Unilever Pestle Analysis

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Unilever Pestle Analysis
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INTRODUCTION
This study will undertake a Unilever Pestle Analysis, which examines the impact of external influences on
business, including political, economic, socio-cultural, technical, legal, and environmental aspects, on the
company's global scope. A pestle is a powerful tool for analysing the impact of external variables on a
company's performance and implementing changes that increase productivity and profitability
(KYUNGHOON et al., 2012).
POLITICAL FACTOR:
When it comes to a company's macroenvironment, the government has a significant impact. A benefit
for Unilever is political stability. A company's strategy implementations are less risky when the United
States has a stable political climate. However, Unilever's consumer products activities might be at risk
due to political issues in the EU. However, the expansion of free trade links, particularly between
industrialised nations, is seen as an economic opportunity and supports global growth.
ECONOMIC FACTOR:
In the long run, the higher wages in developed nations allow Unilever to reap the benefits of rising
consumer incomes in the form of increased revenues. With many of its factories located in developed
countries, Unilever has a problem with increased costs due to external factors (Kwarteng et al., 2015).
China is a significant development area for the organisation, and it is expected to continue to do so in the
future. As a result, economic stability shields businesses from the risks of other markets and provides a
steady source of income.
SOCIO-CULTURAL FACTOR:
The company may attract more consumers by reducing its environmental effect, which is rising due to
environmentalist policies. For example, in the case of Unilever, encouraging the development of new and
more efficient technologies would lower the company's energy use. a rise in sales due to the rising
purchasing power of female customers throughout the globe (Mendes et al.2014).
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TECHNOLOGICAL FACTOR:
In order to increase operational efficiency, business automation helps Unilever. In addition, technical
issues are complicated since they boost competition with other enterprises, even those in the immediate
vicinity. R&D expenditures are a problem for Unilever since they offer its competitors a leg up in the
market. Decreased operational expenses are a byproduct of lower transportation costs, both of which
are beneficial to the expansion of a firm. It is still a struggle, though, since the falling transportation price
makes other companies more competitive.
LEGAL FACTOR:
Unilever has an opportunity to improve its business image by connecting its corporate social
responsibility strategy with environmental standards. The firm will also benefit from better international
patent regulations (Stéphanie et al., 2011). Because of the more fantastic consumer protection rules, the
company could improve its customer service and product quality. Unilever's products might benefit from
these new efforts in the consumer goods market.
ENVIRONMENTAL FACTOR:
Unilever has an incentive to enhance its environmental activities in order to attract environmentally
aware clients because of the rising interest in corporate environmentalism. In order to compete more
effectively with other firms in the consumer products market, the company needs to strengthen its
sustainability programmes (Macdonald et al., 2013). These efforts might also help Unilever handle the
demands of more complicated environmental programmes. The company can increase its competitive
advantage via corporate responsibility in this external consideration.
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REFERENCES
 KYUNGHOON, B., 2012. Improving Competitiveness Of Company.
 Kwarteng, M.A., 2015. Projekt e-marketingové strategie pro firmu Unilever Ghana.
 Mendes, MMDCPF, 2014. Growing Globally: Is it reasonable for Logoplaste to enter the
Colombian rigid plastic packaging market? (Doctoral dissertation, NSBE-UNL).
 Stéphanie, B., 2011. Etude de cas: Unilever/Dove. Publications Études & Analyses.
 Macdonald, R., 2013. Unilever. A Strategic Analysis. GRIN Verlag.
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Unilever Pestle Analysis

(KYUNGHOON et al., 2012).

industrialised nations, is seen as an economic opportunity and supports global growth.

steady source of income.

purchasing power of female customers throughout the globe (Mendes et al.2014).

makes other companies more competitive.

these new efforts in the consumer goods market.

advantage via corporate responsibility in this external consideration.

 KYUNGHOON, B., 2012. Improving Competitiveness Of Company.

Colombian rigid plastic packaging market? (Doctoral dissertation, NSBE-UNL).

 Macdonald, R., 2013. Unilever. A Strategic Analysis. GRIN Verlag.

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