Contents

QUESTION 1.................................................................................................................................................1
a. The history of establishment...................................................................................................................1
b.The nature of business and industry........................................................................................................1
c. The Management structure.....................................................................................................................1
d. The Internal and Micro environment that influence the business...........................................................2
QUESTION 2.................................................................................................................................................3
Critically examine the impact and implication of the MACRO Environment forces on the organization
described in Question 01.............................................................................................................................3
QUESTION 3.................................................................................................................................................6
Critically analyze the industry the organization described in Question 01 operates in...............................6
Discuss the ways the chosen organization impacts on the economy..........................................................9
QUESTION 4...............................................................................................................................................11
Critically, examine the ways small businesses have an impact on different levels of the economy in a
global regional, national and international content..................................................................................11
References.................................................................................................................................................16
QUESTION 1

a. The history of establishment

In 1930, two major companies, "Margarine Unie" (Netherlands) and "Lever Brothers" (UK),
merged to form what is now known as Unilever; today, the company is widely recognized as one
of the largest multinational conglomerates in the world, and its products and services are
available in nearly every country around the globe.

b.The nature of business and industry

By any measure, Unilever is a massive corporation: in 2013, it raked in more than €49.8 billion
in sales, and it currently employs more than 185,000 people.

The Unilever Company's emblem appears below.

Unilever is a multinational consumer goods corporation with offices in Rotterdam, the

Netherlands, and Unilever House, London, United Kingdom; Michael Treschow serves as
chairman, and Paul Polman as chief executive officer at present.
The ability to clearly identify that 200 million units of Unilever Company products are purchased
every day is a defining characteristic of the company's product line..

c. The Management structure

It is the manager's primary challenge to solve problems in novel ways, so it is helpful to be

familiar with the P-O-L-C framework and the general inputs into each P-O-L-C dimension.
Management principles have traditionally been broken down into the four major functions of
planning, organizing, leading, and controlling, drawing on a wide range of academic disciplines
in order to better equip managers to meet the challenge of innovative problem solving (the P-O-
L-C framework). When it comes to actually running a business, the four activities summarized in
are in fact tightly intertwined.
Therefore, the P-O-L-C framework's categorization of the abilities and behaviors that make up its
entirety is grounded in sound theory. The fact that this framework has its detractors is not to be
overlooked. That the P-O-L-C functions, while ideal in theory, fail to capture the realities of
modern management is the main source of these complaints.
A manager's day, no matter how senior, can be chaotic and disjointed, with the law of the trivial
many vs. the important few looming over everything. Nonetheless, it appears that the P-O-L-C
functions of management continue to provide a very useful way of classifying the activities
managers engage in as they try to achieve organizational goals.

d. The Internal and Micro environment that influence the business.

A company's official structure of how employees perform their duties. The graphical
representation of a company's structure. When a company's structure is developed or altered, its
managers play a role in what's called "organizational

Internal impacts
Internal factors are those that are both internal to the company and within its sphere of control.
After these are identified, they are classified as either company strengths or weaknesses. A
company's strength is anything that contributes to the company's success. Conversely, a
weakness is something that thwarts the progress of the business. There are a lot of factors to
think about within the company.

External factors

However, unlike internal factors, which are entirely within the company's purview, external ones
are completely beyond its influence. When business owners take into account their external
surroundings, they are better able to adapt their marketing strategy to meet the needs of their
target audience. Several factors are taken into account as exterior factors. The current economic
climate, laws, local infrastructure, and consumer needs are just a few of the most prominent and
crucial considerations.

QUESTION 2

Critically examine the impact and implication of the MACRO Environment

forces on the organization described in Question 01.

Political Factors that Impact Unilever PLC

• The government's stability and the importance of the personal products industry to the
country's GDP.
 Military invasion risk
• The extent to which regulations in the consumer goods industry are tainted with
corruption.
• The government's excessive red tape and meddling in the private-sector Personal
Products sector.
  Protection of Intellectual Property Consumer Goods Trade Regulations and Tariffs
Preferred Trading Partners Antitrust Laws Regarding Personal Products
 Is there a mechanism for regulating the prices of consumer goods, and if so, what is it?
 Taxes, including rates and incentives
 Minimum wage and overtime pay laws Regulations for the length of the work week in
the personal products industry
 Employment Benefits That Are Required By Law
 Consumer goods industry regulations concerning workplace safety.
 Regulations for the Packaging and Labeling of Personal Products

Economic Factors that Impact Unilever PLC

• What kind of economic system is present and how stable it is in the countries where the
business operates.
• Government regulation of the consumer goods market
• Currency exchange rates and the relative stability of the currency in the host country.
• The quality of the industry's infrastructure for personal care products. The competitive
advantages of the host country and the consumer goods sector.
• The expertise of the people who work in the Personal Products sector.
• Indicator of Economic Success:
• Inflation, wages, and economic output
• The rate of economic growth, the level of discretionary income, the percentage of the
workforce that is unemployed, the rate of inflation, and the interest rate all play a role in
the current phase of the business cycle.

