Strategic Management Plan for Unilever: Analyzing PESTLE and SWOT Analysis, Applying Porter’s Five Forces Model, and Devising Appropriate Strategies

This report discusses the importance of strategic management for Unilever, a British multinational organization. It includes PESTLE and SWOT analysis, Porter’s Five Forces model, and appropriate strategies to improve competitive edge and market position. The report also provides recommendations and monitoring strategies to drive the company's performance at a higher level.

Business strategy

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Analysing PESTLE and SWOT analysis to examine organization's capacity and capabilities...3
PESTLE analysis:........................................................................................................................4
Applying Porter’s Five Forces model of an organization............................................................6
Devising appropriate strategies to improve the competitive edge and market positions.............7
Justification of the organization’s existing and potential competitive
advantage....................................................................................................................................7
Mentioning valid strategies and tactical objectives to achieve overall strategic objectives........7
Producing a strategic management plan that has tangible and tactical
objectives....................................................................................................................................9
Evaluating the different types of strategic directions available to the company Unilever..........9
Justifying and recommending the most appropriate growth platforms and the strategies
available to Unilever..................................................................................................................10
Evaluating ways and strategies which can be monitored in order to
ensure success...........................................................................................................................11
CONCLUSION..............................................................................................................................11
REFERENCES................................................................................................................................1

INTRODUCTION
Strategic management is the process which includes the ongoing planning, monitoring
and a proper analysis of all the necessities of the organization which can help them to understand
and meet the goals and objectives. Unilever plc is a British multinational organization which is
headquartered at London, United Kingdom. The company is growing and developing in day to
day life with the proper implementation of the strategic methods and techniques. The report will
illustrate the concept and importance of strategic management for the better growth and
development of the business (Petera, Wagner and Šoljaková, 2020). Also, this report will also
include macro and micro environmental analysis along with a proper identification and
justification of the competitive analysis which the company uses and supports them to achieve
their set goals. In addition, it highlights the relevant strategies and tactical objectives and
produced a strategic management plan in appropriate way. Furthermore, it will mention some
valid recommendations and a monitoring strategies which overall help and support the business
to drive their performance at higher and successful level.
MAIN BODY
PART A
Analysing PESTLE and SWOT analysis to examine organization's capacity and capabilities
SWOT analysis
Strength: Strength lies in capabilities of firm, if business is capable enough to manage their
operation then they can capture the market. Unilever is one of the most powerful retail brand
dealing in more than 190 countries, this company is capable enough to manage demand of
consumer from different nation (GURL, 2017). Unilever is well-known for their quality product
in affordable price range, this company provide neck to neck competition to their competitors.
Strength of Unilever lies in their brand name, this company have wide range of product which
allow them to cover important area of highly competitive market.
Weakness: Weakness of Unilever lies in distribution structure, this company mainly depend on
retailer and whole seller to clear their inventory, due to this, they loss grip in the market.
Unilever do not have strong logistic management, they do not have big stores like their
competitors including Tesco and P&G. Weakness of Unilever lies in imitable products which can
easily be copied, there are many cases where Unilever faced huge competition because their

product line was copied by the competitors. Unilever is facing slow decrease in retail market,
this company is now moving towards end because of heavy competition in the market.
Opportunity: Opportunity lies in improving weakness of the company, it is very best
opportunity for Unilever to capture the retail market by adding valuable brand in their store.
Unilever do not have nay stores, there presence is low as compared to competitors which means
they need to add more store and increase their reputation in the market, adding new outlet will
help them to survive the market. Unilever have opportunity to develop their own product, they
are capable enough to develop completely new product line which means opportunity to expand
within retail market is possible for the company.
Threat: Every business organization face threat, this threat is competition who are ready to bring
down company's brand image and positioning. However, Unilever have reputation in the market
because of their quality of product, but they face competition from those retail giant who are
already well-established in the market (Sarsby, 2016). Unilever face competition from P&G,
Tesco, Sainsbury and other retail brand who have wide range of product and even popular brand
consider these competitions for strategic tie up. Competitors provide tough competition to the
company which impact their positioning in the market.
PESTLE analysis:
Political factor: Government interferes in the operation of retail brands, policy and decision of
government impact firm's position in the market. UK's government have major impact on retail
brand of the nation, they provide support businesses to grow but certain decision impact retail
giant. After Brexit, government of UK decide to bring major change in trade with European
market, there was high tax rate in both nation impacting retail giants like Unilever (Adamyk,
2019). COVID-19 impact pushed UK government to bring major change in distribution of goods
across the country which impacted supply chain of Unilever, government have certain other
decision impacting Unilever in the market.
Economical factor: This is one of the most important factor which needs to be considered by
retail giant, economic stability is crucial for every business. After COVID-19 impact, economic
stability was not present in the UK, due to unstable economy and market condition, Unilever
failed to effectively deal in the market. There was high inflation rate in the UK which impacted
the production and manufacturing unit of the firm, raw material and prices of other stuff was

