Analysis of Unilever's Business Environment: Internal and External

This report provides a comprehensive analysis of Unilever's business environment, examining both internal and external factors that influence its operations. The report begins by defining the business environment and its two key components: internal and external factors. It then delves into a SWOT analysis of Unilever, highlighting its strengths, weaknesses, opportunities, and threats. The report also utilizes a PESTLE analysis to assess the external environment, considering political, economic, social, technological, legal, and environmental factors. Furthermore, the report explores the impacts of external factors such as Brexit and the COVID-19 pandemic on Unilever's supply chain, manufacturing, and profitability. The conclusion emphasizes the importance of understanding both internal and external environments for effective decision-making and the overall success of the company. References to academic sources are included to support the analysis.

Introduction
Business environment refers to the environment which
affects the operation of a business organisation. There are
two types of environment which are considered in
business environment that are internal as well as external
environment. Internal environment is the environment
which can be controlled by an organisation whereas
external environment is an environment which cannot be e
controlled by an organisation. Unilever is a multinational
company which teams in consumer goods and have its
headquarter in London, England. This poster contains
internal as well as external factors which effects the
business operations of Unilever. It also contains various
impacts of external factors on the business of Unilever.
Unilever And Its Environment
Name of the Student
External Environment
External environment is the environment of a business which are
affected by external factors. External factors are those factors which
cannot be controlled by any business and it is beneficial for every
business to make their decision according to these factors. There
are various external environment factors which are essential to be
accessed by Unilever in order to successfully run their business.
Pestle analysis is a great tool to ascertain those external
environments which affects the business of Unilever. Pestle analysis
of Unilever is given below
Weakness: The weakness of the Unilever company is that its
product can be easily replaced with any substitute in the market for
example Africa and Asia as well as in rural market which can easily
be used by traditional and naturally alternative of the product in the
Unilever market
Opportunity: The opportunity which is available for Unilever
company is to expand its operation beyond consumer goods. The
organization can promote in the Western lifestyle in Asia and Africa
that gives them advantage to be the successful brand which will
further help local to join the best westerner. On the other hand, it
provided the golden chance to company to take leverage of this
consumer base and try the consumerism in the west. Now in the year
2020, it is currently working for microbes laboratories portend to
create mouth washes.
Threat: Threat indicates to the harm of an organisation just like a
germs harm the crops in the field so organisation can be harm by the
other organisation in the business field. In case of Unilever, the
company also have various threats which can affect the operations of
business. The biggest threat for the company is that they have so
much competitors in the market which can affect the sales of the
organisation.
Internal Factors
Internal factors are those factors which can be controlled
by an organisation in order to grow their business. To
assess the internal factors which affect the growth of a
company SWOT analysis can be used. In order to assess
the internal factors of Unilever SWOT analysis of
Unilever has been given below:
Strengths : Unilever operate at Deep and broad portfolio
of brand in nearly 190 countries all over the world.
Unilever has a distinct competitive advantage over its
nearest competitors because of its best channel up and
down pricing and distribution channel to reach the corner
of the globe. The biggest strength is to grow its leveraging
economic upscale arising from its synergies between many
manufacturing facilities which are in total 270 locations all
over the world. It helps the company to win the hearts and
mind of consumer who would like to use its product.
Political factor: There are various political factors which
affects the performance as well as business of Unilever.
Political factors are those factors which put an impact
of government decision on any business. As Unilever is
a large organisation it operates in so many countries
and political stability of most of the countries is an
opportunity for Unilever to grow their business in more
countries. It has been observed that there are several
political issues in European Union which is a threat for
the company because the company has its main market
in Europe.
With the increasing political stability there is growth in
free trade relations between various countries which is
an opportunity for Unilever to expand their business.
So political factors are the factors which affects the
business either in positive form or in negative manner.
Economic factors: Economic main performance can be
done around the world So the you never is also perform
on inflexion rate saving rate interest rate foreign
exchange rate and economic cycle investment
economic cooperation can be rate the unemployment
dictionary income education level workforce in the
personal product or in the interest rate it can show all
the competition is ready for fight in the US market.
Social Factors: Social can be increase all time in the
nation Unilever are likely to change the structure in the
business according to the upcoming demand by the
government proportion like Man Woman and Child by
the best and high result Unilever offer product to
increase in the demand regarding on the goods impact
on Unilever product portfolio Unilever also sale on net
margin brand as well as in free fall according to the
facts.

