Business Environment Analysis: A Case Study of Unilever PLC

This report provides a comprehensive analysis of Unilever PLC's business environment, examining different types of organizations and their international business environments, with a detailed look at Unilever's size, vision, mission, and scope. It explores the inter-relationship of various business functions within Unilever using an organizational chart and analyzes their impact on the company. The report also includes a PESTLE analysis to assess the macro-environmental factors affecting Unilever, followed by a SWOT analysis to evaluate the company's internal strengths and weaknesses, as well as external opportunities and threats. The study concludes with a critical reflection on the key findings and their influence on the decision-making process within the organization, emphasizing the importance of understanding both internal and external factors for strategic business management. Desklib offers similar solved assignments and study tools to aid students in their academic pursuits.

UNIT 1 – BUSINESS AND
BUSINESS ENVIRONMENT

TABLE OF CONTENTS
INTRODUCTION................................................................................................................................3
MAIN BODY.......................................................................................................................................4
PART 1..................................................................................................................................................4
1.1 An overview of different types of organizations and their international business environment 4
1.2 Explanation of selected organizations' detailed information......................................................5
1.3 Examine different business functions and their inter-relationship of Unilever using an
organizational chart and analysis of their impact on the company...................................................6
PART – 2 .............................................................................................................................................7
2.1 To analysis macro environment factors by using PESTLE analysis that have impacts using the
company ..........................................................................................................................................7
2.2 SWOT analysis of the company...............................................................................................10
2.3 Critical reflection of key findings as well as how they influence the decision-making process
........................................................................................................................................................11
CONCLUSION..................................................................................................................................12
REFERENCES...................................................................................................................................13

INTRODUCTION
An organization is defined as an associated and combined entity where different people at
various levels of business structures work cohesively to achieve a similar purpose. Business
environment can be defined as the organizational setting in which varying money-generating and
economic activities are carried out for generating revenue and establishing brand image (Nudurupati
and et.al., 2021). There exists various types of business organizations where such mentioned
elements are embedded. The following report will state in its first part the precise explanation of
three distinct kinds of organizations including their sizes, visions, missions and scopes. It will
display the co-existent relationship among their corporate functions in the regard of a specific one
out of the three companies wit the help of an organizational chart (factsheet portfolio). The second
part of it will illustrate both positive and negative influences of macro-environmental aspects on the
selected business' operations. The below study will also carry out and explore the inner and outer
features of it with different applied models and critical reflection of the research findings.

MAIN BODY
PART 1
1.1 An overview of different types of organizations and their international business environment
Public limited company/organization (plc)
The public limited business is a large scale organization and its most common short form is
called Public Limited. The government has no ownership rights in it as well as all its shareholders
are constituted by the general public. A public limited organization has all the rights similar to that
of a private firm's and along with it people can share their stocks on an open exchange market
platform. This form of organizational type provides confined liabilities to its stakeholders and it has
a distinctive legislative identity. In the UK context one of the widely known public limited
corporation is the consumer goods company Unilever with a good LSE list ranking, a high status of
public investment, and stable organizational culture (Jose, 2021).
Private limited organization (pvt. Ltd.)
As opposed to and in contrast with its public company counterpart the private limited
organization is both owned and managed by one or more shareholding members or partners who
either are friends, family or acquaintances. Very less capital requirement is there and unlike public
firms shares are not sold on the stock market. In such type of organization, the accumulates shares
are sold directly to many interested individuals in conjunction with a limited liability scenario
where in case of any professional or business loss, the owners/members need not sell any of their
personal property as compensations. Such a corporate firm enjoys its profits and bears its losses in a
collective manner of ownership with a lot of beneficial profit margin scope and a widely popular
brand awareness. One prime example here is that of Virgin Atlantic business segment that falls
under a long list of firms owned by the privately owned Virgin Group conglomeration by Richard
Branson (Graham, 2020).
Non governmental organization (NGO)
The non governmental organizations fall under the category of non-profit firms that have an
organizational structure based on independent individuals' contributions. These can be in the form
of monetray or non-monetary donations by the NGO members. NGOs always hire and recruit those
people who are skilled, capable of campaigning for rights upholding, fund gathering, charitable
activities and other such tasks that are in the larger benefit of the repressed sections of society. A
leading example of this kind of organization is the Amnesty International UK firm which deals with