Social Factors that Impact Unilever PLC

• Population characteristics and literacy rates

 • Class, hierarchy, and power in society; the level and quality of education in
Unilever PLC's field
• Societal Influences
• Entrepreneurial mindset and open-mindedness in people. To be an entrepreneur is
viewed favorably in some cultures while in others it is frowned upon.
• Perspectives
• Hobbies
Technological Factors that Impact Unilever PLC

• Recent technological advancements by Unilever PLC's competitors Effect of technology

on product range Price changes in the personal care products market
• Impact on Consumer Goods Value Chain Structure Rate of Technology Adoption
• After the break, please enjoy the rest of this article.

Environmental Factors that Impact Unilever PLC

• Factors in the regulation of environmental pollution

• Climate change
• Weather
• Attitudes toward "green" or ecological products;
• endangered species;
• perspectives on and support for renewable energy;
• regulations on air and water pollution in the personal care products industry.

Legal Factors that Impact Unilever PLC

• Competition law
• discrimination policies
• intellectual property laws
• Consumer protection and e-commerce law
• Employment law
• Health and Safety law
• Data Protection law
QUESTION 3

Critically analyze the industry the organization described in Question 01

operates in.

The expansion of the fast-moving consumer goods (FMCG) industry has been profoundly
affected by the integration of Asian markets. Consumers in the region pack quite a punch when it
comes to fast-moving consumer goods (FMCG): between 2008 and 2014, emerging Asia
accounted for roughly a third of the growth in global sales for both Nestlé and Procter &
Gamble. True, both multinational and domestic FMCG companies need to invest and maintain a
physical presence in the region with the long-term goal of sustainable growth in mind in order to
compete in the FMCG market. FMCG companies doing business in emerging Asia need to be
nimble enough to adapt to local dynamics while also establishing or strengthening regional
distribution hubs and a robust marketing presence.

According to research by Euromonitor, the top six fast moving consumer goods (FMCG) MNCs
in Asia in 2014 were Unilever, Nestlé, Danone, Procter & Gamble, L'Oréal, and the Coca-Cola
Company.

This Is a Developing Market

The fast-moving consumer goods market is primarily driven by sales to consumers who purchase
items for use in their own homes. Long-term trends like an expanding urban middle class with
higher disposable incomes and shifting consumer preferences for traditionally Western products
have contributed significantly to the rapid expansion of this market segment in recent years in
emerging markets.

McKinsey found that the 15 largest multinational FMCG manufacturers generate less than one-
third of their global revenue from consumers in emerging markets. Still, it is predicted that
consumer spending in these markets will increase roughly three times as quickly as in developed
economies. McKinsey projects that by 2020, this type of consumer spending will have reached
$6trn, or nearly 50% of all consumer spending.

According to Euro-monitor, packaged food sales in Sri Lanka grew by 11% annually between
2009 and 2013, reaching $1.9 billion in 2013. The largest categories were dairy, bakery, and fats
and oils. With this growth trend continuing, Euromonitor predicted that the packaged food
segment would reach nearly $3 billion in 2018. Sales of packaged foods increased by 19%
between 2009 and 2013, and sales of tissues, hygiene, and other fast moving consumer goods
(FMCG) increased by 10% during the same period, thanks to Sri Lanka's growing middle class.

According to Nielsen's 2015 report, the country is expected to see sizable growth in the FMCG
sector. Research found that middle-class Sri Lankans were prioritizing purchases of non-
essentials like food and household goods.

The annual "Brand Footprint" study by Kantar Worldpanel ranks the top ten fast-moving
consumer goods (FMCG) brands worldwide. In 2016, for the first time, data from Sri Lanka was
analyzed, with information for the island nation coming from the Lanka Market Research Bureau
Household Panel, which tracks consumer purchasing patterns in 45 different FMCG product
categories. According to the research, local brands such as Munchee, Sunlight, Maliban,
Lifebuoy, Anchor, Signal, Vim, Nestomalt, Ratthi, and Diva dominated the top 10 spots for
FMCGs in Sri Lanka in 2015.

