Strategy Report - Strategic analysis and Stakeholder report

This strategic report focuses on Unilever, one of the largest manufacturing companies in the world, providing consumers with a diversified product portfolio. It covers the analysis of the external environment, including the industrial structural analysis, and a description of the competitive structures. A stakeholder report is also prepared, including an overview of strategic analysis and its relation with vision, mission, and values of Unilever.

Strategy Report

Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
1.1 Strategic Analysis......................................................................................................................1
Company Background............................................................................................................1
Industry Description...............................................................................................................2
Macro Environment Analysis.................................................................................................2
Industrial Structural analysis..................................................................................................6
Competitive Structures...........................................................................................................7
Future trends in the macro and industry environment............................................................8
1.2 Stakeholder Report.....................................................................................................................8
Summary of strategic Analysis...............................................................................................8
Values Mission and Vision of the firm...................................................................................9
Current performance evaluation...........................................................................................10
Stakeholder analysis.............................................................................................................10
Stakeholder engagement strategy.........................................................................................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Providing satisfaction to stakeholders is one of the most important goals of business
firms in the current corporate world. The stakeholder theory has been adopted by business firms
all over the globe and building interconnected relationships with different stakeholders
including suppliers consumers and investors is essential for global success of an organisation.
Satisfying each stakeholder's instead of limiting stakeholder importance to shareholders is one of
the key features of globally successful and continuously profitable multinational corporations
(Bansal, Garg and Sharma, 2019). This is a strategic report which focuses on the UK based
manufacturing company Unilever. It is one of the largest manufacturing company in the world
end provides consumers with a diversified product portfolio. This report covers the analysis of
universe external environment including the industrial structural analysis as well as description
of the competitive structures. Through the analysis future trends in the industry are analysed. on
the basis of this strategy and electrical report on Unilever a stakeholder report is also prepared
here. This includes overview of strategic analysis and its relation with vision mission and values
of Unilever. In addition to this, key stakeholders of the company are analysed and identified in
this report and appropriate strategy for communicating and engaging with the identify
stakeholders is described in this report.
MAIN BODY
1.1 Strategic Analysis
Company Background
Unilever produces and supplies fast-moving consumer goods in food, home, and personal
care product categories worldwide. The company was founded in the worst of 1929 and
has successfully expanded into different international markets with presence in 190 countries and
international territories. The commonly used goods sold by you never include
toothpaste, cleaning agents, pet foods, vitamin supplements, ice cream, condiments, tea
coffee, breakfast cereal beauty and Wellness products. the total number of employees hired by
the company equal to the amount of 155,000 as of the year 2021. the company is headquartered
in London UK and the current chairperson of Unilever is Nils Andersen. The company is listed
in New York Stock exchange, London Stock Exchange as well as FTSE100 index.
The continuous success of the company in different international market showcase is that
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strategy formulation and implementation and the company is conducted excellently and
identifying needs of different markets and adopting changing external situations is easy for the
company. In the current age providing satisfaction to different stakeholders is essential for
sustainable and ethical growth the company. It is important that Unilever also ensures that each
stakeholder affected by international operations of the firm gains high satisfaction.
Industry Description
The industry in which Unilever operates is of fast moving consumer goods. This industry
is also referred to as Consumer Packaged Goods industry in which products are consumed by the
target audience at a comparatively lower cost. This type of industry has high inventory turnover
and does not offer differentiated items which are sold to a niche human please with lower sales
and higher transportation charges. Goods sold in this industry are swiftly used products which
are needed by most population and quickly consumed to ensure continuous purchase of goods.
Fast moving consumer goods are sold at different types of retailers such as hypermarkets
supermarkets warehouse club stores small convenience stores and online retail firms. The
primary features of index industry are frequent purchases low engagement low prices short shelf
life and rapid consumption. Goods in this industry are produced at high volumes look
contribution margins with extensive distribution. Products included in this industry involve
diverse range of products such as packaged foods beverages and toiletries, Non-durable goods
cosmetics over the counter drugs and other consumables. Entering the fast-moving countryman
could say industry helps business forms create a diversified product portfolio and target different
segments of the consumer base. Unilever is one of the strongest members of the fast-moving
consumer goods industry with strengthened production line and supply chain in different
countries. The primary competitor of Unilever are Procter and gamble, Johnson and Johnson,
Palmolive, Mendelez international and Edgewel personal care.
