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Analysis of Business Strategy

   

Added on  2019-12-03

35 Pages13261 Words462 Views
Business Strategy

Table of ContentsIntroduction..........................................................................................................................................3TASK 1.................................................................................................................................................41.1 The business mission, vision, goals and objectives as well as the core competencies of chooseorganisation......................................................................................................................................41.2 Analyse the factors that have to be considered when formulating a strategic plan of the chosen organisation..........................................................................................................................41.3 Using your chosen organisation, evaluate the effectiveness of at least two techniques used....5when developing strategic business plans for your organisation, for example, the Ansoff’s Matrix.........................................................................................................................................................5and BCG Matrix...............................................................................................................................5TASK 2.................................................................................................................................................72.1 Analyse the current strategic positioning of your chosen organisation by conducting an organisational audit (using SWOT and Product positioning)..........................................................72.3 Assess the significance of stakeholders’ analysis when formulating a new strategy for your...9chosen organisation:.........................................................................................................................92.4 Present the new strategy for your chosen business based on organisational audit and...........10stakeholders’ analysis.....................................................................................................................10TASK 3...............................................................................................................................................103.1 Analyse the appropriateness of alternative strategies relating to market entry, substantive growth, limited growth or retrenchment of your chosen organisation...........................................103.2. Based on the analysis of the appropriateness of alternative strategies, justify the selection of........................................................................................................................................................11new strategy for your chosen organisation....................................................................................11TASK 4...............................................................................................................................................114.1 Assess the roles and responsibilities of personnel in charge of implementing the strategy.....114.2 Analyse the estimated resource requirements to implement the new strategy.........................124.3 Evaluate the contribution of SMART targets to the achievement of the strategy implementation..............................................................................................................................12CONCLUSION..................................................................................................................................13REFERENCES...................................................................................................................................14

INTRODUCTIONUnilever is multinational consumer goods company whose headquarters are located atRotterdam, Netherlands and London, UK. It has its own place and position in market. According to2012 revenue, it is world's third largest consumer goods company. It works on food, personal careproducts, beverages, food spreads, etc. Along with leading company, it is one of the oldest companyalso in market. If talk about the divisions on which it work then these are foods, refreshment,personal care and home care (Unilever, 2015). Some of the example of its products are dove,sauces, snacks, salads, hair care products, weight management products, etc. It works on fourdivisions. By including every division's product, it owns more than 400 brands. Business strategy comprises of the tactics that are used by organizations for surviving andexpanding in the market. It comprises of various aspects such as resou8rces, external environment,goals and objectives of organization etc. Every organization has to adopt strategy to fightcompetition and sustain in the industry. Similarly, strategy also assists firms to grow and expand inthe market. Unilever is largest media buyers in the world also and used to invest billions inadvertisements and promotions (Alstete, 2013). It gives a lot of emphasis to marketing of productsand to attract customers to towards them. It has research and development centre located inColworth and Port Sunlight, UK. In India, its R&D centre is at Bangalore. The current logo ofUnilever is formed by combination of 25 icons which together forms a U shape design. Each iconshows company's sub-brands. Company's products help people in improving their life styles. It alsofocus on improving the health and satisfaction level of consumers with diversities. This report includes all information regarding Unilever. The goals, vision, mission, futurestrategies are discussed properly in it. With proper discussion of business strategies, it has alsoshown the types of methods it uses for marketing and promotions. As it is one of the leading brandthat's why it has lots of competition in market. So the competitive companies are also discussed init. Market position is proper shown by doing SWOT analysis which helps in finding the strengthsand weaknesses of company. It contain information related to its stakeholders and some newstrategies that company have to follow to remove these weaknesses or threats. Along with it,different matrix and techniques like BCG Matrix and Asfros technique is discussed in detail.Internal and External environment is also effectively discussed which represents company'soperations and functioning.

