Strategic Management: Two Strategic Issues Faced by Unilever

Strategic Management

TABLE OF CONTENT
INTRODUCTION...........................................................................................................................4
Two strategic issues and explaining why they are strategic, contextualized within the
organizational setting...................................................................................................................4
Recommendations to Unilever...................................................................................................11
CONCLUSION .............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Strategic management refers the management of the organization which helps the
company to do proper planning, monitoring and analysing of the organizational needs in order to
achieve the planned goals. Changes in the macro environment will make the company to
continue work on the strategies made for achieving the success. Strategic management process
helps the organization to compare the present situation with the future in order to make the best
strategies for the company. It has both monetary and non-monetary benefits for the company. It
basically sets the proper direction for the organization and for employees as well which helps the
organization to have high operational efficiency and profitability. Unilever PLC is the one of the
largest organization which produces the consumer goods and having its headquarters in London.
The products produce by the company are foods, ice-creams, minerals, tea, coffee, breakfast
cereals, pet food, beauty products and personal care items. It has over 400 brands having a
turnover of 51 billion euros in the year 2020. This report will outline the two strategic business
issues and why they are strategic including an overview of relevant strategic decisions that had
led to the current position.
Two strategic issues and explaining why they are strategic, contextualized within the
organizational setting
Strategic issues are the critical issues that the organization has to face in order to achieve
goals of the organization. It has a major impact on the flow and direction of the business. These
are the critical problems of the company which unknown and creates problems in order to
achieve the planned target of the company (Strategic Issues: The Pivotal process for Strategic
Success, 2021). Strategic marketing issue in the company are increase in the competition and
rapidly changes in the technology can create problem in the organizational structure. Unilever is
also facing some strategic issues which may decreases the probability of the company. The
organization must focus on the strategic issues in order to be successful in the competitive
market. By reviewing the notes and taking the information that the company has made and
identifying the critical aspects that the organization is needed the company can identify the
strategic issues. The issues must be analysed by the organization in order to resolve that issues

and making the good strategic management in the company. The issue must be solved by the
company as soon as possible by the company.
Two strategic issues faced by the organization are:
1. Facing issue related to the ice-creams: The main problem faced by the
organization is health related issue from the ice-cream as it contains lots of sugar.
The issues like health and environmental related issues are the main strategic
issues of the organization (Monciardini, Bernaz and Andhov, 2021). As the
company is producing different types of food products it must use the health
conscious products in order to produce healthier products. An ice cream is a
product that cost less in order to produce more, this product is profitable for the
company having tropical climate in India and Indonesia. The fall in the
consumption of the ice-cream is due to the health issues of the customers in the
competitive market. The main issue is relating to the abundance of milk and sugar
used in order to produce the ice-cream in the industry. This milk is the contains
lots of fats in it which is not considered healthier for the customers. The
organization is more focused on producing the healthier products but it fails to use
the healthy products in ice-cream. This leads to the strategic issue in the
organization which may decreases the profits of the company in the international
market.
The company must understand the issues related to the health of the customers, as
customers are the main source of profit for the company. Nowadays the customers are so health
focused that they only prefer the products which contains low fats and cholesterol. Customers
always wanted the level of satisfaction of the price he has paid in order to purchase the goods.
The decision-making of the ingredients used in producing of the products must be very specific
and should be focusing on the health of the people. The managers of the Unilever must have the
clear understanding about the needs and wants of the customers in the market. The issue is so
strategic which must be taken into the consideration and it helps the organization to earn and
maximize its revenues. As in the current scenario it is seen that the people are more focused
towards their health and used to eat the good and diet food. This makes them to live health and
make them away from the various diseases. So the organization must make the sugar free ice
cream in order to have god profitability.