high which bring down the production capacity of Unilever. After Brexit, supply of labour was
also impacted, there was high demand but low supply of skilled labour.
Social factor: This is another factor which impact positioning of the firm, social factor simply
means consumer factor. After COVID-19 impact, buying behaviour of consumer is changed,
they are spending less on FMCG products which means Unilever is facing huge issue in the
market. Income level of consumer also been impacted, firm dealing in elite customer segment
faced the impact, Unilever even have to bring prices of some products low to keep customer
satisfied in the market. However, brand loyalty can be seen in the case of Unilever, this company
have ability to retain their consumer.
Technological factor: This is one of the most important factor which allow company to improve
their internal stability, technological advancement does matter when it comes to retail industry
(Christodoulou and Cullinane, 2019). Unilever is one of those companies who have advance
technology allowing them to cover both hardware and software technological advancement.
However, due to rapid change in technology, Unilever failed to upgrade as per the requirement
of the industry. Competitors of Unilever have advance technology which allow them to position
themselves in the market.
Legal factor: This is one of the most important factor in which company need to focus on
fulfilling the legal requirement, this may include all legislative, laws and policy requirement.
Unilever is multinational corporation which deals in more than 190 countries face legal
restriction from different nation, this company update their policy according to the market and
nation demand. However, legal factor was never an issue for Unilever because they are retail
giant and nation demand them to deal in their market. Legal factors may impact firm's
performance if company do not have proper structure.
Environmental factor: This is key important factor in today's world, company need to consider
environmental as important factor because both government and consumer are demanding
sustainable measure from these retail giant (Perera, 2017). It is very clear that environmental
factors are critical in which company gain reputation and brand image in the market, this factor
allows Unilever to manage their brand image in the market. However, government of UK is
demanding retailer to focus on plastic ban, they might face serious issue of compulsory plastic
ban is implemented by the government on Unilever and other retail brand.

Applying Porter’s Five Forces model of an organization
To run any business or an organization, it is important for an individual to identify and
grab the knowledge of the competitive environment from where the particular company can run
and obtain the successful outcome and results (Dimitrios, Christos, Ioannis and et.al., 2020).
Unilever is a multinational organization where they implement the competitive model at their
workplace which helps them to identify the competition in the market in appropriate manner and
can acquire the profitable outcome and result. Here, demonstrating the model named Porter five
forces which delivers the effective result to the company.
New entrants: Unilever is a well-known organization who is able to perform well in their
market and can obtain the profitable outcome. The company outs their prices affordable and
delivers the high quality of products and services which influences the customer in effective
manner and overcome the risk and threat of new entrants.
Power of supplier: The bargaining power of supplier is very low because the company has large
number of supplier at their workplace from which the company Unilever is able to get the
profitable result and also able to supply the goods and items in geographical area which satisfy
the customers as well.
Power of customer: Unilever delivers the products and items at affordable and valid range
where customers also support and stay loyal with the company which reduces the power of
customer in negotiation and provides the appropriate amount of results. Also, the company puts
their focus on the customer satisfaction which makes them to approach the wider quantity of
customers within the store and increases their productivity level.
Competitive rivalry: In today's world, the competition in retail industry is increasing day by
day, where the company Unilever is able to face the competition in the market and already
prepared for the further actions and results (Doktoralina and Apollo, 2019). Morrisons and
Sainsbury are the huge competition for the Unilever where with the high customer service and
affordable prices of the items reduces the competition.
Threat of substitution: The threat of substitution increase when the another company brings
innovation in their products and services which attracts the number of customers at their
workplace. Unilever has the lowest risk of substitution because the company always goes with

