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Hindustan Unilever Limited Case Solution & Answer

Hindustan Unilever Limited

PESTLE Analysis

The PESTLE analysis helps the company improve the business and helps understand the business dynamics and strategies required for the consistent growth of the business compared to other companies.

The PESTLE analysis of the company analyses the brand on the company’s business strategies. While the PESTEL Analysis the various external factors, including political, economic, social and technological, legal and environmental factors that affect the company’s business. The external factors that affect the business of a company like HUL are as under:

Political Factors

It is the best chance for the Hindustan Unilever limited to diversify its portfolio by merging with Lakme and Tata group of oil Mills which will help the company diversify its portfolio and regulate the expansion of their products and services into broad areas. While HUL does not support any government or political party, it is because it is the sense in India that can affect the HUL marketplace. At the same time, the different unions in the HUL have strong links with the political parties.

Economic Factors

In 2009 the world was hit by the economic crisis, which affected the international market. Still, the economic crisis least hit the Asian countries because their dependency was less based on the interest investments. In most countries, HUL is losing their profits, while in India, HUL earned colossal profit compared to other companies of HUL outside of India. The HUL market is under pressure because the company has persistent price variation as the company trades the products on the stock market. At the same time, the company faces intense competition due to the entrance of the local producers into the market and other companies while having the best offers to their consumers. The alternation of the total prices of the raw material of oils and soaps manufactured by various chemicals and oils.

Social Factors

There are various social programs organized by the HUL that help the company expand their customer base. At the same time, the company is focusing on the production of those environmentally friendly products which are environmentally friendly. In contrast, the company focuses on those processes that have the least environmental affects during and after the product’s manufacturing. The company’s growth is based on social relations, so the HUL always organizes programs that help the unprivileged areas and introduces various earnings that help people across India be healthy. The HUL focuses on environmental hygiene, so it would help the country to be healthy. There are various programs that the company has arranged regarding environmental hygiene. Pieces of training include Lifebuoy Swasthya Chetana, Shakti Vani and others.

Technological Factors

The technological factors help the company improve the quality of the product and increase the company’s business growth. At the same time, the Hindustan Unilever company uses various technological innovations that help the upgrade system of the production. While Hindustan Unilever Limited uses CRM in their marketing, which allows the company to develop their business by building a long-term relationship with customers, including the customers, while could help the company streamline corporate performance.

Legal Factors

Legal factors are the most influential factors that affect the company’s market value because most customers prefer those companies that take legal actions and provide the product’s good quality. Hindustan Unilever limited follow the local and national laws that determine their products’ selling and manufacturing. So these legal factors are significant, which lead the company to create a marketplace in a wide range as compared to the other companies

Environmental Factors

Various issues affect that directly link with the company’s market value. Every company needs to follow natural laws and regulations for the sustenance of environmental health. In the case of HUL, the company was mostly highlighted in various news regarding the breaking of natural laws because the company produces various harmful compounds to the environment. The company was involved in selling and dumping glass materials that contain mercury. While later on, the company closes the production line of glass production, which contains mercury or harmful chemical that affects environmental health. HUL needs to maintain environmental health and follow the rules and regulations.

Issues and Solutions

There are specific issues that Hindustan Unilever Limited faced that have various effects on the company’s management. The issues include

  • Monetary Issues (Cafeteria and Transportation)
  • Non-Monetary Issues….

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