Comprehensive Analysis of Reckitt's Business Environment Factors

This report provides a comprehensive analysis of Reckitt's business environment, examining both internal and external factors that influence its operations and strategic direction. The internal analysis focuses on Reckitt's strengths, such as its strong product range and established brand value, and weaknesses, including its concentration on a limited number of brands and operation in a highly competitive market. The external analysis covers political, economic, social, technological, legal, and environmental (PESTLE) factors, highlighting opportunities in emerging markets and threats from Brexit and increasing competition. The report concludes by emphasizing the interplay between Reckitt and its environment, noting the company's impact on various external elements like the political environment, economies, and corporate social responsibility. References to relevant academic articles are included to support the analysis. Desklib provides this assignment solution along with a wealth of other study resources for students.

Introduction
Inner variables are elements that have a clear relation with the business
company and have an influence on the organisation from inside. External
influences are those that exist outside of the organisation yet have a positive
or negative impact on the organisation.
Reckitt And Its Environment
External Environment
External variables are external elements that have an influence on an organisation and about
which it has no authority. As a result, a business owner must make suitable modifications to
their growth and marketing plans in order to react. There are several aspects to consider,
which are stated below: -
Political
Political factors have a great impact in establishing whether aspects might affect Reckitt's
long-term viability in a certain area or market. Reckitt operates in the Personal and
Household Goods sector in over a several countries, exposing it to a variety of political and
political system risks.
The role of politics in business operations is very affecting, minor changes in political
policies would effect a business very badly. Reckitt conducts in different countries of the
world so it has to analyse the rules and regulations of different countries apply in business
to protect the business from legal issues.
Economic factors
The consumer spending and aggregate investment in an economy are determined by
macroeconomic factors such as inflation rate, savings rate, interest rate, foreign exchange
rate, and economic cycle.
Economic factors are closely related to business the growth of economy affects the business
organisation. Reckitt also bear loses for the global slowdown of economies, many
restaurant still closed due to covid pandemic
Social factors
The culture and way of life of a society have an influence on the culture of an organisation
in a given context. Reckitt Benckiser Group Plc managers must analyse the clients of a
particular market and build the promotional messages for Personal & Household Goods
business consumers based on mutual ideas and attitudes of the people.
Reckitt is conducting their business in many nations soi it necessary to segmenting and
targeting of buyers from different demographic areas.
Technological factors
Nowadays technology is the most important factors for the growth of business. Reckitt
spend the huge amount of their earning to acquire the new and advanced technologies.
Legal factor
Legal factors related to the legal obligations and rules which companies has to follow.
These rules and regulations may be vary from country to country because each country
have different pros and cons.
Environmental factor
Environment factors related to those factors from natural environment affects the business
of Reckitt, nowadays most nations of the world becomes sensitive about their environment.
How the company impact its context External Environment
External environmental elements, such as political considerations,
environmental issues, economic factors, corporate social obligations, and
others, are outside the control of an organisation (Li, Y. and Et.al., 2019).
In the case of Reckitt there are a number of ways in which it can have an
influence on the external environment, as noted below: -
Political
Environment
Economies
Corporate Social Responsibility
Internal Factors
STRENGTH
Reckitt has a strong product range, with several of its items being top sellers in their
respective categories. Harpic, Strepsils, Dettol, Lysol, Clearasil, Mortein, and
Vanish are just a few of them. These are all well-known brands that have provided the
corporation a significant amount of brand value. Reckitt has been working very hard
to outperform the industry average in all of its categories and to establish a leadership
position in high-growth portfolios by assuring steady cash flow across the board. This
is how they've been able to develop strong brands.
As Reckitt is a established British brand among most of the countries it makes their
footprints on worlds economy.
Strength of Reckitt is their innovation due to heavy investment in research and
development department.
WEAKNESS
Reckitt has been focused significantly on their 18 strong brands, which account for
more than 40% of their revenues, many of which were released within the previous
three years. This is having an adverse effect on the company's innovation culture,
which will work against it in contrast to more competitive competitors such as
Unilever.
One of the most worse weakness of Reckitt is that it operates in highly competitive
market.
The products of Reckitt is easily substitutable.
OPPORTUNITY
Reckitt Benckiser has been focusing more on emerging markets, such as the BRIC
countries and East Asian countries. The organisation has been gaining traction in these
sectors, and they have a bright future ahead of them, particularly in the field of home
care.
As the world is shift to health concerns, Reckitt has opportunity to provide healthy
products.
With their effective innovation, it can gain competitive advantage.
THREATS
Companies with a UK headquarters have encountered serious financial difficulties as a
result of Brexit, and the generally unpredictable prices of commodities have also
increased the costs of most items. These have turned into serious dangers to the firm.
Brexit became the greatest threat for Reckitt.
The entry of Asian conglomerate in international market provides adequate threat
Reckitt.
References
• Abrinková, L., Orosová, O. and Bacikova-Sleskova, M., FAMILY
ADVERSITY FACTORS AND EXTERNAL RESOURCES OF
RESILIENCE IN A ONE-YEAR FOLLOW-UP.
• Rosati, F. and Faria, L. G., 2019. Addressing the SDGs in
sustainability reports: The relationship with institutional
factors. Journal of cleaner production, 215, pp.1312-1326
CONCLUSION
It is concluded from this report that there are many factors which impacts
Reckitt in both negative and positive aspect ans also Reckitt impacts on
these factors. This report provides systematic report of these factors.