External Assessment of Unilever by Group 1

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  EXTERNAL ASSSESSMENT OF UNILEVER By: Group 1  Dwi Rahmadani Davis (1710533005)  Naurah Atika Dina (1710533024)  Vilvi Renana (1710533034)   Yosi Amelia Fitri (1710531015)  Remote Environment  : PESTLE Analysis Political Factors Affecting Unilever’s Business Opportunity1.The political stability of most countries presents opportunity for Unilever to grow inthese markets. For example, the political stability of the United States helps minimizechallenges in the company’s strategic implementations in the country.2.The company has opportunity for global growth based on the expanding free trade relations, especially those involving developing countries.Threat1.The political issues in the European Union are a potential threat against Unilever’s operations in the region’s consumer goods market. Economic Factors Important to Unilever Opportunity1.The increasing wages in developing countries present the opportunity for Unilever to  profit more from higher potential sales, as consumers gain higher disposable incomes2.Unilever can expect business growth, as these countries grow in terms of consumer goodsmarket size and value. For example, China presents major growth opportunity for the Page | 1  company. Moreover, the economic stability of developed countries cushions the business from risks in other markets, while facilitating gradual but steady growth.Threat1.The increasing wages in developing countries is also a threat in terms of increasing costs,considering that the company has many manufacturing facilities located in developingregions Social/Sociocultural Factors Influencing Unilever’s Business Environment Opportunity1.Unilever can grow through products that directly address consumers’ increasing interest in healthful products2.Rising environmentalist behaviors present an opportunity for the company to attract moreconsumers by improving its environmental impact. For example, Unilever can minimizeits energy consumption by adopting new and more energy-efficient technologies3.The company can grow through higher sales based on improving incomes among female consumers worldwide. Technological Factors in Unilever’s Business Opportunity1.Rising business automation is an opportunity for Unilever to increase operationalefficiency. For example, new business processing equipment can enhance inventorymonitoring to support supply chain and distribution efficiencies2.The decreasing cost of transportation leads to lower operating costs, which contribute to  business growth. Page | 2  Threath1.Rising business automation is also a threat because it increases the competitiveness of other firms, including small ones in local markets.2.Rising research and development (R&D) investments threaten Unilever because it also increases the competitive advantage of other firms in the consumer goods industry3.The decreasing cost of transportation is a threat because it contributes to the competitiveness of other firms. Ecological/Environmental Factors Affecting Unilever Opportunity1.The rising interest in business environmentalism is an opportunity for Unilever toimprove its environmental programs to attract consumers concerned about theenvironment2.The company can enhance its sustainability programs to strengthen its competitiveness against other firms in the consumer goods industry.3.Unilever’s corporate social responsibility strategy must effectively implement these programs throughout the organization. For example, the strategy must consider productinnovation and internal business processes to further reduce business environmentalimpact. These efforts should also support Unilever’s ability to satisfy increasinglycomplex environmental programs. Such external factor is an opportunity for the companyto improve its competitive advantage through corporate responsibility. Legal Factors Facing Unilever Opportunity1.Unilever has an opportunity to enhance its corporate image by matching the organization’s corporate social responsibility strategy with environmental regulations Page | 3  2.Strengthening international patent laws can facilitate the company’s growth. For example,new patent laws in developing countries help reduce patent-related issues Unilever experiences in its remote or macro-environment.3.Stronger consumer rights laws create an opportunity for the company to improve itscustomer-service quality, along with product quality standards. These efforts can increasethe attractiveness of Unilever’s brands in the consumer goods market Page | 4
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