Business Strategy for Unilever: Analysis and Planning

This report analyzes Unilever's internal and external environment using various strategic analysis tools and provides a strategic planning framework for the company. It includes PESTLE analysis, SWOT analysis, Ansoff Growth Matrix, McKinsey 7S Model, VRIO/VRON Strategy, Porter's Five Forces, and Bowman Strategy Clock. The report also discusses the company's market sector and provides a tangible and tactical strategy for the company's success.

Business strategy

Table of Contents
INTRODUCTION...........................................................................................................................2
MAIN BODY..................................................................................................................................2
P1.....................................................................................................................................................2
Pestle analysis of Unilever.........................................................................................................2
SWOT analysis of Unilever.......................................................................................................3
Ansoff growth vector matrix....................................................................................................4
P2.....................................................................................................................................................5
McKinsey 7s model....................................................................................................................5
VRIO/VRON strategy...............................................................................................................6
P3.....................................................................................................................................................7
Porter five forces of Unilever....................................................................................................7
Porters five force model..............................................................................................................8
Extended model of Bowman strategy clock................................................................................8
Producing a strategic planning that has the tangible and tactical strategies................................9
conclusion......................................................................................................................................11
REFERENCES..............................................................................................................................12
1

INTRODUCTION
Business strategy refers to the process of planning, organizing, directing and controlling the
action of the company in order to accomplish the goal of the company in effective as well as
efficient manner. The present report is based on the Unilever which is one of the effective
organization of the UK that serves wide range of product and services in domestic as well as
international marketplace. It is renowned as the British multinational organization. headquarter
of the company is located in the London. The present report will analyse the internal as well as
extremal environment factor for the formulation and determination of the strategies for the
success of the company. Along with that it will evaluate the capability of the organization with
the adequate framework. For the market sector the report will apply the porters five force model.
Apart from that it will reflect the strategic planning for the welfare of the organization.
MAIN BODY
P1
Pestle analysis of Unilever
Unilever pestle analysis helps in analysis the various factors which are includes the
economics, social, technological, legal, political, environmental ,etc. that all factors influence the
business and also impact on the brand of company as well as it helps in improve the business
continuously.
 Political factors: The political factors influence the consumer goods company. Company
provide the various products such as personal care, beauty and home care, etc. the
political impact on products and services of company because the company needs to
follow the governments rules and regulations and the company also face some legal
issues such as criminal and civil as well as risk fines so, the company have to distribute
the products and manufacture the products according the to the governments laws (Jose,
2021).
 Economic factors: The economic factors are also influenced the consumers based
company in the macro environment because of the high growth and developments of the
developing countries, enhance wages in developing countries, and economic stability of
developed countries so the that all are helps the company and provide opportunity to
become more profitable and sales high numbers of products to the targeted customers and
also developed the county economics.
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 Social factors: In the social factors are also influenced the consumer good industry
through the rising the health consciousness, gender divided and rising the environmental
behaviours. That all are opportunities for company which are provided by the social
factors and company can attract the more customers to rising the environmental
behaviours.
 Technological factors: The consumers good company are based on the technologies
because it helps in develop the new products and services which helps in attract the more
customers and helps in rising the business automation as well as it rise the transportation
cost which are based on the technologies and research and developments investment are
also increase.
 Environmental factors: In the environmental factor, the consumer goods industry get
opportunities to rise the interest in the business environmental, increase the
organizational efforts on sustainability and rise complexity of environmental programs
(Birahim, 2020). This factors also helps in improve the competitive advantages of
organization with the helps of corporate social responsibility.
 Legal factor: The consumer good company must satisfy the regulations of governments
and issued which are based on the legal factors such as strengthening the customers rights
laws, international patents laws and enhance the complexity of environmental regulation
in the external environments of consumer good industry.
SWOT analysis of Unilever
The swot analysis of Unilever is includes the strength, weakness, threats and
opportunities in the competitive market place. Determine the external environments and internal
environments as well as condition of business.
 Strengths: The strength of the Unilever is the internal strategic factors and it based on
the business conditions and organization structure, production process and human
resources of company (Lawrence, Rasche and Kenny, 2019). The company have the
strong brand image, economics of scales, broad products mix and strong global presence
which are significant strength of the Unilever company. The company also have the
sustainable growth and success in the consumer good industry.
