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Current Business Environment Assignment Sample

INTRODUCTION - Current Business Environment

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Employees, customer wants and desires, supply and demand, management, clients, supplies, owners, social trends, and other internal and external elements all contribute to the company environment. It is critical for the organisation to comprehend the business environment in order to make informed decisions. There are numerous elements that can help a company gain a competitive edge, as well as numerous factors that can influence how an organisation operates and must be changed by the organisation. Unilever is a multinational organization which is having its headquarters in London, United Kingdom. The organisation employs almost 155,000 people, allowing it to operate more efficiently and effectively (Möller, Nenonen and Storbacka, 2020). The study covers the company's internal and external environments, which will aid in better operating and provide it a better reputation in the future. There are several adjustments occurring in the company's internal and external variables in order to improve its performance. This will be discussed in further detail in a subsequent report.

P1 Types and purpose of the organization

Private firms are those in the market that do not allow the public to buy their stock and have a board of directors of no more than 200 people (Hrechyshkina and Samakhavets, 2019

Fabuš, 2017). They have distinct rules and restrictions than other sorts of organisations, and anyone can form their own private corporation with whatever capital they have on hand. Unilever is a private firm based in the United Kingdom. Food, refreshments, home care, beauty and personal care, and other services are provided by the company. Any decisions made in the company must first be agreed upon by all parties involved before they can be executed. The number of stockholders in the company is legally limited according to the organization and its shares which they want to give out.


  • With limited resources, Unilever concentrates on producing low-cost, high-quality products so that customers' demands are addressed and the company may profit.

  • The company's primary goal is to boost sales in order to increase profits as the aim of the organization is that.

Public Company

The company's shares are distributed to all of the company's shareholders. The company has a large number of stockholders and more than 200 members (Khajeheian, Friedrichsen and Mödinger, 2018). Anyone can become a shareholder, and the company's rules and regulations differ from those of other forms of businesses on the market. NHS is a publicly traded corporation situated in the United Kingdom. This company provides low-cost health care to customers, resulting in a high degree of customer satisfaction. There are no legal constraints on the number of shareholders in a company, which allows it to grow and attract new customers. Employees must also be provided their rights in order for the company to work properly.


  • Free health care services are supplied to customers, resulting in high customer satisfaction. 

  • The company's purpose is to provide customers with better health facilities in the country.

Voluntary company

These businesses are in the market to benefit society, and anyone can donate money to help them operate. Their mission is to educate the public and make them aware of the lifestyle they may achieve with the support of these non-profit, non-governmental organisations. Oxfam is a non-profit organisation based in the United Kingdom that works to improve people's lives. This organisation is global in scope, with 290 separate charities under its umbrella (You and, 2019). In voluntary organisations, trust is crucial legal components that can assist the group achieve its goals more quickly. The goals, as well as the volunteer organisation in the country that has no personal advantage but does have social benefits, must be legally approved.


  • Reduce poverty in the country and educate the underprivileged so that they are aware of their basic rights.

  • The company's goal is not to make a profit, but to improve the country's society.

    P2 Scope and Size of the Company






Unilever has a lot of room to grow and gain a competitive advantage, which is a highly positive feature. They can increase the size of their business to maximise revenues (Syazali and, 2019).

The corporation considers the benefit of its customers, and the government supports these businesses so that the objectives are accomplished, allowing it to function effectively. The organization's scope is vast because they provide services at a very low cost in the market.

People are being educated so that they may make a better life for themselves, which will be a huge help to the organisation in achieving its goals.


The corporation focuses on achieving its goals faster by supplying low-cost items to clients, allowing to make a large profit. This is only achievable if the organisation uses the correct methods and strategies to enhance sales.

There must be no prejudice, and the NHS must provide good services and facilities to its patients. The organization's goal is to deliver the best services to the patients, not to make a profit.

Oxfam is working to bring justice to the country's underprivileged people so that they are aware of their rights and can fight for them if they are not being met. This will provide the country with the safety and security that Oxfam is striving for.


The company is active in 190 countries and has gone online to reach a larger audience. The company employs more than 155,000 workers in total (Hamad, Elbeltagi, and El?Gohary, 2018).

In the hospital, there are about 150,000 doctors and 320,000 nurses on staff. This is the country's largest health-care service, which gives the corporation a significant edge.

