Strategic Management Report on Hindustan Unilever Limited

Strategic Management Report on
Hindustan Unilever Limited (HUL)

Table of Contents
INTRODUCTION...........................................................................................................................1
SCENARIO PLANNING................................................................................................................1
1. Setting the scene.................................................................................................................1
2. Environmental analysis......................................................................................................2
External Analysis...............................................................................................................3
Internal Analysis................................................................................................................4
3. Industry analysis.................................................................................................................5
Porter Five Forces..............................................................................................................6
4. Generating strategic options...............................................................................................8
5. Evaluating and choosing between strategic options...........................................................8
6. Presenting strategic recommendations...............................................................................9
7. Conclusion (10 marks).......................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Strategic management is defined as the planning done by an organisation to achieve the
goals and objectives of the company (Srinivasan, 2014). This is an important process for every
organisation operating within the corporate world. It allows the companies to elevate their global
market positioning as well as market share by exploiting their strengths in the best manner. Now,
the following is a strategic management report prepared for Hindustan Unilever Limited to reach
to the most suitable strategy that can be recommended. The report is carried out by a 7 Step
Scenario Planning Method.
SCENARIO PLANNING
1. Setting the scene
Hindustan Unilever Limited (HUL) is a consumer goods corporation, having its
headquarters situated at Mumbai, India. This is a subsidiary organisation of Unilever. The
offerings of this corporation include beverages, food items, cleaning items, kitchen products,
personal care items, water purifiers, and other consumer goods. Hindustan Unilever Limited was
formed in the year 1931 in the form of Hindustan Vanaspati Manufacturing Co. Post the
execution of merger of several constituent groups in the year 1956, the organisation was renamed
as Hindustan Lever Limited. Finally, in the June month of 2007, the company was renamed as
Hindustan Unilever Limited (HUL). This company includes a portfolio of over 44 brands in 14
different categories. It has over 8 million outlets across India which depicts the scale at which the
entity is operating in the market place (Hindustan Unilever Limited, 2020).
The vision of HUL is to grow their business while simultaneously decoupling their
environmental footprints from business growth and accelerating the affirmative social impact
(Hindustan Unilever Limited, 2020).
HUL has an employee base of over 21000 with the overall gross sales being INR 38,273
Crores as of the FY 2019-20 (Hindustan Unilever Limited, 2020).
1

Figure 1: Financial Performance of HUL in 2019-20
(Source: Hindustan Unilever Limited, 2020)
As per the interpretation of the above graph, Hindustan Unilever Limited (HUL) earned
net revenues of INR 38,785 Crores and Earnings Before Interest Tax and Amortisation
(EBIDTA) of INR 9,600 Crores during the FY 2019-20. The basic EPS was INR 31.13 for the
respective year as against INR 27.89 of the previous year. This implies substantial improvement
in the financial performance of HUL in one financial year (Hindustan Unilever Limited, 2020).
2. Environmental analysis
Environment analysis, more commonly referred to as environmental screening, is a
process by which an organisation examine the business environment. This helps the organisation
in determining the potential opportunities and threats that may fall on its pathway. Concerning
this, it is well known that environmental analysis is of mainly two types, named, external
environmental analysis and internal environmental analysis. The management of Hindustan
2