Technological Factors: Unilever purchasing the decision
for give the review on pass purchasing mostly growing
company can be promoted by the social networking
website such as Facebook Twitter Instagram and much
more etc the price and Promotion information can be give
to the shopper to accept online Store quickly for selling
the product easily in the digital world Unilever can easily
were marketing activity by the online consumer.
Legal: Unilever can be also called National Law that mean
the company present with 190 world by countries under
provision equality act 2010 the UK company not allowed
xender age religion training etc Unilever cannot attire the
employee when they reach the age of 65 but also they help
them by providing some pension according to their work
Unilever And Its Environment
Name of the Student
Impact of External Environment on Unilever
There are several external environment factors which
affects the operation of Unilever. Brexit is one of those
external factors which affects the business and
profitability of Unilever. It affects the supply chain of
Unilever which increase the cost of products of the
company which immediately impact on the profitability
from products. As a result you never respond to increase
prices of their products in the short term. It also affects
the manufacturing of products and services as the
company face pressure of localising the manufacturing of
their products. The main impact of Brexit is found to be
on the Sourcing as well as manufacturing operations of
the business which are essential part of determining the
cost of products in a business..
Brexit is considered as external source because it is not under the
control of any business and it puts its impact on each and every
business . Apart from this the spread of covid-19 is also part of
external environment which effect many businesses very badly. The
lockdown and restrictions in travelling due to this covid-19
pandemic affects the Sourcing manufacturing and supply chain of
Unilever which impacted their profitability in a very negative
manner. It is also factor which cannot be controlled by Unilever but
they can accept it and take their decisions according to this. In
order to deal with this situation Unilever can decide the level of
supply they can made to the countries according to the demand of
those countries in advance which will help them to two more
supply of their products at the time of pandemic. They can also
outsource various raw materials at their manufacturing unit as in
this time there are high chances of inflation in raw material which
will affect the cost of product and further will increase the price of
their products. It is essential for each and every business to forecast
their external environment and take decision in accordance to that.
It will help them to have better decision making in the organisation
which will reflect in their success.
References
Abd-Elkareem, E., 2020. The Negative Role of some
Internal and External Factors (Pores, Heat, Pressure, and
Internal Grains) in the Deterioration of Sandstone
Building: An Applied Study on the Lower Walls of the
Luxor Temple. -نوبعة جامار بقنا جثلة کلية اآلمج
يوادال,15)1( , pp.1-32.
Amir, I.T., Soedarto, T. and Hadianti, I., 2020, October.
INTERNAL AND EXTERNAL FACTORS OF
VETERINARY CONTROL NUMBER (VCN)
CERTIFIED LIVESTOCKIN THE DISTRICT
MOJOKERTO. In International Conference on
Agriculture (Vol. 1, No. 01, pp. 222-225).
Carrillo, M.E., 2020. The Curriculum Development
Process for Teachers of Diverse Learners: Influences of
Internal and External Factors (Doctoral dissertation, New
Mexico State University).
Siswiandini, T., 2020. THE EFFECT OF INTERNAL
AND EXTERNAL FACTORS ON
ENTREPRENEURIAL INTEREST MEDIATED BY
ENTREPRENEURSHIP EDUCATION ON STUDENTS
OF AN NAJIYAH VOCATIONAL SCHOOL
TANGGERANG OF 2019/2020 ACADEMIC
YEAR. Dinasti International Journal of Digital Business
Management, 1(5), pp.680-693.
Subagyo, E., Saepudin, D. and Mulyani, S.R., 2020. THE
INFLUENCE OF INTERNAL AND EXTERNAL
FACTORS ON THE STOCK PRICE OF THE BANKING
SECTOR. In Prosiding SoBAT (Seminar Sosial Politik,
Bisnis, Akuntansi dan Teknik) Universitas Sangga Buana
YPKP (pp. 169-178). LPPM Universitas Sangga Buana
YPKP.
CONCLUSION
From the above discussion it has been concluded that internal as
well as external sources of environment are very essential to be
ascertained by any organisation in order to take effective decisions
in the organisation. Both internal and external environment factors
affect the decision making of a business. In order to run business
successfully Unilever should also ascertain they should also
ascertain the impact of internal as well as external factors on their
business and make their decisions according to that only.