The document discusses the general environment and competitive landscape of Nestle Pakistan and its competitor Unilever Pakistan. It defines the general environment as the external factors that influence companies such as demographic, economic, political, social, technological, and global conditions. It then analyzes each of these factors in detail. It also provides an overview of Nestle and Unilever's histories, operations, strategies, SWOT analyses, and competitive positions relative to one another. The document serves as an analysis of the macro environment in which these two major consumer goods companies operate in Pakistan.

1. Nestlé Pakistan Company Limited
Unilever Company Pakistan Limited

2. General Environment
 The General Environment Covers All The External
Activities Of A company As Well As It Focuses On
The Competitor .
 The External Environment: Opportunities, Threats,
Industry Competition, and Competitor Analysis .
 General Environment Industry Environment Threat of
new entrants Power of suppliers Power of buyers
Product substitutes Intensity of rivalry Competitor
Environment Economic Political/Legal Technological
Global Demographic Socio-cultural.

3.  General Environment Influences the industry and
firms inside the industry Firms can not directly control
these but collect information and formulate strategies.
 Six Segments
1. Demographic
2. Economic
3. Political/legal
4. Socio- cultural
5. Technological
6. Global

4. 1-Demographic Elements:
 Population size Age Structure Geographic distribution
Environmental Changes Social Changes
 Double income, consumerism, superior- higher
education for kids, working women, less time for
household work, health consciousness, healthy food,
vacations.
 Subway, Pizza Hut, Five Star hotels, Apollo Executive
Health Check, SIUT

5.  Demographical Changes
 People live longer - Old age requirements, homes,
security, superior health services, self reliant, gadgets,
entertainment to keep busy meaningfully, to learn new
hobbies without physical demands, will remain active
and healthy- find a product or service, psychological
demand - sense of belongingness- counseling,
spending of time
 Medical insurance

6. 2-Economic Elements:
 Inflation rate
 Interest rates
 Trade deficit or surplus
 Personal savings rate
 Business savings rates
 Gross domestic product
 Budget deficit or surplus

7. 3-Political/Legal Elements
 Laws
 Taxation
 Monopolies
 Political pluralism
 Political philosophy
 Judicial System

8. 4- Socio - Cultural Elements
 Women in Work
 Work force diversity
 Cultural values
 Attitude towards life and quality of life and products
 Education
 Materialist aspects

9. 5-Technological Elements
 Product Innovation
 R & D spending
 Quick diffusion of technology
 Applications of knowledge
 Focus of private and government-supported R&D
expenditures
 New communication technologies
 Product Obsolescence

10. 6-Global Elements
 For-ex
 Treaties
 WTO
 UN
 Trade Barriers

11. Nestlé Pakistan

12. Environmental Sustainability
 Vision for Nestlé
 Following Nestlé’s global commitment, Nestlé
Pakistan encourage environment-friendly business
activities. Endeavoring to achieve the least possible
environmental impact throughout its operational
stages by complying with environment laws and
regulations.

13.  Mission for Society
 The success of our business is only possible if the
society is prosperous. To achieve prosperity, Nestlé
follows principles of ‘improved environmental
performance’ and ‘safety and health of employees’.
This is assured throughout the value chain, from farm
to fork.

14.  Ambition for Environment
 Nestlé is working towards increased environmental
sustainability by following eco-friendly practices,
starting from the stage of operational planning. Trying
to increase production while minimizing resource
consumption, waste and emissions. Factories of Nestlé
Pakistan are in full conformance with the
requirements of ISO 9001, 14001, OHSAS 18001, FSSC
22000 & NQMS. All industrial units in Pakistan are
fitted with testing and monitoring equipment and
services for waste and air emissions.

15.  Solar and Bio-Gas Energy
 Pakistan is experiencing an energy crisis; there is short fall
due to almost a 50% reduction in power generation
capacity of dams. Nestlé Pakistan has taken a number of
measures to find alternative energy resources for its
operations.
 Solar Energy (Electricity Generation and Water Heaters)
Nestlé Pakistan has a huge set up of Milk Collection across
Punjab and Sind. Collected milk is chilled at chillers
installed in the field. The shortfall of energy, frequent
interruptions and cutting off of power supply can affect the
quality of the milk so backup generators have been
provided at each milk collection centre.

