Unilever: Organisational Environment and Strategic Analysis Report

This report provides a comprehensive analysis of Unilever's organisational environment. It begins by defining the nature and purpose of the company, comparing it with a competitor, JCB. The report then delves into the impact of micro and macro environmental forces on Unilever, utilizing SWOT and PESTLE analyses to assess strengths, weaknesses, opportunities, and threats, as well as political, economic, sociocultural, technological, environmental, and legal factors. Furthermore, the report examines the organisational theories implemented by Unilever, including contingency theory, division of labor, and administrative theory, highlighting how these theories contribute to the company's operational effectiveness and achievement of its objectives. The analysis underscores the importance of understanding and adapting to the dynamic forces within the organisational environment for sustained business success.

Organisational
Environment

Table of Contents
Introduction......................................................................................................................................1
TASK 1............................................................................................................................................1
Defined the nature and purpose of company..........................................................................1
TASK 4............................................................................................................................................2
Impact of micro and macro environment forces on Unilever and its ability for achievement of
corporate objectives................................................................................................................2
TASK 5............................................................................................................................................5
Organisational theories implemented by Unilever in running its business............................5
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

Introduction
Organisational environment can be defined as the combination of various forces which
impact on performance, resources and operations of a company. Therefore, to manage business
of a company it is essential for managers to grab a proper knowledge about organisational
environment and factors which affect the same (Marnewick, Erasmus and Joseph, 2016). It
mainly includes terrific technologies, intense competition, organisational culture, economic
crises and more. The present case study is done on Unilever which entails its purpose and nature,
by making a comparison with another industry. It is a consumer based company whose products
are categorised into four main divisions as Refreshment, Food & Beverages, Beauty & Personal
Care and Home Care. Here, impact on internal and external factor on respective company also
analysis by using SWOT and PESTLE techniques. Furthermore, organisational theories which
Unilever has practices in running its business also highlighted.
TASK 1
Defined the nature and purpose of company
Nature of Unilever:
A British Dutch company engage in consumer goods industry. It is mainly a transnational
consumer goods organisation while having headquarter in Unilever House, London, UK.
Company offer their services worldwide and offer beauty & personal care products, cleaning
products and food & refreshments (Stanton and Baber, 2017). Company was founded in the year
1929 and listed on London stock exchange.
Purpose of Unilever:
Unilever holds a formative process which is related to offer a commitment towards making
improvements in a continuous manner within their management as have long term goals to
develop business in a sustainable manner (Haddad and et. al., 2017). Corporate purpose of
company says “ the highest standards in context of corporate behaviour in respect of each and
every individual company perform their work along with environment on which company have
an impact”. In addition with this, one of the basic purposes of Unilever is always perform their
work with integrity while conducting organisations operations in an integrated manner with
respect of environments, people and organisation.
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In addition with this, company effectively perform their roles and responsibilities with an
aim to create a positive impact in various ways that include, build well effective positive via
company commercial operations and relationship, brand, voluntary contributions and different
types of other measures within which company offer their services (Moumen and El Aoufir,
2017). Corporate purpose of company is towards setting their formative aspirations into running
process in their business that outline their code of business principles in a well defined manner.
Company also have formative sense of purpose with their supplier as Unilever work effective
with company suppliers those who hold same value as company along with its standards.
Comparison on the basis of industrial analysis
Unilever JCB
Unilever offer their services in consumer goods
sector while having their main products that
include, personal care products, water purifiers,
cleaning agents and food (Seidl, 2016).
JCB a multinational corporation dealing in the
sector of heavy equipments with having
products such as, demolition machinery, waste
handling, construction and agriculture.
Company promote their services via social
media websites along with various other
technological fields.
JBC does not make promotion of their products
and services.
Unilever offer their services worldwide with
having more than 155,000 employees by the
year 2019.
JCB offer their products mainly in 150
countries while having 22 factories. In addition
with this estimated number of 11,000
employees are employed within company work
structure.
