Report on Unilever's Business Environment: SWOT and PESTLE Analysis

This report provides a detailed analysis of Unilever's business environment, focusing on both internal and external factors. The report begins with an introduction to Unilever, a leading international company, and proceeds to analyze its strengths, weaknesses, opportunities, and threats (SWOT) as well as the political, economic, social, technological, legal, and environmental (PESTLE) factors impacting its operations. The SWOT analysis highlights Unilever's financial strength, brand portfolio, strategic investments, and integrated supply chain, while also acknowledging weaknesses such as declining segments and reliance on retailers. The PESTLE analysis examines the impact of government policies, economic fluctuations, market demands, technological advancements, legal regulations, and environmental concerns on Unilever's business. The report also includes references to relevant academic sources. This analysis offers valuable insights into Unilever's strategic positioning and its response to various environmental challenges and opportunities.

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Business environment can be defined as the examining
the internal and external factors of an organization
which directly or indirectly affects the working of the
company and so as its operations as well (Hamilton and
Webster, 2018). Organization chosen here is Unilever, it
is one of the leading international company based in UK
in 1929. It mainly deals with the products like foods and
refreshments, beauty and personal care and home care
products. The following discussions are made on
internal factors that is SWOT analysis, external factors
that is PESTLE analysis and company impacts on its
external environment in context of Unilever.
Internal factors: SWOT Analysis
It is defined as the determination of internal factors of
an organization which involves the firm's strengths,
weaknesses, opportunities and threats (Stoyanova and
Angelova, 2018).
Strengths: Powerful performance in financial status and
strategies. It contains powerful brands that are mostly
popular. It has the portfolio which is evolving and channels
which are developing. Investments are strategic to substantial
drive growth. It has supply chain which is integrated and
focus on research and development function.
Weaknesses: It is facing the declining in segments like
groceries. It is highly dependent on retailers and other
distributors
Opportunities: It has a good potential in emerging markets.
Demand is growing in premium and specialised skin care
products
Threats: High competition regionally and globally as well
facing low diversification. Retailers put private label brand on
their own brands due to low diversification in it's distribution
channels
How the company impact its context External
Environment
Company is facing threats in terms of political factors
due to trade restrictions
Company is facing threats in terms of economical
factors due to conflicts with distributors and
fluctuations in currency
Company has growth opportunities in it's social factors
due to increasing demand for the skin care products
Company has growth opportunities in it's technological
factors due to integrated supply chain and people data
centres
Company is facing threats in terms of legal factors due
to delays in decisions and change in laws and
regulations
Company has growth opportunities in it's
environmental factors due to contributing in climate
change Akpoviroro and Owotutu, 2018).
External factors
PESTLE Analysis: It is defined as the determination of
external factors of an organization which affects the
firm in its internal management (Shtal, Buriak,
Ukubassova and Tlegen, 2018).
Political factors: Government has imposed the strict trade
protectionist policies in a country
Economical factors: Facing the conflicts with
distributors due to rise in prices because of impact of
currency on Brexit. Dynamic fluctuations in the markets
especially in currency markets
Social factors: Growth in market and individual demand
for premium skin care products in an emerging markets
Technological factors: Supply chain is integrally
implemented with ultra-logistic. To understand the
consumer behaviour, people data centres are leveraged.
Legal factors: There is a delay in decision making and
business growth due to the delay in regulatory approvals.
Frequent change in tax laws and regulations.
Environment factors: Steps taken by an organization to
address the global climate change within the value chain.
Individual Poster
INTRODUCTION Internal and external factors
References:
Books and Journals
Akpoviroro, K.S. and Owotutu, S.O., 2018. Impact of external
business environment on organizational
Performance. IJARIIE. 4(3). pp.498-506.
Hamilton, L. and Webster, P., 2018. The international
business environment. Oxford University Press.