The Return of a Key Figure

The Cooperative Wholesale Establishment (CWE), a state-controlled wholesale giant that left the
wholesale market and the FMCG sector in 2003, re-entered the domestic FMCG market in April
2016, suggesting that this trend will continue. The CWE has the power to import and distribute
commodities to stabilize prices as the primary government corporation with the authority to
intervene in the control of prices of essential consumer items.

The CWE, Sri Lanka's oldest state-owned corporation, was founded in 1949 and is responsible
for introducing the country to the concept of self-service supermarkets in 1978. Yes, the CWE's
retail division morphed into Lanka Sathosa, the largest state-owned retail chain in the country.

At the opening of CWE's regional sales and distribution hub in Vavuniya in April 2016, Rishad
Bathiudeen, the minister of industry and commerce, said, "CWE is being restructured and will
have its own customer base as a result and former glory - that's our aim." 'If needed, CWE is
prepared to import FMCGs and essentials to stabilize prices and meet sudden market demands,'
he said. Distributing fast-moving consumer goods (FMCGs) throughout the entire Northern
Province is the responsibility of the CWE's northern wholesale center in Vavuniya. After that,
offices for CWE will be established in Badulla, Kurunegala, Colombo, and Kandy.

Big Friends

The Sri Lankan arm of the multinational FMCG giant Unilever, now known as Unilever Sri
Lanka, announced in the middle of 2016 that it would be forming a partnership with Lanka
Sathosa. Rexona, Lipton, Signal toothpaste, Lux, Surf Excel, Knorr, Becel/Flora, Dove, and
Omo are just some of the Fast Moving Consumer Goods brands distributed by Unilever Sri
Lanka. The government hopes to increase the number of Lanka Sathosa locations from 312 to
500 by 2017.

Complete Playing Field

Cargills' fast-moving consumer goods (FMCG) division, which has a six-percentage-point higher
margin than its retail and restaurant divisions, is seen as the company's future growth engine. Its
2015 volume growth was impressive due in large part to its efforts to improve its supply chain
and increase its production capacity. The 2015 annual report stated that the company's FMCG
national brands accounted for 18% of the group's turnover. Kist brand nectars, cordials, jams,
sauces, and bottled water are among the company's many offerings.

East West Marketing (EWM), a subsidiary of Nawaloka Holdings, distributes a number of the
most well-known FMCG brands in the world and is a key player in Sri Lanka's FMCG industry.
The Milgro Milk Powder, Turkey, Bega, Aparna, Sunrise, and Super chef brands, and a plethora
of other food items like rice, fish, cheese, soy meat, tea, and sauces are just some of the many
items available from EWM. Lanka Canneries and Shaw Wallace Ceylon, both owned by the
Renuka Group, are also involved in the fast moving consumer goods (FMCG) market in Sri
Lanka. These companies produce and distribute, respectively, fish, soya, snacks, instant drinks,
and colorings.

However, several local FMCG manufacturers have turned to foreign markets to expand their
market share, suggesting that exports could be where Sri Lanka's FMCG segment's future growth
story unfolds.

Hemas, a conglomerate based in Sri Lanka, is one such example. In general, the company's
FMCG division accounts for between 34% and 40% of total sales. 12 countries in the Middle
East, Asia Pacific, Asia, South America, Africa, and South-east Asia receive direct exports of
Hemas' fast-moving consumer goods (FMCG) under the brand names Kumarika, Baby Cheramy,
Clogard, Nimex, Goya, and Pro Sport. By way of the Sri Lankan Export Development Board, it
also engages in the oblique export of goods.

And then there's also Ceylon Cold Stores. The popular Elephant House brand Cream Soda,
Necto, and Orange Barley beverages are now available in 1.5-liter plastic bottles thanks to the
company's partnership with a bottling facility in the United Kingdom announced in October
2016. For the tenth year in a row, Elephant House Cream Soda was named "FMCG Beverage
Brand of the Year" by the Sri Lanka Institute of Marketing and Nielsen Peoples. The agreement
was reached in an effort to increase exports to Europe, particularly to the markets of Switzerland,
France, Italy, and Germany.

Daminda Gamlath, head of beverages at Ceylon Cold Stores, told local media in October 2016
that the company was preparing for "the next big step" in export growth by diversifying its
product line. Even with the current demand for Necto, Cream Soda, and Orange Barley among
our European consumers, we are confident that it can make even larger gains in Europe over the
coming months. Elephant House drinks can be found in the UK at Tesco and at Wal-Asda Mart's
stores, as well as in many other European Union countries. Not only that, but they also make
their way into shops in China, India, Korea, and many different Middle Eastern countries.
Discuss the ways the chosen organization impacts on the economy.