There are more than 20 charities that fall under this company's umbrella in order to alleviate the organization's poverty (Hansen and, 2018).

Legal structure

There are rules and laws that must be followed by private businesses in order to achieve the appropriate level of security and long-term viability in the market. Employees must also be kept in order to find the proper level of market steadiness in the long run.

The company is listed on the London Stock Exchange, which provides them with a more favourable environment. NHS must adhere to a number of standards in order to provide a firm foundation upon which they can conduct better and higher operations for the benefit.

This group provides legal advice to law enforcement officers. Here, the management is overseeing the investigations that are being carried out by this agency for the police as well, in order to ensure that justice is served.

Examine the effects of these changes on their products and service delivery

SME's all over the world can employ a variety of strategies to grow and obtain international reputation. As a result of this, the organisation will gain more clients and generate more revenue. Joint ventures, mergers, and franchising are examples of several tactics that can help SMEs obtain a better grasp of the current market and share their experience, which can be useful to both the SMEs and the larger industry.

P3 Relationship of Organisation Structure

For Unilever to work smoothly and effectively in the market there must be interrelationships between all departments and managers in all departments. All of the company's departments are interdependent on one another, ensuring they have direction and clarity. In the market, relationships are critical for ensuring better operations and working conditions, as well as faster processing. Businesses must ensure that better working conditions exist and that higher standards are adhered to.

Figure 1: Structure of a business


Figure 2: Interrelationship between departments

Interrelationship between marketing manager and others

  • Human resource and marketing

Human resources may help an organisation increase its sales, but this is only possible if human resources guarantee that the company's competent and talented personnel receive the necessary training, allowing the company's productivity to increase. The organization's goal is to ensure that they are able to provide the best possible service to its clients (Krajnakova, Navickas and Kontautien?, 2018). To meet client expectations, marketing and human resources must work together to inspire employees and understand their needs so that they may function more successfully.

  • Marketing and Finance

Marketing is required for Unilever's product sales to grow, which can only be accomplished if the finance department gives the marketing department with sufficient funds to conduct product promotions. To produce greater revenues and build a larger consumer base in the marketplace, the corporation must increase sales.

  • Production and Finance

In order to produce its products, the group requires financial support. In order for raw resources to enter the organisation, it is necessary to preserve transparency between the two divisions (Popescu and Popescu, 2019). In order to achieve a stronger market position, well-balanced operations must be present in order to locate the suitable operational and functioning.

  • Production and Marketing

The production team can only manufacture the right products to satisfy the clients' needs, but the marketing team needs all of the product's details from the manufacturing team in order to advertise it. In order to ensure proper operations and operations, which is crucial for the company's success, customers' lifestyles must be linked with products and services.

This is a structure that supports in understanding how the organization's departments work and allows the company to make well-informed decisions. This is advantageous to the company because each department is aware of how they should engage with one another. The organisation has a hierarchical structure that must be followed in order for it to function successfully (Barr and, 2018). Unilever's mission is to provide customers with the best products and services available by promptly responding to their demands and needs. This will boost the company's efficiency while also allowing it to keep its profit margins high.

P4 Positive and negative impacts of macro environment on business operations

External elements that have a significant impact on a company's working operations and plans to improve performance levels, with an emphasis on political, environmental, social, technological, legal, and environmental aspects. Pestle enables senior management and leaders to assess how these factors will impact company performance and profitability margins (Escaleras and Chiang, 2017). Unilever is one of the largest companies in the world, delivering a wide range of products and services to consumers in all stores across the world. To expand into new nations, the corporation can develop plans by analysing positive and negative consequences using PESTLE.

  • Political factors

Positive impact- The political stability of most nations, as well as the growth of free trade prospects, has a significant positive influence on Unilever's commercial opportunities, as there is significant business value in expanding global reach into new countries. With a big number of locations, the company will be able to strengthen its position and reach new sectors of clients (Song, Sun and Jin, 2017).

Negative impact- Political tensions between the United Kingdom and the European Union can have a significant negative influence on a company's ability to expand its operations in European countries.