TASK 4
Impact of micro and macro environment forces on Unilever and its ability for achievement of
corporate objectives
Unilever deals in retail based industry and consider as one of the largest consumer goods
businesses which sells more than 400 market leading brands. Its corporate objective defines as
“To increase the size of business with increasing its positive social impact and reducing the
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environmental footprint as well, within two years” (Kunasegaran and et. al., 2016). But there are
various factors present in organisational environment that affects its operation and performance
adversely for achievement of such objectives. For this purpose, SWOT and PESTLE analysis
models are considered as effective tools for its managers to understand the impact of internal and
external environment in its corporate objectives. This would help in developing effective
strategies to overcome from potential threats as well as exploit the biggest opportunities, for
achievement of mention goal.
SWOT Analysis
Strengths:
It includes factors that highlights the major strengths and capabilities of Unilever in
attainment of corporate objectives. Having more than 155,000 employees, usage of latest
technologies to run consumer based business, hierarchical organizational structure and more,
shows capabilities in attainment of corporate objectives (Ceric, 2016). Along with this, the other
factors like strong brands, economics of sale, strong global market presence and more, also
shows major strengths of business.
Weaknesses:
Limited business diversification, dependence on retailers for offering branded products,
imitable nature of business and more, are some factors that affect business performance of
Unilever. Therefore, to overcome from such weaknesses, respective company needs to exploit
the opportunities present at business environment as well.
Opportunities:
Developing innovation in product, creating diversification, addressing the need of health
concisions people etc. give advantage to Unilever in increasing its strengths (Crowther, 2018).
This would give advantage to achieve mention objectives and company’s mission in given
duration.
Threats:
Increase in competition, demand of reducing environmental footprint, political instability
and more, are some of the factors that impose threats for Unilever in its business expansion.
Therefore, this company must focus on increasing its competitive advantage for achievement of
business objectives and reducing the threats as well.
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PESTLE Analysis
Political factors that affect significant growth of Unilever:
Political landscape includes a number of factors like stability of government, increasing
free-trade relations, political issues between two countries and more. Here, first two factors give
opportunity to Unilever in its business expansion and increase growth through which it has
offered the products in more than 190 countries and gain high profitability. While political issues
like BREXIT has affected its business market at EU and affects its operational activities. Thus,
stability and free trading give benefits to respective company in increasing the size of business.
Economic factors prove beneficial in growth of Unilever business:
Performance of Unilever company highly depends on economic condition of those
marketplace where it currently operates the business (Crowther, 2018). It includes increase in
wages which create both threats (in terms of increasing cost) and opportunity (economic stability
and high growth) for Unilever to earn high profit from potential sales. These factors give
advantage to Unilever in attaining its corporate objectives within set period of time.
Sociocultural factors that influence business environment of Unilever:
With rise in health consciousness, Unilever gain opportunity to help people in improving
their health as well as well-being by offering a range of organic products (Ceric, 2016).
Currently, Unilever also focuses on minimize the energy consumption in business via
implementing advance energy-efficient technologies. Along with this, this company also seek to
grow its higher sales by improving income level of female consumers worldwide.
Influence of technological factor on corporate objectives and business performance of Unilever:
In order to support the consumer based business, operations of Unilever are highly
depended on latest technologies (Kunasegaran and et. al., 2016). Here, increase in business
automation, decreasing cost of production and more, give opportunity to respective company to
double the size of its business. However, rising R&D investment may threaten Unilever because
it leads to provide information to its major competitors and give them chance to get an edge over
its business, by developing more effective strategies.
Environmental or ecological factors which affect business performance of Unilever:
Increase in global warming and pollution that affects ecosystem, force companies to
reduce carbon footprints and develop sustainability in business (Seidl, 2016). In this regard, step
to half the environmental footprint help Unilever to add value in business.
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Legal factors faced by Unilever:
Increasing complexities of rules and regulations, environmental laws and more, force
Unilever in compliance its business with the same, to reduce the barriers to its business related to
consumer based goods. Hereby, making investment in corporate social responsibility will also
give opportunity to respective company in increasing its corporate image.
