Strategic Management and Planning: A Critical Assessment of Unilever's Business Plan

This report provides a critical assessment of the strategic management and planning process used by Unilever, including an evaluation of the impact of internal and external environmental variation on organisational strategy. It also includes a review of Unilever's business plan and an action plan for the organisation based on a change in either the internal or external environment.

BSc (Hons) Business Management Top up
BMP6002 Strategic Management
Strategic Planning
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Contents
Introduction 3
Definition of strategic management 3
A critical assessment of the process used by organisations to
determine their strategy 4
A critical evaluation of the impact of internal and external
environmental variation on organisational strategy 6
A review of an organisation’s strategic plan (Business Plan),
providing an action plan for the organisation on the basis of a
change in either the internal OR external environment. (The
Business Plan is included as an Appendix) 8
Conclusion 10
References 11
Appendix 12
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Introduction
Strategic management is process of forming goals and procedures in order to
achieve more competitive advantage in market for company (Ansoff and et. al.,
2018). It refers to the process of effective operations of employees and resources to
achieve organisational goals. Strategic management in company includes the proper
evaluation of strategies, internal analysis and execution of the strategies in company.
Strategic management also known as the management of resources available in
organisation in direction through which companies can achieve their goals. This term
involves the setting of objectives, analysing external and internal environment,
evaluating strategies in order to manage the operations in company. Various
companies can use this technique to attain the desired goals despite of changing
business environment (Bryson and et. al., 2022). This strategy can be beneficial for
company in analysing their current situation, help them in implementing strategies,
evaluate the effectiveness of these strategies for growth in market. Unilever is the
chosen organisation for this report. Company is dealing in consumer goods and
operates globally with head offices at London. Unilever was founded in the year
1929 and was merger between Margarine Unie and Lever Brothers. Unilever has
many diversifications such as cleaning tools, beauty products, cosmetics, personal
care, foods and many more. Company has its operations among 190 countries and
continuously growing at international market. This report has detailed illustration
about the strategic management and its importance in company. It also defines the
strategic process through which company analyse their strategies and objectives.
After that, report has explanation about the internal and external environment of
business which impact operations and strategies of Unilever company. In last in this
report, it has detailed business plan in order to implement the change effectively in
organisation.
Definition of strategic management
Strategic management is the process of setting and implementation major
tasks in organisation on behalf of its investors and shareholders (Chambers and
Taylor, 2019). It includes the proper evaluation of the competitive environment in
which company operates. Unilever company has objective to drive the positive
change with their products. For achieving this goal Unilever should implement
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effective strategies and make decisions in direction to achieve goals set by
management team. Strategic management planning gives the overall direction
through developing plans, policies, rules and regulations to assists in achieving goals
of company. Unilever uses the strategy of broad differentiation which is beneficial for
competitive advantage in market. This strategy of Unilever help them in high lighting
features of products and make companies products to stand out from competitors
products in market. Strategic management is based on the companies culture,
structure and values of employees and human resources.
Unilever's manager have clear understanding about the concepts and aim
behind the formation of business (Elliott-Engel, Westfall-Rudd and Corkins, 2021).
Mangers implement the strategies which help company to accomplish their goals
and missions. This strategic planning in Unilever company help them in
implementing the policies and decisions in direction from which they can initiate their
operations in accordance to achieve organisation needs. This function of strategy
formation requires the evaluation of both internal and external environment in which
company operates. This analysis process is necessary in order to examine the
business environment and plan strategies according to future opportunities of
growth.
Strategic management is not limited with large companies, it can be used by
any organisation instead of their sizes, shape and structure. This process of
implementing strategies defines the various step involved in the process and have
impact on success force of company in competitive market. It also provides the
benefit from which Unilever can sustain their position despite of high level
competition in international market. Unilever has implemented the change of
developing more healthy and hygienic food products due to the rise in health issues
after COVID 19. They started the process of development more health conscious
products in market which reflects the benefit of more competitive advantage.