 Weakness: the company have the strong market position and competitive advantages but
Unilever have limits in the potential growth. The company is weak in the diversification
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of products, imitable products and dependence on retailers as well as innovation is the
biggest weaknesses of company.
 Opportunities: There are various opportunities for the company o develop in the
competitive market and become success in the consumer good market (Cheng, 2021).
Company can diverse the business, market developments, products innovation regarding
health and company can also enhance the business for the environmental conservation.
 Threats: External factor are also reduce the efficiency of Unilever business productivity
and performance. There are various relevant threats which face by the company such as
product imitation, difficult competition rivalry and decrease the business market share
and financial performance of organization.
Ansoff growth vector matrix
The Ansoff growth matrix is the core strategy tools which are used to analyse the global
business and different direction in business which are required in the organization to achieve the
competitive marketplace and position in the market. There are four Ansoff growth vector matrix
which helps in increase the market share of Unilever company with the helps of market
penetrations, product developments, market developments and diversification.
 Market penetration: In this strategy the company present the existing products in the
enhancing market share firms (Auma and Waithaka, 2020). This helps in minimize the
risk of company also helps in provide the opportunities to business to improve the
markets share s and also enhance the company marketing efforts. The Unilever company
also ensure about the market growth, current capabilities, resources, etc.
 Market developments: The company expand its existing products in the new existing
market. This is the most suitable for the organization and that have the resources and
capabilities to enter the new market for the growth and developments of organization.
The market developments is riskier for the Unilever as compare to the market
penetrations.
 Product development's: the product developments are most important for the Unilever
company to became success in the competitive market. The Unilever company also can
launch the new products in the existing market (Adrian, 2018). The company also launch
its brand image and brand values in the market for meet the perceptions and expectation
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of customers in existing marketplace. This is also riskier for company because the
company switch to existing products from new products so, the company get hope the
customers will like the new products and services of company.
 Diversification: in the diversification, Unilever company launch the new products in the
new market for the growth and developments of organization as well as wants to achieve
the success in the competitive market place and gain the new customer base, it is riskier
than the every strategy in the Ansoff matrix. It is the high risk strategy and opportunities
for company to gain high returns for the organization. The new products in the new
market may be not received by the customers and it is costly because require the
advertising and manufacturing process of new products.
P2
McKinsey 7s model
This model framework are used by the Unilever company to analyse the competition
strategy, human resource's framework, value statements, technology, value statements,
management information systems, organization culture and competitive strategy, etc. these
models have 7 key elements such as skills, strategy. Shared values, staff, styles and structure.
This helps in analyse the complexity and understand the business organization in better ways
(Cox, Pinfield and Rutter, 2018). This strategy tools helps in achieve the objectives and goals in
desired way and it is the strategic planning tools.
 Systems: There are various systems which must be managed the business in the
consumer good industry in the technological systems with the business operations,
informal and formal process to manage the planning, budgeting, resources allocation,
performance measurements and management information systems.
 Strategy: The strategy which are managed by the company in the competitive market
place o gain the competitive advantages that how the strategy is leveraging and
articulating its competitive advantages.
 Shared values: In the shared values, its is the core beliefs of business that are widely
shared the business and it also reasons for existence. The shared values of the business
includes the mission, vision, and values statements that are provided the workers and
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employees a common goals and purpose. It shared the reason what organization is doing
and why it is doing.
 Structure: It consists the organizational structure, business chain of command,
authorities and responsibilities which are distributed, reporting and activities is structured
and structure the organization ordination between the employees and manager of business
with all activities.
 Skills: It consists the core competencies skills which are most important for the business
to know the business in effective and efficient ways (Gechkova and Kaleeva, 2020).
Analyse the employees skills which are most important for boost the business
productivity and profitability and organization also needs to make changes in the
business and systems, procedure, technology and process to align with the employees
skills.
 Style: The Unilever organization have its own culture and style. The organizational
culture and style includes the leadership style in the organization, beliefs, values, work
culture, management style and informal network among the organization employees.
 Staff: The staff analyse that how many works and who works in the Unilever as well as
how the Unilever company manage its human resources with the training and
developments, career, promotions and recruits.