TASK 11.1 The business mission, vision, goals and objectives as well as the core competencies of UnileverBusiness Mission: Products of Unilever have been taken place in everyone's life. With improvingthe performance and quality of brands (Chopyak, 2013). Unilever's mission is to satisfy the diverseconsumer needs. Company is trying to fight with current issues like urbanisation, ageing population,changing lifestyles of customers. Vision: The purpose of company it to maintain the sustainability with providing good quality ofproducts and services to their consumers(Aras and Crowther, 2012). The vision of company is toreach at new heights and doubling the business by making consumer life more comfortable andimproving their life styles.Goals: Goal of company is to provide a better, healthy and confident future to people around theworld. It's aim is to double the business while fighting with environment issues and changing needsof customers (Ireland, Hoskisson and Hitt, 2011). The goal is to create such a world where peoplecan live a comfortable life under the use of limited resources.Objectives: The objective of company is to make sustainable living. It focus on improving thecapital and increasing the sales of products (Unilever, 2015). It works for providing products ofdifferent taste and range which helps in reaching more close to their customers (Stroh, J. P., 2014).1.2 Analyse the factors that have to be considered when formulating a strategic plan of UnileverDuring the formulation of strategies it is necessary to focus on different factors which can affect them. These factors are as follows:Organisation's Objective: Firstly, Unilever has to focus on its objectives. The objectivesshould be long term. Strategies are a path to reach the decided objectives so it is important toset strong objective (Higgins, Omer and Phillips, 2014). Organisation should do analyseproperly and according to that it has to set objectives. After setting appropriate objectives,strategies helps in getting the right resources and methods to achieve them.Organisation's Environment: Unilever has to focus on its environment. It has to evaluateboth internal and external environment. This evaluation helps in knowing competitiveposition of company (Parnell and et.al. 2012). This also helps in knowing the strength andweaknesses. Decision of strategy should be in such a way that along with its own progress,company can also keep a track of its competitors actions.Targets: Quantitative targets helps in knowing needs and wants of customers. It makescompany to know about contribution of customers in their products and services(Parnell, J.and et.al, 2012). This evaluation helps Unilever in finding the requirement of change in any

brand or product or in its services/ quality etc. Strategies tries in achieving desired target,maintaining suitability and quality of products with services.Performance Measures: Performance measures helps Unilever in selection of beststrategies. This helps in knowing the differences between current performance and desiredperformance (Blackburn, Hart and Wainwright, 2013). Performance should be best, qualitywise. This makes company to focus on those factors which are affecting the performance ofemployees and company as well. It aware organisation about reality. Consumer needs: Creation of strategies should be based on consumer needs and wants.Consumer satisfaction is first priority of any organisation. Unilever have to focus ondemands and taste of consumer and on that basis they have to create the best strategy forproduction of new products (Higgins, Omer and Phillips, 2014). This helps company inincreasing its position in market among customers. 1.3 Evaluation of the effectiveness of at least two techniques used when developing strategic business plans for UnileverAnsoff's Matrix: This matrix is used in strategic planning which provide a framework to company for future growth.Market Penetration: Unilever hits the existing market by providing existing products ofbetter quality and results. They are continuously increasing their market share by offeringlow price products of better quality (Chen and Jermias, 2014). Lynx brand of Unileverattracts customers to buy it because of its low price and good quality. Dove and LuxIllustration 1: Ansoff Matrix(Source:What is the Ansoff Matrix?. 2013)

products are the companies which are using market penetration strategy for their products.They uses this strategy in regions of Asia, Europe and North America by increasing productline.Product Development: Unilever is continuously expanding its product by following thedemands of customers (Hamel, 2012). It is focusing on diversified customers and their taste.Best example of using this strategy is development of new laundry detergent formula whichis for more concentration and less packaging fitting. To know the behaviour of customers itengaged with Walmart in new product development strategy. The new brand capturedmillions of sales.Market Development: Unilever is trying to expand its market by developing innovative andcreative products in market. It is focusing on expansions, partnerships and mergers. It isserving more than 120 countries with more than 400 brands. It has developed its market infood and beverages divisions also (Kourdi, 2015). It expands personal care products inDubai and North America. It has developed market in Egypt, Morocco, Algeria withproducing products like Lipton, Knorr, Vaseline, tea, etc.Diversification: The company focus on North America and Asia. By following this strategy,the company is in way to increase its working areas in more than 50 countries. Diversecustomers generally get attracted by low price products (Mourdoukoutas, 2015). AndUnilever used the same strategy by providing low price products with good quality.Segregating the personal care products on the name of gender also attracts more customerstowards products like fairness cream for MEN, deodorants for MEN. BCG Matrix: This is a Growth share matrix which is based on company's units which are divided into four parts which are based on market growth and market share.Illustration 2: BCG Matrix of Unilever(Sources: )

