MAN7131 International Strategic Management Sample
1. Introduction
Slide 1
- The study describes the organizational strategy of Unilever company and its present strategic management to keep its brand image.
- The study also illustrates strategic management models to formulate Unilever’s organizational strategy and direction.
- Unilever’s strategic objectives are to lower its environmental footprint and improve people’s health and well-being with its products and services.
- N.
The organizational strategy of Unilever helps to be proactive and build a sense of direction to maintain its workforce better. This is important to enhance operational efficiency, market share, and overall profitability. The study also recommends accurate and effective management strategies to mitigate organizational issues and enhance its competitiveness.
2. Strategic management models
Slide 2
- SWOT Analysis
| Strengths | ● Unilever serves its products to 190 countries having a “diversified product range”.
● Unilever’s “flexible pricing and expertise in distribution channels” help to reach out to customers easily (Alvarez-Aros et al. 2022). |
| Weaknesses | ● Unilever’s competitors like P&G and Nestle create a challenge and build strong competition in the market. |
| Opportunities | ● “Newly Affluent Trillion Dollar Consumers” is a good opportunity for Unilever to earn a good profit from the Chinese market (Fuchs et al. 2022). |
| Threats | ● Economic crisis globally is a major problem for Unilever and many FMCG companies create alternatives for consumers. |
Slide 3
Porter’s Value Chain Analysis
| Outbound logistics | ● On-time Delivery
● Accuracy in inventory management ● Quick response from Unilever’s customer service (Kuo and Means, 2022). |
| Operations | ● Good maintenance of product quality
● Customer satisfaction ● Lowering customers’ complaints |
| Marketing and Sales | ● Pricing
● Innovative business approaches ● Fulfillment of customers’ needs |
| Service | ● 24/7 service
● Quick response in an emergency ● Proper training and problem solutions (Lashitew et al. 2022). |
Slide 4
FIMO
- Performance framework FIMO provides “Finance, Marketing, and Operations” of Unilever. FIMO analysis helps to maintain the “revenue, profitability, costs, profit margin, cash flow, assets & resources, and borrowing” of Unilever. Unilever’s global revenue in 2021 amounted to 52.44 billion Euros and in 2020 it lowered due to the pandemic (Statista.com, 2022).
Figure 1: Unilever’s Global Revenue
(Source: Statista.com, 2022)
- Unilever earned a profit of 8.7 billion Euros in 2021, and in 2020 the profit was 8.3 billion.
- N.
The Marketing strategy of Unilever is “A brand with a purpose” and broad differentiation helps to earn a competitive advantage. “Finance, Marketing, and Operations” help Unilever to make it a manufacturer of “fast-moving consumer goods”.
3. Strategic management options
Slide 5
- Leadership in Unilever is a key strategy to implement an accurate strategic direction for building a good organizational culture.
- This helps to control organizational activities, build innovation, and brand awareness, and ensure Unilever’s ethical practices (Obel and Kallehave, 2022).
- The corporate structure is a better option in strategic management and it helps Unilever to reduce losses, maximize profit and build responsibility.
SN-
This provides a pursuit to Unilever for achieving growth strategy and creating a greater clarification in production to engage more customers. This helps to maintain replacement, employee training, production, and any other business activities.
Slide 6
- Strategy control is also a better option to achieve Unilever’s Primary goals and objectives.
- Control systems build management by enhancing the ability to ensure accurate3 decisions and make a better execution of work (Skokov, 2022).
- Organizational Culture is important to maintain its customers’ “values, norms, beliefs and attitudes” for building a better interaction.
- N.
Unilever has a good organizational culture, which provides stronger tools to build coordination and product development to ensure safety. Strategic management helps Unilever to guide business relationships, make decisions and develop a better identity. Management of Unilever provides better customer service to solve customers’ queries.
4. Future direction and present strategic options
Slide 7
- Unilever focuses on “Product innovation for health” to develop its market and ensure customers’ “health and safety” (Sousa et al. 2022).
- “Social and environmental responsibility” is also a good initiative by Unilever to lower environmental issues.
- Unilever targets to make 100% recyclable products by 2025 through compostable packaging.
S.N
Unilever has invested €1 billion in the “climate and Nature Fund ” and it targets to create zero emissions by 2039 for its all products. Unilever paid 5.1 billion Euro to its 173,000 employees in 2013 and it gained a good profit in that year.
