Unilever Case Study: Global Business Environment HND

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Title Unit 18:Global Business Environment(GBE)
Assignment Title Unilever
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Table of Contents
Task 1.........................................................................................................................................3
1.0 Introduction to the concept of globalization....................................................................3
1.1 An analysis of the key drivers of globalization................................................................3
2.0 An explanation on the complexity of strategic challenges faced by global businesses...5
2.1 A critical analysis on the strategic challenges caused by globalization on risk,
diversification strategies and supply chain............................................................................6
2.2 A critical evaluation of the global business environment................................................7
Task 2.........................................................................................................................................8
3.0 (a) An evaluation of the influences of globalisation on organisational governance and
leadership...............................................................................................................................8
3.1a) An evaluation of the influences of ethics on organisational functions.........................9
3. 2 (a) Application of McKinSey 7S Model on organisational structure in case the of
Unilever Plc..........................................................................................................................10
4.0 (a) An evaluation of different ways decision making can work effectively in a global
context..................................................................................................................................12
References................................................................................................................................14

Task 1
1.0 Introduction to the concept of globalization.
Globalisation refers to the process where the different organisations, peoples as well as the
government integrate and interact with each other at a global level. Globalisation is a
multifaceted and complex phenomenon, which considers the expansion and exploration of the
national or local organisations/economies into worldwide (Steger, 2017). Globalisation is a
process which involves the expansion and liberalisation of the international markets for
different economic activates and the free flow of the economic resources, goods, data,
technology, capital, people and services. Globalisation removes the trade barriers between
different countries and makes the international market feasible (Pdfs.semanticscholar.org.
2019). The improvements of the conditions of the countries are one of the major impacts of
the globalisation to generate economic independence and diversifying the cultural activities
worldwide (Pdfs.semanticscholar.org. 2019).
1.1 An analysis of the key drivers of globalization
There are major five key drivers of globalisation are been stated below:
Economic forces: Economic forces have reduced the economical barriers for the free flow of
trade of goods, resources, services peoples, technologies and many more things that drives
the globalisation in the international markets.
Political Forces: Political forces refer to the worldwide growth of the political system
growing its size and complexity that pushes the globalisation further.
Socio-cultural Forces: The socio cultural is one of the key drives of the organisation because
it helps in the exchange of meanings, ideas and values globally in a process to expand
intensify and extend the social relations and leads to diversifying the cultures internationally.
Biological Forces: Biological forces that drives the globalisation helps in the environmental
and the natural contributions that comes from the water and the foods internationally.
Technological Forces: The technological forces have made access to the faster internets and
the cheaper technologies worldwide. It has reduces the national and the economical barriers
of the space, areas, time and have integrated the local or the national markets with the
international markets. It has leaded to a digitalised global economy.

Figure 1: five key drivers of globalisation
(Source: Steger, 2017)
Some of the benefits and the challenges of these key drivers are stated below:
Key Drivers Benefits Challenges
Economic The economic forces have
lead to the growth of the
economy and reduced
poverty by accelerating
globalisation.
However, it has also
increased the economic
inequality throughout the
period of globalisation
because of the inequality of
the income between peoples
of the economy (Milanovic,
2016).
Political Increase in the political
globalisation has helped in
the emergence of the
numerous watchdogs that
keeps eye on the work of the
political organisations and
increased the awareness
among the people (Baylis et
Increase in the political
actions has also made the
political forces complex and
it also leads to declining the
nation state.

al., 2017).
Socio Cultural The diversification in the
socio cultural factors enables
the peoples all around the
world to extend and explore
their relations across their
regional and national borders
(Pieterse, 2019).
However, this has also
increased conflicts between
different religions and
nations.
Biological The biological forces have
benefitted in spreading the
plants from their
domesticated areas to the
other environments that are
favourable for the plant
worldwide.
The internal biological forces
such as the exchange of
cancerous cells interrupt and
inhibit the development of
the various economies and it
have become one of the
major challenges all around
the world.
Technological Technological advancement
has facilitated
interconnecting different
kinds of peoples irrespective
of their geographical barriers.
However, it had also leaded
to increase in severe crimes
worldwide.
Table 1: benefits and the challenges of key drivers of Globalisation
(Source: Created by the learner)
2.0 An explanation on the complexity of strategic challenges faced by global
businesses
Several issues become the challenges while doing a global business. Those challenges are
been stated below:
Difficulties analysing reporting and Performance: whenever the company expands across
its geographies and the line of products the company faces challenges regarding keeping an
eye upon the constant performance and the management faces a high risk to make wrong
decisions (Hirst et al., 2015).