the trends and delivers the services in appropriate and effective manner which bounds the
customer within their company.
Devising appropriate strategies to improve the competitive edge and market positions
Unilever company can adopt the appropriate strategies to minimize the risk of
competition in the market and can get the successful outcome and results. The company can keep
their more focus on new trend and innovation which can help and support them to influence the
large number of customers at their organization and can easily lead the company to higher
position.
Justification of the organization’s existing and potential competitive
advantage
The company Unilever is a multinational organization who puts their best efforts and
knowledge in delivering the effective results and outcome to the company. The company always
keeps their focus on delivering the different products to the customers from which a
differentiation quality makes the company's products unique which helps them to sell the
products in wider quantity. Differentiation strategy makes the company to improve their
customer scale and can boost up their productivity level in effective manner (Simandan, 2019).
Also, the prices of the products of Unilever has been set in relevant and affordable manner from
which the customer are highly satisfied to pay the amount in exchange for the products and items
they desire for. A customer satisfaction is one of the best factor an individual company should
keep their concern from where the Unilever pricing strategy is very beneficial and advantageous
for them and supports them to obtain the profitable outcome. Along with this, the human capital
of the company is very effective where they hire and recruit the skilled and talented employee at
their organization which results them in successful manner.
Mentioning valid strategies and tactical objectives to achieve overall strategic objectives
Unilever company can adopt and implement the valid strategies and models to achieve
the overall strategic objectives and success in effective manner (Tennent, 2020). Here,
mentioning the model named Bower's strategy clock which Unilever can use and acquire the
profitable outcome and results in effective manner.
Low price & low value added: the first step of the model describes that the company needs to
put the prices of the products and services lower for the quantity amount of selling which helps
them to increase their productivity level. Unilever company can keep their production in huge

quantity and by putting the cost of the products lower from where the customer's will be able to
purchase the products in highly manner which overall help the company to achieve their set
goals and targets. Thus, this overall strategy is for wider selling of the products.
Low price: Each and every business or company has required to keep the lowest price option of
the product from which the customer can buy the items in effective manner where the
implementation of this strategy will have low margins and reduces the cost of the production
which provides the profitable outcome to the company.
Hybrid: The hybrid positions refers to balance the cost and differentiation of the product from
where the company can be able to approach the maximum number of customer at their
organization and can develop their business in effective manner (Song, Wang and Zhu, 2018).
The company Unilever can maintain the prices of the products and keep the option of the lowest
cost with the differentiation of the items and services which supports them to obtain successful
outcome.
Differentiation: Differentiation strategy is one of the best technique the company Unilever can
use and implement at their workplace which boost up the products sales in wider manner.
Differentiation simply refers and can be understood by developing and bringing the innovation in
the company which can deliver the appropriate result and outcome and leads the business at
higher position.
Focused differentiation: The focused differentiation relates to providing high value at high
price where the company can provide the products and items in effective manner within high
pricing structure which can provide the effectiveness to the company and helps to attract the
customer accordingly. For example, the Apple company launches I phone which is different
from other products even at high price but still customer want and desire to but the product.
Risky High Margins: To run any business or an organization, it is important to understand and
adopt the strategies which can provide the appropriate results and outcome to the company.
Unilever company have to select and implement the appropriate strategy at their workplace as
high pricing point without any perceived added value which can deliver the effective outcome
and results.
Monopoly pricing: In monopoly market, single company controls the products and pricing
which includes price points, value and competitors. In other terms, it is a kind of pricing strategy