There are many openings in the market that the recession has created. Unilever's response to the
global economic crisis is to sell low-cost sachet versions of their most popular global brands in
countries where people have less disposable income. Miniature versions of household cleaning
products from brands like Knorr, Dove, and Lipton can be found on store shelves in many
countries, including Spain, Greece, and the United States. Small packets of mayonnaise are sold
in Greece to add to mashed potatoes. Introduced a new line of inexpensive tea and olive oil
products aimed at the European Union market in preparation for the currency crisis.

Europe's economic downturn has led to a rise in the popularity of the packed lunch and the
homemade baked good. Because of this, stoke baking liquid has been introduced in multi-use
packaging that customers can also use as lunch containers and as a cheaper alternative to butter.
In Indonesia, businesses can turn a profit off of shampoos costing only a few cents each.
Unilever is using these tactics to promote some of its brands as especially good deals. All of
these initiatives are launched first in the developing world and emerging markets.

The company's strategy includes reorganizing its departments as a response to the worldwide
economic downturn. There has been a reduction in force from 223000 to 171000 people. This is
because of the high cost of labor under the laws of the host country. As part of their plan to
streamline operations, the company hopes to reduce the number of factories from 300 to 250
within the region. In the Saudi Arabian region, for instance, Dubai serves as the main office. As
a result, we can expect annual savings of around $1 billion.

A total of 1600 brands were culled down to 400 effective ones. This is yet another response to
the emergency. Rather than putting effort into underperforming brands, the company's
productivity would increase if they did this.

The global challenge can also be met by placing emphasis on innovation. For instance, knorr has
released a variety of concentrated fruit and vegetable juices as well as a yoghurt-based ice cream.
QUESTION 4

Critically, examine the ways small businesses have an impact on different

levels of the economy in a global regional, national and international content

It has long been understood that small and medium-sized businesses, or SMEs, are the backbone
of any thriving economy. Small and medium-sized enterprises (SMEs) have a massive effect on
the global economy and are essential to building a society free of poverty. For one thing, they
guarantee that money can move freely between different social classes because of the many jobs
they create.

Along with their contributions to the input and output of the global economy, small and medium-
sized enterprises (SMEs) play a crucial role in the employment scenario. Certain things need to
be grasped. A report from 2015 predicted that over the next 15 years, roughly 600 million new
jobs would be needed across the globe. Small and medium-sized enterprises (SMEs) are largely
responsible for creating new formal employment opportunities in emerging markets. Nearly 80%
of the marketable jobs are filled by this time. Although they are essential to the growth of the
economy, studies show that about half of all SMEs do not have access to adequate financing or
investment capital. In developing countries, formal SMEs account for roughly 33% of national
income and 45% of total employment. When the unofficial SMEs are added to the mix, the totals
skyrocket.

Small and medium-sized enterprises (SMEs) can be categorized according to their employee
count, annual revenue, and total capital. To rephrase, a small or medium-sized enterprise (SME)
is defined by the number of people it employs and the value of its assets. Standards for
categorization vary from one nation to the next. In Canada, for instance, a small or medium-sized
enterprise (SME) is defined as one with fewer than 500 employees. To give you an idea of how
these numbers compare across countries, in Germany the cap is set at 250 employees, in New
Zealand at 19, and in the European Union, the cap is set at 250 employees for medium-sized
businesses and 50 employees for small businesses. According to the Companies Act of 1985, in
the United Kingdom, a small and medium-sized enterprise (SME) is defined as one with a
turnover of less than £5.6 million and fewer than 50 employees. However, work is underway to
adopt a definition of SMEs that is acceptable around the world.

As was mentioned at the outset, SMEs are critical to both economic growth and job creation. As
a result, they are regularly debated amongst a wide range of government bodies, academic
institutions, and scholars. Internationally, SMEs face the same problems. However, the various
mechanisms by which SMEs contribute to economic growth are understood in varying degrees
by each nation. Medium-to-small businesses (SMEs) contribute to economic growth in a number
of different ways.

