MAN7064 International Operations and Project Management Assignment Sample
Introduction
Operation management of an organisation is addressed as a strategic business planning which helps an organization to remain sustainable in this competitive market. Supply chain management refers to organised organisational operation which provides significant impacts in a business environment through achieving organisational aspects. On the other hand, project management of an organisation focuses on further improvement that needs to be achieved for obtaining efficient performance in the international business market. Application of different theories, models and approaches of supply chain management helps an organization to implement their strategic planning for better customer retention to achieve more profitability. This study has shown supply chain management operation of Unilever and effectiveness of project management in order to expand business in different regions.
Overview of company
Unilever is addressed as one of the most successful multinational corporations selling consumer goods involving beverages, foods, personal care products. This company has its headquarter in UK and Unilever holds more than 400 brands and this company has got success by supplying their goods fast-forwarding. Their supply chain management operation helps them to achieve their profit margin and in 2020 they have gained 16.4% of operating profit for their effective supply chain management (Unilever, 2020). They operate their business in more than 100 countries across the world and their further aim to expand their business network in Africa as they have faced trouble in retailing goods for floods.
Supply Chain Flow chart of Unilever
Supply chain management process workflows represent the detailed actions for achieving end to end product delivery. Unilever followed a centralized supply chain management process to operate their business globally.
Process input
Supply management process inputs include branding, social group and marketing mix. Unilever promotes their brands by differentiating their products and adding unique features in their projects. In 2016, Unilever spent around $42.9 billion for the total branding portfolio and it has been reported that their value of the brand nearly doubled compared to its competitor such as Kraft Heinz (Unilever, 2020). Their idea of concept testing at an earlier stage of the campaign gives them valuable insight before production. Besides that, using consumer insights for brand innovation as they believe that consumers are the main source of profitability. In their marketing mix, they determine the price of their product by understanding customer segments. They promote their product through social media, online advertising and sales campaigning. In addition to this, they successfully build an effective relationship with community and society which provides them valuable insight in their supply chain management process.
Process output
Supply chain management process outputs include purchase behaviour of consumers involvement of consumers and evaluation (Maylor and Turner, 2017). Unilever follows five levers for understanding consumer behaviour that are understanding barriers of customers. Customers may face issues for purchasing goods and fir this Unilever takes strategy for purchasing their product with minimum prices. They use easy tactics for convincing their customers to buy their products and increase their customer satisfaction as well as customer retention. They make their product more desirable and want to attract more customers and provide customers with an effective discount rate which helps them to remain sustainable in the business market. They want to make their product a habit of customers and by which they can achieve their financial objective. For instance, their personal care beauty product has become a habit of their consumer. In a supply chain management process, it is essential to understand customers behaviour for increasing profitability and competition.
Core activities
The core activities of a supply chain management process are planning of supply, planning of production, planning of inventory, planning of capacity and planning of distribution (Fan and Stevenson, 2018). In Unilever supply planning there exists near about 48000 suppliers which is addressed as an agile market of their products. In their planning of production, they have around 3327 production lines and their main motive is to produce bulk levels of product (Unilever, 2020). In addition to this, they use a cost reduction strategy in their production planning to sustain more profit. They manage their inventory by maintaining an optimal level of inventory management. Unilever applies perpetual methods and periodic methods to manage their whole inventory system. They have around 580 copacker which maintain their capacity management. In order to build an effective distribution channel, they operate their business in more than 100 countries and they have 30 million outlets across the globe (Unilever, 2021). They make around 5.3 million shipments per year for successful delivery.
Activity timings
Unilever maintains an excellent time management strategy in their supply chain management process. They consume minimum times in their productivity. Using advanced level technology including Artificial intelligence and Robotics to their supply chain management reduces timing of delivering information. Online access to database saves minimum time to operate supply chain information
Processing
Unilever ensures adequate resources and develops processes for supporting production. Unilever applied Robotics and mechanism in their processing to maximize operational efficiency. The automation process of production, ordering, supplying, updating and scheduling prevent additional cost (Iqbal, 2020). Since, Unilever is concerned about their cost structure, using this process has helped to reduce the extra burden of cost.
Labour requirement
Operation management of Unilever is concerned about sufficient human resources in their supply chain management process for supporting business operations. Supply chain management directly influences their human resources capacity to increase performance of financial resources and establish better communication with consumers.