VRIO/VRON strategy
VRIO models helps in analyse the significant resources to the organization. The VRIO
refer as the value of resources in business, rareness, imitation and organizational competence. It
is the resources which are focused on the strategic analysis tools. The Unilever company use the
VRIO strategy to build the competitive advantages in the market for understanding the role of
resources within the organization as well as overall organization models (Lopes, 2018). This
models helps in analysis the sustainability and tea Unilever for enjoy the average-able profits in
the competitive industry. There are two types of resources in the company such as tangible and
non tangible products. The tangible products of Unilever is referred as the plant, equipments,
products, land, etc. the intangible resources are referred as the intellectual property, copyrights,
trademarks, etc.
There are four components which are included the VRIO used in the tea and sustainability at
Unilever. Its analysis is valuable, rare, imitate and organizational competencies.
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P3
Porter five forces of Unilever
The company have the various external environmental factors which operates in the
global consumer good industry. There are the five forces which impact the business and affect
the Unilever company that are following:
 Competition: In the Unilever industry, the competition are strong because there are large
numbers of firms in the consumer good market, fewer opportunities of switch cost. The
company face the tough and difficult competitive experience in the competitive market
place but any company cannot be easily beat the Unilever company in the competitive
advantages so, the competitiveness are high force in the consumer goods industry
environments.
 Bargaining power of buyers: The external factors leads the strong bargaining power of
customers and buyers in the consumers good market. Company depend on the customer's
response on its products (Juliana and Nyoman, 2019). The low switch cost are also high
because it easy for the customers to switch from one company to another company. The
customers also gets the high quality of information about the company consumers good
and it easy for the customers to transferred from company products to another company
product. The small size of customers buyers are not directly impact on the company
profitability and productivity. The bargaining power is the strongest which affects the
consumer good market and industry.
 Bargaining power of suppliers: The suppliers of company also affects the company and
it presents the influence of business suppliers on the company. There are the moderate
forces of the bargaining power of suppliers on the consumer good company. Unilever
have the large number of suppliers such as the foreign company that supply the various
products such as oil and paper. There are moderate forces of all the supply and
population of suppliers, but they have the limit influence of business.
 Threats of substitutes: The company substitutes can reduce the strength and revenues of
organization in the consumer goods market and industry environments. The external
environment of company are responsible for the low threats of substitutes. If the products
cost are low then the customers can easily with the substitutes product of business. There
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re weak substitutes of products because Unilever company products are more attractive
than the other substitutes products. The chances of cost switch is low in this industry and
the new entrants can also face the legal requirements which are most difficult in the
consumer goods industry and market environment.
 Threats of new entrants: Company compete with the new firms and established firm in
the consumer good industry. The external factors consist the low threats of new entrants.
The low switch cost are helps in impose the other firms in the competitive market and but
company bear it costly so, there are low threats of entrants in Unilever industry
environments as well as company take the benefits of large economics of scale.
Porters five force model
the porters five force model is one of the effective model for delivering the competitive
advantages in the domestic as well as international marketplace. The organization considers this
strategy for entering the new marketplace. The certain strategies allow the organization Unilever
in the strategic planning for the company. With the assistance of this model the organization is
able to deal with the forthcoming challenges.
 Cost and leadership strategy deliver assistance in understanding the pricing method of the
product and services of the association. It helps the organization in dealing with the
issues and allow the company to deal with the forthcoming challenges in effective as well
as efficient manner. As per the market value the organization bring the balance between
the competition and profit (Ali, and Anwar, 2021)
 Differentiation strategy is another element of plans of action which the organization will
us to launch the product and services in the marketplace in order to satisfy large numbers
of the customers in an appropriate manner.
 Focus strategy it is the another strategy which the organization can use to value different
types of marketing. As the company offer wide range of the product and services to the
different customers it is hard for the company to focus the perceptive market in context to
increase the brand value.
Extended model of Bowman strategy clock
It is one of the effective model for the plans of action which is founded by the Bowman and it is
renowned as the Bowman strategy clock. the model is consisting of the 8 elements which deliver
the values to the potential customers of the organisation. the elements include low price and
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added value, low price, hybrid, differentiation, focused differentiation, risk high margins,
monopole pricing as well as loss of market shares. The unalive is the one of the largest
company that offer the wide range of the product and services to the consumers of the
organisation. in context to that the diversification strategy is one of the best best and significant
strategy for the association. it is important for the company is to increase the share in the
marketplace for the survival and growth (Eikelenboom, and de Jong, , 2021). As the pricing of
the material is enhancing the company has the opportunity to form alliances with the other
organisation. apart from that the company can expend the market in the various international
boundaries. For increasing the values of the company, the association can consider the factor of
the globalization which are culture, communication, languages, technology and legal system.