  • Economic factors

Positive impact- There is strong development prospects in developing countries with a high level of economic stability. As a worldwide brand, Unilever's business success is heavily influenced by global economic conditions. Economic stability in a country indicates high sales growth and a high level of discretionary income among clients. For example, China, as one of the world's fastest developing economies, offers a plethora of options for businesses to expand.

Negative impact- The slowing of the UK economy as a result of Brexit has a negative influence on corporate performance levels since it is extremely difficult to grow when there is a crisis. Due to higher tariff barriers and the company's withdrawal from the EU, Unilever has seen slow development in the European market.

  • Social factors

Positive impact- People have become more health-conscious about their living standards, which has increased the market for Unilever products and services, as the corporation provides high-quality items.

Negative impact- Due to the highly competitive business environment, there is a large investment need for money by the organisation to develop new products and services with increasing client desires (Pan, Chen and Zhan, 2019). People's rising living standards put pressure on companies' performance levels to keep up with customer market share, especially as new brands are gaining market share at a rapid pace.

  • Technological factors

Positive impact- Unilever is concentrating on building a cutting-edge working structure that incorporates cutting-edge technology into its operational functioning structure. It boosts business automation, giving businesses more opportunities to boost their productivity.

Negative impact- Increasing R&D spending put pressure on business financial departments to bring in more capital money, which has a significant influence on company performance.

  • Environmental factors

Positive impact: Increasing business efforts to achieve sustainability, as well as a focus on environmental considerations, improves worldwide firm performance (Ortega and, 2019).

Negative impact: It has a negative influence on Unilever's performance because the company must focus on raising high capital funds in order to prioritise environmentally friendly products and services.

  • Legal factors

Positive impact: The United Kingdom has a high level of legal stability, and the rights of customers and employees are well protected, which is advantageous to the general working environment. It is critical for the organisation to ensure that they are adhering to higher standards.

Negative impact: Changes in legal laws and regulations will have a negative impact on overall productivity because change at Unilever is difficult (Nurmi and Niemelä, 2018). The business must ensure that superior operations and working conditions are in place for the long term

P5 SWOT Analysis

It's a strategic planning tool that helps people or businesses evaluate their strengths, weaknesses, opportunities, and dangers in relation to competitiveness, task planning, and other factors. Organizations typically use it to assess their competitive position in the global market. It is used to analyse an organization's internal environment and assist them in identifying their skills, resources, and threats. Unilever is a British-Dutch consumer goods conglomerate (Morrow and, 2019). The SWOT analysis approach is used to analyse the company's internal environment. Here's how it works:

  • Strengths

Positive impacts: Unilever has a strong brand identity, which is a major strength of the corporation and helps employees enhance product selling behaviour. The organisation has a strong financial position in the worldwide market, which allows them to expand their business into new markets. Due to its strong financial position, the company concentrates on innovation and invests heavily in its R&D department. The company has a strong distribution network, which is another essential asset. As a result of this strength, the company can readily reach its prospective market. Unilever's greatest strength is its commitment to client pleasure. Customer relationship management (CRM) is a tool that helps a firm maintains a positive relationship with its customers. CRM also assigns values to customers in order to motivate them to provide feedback on services and products. 

Negative impacts: Through their franchises, the company operates in over 190 countries, which helps to boost brand image in the international market (Longhurst and, 2020). The company maintains a diverse product line and a strong brand portfolio, allowing it to maintain a competitive advantage over its competitors. Unilever has a flexible pricing strategy based on its product portfolio. It enables a business to cater to a large range of customers by offering varying prices on a wide range of products. Due to its diverse product line, the company is the market leader. It is also seen as a company's strength.

  • Weaknesses

Positive impacts: Although the organisation maintains a diverse product portfolio, the majority of the products are mimicked nature or, to put it another way, may be easily imitated by others. It is one of Unilever's fundamental flaws. Another flaw is that the organisation is extremely reliant on retailers. Unilever, for example, sells its products to consumers through retail outlets.

Negative impacts: When a shop does not sell its products to consumers, it has a direct influence on the company's sales. Financial planning in the organisation is not adequately aligned, preventing them from using cash more efficiently. The company's profitability ratio and net contribution percent are lower than the industry average.