Slide 8
- Flexible pricing makes Unilever more acceptable to people and its approach to being eco-friendly is a good initiative (Wang et al. 2022).
- Technological advancement in Unilever helps to make a commitment to lower “greenhouse gases by 50% by 2020”.
- Unilever’s reputed brand, communication channels, and products help to expand its business in 190 countries.
S.N
Marketing and advertising channels in Unilever are powerful sources to expand its business. Innovation, unique packaging, and acquisition in Unilever have helped to reach out to more customers in the global market.
Slide 9
- “Work-life balance, CEO Approval and % Recommend to a friend” are 3 key areas Unilever has scored high (Yang and Basile, 2022).
- Unilever aims to build sustainability in the environment through “increasing local biodiversity, restoring soil health, and preserving water conservation and access”.
- Unilever uses a global strategy in its marketing and it helps to build a strong competitive and maintain its supply chain in the market. Unilever provides around 400 brands and has many global missions in the future.
SN
Unilever first took the “Sustainable Living Plan” in November 2010 and by 2023 it aims to provide a “deforestation-free supply chain”. Sustainability in Unilever helps to meet customers’ needs and earn a good rank in a global ranking.
5. Conclusion
Slide 10
- The study concludes with strategic management options and the future direction of Unilever to provide priorities in its business.
- Strategic management helps Unilever to identify, prioritize, and explore new opportunities for business growth in the future.
- The organizational strategy mainly focuses on fulfilling Unilever’s goals and objectives.
- N.
The organizational strategy of Unilever helps to analyze the current position, strengths and weaknesses, and business environment. This is important to enhance organizational productivity, build a good brand image and maximize overall profit. SWOT analysis, “Porter’s value chain”, and FIMO can help Unilever to develop its business and mitigate problems.
References
Alvarez-Aros, E., Bernal-Torres, C. And Tovar, Y.S., 2022. EXTERNAL COLLABORATION OF OPEN INNOVATION AND FINANCIAL PERFORMANCE OF SMES IN TAMAULIPAS, MEXICO. Revista de Administração de Empresas, 62(3), pp. 1-21.
Fuchs, S., Baricevic, D. And Vukojac, M., 2022. A STRATEGIC APPROACH TO MERGING LARGE CORPORATIONS THROUGH THE EFFICIENCY AND EFFECTIVENESS OF THEIR BUSINESS IN WORLD PRACTICE. UTMS Journal of Economics, 13(1), pp. 76-97.
Kuo, S.S. And Means, B., 2022. Climate Change Compliance. Iowa Law Review, 107(5), pp. 2135-2181.
Lashitew, A.A., Narayan, S., Rosca, E. And Bals, L., 2022. Creating Social Value for the ‘Base of the Pyramid’: An Integrative Review and Research Agenda: JBE. Journal of Business Ethics, 178(2), pp. 445-466.
Obel, B. And Kallehave, P., 2022. Designing a sustainable organization: the four I’s framework. Journal of Organization Design, 11(2), pp. 65-76.
Skokov, R.Y., 2022. Behavioral design practical application: product policy, public opinion. IOP Conference Series.Earth and Environmental Science, 1069(1), pp. 012044.
Sousa, F.C., Monteiro, I.P. And Machado, C., 2022. GROUP FACILITATION TRAINING FOR MANAGERS IN THE HOSPITALITY INDUSTRY. International Journal of Organizational Innovation (Online), 14(4), pp. 205-227.
Wang, Y., Song, J., Mitchell, B., Lee, S.Y. And Chai, S., 2022. Engaging Individuals in CSR Activities: The Role of Person-Environment Fit and Social Capital in Corporate Online CSR Communities. E – Service Journal, 13(3), pp. 1-29,57-58.
Yang, J. And Basile, K., 2022. Communicating Corporate Social Responsibility: External Stakeholder Involvement, Productivity and Firm Performance: JBE. Journal of Business Ethics, 178(2), pp. 501-517.
Website
Statista.com, 2022, Revenue of Unilever Group worldwide from 2007 to 2021, Available at; https://www.statista.com/statistics/269190/global-revenue-of-the-unilever-group-since-2007/ [Accessed on 06/09/2022]
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