the personal care and beauty products where the Unilever is not able to match

and fulfil the demands of the Indian market (Gyamfi, Onifade, and et.al., 2022). The company
Unilever is providing the different and quality personal care products to the customer at a higher
pricing structure where the Indian market is not satisfied with their pricing structure where the
company is failing to increase their business in the India. The demand of the personal care
products is vert high at Indian market where the Unilever has to change their pricing structure to
stay successful in this market. The prices of the products is already quite high for the Indian
market where adding the additional charges of the different services makes the Unilever product
more costly where the company is very unstable to develop in the E7 country (Altiner, and
Bozkurt, 2018). For staying at the Indian market the company is required to change their pricing
structure so that they can be able to capture the Indian market and can fulfil the customer
demands and requirements effectively. By decreasing of the pricing structure of the personal care
products will make them company to obtain the higher success and productivity and can capture
the Indian market successfully.
Alternatively, the Indonesia people are very much excited and demands the personal care
products from the Unilever company even at a higher ranges as the company is providing the
qualitative products which are need. The Indonesia market for the Unilever is quite interesting
where the company can get operate their organization on the Indonesia land and can be able to
obtain the effective result (Min, and Oh, 2020). It is not essential that the business or an
organization Unilever can get a positive or only negative impact where some country market is
quite good for the Unilever whereas some markets are not suitable for the Unilever from which
they are getting impacted by the different E7 countries. With the higher pricing structure of the
Unilever on their personal care products also able to get the definite amount of growth and can
develop themselves in effective manner.
Decision-making
The decision-making process is the cognitive process which is required to be adopted by
the management of an organization for obtaining the better results and outcome. In other words,
collection the relevant information and data from which an appropriate decision-making process
can be created by the organization from which can affect the overall performance of the
company. The formation of the appropriate plan and decision-making process will make the
company to achieve the profitability and success at higher level (Doğan, Ferraz, and et.al., 2022).
The company Unilever is operating in the China where the market of the place is very huge and

high from which the company Unilever can be able to collect the excellent amount of revenue
from the market. The Chinese market requires the sustainable products for their usage where the
Unilever company decision-making process impacts widely. Unilever is not much focusing on
the sustainability areas and making the products with utilization of the plastics and other
materials. By entering the China market, the company was not known about the customer
demands and areas from which now the company is required to change their decision-making
process and implement the sustainability at their organization which will accelerate the growth
and development of the company (Gyamfi, Bein, and et.al., 2021). Adoption of the sustainability
at the company and making the products without harming the natural environment makes the
company to increase their growth and development. China market is the second largest economic
stability area where the company Unilever is facing some issue and have to change their
decision-making process. Having a wide market and economic stability does not put the good
impact on the Unilever productivity and development because of its less focus on the
sustainability concept from which the company is unable to win the China market.
Even, the E7 country Brazil is not suitable for the Unilever company as the Brazil
countries market is not stable and have fluctuations rapidly on daily basis. The Unilever
company gets impacted due to the E7 country Brazil as the market positing and economic
stability is not accurate in the Brazil from which the company cannot get the fruitful result and
outcome (Fraumeni, B. ed., 2019). The company have to change their decision-making process
and entire management process for operating in the Brazil country so that they can stable their
business accurately. The Brazil government interference makes the difficulty for the Unilever
organization to established their business at the country by impacting their decision-making
process (Prabhakar, and et.al., 2019). For growing the market for the Unilever in Brazil the
company can produce the sustainability products which will support the environment and al;so
reduces the natural harms which make the craze in the market and can enhance the company's
growth. By making and production of the sustainable products the company is accelerating the
E7 country and get impacted by changing their decision-making process by implementing the
manufacturing of the sustainable products and items.
Domestic development
Today, the growth of the E7 countries are impacting the business organization in wider manner
from which the company is not able to obtain the maximum profit. The E7 country Indonesia is

having a huge market of the home essential products and dairy products from which the
company Unilever can obtain the higher growth and development (SOYYİĞİT, 2019). The
Unilever company is facing some challenges in establishing their business at higher level
because the country Indonesia is allowing and pushing their domestic companies from which the
international company Unilever is not able to stay in their market successfully. The Unilever
company is providing the different categories of the products where the market of the Indonesia
is a huge competition for the Unilever. There are many domestic companies operating in
Indonesia where the country is investing and accelerating the domestic development of their
companies and making a trouble for the Unilever to set up their business and definite amount of
growth at the current market (Bas, Kara, and et.al., 2021). The E7 emerging economic country
Indonesia is very powerful and wider in dealing with the dairy and home essential products
where they are accelerating the growth and development of their domestic companies which is
putting the impact on the Unilever from which the company is not able to obtain the effective
outcome and result which decreases the profitability of the organization.
Trade policies
It has been already known that different countries have different types of government regulations
and policies where the trade policies also ha seen included. One of the E7 country, Mexico is
having a good market area and customer needs which Unilever company wants to fulfil but
having trouble in providing the products and services to the Mexican market people. The
Unilever has a target market of children to elderly people where the company can fulfil the
demands of the public (Xiaosan, Qingquan, and et.al., 2021). The main issue has been occurred
due to different trade policies from which the company is not able to obtain the profitability.
Trade and policies are the huge issue nowadays for the different business areas and where they
are not able to increase their profitability into the market. The E& country Mexico, have a quite
good market for the health and fitness products which Unilever is providing and dealing with the
country. But the company is facing the issues cause of the imports and exports of the products
where the government trade policies are affecting the company for the transportation and get
effect hugely. The Mexican market is well-known for the health and fitness products where the
consumers are also interested and demands the effective health product. The people of the
Mexican country is very health conscious from which the fitness products is the best business for
the Unilever (Paramati, Shahzad, and et.al., 2022). A company is obtaining the fruitful outcome

and result from the specific country where they are able to grow and develop in the market but
due to different trade restriction the company is having loses and requires to spend a lot of
economy on the trading ways from which the company is not able to get the effective result and
better growth because of this particular issue.
CONCLUSION
The report has concluded the brief about the growth of the E7 countries who are
emerging economies. The report has included the different areas of the mentioned company
which is getting impacted by the growth of the E7 countries and creating an issue in the business
stability and obtaining the profitability. Also, there are many different kinds of issues has been
mentioned which is affecting the company growth and development and making the company to
not able to grow definitely. Today, in this business developing area the E7 countries growth and
development has put the great impact on the mentioned organization. Along with this, the report
has concluded the critical evaluation on the E7 countries emerging powers and Mentioned the
great impact on the different business functions of the company. Even, it has involved the
different purposes and reasons of increasing the decreasing the growth of the company depended
on the E7 countries market areas and different challenges from which the company can be able to
stay at the particular country and business field. The report has makes the clear understanding
about the power economic countries which is putting the huge and great impact on the other
organization from which they are not able to get the successful outcome and result, due to the
growth of this emerging countries the mentioned company also faced different types of issues
and challenges.

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