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Table of Contents
Introduction................................................................................................................................2

Impact of COVID-19 and Brexit on Reckitt Benckiser (RB)....................................................2

Impact of COVID-19 on RB..............................................................................................2

Impact of Brexit on RB......................................................................................................3

PESTEL Analysis of Reckitt Benckiser.....................................................................................3

Political Factors..................................................................................................................3

Economical Factors............................................................................................................4

Social Factors.....................................................................................................................4

Technological Factors........................................................................................................4

Environmental Factors.......................................................................................................5

Legal Factors......................................................................................................................5

SWOT Analysis of Reckitt Benckiser........................................................................................6

Strengths.............................................................................................................................6

Weaknesses........................................................................................................................6

Opportunities......................................................................................................................7

Threats................................................................................................................................7

Interrelationships between SWOT & PESTEL of RB.......................................................7

TOWS Analysis of Reckitt Benckiser & Recommendations.....................................................7

Strengths and Opportunities...............................................................................................7

Strengths and Threats.........................................................................................................8

Weakness and Opportunities..............................................................................................8

Weaknesses and Threats....................................................................................................8

Conclusion..................................................................................................................................8

References................................................................................................................................10
Introduction
Companies that are more reliant on the overall health of the economy are impacted by
macroeconomic issues. Industries that produce and distribute staple products and services
tend to be more self-sufficient. Cyclical sectors- primarily those involving luxury products
and tourism – are more highly influenced by macroeconomic variables [ CITATION CFI21 \l
1033 ].

Impact of COVID-19 and Brexit on Reckitt Benckiser (RB)

For the purpose of this study, the organization chosen to evaluate the impact of COVID-19
and Brexit is Reckitt Benckiser.

Impact of COVID-19 on RB
Unsurprisingly, the coronavirus pandemic has prompted majority of the consumers to
prioritize personal cleanliness. People are cleaning their hands more than eight times a day in
the UK to fight off the virus, up from five times a day before the epidemic, when nearly 50 %
of consumers hadn't used hand sanitizer. Reckitt Benckiser, a maker of hygiene, health, and
nutrition products, reported a quarterly net revenue of £3.5 billion as a result of the
cleanliness obsession.

During the period, hygiene was the group's major source of revenue growth [ CITATION
Fin20 \l 1033 ]. Demand for its Lysol disinfectant contributed to a 12.4% gain in divisional
sales, while Reckitt's Finish dishwashing brand also saw an uptick, owing to increasing
working from home and school closures. Reckitt Benckiser's health goods mirrored the
group's total sales increase of 6.9%. Due to the significant pantry loading that happened in the
corresponding time, Dettol income remained unchanged year on year, and total demand is
significantly higher than pre-COVID levels.

According to the company's administration, the global scenario remains volatile in the short
term. Countries throughout the world are currently at very unalike phases of the epidemic,
with cases in India and Brazil, for example, quickly increasing, while the virus has mostly
receded in Australia and China [ CITATION Arn21 \l 1033 ]. As a result, RB continues to
closely watch a variety of leading indicators in order to understand how demand dynamics
will unfold throughout the year.
Impact of Brexit on RB
Rising geopolitical instability, which has the potential to destabilize major markets and, in
certain circumstances, impede our operations. Domestic political developments, geopolitical
tensions, the impact of Brexit, volatility in oil prices, and changes in local rules affecting
imports and exports are all factors to consider [ CITATION Rec20 \l 1033 ].

Any geopolitical instability can have a wide range of consequences, including decreased sales
and revenue, changes in company finance and treasury, and less chances for strategic growth.
Because RB works on a worldwide scale, geopolitical instability can have an influence on
their supply chain operations, labour management methods, and the protection of their data
and intellectual property.

RB continues to constantly watch the global geopolitical situation to ensure that they are
aware of any events and how they may affect their business. Key steps include monitoring
and analyzing any political or regulatory uncertainties via their External Affairs network,
engaging advisers in crucial markets, and identifying security threats to the firm via the
Corporate Security programme.

PESTEL Analysis of Reckitt Benckiser

Other than competitive factors, PESTEL research gives considerable insight regarding the
operating problems Reckitt Benckiser Group Plc would encounter in the present macro
environment. For example, an industry may be extremely profitable with a strong
development trajectory, but Reckitt Benckiser Group Plc will suffer if it is located in an
uncertain political climate. The PESTLE analysis of RB are as follows:

Political Factors
RB operates in many countries, exposing business to various sorts of political and
environmental risks. Some of the factors are:

 Regulatory Methods- Regulatory processes have been streamlined in conformity with

global standards, aiding the country in improving its rating for “ease of doing
business.”
 Government Regulations and Rules- The government follows all WTO laws and
regulations. Policy development and policy implementation are both consistent.
 Terrorist Attacks- It is believed that in the post-9/11 world, businesses such as RB
must function under the shadow of a terrorist attack. The prudent way to mitigating
 the losses caused by terrorist attacks should be to acquire coverage and other kinds of
hedging products.
 Court Independence - The country's court is mainly autonomous in terms of
commercial and business decisions. Businesses have challenges when there is a
conflict between public interest and proprietary technology.

