PESTLE Unilever has a mission to add value to life of both its present and potential customers.

Accomplishing this mission will not take place in a vacuum, but in an environment which is very turbulence. PESTLE is macro environmental scanning tool which is very helpful to scan environment. PESTLE stands for Political, Economical, Socio-cultural, Technological, Legal, and Environmental, and it is very useful tool for develop new planning. Political/Legal Unilever, as a matter of policy, set a standard as to the way of tackling political issues. During the 1960 the political risks of emerging countries began rising. A number of countries nationalized Unilever businesses. This was a call for local equity participation in foreign firms. As a result of harmful effect of nationalization policy, in the 1970's many US companies e.g. IBM and Coca Cola left India. There was fear by foreign companies on certain issues such as knowledge leakage, loss of trademark and moral hazards issues. However Unilever became a master at delaying tactics, using its extensive contacts and goodwill in many countries to modify regulations, and generally bargain with governments. During 2008 company had increased of 4.3 % in total waste compared to 2007. This increased from 7.56 kg/tonne to 7.89 kg/tonne has been driven by three factors: (1) Legislative changes which required different methods of disposal for non-hazardous waste, (2) under capacity in effluent treatment and the planned disposal of accumulated and (3) inherited hazardous waste.

Economical Unilever market environment is becoming highly competitive especially in the Western Europe. P&G is a major competitor in Europe. More so, there are so many discounters in the European market resulting from EU free trade policy which has very bad impact on Unilever profitability. Companies are not doing new investments but doing redundancies that is why consumer markets are shrinking and peoples are losing their purchasing power. Competition in EU has grown so strong that Unilever is

facing difficulties in places like France, Netherlands. In the developing countries and the emerging economies (Asia and Africa), where there are political instability, Unilever has adopted its company strategy to ensure that its profitability drive is sustained. The effect on Unilever was a decrease in profit in 2005 compared to 2004, though there was increase in turnover. In 2004 and 2005 the profit after tax were N2.167 billion (naira) andN1.616 billion (naira) respectively, while in the turnover in 2004 and 2005 were N28.6billion (naira) and N33.4 billion (naira) respectively, which indicates increase in turnover but decrease in profit. Socio-cultural As Unilever is one of the largest FMCG Company in the world. Millions of people enjoy the products of the company every day around the globe. It means company have huge impact on the people life style. It is a responsibility that company consider very seriously.

Company invested 91 Million Euros in community programme worldwide in 2008.

120 Million People reached by Lifebuoy brand's hand washing programme in India since 2002.

Four million children are reached by Signal/ Pepsodent/ CloseUp/ tooth paste brands through school based oral health programme in 2008.

Three quarters of the food products in our R&D pipeline bring specific nutritional or health benefits.

Technological Unilever has been spending on IT to improve its business especially in the area of e-business so as to improve brands image and quality of its products. Unilever know that failure to provide sufficient funding to develop new products, lack of technical capability in the R&D function and quickly roll out the products may adversely impact its cash flow, turnover, profit and profit margins and affect reputation. High level of automation is one of the critical success factors of Unilever that differentiates then from their competitors and serves as a source of

competitive advantage. Today, Unilever is trying to minimize cost through IT efficiencies at global level. In addition, Unilever Technology Venture works in collaboration with Unilever R&D group to help Unilever meet consumers needs. Area of concern is genomics, advanced bioscience, advanced materials science and nanotechnology.

Environmental Growing awareness about climate change is affecting companies very hardly and it can be create new markets or destroy existing markets. It includes:

Climate change Diseases Weather

Now a day's climate change is big issue for companies. People like to buy the products which will not be harmful for environment. And Unilever are working towards it. Unilever depends on the natural environment for supplies of raw materials and water. Sustainability is a business issue. In 2008 we piloted a way to measure our product categories against four indicators covering water waste, sustainable sourcing and green house gas emission. This data will inform future development and innovation across our categories.

39% reduction in CO2 from energy 1995-2008. 63% reduction in water 1995-2008. 68 % reduction in total wastage 1995-2008.