Macro Environment Analysis
PESTEL Analysis
This analytical tool is used to understand the external environment situation of an organisation
editor mind positive as well as negative impacts of different external department forces on the
company (Bozhikin, Macke and da Costa, 2019). This tool is most commonly used for external
analysis because it covers different macro environmental forces including political
factors, economical factors, social factors, technology actors, legal factors and environmental
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factors. the application of PESTEL analysis tool on the international fast moving consumer
goods company Unilever this provided below:
 Political Factors: this is an important external environment first because changes in
political stability as well as current policies implemented by the government impact
corporation activities (Daou and et. al., 2020). Brexit is the main political factor which
affects organisations headquartered in UK. The implementation of Brexit deal has changed
the political relations between European Union and United Kingdom. This impacts business
headquartered in UK because it restricts the free movement of labour and goods across
European Union which facilitated free trade between United Kingdom and European
Union. In context of Unilever, Brexit impacts the company recourse failure is present in
different countries the European Union and as a supply chain across European Union. The
positive impact of Brexit deal on river is that it will facilitate strengthening of political
relations between United Kingdom and other countries such as United States Japan in
Australia which is support group of free trade and universe in these countries. under the
supply chain complexities and inserting feature created because of implementation off the
Lake City negative impact on future growth and recovery of Unilever from the COVID-19
pandemic.
 Economical Factors: The economy is one of the most crucial external force which
affects business forms because it dictates the profitability future success and international
expansion of an organisation. A healthy economy essential for sustained development of a
corporation at international level (Denley, Foulsham and Hitchen, 2019). COVID 19
pandemic has drastically changed the economic conditions of different countries. The
economic downfall has also affected consumer confidence and the purchasing power of
dangerous in developing as well as developed countries. This economic force impacted the
international profitability of Unilever as the company was not able to attain high profitability
in the year following the pandemic and also again every loss is because of businesses should
choose and supply change disruptions caused by the pandemic. Slowly because of global
vaccination rollouts and vaccination campaigns the economic held by governments the
economic conditions of developing countries along with specific developed nations is
improving. This is a positive sign for Unilever end will have a positive impact on future
growth of the company because the fast-moving consumer goods sold buying valuable power
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essentially use items for large number of consumers across the globe. The long-term negative
impact caused by the pandemic will hamper future expansion and growth of Unilever which
is the negative impact of this external force.
 Social Factors: The focus of this element of the PESTEL analytical tool is on
determining the influence of social changes and demographic forces on a business
organization (Dwivedi and Weerawardena, 2018). This is an important external force
because it directly influences consumer behaviour and affects the reaction of consumers on
different products of the company. in context of Unilever the primary social factor which
influences the company is the rise of health consciousness and fitness focus purchases by
consumers across the globe. This affects the sale of food products offered by Unilever
because packaged goods which are high in sugar and salt are considered unhealthy and being
awarded by young consumers in order to improve fitness level and achieve a more heavily
lifestyle. This is a global phenomenon in effects the sale of packaged food goods provided by
Unilever in different international markets. social factor its positive impact on universe in the
form of opportunity off developing healthy packaged goods and offering consumers range of
healthy consumer goods add in affordable price to gain brand recognition in the health and
fitness industry. Exploitation of this opportunity can help the company reduce dependence on
unhealthy eating products and move forward with the rising trend of fitness and healthy
lifestyle which will support future growth of Unilever. The negative impact of the social
factor is that it directly affects the seal of unhealthy consumer goods sold by Unilever
and reduce the popularity of condemning such goods at the global scale. It is important that
deliver takes strict action against this social force in order to accommodate As for the
changing trends followed by consumers.
