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Factors Affecting Unilever

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Political environment includes laws, government agencies, and pressure group that influence and limit various organizations and individuals in a given society. Economic environment consists of economic factors that affect consumer purchasing power and spending patterns. Social factors include the demographic and cultural aspects of the external macro environment. In which demography is the study of human population in terms of size, density, location, age, gender, race, occupation, and other statistics; cutural environment consist of institution of other forces that affect society’s basic values, perceptions, preferences, and behaviors. Therefore, these factors have an impact on customer’s needs and size of potential markets. Finally, technological …show more content…

Like many multinational companies, Unilever has to execute the local, regional and global rules, laws and regulations. They cover in many terms, including product safety, employment health and safety, the environment, taxes... Legal frameworks affect on the ageing of the population (Maestas and Zissimopoulos, 2010).. For example , the age of mandatory retirement was removed in both the UK and the Netherlands , which means that Unilever can no longer force employees to retire when they reach the age of 65. This factor could lead to several threats and opportunities. Whenever Unilever has failed to comply with laws and regulations, it has to face with many challenges about civil and criminal laws and could result in fines or imprisonment. Moreover, Unilever’s reputation could be significantly damaged, which means the trust of clients would be decreased. However, having well managed relations with government is one of the most important opportunities of Unilever in term of political and legal area. Unilever company uses its widespread contacts in many countries to modify regulations, and easily bargain with …show more content…

Many changes of the ageing population lead to several threats for Unilever. Firstly, the structure of demand in future is likely to be changed. Unilever has to meet special needs and desires from older people. For example, greater and greater demands for frozen “ready meal” by older people that the company has to deveplop their products to satisfy customers (Ahlgren, Gustafsson and Hall,2004). Besides, there may be lack of labour in the future. To confront to this problem, Unilever would encourage workers to work longer or recruit migrant workers (Maestas and Zissimopoulos, 2010). However, with the fact that people are more concern about healthy and safe products, Unilever has successfully maintained high social and environmental standards by designing and producing that meet consumers’s needs. They have many effective activities including promoting sustainable development and utilisation of renewable resources. Therefore, it can not be denied Unilever has built its image as an environment friendly and socially responsible

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However it doesn’t have a large impact on the food industry as such as consumers need to purchase food in order to survive. Although they may decrease quantity of foods they choose to buy, they are still willing to purchase basic foods that will sustain their health. Consumers are more likely during an economic downfall to spend their money on foods they require rather than want. The company as a result obtains an advantage from its competitors as they produce long lasting food options, which allows consumer’s to save during tough times. This highlights an opportunity for the company as they produce healthier and simple food varieties which many customers desire.

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A main component of this is a change in behavior of the consumer resulting from changes in styles and fashions. With the social factor, a business can resolve the socio-economic environment of its market via elements like customer demographics, cultural limitations, lifestyle attitude, and education .These factors help Alphabet Games examine consumer needs and what pushes them to make buys. Among the things that should be studied are country demographics, population growth rates, age distribution, positions toward work, way of life changes, training and ecological and health

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Apple marketers must always be aware of the present and future economic developments. This is to ensure that the marketing plan can be done. Economic environment factors that affect consumer buying and spending and affect the wealth of an area include income distribution inflation, recession and spending patterns. The amount of individual or household income is refers by consumer income.

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Furthermore, it is noted that customers, particularly from developed nations like UK, France and Italy are more and more concerned about their health and the report on individual health expenditure over the last decade by OECD (2011) has confirmed that. The report shows that customers are becoming more inquisitive in the type, nature, origin and the processing method of materials in which, apparel and clothing firms uses in producing their product. Thus, demanding for transparency and accountability. Consequently, many customers have gone green and they are persistently advocating for sustainable and ethical activities of firms (Johansson, 2010; Pookulangara

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Other Environment factors include Political, Legal, Economic, Socio culture factors etc. After Saudi Arabia, UAE is the second largest automobile Industry in the GCC. Cars account to 80 percent of the U.A.E. Trucks, vans and buses accounting the rest of the 20 percent. POLITICAL Government activities which influences the operations of an organization or business Entrepreneurs and managers give careful consideration to the political condition to determine how government activities will influence their organization.

