Strategic Management Individual Report for Unilever PLC

This report provides an analysis of the strategic management of Unilever PLC, including Ansoff's Matrix, Bowman Strategy Clock, and McKinsey Matrix. It also includes a SWOT and PESTLE analysis, evaluation of internal and external variations on business, and a business action plan.

Strategic management individual report

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Strategies for the company.....................................................................................................1
Evaluation of internal and external variation on Business.....................................................4
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Strategic management is referring as the process and procedure which is focus on
preparation and execution of objective and goals by the management of firm. It generally
underlying the resource and assessment of different factor that is essential in the working of
business. In addition, in the consideration of such factor, the management of firm introduced the
various policies and strategies for achieve organisational goals. It also discussed in the report that
show the various process that is used by organisation to determine their strategies. The report
usually covers as the chosen firm that is Unilever PLC (AL-Dweikat, and Nour, 2018). It is
defined as company that is associated in the British Multinational FMCG company that is
headquartered in London. The company offer wide range of product to its customer. It is largest
producer of soaps in world. It is also including the SWOT and PESTLE analysis of the Unilever
PLC. An organisation strategy plan is also cover in report which is help to show that it helps to
improve the performance and achieving target goals (Buehring, and Liedtka, 2018).
MAIN BODY
Strategies for the company
Ansoff’s Matrix:
It is referring as the process that is taken by firm for identify the business strategies for
their future growth and development. It analysed different factor that is essential for the
improvement of performance of the company. The company matrix of the Unilever PLC is well
discussed below:
Market penetration: The company is launching different good and service and entering
in number of various product lines for enhancing the market penetration. This is also analysed
that they are well contributed towards success of company in the previous decade. It is useful to
develop strong customer base for their firm product and service. As per this, the company is not
focused on selling the few customers which is also show the importance for economics of scale
in the FMCG (Elbanna, Al Katheeri, and Colak, 2020).
Product development: It is also related with taking into the innovation and creative ideas
which is showing the company launches that is regularly in order to attract the customer. The
company started their own business with only soap. In addition to this, the Unilever currently
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offer the wide range of product to customer which is also help them to maintain loyal customer
base. It is also help the company in order to achieve growth and show high rate of expansion.
Market development: Unilever is entering in new geographical market to expand
business with the vision to enhance sale of the firm. The company initially was doing the
business which is based on Europe. In addition, the company is well operated in various
countries that is more than 150 countries that show the presence across the world. It is also focus
on the company that is well operated with the help of market development strategy. It is also
mentioned that company is usually managed the loss of one sector from the productivity and
profitability that is well related with other sector.
Diversification: The company is usually taken which has been focus on acquisition and
showing the collaboration. As per this, the diversification by the Unilever that is Tatcha LLC and
seventh generation since that they are mainly working in term of cosmetic industry. The
company has enhanced the product various business units the last decade which is based on dairy
brand and other refreshment brand (Galleli, and Junior, 2019).
Bowman strategy clock:
It is referring as the framework which is used by operation for business for proper
positioning of it that they show the product according to price and evaluated values. It is usually
show that eight clock position elaborate the various strategies that is useful for firm. The analysis
on Unilever is well discussed below:
Low price and low value model: It is also referring as the strategical tool that have focus
on the low price and low values product that is helpful to gain the higher customer base by
targeting a specific group for product. It is useful for firm in order to gain the competitive
advantage in the current market.
Low price: This is strategy focus on lowering the price of product in order to make the
proper attraction towards customer. The margins of company get reduced due to minimisation of
prices. The chosen firm for report that is Unilever can maintain affordable pricing of their
product so that it can enhance level of sales of firm. It is also help to show the company in help
to improve profit margin of occupational.
Hybrid: This strategy usually involves the balance between low price and show the
aspect of differentiation. As per this, Unilever generally target the cost of customer who turn to
product. It is also combine that show differentiation in order to design the low cost for gaining
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the competitive benefits the market. The company aim to make proper maintenance that is based
on good margin while keeping the balance between two factor.
Differentiation: It is generally show the involvement of introduction of new product and
service that is based on market. The company persistently need to innovate product in market in
order to serve the larger section of the social group and community. The company takes
advantage of customer mind-set for selling their product (Ghadirnezhad Shiade and et. al., 2022).
Focused differentiation: It is well focus on the providing the customer with the proper
affordable price. In addition, the companies are also used to make the process of selection in
term of product and then used to perform focused differentiation. It is very challenging for the
firm in order to maintain the margin of the firm with the help of strategy which is undertaken.
The chosen firm also launch premium category brand for sustaining the market for longer time.
