Global Business Environment: Unilever's SWOT, Key Drivers & Impacts

This report provides a comprehensive analysis of Unilever's global business environment, employing a SWOT analysis to identify the company's strengths, weaknesses, opportunities, and threats. Key drivers such as COVID-19, technological advancements, and political factors are examined for their impact on Unilever's operations, specifically within human resource management and marketing. The analysis highlights both positive and negative effects of these drivers, emphasizing the importance of strategic adaptation in a dynamic global market. The report concludes that understanding the global business environment and its key drivers is crucial for Unilever to maintain competitiveness and achieve sustainable growth, offering insights into how the company can leverage its strengths and address its weaknesses in the face of ongoing challenges and opportunities. This report is available on Desklib, a platform offering a wealth of academic resources for students.

Global Business
Environment

Executive Summary
Global business plays crucial role within organisational development and growth. Moreover,
SWOT analysis is performed as this aid Unilever to determined strengths, weakness,
opportunities and threats as well as the key drivers. In addition to this, several key drivers
COVID-19, technological advancement, political and many more have crucial impact of
operational functions which have been conducted within last circumstances in order to analysis
in upcoming times.

Table of Contents
Executive Summary.........................................................................................................................2
INTRODUCTION...........................................................................................................................1
SWOT Analysis...............................................................................................................................1
SWOT analysis on the chosen Organisation..........................................................................1
Clearly identify the key drivers from the external and internal environments.......................2
What are the impacts on the organisation...............................................................................3
Operational Impact Analysis............................................................................................................3
Examine the ways in which these key drivers (identified in portfolio paper 2 ) can impact
upon TWO of the firm’s functional areas...............................................................................3
CONCLUSION................................................................................................................................4
REFERENCES................................................................................................................................5

