Unilever's Environment: Analyzing Internal, External Factors & Impact

This report examines the internal and external environmental factors affecting Unilever, a prominent brand in the UK retail industry and global business environment. Internally, Unilever's strengths include a strong global footprint, a diverse product range, and pricing flexibility, while weaknesses include easily imitable products and dependence on retailers. Externally, political stability is a positive influence, while corruption and military tensions pose challenges. Economic factors, such as varying economic systems, fluctuating exchange rates, and inflation, also impact Unilever's decision-making and profitability. The report concludes that changes in Unilever's decision-making processes and technological advancements can significantly impact its external environment, highlighting the interconnectedness of internal operations and external factors for business success. Desklib provides access to similar solved assignments for students.

Introduction
External environment and business organizations
have a strong association between them which has
a major impact on the overall operational decision-
making of the business. For the current poster
Unilever has been taken as the suitable organization
which is one of the most popular brands in the UK
retail industry and global business environment.
Unilever And Its Environment
External Environment
Political factors: Political stability in the business
environment in majority of the countries for Unilever has a
positive impact on the overall sustainability of the business
in the industry. Increasing corruption in the political
environment increases the cases of bribe and demands
from political leaders which acts as a negative factor in the
success of the business. Military tensions between nations
has a negative influence on the overall business
environment has a negative influence on the performance
of the business in the industry.
Economic factors: Different types of economic systems
which are adopted by nations has a negative influence on
the decision-making capabilities of Unilever in the industry
(Koshesh and Jafari, 2019). Regular fluctuations in the
exchange rates and monetary policies of the government
creates difficulties for the business to increase their
sustainability in the market. Inflation in the global business
environment has a significant influence on the overall
profitability of the company in the industry.
How the company impact its context External
Environment
Changes in Unilever's decision-making process may
create a major impact on the external environment
where the organization is operating. Developments by
the business in their business management with the
help of new and advanced technology has a positive
influence on the business.
Internal Factors
Strengths: A strong global footprint of Unilever in
the retail industry is a major strength for the
business which has a positive impact on its overall
development. Diverse range of products are offered
under Unilever which provides advantages for the
business to increase the interest of customers
towards their products and services (Casañ, Alier
and Llorens, 2021). Flexibility in the price of products
is another strength of Unilever where the
organization give sheer emphasis on making
effective changes in their price policies due to
customer needs.
Weaknesses: Common products and services are
offered by Unilever which are easily imitable by its
competitors making it a weakness for the business.
Dependence of the organization on its retailers is
another major weakness of the company which may
have a negative influence on the sustainability of this
business.
References
Casañ, M.J., Alier, M. and Llorens, A., 2021. A
collaborative learning activity to analyze the
sustainability of an innovation using
PESTLE. Sustainability, 13(16), p.8756.
Gheibi, M. and et.al., 2018. Controlling air pollution in
a city: A perspective from SOAR‐PESTLE
analysis. Integrated environmental assessment and
management, 14(4), pp.480-488.
Conclusion
From the above poster, it has been analysed that
there are several external and internal factors which
have a major impact on the overall success of the
business in the industry. Changes in the business
environment of the company lead towards changes in
the external environment of the company.