the human rights issues of downcasted people in over more than 100 countries (Lewis and et.al.,
2020). With the help of international laws and member nations the Amnesty group stands up for the
rights of the vulnerable population and also originates global petitions for them.
1.2 Explanation of selected organizations' detailed information
Unilever public limited organization –
The Unilever organization is a British multinational company which deals in consumer
goods and is headquartered and situated in UK. It has 12 stores all around the world. Unilever is
famous for being a country wide and globally largest soap brand including selling food and homely
products. In current scenario, the company has adopted a lot of other goods and services like
hardware, insurance, etc. This organization's vision is to create and leave a global impression where
customer-friendly goods flow easily. Its mission strategy can be seen in its statement ''to add
imporatnce to life, to meet daily needs of nutrition, health and care with brands that help people
feel and look good and get more out of life''. It holds 22.7% market growth share in UK and over
some years Unilever has introduced extensive country-centric programs with international business
strategies which have registered measurable reductions in economic growth mishaps (Zhongming
and et.al., 2021).
The public limited organization deals with product range of food, cleaning goods, home-use
materials, beauty use, etc. Its pricing strategy is based on cost leadership and differentiation focus
that eliminates the cost of production. It follows the legal structure of public limited company
(Unilever plc) where its key stakeholders are employees, consumers, management, shareholders,
suppliers, government and manufacturers.
Virgin Atlantic private limited organization –
The Virgin Group was founded by Richard and Nick and comprises till date numerous
business segments such as Virgin Holidays, Virgin Media, etc. Virgin Atlantic is one such private
limited organization established in 1930 in UK and is rated among the world’s leading Airways and
British airlines. The vision of this aviation company is of creating a world-class air transport
channel that sustainably caters to people's travelling needs. Its mission statement is ''to infuse both
business and pleasure'' which refers to the various reasons for which customers travel to and from.
Virgin Atlantic's business aims at empowering health-conscious, secured, and affordable travel era
with reduced carbon footprints and enhanced market growth.
Amnesty International UK
There are some non-governmental organizations that exist with the sole purpose of

coordinating its members to engage their collaborative services for the larger humane motive of
helping the afflicted and the UK based Amnesty International is one such NGO. It extends its
primary and prime services to the degraded and abused segment of global population who is in need
of the support form of justice and freedom. It is on of the world's largest leading human rights non-
monetary firm with the frontal reputation of being a global movement campaign consisting of more
than 10 million people (Chandler, 2020). With the use of non-violent methods Amnesty
International UK is tasked with the responsibility of fighting for injustice and physical and mental
abuse everywhere. Its mission is to provided an integrated and dedicated support to disability homes
and people in violence prone areas and to raise enough public appeal for the international
recognition of repression of freedom of expression and dignity. Its major objectives include people
protection, rights upholding, abolishing death penalty in excessive state systems.
1.3 Examine different business functions and their inter-relationship of Unilever using an
organizational chart and analysis of their impact on the company
There are different functions in a business firm that play interchangeable roles pertaining to
different disciplines for the efficiency of relevant business evironement (Faber and et.al., 2019).
Such departmental functions range from the HR segment to sales and finance or advertising section.
Organizations like Unilever comprise various intrinsic and extrinsic business elements that relate to
one another as is illustrated below –
Manufacturing
Function
Human resource
function
Research and
development
Finance
accounting
Sales & Revenue
function
1. Unilever
organizations'
manufacturing
model is adapted
from the lean
structural
production
procedure which
is used for
generating
differentiated
consumer goods.
1. The HR
departmental
function at
Unilever the
employees'
training and
teamwork. It also
recruits as per
segmented talents.
1. The R&D
team's function of
the consumer
goods company
comes under the
operations
department which
invests its
resources in IT
updation and
product planning.
1. The
accounting/financi
al function has the
role of the task of
maintaining
employees' salary
statements and
business records.
1. Unilever's sales
sector mainly
emphasizes on the
promotion of
marketing
dimensions in
conjunction with
gaining
competitive
advantage through
medium pricing.
2. For example, 2. Its human 2. It is very 2. This business 2. One other role

products like
vegan food,
organic beauty
items and home-
use materials are
produced and
compiled in
distinct lines for
storage purposes.
resource team also
functions at
various levels of
workplace
empowerment and
salary group tasks.
significant as it
continuously loks
for and explores
the applied format
of modern features
for the innovation
of goods.
function also
integrates its tasks
with other
departments for
workflow
collaboration such
as media
campaigns, HR
interaction, etc.
of its is to
strategize several
profitable prices
for customized
goods to increase
its revenue growth
by swift
marketing.
Advantages and disadvantages of interaction of business functions:
BENEFITS DRAWBACKS
1. The interchangeable links between the
multiple business functions of Unilever
eliminates inetr-sectional misunderstandings.
At times many of these inter relations overlap
and create confusion and miscommunication.
2. The organizational virtue of healthy building
of interpersonal relationships are formed where
clear communication persists.
Also when a lot of projects are handled at the
same time then the issue of lack of time
management arises.
3. Another benefit of Unilever's business
functions interaction is the skill enhancement of
creative solutions.
Instances of exhaustive workload combined with
incurred experiences of discord with senior
management creates a workplace vaccuum.
PART – 2
2.1 To analysis macro environment factors by using PESTLE analysis that have impacts using the
company
A PESTLE anaysis the key external factors that is Political, Economic, sociological,
technological, legal and the environmental, that generally influnce the organization. Pestle analysis
is the study of the external factor influencing the organization (Çitilci and Akbalık, 2020). The
pestle analysis of the business are as follows:

Political factors:
Unilever is the world largest super market store in the Uinted Kingdom, and business mainly
operates in UK, so it not affected by economic slowdown in other nations. However, UK has
existed from Europe, then it will have certain impact on business operations. Unilever performance
will be affected by the political factors. Here, the Government and the consumer debt are high in
the country, as well as in order to impact on position of the customers because of business
conditions is experienced on higher rates. So, the political factors affects the comapny performance
(Matovic, 2020). This section of the pestle analysis determine impact of the government on business
remote or the macro environment. Here are some political external factors in the unilever consumer
goods firm:
 Political stability of many countries is an opportunity for the company.
 Growing free trade relation is an another opportunity.
 Political issues in european union is threat for the organization.
Political stability of many countries are presesnt opportunity for the Unilever to grow in
such markets. So, if there is positive political stability then it will give position impact on the
company performance and growth. Whereas, if the countries is not having political stability then it
will give negative impact on the company growth. But the political issues in European Union are
threat for the Unilever operations in regions consumer market. So the company must address the
issue linked to political condition of that country.
Economic factors:
Generally unilever business performance is depends on situation of the economies around world. So
this factor influnce economic conditions on buisness as well as their macro environment. So the
following external factor are determinants of the company performance in consumer goods industry
are:
 Economic stability of the countries
 Increasing wages in the developing countries and,
 High growth of countries (developing)
The increasing wages in different developing countries are present opportunity for the
company to make more profits from high potential sales, thus consumers will gain higher
disposable income. But it can be threath if the cost increse then it can considering that the business
has many manufacturing facilities that is located in regions. The company can expect the growth,
thus these countries grow consumer market size as well as value. Example, China presents growth

opportunity for company. Here, this factor includes interest rates, inflation rates, saving rates,
foreign exchange rates, , aggregate demand as well as investments in country. With the efficient
market in the United Kingdom, the Unilever can have the easy access into the markets. The
company can spread out globally in the future. The exchange rate of the different country will
impact organization investments plans including the short term and long term plans. The inflation
rate in market in recession during the different years will lead in increases inflation rate in UK
economy which affect business too. The skill level of the employees in the market is good which
will lead to give positive impact on the organization business operations (Madsen and Grønseth,
2022).
Social factors:
The social treands and the problems affects the company performance as well as macro
environment. This factor includes the cultural expectations as well as norms, population, age,
health and safety needs or requirement of local public, etc. Such factors help the business to
understand about market conditions in internatinal markets as well as helps to develop the strategies
according to market conditions of global markets. The population of country by shift towards
healthy trends, foods as well as drinks so the various fast food items are not included in the product
list of the business. In modern days the people such as the places that can give them all the products
under the same roof. Rising environment behavious present opportunity for business to attrect more
customers by generally improving environmenttal impact as well. For example the company can
minimize their energy consumption by generally adopting new as well as more energy efficient
technologies.
Technological factors:
This factor mainly focus on development as well as adoption of the new technology that
helps the business in working innovatively. The comapny by launching the bsuiness E-commerce
store is helpful for business to focus on current technologically friendly generation and also, this
will help to attract customers towards the business. However, company have various aspects of
brand improvement for better customer experience as well as customer retention. If the company
brand start use of the modern data based system such as artificial intelligence, IOT block chain and
big data then they will able to understand better the demographical needs of customers. Theses also
help organization by increasing sales as well as better marketing strategies of the business (Coline,
2021). The technology that is generally based on innovation implementation by the competitors of
the business so, the company also have to focus on innovation to cover the whole market place.
Rising the automation is opportunity for the company to increase their operation effectivily. For
example, the new business processing equipment can also improve inventory monitoring for mainly

