Political and Economic Challenges of Nestle and Unilever in North Africa and Middle East - Essay Example

22% of Nestle's revenue comes from drinks such as tea and coffee, thus the largest revenue generator (Fred 2008, 184). Unilever has continued operating on the sound financial principles that saw its founding in 1929. The company incessantly makes sound profits despite fines of up to €104 million for flaunting trade ethics.

Financial productivity is the main aim of every financial establishment. For the past several decades, Unilever and Nestle companies have operated on good financial bases. On average, Nestle gets 28% of its finances from European markets, 44% of the revenues from the Americas, and 28% from Africa, Oceania, and Asia. Likewise, Unilever makes a large portion of its profits from Europe and the United States of America (Nestle 2006, 12).

Given the instability of the political environment in North Africa and the Middle East, the economic situation of the populations around the regions curtails the purchasing power of the inhabitants. A complete essay of this paper will answer the question: How do Unilever and Nestle face political and economic challenges in Middle Eastern and North African countries? It places a hypothesis that economic and political challenges in these regions have negative effects on the investment of the two companies in the regions.






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