BMP6002 Strategic Management Individual Report on Unilever plc

STRATEGIC
MANAGEMENT

Table of Contents
INTRODUCTION : ........................................................................................................................2
TASK ..............................................................................................................................................3
STRATEGIES FOR THE COMPANY : ........................................................................................3
ANSOFFS MATRIX : ...............................................................................................................3
BOWMAN STRATEGY CLOCK : ...........................................................................................4
McKINSEY MATRIX : .............................................................................................................5
EVALUATION OF INTERNAL AND EXTERNAL VARIATIONS ON BUSINESS : .............6
SWOT ANALYSIS : ..................................................................................................................7
PESTLE ANALYSIS : ...............................................................................................................8
BUSINESS ACTION PLAN : ........................................................................................................9
CONCLUSION ...............................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION :
Strategic management can be defined as process of preparation and execution of
objectives and goals by the management of the organisation. It involves evaluation of resources
and assessment of various factors which are important in the working of the business. After
considering these factors, the management of the company formulates different policies and
strategies for achieving organisational goals. This report will discuss about the various processes
which are used by organisation's for determining their strategies. This report will be on Unilever
plc, a British multinational FMCG company which is headquartered in London. The company
offers a wide range of products to its customers. It is the largest producer of soaps in the world. It
will also include the SWOT and PESTLE analysis of Unilever plc. A business strategy plan will
be discussed in this report which will help Unilever in improving its performance and achieving
its target goals.
TASK
STRATEGIES FOR THE COMPANY :
ANSOFFS MATRIX :
It can be defined as a process which is used by the companies for determining their
business strategies for their future growth. It analyses different factors which are essential for
improving the performance of the company. The Ansoff matrix of Unilever is discussed below:
 Market penetration : The company is launching various new products and entering in
different product lines for increasing its market penetration. This has contributed towards
the success of the company in the previous decades. It has developed a strong customer
base. The company is not focused on selling to a few customers, it knows the importance
of economies of scale in the FMCG segment(Ansoff and et. al., 2018).
 Product development : It is related to the innovation and creative ideas which the
company launches regularly to attract its customers. The company started its business
with only soap. But now Unilever offers a wide range of products to it customers which
has helped them in maintaining a loyal customer base. This has helped the company in
achieving growth and expansion.

 Market development : Unilever is entering in new geographical markets for
diversification of business and increasing the sales of the company. The company
initially was doing its business only in Europe. But now the company is operating in
more than 150 countries at present across the world. It is currently focusing on the market
development strategy. It helps the company in managing the loss of one sector from the
profits of other sector(Ginter, Duncan and Swayne, 2018).
 Diversification : The company has been focusing on acquisition and collaborations.
Some of the diversifications by Unilever are Tatcha LLC, Dermalogica, and Seventh
Generation since they are mainly working in cosmetic industry. Company has increased
its product line over the last few decades. The company has developed various business
units over the last decades which include dairy brands, food brands and other refreshment
brands.
BOWMAN STRATEGY CLOCK :
It can be defined as a framework used by the businesses for proper positioning of its
products according to the price and evaluated value. It involves eight clock positions which
describes the different strategies which will be very helpful for the companies. The analysis on
Unilever is discussed below :
 Low price and low value model : This strategy focuses on low price and low value
products. It helps the companies in gaining competitive advantage in the market.
Unilever can reduce the prices of some products in which not much value can be added.
These products of the company are least competitive in the market(Graebner and et. al.,
2022).
 Low price : This strategy focuses on lowering the price of the products in order to attract
the customers. The margins of the company get reduced due to reduction in prices.
Unilever can maintain affordable pricing of its products so that it can increase the level of
sales of the company. This will help the company in improving its profits margins of the
business.
 Hybrid : This strategy involves a balance between low prices and differentiation.
Unilever targets the price sensitive customers who turn to their product(Henry, 2021). It