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TASK 2
P3. Relationship Between Different Organisational Functions
Structure of firm
Structure of a firm determines the systems and arrangements which are essential to interconnect different organisational elements like teams and business office. Unilever accepts changes related to customer goods industry and international market.
Different organisational functions
Human resource department:- Human resources are appointed in an organisation to perform duties related to recruitment, selection, development and training of employees. It involves staff's development in effective manner to achieve organisational goals (Hilton and Platt, 2013). For recruitment of employees HR department should provide advertisements to make appropriate selection of employees. Advertising functions are mostly performed by marketing department, by this way marketing and human resource department are interrelated with each other.
Marketing and sales department:- Marketing ans sales department in an organisation are essential to identify customer needs through developing marketing strategy. The department investigates consumers information- background, age, etc. in the market. Sales department function is to sell the product designed by the production department through market research (Savrul, Incekar and Sener, 2014). It involves selling through different ways- telephone sales, mail shots, etc. By cooperating each other in different functions sales and marketing department are connected with each other.
Finance department:- Finance department performs functions related to the financial information like money paid and received by the organisation. All the information is necessary to prepare financial statements of the company to deal with legal necessities. The department prepare different budgets for different sections related to their salary, expenses, deductions etc. Therefore it is interrelated with different departments - sales, finance, marketing, etc.
All the above mentioned functions are linked with the organisational structure as all of them have to cooperate with each other and have to contribute in growth. If the divisions of the company are not working properly than it is not possible to attain goals. All the departments are interrelated with each other because finance sector allot funds to all departments, HR section hire employees for the organisation and marketing and sales division are liable to perform all the marketing related activities so that large number of customers can be acquired by the organisation.
TASK 3
P4. Positive and Negative Impacts of Macro Environment upon Business Operations
Unilever is a multinational company which make products available in more than 190 countries with lot of brands like – Rexona, Dove, Sunsilk, etc. Unilever measures the standards in which it is operating. It use PESTEL analysis to evaluate the external factors which influences the company in different ways.
Political Factors:- Political factors refers to those opportunities and forces which are brought by government and what is their impact on business. It includes trading policies, corruption, government policies, trading policies, tax policy, etc. These factors have both negative and positive impact on business.
Positive Impact:- Political stability is positive impact for company as it provides opportunity to attain its objectives.
Negative Impact:- Political factor like corruption put negative impact on company, as it arise difficulties in achieving desired goals.
Economic Factors:- Economy and it's performance is influenced through these factors which put direct impact on company's profit along with it (Boons and Lüdeke-Freund, 2013). It involves economy trends, industry growth, inflation, interest rates, unemployment rates, etc.
Positive Impact:- Positive impact of economic factors is that increasing employment rates will improve the standard of living and improve the level of national income.
Negative Impact:- In UK the negative influence of economic factors is that increasing tax rates put direct impact on customer's purchasing power and affects the company's pricing strategy.
Social Factors:- In order to target several customers social factors are very essential for marketers to achieve the desired goals. It includes lifestyle trends, customer opinions, cultural trends, education, population growth, etc. These factors determines general workforce information and their working conditions.
Positive Impact:- In Unilever these factors considers the social environment and helps to identify customers preferences and needs.
Negative Impact:- Factors like unhealthy housing and poor education will put negative impact on business.
Technological Factors:- It considers technological development and innovation rates, incentives, barriers, etc. which affects the business or market. It involves innovation and research, emerging technologies, technological development of competitors which affects the business in both positive and negative manner.
Positive Impact:- Effective technological measures will help the business to achieve desired targets in different ways.
Negative Impact:- Improving technological development of competitor companies will put negative impact on company's performance.
Environmental Factors:- Environmental factors considers all those elements which influences the surroundings of company. It includes various ecological aspects like climate impact, ecological regulations, weather, sustainability, etc. It determines the environment concerns of the business.
Positive impact:- Factors like effective workplace efficiency represents employees comfort where they are working, it is a positive impact.