 Technological Factors: Technological factors have really clear backed on industries and
there are various examples of technological changes leading to destruction of existing
industries and creation of new markets (Evans, Bratton and McKee, 2021). Therefore, it is
important to understand and analyse the technology will forces affecting a business form in
order to understand the external environment of a company. In relation to Unilever the
primary technological change riches impacted the company and will affect the future sales of
the company in upcoming years is ecommerce. The recent years for an increase in
ecommerce transactions in developing nations as well as underdeveloped regions across the
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globe. The COVIID-19 pandemic acted as a catalyst for the boost in online activity and
ecommerce transactions across the globe as physical communication voice restricted in order
to reduce the spread of pandemic. The positive impact of this technological factor on
Unilever is that now the company can sell different fast moving consumer goods dedicated to
the consumers and eliminate the need of reaching hypermarkets all supermarkets. This
opportunity can increase the profitability of Unilever and provide the company of waiting for
a digital future in which online transactions are the main method of purchasing products. The
negative impact of this technology will factor is that it also increases competition from small
scale manufacturer of fast moving consumer goods as the game platform today clear interact
with consumers and attract the target audience of Unilever.
 Environmental factor: In the recent years environment climate and sustainability have
become one of the most important topics in the corporate world. The reason behind this list
increasing climate change awareness (Gupta and et. al., 2020). The PESTEL analysis tool
also covers the environmental act of external forces on the company because it is and
globally influencing external factors. Unilever is also affected by the rising climate change
awareness and initiatives of consumers to increase responsible shopping and avoid
purchasing products which from the environment and increase their carbon footprint.
Consumers these days are actively trying to limit their carbon print end do not associate with
optimizations who are not environment friendly and are not participating in improving the
sustainability of their industry. the positive impact of this external forces is that it provides
the opportunity to Unilever to develop a sustainable brand image
through environmentally friendly corporate social responsibility initiatives and actions
to reduce environmental damage across the supply chain. The negative impact of this
external forces that initiating such corporate social responsibility initiative can be financially
taxing for the company as the firm needs to implement sustainability initiatives on an
international scale in order to reduce carbon footprint of the organisation.
 Legal Factors: This section of the PESTEL analysis determines the impact of legal
systems on firms’ remote or macro-environment (Hervieux and Voltan, 2018). In the context
of Unilever strengthening international patent laws as well as complicated environmental
regulations affect the international operations of the consumer goods manufacturer. The
respective company has to follow different environmental regulations in different countries
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in order to ensure that the carbon footprint of the company in that specific country does not
lead to legal action by the government. Following these complicated environmental
regulations while also focusing on maintaining profitability of the company will be
challenging for Unilever. The positive impact of this legal factor is that the strengthening
international patent laws will help usable protects its diversified product portfolio and feature
innovations by the negative impact is that the environment regulations in different countries
create a challenging legal landscape for Unilever.
Industrial Structural analysis
Porter’s five forces analysis
 Intensity of competition: Under this element of the analytical tool the level of
competitive rivalry in industry is identified. This is one of the most basic elements of
competitive landscape in an industry and helps understand the difficulty in attaining high
profit margins in a specific industry (Hlady‐Rispal and Servantie, 2018). The intensity of
competition in case of fast-moving consumer goods industry is high. This is because there
are various international players with long history and strength in global fast moving
consumer goods industry. Some of the examples include Procter and gamble, Johnson and
Johnson, Palmolive, Mendelez international and Edgewel personal care.
 Bargaining Power of Consumers: The strength of the consumers and their influence in
reducing price of commodities industry is referred to as the bargaining power of consumers
in this analytical tool. In east of the Unilever industry, the bargaining power of consumers
face extremely high. This is the cause various regional as well as international organisations
offer affordable options off fast moving consumer goods across the globe. Recognised
players in the fast-moving consumer goods industry as well as small scale manufacturers of a
specific nondurable item are able to attract consumers because most of the fast-moving
consumer goods are not differentiated and offer similar quality and quantity of product. This
increases the price sensitive beauty and reduces the social costs succeeded with changing a
company which makes the bargaining power of consumers high.
 Bargaining Power of suppliers: The extent to which of key suppliers in an industry on
affect in the faces of groups by changing the cost of supplying raw materials is defined as the
bargaining power of suppliers in industry (Huvaj, 2020). In case of the fast-moving consumer
goods industry the bargaining power of suppliers in the industry is low. The reason for such
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low bargaining power of supply is that the first thing consumer goods are manufactured by
using the raw materials which are presenting a balance then can be gained at lower cost for
high quality. There are different suppliers in the fast-moving consumer goods industry who
offer good send services at affordable prices which reduces the bargaining power of supplies
by huge extent.