  • Opportunities

Positive impacts: Organizations have a variety of options for expanding their business in other nations. For example, the best choice for a corporation to increase product demand among various clients is to enter the rising market, which is the Asian market (Solangi and, 2019). Furthermore, it enhances the brand's image in various markets among various clients.

Negative impacts: Unilever is particularly well-known for its Nestle products, thus it has a unique chance to increase demand for premium and specialist items, such as Nestle coffee, in the skin vehicle category. It is the most recent product that clients are clamouring for in terms of skin cures. Unilever can also use new technology to differentiate its pricing strategy in emerging markets.

  • Threats

Positive impacts: Currency fluctuations are a significant risk to the corporation because each country has its own currency, which can have a direct impact on Unilever's financial performance. Because it can't make a profit margin on products, growing the power of a local distributor might be a struggle for an organisation.

Negative impacts: Because most of Unilever's products can be imitated by competitors, a lack of consistent supply of creative products can pose a danger to the corporation. As a result, it poses a significant risk to the organisation.

P6 Strengths and weaknesses interrelate with external macro factors

Tows Matrix

Tows Matrix is a tool for analysing, creating, comparing, and selecting business strategies in order to fulfil the organization's overall aims and objectives, such as increased sales, increased brand value, and increased profit.

Interrelation between Pestle and Swot analysis

TOWS Matrix

External Opportunities

  • Opportunities for free trade 

  • Emerging technologies

External Threats

  • The UK economy is slowing as a result of Brexit.

  • Currency fluctuations

Internal advantages

  • A strong R&D department

  • Strong financial results


  • The company has a strong R&D department, allowing it to trade its innovative products with other countries.

  • It also has a strong financial position, allowing it to invest in emerging technologies, which boosts commercial performance (Büyüközkan, Mukul and Kongar, 2021).


  • The R&D department will address this issue by providing long-lasting items at a reasonable price. As a result, Unilever may sell its products at a lower price.

  • Unilever has a strong financial position; therefore it will be able to overcome this threat as well.

Internal Weaknesses

  • Poor financial planning.


  • The company has the ability to trade in a variety of nations, but owing to a lack of financial planning, it is unable to achieve a profit margin.


  • Due to a lack of financial planning, Unilever will have to bear financial losses as a result of currency fluctuations.

Pestle and Swot are useful approaches for businesses since Pestle examines the external environment while Swot examines the company's internal environment. Both techniques maintain intimate interconnections. Pestle refers to the political, economic, environmental, legal, technological, and socio-cultural factors that influence the functioning of an organisation. Swot analysis, on the other hand, stands for strength, weakness, opportunity, and threats. It is a situational analysis tool that aids in the identification of a company's skills and resources. To analyse capabilities, resources, and risks, Unilever uses both pestle analysis and Swot analysis.

Interrelation between Pestle and Swot analysis

  • The organisation has a strong financial position in the worldwide market, which is a significant asset that is directly related to the economic component. It demonstrates that the company has a good impact both inside and externally (Wongchuig-Correa and, 2020).

  • The corporation spends a lot of money on its R&D department, which demonstrates that it has high-quality technology. It has a direct correlation with technological factors, implying that the company's performance both internally and outside improves.

  • Unilever has a low employee productivity rate at work, which is a serious flaw that can be linked to a legal issue. It demonstrates that low wages (a legal factor) make it difficult for employees to maintain high levels of productivity in the workplace.


This study summarises business and business environment in today's dynamic world, where companies have a high volatility character in industry, and companies must analyse many elements in the micro and macro environment. It finds that there are public, private, and non-profit sectors of businesses where the purpose and legal constraints of their operations have a significant impact on management decisions and societal duties. It also includes an examination of numerous elements relating to the size and scope of organisations, which are classified as micro, small, medium, and large. It also concludes that management functions are inextricably linked to organisational structure and objectives, as marketing, finance, human resources, and research and development are all integral parts of a company's operational structure and play a significant role in the company's ability to deliver high-quality results. By highlighting the paradigms on which management can improve its position in the competitive business world, it concludes that macro and micro settings have diverse elements that impact firm performance delivery to all consumers globally. This paper finishes with an explanation of pestle analysis and swot analysis of retail behemoths in the United Kingdom, as well as how strengths and weaknesses are linked to external environmental elements in order to make management decisions based on future growth and enrichmentREFERENCES

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