A critical assessment of the process used by
organisations to determine their strategy
Strategy contains the plan of action by the managers of company to achieve
the universal growth of generating profit. Strategy planning defines the success of
company which is essential for the growth for them (Frue, 2020). Strategic planning
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is the process of developing visions, goals and missions for futuristic growth of
company by the managerial level person. Strategic planning in Unilever company
help them in focusing on their short term as well long term goals. This concept of
strategic management in Unilever company lead them towards the effective
implementation of decisions regarding change and evaluating the result. Unilever
has to follow the proper steps defined in the strategic planning process in order to
implement the change effectively to earn more profit in competitive market. Major
elements required in the process of strategy formation in Unilever company that are -
Analysis of environment – This factor includes the scanning of business
environment in which company operates (Guarini, Mori and Zuffada, 2021). It
contains the evaluation of internal as well external analysis with the help of PESTLE
and SWOT frame works. Unilever with the help of these both methods can
determines the major factors that have impact on the functional areas of company
and need to be improved or modified.
Setting organisational goals – After evaluating the external forces, Unilever
now finds the purpose behind their existence in corporate sector that is to earn more
profit. Unilever has objective to serve customers a better, healthy and hygienic food
product with more benefits to its customers to make their immunity strong in COVID
19 pandemic situation. Strategic planning help Unilever company to achieve their
organisational goals with more sustainability in market.
Strategy formation – This term is related with the development of strategy
according to the change rectified with the help of external environment analysis
(Hanlon, 2019). After collecting all relevant information and data regarding change
from business environment and make decisions to manage change effectively in
organisation. This step help managers of Unilever to take necessary action in order
to implement change and achieve success.
Implementation of strategy – After developing the strategies and
regulations, Unilever works in direction to execute them in operations of company
(Kemp, 2018). This force contains the implementation of desired change in whole
company to generate more profit from the driver of change in external environment.
Unilever implement different kind of policies, rules and decision strategies to manage
the employees and guide them through the process of change.
Evaluation of Strategy – In this final step of strategic planning, managers
analyse the performance of employees in accordance with change in operations.
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Unilever compares the work done by employees with their standard work chart and
ensures the growth in productivity of employees as well. After comparing the
performance, Unilever takes the necessary steps to overcome the deviation and
motivate them to increase their efficiency level.
A critical evaluation of the impact of internal and external
environmental variation on organisational strategy
To evaluate the internal and external environment of business to form a strategy in
company, they have to evaluate environment with the help of SWOT and PESTLE
analysis (Krier, 2022). SWOT analysis will help Unilever company in providing the
better growth opportunities and make them aware about threats to come in future.
PESTLE analysis will provide the factors which affect business from outside.
SWOT Analysis -
SWOT analysis is frame work used to identify the organisation's strengths,
weakness, opportunities and threat factors related to the specific task or project in
company (Mallon, 2019). With this model, Unilever was able to develop the more
awareness about the factors involved in decisions making process of company. This
method contains the exploring new initiatives, improving the internal policies and
regulations and to consider the future growth opportunities in expand business
operations of Unilever. Here's the SWOT analysis has been done in accordance with
Unilever company is as follows -
STRENGTHS WEAKNESSES
 Global footprint – Unilever has
its operations in around 190
countries which can be considered
as strength of company and
provides a major benefit to
company of generating high return
on investment.
 Diversified products – Unilever
has various diversification in its
product offering such as they
serve customers in home decors,
food items, cosmetics and beauty
products as well.
 Retailer dependence – Unilever
is dependable on its suppliers and
retailers in order to move products
from company to its customers
and this process of distribution
increases the cost input in
production method. This can be a
weakness to Unilever company
and has to be rectified.
 Substitute products – Unilever
deals in consumer goods which
are easily available in market
through their competitors and
increase the level of competition
to company. This gives the
customers more power to switch
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from one company to another with
price difference and make huge
loss to company.