TASK 5
Organisational theories implemented by Unilever in running its business
Unilever world’s leading company dealing in consumer goods have 400 brands through
which they sell their products and services in 190 more than countries. It has been evaluated that
nearly 2.5 billion individuals all from all around the world utilize products and services offered
by company (Moumen and El Aoufir, 2017). Company while having its geographical presence in
unparalleled manner has 58 % of overall turnover. Unilever effectively perform their
organisational objectives with the help of formative practices which is mentioned below in a
descriptive manner:
Contingency theory: It is an organisational theory use by Unilever in order to effectively
lead workforce and make formative set of decisions (Haddad and et. al., 2017). In contingency
theories leaders within Unilever knows the fact there is no better form of leadership styles for
best effective leadership. Thus, as per this accordance, leaders take advantage of various theories
of leadership that effectively suits with situation. In this organisational structure of Unilever
leaders are task oriented that make them effective to deal with any situation. Contingency Theory
mainly emphasise on the situations within which leaders perform their operations along with
their personality. Leaders of Unilever are both task – motivated and relationship –motivated.
This lead them towards effective accomplishment of organisational goals and objectives in a well
defined manner.
Division of labour: Unilever perform their operations through four divisions that include
beauty and personal care, foods, home care and refreshment. It has been effectively analysed by
company that division of labour is one of their prominent source that lead them towards effective
economies of sale (Stanton and Baber, 2017). As Unilever perform their operations in various
different segments thus, they spilt their labour force as per accordance to their skills and
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competencies. With the help of this company can able to separate different roles and task as per
accordance to individuals specialization in order to gain best effective productive outcome.
Administrative theory: This theory was mainly based on departmentalization concept.
Unilever is taking advantage of this theory as with the help of this, they perform numerous form
of activities in different departments mainly, beauty and personal care, refreshment, food and
home care in a different manner but with a common objective, which is to increase
organisational productivity, profitability and brand image by offering high qualitative consumer
goods and services (Marnewick, Erasmus and Joseph, 2016). As per accordance of
administrative theory, Unilever use Henri Fayol concept which company effectively direct their
all functional departments via proper controlling, planning, coordinating, directing and
organising administrative practices.
With the help of all of the above mentioned organisational theories Unilever effective
perform their organisational goals in a well defined manner. It will lead towards, accomplishing
organisational as well as labour needs in best effective manner with the help of which overall
objectives of company can be attained.
CONCLUSION
As per the above mentioned report it has been concluded that, organisational environment
include environment in which there are changes required to be adopt by organisation in order to
effectively perform their operations. In this report, effective evaluation of macro and micro
environmental forces has been discussed which is required by an organisation to effectively
evaluate as to perform roles and responsibilities in a well defined manner. In addition with this,
different range of theories that has been undertaken by organisation are also discussed in a
formative manner which lead towards effective productive outcomes.
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REFERENCES
Books and Journals
Crowther, D., 2018. A Social Critique of Corporate Reporting: A Semiotic Analysis of Corporate
Financial and Environmental Reporting: A Semiotic Analysis of Corporate Financial
and Environmental Reporting. Routledge.
Ceric, A., 2016. Analysis of interactions between IT and organisational resources in a
manufacturing organisation using cross-impact analysis. Journal of Enterprise
Information Management. 29(4). pp.589-611.
Kunasegaran, M. and et. al., 2016. Talent development environment and workplace adaptation:
The mediating effects of organisational support. European Journal of Training and
Development. 40(6). pp.370-389.
Seidl, D., 2016. Organisational identity and self-transformation: An autopoietic perspective.
Routledge.
Moumen, M. and El Aoufir, H., 2017. Quality, safety and environment management systems
(QSE): Analysis of empirical studies on integrated management systems (IMS). Journal
of Decision Systems. 26(3). pp.207-228.
Haddad, N. O. and et. al., 2017. Organisational challenges of Moroccan dairy cooperatives and
the institutional environment. International Journal on Food System Dynamics. 8(3).
pp.236-249.
Stanton, N. A. and Baber, C., 2017. Modelling command and control: Event analysis of systemic
teamwork. CRC Press.
Marnewick, C., Erasmus, W. and Joseph, N., 2016. Information technology project managers’
competencies: An analysis of performance and personal competencies. AOSIS.
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