Advantages

• Small and medium-sized businesses (SMEs) are extraordinarily effective at promoting

economic expansion. They boost the economy by producing more goods and services,
employing more people, and generating more revenue through taxes.
• SMEs also increase competition among peers and heat up the market scenario. The best
in any company will emerge from the flames of their never-ending battle for dominance.
It's a win-win for the service provider and the customer. Furthermore, this boosts both
overall economic efficiency and aggregate productivity. Entrepreneurs are a source of
new products, methods, and expertise.
• Small and medium-sized enterprises (SMEs) have been growing at a faster rate than the
world's manufacturing sector in recent years. In terms of benefits, the small and medium-
sized enterprise sector stands out due to its ability to boost employment with relatively
little investment.

• The expansion of small and medium-sized enterprises (SMEs) is directly correlated with
economic growth in many Asian countries, including Korea, Taiwan, and Japan. Small
and medium-sized enterprises (SMEs) account for nearly all Chinese businesses, so they
play a crucial role in the country's rapid industrialization and development. About 60% of
 China's industrial output comes from small and medium-sized enterprises (SMEs), and
these enterprises also account for about 40% of the country's industrial profits and taxes.
Over half of the United States' GDP is produced by a wide range of small and medium-
sized enterprises.
• In times of economic downturn, a buffer provided by flexible and innovative small and
medium-sized enterprises can help ease the blow. The general health of the country's
SMEs is strongly correlated with poverty, hunger, and economic prosperity at large.
Throughout the world, small and medium-sized enterprises (SMEs) make up a sizable
portion of the business community. SMBs are responsible for a significant portion of
economic growth and job creation in both developing and developed countries. While
large companies reduce their workforces and employment opportunities, small and
medium-sized enterprises (SMEs) continue to grow and expand.
• Small and medium-sized enterprises (SMEs) rapidly adopt e-commerce and online
transaction of goods and services to keep up with the ever-changing business
environment. In addition to streamlining the buying and selling process, technological
progress has helped businesses save money on marketing and promotion. To simplify
their business operations, small and medium-sized enterprises (SMEs) can take advantage
of the many e-commerce platforms available.
• Small and medium-sized enterprises (SMEs) are indispensable to the primary sector as
service providers and retailers.
• Besides rendering services, SMEs manufacture final products as well.
Manufacturing, agriculture, and information and communication technology (ICT)
service sectors all benefit from the efforts of SMEs, and vice versa. As the economy
grows, more and more SMEs will emerge. More small and medium-sized enterprises
(SMEs) being formed is a surefire way to improve the economy.

Disadvantages
• Small and medium-sized enterprises (SMEs) are a major source of employment, but the jobs
they create are not always permanent. This is because many SMEs fail well before their fifth
anniversary. Consequently, this contributes to an already high unemployment rate.

• Small and medium-sized enterprises (SMEs) have taken a lot of heat for their high rate of
failure. Many small and medium-sized enterprises (SMEs) fail quickly if their products or
services are not well received by the market. Small and medium-sized enterprises (SMEs) often
flood the market with low-priced goods and services in an effort to survive and compete. Such
goods may stand in for the original for a little while, but in the long run, they usually can't
compete with the original. This is disastrous for the company's reputation and value as a startup.

• Furthermore, SMEs lack the fundamental capital required for launching and expanding past a
specific point. The SME fiber is being systematically eroded by the current cash crunch.

•In order to stay in business, SMEs must constantly experiment. But the constant push to
innovate and develop fresh possibilities always leaves us with more questions than answers.
Nonetheless, a small or medium-sized enterprise's best chance of survival is to constantly
innovate.

In order to thrive, small and medium-sized enterprises (SMEs) require an atmosphere of support
and encouragement. Their development and production are hampered by the government's strict
rules and regulations, as well as by the country's precarious political climate.

•There are many strange outcomes that could result from a single choice. That's why it's crucial
to protect one's enterprise with suitable risk coverage. However, due to limited resources, SMEs
typically forego purchasing business insurance.

• If the government does not prioritize the development of business-friendly policies, SMEs will
also face taxation issues.

•For small and medium-sized businesses, the struggle to find qualified workers for open
positions persists as a significant barrier to growth. It's difficult for a small business to hire
seasoned professionals because they're either too expensive or unwilling to take the risk of
working for a startup.
As can be seen, there are benefits and drawbacks to using a small business. The government's
ability to foster entrepreneurship through the introduction of pro-business policies and accessible
means of funding can only be achieved through careful planning and execution. Prospective
entrepreneurs are encouraged to take the plunge by liberal policies, which benefits both them and
society.

Small and medium-sized enterprises (SMEs) have the potential to significantly boost long-term
income, employment, and GDP. New businesses, which can only flourish in an environment that
encourages their growth, are good for the economy because they create new opportunities for
people to earn a living and expand consumers' range of goods and services.
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