OPPORTUNITY THREATS
 Digital marketing – Unilever has
an great opportunity to start the
digital marketing function in
company to promote their
products to wide range of
customers available in
international market.
 Healthy food products –
Unilever has opportunity to
develop more healthy and
hygienic food products. As
Customers are now more aware
about the health factors and have
increased the level of hygienic
after COVID 19 to ensure their
safety from virus.
 Competition – Unilever as
company with consumer goods
have many competitors available
in the market and make them
more uncertain about the stability.
This threat has been over come
with the help of product
development development
strategy. They can differentiate
their products from competitors to
gain advantage.
 COVID 19 – During pandemic
situation, many companies has to
face challenges to sustain their
position and make them survive
the lock down. Unilever along with
many companies face this
challenge and successfully came
out of this situation with extra
creativity and efficiently in
competitive environment. They
have started the service of home
delivery and online shopping.
PESTLE Analysis -
This method is commonly used by companies to evaluate the macro
environmental factors used as element in strategic management process of
company (Perlmutter, 2019). This PESTLE analysis has been used by the managers
of company to get clear understanding of strategic and risk management in large
organisations. With the help of this frame work, Unilever can improve their over all
functionality and operations in effective manner. Some of the factors included in this
factor are explained below -
Political factors – This force is related with the government policies, their
rules and regulations which can affect the business and its operations (Pessima and
Dietz, 2019). Unilever always has its main focus on identifying the future challenges
to come and get time to prepare for change it reflects in company. Unilever can bring
the new changes in their policies and rules according to the government restrictions
which can be beneficial for the growth of company with expansion in their operations.
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Economic factors – In this force of PESTLE analysis contains the trade
restrictions, trade policies, interest rates and exchange rates in country. Different
country has its own policies and rate of interest, which can be evaluated effectively
before expanding business at international market. Unilever can change their
strategies according to the countries rate of exchange and can gain more
competitive advantage in market.
Social factors – This force has its major concern with the social values,
trends and culture that is followed by country and its people. Unilever should focus
on the life style of their customers with their needs and preferences. This
identification of their needs will help them in achieving more profit through customer
satisfaction.
Technological factors – This term is related with the technology changes in
market. Unilever has effective managers and staff which ensures the proper usage
of their skills and capabilities to perform specific task. Unilever can improve their
online infrastructure, their online applications and stores to get connected with large
number of customers available at global level.
Legal factors – This term has major concern with license and industrial
regulation to be followed by company. Unilever should know about the whole
process of operating business in different country and should have knowledge about
their licensing process also.
Environmental factors – This term is related with the corporate social
responsibility to be performed by company in order to maintain the environment
clean and safe. Unilever has many strategies which help them in sustaining their
position and bring more awareness about the climate change issues. This includes
the global warming issues, climate change and green house gas emissions.
A review of an organisation’s strategic plan (Business
Plan), providing an action plan for the organisation on the
basis of a change in either the internal OR external
environment (The Business Plan is included as an
Appendix)
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Strategic planning in company evaluates the current environment of business
internally ans externally as well (Teoli, Sanvictores and An, 2019). This term
strategic management reflects the direction in which company operates and achieve
their desired goals and tasks. This term strategic planning directs the whole
organisation in one direction to attain their goals with the help of various strategies.
Managers of company has proper evaluation of their objectives in order to implement
strategies useful to accomplish goals. This includes the guideline in which
employees and staff gets to now about work that has to be done and make them
motivate to achieve targets. Strategic business plan in necessary for Unilever
company to implement change effectively and requires to over come the barriers
along with change initiate. Strategies plays vital role in company which reflects the
direction in which company operates. Unilever with the help of PESTLE and SWOT
analysis analyse their micro and macro environment factors to gain future
opportunities and prepare them self to over come future threat arises in business.
Unilever can also use these methods to expand their business operations according
to their key strength and capabilities (Valeri, 2021). This method of SWOT analysis
provides the growth factor in company and make strategies according to their
strengths elements. This make Unilever company to adopt fast change in company
and make them more efficient in dynamic business environment. Unilever's
managers always seek the growth factor in their operation to increase the
productivity and sales in company.