to support supply chain as well as distribution efficienies. But as same technological external
factors is threat because it will increase competitiveness of other business which includes firms in
local market.
Environmental factors:
These factor is influenced by surrounding as well as the environmental aspects through
providing both negative as well as positive impacts on the business operations. The company
generally focus on protecting the environment and also keeping the things healthy as well. The
organization has to respond in liable way to advantage the society. In the unilever environmental
factors there are many positive factor impact on business as organization may already take some
sustainable actions by following CSR concept.
Legal factors:
Unilever must satisfy the rules and regulation to the minimum barriers to customers goods
business. The company has opportunity to increase its corporate image through matching company
CSR strategy with environment regulation. For example, the new patent law in the countries help to
minimise patent related problems Unilever experiences in its macro environment.
2.2 SWOT analysis of the company
Mainly SWOT stands for the strengths, weaknesses, opportunities and the threath. Here, the
strengths and weaknesses are the internal factors of the company however, opportunities and threats
are the external factors for the business (Benzaghta and et.al., 2021). The following is the SWOT of
the unilever company:
Strengths of the company:
 Company has global footprint with the opertions in 190 plus countries.
 Company has deep as well as broad portfolio of the brands and good deversified product
range, that make its unique (Sohir, 2021).
 Unilever has competative advantages over its competitor, the main comperitor is proctor and
gamble because of its flexible prices as well as expertise in their distribution channels that
actually manage to reach nook as well as corner of globe.
 Company also offer sustainable products which is environment opportunities for the
company.
 R&d focus as well as integrated supply chain

 Strong brand image which will help company to attrect more customer.
Weaknesses of company:
 The weakness that unilever is facing is that it generally operates in uber competitive market
where other global giant such as nestle, p&g in addition to a local players challenges (Tien,
2019).
 The availability of substitutes as well as low switching costs
 All customers products are imitable like other bif businesses, unilever also has the same
problems in dealing with such issue (Teoli, Sanvictores, and An, 2019).
Opportunities of company:
 The emergence of health conscious buyers in developed world generally means that the
company can seize this opportunity to market this segment with existing as well as launched
new product range that is geared for health conscious customers.
 Unilever has good track record of environment and social responsibility and with emergence
of ethical customers who like to purchase and brand that are more responsibly mage and the
sustainable complete.
 Social medis to cover whole market easily
 potential in the emerging market
Threats for the company:
 Unilever operate in market segemnt where the local products as well as alternatives to
company brands proliferate especially in merkets. So it faces threat from the local or smaller
upstarts and players who can offer more value product with less money without additional
costs that the big companies like unilever incur.
 Competitors are increasing
 Growing popularity of the ayurveda products will also affect the sales of the company
 Divergent internatinal market environmental
2.3 Critical reflection of key findings as well as how they influence the decision-making process
From the above report it has been analysed that business environment including both, the
macro as well as micro environmental factors have a significant impact on structure of Unilever.
Here at the time of explanation information observed that, despite being the 5th largest multinational
organization in the world with a high portfolio of products as well as establishments across the

world, there are many opportunities still in front of the organization which is taken into
consideration, that is take business to new heights (Reza, 2020). From this I also got to know that
the exist various types of organization with clear production scales as well as functions in each of
the businesses. But from the above study is done comparison of Unilever with the other two
businesses made me understand that there is outstanding inter relationship with reciprocally related
functions that exist among these organizations. For example the above report clearly reach a line
amongst the differentiators of the organizations types like the legal structure, size, scope and
stakeholders. Moreover, I also came to understand that strategic planning of the organization gets
straight as well as enormously influenced by the external environmental factors such as economic
trends, partnerships and demographic trends.
These factors also impact the company's management techniques that is also again
determiner the decision-making process related to the potential as well as existing customers. Here I
also determined that the Unilever's goods making was also affecting environment as it was causing
such as deforestation, packagings wastage, food wastage, etc. So, the organization is planning to
become environment oriented as well as is thinking to inform itself as the zero carbon generating
organization by the 2050. Moreover, I learnt that there is an high competition in market place in
which unilever operates, among the organization related to general customer, distribution channels
and supplier networks which is leading to declination of company's sales as well as its brand image
(Lieu, and et.al., 2020). Even the company has effective communication which is very helpful in
desion making process. By this the company performance as well as profits of the company also
increase in future.
CONCLUSION
From the above report it has concluded that the business environment generally means the
aggregate of all factors, forces as well as institutions, which are beyond to and external to control of
business organization but which exercise influence on functioning as well as growth og business.
The above report give overview of the various types of the organization as well as growth of
international business environment. Along with this the above report also explain each type of the
organization with background details, products and services they generally supply. With this the
report also discuss the size as well as scope of each organization with their mission, objective, legal
structure and vision. Furthermore, the report also examine different function of Unilever. Moreover,
the report also discuss macro environment factors that impact on company by using PESTLE