Risky high margin: The name is well indicating that it is risky for the business or firm. In
this, the firm required a strong margin with strong brand that pull off this kind of strategy. The
selected firm for the report that is Unilever PLC used to create strong brand that they can high
productivity and profitability from the increase of sale.
Monopoly pricing: The monopoly market is well demonstrated that market which is
focus on good and service that is offered by company that is associated with monopoly in
market. The Unilever has to make formation towards the monopoly in various segment so that it
can be control the demand and supply, prices and value of the product in the current market.
There is no any major competitor in the market against the firm which can create monopoly. In
addition to this, Unilever can make significant impact in term of performance in current market.
McKinsey matrix:
It is referring as tool which is used for firm diagnosis for the effectiveness of business. It
also provides configuration that show organisation component are usually interrelated with each
other. The McKinsey matrix is helpful for Unilever which is mentioned:
Strategy: As a firm, Unilever formulate balance that is associated within firm
competencies and saving of cost. The enterprise also provides customer sense that they have
received value for money. The company is generally focus on the reducing cost that is showing
the result in inferior of good and service that is deliver by firm and enterprise.
Structure: The structure and supply chain management of the company which is badly
affected by term which is used for pandemic. The chosen enterprise that is Unilever need to
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make more attention on such factor in order to make smooth run for their business. As per this,
the firm also try to find out the tune of organisational structure (Mandych and et. al., 2021).
System: The two important region or important areas which is well focused that have
company needs focus on the risk which is showing the management process and customer
relationship management. These factor directly impact the productivity of organisation. The
company should take more interactive session so that the communication between the employee
and manager is taken that must be improved.
Staff: The Unilever also try to hire or recruit those individual who have required skills
and knowledge which is best available among candidate. It is also helpful in order to make the
environment of the organisation that is positive and also applicable in order to improve the
performance. It is also help to organise the various training for making the improvement where
skills and knowledge of existing employee.
Values: It is also evaluated that the organisation become successful where corporate
values is well inculcated in each and every employee. As per this, it also helps to make the
company in sustaining for longer period of time in market.
Style and culture: The culture of the organisation is also showing the aspect of
collaborative working. In addition to improve workflow, the leader is probably allowing the
employee that shows adequate freedom that can help to express the perspective in wider ways.
Skills: Unilever that can build the strong network where it helps to provide the number of
opportunities to the employee that can help to enhance skills. The company is also used to
introduce the program which is valuable for employee to developed their skills.
Evaluation of internal and external variation on Business
SWOT analysis:
It is also referring as the method which is help to evaluate the various external factor that
usually affect the working of business (Nik Abdullah and et. al., 2022). it also shows some of
involvement that is best assessed with strength, weakness, opportunities and threats of business.
The SWOT analysis of Unilever is mentioned below:
Strength Weakness
 Strong financial position: Unilever is
help to maintained the strong financial
position in the current market. In
 Imitable product: The product which is
usually offered by Unilever can be
easily imitated by the competitor. There
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addition, the working capital and also
show the fixed asset that is best
available on the firm that help to
improve in persistent ways. It is also
analysed that they are ranked among
the Fortune Global 500 companies in
year 2019.
 Popular brand: The company is very
popular across the various FMCG
segment. As per this, the most popular
brand is Dove, Knorr and Lifebuoy.
are is no any scope which is showing
the differentiation in such product. The
enterprise is facing issue which is
associate with long period.
 Huge dependence on retailer: The
company is usually having large
dependent on the retailer for selling that
the product since the company only sale
in offline network. The engagement of
the buyer is well associated with the
behaviour of retailer.
Opportunities Threats
 Use of social media platform: The firm
used to require need to advertise that
show the product through the use of
social media platform. As per this, it
also in enhancing the customer base in
market.
 The demand of such product is
enhancing the day to day in society.
More and more people which is show
the shifting towards the taking product
which is healthy (Roberts, and Laurie,
2019).
 Ayurveda product: The demand of the
Ayurveda product is enhancing among
customer. This can help to Unilever
since company deal with the
commercial product.
 Competitor: As per this, the competitor
of Unilever which is also offer that
similar product within similar price
range which can affect the sales of the
firm. In this, main competitor in market
are Nestle and P and G.
PESTLE analysis:
It is also referring as the tool which help to companies that help to evaluate the external
factor which is usually affect the business development and their operation. The factor is well
considered with analysis of political, economic, social, technological, legal and environment.
The PESTLE analysis which is showing that Unilever is well mentioned below:
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Political: There has been political instability in the world which is arise due to the variation
among the countries. The company require to show some attentive in keeping the changing rules
and regulation which is directly affect the sales company (Safonov, and Borshch, 2019).
