Unit 32 Business Strategy

Unit 32 Business Strategy

Table of Contents
INTRODUCTION...........................................................................................................................3
LO1..................................................................................................................................................3
Analysis of frameworks that has impacted and influenced macro environment.........................3
LO2..................................................................................................................................................6
Internal environment and capabilities of organisation.................................................................6
LO3..................................................................................................................................................9
Application of porter's five forces model that is used to get the competitive advantages...........9
LO4................................................................................................................................................10
Applying range of theories, concepts and models.....................................................................10
CONCLUSION..............................................................................................................................12
REFERENCE................................................................................................................................13

INTRODUCTION
Business strategy is defined as combination of all decisions taken and action performed
by business owner to accomplish the goals and objectives. Every organisation should have
strategic plans so that it can secure a competitive position in the market. In other words,
strategies are the backbone of business that leads to desire the goals (Carlson, 2020). To
understand about this and gaining competitive competition Unilever has been chosen that is
multinational corporation in UK and other countries. This is British Dutch transactional
consumer goods company, headquarter in London, England and Rotterdam etc. Different topics
are covered in this report such as impact and influence that the macro environment has on
organisation, application and outcomes of an analysis using porter's five forces model, models
and theories that are used in strategic directions to a company. Moreover, report has covered
porter's five forces model in order to take competitive advantages.
LO1
Mission – The mission of Unilever is to increase the organisational productivity and
profitability by offering variety of products and services.
Vision – The vision of Unilever is to provide products and services in global market which
customers want.
Objective – To increase brand image, profitability and competitive advantages by running a
business continuously.
Definition of Business strategy – This is planning which is developed by management in
order to attain business goals and objectives. Strategy should be appropriate and understandable
which attracts customers and increase organisational productivity.
Analysis of frameworks that has impacted and influenced macro environment
About company and its vision – Unilever is a British multinational company which is
operating its business in London and other countries by providing better quality of consumable
products and services. The vision is to create a sustainable and healthy living place. Moreover,
its objective is to increase productivity and profitability by selling number of products.
Strategy: An action and long term plan which is designed by managers in order to
achieve particular goals and objectives is consider as strategy. If organisation is having good
plans and skilled employees then only it can complete task and attain business goals. This is

important for organisation that make plans and implement them effectively. In Unilever,
managers are responsible to take right action by executing plans that helps to get the
profitability. In other words, the role of organisation is to provide fast consumable products to
customers which helps to improve productivity (Strelchenko, 2019).
Macro environment – This refers as an environment in which how macroeconomic
conditions of a company operates a business that is impacting on operations and performance. It
is related to external factors which have impacted on business, consumer's ability and
willingness. Every organisation is required to analyse macro environment as it is the part of
strategic management that covers various factors which are important to run a business. In
context to Unilever, manager focus on external environment that assist organisational people
which factor can impacts on business strategy such as:
Political factor: This factor extent the government policies and stability of a nation
which is required to follow by a business that may impacted positively and negatively. In UK,
government is stable who make fair decision by formulating policies and regulations that has
impacted on business positively. The business and operational activity of Unilever increasing as
managers make decisions regarding to expand business in other location with the help of
government support that affect business positively. Along with this, increasing rate of tax and
fuel can impacts negatively as low production and reduction in selling activity due to changes in
tax rates (PESTLE analysis of Unilever, 2017).
Economical factor: The containment of this factor involves economy of a nation which
has affected the performance of a business. Rate of inflation, interest rates, foreign exchange
rates, economic changes etc. are covered in this element who has affected business strategy. The
business performance of Unilever depend on situation of economies across the world. For
instance, the inflation rate of UK is stable that is increasing wages of people in developing
countries, is opportunity for Unilever to get profits by selling products and services. On the other
hand, sales of organisation can be reduced due to increasing rate of interest and inflation in UK
that create a risk for Unilever (Azevedo and Budish, 2019).
Social factor: When people are behaving in differently and they have different demands
is related to society that has impacted on business performance. The people of UK are highly
health consciousness and environmentalist behaviour that has created a opportunity for Unilever
as it is growing continuously by addressing consumer's needs and creating interest of healthful