A Comprehensive Analysis of Unilever and Its Business Environment

This essay provides a comprehensive analysis of Unilever's business environment, focusing on both internal and external factors that influence its operations and profitability. Internal factors such as organizational structure and culture are examined, highlighting their direct impact on the company's efficiency and employee motivation. The analysis extends to external environmental factors, including political, economic, and technological influences. The essay emphasizes the importance of environmental scanning for Unilever to adapt to political instability, economic fluctuations, and technological advancements, which are crucial for maintaining a competitive advantage in the global marketplace. The study concludes by recommending that Unilever focus on maintaining a stable political and economic environment, promoting a healthy and diverse workplace culture, and continuously updating its technology to enhance performance and ensure sustainable growth.

Introduction
The term business environment is defined as the sum
collection of the individual, business entities all the
internal and external forces present in the business
environment which has direct influence on the
profitability and operations of the business organisation.
All these factors may or may not be in under the control of
the business organisation, so in order to enhance their
perfo9rmance and gain competitive advantage in the
marketplace, it becomes essential for the business
organisation to regularly scan and evaluate their business
environment
Unilever And Its Environment
External Environment
Political factor: Any kind of political instability will create
unfavourable environment for the business, any change in the
political rules and regulation will influence the favourable
environment of the business. In case of Unilever, company operates
globally, any change in the political factor will influence the
functioning of the business.
Economic factors: The economic factors are the any change in the
inflation rate, interest rate and consumer spending which directly
influence the profitability of the business. Company working in the
developed economy will move towards continuous growth and
success and vice versa. The chosen company needs to ensure that
they are working the well developed economy.
Technology factors: The another factor is the technology factors, it
includes any kind of changes or any advancement in the technology
will directly influence the functioning of the business. In context to
the chosen company adopting to new and advance technology will
help company to gain competitive advantage in the marketplace and
also enhance their profitability, so this factors needs to be analysed
effectively and efficiently.
How the company impact its
context External Environment
• In order to grow and develop in the competitive
environment the chosen company needs to regularly
scan the business environment and should ensure that
they are working in the political stable and under
developed economy effectively.
• The healthy and safe working environment should be
promoted at the work place also the in order to grow
the diverse culture should be promoted by the chosen
company, this will helps them to deal with any kind
of cultural changes in the organisation.
• The chosen company should update their technology
as per the requirement, as it will help them to
enhance their performance in the marketplace and
gain competitive advantage effectively.
Internal Factors
Organisational structure: The most essential factor that
directly influence the functioning of the business is the
organisational structure, having direct and systematic
structure allows the business organisation allows the
business organisation to work effectively and have clarity
of roles and responsibility. In context to the Unilever, the
having improper structure will directly influenced the
functioning of the business.
Organisational culture: The culture of the organisation is
the driving force behind the success and growth of the
business, the healthy and smooth working culture helps in
motivating employees towards achieving desired goals
and objectives. In context to the Unilever, company needs
to promote the diverse culture and should ensure healthy
culture in the organisation
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