Managing Strategy and Innovation for Unilever: A Case Study

This report analyzes the case study of Unilever and highlights the possible competitive strategy options for effective strategic planning. It also analyzes the impact of strategic planning on the organization and the significance of the study. The report concludes with recommendations for future action to solve the problem.

Managing Strategy and
Innovation

Table of Contents
Introduction .....................................................................................................................................1
Main Body.......................................................................................................................................1
Conclusion.......................................................................................................................................5
References ......................................................................................................................................6

Introduction
Strategic management is defined as the process of planning, monitoring, determining and
assessing of all requirements an business organisation needs to meet its objectives. It is also the
process of determining goals, process and objectives with the aim of making organisation more
competitive and effective (Hayaeian, Hesarzadeh and Abbaszadeh, 2021). Proper strategic plan
enables business organisation to achieve desired goals and objectives. For this report Unilever is
taken into consideration. Unilever is one of the well-established consumer goods business,
operating in over 190 countries with around 400 brands. It was started in 1929, considered to be
the biggest producer of soap in the world. This report highlights purpose and background of the
study along with the possible competitive strategy options for effective strategic planning. And
the impact of strategic planning on organisation and significance of the study is also highlighted
in this report. In addition to this the recommendations for future action to solve the problem is
also highlighted in this report.
Main Body
Overview of case study
Unilever is one of the well established consumer goods company offering quality goods
to their target customers. It was founded in 1929 owing more than 400 brands with their products
available in around 190 countries. Unilever is considered to be one of the top multinational
company having strong brand image around the globe, it is also considered to be the largest
producer of the soap in the world (Pedraza-Rodríguez, Bolcha and Santos-Roldán, 2021). The
company uses effective strategy in order to maintain their position in the marketplace and attract
large number of customers. One of the most essential business strategy used by the Unilever is
that it combines its global strategies with the local strategy with the aim of attracting large
number of customers, as customers are mainly attracted towards products which has global
presence and also hold on to its local essence. In addition to this, during the promotion Unilever
also focus on getting the upper hand in communication to the target consumers. One of the most
essential business strategy of the Unilever is its focus on sustainability. Unilever is majorly
focused on offering sustainable living for around 8 billion people around the globe along with
focusing on social inequality and and climate changes. These all enables company to gain
competitive advantage in the marketplace as well as maintain their position. The purpose of this
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case is determine the current business strategy of the chosen company and how it can further
improve its strategy to continue to perform better and maintain their position. Company's
strategy allows the company to have distinct competitive advantage over it competitors enabling
it to maintain its position in the marketplace. The Unilever's strategy focus on emphasizing the
features and characteristics that leads company's products and services different from its
competitors effectively (Haiyunand et.al., 2021).
Possible competitive strategy option
Competitive strategy is the set plan taken into consideration by the organisation to grow
and accomplish competitive advantage in the market. There are various competitive strategy
present that can be used by the business organisation into order to maintain their position in the
marketplace and enhance their competitiveness. In context to Unilever, in order to determine the
possible competitive strategy option available to the company the porter's generic strategy is
taken into consideration.
Porter's generic strategy: It is one of the essential strategy used by the organisation to
determine how an organisation pursues competitiveness in the marketplace and improve their
overall performance effectively. There are various strategy included which can be used by the
company to gain competitiveness in marketplace. In context to Unilever, the various strategy that
can be used by the company are stated below:
Cost leadership: It is kind of strategy which allows the business organisation to gain
competitive advantage through increasing their profit by reducing the cost, meanwhile charging
industry average prices. It can be also be done through increasing the market-share through
alleging the lesser prices, still earning rational profits (Guertlerand Sick, 2021). This strategy
allows the organisation to achieve competitive advantage in the market and improve their
performance through charging lower prices or lowering their cost effectively.
Differentiation: Another strategy is the differentiation strategy, this strategy focus on
offering unique and different product and services to their customers in order to attract large
number of customers and increase their customer base efficiently. This help business
organisation to differentiate themselves from their competitors. This strategy is used by doing
through research determining the needs and wants and of the customers and according to their
needs offering unique and quality services to them. This help company to attract large number of
customers leading to boost their sale, as well as enhancing their act.
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Focus strategy: It enables business organisation to focus on the particular target market
and achieve their desired goals and objectives. It mainly includes two aspects such as cost focus
and differentiation focus. The cost focus strategy aim at offering low cost in the target market
leading to attract target customers base. In case of focus strategy, the main focus of the
organisation is to offer unique and differentiated products and services to the target audience.
This strategy helps the company to focus on their niche market and gain competitive advantage.
(Manchaand Gordon, S021).
From the above it is analysed that, Unilever uses broad differentiation strategy as its
major generic strategy. This strategy allows the company to emphasis on features or