For Example: Unilever Plc is an organisation that operates globally and has international
supply chains. There are some of the adverse events faced by the company that the network
of the supply chain gets expose to the environments, industrial and physical disruptions,
bankruptcy or the accidents of the key suppliers that impact upon the ability of the company
to deliver its services as well as the goods to the customers.
Ensuring Local Compliance: One of the major challenges that the international companies
faces is maintaining and controlling the financials of the company and navigating local as
well as the regional laws, principles and regulations. It is very necessary for the company to
make such policies to create awareness of the brand in the foreign market and also attracting
the customers through different methods (Eriksen, 2018).
For Example: As per the recent reports, the Unilever Plc aims towards halving the
greenhouse gases through an ambitious plan of sustainably living. However Unilever Plc
struggled while selling sustainable living products to the customers. The company also
influenced the customers to reduce the greenhouse effects. However, the company Unilever
Plc was greatly applauded by the green groups for taking the responsibility to battle and to
reduce the carbon emissions.
2.1 A critical analysis on the strategic challenges caused by globalization on
risk, diversification strategies and supply chain
There are several challenges that are been faced by the business risk, diversification strategies
and the supply chains that are been stated below:
Business Risk: There are several business risk that is been faced by the companies caused by
the globalisation such as the physical distance, unfamiliar cultures, mastering the markets,
communication of the organisation, choosing right countries, human resources and other
factors which create issues to operate and function the business smoothly.
Diversification Strategies: The diversification strategies create pressure upon the
organisation for its future success. Several factors are there that creates issues such as the
market needs and expectations, technological changes, product changes, societal and
financial risks and many more factors.
Supply chain: The risk that supply chain holds in globalisation are the changes of political
and government, instability of the economic, risks of environment, cyber attacks and many

more that creates difficulties for an organisation for the smooth processing of its supply
chains (Forbes.com. 2019).
2.2 A critical evaluation of the global business environment
There are several factors that a business faces helps in the formation of the business
environment. The evaluation of the business environment is been stated below:
Advantages: The business environments are formed by the factors that help the organisation
to streghten themselves and provide a competitive edge over its rivals. Globalisation provides
advantages to the organisation to increase their benchmark of competition to run in the
international market.
Disadvantages: The globalisation inculcates such factors that becomes the weakness of the
organisation and is been used as the harmful weapon by the competitors. To be in the long-
run organisation should keep them updated with the knowledge, skills, information,
technologies and innovation so that they can gain the competitive advantage otherwise there
is high competition in the in international market that can leave the organisation behind if the
organisation fails to compete with them.
Opportunities: Globalisation brings various opportunities for the business environment by
making favourable situations to bring the competitive advantage within the organisation.
Challenges: Globalisation also brings unfavourable situations, which affects the business
negatively.

Task 2
3.0 (a) An evaluation of the influences of globalisation on organisational
governance and leadership
Globalisation helps an organisation to inculcate necessary skills and practices among the
leaders as well as the management of the organisation to lead the firm globally. It helps in
resolving issues of the organisation that is been created by the globalisations. The global
leaders require the proper leadership knowledge, practices and the skills in order to manage
the organisations and to lead the globalised environment effectively. The transformational
leaderships has the ability to reach the cross cultures and to enhance the performance of the
organisation. Globalisation also drives the changes in the global environment.
b) An evaluation of the influences of globalisation on organisational
structure
Globalisation helps in determining the structure of the organisation to outline the certain
activities in order to direct the performance of the business to achieve the organisational goals
effectively and efficiently. Globalisation influences the structures of the organisation to
determine the process, methods and practices to flow the data and information between the
different levels of the company. It also helps in defining the appropriate roles, rules and
responsibilities to the employees of an organisation so to make the organisation efficient and
to create a competitive edge over its rivals.
c) An evaluation of the influences of globalisation on organisational culture
In today world organisations exists in a complex environment that are been directly
influenced or affected by the globalisation. The organisational cultures are different from the
national or the regional cultures and it is been adopted by the culture of the physical location
where the company currently operates. Stakeholders of an organisation hugely influence the
culture of the company. The organisations operate in the variable and diversified environment
that leads to the social and cultural exchanges and the ethical behaviour, morals and values
are inculcated between organisations. Diversifying the organisational culture is one of the
major impacts of the organisation in exchanging cultural values and reforms.