which is followed by the sellers where they put the price of the product to maximize the profits
under the assumptions.
Loss of market share: The last step of the strategy defines as the worst position and suggest the
company is existing in the market or decline already. The loss of market share will provide the
negative outcome which results the company in inappropriate manner.
Producing a strategic management plan that has tangible and tactical
objectives
Unilever company is essentially required to adopt and implement the strategic management plan
which can help them to achieve their set goals and objective in definite manner and can lead the
company at higher position (Mukhezakule and Tefera, 2019). The strategic planning includes the
different factor like creation of proper vision and mission, implementation of strategic tactics and
ideologies, a proper marketing process and procedure and even a well-structured action planning
which can identify the areas of improvement and process of adoption of the relevant steps and
factor for the profitable results and outcome.
PART B
Evaluating the different types of strategic directions available to the company Unilever
Strategic direction is referred to the set of divisions and the activities that the company
makes time to time in order to achieve the organization goals (Liu, Jarrett and Maitlis, 2022). It
helps company in ensuring that all the proper decisions are being made in the favour of the
organization. (Wang, 2021) The different strategies available to the Unilever is as follows-
Forming the strategic alliance- This strategic alliance meaning is referred to the agreement
between two companies that has same goals and the objectives (He, and et.al.,2020). The
Unilever can also make strategic alliance that can benefit both the partners of the agreements.
The different type of Strategic alliance includes joint alliance, equity alliance and the non- equity
alliance. Unilever company can opt for any of them.
Outsourcing- The outsourcing is also another strategic direction where the company assigns task
of the company to the third party who handles operations and services behalf of the company.
Unilever can also outsource its product. Outsource product than will be sale in the name of the
company to the Unilever consumers.
Elimination- The most important strategic direction for the company is to eliminate unnecessary
actions that are not cost-efficient and do not contribute significant amount for achieving the goals

of the company. The Unilever company should eliminate all the task that are not in the favour of
the company's goal and the objectives like the company can eliminate the task of production and
can outsource that.
Competition- Choosing right competition that helps in enhancing the product of the company is
the best strategy that the company may follow. Competition increases the efficiency in the
market and the price, quality can be improved. The Unilever company already has high level of
competition from the other companies like the TESCO that helped company in continuously
updating its product.
Justifying and recommending the most appropriate growth platforms and the strategies available
to Unilever
Acquisition: The company can acquire small sector industries to grow its market share and at
the same time is also reduces competition from the market. This also facilitated the company in
order to have access to the new industry. The Unilever company can also acquire some small
firms in the market in order to acquire the consumer base of that company. Among this the roll-
up is getting attention in the market as it involves acquiring all the small companies. It also helps
the company n cost saving and achieve higher level of efficiency that is the need of market
today.
Strategic partnership: The partnership with other brans helps in generating the growth of the
industry in the market. Partnership is the agreement between two parties that signs the
partnership agreements and offers product and the services in the market. The Unilever can also
partner with some other big brands companies that will help them in growing their business
brand and will also focus on providing the unique products in the market. Unilever already has
launched the partner with purpose programme in 2020 that ultimate purpose is new innovations
and protect nature for the sustainable living.
Franchising: The company itself does not have capacity to open many retail outlets in all
corners of the world. There franchise plays its role as it is joint venture. The joint venture is the
contact between the franchisee and the franchisor where one gives rights to use its name and
ideas to the other companies by charging fees. The main purpose of Franchising is to build the
consumer loyalty in all over the world. Opening retail outlets in the international market may
become hectic for the company. Franchisee makes it easier and the faster. The Unilever company
can also adopt franchise as the way of growth in the international market.