Economical Factors
Some of the economic factors are:

 Form of economic system in operation nations - what type of economic system exists
and how stable it is.
 Intervention by the government in the free market and associated Consumer Goods
 Exchange rates and the stability of the host country's currency
 Financial market efficiency- Does Reckitt Benckiser need to raise money in the local
market?
 The rate of unemployment
 The rate of inflation

Social Factors
RB’s leadership should consider the following social elements for PESTEL analysis:

 Birth Rate - The birth rate is an excellent predictor of future demand.

 Attitude Toward Recreation - RB should do ethnographic research to better
understand both attitudes toward recreational activities and leisure activity selection.
 Attitude toward saving- This expenditure and savings culture influences both the type
and amount of spending.
 Attitude Towards safety and health
 Trends in the demographic.

Technological Factors
Some of the technological factors are:

 Intellectual Property Rights and Patent Protection - Before market entry, RB must
consider the intellectual property rights environment.
 The influence of technology on product offerings
  Technology transfer and licensing concerns for RB- regulations and licensing culture
of IPR and other digital assets should be carefully examined so that RB can prevent
shakedowns and IPR thefts.
 Development of E-Commerce and related infrastructure- Because E-Commerce is
fundamental to the RB business model. Before entering a new market, it should assess
the e-commerce infrastructure, technological infrastructure, and so on.

Environmental Factors
Some of the environmental considerations that a company should think about ahead of time
are:

 Policies related to recycling- What economic reforms will be implemented in the

future market, and how will RB adhere to them?
 Corporate Social Responsibilities Culture- Does RB offer CSR activities that are
acceptable for the new market, or does it need to launch new efforts to appeal to the
future market?
 Climate Change Impact- How will climate change impact the RB business model and
supply chain? For instance, if the supply chain is not dynamic, goods from one part of
the world may be delayed owing to a sudden change in weather.
 Laws governing pollution in the environment

Legal Factors
Some of the legal factors are as follows:

 Employment Regulations- What are the country's labor laws, and are they compatible
with RB's business model?
 Administration of justice and the potential impact of the government - The judiciary's
independence usually represents the strength and legitimacy of the country's
organizations.
 Business Rules- Before making an entrance in a new market, RB must determine what
the company laws are and how they vary from those in the home market.
 Protection of Intellectual Property Rights - The RB should examine the degree of
protection afforded to intellectual property rights under the country's legal framework.
SWOT Analysis of Reckitt Benckiser
Reckitt Benckiser, based in the United Kingdom, manufactures health, hygiene, and home
care goods. The company operates in a wide range of industries and has top sellers in the
majority of the product categories in which it operates. The SWOT analysis of RB are as
follows:

Strengths
 Reckitt & Benckiser offers a diverse product portfolio, with numerous top-selling
brands in their respective categories. Lysol and Dettol are two examples of household
products that have provided the company with substantial brand value.
 Strategy: By ensuring continuous cash flow in all of their items, RB has worked hard
to outperform the industry average in all of its sectors and to establish a dominant
position in fast - growing portfolios.
 RB has global leadership in a variety of industries.
 Focus on procurements: RB has made several extremely smart purchases. They are
also focusing on buying small but lucrative firms in industries where they do not have
a significant presence or leading products.
 Depth first: RB has prioritized expanding penetration in existing markets over
extending into additional product categories.

Weaknesses
 Leadership issues: Four of RB’s senior executives resigned in September 2017,
implying that the company may experience a significant leadership shortage the
following year The departures of the heads of IT, people, marketing, and growing
markets at the same time have hurt the company's reputation and generated negative
speculation among stakeholders [ CITATION Hit19 \l 1033 ].
 Over-reliance on power brands which has an adverse impact on the company's
innovative culture.
 RB invested a huge amount of money to acquire Mead Johnson, which is a firm that
works in the baby feeding area. This decision was disastrous since the firm had no
prior experience in the field of baby feeding, which is a extremely competitive
industry in and of itself.
Opportunities
 RB has increased its attention on emerging markets. The firm's popularity has grown
in these sectors, and they have a bright future ahead of them, particularly in the field
of residential care.
 Potential of growth in Indian and Chinese markets.
 Acquiring Mead Johnson and opening a new market access.

