Pestel Analysis

PESTEL ANALYSIS: A REPORT ON UNILEVER INTRODUCTION TO THE COMPANY The Fast Moving Consumer Goods (FMCG) environment is rapidly changing. Especially, the increasing popularity of line extensions seems to depend on advantages inherent in brand leveraging. FMCG manufacturers go into R&D in order to come up with the product that best satisfy consumers because customers become more critical about attaching themselves to a particular brand. They will also like to buy less expensive product due to current economic tide. Unilever is one of the biggest Fast Moving Consumer Good (FMCG) companies in the world. I have always been inquisitive about Unilever’s operations because I use some of its products, even right from childhood. This together with the current environmental challenges being faced by FMCG manufacturers motivated me to find out about Unilever’s operations and the current challenges it faces in the volatile business environment.

Unilever was founded in 1930 through merger by the British, Lever Brother; and the Dutch, Margarine Unie; now Unilever PLC in London, U.K and Unilever N.V in Rotterdam, Netherlands respectively. In 1872 before the merger, Jurgens and Van den Bergh, the Dutch, built factory in Netherlands for the production of Margarine made from milk and fact. In 1927, they formed Margarine Unie (margarine Union) together with two European Businesses, Centre and Schicht. Lever & Co on the other hand was founded in 1884 by British William Hesketh Lever and his brother James, and was producing soap – Sunlight soap for people in England especially for women. William Lever wrote: “to make cleanliness commonplace; to lessen work for women; to foster health and contribute to personal attractiveness, that life may be more enjoyable and -1© 2008 Codewit.com. All rights reserved.

rewarding for the people who use our products”. In 1890, Lever & Co become a limited company known as Lever Brothers. Unilever, Unilever N.V and Unilever PLC comprise Unilever

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