Unilever: Analyzing the Global Business Environment with PESTLE

This report presents a PESTLE analysis of Unilever, a multinational consumer goods company, to evaluate the impact of external factors on its business environment. The analysis covers political factors, highlighting the importance of adhering to various nations' policies and frameworks; economic factors, noting Unilever's contribution to GDP and its demand-supply analysis; social factors, emphasizing localized advertising and quality assurance; technological factors, focusing on innovation and digital marketing; legal factors, underscoring compliance with standards and employment laws; and environmental factors, detailing efforts to reduce carbon footprints and engage in CSR activities. The report concludes by emphasizing the need for Unilever to adapt to technological advancements, follow regulations, prioritize environmental sustainability, and understand customer preferences to ensure effective operation in the global market. Desklib provides access to similar solved assignments and past papers for students.

Global Business
Environment

Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
PESTLE Analysis...................................................................................................................3
CONCLUSION................................................................................................................................4
REFERENCES................................................................................................................................5
Books and Journals.................................................................................................................5

INTRODUCTION
Business environment is dynamic is nature. It is important for business organisations to
conduct research and take suitable actions that will help the company to deal effectively
(Morrison, 2017). In this report Unilever is taken into consideration. It is a multinational
organisation that deals in consumer goods. The company is 9th largest retailer of soap in the
world. PESTLE Analysis if Unilever is important part of this report. So, that firm is able to take
suitable actions.
MAIN BODY
PESTLE Analysis
It is a framework that is used to analyse the impact of external factors. It is seen that there
are various changes in the environment and the company must keep track on them in order to
achieve goals and objectives. It is necessary for Unilever to know the influence of external
factors so that they are able to formulate effective strategies. The PESTLE Analysis of Unilever
is done below:
Political factors: There are certain policies and frameworks that are made by the
government of the nation. It includes taxation police, tariffs, trade barriers, etc. In relation to
Unilever it is a multinational organisation and needs to follow the policies and framework of
different nations. It is analysed that there is stable political condition in United Kingdom and that
helps the company to operate smoothly.
Economic Factors: It is seen that Unilever contributes to GDP of the nation. It is seen that
the company analyses the demand of the products in market and then provide them as per the
supply (Ullah, 2021). They also provide employment to various deserving individuals.
Social Factors: It includes the society and people living over there. It is analysed that
Unilever converts their advertisement in the languages according to the region. It helps the local
people of the nation to understand the same. It is seen that Unilever provides best quality to the
customers.

Technological factors: Technology is updating at a regular pace. It is seen that Unilever
understands the fact and try to use innovative methods to serve the customers effectively. Along
with that Unilever uses digital marketing so that they are able to reach more customers and
enhances the sales of the company.
Legal factors: It is also seen that there are various laws applicable to the organisation. The
company assures that they provide as per the standards to the customers (Birahim, 2020). Along
with that Unilever follows all the employment laws that help the company to retain customers.
Environmental factors: Unilever works on reducing carbon footprints and reduce wastage
of resources at the same time. They also do CSR activities in order to create brand value and
serve customers effectively.
It is important to note that Unilever must use latest technology and follow the policies and
legislations applicable. They must also take care of environment and know about the preference
of customers in order to operate effectively.
CONCLUSION
There is discussion related to external factors and their impact on the business organisation.
Along with that the ways firm can use in order to operate smoothly are also examined in the
report.

REFERENCES
Books and Journals
Birahim, S.A., 2020. Internal and external factors of Nestle and comparison with Unilever.
Morrison, J., 2017. The global business environment: Challenges and responsibilities.
Bloomsbury Publishing.
Ullah, N., 2021. A Comparative Analysis between Unilever and Johnson & Johnsons.