Management and Unilever

A review of techniques to analyze the environment and an assessment of their suitability
The analysis of the environment in which the business operates is very important. It is very crucial for the business to ensure survival, differentiation and competitive advantage. There are three levels in which the environment of the business can be broken which are as follows:
The Macro environment
The model that is most commonly used to analyze the macro environment of the business is called PESTLE analysis. Using this analysis the political, economic, social, technological, legal and environmental factors affecting the business are analyzed. The political factors consist of the law and order condition and the political stability in the country where the business operates. The economic influences include factors such as the monetary and fiscal policy of the country. Similarly, it also include the per capita income of the people and the overall economic condition of the country where the business operates. The social factors also vary from one country to other and might impact the business it include the social customs and habits of the people which might impact their buying decision. The use of the technology might also impact the operations of the business. Legal factors include the general laws of the country which might also impact the business. The environmental influences can also impact the operations of the business.
The micro environment
The micro environment of the company can be easily understood with the help of the Porter’s five forces analysis. This model can be used in order to properly understand the competitive position of the company with respect to its market and industry. This model consist of bargaining power of buyers, bargaining power of suppliers, threat of new entrants, threat of substitute products and rivalry among the existing competitors.
The internal environment
The best tool which can be used to in order to understand the