Threats
 Brexit: Companies in the United Kingdom have had severe financial challenges as a
result of Brexit, and usually fluctuating product prices have raised the pricing of most
commodities. These have grown into significant problems to the company.
 SmithKline Beecham, Unilever, and Procter & Gamble are also competitors for the
firm.

Interrelationships between SWOT & PESTEL of RB

Some of the interrelationships between the PESTLE and Swot analysis of RB are as follows:

 The company has spread worldwide which is one of its strengths and also it has a
solid reputation for providing health items to the middle and higher classes.
 Economies of Scale- In terms of production costs, RD has achieved economies of
scale in its items [ CITATION Fai21 \l 1033 ].
 Entrepreneurial Ability- RD provides its staff with entrepreneurial flexibility, which
enables product innovation.
 Reputation for fulfilling social duty- Has a high reputation for sharing profits with
those who help to enhance the health of children.

TOWS Analysis of Reckitt Benckiser & Recommendations

Strengths and Opportunities
RB has global leadership in a variety of industries. Therefore, RB can use this strength as an
opportunity to acquire markets in the areas where they haven’t had a stronghold on and can
flourish in newer market segments and areas. It can use its strong R&D division to gain
information and acquire knowledge about these new market areas.
Strengths and Threats
Some of the major competitors to RB are SmithKline Beecham, Unilever, and Procter &
Gamble who deal in the same business. To overcome its competitors and gain an upper hand
over them, RB can prioritize expanding penetration in existing markets over extending into
additional product categories.

Weakness and Opportunities

One of the weakness of RB is that it is overly dependent on its power brands. RB has been
extremely focused on its 18 power brands, with more than 40% of their revenues due to these
products, many of which were created in the previous three years. This has an impact on the
company’s innovative culture. To overcome this, RB can focus on its new acquisitions like
Mead Johnson and focus on that area to make it a good investment.

Weaknesses and Threats

RB has been facing a lot of issues in the management and leadership areas where the
resignation of leaders has been a threat. It can overcome this threat by providing good
opportunities to the management and giving them the freedom to work effectively and
efficiently. This will help in employee retention.

Another threat that RB faces is the availability of substitutes in the market at lower prices. It
can overcome this threat by selling their products which are of epitome quality at somewhat
lower prices. Once the consumers get this option, they would go for a well-known brand
which offers quality product at prices which are not much than the cheaper substitute
products.

Conclusion
Because micro and macroenvironmental elements have a substantial influence on the
performance of marketing operations, such environmental aspects must be thoroughly
examined when developing a strategic marketing strategy [ CITATION Oxf21 \l 1033 ].
Considering the aforementioned criteria will increase the long-term effectiveness of Reckitt
Benckiser's marketing strategy and brand reputation. If RB can tackle all its weaknesses and
threats and work on and improve their strengths and opportunities then it will only grow and
flourish as an organization.
References
Bhasin, H., 2019. SWOT analysis of Reckitt Benckiser. [Online]
Available at: https://www.marketing91.com/swot-analysis-of-reckitt-benkinser/
[Accessed 16 July 2021].

CFI, 2021. Macro Environment The overall, broader economy and the forces affecting it.
[Online]
Available at: https://corporatefinanceinstitute.com/resources/knowledge/economics/macro-
environment/
[Accessed 15 July 2021].

Dutta, A., 2021. Covid-19 second wave: Reckitt Benckiser's biz delivers robust sales growth.
[Online]
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digit-growth-across-segments-in-march-qtr-for-reckitt-121042800955_1.html
[Accessed 15 July 2021].

Fern Fort University, 2021. Reckitt Benckiser Group Plc PESTEL & Environment Analysis.
[Online]
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group-plc.php
[Accessed 15 July 2021].

Financial Times, 2020. Investors Chronicle: Reckitt Benckiser, Bellway, Petra Diamonds.
[Online]
Available at: https://www.ft.com/content/e6a54881-ef57-4f10-a1f0-c7b2d5ff4978
[Accessed 16 July 2021].

Haque, F., 2021. SWOT Analysis of Reckitt Benckiser. [Online]

Available at: https://www.thestrategywatch.com/swot-analysis-reckitt-benckiser/
[Accessed 16 July 2021].

Oxford College of Marketing, 2021. The Impact Of Micro and Macro Environment Factors
on Marketing. [Online]
Available at: https://blog.oxfordcollegeofmarketing.com/2014/11/04/the-impact-of-micro-
and-macro-environment-factors-on-marketing/
[Accessed 16 July 2021].

Reckitt, 2020. Annual Report and Accounts 2020. [Online]

Available at:
https://www.annualreports.com/HostedData/AnnualReports/PDF/LSE_RB_2020.pdf
[Accessed 15 July 2021].