Global competitiveness of the company Unilever in Pakistan Research Paper

Global competitiveness of the company Unilever in Pakistan - Research Paper Example The government has developed the policies which could keep the costs of production low thereby, providing benefits to private sector. However, legal framework of Pakistan is very weak because of ineffective policies and weak regulatory structures (Asian Development Bank). Infrastructure Resources in Pakistan are limited and the country’s infrastructure needs are massive. It is because of the limited fiscal space and huge gaps in capacity of public sector to develop infrastructure (IPDF). With the increasing multinational companies, a significant development has been observed. However, infrastructure ratings are mixed such as low rank in electric supply and telephone lines and better rank on transport and railways infrastructure (Asian Development Bank). Macro-economy Table shows that GDP growth of Pakistan is 4.1 percent in 2010 as compared to 2.1 percent in 2009. In 2007 the GDP growth rate was 7.0 percent and in next few years it declined significantly which reflects the imp act of global financial crisis. Exchange rate of Pakistan Rupee is Rs.86.21/1$ in 2010 as compared to Rs.60.16/1$ in 2005. It means that Pakistani Rupee has declined significantly against dollar within a period of five years. Inflation has increased from 9.3 percent in 2005 to 12.90 percent in 2010 (Board of Investment: Government of Pakistan). Pakistan economy has faced two major natural disasters in the past few years including massive flooding and earthquake. Because of poor infrastructure and construction, such disasters actually hurt the Pakistan economy. According to CEO, Ehsan Ali Malik, full-year sales target of Unilever declined by 7 percent in Pakistan because of floods (Sharm). Table: Economic Indicators of Pakistan Source:... Global competitiveness of the company "Unilever" in Pakistan Pakistan economy is facing significant challenges because of security concerns and macroeconomic deterioration. Since private sector plays a very critical role in supporting the overall economy therefore, Pakistani government supports and attracts private sector investments. The government has developed the policies which could keep the costs of production low thereby, providing benefits to private sector. However, legal framework of Pakistan is very weak because of ineffective policies and weak regulatory structures. Resources in Pakistan are limited and the country’s infrastructure needs are massive. It is because of the limited fiscal space and huge gaps in capacity of public sector to develop infrastructure (IPDF). With the increasing multinational companies, a significant development has been observed. However, infrastructure ratings are mixed such as low rank in electric supply and telephone lines and better rank on transport and railways infrastructure. Unilever has been pursuing very aggressive marketing strategies. Since company has developed huge range of products and most of the customers are not even aware of the products which belong to company. Therefore, company should develop advertising strategies that promote company image with products and sales should be promoted by attracting the customers to believe in Unilever.