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1) Evaluate how Nestlé 's approach to corporate responsibility was good for their business. Corporate businesses generally have to meet ethical, legal, commercial and public expectations. That is what is expected of the business world today. This is known as the Corporate Social Responsibility (CSR). However, businesses with short-term goal will rarely practice CSR since practicing it does not bring any benefit.

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The used of Unilever’s portfolio of categories, channels and geographies is to discover the growth and profitability throughout the period of time. Hence, Unilever Plc should make best investment decisions. Customer Relationships Successful customer relationships are vital to their business and continued growth. Maintaining strong relationships with customers is necessary for Unilever brands to be well presented to their consumers and available for purchase at all times. The strength of their customer relationships also affects their ability to obtain pricing and secure favourable trade terms.

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Firm Infrastructure Unilever is a global company therefore they have a strong financial backup to focus on high quality food solutions with continuous value addition • Helps to invest in premium products and services • Enough funds for continuous innovation Human Resource management Retention of skilled employees through a total rewards system to retain the consistency of quality of products and services • To remain a consistent quality in premium products and service. Technology Using premium technology solution such as SAP ERP to track quality throughout the supply chain. Further to deliver the products on time.

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Micro and Macro Environmental factors that influence Marketing decisions (LO 2.1) Micro Environment: This indicates those elements over which the marketing firm has control or which it can use in order to gain information that will better help it in its marketing operations. Furthermore, these are the factors close to a business that have a direct impact on its business operations and success. It is important to carry out a full analysis of micro environmental factors prior to decide corporate strategy.

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Part A Macro environment is important factor affecting the development of enterprises. A macro environment is the condition that exists in the economy as a whole, rather than in a specific sector or region.(Macro Environment n.d.) Cultures, politics, technology, nature, economy and demographic are the six major forces in the company 's macro-environment.(Kotler & Armstrong 2014, p96） Political factors Political factors include government regulations and legal issues and define both formal and informal rules.(PEST Analysis n.d.) All the companies have to follow these rules.

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Unilever recognises that it cannot cater to needs of all the consumers present in the market. Consumers are present in a very large number in the market place and they vary greatly in their needs and buying behaviour. Companies also are well aware that themselves vary greatly in their ability to serve various segments of the market place. Unilever is no different from other companies in this regard. It recognises that it is far better for it to cater to certain segments that it can serve the best rather than attempting to cater to the needs of the entire marketplace as a whole.

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Technology has always been progressing thus it is rampant in our society today. We use technology; depend on technology in our daily life and our needs and demands for technology keep on rising (Ramey, 2012). Wherever you look, you will see people holding different kinds of technology like cell phone, laptop, tablets and etc. It appears to most of us that technology is a necessity to the point where we can no longer live without it. According to Gavin (2013), technology moves at a rapid pace, and can be hard to keep up with at times.

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We can look through its macro environment by six factors. The six factors are: political, economic, cultural, technological, natural, and demographic environment. The macro environment analysis is to find out the possible threats and opportunities of the brand. The analysis will

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Machines and gadgets are becoming an inseparable part of our lives. Technological development has enabled remarkable advancement, greater comfort, improved health, readily accessible information, rapid communication, and easy transport to virtually

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Introduction Uniqlo is ranked as the 1st apparel brand in Japan (Fast retailing, 2014) and the 5th SPA (Specialty Store Retailer of Private Apparel) in the world (VFPress, 2012). The brand has demonstrated a strong development during the past years with around 818 stores worldwide, estimated at August 2015, (Fast retailing, 2014) and now, they are planning for an expansion to Vietnam market. This report will provide useful information which can be guidelines for Uniqlo’s strategy to enter a new market. The report covers four main parts: PESTLE analysis of Vietnam market; mode of entry suggestion; segments, targets and position process and 7Ps marketing mix. Question 1:

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