16. Competitors

17. Nestlé Vs. Unilever
 History
 Nestlé and Unilever had completely different starts. –
Nestlé (1866): one man’s idea! – Unilever (1930):
Merger between two existing companies active in two
different fields, but with same raw materials • Both
companies grew through numerous acquisitions
(Nestlé under his brand as family brand, Unilever with
individual brands)

18.  70s Nestle acquires first non-food companies • 80s
Unilever: sleeping giant, Nestlé Internal adjustments
and diversifications . 90s new markets in Eastern
Europe and China. End of 90s / 2000: Unilever: total
restructuring: path to growth, radical brand cutting,
Nestlé towards Health and Wellness .Today both
multinational companies operating worldwide

19. Company / Competitive Fact sheet
Nestlé Unilever
Position in
the world
The world largest food
manufacturer
Supplier of consumer goods in
food (nr. 5), home and personal
care markets
Presence In ca 200 countries world wide
Headquarters in Vevey,
Switzerland
In ca 160 countries world wide
Headquarters: For food Unilever
Plc – UK-London For home and
personal care Unilever NV – The
Netherlands - Rotterdam
Workforce 253.000 employees 234.000 employees
Activities • Food - Beverages
• Pet care
• Pharmaceuticals
• Food – Hot Beverages
• Home Care
• Personal care

20. Nestlé Unilever
Divisions Beverages, milk products, nutrition
and ice-cream, prepared dishes,
cooking aids, chocolate,
confectionary, biscuits, pet care,
food services, Alcon and
pharmaceutical and cosmetics joint
ventures;
Food and home (culinary
products, frozen foods, Ice-cream,
Tea-based beverages, Spreads and
cooking products, household
care, Laundry) Personal care
(Deodorants, hair care, personal
w ash, oral care and fragrances)
Mission/ Vision The Company's priority is to bring
the best and most relevant products
to people, wherever they are,
whatever their needs, throughout
their lives. : Goo d Food – Good
Life!
Unilever's mission is to add
vitality to life. We meet the
everyday needs for nutrition, h
hygiene, and personal care with
brands that help people feel good,
look good and get more out o f
life.
Strategy Adapt products to local tastes •
“target 2004+”: Low manufacturing
costs • “Globe” – technological
platform for the group / E-
marketing • Become a food, n
nutrition, health and wellness
company
• Global brand s that meet local
needs • Completion o f Path to
Growth strategy (sales growth of
3-5 % ) • Vitality at the core of
mission • Make greater use of
corporate brand

21. Nestle Strategy

22. Unilever strategy

23. Unilever SWOT Analysis
Strengths
 Strong corporate culture
 Government and NGO relations
 Supply chain
Weaknesses
 Branding
 Distance to the consumer

24. Opportunities
 Responding to the global issues -sustainable initiatives
 Brand equity
 Consumer safety
Threats
 Price-war/ retailers power
 Private Label Competition
 EU approval procedure
 Weather

25. Nestlé SWOT Analysis
Strengths
 Corporate Brand
 Fragmented Suppliers
 Size of Operations
 Cash Generation
Weaknesses
 For-ex impact
 Commodity based
 Potential conflict between health & wellness image
and selling sweets

26. Opportunities
 Functional Foods in Ready Meals
 Joint Ventures in Strategic Areas
 Asian Market
Threats
 Corporate Brand
 Private Label Competition
 Energy and distribution costs

27. Sources
Here below are some of the sources which I have used
during this assessment of General Environment of
both the companies:
I. www.nestle.com
II. www.unilever.com
III. www.economist.com
IV. www.google.com

28. By: Tarique Jan Soomro
 Assignment Topic: General Environment with respect
to the Multi National Company(MNC). And its
competitor
 Department: Business Administration
 Class: BBA-II (B) 3rd Semester
 Roll No: 14-381
 Teacher/Instructor: Sir Asif Channa