Analyzing Business Strategy of Unilever: PESTEL, SWOT, McKinsey 7s, VRIO and Porter's Five Forces Model

Business
Strategic Plan
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Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Task 1..............................................................................................................................................3
P1 Applying appropriate frameworks analyse the impact and influence of the macro
environment on a given organisation and its strategies...............................................................3
M1 Critically analyse the macro environment to determine and inform strategic management
decisions......................................................................................................................................6
Task 2..............................................................................................................................................7
P2 Analyse the internal environment and capabilities of given organisation using appropriate
frameworks..................................................................................................................................7
M2 Critically evaluate the internal environment to assess strengths and weaknesses of an
organisation internal capability...................................................................................................8
Task 3..............................................................................................................................................8
P3 Applying Porter’s Five Forces model evaluate the competitive forces of a given market
sector for an organisation............................................................................................................8
M3 Devise appropriate strategies to improve competitive edge and market position based on
the outcomes..............................................................................................................................10
Task 4............................................................................................................................................11
P4 Applying a range of theories concepts and models, interpret and devise strategic
planning for a given organisation.............................................................................................11
M4 Produce a strategic management plan that has tangible and tactical strategic priorities
and objectives...........................................................................................................................12
D1 Critique and interpret information and data applying environmental and competitive
analysis to produce a set of valid strategic directions, objectives and tactical actions............13
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14
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INTRODUCTION
Business strategy refers to a set of competitive moves, tasks and actions, which set the outline,
that how business will competitive in a particular known market, with a product or number of
products use to attract customers and strengthen its positioning and performance (Wadin and
Bengtsson, 2022). The Unilever Plc. is a UK based multinational consumer’s goods and retailer
corporation with HQ in London (UK). The firm establish in 1929 as unification between a
producer of margarine and a soap maker and currently operating nearly 400 brands. It is the
largest producer of soap across the world and its products are sold in approx. 190 countries. The
corporation has R&D (research and development) units in UK and the Netherlands. The report
emphasizes on the Unilever, that how businesses came to the top in the customer’s goods and
retailer market by using PESTEL and SWOT analysis's. The firm emphasize on the
organisational social-cultural structure to assess the benefits and ensure the success of company
in future by applying McKinsey’s 7s framework and VRIO analysis. The porter's 5 generic
strategies used by the company for devising a strategic planning and the firm's strategic
management use SOSTAC model, which give business's and marketing planning.
MAIN BODY
Task 1
P1 Applying appropriate frameworks analyse the impact and influence of the macro-
environment on a given organisation and its strategies.
An organisation's core competencies should be focused on satisfying customers’ needs or
wants in order to achieve business objectives. This is done through business's level strategies
(Massa, Tucci and Afuah, 2017).
PESTLE Analysis of Unilever
 Political Factors – The firm has to follow the regulatory limitations and guidelines
regulating by the European Commission. The Brexit deal impact on the firm over long-
run and deceasing its large profit-margin. Due to this, hike in tax rates, which curb
saving and increasing expenditure.
 Economic Factors – If the company want to grow and expand they lay on economic
growth of the country. The interest rate and inflation rate, both work oppositely to each
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