With a myriad of problems facing Unilever, Dr Martin Kunc an associate Professor at Warwick Business School gives his expert view on what may be ailing the multi-national company.

Dr Martin Kunc said: "The problem that Unilever is facing is directly related to the falling commodity prices. The emerging economies where most of Unilever’s profits are coming from are becoming weaker due to the decline in commodity prices.

"The decline in commodity prices impacts directly on the purchasing power of consumers in emerging economies. Consequently, inflation in emerging economies, which is where consumer goods companies like Unilever make most of their profits, will decline reducing Unilever’s profits further in 2016.

"While the decline of the costs of raw materials may help Unilever to reduce costs, it will not be enough to sustain profits in the face of widespread weak demand this year. Moreover, future financial problems in emerging economies will create unemployment further hurting demand and sales for Unilever. Consequently, Unilever will face a tough environment in 2016 where deflation is a real possibility to sustain sales."

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