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Strategic Management Assignment (DOC)

   

Added on  2020-03-23

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Running head: STRATEGIC MANAGEMENT Strategic ManagementName of the Student:Name of the University:Author’s Note:

1STRATEGIC MANAGEMENT Executive SummaryIn this report, the strategies, core competencies and capabilities of the fast movingconsumer goods company, P& G and Unilever are analyzed with reference to samemarket China. The various strategic models used to analyze the strategic actions ofUnilever and P& G are Porter’s 5 Forces Model, Porter’s Generic Strategy, Ansoff’sMatrix, Blue Ocean Strategy. The new products market, new country markets,alliances and acquisitions of both the organizations are analyzed. The strategicaction plans of Unilever and P& G are compared and contrasted with emphasis onthe Chinese market. In this report, it can be concluded that P&G was moresuccessful in the Chinese market as the company focused on gaining trust ofconsumers while Unilever entered into multiple joined ventures initially in China andthus generated lower revenue. However, Unilever later brought its business unitsunder a single holding in China.

2STRATEGIC MANAGEMENT ContentsIntroduction.............................................................................................................................................3Discussion................................................................................................................................................3Figure: McKinsey 7S model...........................................................................................................4McKinsey 7S model of Unilever....................................................................................................4McKinsey 7S model of P& G..........................................................................................................5Porter’s 5 forces analysis of Unilever........................................................................................7Porter’s 5 forces Analysis of P & G..............................................................................................8Figure: Porter’s Generic Strategy of Unilever.........................................................................9Porter’s Generic Strategy of Unilever........................................................................................9Porter’s Generic Strategy of P& G...............................................................................................9iv) Blue Ocean Strategy of Unilever and P&G......................................................................10Figure: Ansoff’s Matrix..................................................................................................................11a) Ansoff’s Matrix for Unilever....................................................................................................11b) Ansoff’s Matrix of P& G............................................................................................................12The alliances and acquisitions of P&G and Unilever...........................................................13Conclusion.............................................................................................................................................13Recommendations..............................................................................................................................14References............................................................................................................................................15

3STRATEGIC MANAGEMENT IntroductionP& G is the world renowned consumer goods company which was founded inthe year 1837. The organization has more than 300 brands with a diverse productportfolio including beauty care products, Gillette products and household careproducts. P & G established joint venture with P&G (Guangzhou) Ltd. Headquarteredin Guangzhou and entered Mainland China in the year 1988. The greater Chinabusiness of P& G includes Mainland China, Taiwan and Hong Kong. The UnileverLimited is also a reputed consumer goods company which is headquartered inLondon, United Kingdom and Rotterdam, Netherlands. The organization has adiverse product line and product width which includes personal care products,beverages, food, products, cleaning agents and various other products in fastmoving consumer goods section. Unilever entered China in the year1986(unilever.com. 2017).The jointly owned enterprise of Unilever in China isShanghai Unilever. The business operations of Unilever extend to Macau, HongKong, Taiwan, Mongolia and mainland China. Both P& G and Unilever are global fastmoving consumer goods companies which have established lucrative marketoperations in China. The core competencies, capabilities and how these twocompanies have achieved competitive advantage in China have been analyzed inthis report by reviewing the strategic actions undertaken by the two companies(pghongkong.com. 2017).DiscussionThe McKinsey 7s framework was developed in the 1980s by Tom Peters andRobert Waterman who worked for McKinsey & Companyi) The Hard Ss and the Soft Ss of McKinsey 7S Model (Stead and Stead 2013).The hard Ss of McKinsey 7S Model are Strategy, Structure and System. Thesoft Ss of McKinsey 7s Model are Shared Values, Skills, Staff and Style (Frynas andMellahi 2015).

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