BM461 Global Business Environment: Unilever PESTEL Analysis Report

This report presents a PESTEL analysis of Unilever, a UK-based global company, examining the political, economic, social, technological, legal, and environmental factors impacting its operations. The analysis highlights key challenges such as the need for digital marketing innovation, enhancing cost-effective products, and fostering product innovation to meet evolving customer demands and improve the living conditions of consumers. The report utilizes the SAF model to suggest that Unilever should focus on digital marketing initiatives to expand its customer base and also considers the challenges in the areas of cost effective products and product innovation. The report also covers the company's product range, revenue streams, and global presence across approximately 190 countries. The analysis also references the company's commitment to sustainability and renewable resources. The study concludes with recommendations for Unilever to adapt to the changing business environment and maintain its competitive edge. The report utilizes references to support the analysis.

Running Head: GLOBAL BUSINESS ENVIRONMENT
Global Business Environment
Name of the Student
Name of the University
Author Note

2GLOBAL BUSINESS ENVIRONMENT
Introduction:
The aim of the paper is to conduct an analysis of Unilever located in the UK, in order
to estimate the changes that is prevalent in the working environment of the organization. The
paper would indulge in a PESTEL analysis of the organization and from the findings identify
the factors that are capable of driving changes within the organization. The identification of
the factors instigating the changes would allow the organization to come up with measures in
order to mitigate the challenges.
Company overview.
Unilever is a global company located in UK. The company aims towards enhancing
the living condition of the people in an effective way. The company can boast of launching a
wide range of products in the market starting from the transnational consumer goods like
foods, ice cream, beverages and energy drinks. The beverages launched by the organization
contributes 40% of the entire revenue earned by the company. The products of the company
also includes the cleaning agents and the personal care products. The product of the company
has been spread over approximately 190 countries (unilever.co.uk 2020).
PESTLE Analysis
Political The company faces restrictions from the guidelines proposed by the
European commission as well as from the commission assigned with the
administration of drugs and food
The company is subjected to the legal factors that guides the distribution
of the product on an international level.
The success of the company is inhibited by the restrictions presented in
the export and import
Economic The affinity of the customers towards the product is suggestive of the
fact they are less likely to avail expensive products
Cost effective quality product is desired

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Behaviour of the customers directly impacts the buying behaviour of the
product
(unilever.co.uk 2020)
Social The focus of the company is on brand reputation
The focus of the customers have shifted to the well-being of the
customers. This is reflective in desire of the organization to enhance the
living condition of the people who are devoted to the brand.
Technological Innovating digital marketing in order to market their technological
innovation (Tiago and Veríssimo 2014)
Compared to the competitors the organization boasts of having an
increased level of automation.
Legal The organization being a multinational one it requires to keep in its
concern the legal aspects associated with the safety of the product,
copyright, regarding safety and the health of the employees.
Environmental The organization promotes the usage of the renewable resources and the
sustainable elements (unilever.co.uk 2020)
Challenges requiring attention
1. Digital marketing innovation- the organization need to bring about changes in their
conventional marketing channel and bring about digitalization in order to attain a
wider customer base (Constantinides 2014). Social media marketing can be used as a
way to mitigate the challenges
2. Enhance the cost effective products in order to cater to the buying behaviour of the
customers
3. The organization need to bring about innovation in order to enhance the living
condition of the customers as per the desire of the organization (Dirisu, Iyiola and
Ibidunni 2013)
Sustainability Affordability Feasibility

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1. Digital
marketing
Yes Yes Yes
2. Cost
effective
products
Yes Yes No
3. Product
innovation
Yes No No
Conclusion
Thus, following the SAF model, it can be suggested that the organization can initiate
their action on bringing about innovation in their digital marketing in order to enhance a
wider customer base.

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References
Constantinides, E., 2014. Foundations of social media marketing. Procedia-Social and
behavioral sciences, 148, pp.40-57.
Dirisu, J.I., Iyiola, O. and Ibidunni, O.S., 2013. Product differentiation: A tool of competitive
advantage and optimal organizational performance (A study of Unilever Nigeria
PLC). European Scientific Journal, 9(34).
Tiago, M.T.P.M.B. and Veríssimo, J.M.C., 2014. Digital marketing and social media: Why
bother?. Business horizons, 57(6), pp.703-708.
unilever.co.uk, 2020. Home. [online] Unilever UK & Ireland. Available at:
<https://www.unilever.co.uk/> [Accessed 16 March 2020].