General Environment for Unilever

General Environment of Unilever

Political/Legal

Political and legal factors have huge impact on the business for develop new strategies. These factors can affect, how company operates, its costs, and the demand for its products. It includes:

• Political stability
• TAX Regulation
• Trade Regulation
• Employment Laws
• Environment Laws
• Health and safety laws
• Employment laws
• Consumer laws

Unilever Pakistan is facing worst economic conditions and tax regulations. It is facing energy crisis and import tariffs.

Economical

Economic factor that shape the general environment for unilever includes:

• Economic Downturn
• Interest rates
• Exchange rate
• Inflation rate
• Export subsidies
• Import tariffs
• Duty regulations
• Cheap labor

Unilever market is becoming highly competitive especially in Europe. P&G is major competitor in the Europe. And also there are so many discounters in the European market resulting from EU free trade policy. It has very bad impact on Unilever profitability.

Sociocultural

Social factors include the cultural aspects and its influences vary region to region. These factors for unilever include:

• Life style
• Age
• Religion
• Education
• Customer preferences
• Alternatives
• Substitutes
• Hygienic products  

As Unilever is one of the largest FMCG (Fast Moving Consumer Goods) Company in the world. Millions of people enjoy the products of the company every day around the globe. It means company has huge impact on the people life style. It is a responsibility that company considers very seriously.

• Company invested 91 Million Euros in community programme worldwide in 2008.
• 120 Million People reached by Lifebuoy brand's hand washing programme in India since 2002.
• Four million children are reached by Signal/ Pepsodent/ CloseUp/ tooth paste brands through school based oral health programme in 2008.
• Three quarters of the food products in our R&D pipeline bring specific nutritional or health benefits.

Technological

Technology is necessary for the success for competitive advantage and provide power to globalization. For Unilever these include:

• R&D Activity
• Informational Technology
• New machines
• Innovative products

Technology plays a vital role in company history. Right in the 1930's Unilever continues to diversify. Business continue to boom in 1950's with new technology being invented to boast production and improve quality.

Unilever is global leader in research and developments, believing that powerful vitality based innovations are crucial to delivering sustainable growth. In 2008 Unilever appointed first chief research and development officer. 6000 plus R&D professional came together in one unified organization. Company spent 927 million Euros on R&D worldwide. And company also has five laboratories around the world that explore new thinking and techniques to help develop our products. Its strong R&D give it a competitive advantage

Environmental

Growing awareness about climate change is affecting companies very hardly and it can create new markets or destroy existing markets. It focuses on corporate social responsibility and also takes into account environmental hazards that may be caused because of its production activity. It includes:

• Climate change
• Diseases
• Weather

Now a day's climate change is big issue for companies. People like to buy the products which will not be harmful for environment. And Unilever are working towards it.

Unilever depends on the natural environment for supplies of raw materials and water. Sustainability is a business issue. In 2008 we piloted a way to measure our product categories against four indicators covering water waste, sustainable sourcing and green house gas emission. This data will inform future development and innovation across our categories.

• 39% reduction in CO2 from energy 1995-2008.
• 63% reduction in water 1995-2008.
• 68 % reduction in total wastage 1995-2008.

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