Application of conventional quality control and improvement strategies
In terms of supply of products, services, production, delay, reliability, operational management shows quality of products in every step to ensure better performance of supply chain management. In order to implement effective quality control management, it is essential to integrate productivity with supply chain management procedure.
Quality control management of Unilever
operation manager of Unilever deals with satisfying customers by providing good quality of products. This company implements a standard of quality in the operational process to meet daily expectations of customers. This quality control derives from intense market research about Unilever as well as conventions in the customers goods industry (Ortikmirzaevich, 2017). This company investigates increased issues in their production houses and tries to mitigate the risk to increase operational performance. For instance, this company uses thresholds to detect production related issues to maintain high productivity.
Improvement strategies of Unilever
Unilever follows Porter’s chain as a generic improvement strategy which helps them to create a competitive advantage by satisfying customers’ expectations. In this sense, Unilever uses product differentiation strategy to emphasize features of their product to stand out against competitors. For instance, Unilever’s personal care products such as doves is a mild soap and it does not have harsh skin and its affordability makes it a superior product than others. They implement this strategy for developing their product to sustain a high profit margin and follow their mission statement. In this respect, Unilever’s mission statement is based on consumers, goods and products and their main objective is to satisfy their customers.
On the other hand, Unilever applies intensive growth strategies such as market penetration strategy, product development strategy to improve their operational management. Market penetration is identified as a primary intensive growth strategy which helps to increase sales volume for improving revenue and growth opportunities (Adamenko et al. 2018). In the current market situation. Besides that, they implement product development strategy as a secondary intensive growth strategy by introducing their new products in the market to satisfy their customers. New versions of Unilever’s personal care maintain their market price of shares and sometimes it increases market share. Product development strategy can be implemented through product differentiation and integrating this strategy in their marketing mix.
Relevant theories, concepts and models
Operation management of Unilever is responsible for maintaining a high level of productivity across the global market. Operation management implements some certain operational theory in their practical field to increase operational activity and production.
Business Process Management (BPM)
BPM is addressed as a continuous action of reviewing, optimising, analysing, automating and improving processes which helps to design and model sustainable business processes. This business princess includes productivity monitoring success, increasing operational efficiencies. Unilever streamlines their business process by using global SAP software which helps them to monitor functionality of supply chain management process and business process.
Six Sigma
Six sigma model of operational management is identified as an essential tool which is used to reduce error in the manufacturing process. It involves functionality of six tools that is to define, analyse, measure, improve, monitor and control a process. Unilever implements six sigma to reduce cost and improve product quality and to ensure better customer satisfaction
Behavioural Operation Management
Behavioural operational management is an integrated process that brings together social science, psychology, economics and sociology to show manager’s efficiency for making a decision. Unilever follows these concepts of theory to measure efficiency of management for making a decision. At the time of the Corona outbreak when the global economy was suffering from a crisis management of Unilever had cut off their product prices to sustain in this market. In this particular, efficiency of making a decision by management is shown at their operating profit margin as they have successfully achieved operating profit of € 9.4 billion.
Supply chain management
Supply chain management involves productivity of a goods to delivery of these goods. The whole process analyses operational efficiency of an organisation. Unilever has an excellent supply chain operational management which supplies their goods to more than 100 countries with numerous shipments in a year. Through this supply chain management system, Unilever achieves their success by satisfying their consumers.
Operations and supply chain management initiatives and techniques that can be considered in the development of an operations strategy in a global environment
Critical capacity analysis of the process/supply chain
In order to achieve best operational performance in an organisation, it is essential to create an optimized capacity for balancing flow between supply and demand with minimized waste and cost. In addition, capacity planning promotes a systemic approach of considering requirements for resources to achieve a projected output. Unilever maintains their capacity of productivity by understanding demands of market segments. On special occasions like Diwali, new year, easter. Christmas, they increase their capacity of production to sustain more profit. In addition, Unilever management regularly evaluates their capacity of production as well as warehouse capacity to keep their business productive.
Capacity modelling and advance scheduling system helps Unilever to monitor and evaluate operation of capacity management. Unilever is involved to perform regularly to maintain and increase their efficiency. Unilever organises training such as six sigma training programs for their employee to understand capacity management for increased performance.