Economic: It is usually involving various economic tax like rates, employment rate, foreign
currency and condition of the firm economy. The company has to keep such factor in
consideration while doing their business that used to restrict loss of the firm.
Social: It usually involve some of the configuration which is best available for social group and
community. The chosen firm introduce new product in the market in order to gather the
information as per demand section of society and social group. The company is running towards
their business which is more than 100 countries so that they can formulate new product and
service for the market.
Technological: As per rising technology in United Kingdom, the advancement is on peak, the
people of UK focus on online trend. As per this, the company also adopt new technology help to
improve the customer experience. Unilever help to save the time and also approach with
automated operation.
Legal: The chosen firm is usually deal with variety of goods and service which is more than 350
brand that is current with existing. The company also follow some of the law which law that is
best applicable on them that show ignore laws can help to improve the costly for the firm in near
future.
Environment: Unilever that has successfully that used to represent itself as eco-friendly product
and service with the operation of business. The firm is always dedicated to achieve the goals of
organisation.
Business action plan:
Unilever PLC is referring as brand and multinational company which usually deal with
various good and service for different class of people. As per this, London is headquartering of
Unilever. In addition, companies are usually facing some of issue which is regarding the quality
of product that must be address in appropriate ways. The business action plan is help for the firm
to achieve the objective and firm within the specified time.
Vision: The main vision of the company is to improve the quality of product and service.
Mission: The ultimate mission of the enterprise is to provide high quality service and goods to
the customer so that they can maintain positive image for the firm.
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Objective: The objective of the company is to follow the all procedure which help to make the
ethical and sustainable.
Tactics: There are some of the tactics which is required in order to follow some action which is
helpful to achieve the goals of organisation.
 Organisation help to improve the existing technology for enhancing quality of goods.
 The firm also define the quality of production department.
 It helps to train the employee which help to improve the customer experience in term of
product quality (Stoianova, Lezina, and Ivanova, 2022).
CONCLUSION
As per the above discussion, it is also analysed that report help to cover the chosen firm that
is refer as top companies of UK in the FMCG sector. The report is useful in order to gather the
understanding of strategic management tool which is applied in selected firm. The report helps to
address the role of strategic management and also provide the various business such as
McKinsey, Bowman strategy clock. Therefore, SWOT analysis and PESTEL analysis of
Unilever. The report usually helpful to provide the business for the firm.
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REFERENCES
Books and Journals
AL-Dweikat, M.F.S. and Nour, M.I., 2018. A structural equation model for analyzing the impact
of strategic management accounting techniques on quality of financial
information. International Journal of Economics and Finance, 10(4), pp.62-71.
Buehring, J.H. and Liedtka, J., 2018. Embracing systematic futures thinking at the intersection of
Strategic Planning, Foresight and Design. Journal of innovation management, 6(3),
pp.134-152.
Elbanna, S., Al Katheeri, B. and Colak, M., 2020. The harder firms practice strategic
management, the better they are. Strategic Change, 29(5), pp.561-569.
Galleli, B. and Junior, F.H., 2019. Human competences for sustainable strategic management:
evidence from Brazil. Benchmarking: An International Journal, 28(9), pp.2835-2864.
Ghadirnezhad Shiade, S.R., Fathi, A., Taghavi Ghasemkheili, F., Amiri, E. and Pessarakli, M.,
2022. Plants’ responses under drought stress conditions: Effects of strategic management
approaches—a review. Journal of Plant Nutrition, pp.1-33.
Mandych, O., Mykytas, A., Ustik, T., Zaika, S. and Zaika, O., 2021. The development of
theoretical, methodological and practical recommendations of the innovative
development vectors of business process reengineering and strategic management of
enterprises. Technology audit and production reserves, 6(4), p.62.
Nik Abdullah, N.H., Krishnan, S., Mohd Zakaria, A.A. and Morris, G., 2022. Strategic
management accounting practices in business: A systematic review of the literature and
future research directions. Cogent Business & Management, 9(1), p.2093488.
Roberts, S.A. and Laurie, B., 2019. Strategic Management of Data and Challenges for
Organizations: Strategy Development and Business Value. In Web Services: Concepts,
Methodologies, Tools, and Applications (pp. 1791-1801). IGI Global.
Safonov, Y. and Borshch, V., 2019. Basis for strategic management at healthcare
enterprises. Management of the 21st century: globalization challenges, (2), pp.17-23.
Stoianova, O., Lezina, T. and Ivanova, V., 2022. How to manage companies in the digital age:
Strategic management prospects. Journal of Telecommunications and the Digital
Economy, 10(2), pp.6-25.
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