INTRODUCTION
Global business environment is undertaken as the understandings of business within both
international as well as domestic environment. As the surroundings is distinct from nation to
nation. Moreover, business is impacted through their domestic situations that eventually effect an
entity decision taking for formulating fuller usages of resources (Godos-Díez and et. al., 2020).
Additionally, all venture intent to perform their functions in international level for that they have
to undertake several aspects to become successful as well as manage reputation of brand. The
company chosen for accomplishing this report is Unilever plc which is multi- national
customer’s goods. Its headquarters is in London, England as well as their products incorporates
ice cream, minerals & supplements, food, well beings vitamins and others. The main aim of this
report is to perform the SWOT analysis as well as operational impact analysis.
SWOT Analysis
SWOT analysis reflects and represents the prospects of business internal surroundings by
conducting through its strengths, weaknesses, opportunities and threats. In addition to this,
particular analysis renders an facts images which are performing to assists to plan as well as
formulate strategic activities. So, the SWOT analysis is performed in context of organisation.
SWOT analysis on the chosen Organisation.
SWOT analysis of Unilever Plc:
Strengths:
Strong and diverse product portfolio: Unilever is mainly renowned for their stronger as
well as diverse portfolio of products. Moreover, the firm is essential activities into three
industries as well as it organised their divisions as per Beauty & health care, home care and food
& refreshment. In case they seek at proportions of all division in respect of turnover which are
shown in below mention table:
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From above table, whole three divisions have stronger contribution to total turnover.
Also, it is regarded as a vital strength. As there can be circumstances in which one division
conducts pessimistically, that is compensated through other two. Such as at the time of COVID-
19, sales associated with out of home foods reduced, since various nations were into lockdown
(SWOT Analysis, 2020).
Weakness
The utilisation of plastic: Unilever is common within customer’s goods sectors that
utilises various plastic for their packaging. Moreover, plastic is undertaken as polluting the
surroundings as well as into specific the ocean. In addition to this, the adverse environmental
effects of plastic are of enhancing concern to customers (SWOT Analysis, 2020).
Opportunity:
Digital sales channels: Unilever have opportunity to development with context to digital
distribution channels. Moreover, it become essential as international economy becomes much
digitalise. Within year 2020, its e-commerce sales grow in rapid manner in around 61% in
comparison to last year (SWOT Analysis, 2020).
Threat:
COVID-19: The present key threat is COVID-19, while there is performing the vaccines
currently, the pandemic are not yet under control. Within 2020, COVID-19 has huge affects
upon respective business as well as this is still unclear how quickly the circumstance would
return to normal. Additionally, it has to undertaken a scenario where 2021 still have key affect
upon outcomes (SWOT Analysis, 2020).
Clearly identify the key drivers from the external and internal environments.
From the internal as well as external analysis, various key drivers are identified which are
described below:
 COVID-19
 Technological advancement
 Political factors
 Social factors and others
What are the impacts on the organisation
There are various key drivers such as COVID-19, technological advancement, political and
many more that are identified above impact positively and negatively (Kamal and et. al., 2020).
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As due to COVID-19 Unilever‘s business sales reduced which represent adverse affects.
Additionally, the advancement of technology has positive affects upon respective entity as it
helps them to perform their business successfully through digital services.
Operational Impact Analysis
The analysis viewed as the crucial impact of operational functions which have been
conducted within last circumstances in order to analysis in upcoming times. Additionally, it
renders relevancy of data which have been utilised by firm into their tactics of operations
(Laszlo, Cooperrider and Fry, 2020). As it aids in forming vital areas and facilitate solution to
conquer from the difficulties within operative impacts. In addition to this, these elements support
them within the development of entity.
Examine the ways in which these key drivers (identified in portfolio paper 2 ) can impact upon
TWO of the firm’s functional areas.
In context of Unilever plc, so there are mainly two efficacious factors which are mentioned
underneath:
 Human resource management: Respective function areas of Unilever plc is undertaken
as the procedures of recruiting proficient candidate and provide training & development
session for their staff in order to perform the business effectively. So, the several key
drivers are COVID-19, technological advancement, political and many more which have
impact upon human resource department in positive and negative way. The COVID-19
has adverse affects on this areas as they have to layoff the staff and also it reduced its
employees salary which minimises their productivity. Technology advancement helps
them to provide effective training to its staff online at pandemic times.
 Marketing: Respective functional areas of Unilever deals in promoting goods & services
for grabbing the attention of various customers. Some of the functions that they perform
are promoting, advertisement and others. So, the several key drivers are COVID-19,
technological advancement, political and many more which have impact upon marketing
department in positive and negative way (Yazdifar, 2019). The COVID-19, political and
other drivers have negative impacts upon Unilever’s marketing department as due to this
sale get minimises.
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CONCLUSION
Based upon the above report, it has been concluded that global business environment play
crucial role within present scenario. As it formed scope for all business and required to examine
their factors that could affects upon business in affirmative and adverse way. Moreover, SWOT
analysis is useful to understand its strengths, weaknesses, opportunities and threats. Additionally,
this enables ventures for forming proficient business tactics which permit various firms’ function
for performing appropriately. In addition to this, there are several key drivers which have
positive impacts functional areas through that entity could become competent for exploring its
business effectually and appropriately.
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REFERENCES
Books & Journals
Godos-Díez, J.L. and et. al., 2020. Managing in Dynamic, Complex and Unpredictable Business
Contexts. Adapting to Environmental Challenges: New Research in Strategy and
International Business, Emerald Publishing Limited, Bingley, pp.229-236.
Kamal, M.M., and et. al., 2020. Servitization implementation in the manufacturing organisations:
Classification of strategies, definitions, benefits and challenges. International journal of
information management, 55, p.102206.
Laszlo, C., Cooperrider, D. and Fry, R., 2020. Global challenges as opportunity to transform
business for good. Sustainability, 12(19), p.8053.
Yazdifar, H., 2019. Business Challenges and Opportunities, Management, Leadership and
Innovations: Insights from Emerging Markets. Journal for Global Business
Advancement, 12(5), pp.601-603.
Online
SWOT Analysis. 2020. [Online]. Available through:< https://www.stratagoras.com/swot-
analysis-unilever/>
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