Global Business Environment Portfolio: Unilever Report Analysis

This report provides a comprehensive analysis of Unilever's global business environment. It begins with an introduction to the concept of the business environment and its impact on company operations. The main body of the report includes a detailed SWOT analysis of Unilever, outlining its strengths, weaknesses, opportunities, and threats. The report then identifies and discusses the key drivers that affect the company's operations and marketing activities, such as market diversification and consumer behavior. The analysis highlights the importance of adapting to changing market conditions and leveraging opportunities for growth. The conclusion summarizes the findings and emphasizes the significance of understanding both internal and external factors in the business environment. References to relevant academic sources are also included.

GLOBAL BUSINESS
ENVIRONMENT
PORTFOLIO PAPER 2

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
SWOT Analysis...........................................................................................................................3
Key drivers that affect the company operation............................................................................4
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................1

INTRODUCTION
Business environment is the sum of all environmental factors weather internally or
externally such as employees, supply and demand, suppliers, owners, customers need and
expectation, government intervention, technology change, economic change or market trends etc.
(Elavarasan, and et.al., 2020). This factor affects the business function and operation of a
company. It helps business to finds opportunities and threats that help business to grow or affect
the business.
MAIN BODY.
SWOT Analysis
The analysis of the business environment are done through two models which are
PESTLE and SWOT which analysis the internal and external factor of the business. SWOT
analysis is based on the Unilever Plc company and shows internal and external factor.
Strength
 Unilever had a very strong brand name
in the market of retails stores. The
goodwill of the company had created
the loyal customers in the market for
longer time.
 Company had very wide product range
in their retails stores. This creates the
level of satisfaction among the
customers that provide all type of
products in one place (Gürel, and Tat,
2017). This shows the business growth
of the firms and by merger and
acquisition with other companies.
 The company had very large economic
scale that increases the production
efficiency to maintain the competitor
pricing strategy in market.
Weakness
 Imitable products range of the company
crate the weakness point (Jiang, and et,
al., 2018). In spite of heavy investment
in the company development, products
like Dove and Rexona products can be
sold by other companies too.
 Unilever had Limited business
diversification outside the consumer
goods industry. Lack of influence on
the consumer due to retail store
interruption.
 Dependence on retailer by the
consumers are also one of the weak
point of the as retailer directly affect
the buyers.

 Unilever also had a very strong global
market presence in the world which
shows the company reputation and
reinforce brand popularity.
Opportunities
 Unilever is to diversify the business
outside consumer industry. This
reduces the market risk and improve
the business resilience by entering into
the new industry line (Leiber,
Stensaker, and Harvey, 2018).
 The company can indulge in innovative
health care products which help
customer attractiveness by fulfil the
need of health conscious customers.
 Another opportunities are to make the
business more sustain and
environmental friendly to attract the
customers who are environmental
conscious towards the products. Market Development of the can help
company to grow Unilever market by
expanding into new markets by
increasing revenue from sale from the
markets.
Threat
 The main threat was the tough
competitor rivalry in the market where
increase in competition with other
companies and with retailer can affect
the business operation.
 Local producers can also produce the
same products which are offering by
Unilever due to product imitate. As
dealing in the consumer industry, goods
are very conman and can be produce by
any local producer.
 Retail stores can also affect the
Unilever store by selling their own
brand name products which are known
as house brands in the same market.
Key drivers that affect the company operation.
Effect operation and Marketing due these changes are:

1. Operation: The operation can affect when the company expand or bring changes with
the time in new market or segment. Design of goods and service should be developed
according to the business suitability. Continuous innovation of fulfil the consumers'
expectation can make the change the business operation activities and working of the
company. Operation manager meet the need of consumer satisfaction level through the
product quality. Implementing quality standard in operation process to meet the quality
requirements by using the latest technology and innovative products are been produce by
the company (Phadermrod, Crowder, and Wills, 2019.). By creating innovative products,
it helps to capture the new market segment and brings as new opportunities for the
company to grow and expand. If company had not uses the latest technology and
innovation in producing the goods, it will increase the cost of products and competitor
will grab the opportunities available in the market. As, the Unilever produce only
consumer industry it needs to be expanded in other industry such as health conscious
products and target the new customer to increase the market share of the company in the
same market.
2. Marketing: The activities which are affected the business marketing are the market
diversification of the company. The new market need to be targeted by the Unilever to
increase the consumers and sales of the company. Business diversification is the future
opportunities that are available in the market and need to be targeted early before the
competitor does. It will open the new market segment that expand the business operation
and results in the increase in brand name and create the loyal customers. Unilever can
also introduce the new segment of products to the market to increase the customers and
market share. It shows the company efforts to create the quality products to meet the
consumers demand in market. This creates the competitor more aware and make the
competitor more healthy in market. As, the Unilever is the large firm and can easily
create competitor advantage by giving the quality products in an effective price that may
not offer by other competitor companies. The new product segment can create the market
more complex and price are reduces which help company to gain more loyal customers
towards the company. However, different range of products make the company more
innovative and create the brand image in the eye of customers. Making customers more

satisfy towards the products Unilever are offering and quality they are giving to the
market in an effective price.
CONCLUSION
The report concludes that the company can face many challenges due to changing
environment conditions. SWOT analysis shows the internal and external factors which affect the
company operation and working in the country. Key driver that impact the operation and
marketing activity of the Unilever that help company to grab the opportunities and remove the
threat that cause damage to company operation.

REFERENCES
Books and journals
Elavarasan, R.M., and et.al., 2020. SWOT analysis: A framework for comprehensive evaluation
of drivers and barriers for renewable energy development in significant
countries. Energy Reports. 6. pp.1838-1864.
Gürel, E. and Tat, M., 2017. SWOT analysis: a theoretical review. Journal of International
Social Research. 10(51).
Jiang, R.,and et,al., 2018. A SWOT analysis for promoting off-site construction under the
backdrop of China’s new urbanisation. Journal of Cleaner Production. 173. pp.225-234.
Leiber, T., Stensaker, B. and Harvey, L.C., 2018. Bridging theory and practice of impact
evaluation of quality management in higher education institutions: a SWOT
analysis. European Journal of Higher Education. 8(3). pp.351-365.
Phadermrod, B., Crowder, R.M. and Wills, G.B., 2019. Importance-performance analysis based
SWOT analysis. International Journal of Information Management. 44. pp.194-203.
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