Unilever has skilled managers with relevant knowledge which makes them more
competitive and encouraging employees for more growth through change
implementation in their strategies (Wright, 2020).
Conclusion
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From the above report, it has been concluded that strategic management
should be done effectively in company to achieve goals in organisation despite of
changing environment. Strategic management is necessary for company to cop up
with the change in external environment in which company operates. In this report,
Unilever is the company chosen and it brings the change of more hygienic and
healthy food items to bring the awareness about health related issues. This report
evaluates the internal as well as external environment with the help of SWOT and
PESTLE analysis. Different techniques has been used to implement the strategy
effectively in organ and make sure to achieve certain goals of Unilever company.
References
Ansoff and et. al., 2018. Implanting strategic management. Springer.
Bryson and et. al., 2022. Toward a more strategic view of strategic planning
research. Taylor & Francis.Bryson, J.M., Edwards, L.H. and Van Slyke, D.M.
eds., 2022. Toward a more strategic view of strategic planning research.
Taylor & Francis.
Chambers, L.D. and Taylor, M.A., 2019. Strategic planning: Processes, tools and
outcomes. Routledge.
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Elliott-Engel, J., Westfall-Rudd, D. and Corkins, C., 2021. Engaging stakeholders in
Extension strategic planning. The Journal of Extension, 59(4). p.3.
Frue, K., 2020. PEST analysis ultimate guide: Definition, template,
examples. PESTLE Analysis.
Guarini, E., Mori, E. and Zuffada, E., 2021. New development: Embedding the SDGs
in city strategic planning and management. Public Money &
Management, 41(6). pp.494-497.
Hanlon, A., 2019. Digital marketing: strategic planning & integration. Sage.
Kemp, R.L., 2018. Strategic planning in local government. Routledge.
Krier, L., 2022. Shared Leadership and Effective Strategic Planning. Journal of
Library Administration, pp.1-32.
Mallon, W.T., 2019. Does strategic planning matter?. Academic Medicine, 94(10).
pp.1408-1411.
Perlmutter, D.D., 2019. How to Manage the Strategic-Planning Process. The
Chronicle of Higher Education, 66(6). pp.A36-A36.
Pessima, J.D. and Dietz, B., 2019. Global strategic planning. The Wiley handbook of
global workplace learning, pp.141-154.
Teoli, D., Sanvictores, T. and An, J., 2019. SWOT analysis.
Valeri, M., 2021. Organizational studies: implications for the strategic management.
Springer Nature.
Wright, P., 2020. Strategic planning: a collaborative process. Nursing
Management, 51(4). pp.40-47.
Appendix: The Business Plan
Executive summary – Unilever is British multinational company with offering
consumer goods and has its operation in more then 180 plus countries and they
have objective to grow more in international market. Due to the COVID 19 crisis,
Unilever has decided to bring the health change in their services through product
development strategy. To overcome the barrier arises due to external change, they
initiated the term health food products.
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Back ground – Unilever is company founded in the year 1929, by William
Lever in the city of United Kingdom. Business at that time has aim of selling soap
and margarine products but later on comes with expanding their business in late
1930's in South Africa and Latin America.
Market analysis – It specifies the factors which had impact on market with
their services and products deliver by company. Market analysis has been done in
accordance to gain the beneficial aspects of customers and their needs so Unilever
can implement strategies according to them.
Objective – Unilever has its main objective to transform the lives of
customers with their products and services. They have also objective of creating
awareness about the health, well being, laws and social norms to general society.
Monitoring and Controlling – To accomplish the objectives of organisation,
managers has to evaluate each factor including their strategies and policies.
Effective use of skills and knowledge of employees will help them in achieving their
goals. COVID 19 has huge impact on the business operation and to over come this,
Unilever has implemented the strategy of providing more health conscious food
products and create awareness in customers about hygiene factor.
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