characteristics that leads to making the company's product and services more competitive and
unique. It also enables business to offer differentiated goods as per needs and wants of the
consumers leading to satisfy their needs effectively and efficiently.
Impact of strategic planning on organisation
The main purpose of the strategy is to analyse the basic objectives of the business
organisation and allocating the resources for their smooth and effective working. It enables the
business to take necessary actions in order to achieve their mission. A proper strategic plan work
as an effective road map and long term goals to achieve the business goals and objectives. It also
enables business to decide whether to expand their business or operations or whether to enter
international market (Ratten, 2021). It is essential for the business organisation like Unilever to
achieve their desired goals and objectives and enhance their overall performance. But not
following or considering the strategic planning can create direct impact on the business
organisation. In context to Unilever, some of the impact of not considering the strategic planning
are mentioned below:
The capabilities and competences: The lack of capabilities and competences to learn
new skills, knowledge as well as to handle new change in the organisation can directly impact
the strategy of the company, also the proper availability of resources and capabilities can lead to
creating major impact on the proper implementation of strategy in the organisation. In case of
Unilever, lack of proper capabilities and competence can create direct impact on the planning
and implementation of strategy for the company (Fedushko and et.al., 2021).
Performance of the organisation: Another impact of not adopting the strategy of the
company also impact the performance of the organisation. Strategy helps in setting proper plan
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for achieving desired goals and objectives of the business foremost to enhance the performance
of the company. In case of Unilever, not having proper strategy planning can directly impact the
performance of the company.
Profitability of the organisation: Not considering the strategic planning also directly
impact the profitability of the organisation. Adopting proper strategy helps the business to
achieve their desired goals and objectives leading to boost their sale automatically leading to
increase their profitability. In case of Unilever, not considering proper strategy can directly
impact the profitability of the company. So to grow and continue to improve their profitability
and performance of the company, it is vital to consider their strategy.
Significance of the study
Strategic planning plays an essential role behind the growth and success of the
organisation, it is necessary for the business as it helps in developing map for the organisation to
follow and manage it when need to be (Lozada-Contreras, Orengo-Serraand and Sanchez-
Jauregui, 2021). The first part of the strategic plan enables the business organisation to outline
the purpose of the organisation budget, goals and the mission statements effectively. In case of
Unilever, proper strategic planning plays an significance role behind their growth and success, it
helps company to offer sense of direction to accomplish desired goals. It also helps company to
gain competitiveness in the market as well as maintain their position effectively and efficiently.
In addition to this the strategic planning also help the chosen organisation to be proactive rather
than being reactive, enabling them to foresee their future and effectively prepare themselves for
the future accordingly. With the help of proper planning and controlling of strategy the company
like Unilever has maintained their position of being the market leader and being a strong brand in
the marketplace effectively. The company has effectively has strong competitiveness in
comparison to their competitors offering quality services to their target customers (Qi, G Jiaand
Zou, 2021).
Recommendation
In order to continue to grow and enhance their performance in the marketplace it is
essential for the business organisation to regularly evaluate their business environment and
accordingly take corrective actions. In case of Unilever, which is one of the top consumer good
company, it is essential for the business organisation to regularly re-evaluate their strategy and
take corrective actions in order to continue to perform better and gain competitive advantage in
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the marketplace. But due to the current outbreak of global pandemic has lead to directly
impacting the performance and profitability of the company and many other companies around
the globe. So in order to continue to perform better and achieve their desired goals various
recommendation can be considered by the company such as company can use more advance
technology like AI or Robotics in their operations in order to smoothly carry out their activity
and achieve competitive advantage. Adoption of these technology and implementing strategies
accordingly will enable the company to smoothly carry out their work and reduce their
operational cost as well. Another recommendation that can be considered by the company can be
adoption of market strategy, this will allow company to expand their business into new market
with their existing products and services (Cartwright, Davies and Archer-Brown, 2021). This
will help company to expand their market size and enhance their overall performance effectively.
In addition to this other recommendation that can be considered by the company can be
implementing new policies related to positive workplace environment also.
Conclusion
From the above report, it has been concluded that planning and setting proper strategy
helps business organisation to achieve their desired long term and short term objectives leading
them to gain competitive advantage in the marketplace. It is also analysed that proper strategy
planning also helps the business organisation to increase their overall profitability and
productivity also. In order to continue to grow and maintain their position in the marketplace it is
essential for the business organisation to proper plan and manage their strategy effectively. This
report helps in analysing the detailed description of the case along with the purpose and
background study. Also the possible competitive strategy option available to the company using
porter's generic strategy is also analysed in this report. And not considering the proper strategic
planning can lead to creating direct impact on the performance and profitability of the company
as analysed in this report. Various recommendation for future problem and continue to enhance
their performance is also analysed in this report.
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References
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