Economic & Business environment of Unilever Company Ltd.
Task 1: Economic exchange impact on Unilever Company
Business and economic environment:
Unilever
is a popular multinational global consumer products company in the globe. The
products of the Unilever Company include cleaning agents, food beverage, and
the personal care products. The economic and business environment of the
Unilever Company consists of the internal and external factors of the local and
global market. Worldwide there are various types of similar products
organization that’s why Unilever has to compete with the others firm. They
provide the utmost good products for the customers with a lowest cost than
others. For the competition with others Unilever takes innovative marketing
promotion policy. They have a good relationship with employees, customers, and
suppliers. They collect data from the customers or suppliers and provide best
qualities products with reasonable price in the markets than others that’s why
till now they are a leading company in the world. The two main variables of the
business and economic environment of the Unilever Company are the followings:
Ø Microeconomic
environment: The microeconomic environment is known as the individual actions
as well as consumer actions of the UnileverCompany. The microeconomic
environment of the Unilever Company includes the local and global market size,
product market demand, product suppliers, supply variables, local and global competitors,
different distribution channel of Unilever Company. Those variables impact a
lot on Unilever Company. According to market size Unilever supply their
products on the market because there will be a major issue if the markets supply
demand system became inconsistency.
Unilever properly distribute the products on market. They also keep in
mind local and global competitors and take strategic decision for the variable
markets. Otherwise the market will be transferred to others organization. Thus
they are making higher profit by giving these products facilities. (Pearson.J, 2009).
Ø Macroeconomic
environment: The macroeconomic environment of the Unilever Company involves the
factors that have effect on the entire business economy of the Unilever Company.
The macroeconomic environment involves factors such as: inflation rate,
interest rate, taxation, savings rate, recession, depression, currency exchange
rate, unemployment rate and different consumer confidence level. If taxation
rates, inflations and interest rates go high then the products rate of the
Unilever Company will be increased and it will be tough for them to maintain
the markets. The products rates will go beyond the customers which affect the
company’s profit. That’s why they take innovative strategy and plans for those
situations.
The
business and economic activity of the Unilever Company has affected by the
changes or variations of microeconomic factors and macroeconomic factors of the
UK economy. Like as, when the market demand and supply pattern changes, it has
impact on the sale pattern, profit pattern and overall economic performance of
the Unilever company. The competitors and suppliers of the Microeconomic
variables also effect on the business activity and economic activity of the
Unilever Company in UK. The changes in the interest rate of macroeconomic
factors have effect on the economic activity of the Unilever Company. (Greenhaus, 2013) .
Government policies:
The
government of UK also formulates different policies and procedures for
operating the business activities in the local country. The government of
United Kingdom formulates different policies that have positive and negative
effect on the economic and business activities of the Unilever multinational
company (Sawyer, 2013). The Government of United Kingdom
formulate the policies on the business cycle like as economic policy,
industrial policy, competition policy, regional policy, social policy, fiscal
policy, transport policy, environment policy, training policy and education
policy.
These
govern policies has impact on the economic performance of the Unilever company
in UK. For the implementation of the policy, the UnileverCompany was imposed
different subsidies, non-financial and financial funds by the government in
UK. The operation costs of the Unilever
Company areincreased. So the marginal operating revenue is decreased and it
makes effect on the Unilever economic growth and sustainability of the Company
in UK.
Government spending:
Government
spending of United Kingdom changes within the country. The variations of the
spending of the UK government make important effect on the business activity
and economic environment of the Unilever Company. When the government decreases
the spending of the government, the taxation on the corporate profit on the
business is decreasedand theUnileverCompany pays little taxation on the
corporate profit of Unilever Company. So in influence positively on the
economic profit of the Unilever business environment and when the govern
spending is increased more than before, the government increased that tax rates
on the corporate profit on the business organization, then the Unilever company
needs to pay more and it declared the operational revenue of the Business
activity of the Unilever company in UK(Koontz, 2008).
