Macro Environment for Unilever

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Technological Factor

Technological factor refers to how the latest technology can help to improvise the business of the organization. An organization needs to identify if the latest technology able to help them in ways of producing and distributing goods and also communication. This may include new manufactured machineries, new ways of communication, and new updates of software used. This factor makes the organization need to keep the current updates of the technology used to ensure that their service can be used to the current era.

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Environmental Factor

Environmental factor refers to how the ecological aspects can affect an organization. This factor includes all that relates to the surrounding environment. For example, climate change, tourism, and agriculture. As the rise of the importance of CSR (Corporate Sustainability Responsibility), environmental factor has become very important in PESTEL analysis.

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Legal Factor

Legal factor consists of two sides, which are external and internal. Legal factor refers to how certain territories’ law can affect an organization business. This includes consumer rights, advertising standards, product labelling, and health and safety. An organization must adapt to the following changes wherever they expand their business to.

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Effects of Marco Element Towards Nokia

Unilever is a global company where their business is over 190 countries with hundreds of brands of products across the world. Unilever has been reckoned as the largest consumer goods corporation in the world in 2012. As a global company, Unilever must follow many laws. They must develop different products for different types of culture in many different countries. The PESTEL analysis is the best framework to analyse the challenges faced by Unilever.

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Political Factor against Unilever

The political factor may affect Unilever in many ways. The factors that are affecting Unilever can be divided as threat or opportunity. The opportunities are stability of the political environment in that country and growing free trade relations whereas the thread is political issues in European Union.

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Economic Factor against Unilever

As a global company, Unilever’s business performance depends on the economies situation in the world. It can be a thread and opportunity for Unilever as well. However, in some opportunity can be the threat as well. For example, the increasing wages and the economic stability of developing countries can be a threat and opportunity for Unilever. The only opportunity without having threat is the high growth of the developing countries.

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Social Factor against Unilever

Sociocultural trends make a huge impact in Unilever’s business. However, the goodness in social factor is that it only brings opportunities for Unilever and no threats. The opportunities are rising health consciousness of the society, the rise of the environmentalist behaviours and the gradual dismantling of gender divide.

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Technological Factor against Unilever

As a big organization, Unilever depends on the use of technology to support its consumer goods business. However, in this factor, it can bring many threats to Unilever but in some threat, can be an opportunity as well. For example, rising business automation and decreasing cost of transportation based on technological efficiencies can be the opportunities and threats for Unilever. The main threat of this factor towards Unilever is rising R&D investment.

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Environmental Factor against Unilever

Unilever promotes sustainable and renewable resources. Therefore, environmental factor only brings opportunities towards Unilever. The opportunities are rising interest in business environmentalism, increasing business efforts on sustainability and increasing complexity of environmental programs.

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Legal Factor against Unilever

As a global company, Unilever must obey different rules and regulations from different company in order to minimize the barriers to its consumer goods business. However, this factor only brings opportunities towards Unilever. The opportunities are increasing complexity of environmental regulations, strengthening international patent laws and strengthening consumer rights laws.