Business Strategy for Unilever Plc

BUSINESS STRATEGY

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
PART A...........................................................................................................................................3
PESTLE and SWOT of the organization and an evaluation of the organisation’s resources and
capabilities...................................................................................................................................3
Competitive environment analysis using Porter’s Five Forces model........................................6
Identification and justification of the organization’s existing and/or potential competitive
advantage.....................................................................................................................................7
Valid strategies and tactical objectives to achieve overall strategic objectives...........................7
PART B...........................................................................................................................................8
Critical evaluation of the different types of strategic directions available to the organisation. . .8
Justification and recommendation of the most appropriate growth platform/s and strategies. .11
Evaluate ways and means by which the chosen strategy/ies can be monitored in order to
ensure success............................................................................................................................12
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Strategic Management planning is important for the company to set goals, procedures as
well as the objectives within the organization with the aim to make a company more competitive.
It involves the formulation and implementation of goals and policies by the manager on behalf of
stakeholders (Fuertes and et.al., 2020). The present report will be based on Unilever Plc which is
British multinational consumer goods company having headquarters in London. The company
was founded in the year 1929 and now having operation in all over the world. As per the 2021
report, the net income and total number of employees of Unilever Plc is €6.621 billion and
149000 respectively. The present report will analyse the internal as well as external capabilities
of Unilever using PESTLE, SWOT and Porter five forces model. Further, the report will also
identify and justify the potential competitive advantages of the company. Moreover, the report
will also analyse the valid strategies as well as the tactical objective in order to achieve the
overall strategic objectives of Unilever Plc. The different types of strategic directions such as
market penetration, market development, diversification and product development will be
analysed and evaluated using Ansoff Matrix model. Further, the proper recommendations with
justification will be provided to Unilever Plc to achieve success.
PART A
PESTLE and SWOT of the organization and an evaluation of the organisation’s resources and
capabilities
PESTEL analysis examines many external factors such as political, social, economic,
technological, legal and the environmental that influence the organization (Matovic., 2020). This
is a tool generally used by the marketers to monitor or analyse the macro environment.
Political factors that affect company:
This factor is broadly connected with the politics of a specific country. For the growth as well as
success of the business political stability becomes more important factor as it mostly helps in
functioning. The Unilever operates on large scale, thus it is exposed to very risk. In last years the
visitors to UK had reduced because it has left the European Union so this give result on profits or
revenue of the Unilever has also declined. So the company face consequences if their regulation
came implementation. Strong government in centre is good for corporate thus it will generally
become easier to launch corporate friendly reforms without resistance from opposition.

Economic factors-
This factor is mainly related with economic condition of particular country. Here, economic
factor is plays important role for the industry thus it is not under control of the industry but it
generally gives impact on business operations. Booming economic is more profitable for the
companies. If the country economy is stable then it is good sign for the company. Employment is
an important factor of economic in deciding company prospects in the nation. For example, if
large number of people are unemployed, then it can help company in reducing their cost. But at
the same time it can be mean that there is lesser number of people to buy the company product in
the market.
Social factors-
Social factors such as latest trends, lifestyles, cultures, fashions and many more. As being well
recognized brand around the world the revenue of the organization can also affect by different
factors such as consumer demographics, growth rate, gender ratio, cultures etc. The company
also has launch products as well as market them in effective way that is appeals to social
demographics. The Unilever offer products to all level people that is low income group, middle
class and the high class people.
Technological factors-
These factors are generally involved with the all technologies that are mostly evolving day to day
as well as making the lives easier. Unilever is engaged in providing good quality products so,
they have to focus on updating its technologies. Constant improvement in operation of the
businesses are generally required to increase efficiency as well as decrease costs.
Legal factors-
Legal factors are mostly connected with all laws as well as rules of particular country under
which organization operates. So Unilever needs to protect all its patents. The company also,
considers that the company should be informed about legalities as well as processes. Generally
this creates trust in the customers mind and so the organization gains customers loyalty as well.
Environmental factors-
These factors are more connected with environmental activity that are generally followed by many
people and also undertaken by many firms. The Unilever has successfully capable to project
themselves as environmental friendly organization. Even the organization is dedicated towards to
achieve the goal of 100 per cent plastic packaging to be reusable.