Star: It includes high market share with high market growth. There are many products ofUnilever that comes under this category. One of the leading product is Knorr and another isLipton which is considered as best selling tea brand of world (Schawel and Billing, 2014).Cash Cow: It includes high market share with low market growth. Surf excel and Lux arecash cow products of Unilever. These products are reached at saturation stage. Anotherexample is Marmite of Unilever (Kourdi, 2015). Company has limited its advertisementsand promotions for this product.Problem Child: It includes low market share with high market growth. These types ofbrands or products are called as tomorrow's stars (Doherty and Lu, 2012). Marmite hasinvested into new brands like T2 which is considering as fast growing tea brand in Australia.Small & Mighty detergent is also one of the growing product of Omo brand.Dog: It includes low market share with low market growth. It consider those products whichhave been reached to their finishing stage (Campbell, Edgar and Stonehouse, 2011). Thetime of such products has been completed or gone. Rexona deodorant of Unilever is onefrom such example.TASK 22.1 Analyse the current strategic positioning of Unilever by conducting an organisational audit SWOT analysis:SWOT analysis shows strength, weaknesses, opportunities and threats of any firm. Beforeformulation of any strategy company need to do proper SWOT analysis. The SWOT Analysis ofUnilever is as follows:Strengths:Unilever has a huge range of products like lux, dove, Axe, sunsilk, etc. With the help ofdifferent and innovative strategies, these brands are increasing their place in market amongcustomers which is helping Unilever in increasing its reputation (Lei and Slocum, 2013).It has huge network of distribution channels which helps in reaching every corner of world(Unilever, 2015).Unilever peruses the global strategies which helps it in reaching the minds and hearts ofconsumers. Consumers like to use its product and have added them to their daily life (Butler,2012).The research and development centre of Unilever helps in bringing innovative and creative

products by researching the current scenario of market with changing demands and taste ofconsumers (Campbell, Edgar and Stonehouse, 2011).Weakness:The biggest weakness of Unilever is that its products have substitutes which are easilyreplaceable specially in regions of Africa and Asia. Users can replace products with othermarket alternatives (Belohlavek, 2011).It has a strong competitive market like proctor and Gamble, Nestle which have huge marketshare. This somewhere affects the market share of Unilever.Opportunities:Consumer's conciousness towards health have provide Unilever a new opportunity toincrease its product line in the field of healthy and safety food.Due to changing lifestyles of people, Unilever has to focus on changing demands and tasteof them (Campbell, Edgar and Stonehouse, 2011).Company can expand its business in areas like Iran, Iraq, Russia, Bangladesh, etc.Company can also expand business in undeveloped countries which helps it in getting cheaplabour and also save money on operations (Unilever, 2015).Threats:People are now focusing on eco natural products. So company have to produce suchproducts which will not affect the environment and also fulfil demands of consumers.Market is becoming global. EvMakreting Resources. 2015ery company wants to reach atglobal level. This can increase the competition level for Unilever. Product Positioning:Unilever tries to understand its product well and according to that it bring them among theconsumers (Spender and Spender, 2014). It tries to find out the reason for liking the product bypeople. Along with this, it also focus on its competitors. It create some tag lines or marketingmessage to its product to differentiate them from other alternative products. For example Unileverbrings Magnum ice-creams. People like to buy it at the time of treat or any celebration. One reasonis the affordable price of ice cream. So Unilever connects products to daily life of people.PESTLE Analysis:This shows the different factors those affects the organisational growth andstrategies. The PESTLE Analysis of Unilever is:Political and legal factors: While expanding business in different countries, Unilever faces

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