Public Domain Unilever is a leading consumer goods business in the global market. A SWOT analysis of the company highlights business strengths that ensure long-term success. The SWOT Analysis model identifies the relevant strengths and weaknesses internal strategic factors and the opportunities and threats external strategic factors. The business is in a strong position to withstand the threats in its external environment.
A scan of the external macro environment in which the firm operates can be expressed in terms of following factors: The use of PESTEL analysis can be seen effective for business and strategic planning, marketing planning, business and product development and research reports.
PESTEL is useful when a company decides to enter its business operations into new markets and new countries. The use of PESTEL, in this case, helps to break free of unconscious assumptions, and help to effectively adapt to the realities of the new environment.
Limitations of PEST analysis Political factors include government regulations and legal issues and define both formal and informal rules under which the firm must operate. Social factors include the demographic and cultural aspects of the external macro environment.
Technological factors can lower barriers to entry reduce minimum efficient production levels and influencing outsourcing decisions. It may be difficult to forecast future trends with an acceptable level of accuracy.
Unilever Case Analysis. External Assessment Although Unilever's Path to Growth strategy involves all components of the general environment, two segments that are especially relevant are the global and sociocultural segments. Below, these tools are in turn applied to Unilever. The External Environment PESTLE analysis. The PESTLE framework below analyses the political, economic, social, technological, legal and environmental dynamics of the environment in which Unilever. operates. Political. Unilever is co-headquartered in London and Amsterdam. This PESTLE analysis examines complications the company faces and the many external factors Unilever must abide by.. Political factors: European and American laws. Unilever is subject to the regulatory restrictions and guidelines pronounced by the European Commission and the Food and Drug Administration in the United States of America. If they were unable to comply, the company would face.
In this regard, the firm may turn to scenario planning techniques to deal with high levels of uncertainty in important macro-environmental variables. These rules and regulations cover diverse areas such as product safety, product claims, trademarks, copyright, patents, employee health and safety, the environment, corporate governance, listing and disclosure, employment and taxes.
Failure to comply with laws and regulations could leave Unilever open to civil and criminal legal challenge and may result in fines or imprisonment of personnel.
Further, reputation could be significantly damaged by adverse publicity relating to such a breach of laws or regulations. These markets typically proved more volatile than developed markets.
In some regions Govt. However, Unilever is quite good in managing relations with Governnments. Unilever Financial Statement Economic analysis Unilever market environment is becoming highly competitive especially in the Western Europe.
Macro economic environment is highly uncertain whcih has affected micro economic environment as well by creating a fear among ordinary consumers. Competition in EU has grown so strong that Unilever is facing difficulties in places like France, Netherlands.
Economic Decline in business during an economic downturn has resulted in customer and supplier default.
Reduced consumer wealth driven by adverse economic conditions has resulted in consumers becoming unwilling or unable to purchase Unilever products, which has adversely affected cash flow, turnover, profits and profit margins. Adverse economic conditions have resulted in the impairment of some of intangible assets which are in the form of brand names.
Adverse economic conditions have affected in two ways i. However, recession has increased the demand for some of the home care products.
Unilever is operating in different market, which have reacted to recession in different ways. It has successfully maintained high social and environmental standards by designing and producing products that are safe for consumers.
Unilever is working on so many social welfare projects like World food programme and safe drinking water. Unilever is using environment friendly materials and packing stuff. The Unilever brand logo now displayed on all products and advertising, increases its external exposure. Unilever has built its image as an environment friendly and socially responsible company.Below, these tools are in turn applied to Unilever.
The External Environment PESTLE analysis. The PESTLE framework below analyses the political, economic, social, technological, legal and environmental dynamics of the environment in which Unilever.
operates. Political. Unilever is co-headquartered in London and Amsterdam. Competitive and profitable growth in challenging markets Back Competitive and profitable growth in challenging markets. 26/01/ Share.
-looking statements are based upon current expectations and assumptions regarding anticipated developments and other factors affecting the Unilever Group (the “Group”). Unilever market is becoming highly competitive especially in Europe kg/tonne has been driven by three factors: Legislative changes which required different methods of disposal for nonhazardous waste.5/5(2).
Feb 27, · External Environment Of UNILEVER Unilever focus on the external environment and take into account the changes undertaking in the environment outside the organization.
Its environmental scanning includes the following things: Working of an Economy and how social and Political factors affects an Economy. Unilever’s ability to address external factors in its remote or macro-environment contributes to business prominence in the global consumer goods market.
This PESTEL/PESTLE analysis identifies such external factors.
PESTEL ANALYSIS - UNILEVER GLOBAL However, recession has increased the demand for some of the home care products. Unilever is operating in different market, which have reacted to recession in different ways. The PESTLE factors, unite with external micro-environmental factors and internal drivers, can be classified as opportunities and.