The company has the opportunity to attract the large numbers of the customers and deliver the
values in the marketplace.
Producing a strategic planning that has the tangible and tactical strategies
Priorities and objective
1. the objective of the organisation is to increase the satisfaction of the pontifical customers
in effective as well as efficient manner.
2. the mi of the company is to boost the sales of the company by 20 % at the ned of
financial year.
3. Another objective of the organisation is to increase market shares of the company in
domestic as well as international marketplace.
Mission: the mission of the company is to deliver the best quality product to the consumer
and improve their lifestyle in effective as well as efficient manner.
Vision: to deliver the sustainable lifestyle to the people and survive in the marketplace for
the long period of time.
The organisation considers the verity of the factors for formulation of the plans of action for the
welfare or the long term survival in the marketplace. It will deliver assistance in addressing the
taste and preferences of the consumer and deliver the better experiences to them. along with that
the organisation is able to deal with the forthcoming challenges in an appropriate manner. in
order to increase the value of the company in the particular marketplace the transition can target
the market and determine the requirement in an appropriate manner(Hristov, and
Appolloni2022). for that the focus strategy of the company will more suitable for the association.
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furthermore, it delivers the competitive advantages in the various marketplace and allow the
organisation to lead the market and defeat the compaction in the marketplace.
Marketing mix
Product: the unalive will over the innovative product and services in the domestic as well as
international marketplace. along with that the organisation will deliver the product and services
as per the taste and preferences of the individual person. The organisation will conduct the
research on the market and demand of the marketplace in order to satisfy the large numbers of
the customers and deliver the right product to the right consumers. As each and every person has
their own willingness of buying the product so the company provide the various product to the
consumers.
Price: for delivering the values to the consumer Theo organisation offer the product and services
at the lower prices in effective as well as efficient manner. the prices of the commodity are lower
which is affordable by every consumer. in context to that that the organisation is willing to
increase the sales of the company and maximised the profitability of the company. basically the
company offer the best quality and standard product to the consumer at minimum price which
increase the image of the brand in the marketplace, also the company is attracting the large
numbers of customers toward the brands(Kong and et.al., 2020). For sealing the good and
services in domestic as well as international marketplace the strategy of the company is to
deliver the product at the cheap price.
Promotion: for the promotion of the product and services the organisations strategy is to
increase the award less among the people with the utilization of various sources of online
platforms that includes Facebook, Instagram, google, pint rest, twitter, WhatsApp, snapchat etc.
in the modern period of time the large numbers of the people are engaged on the various social
media sites and the individual person or the potential customers of the origination make the
decision on the basis reviews and comments on the online sites. For the promotion of the product
and services the organisation will deliver offer discount, bonuses, and vouchers on the special
occasion for instance the occasion of the new year. It will increase the interest of the consumer
and motivate them to buy the product and services in effective as well as efficient manner.
Place: for delivering the product and services to the consumer in order to meet their requirement
the organisation will place the product on the online as well as offline stores. For increasing the
productivity or sales of the company the Unalive will display the product and services on the
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physical as well as online stores. It will deliver the comfortability to the consumer as the
organisation will also provide the home deliver facilities to the people.
Implementation
For increasing and expending the market shares of the company the organisation will increase
the network with the utilization of the technology and develop the great bond with the variety of
the people(Olsonand et.al., 2021). Along with that the organisation will work on the various
strategies for instance the organisation will bring the innovation and creativity in the product and
services of the company in short period of time as per the taste and preferences of the company.
conclusion
From the above report it will be concluded that the for success and survival of the company it is
essential to have adequate business strategy. The Unilever has the opportunity to increase the
value of the company in domestic as well as international marketplace. with the assistance of the
analysation the organisation is able to determine the essential requirement for the business in
effective as well as efficient manner. with the help of that the organisation is able to deliver the
competitive advantages in the different marketplace. the models and theories used in the report
deliver the idea of performing and operating the operation of the company to increase the values
as well as productivity of the company. on the basis of the micro and macro factor the
organisation is able to deal with the forthcoming challenges and prepare the effective and
efficient business strategy. The advancement in technology is one of the adequate factor that
increase the sales of the company and deliver values to the customers.
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