Strategies used to address expected customer demand
Strategies to understand customers’ expectations need to integrate marketing strategies such as product development, distribution strategy, marketing communication strategy. Unilever’s intense growth strategy of product development is involved to address customers’ demands. Since Unilever’s objective is to improve livelihood of people in their supply chain, they thoroughly research market to increase their sales volume. In this respect, they implement a market development strategy to understand the customer segment which helps them to create life time value for customers. Unilever implements product diversification strategy to satisfy customers’ expectations. Management of Unilever believes that an agile variety of products helps this organisation to maintain customer retention. Acquisition of personal care products of Sara Lee corporation in 2010 has helped them to bring new customers. Introducing new products and brands also helps to understand customers’ demand as it increases sales volume. Unilever successfully sustained aggressive sales of their product in the USA and Canada by integrating their product differentiation and understanding market segment strategy. This business strategy helps this organisation to gain competitive advantage and grow business with sustainability.
Metrics to measure the supply chains performance
In order to evaluate performance of supply chain management of an organisation, it is essential to go through this sustainability and strategic report. As per strategic report of Unilever, they have achieved immense success for their effective supply management chain
Increased sales growth
Increased sales growth rate is one of the key performance indicators (KPI) od supply chain management as it signifies effectiveness of supply chain management system. Unilever has their underlying sales growth of 1.9% in 2020, whereas in 2019 their underlying sales growth was 2.9% and in 2018 it was 3.2% (Unilever, 2020). It indicates a declining rate of sale growth and minimum performance of supply chain management Unilever. However, it is expected that in 2021 they will fulfil their desired growth target through an effective supply chain.
Increased operating profit margin
Performance of supply chain management can be measured by comparing operating profit margin for past years. In 2020, they have achieved 18.5% operating margin whereas in 2019 operating margin of 19.1% indicates declining performance of supply chain management of Unilever (Unilever, 2020). In addition, this company has sustained net operating profit margin of 16.1% of total sales volume and in 2019 their net operating margin was 16.8% which indicates declining performance of this company.
Ways in which changed process may improve them
In order to improve productivity and supply chain management operation, organisations should bring innovation to their operation. Unilever has integrated their supply chain management withs its new technology and innovation process at regional and global level. The r& D department of this company constantly tries to improve customers’ experience for an effective supply chain. Automation of ordering, monitoring, and controlling business processes can help management to increase operational performance (Payne et al. 2019). It is important to ensure that Unilever employees have an ability to adopt new technology in their supply management chain. For this reason, proper training should be given to employees to increase their operational efficiencies.
Determine and apply fundamental project management principles in the organisation, design and delivery of international projects
In order to expand business networks in Africa, Unilever project management team need to follow some certain project management principles.
Project structure
The project needs to determine its processes of implementation, procedures and tools (Kerzner, 2017). For expanding business in Africa, Unilever needs to analyse their financial resources and cost for implementation.
Project Objective and outcomes
Implementing a project should determine its objective and possible outcomes for measuring performance of the project management team (Aragonés et al. 2017). In this case, the project objective of Universe is to extend their business network to increase their sales volume and sustain more profitability. Possible outcomes of this project are, it can increase more opportunities for Unilever in this global business market.
Risk in implementation
Project management has some certain risk in implementation such as Unilever may feel financially disrupted for this project execution, in addition to this, if the project management team cannot perfectly analyse the project plan and for this reason inefficiency of project team can be a cause of failure of this project (Dalcher, 2019).
Project rationale
The impact of expanding business in Africa will help to sustain more sales volume of Unilever. Since Unilever is facing issues of their supply chain management system which causes declining sales growth, implementation of this project can help to increases operational performance of this organization
Project plan
| Project Plan | ||||
| Project Name: Expanding Business Network in Africa | Project Start Date: 17 April | |||
| Project Manager: Abby Ryan | Project End date: 5th June | |||
| Duration of Project: 51 days | ||||
| Project Initiation | Status | Duration | ||
| Research | Done | 11 days | ||
| planning | Done | |||
| Guideline | Done | |||
| stakeholders | Done | |||
| Project Planning | Done | |||
| Scope and setting Goals | Done | |||
| Budget Planning | Done | 10 Days | ||
| Estimated cost of this Project | Amount | Done | ||
| warehouse rent | 5000 | |||
| cost of production | 450000 | |||
| Cost of sales | 540000 | |||
| Total cost | 995000 | |||
| Estimated sales | 1500000 | |||
| Profit | 505000 | |||
| 9 Project execution | On hold | 30 Days | ||
| Status and tracking | On hold | |||
| KPI | On hold | |||
| Monitoring | On hold | |||
| Forecasting | On hold | |||
| Project Update | On hold | |||
| End of Project | On hold | |||
This above table indicates whole project management for Unilever for expanding business network in Africa which indicates Profit of this project worth £ 5,05,000 and estimated total cost of this project is 9,95,000. It expected that this project will be taking time of 51days to end and Unilever would beneficial for implementing this project
Addressing relevant issues
Operation management and project management has some certain issues which is need to recovered to increase operational efficiency of Unilever
Customer demands and process capacity management issues
In the production industry matching capacity with demand is addressed as a big issue which affects operational management performance (Slack, 2018). Unilever has faced these issues for the past several years and in results they have experienced a declining rate of sales margin. Efficiency of an operation management can be identified by successfully determining capacity of production by understanding customer’s demand. Excess rate of production may cause unsold stock of products. Addition to this, ineffective capacity management leads to inferior products, loss of stock, ineffective warehouse management as well as ineffective inventory management.