d) An evaluation of the influences of globalisation on organisational
functions
Globalisation increases the level of competition into the business organisations. It brings the
dynamic changes in the economic, social, political, cultural and environmental factors. The
competitions are related with the price or the costs, quick response, technological updating
and adaption, innovations, target markets, quick production and many more reasons.
Whenever an organisation manufactures the products with less cost and sells it to the
consumer markets at cheaper rates it enables itself to increase its market share.
3.1a) An evaluation of the influences of ethics on organisational functions
The global business ethics refers to the ethics of an organisation on which the business
responds to the eternal and the internal stimulus. Global business ethics are the rules,
principles, regulations and values that are been used by the organisation and its employees in
order to govern the actions and to lead an effective decision to achieve the organisational
goals efficiently and effectively. The ethical philosophy helps an organisation to increase its
productivity, profitability, and bottom line, economies of scale in the consumer market or the
international market. It also increases the level of reputation of the company among the
consumers of the international market, which highly benefits the organisation. It also helps
the organisation to reduce its turnover of the employees, training time of the new recruited
employees and increases the output of the services (Crane, and Matten, 2016).
b) An evaluation of the influences of global sustainability on organisational
function
The global sustainability helps the business to sustain in the long run in international markets.
It develops the organisation in such ways that the organisation lasts. Global Sustainability
helps the organisation to makes the best possible use of the available markets and helps the
organisation to strengthens its effective decision making process. The global sustainability
shows ways to harness the latest ands updates technologies to be bought into the organisation
in order to make the organisation more efficient. Global sustainability manages the links
between the organisation in order to improve the quality of the services and relations with the
suppliers, fulfilling the requirement of the organisation, sustaining the business with
diversifying activities and making the best possible use of the resources to increase the
productivity and profitability of the global organisation (Beck, 2018).

3. 2 (a) Application of McKinSey 7S Model on organisational structure in
case the of Unilever Plc
The McKinSey 7s Model in reference with the Unilever Plc is been stated below:
Figure 2: McKinSey 7s Model
(Source: Ravanfar, 2015)
Strategy: In Unilever Plc, the strategies should be planned in such a way that it develops the
organisation in order to achieve the competitive advantage over its rivals. They should look
forward to strengthen the strategy for the sustainable living (are, W. 2019).
Structure: The Unilever Plc should use centralised structure so that every employee will be
accountable for his or her work.
System: The Unilever Plc should look forward in order to focus upon the decisions made into
the business. This will help the company to facilitate their process and procedures.
Skills: The firm should look upon the abilities of the employees and their skills. It will
influence the inculcating the skills of the Unilever Plc.

Styles: The Unilever Plc should look forward to structure the top-level managers in order to
increase the alignment of the company.
Staff: Staffs of the Unilever refers to the amount of employees that are been needed for the
company. The company should look after the job requirements and should keep control on
the recruitment of the jobs.
Shared Values: The Unilever Plc should look after the shared values in order to guide the
behaviour of the employees (Unilever.com. 2019).
b) Application of Hofstede's Cultural Dimensions theory in the case of
Unilever Plc
The Hofstede’s Cultural Dimensions in reference with the Unilever Plc is been stated
below:
Power distance Index: With the application of power distance index in Unilever Plc the team
members are been guided to take actions according to the management and the if the
management do not takes responsibility for that then the team members can do it by
themselves.
Individualism versus Collectivism: It states the strengthening of the relation of the people in
Teh Company and with their community. With the application of individualism versus
collectivism, Unilever plc can strengthen their relationship of the employees.
Masculinity versus Femininity: It states the difference between the roles of the men and the
women in the society. With the application of Masculinity versus femininity the Unilever Plc
can state role of the employees (male or female) working in the company.
Uncertainty avoidance Index: With the application of the Uncertainty Avoidance Index the
Unilever Plc can generate different discussions to recognise the cultural tendency they are
working upon.
Long versus short-term orientation: With the application of this cultural dimension the
Unilever Plc can get the reflection of the country’s strong nationalism and the social
standards they are working upon.
Indulgence versus Restraint: With this application, Unilever Plc put the emphasis upon the
time and the suggested title to restrain the company according to the country they are
operating (Pondiuni.edu.in. 2019).

Figure 3: Hofstede's Cultural Dimensions model
(Source: Khlif, 2016)
4.0 (a) An evaluation of different ways decision making can work
effectively in a global context
There are different ways for effective decision making such as commanding, consulting,
voting, consensus that leads to the effective decisions of the organisations. Effective
decisions are made when both the listener and the speaker concentrates on the matter are puts
an conflict free opinion in order to make the process efficient and the organisation can gain a
competitive advantage over its rivals in international market.
b) Ways (strategies) to enter global markets
There are several ways of entering into the global markets such as Franchising the brand,
Direct exporting, joint ventures, partnerships, buying an international company, Selling
products to other domestic country, Finding projects in the foreign countries, licensing and
many more.
(c) A critical evaluation of the key barriers to globalization and
recommendations to overcome them.