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Assignment on Business Strategy (pdf)

   

Added on  2021-01-01

12 Pages4063 Words332 Views
BUSINESSSTRATEGY

Table of ContentsINTRODUCTION ..........................................................................................................................1TASK 1............................................................................................................................................1PESTLE Analysis to assess potential scenarios for your organisation. .....................................1Identifying the organisational capabilities by using appropriate frameworks............................3Five Forces model to analyse the competitive environment. .....................................................4SWOT analysis of Unilever........................................................................................................5TASK 2............................................................................................................................................6Evaluation of strategic directions available to Unilever.............................................................7Justification and recommendation of growth strategies..............................................................8Strategic management plan.........................................................................................................8CONCLUSION................................................................................................................................9REFERENCES..............................................................................................................................10

INTRODUCTION Business strategy comprises of long range sketch of desired direction and destination oforganisation. It can be understood as course of action which helps an organisation inachievement of its specific business objectives. It plays an major role in planning, environmentalresearch and in examining organisational strength and weaknesses. This report is based onUnilever which is a British Dutch transnational consumer goods company. Its products includefood and beverage, cleaning agent, beauty product and personal care products. This report willanalyse the impact and influence of business strategy on Unilever. It will also examine theorganisational internal environment in relation to the organisational capabilities through SWOTand organisational external environment through PESTEL analysis. For analysing competitiveenvironment porter five force model is used in this report. Then the last part of the report will useappropriate theories and concepts to analyse strategic direction. TASK 1PESTLE Analysis to assess potential scenarios for your organisation. PESTLE analysis is a tool to used by companies to take decisions by analysing howmuch external factors are affecting it. It consist of political, economical, social,technological,environmental and legal factors (Akter and et. al., 2016). Unilever UK's consumer goodcompany also apply this tool to their company for knowing about the impact of these externalfactors-:Political- this factor helps to know about the impact of government intervention in thecompany. Unilever is working in different countries and every country's political factoraffect the company. Like company had some regulatory restriction by food and drugadministration in USA but this impacted Unilever completely by putting restrictions onimports & exports for so many countries. This restrictions has reduced the sale of thecompany as well as the revenue. Economical- these factors include inflation rate, exchange rate, economic growth rate,unemployment rate etc. In case of Unilever, inflation rate of UK has been reduced whichlowers down the purchasing power of its people and now it is affecting the business ofUnilever because it has reduced the sale of the company by increasing the price of theproduct. 1

Social- this factor is about how the consumer behaviour, culture, attitude,education leveletc. affect the company. Now days people are getting much more conscious about theirbeauty and skin, they prefer to use those products which make them look good and feelgood. This social factor impacted the company and they took a decision to make productswhich is in demand by the customers & which make them satisfied. This has increasedthe demand of their product as well as the sale of the company. This factor has positiveimpact on company because it make them bring something new in its product whichattract customers more (Bansal and DesJardine, 2014). Technological- this is the factor related to technology and how it is impacting thecompany. Technology automation has a good effect on company because it is makingthem more competitive to their competitors. Unilever has higher level of automationwhich help them in supplying their products to the store very quickly. It save their timeand reduces their unwanted expenses. Technological development also help them to saletheir products online which is a good method for the company to increase its sale andrevenue. Legal- these are the factor which comprises health and safety law, employment law,copyright, patent, discrimination law etc. Unilever is working in different areas indifferent countries which make it hard for company to follow the laws. So this factor isimpacting company not in a good way. Like when they want do bring something new oradvancement into their production process they need to have a regulatory approval whichin return delay decision making as well as business growth because it takes a long timefor approval. Environmental- this factor means climatic condition, weather condition and wholesurrounding. It is affecting company in a good way because Unilever is producing safeand eco friendly products for customers. They are using this method for packaging alsoby using renewable resources in it. Company has been promoting sustainable andrenewable resources in making their products because of which it is able to increase itssale and attract more customers as people are becoming more environment friendly thesedays.2

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