Issues of Project management tools
In order to implement a project plan, the project manager and project management team should need to be very efficient. Implementation of the project needs accurate market research, budget planning, financial resources requirement and human resources requirement. Irrelevant market research and planning leads to a disruption to Unilever company and it can affect operational profit margin of this company
Quality management issues
Unilever management can face their quality management issues in their operation and it may cause customer dissatisfaction. Quality of a product depends on the quality of raw material and Unilever uses high quality raw material for producing their goods. This company has not fixed this issue but for future security, it is important to assure using high quality of raw material to avoid customers dissatisfaction
Conclusion
From this above study, it can be concluded that Unilever has an effective supply management operation which helps them to remain sustain in competition. Implementing several theories of operational management such as business process management, six sigma, agile production they have successfully achieved their desired profit margin. In addition, they are concerned about their customers’ needs and demand to satisfy customers they effectively manage their capacity of production. In order to improve their operational management, they implement strategies like market penetration, product differentiation, product development strategy. Key performance indicators of supply chain management have represented that they have a declining rate of performance which can threaten their market sustainability in future. Furthermore, implementing new projects for expanding business in Africa would be beneficial for Unilever.
Reference List
Adamenko, M., Pasichnyk, N. and Polishchuk, I., (2018) Conceptual framework of innovative capacity management of enterprise personnel. Scientific Journal of Polonia University, 27(2), pp.72-78.
Aragonés-Beltrán, P., García-Melón, M. and Montesinos-Valera, J., (2017.) How to assess stakeholders’ influence in project management? A proposal based on the Analytic Network Process. International journal of project management, 35(3), pp.451-462.
Dalcher, D. Editor (2019), Leading the Project Revolution: Reframing the Human Dynamics of Successful Projects, New York: Routledge
Fan, Y. and Stevenson, M., (2018). A review of supply chain risk management: definition, theory, and research agenda. International Journal of Physical Distribution & Logistics Management.
Iqbal, T., (2020). The effect of operations management practices on the competitive advantages of SMEs: A mediating role of supply chain management practices. Uncertain Supply Chain Management, 8(4), pp.649-662.
Kerzner, H., (2017). Project management: a systems approach to planning, scheduling, and controlling. John Wiley & Sons.
Maylor, H. and Turner, N., (2017). Understand, reduce, respond: project complexity management theory and practice. International Journal of Operations & Production Management.
Ortikmirzaevich, T.B., (2017). Principles and functions of management of production capacity. Journal of process management. New technologies, 5(4), pp.61-68.
Payne, J., Roden, E., and Simister, S. J. (2019), Managing Knowledge in Project Environments, NewYork: Routledge
Slack, N. (2018) Operations and Process Management: Principles and Practice for Strategic Impact,5th Ed, Harlow: Pearson Education Limited
Unilever, (2020). “About Annual Report of 2020”. Available at: https://www.unilever.com/Images/annual-report-and-accounts-2020_tcm244-559824_en.pdf [ Accessed on 17th April, 2021]
Unilever, (2020). “About key performance Indicator of supply chain management of Unilever” https://www.unilever.com/investor-relations/annual-report-and-accounts/[ Accessed on 17th April, 2021]
Unilever, (2021). “About Marketing of Unilever.” Available at: https://www.unilever.com/planet-and-society/responsible-business/advertising-and-marketing/[ Accessed on 17th April, 2021]
Unilever, (2021). “About Products of Unilever” Available at: https://www.unilever.com/brands/[Accessed on 17th April, 2021]
………………………………………………………………………………………………………………………..
Know more about UniqueSubmission’s other writing services:
