Pestel Analysis Of Unilever

Analyzing external environment of Unilever has many aspects in the global market. First of all, the PESTEL framework will find out about the political, economic, social, technological, legal and environment dynamics of the environment that Unilever operates. In order to develop and operate firms in a specific market, there are certain rules of the government applied in the firms. The co-headquartered of Unilever is located in London the European Union, which is the union creating opportunity for trade among members’ states by the harmonization of certain rules relating to business and the removal of trade barriers. If the Netherlands leave the EU, it will have a massive impact for a co-headquarter business like Unilever.

Additionally, the percentage of unemployed has risen and wages have stagnated in several of the economies in which Unilever supplies consumers. Low household consumption, high unemployment and falling wages bring the bad impact to lots of business like the Unilever Corporation. The next criterion in PESTEL framework is the society. Life expectancy has been increasing significantly in wealthy countries. For instance, in the UK in 1980, life expectancy stood at 70.4 years for men and 79.8 for women. By 2010, it had increased to 79.3 years and 83.6 years, respectively for men and women (Blossfeld, Bunchloz, and Kurz, 2011). At the same period, the fertility rate has been decreased over time. According to this change, it has a certain effect on businesses like Unilever. Firstly, the structure of demand of customers will be modification. The senior citizen has unique needs and requirement that will need to be met by Unilever. For instance, the frozen ‘ready meals’ will be a greater demand for the elderly (Ahlgren, Gustafsson and Hall, 2004), which will directly affect Unilever ‘s ‘Sara Lee’

Increasingly, consumers, particularly the young generation, utilize social network, retailing websites and mobile forms of communication to connect with retailers, to purchase products in online networks. This means that consumable companies like Unilever need to harness the Internet and mobile technologies in accessing these customers. For example, a growing number of companies now include social networking websites such as Facebook and blog like Twitter in their marketing and engaging with customers. Besides, the constantly connection makes the online selling environment for products increasingly competitive. In the digital age, firms like Unilever must carefully concern about their marketing activities (Sashi, 2012). Legal is the fourth component in PESTEL framework. Unilever has presented in some 190 countries worldwide which means that it must follow by their national laws. The extent of the activity in multinational company means that it must consider a certain amount of resources to scanning the legal horizon and making sure that it responds to changes accordingly. There have been significant changed in the legislation in different