Negative impact:- Factors like seasonal variations affects negatively due to changes in products nature.
Legal factors:- Legal factors have both external and internal parts which affects the business in different ways (Hamilton and Webster, 2015). An organisation must be up to date about the legislation changes and how they will influence the system. These includes consumer protection, tax regulations, future laws, employment laws, current laws, industrial laws, international laws, etc.
Positive impact:- Factors like relief in tax for business and its products will be a positive impact as it helps in expansion of business growth.
Negative impact:- If company do not follow rules and regulations made by government, then it will put negative impact on company's operations.
TASK 4
P5 Internal and External Analysis of Specific Organisations
Internal analysis of environment helps an organisation to identify it's weaknesses and strengths. It is necessary to determine competitor's activity and moves according to the changing environment. On the other hand external analysis helps to identify it's opportunities and threats. In Unilever, both external and internal analysis can be done using- SWOT, PEST, Value chain analysis and Porter's five forces.
SWOT of Unilever
Strengths
Brand image:- Having brand value is very essential strength for any company. As Unilever is consumer friendly brand, it has excellent brand value all over the world. It's products are famous and favoured globally.
Global presence:- Unilever started it's business in 1929 and now it has explored it's business in 190 countries. It is very popular brand and has large market share all over the world.
Distribution network:- Having increasing demand for products, it has vast distribution network. With the help of successful distribution network and supply chain Unilever manages its manufacturing costs and provide effective services to customers.
Weaknesses
Imitable products:- All products used by customers are easily copied. Along with other large companies Unilever has also same hindrances in handling these issues.
Substitutes:- One of the weakness of Unilever is accessibility of substitutes. Its products are easily replaced with substitutes in rising markets in Asia and Africa.
Lack of forward integration:- In Unileverdepending highly on the retailers results in lack of progressive integration.
Opportunities
Developing economies:- Living standard of people is improving through beginning of growing economies. It provides great opportunity to Unilever to put precise product at right place.
Health–conscious products demand:- Demand for health-conscious products are increasing which is a great opportunity for Unilever. By making healthy products it can prove and explore its business.
Social media:- People get more influenced by social media, as Unilever can use social media for advertising instead of TV ads. It provides effective results at low cost.
Threats
Competitors:- For Unilever it is difficult to sustain in the market because of many competitors like P&G, L'oreal, Nestle, etc. To overcome this threat Unilever can establish it's new products with emulous prices.
Ayurveda products popularity:- Demand for Ayurveda products is increasing day by day which is a big threat for Unilever. Like Lever Ayush manufactures Ayurvedic products which is a challenge for Unilever.
Imitation of product:- It is a big threat for Unilever, as it decides to invest millions to launch a new product and someone imitate the product, then it is big problem for company.
It can be concluded that SWOT is necessary to analyse both internal and external environment for a company. While evaluating environment all these factors must be considered and effective measures should be used by considering strengths and opportunities to overcome company's weaknesses and threats.
P6 Strength and weaknesses interrelated with external macro factors
Strengths and weaknesses are related with the external macro factors as they affects organisational efficiency. These are the factors that cannot be controlled. The relation in both of them for Unilever are explained below:
Political factors: these factors depends upon the government policies, strategies, norms and regulations that are required to be followed by a business.
- Strengths:The UK government is providing end number of opportunities to the businesses after Brexit to enhance their economic strength and this is very beneficial for Unilever.
- Weaknesses:Changes in government rules and regulations can affect operations of Unilever is the company is planning for expansion in different regions that it may create problems because all the policies of the government are not possible to be adopted.
Economic factors: These factors are mainly related to the economy that includes tax rates, inflation and deflation rates that may affect business practices.
- Strengths:Standards of living is continuously improving in UK that can help to enhance the sales of different products (Hamilton, and Webster, 2015).
- Weaknesses:After Brexit various business get affected and the economy as well. This can negatively affects