Product expansion and diversification: Developing new products in the market is the best
strategy that Unilever company can follow. Product development gives new image to the brand
and attract consumers from all the counties, While the diversification is related to launching
same products into the market that has not been trapped. The Unilever company already operates
in 180+countries but still there are market and cities that need companies like the Unilever
(Sivakumar, 2021). The Unilever already has competitive advantage over the other companies as
it offers certain unique product in the market. Unique product is the reason behind the success of
the company. Those unique products can create the new image of Unilever in the new market.
Evaluating ways and strategies which can be monitored in order to
ensure success
Unilever is a huge organization who is able to grow their business in definite and successful
manner where for increasing their productivity level they should use and identify the different
strategies and ways which can help them to monitor the activities in order to ensure the success
the company can use the KPI model (Werth, Schwarzbach, Rodríguez Cardona and et.al., 2020).
KPI means a key performance indicator which can used by the management or can be said as
Unilever company to monitor the performance and can take the appropriate and relevant business
decisions about the direction of the current projects. It is important to be adopted and understand
by the company's management because it will help them to meet the business objectives and
goals and can drive the company at successful positions. Also, the Unilever company can utilize
the different strategies for the monitoring through implementation of such steps which includes
identification of the goals and objectives, defining the indicators, an appropriate data collection
process along with analysis plan and reporting. Thus, the company is essentially required to
adopt the new strategies at their organization which can help and support the business to achieve
their set goals and targets in efficient manner.
CONCLUSION
From the report, it has been seen that PESTLE and SWOT analysis both play important
role in the strategies that business forms. The Unilever company has its advantages and
disadvantage. The company has certain competitive advantages over the other companies that are
operating in the market today. Further, this report also addresses the different growth platforms

that are available to Unilever company and the ways and means that will enable the success of
the company.

REFERENCES
Books and journals
Adamyk, K., 2019. PESTLE Analysis on Unilever PLC.
Christodoulou, A. and Cullinane, K., 2019. Identifying the main opportunities and challenges
from the implementation of a port energy management system: A SWOT/PESTLE
analysis. Sustainability, 11(21), p.6046.
Dimitrios, B., Christos, P., Ioannis, R. and et.al., 2020. Strategic management in the hotel
industry: proposed strategic practices recovering from COVID-19 global
crisis. Academic Journal of Interdisciplinary Studies.9(6), pp.130-130.
Doktoralina, C. and Apollo, A., 2019. The contribution of strategic management accounting in
supply chain outcomes and logistic firm profitability. Uncertain Supply Chain
Management. 7(2), pp.145-156.
GURL, E., 2017. SWOT analysis: A theoretical review.
He, Q., and et.al.,2020. Strategic alliance research in the era of digital transformation:
Perspectives on future research. British Journal of Management.31(3). pp.589-617.
Liu, F., Jarrett, M. and Maitlis, S., 2022. Top management team constellations and their
implications for strategic decision making. The Leadership Quarterly.33(3). p.101510.
Mukhezakule, M. and Tefera, O., 2019. The relationship between corporate strategy, strategic
leadership and sustainable organisational performance: Proposing a conceptual
framework for the South African aviation industry. African Journal of Hospitality,
Tourism and Leisure, 8(3), pp.1-19.
Perera, R., 2017. The PESTLE analysis. Nerdynaut.
Petera, P., Wagner, J. and Šoljaková, L., 2020. Strategic management accounting and strategic
management: The mediating effect of performance evaluation and
rewarding. International Journal of Industrial Engineering and Management. 11(2),
pp.116-132.
Sarsby, A., 2016. SWOT analysis. Lulu. com.
Simandan, D., 2019. Iterative lagged asymmetric responses in strategic management and long-
range planning. Time & Society, 28(4), pp.1363-1381.
Sivakumar, S., 2021. Study of Internationalization Process of Unilever. Available at SSRN
3939738.
Song, Y., Wang, H. and Zhu, M., 2018. Sustainable strategy for corporate governance based on
the sentiment analysis of financial reports with CSR. Financial Innovation, 4(1), pp.1-
14.
Tennent, K.D., 2020. The age of strategy: from drucker and design to planning and porter.
In The Palgrave Handbook of Management History. (pp. 781-800). Palgrave Macmillan,
Cham.
Wang, J., 2021. Strategic Decision Making in Service Systems.
Werth, O., Schwarzbach, C., Rodríguez Cardona, and et.al., 2020. Influencing factors for the
digital transformation in the financial services sector. Zeitschrift für die gesamte
Versicherungswissenschaft, 109(2), pp.155-179.
1