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

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

Strategic management
plan

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK ..............................................................................................................................................3
P1. Impact of macro environment factors on Unilever plc.........................................................3
P.2 Analyse the internal environment and capabilities of a given organisation using
appropriate frameworks..............................................................................................................6
P.3 Porter's five forces model....................................................................................................9
P.4 Applying a range of theories, concepts and models, interpret and devise strategic planning
for a given organization............................................................................................................11
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................15

INTRODUCTION
Strategic management plan related to those frameworks under which company describes
their goals and objectives within the organisation. To develops these plans, business
organisations applies many strategies and theories of management in organisation in order to
analyse the opportunities and weaknesses of their organisation. Unilever plc is the organisation
which is chosen here to make report on their strategic management plan. This report contains
various framework to analyse the impact and influence of macro environment on Unilever plc. It
contains impacts of various factors of internal environment on Unilever plc. Porters five forces
model is systematically describes in this report(AGHAZADEH and AHMADI, 2017). Unilever
plc is a British multinational organisation. The headquarter of Unilever plc is located in London,
England and it currently holds more than 400 brands. It deals with different products such as
food, ice creams, wellbeing vitamins, beauty products and personal care products.
TASK
P1. Impact of macro environment factors on Unilever plc
Macro environment factors related to those factors which are present in external
environment of organisation. These factors influence the operations of Unilever in both negative
and positive aspects. These factors are political, economic, social, technological, legal,
environmental and the brief discussion related to these factors are given below.
Political
One of the most important political aspect faced by British organisations is Brexit. In this
aspect England restricts trade agreements with other European nations and provides many
problems for British organisations to perform their business operations in European nations.
Unilever plc is facing many problems while performing their business operations in European
nations because of termination of trade agreements under Brexit. The major impact is to increase
transportation cost of Unilever's goods from England to other European nations (Pasch, 2019).
Another impact of political factor on Unilever is united states new rules and regulations for
foreign companies which makes difficult for Unilever to perform their business operations
smoothly in USA.There are three main points which describes the impact of economic factor on
Unilever plc such as political stability in many countries and growing free trade relations in
many countries. Political stability in many countries helps Unilever to gain many opportunities

from the market and these policies helps the company to perform their business activities without
any restriction from political organisation. Political issue is related to the Brexit under which
most of the British companies faced many restrictions and regulations from European nations.
Growing free trade relation enables Unilever plc to easily expand their business in different
nations and earns huge profits from these operations.
Economic
This factor of pestle analyses is related to impact of various factor of economy on
business organisations. There are many factors of economy such as currency, development level,
employment and national income. All these factors influence operations of business organisation
in different aspects. There are three main points through which the impact of economic factor on
Unilever are cleared such as increasing wages in developing countries, high growth of
developing countries and economic stability of developed countries. The increase in wages of
workforce impact negatively on Unilever's cost structure because high wages increases the cost
of production and ultimately decreases the profit margins of Unilever (Asil, 2019). It is seen in
many developing countries that their economic growth is high in comparison to another countries
so it is beneficial for Unilever plc to operates in this type of country. England is witnessing the
stability in their economy which benefits many organisation to earn considerable profits because
of stability on public income.
Social factors
This factor of pestle analyses deals with the issue related to social belief and harmony of
buyers. In this factor business organisation focuses on different social issues of people. These
social issues include gender, age group, taste, cultures and emotions. It is the duty of business
organisation to develops their products and marketed them in such a way to satisfy social needs
of the people. Product must develop on the basis of consumer age, taste and cultures. It should
not challenge traditions and belief of consumer. As Unilever is operating in more than 100
countries and each country has their different culture and social issues of people so these
differentiation in cultures and traditions influence the Unilever to provide the varieties of
products and services according to these traditions.
Technological factor
It is one of the most important factor of modern business to have proper technological
background in their business organisation. It is not possible for large organisation to conduct