 Threat of Substitute Products: A substitute product is defined as an alternative for a
product or service which can satisfy the same needs of the consumer (Kim, Ha and Park,
2019). In context of the fast-moving consumer goods industry the affordable do you use
products offered by this industry do not have any perfect alternative except from regional
small-scale manufacturers of personal care and other consumable goods. this reduces the
threat of substitute products in the fast-moving consumer goods industry low level because
that heard pushed by small scale teach them companies is low.
 Threat of new entrants: The ability of new entrants too easily again the consumer base
and profit margin of an existing organisation is the focus of this final element of the Porter's
5 forces analysis. The application of this element of the analytical tool showcases that the
threat of new entrants in case of fast-moving consumer goods industry is low. This is because
in order to establish strong position in the past move improvement with industry the
investment needed is huge. Financial strength is needed in order to produce consumable
goods at high quality and low costs and distribute them on the global scheme to gain compare
the positioning in the industry.
Competitive Structures
 Monopolistic competition: Monopolistic competition is defined as the imperfectly
competitive market which consist traits of both monopoly as well as competitive market.
In this market structure business firms are competing with each other and try to
differentiate their goods and service in market on the bases of their quality and branding.
In monopolistic competitive market large number of sellers and buyers are included.
 Oligopoly: In oligopoly market structure small number of large organisational are exist
which sell differentiated or identical products (Lumpkin, Bacq and Pidduck, 2018). As
the market consist few market players so their competitive strategies are depending on
each other. Organisations in this market structure, use their market influence in order to
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establish prices that enable business to earn higher profits. In this structure, consumers
become the price taker.
 Perfect competition: In perfect market competition, large number of small organisational
are complete with each other. Some characteristics of perfectly competition market
structure are it sells similar products, free for entry and exist the market as well as consist
lack price influence over commodities (Macke and et. al., 2018).
Future trends in the macro and industry environment
In relation the fast-moving consumer goods industry the primary trains which can be seen
in the upcoming year is emphasis on digital technology and digital transformation of fast-moving
consumer goods industry in order to capitalise on the rising E commerce trend. In addition to this
on the external end industry analysis it can be understood that businesses in the fast-moving
consumer goods industry will focus on improving system immediately order to address the
consumer concerns related to the negative impact of global cooperation's on environment and
climate change. Competition in the fast-moving consumer goods industry will increase as online
transactions and E commerce has provided small scale manufacturers their opportunity to reach
global audiences and attract the consumers from established publications in the fast-moving
consumer goods industry (Muralidharan and Pathak, 2018). The key players in the fast-moving
consumer goods industry will likely to acquire such small-scale growing organisations in order
to expand their portfolio and strengthen the possibility of calculus future growth and upcoming
year. These future trends in the fast-moving consumer goods industry will impact Unilever as the
company will also take action to accommodate business operations with the post COVID-19
world.
1.2 Stakeholder Report
Summary of strategic Analysis
As per the strategy analysis the political for switch effect even ever is Brexit while
economic source affecting the liver is economic conditions created by COVID-19 pandemic. The
rise in fitness and health-conscious purchase of consumer also affects the fast-moving consumer
goods industry of Unilever while increase of ecommerce also provides opportunities for the
company. The focus of consumers on sustainability is another factor which affects your liver and
improvements in international we can close also affect the Unilever. All these factors positively
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affecting level by providing opportunities while also creating challenges for complete with in
context of future growth. The competitive landscape of the fast-moving consumer goods industry
showcases that there is high competition between existing key players of the industry which
increases consumer's power. The supply is forward in the industry is low as well as the threat of
new entrants because establishing a brand in the fast-moving consumer goods industry requires
high financial investment.
Values Mission and Vision of the firm
Vision of the company: To make sustainable living commonplace. We believe this is the best
long-term way for our business to grow (Unilever’s Vision Statement & Mission Statement (An
Analysis), 2017).
The relation between vision of Unilever and environmental trends is that revision of the
company promotes sustainable growth which will help the company adversely environmental
concerns of consumers, leave it complicated environmental regulations, support community and
company growth in economic downturn. This will allow the company to develop positive brand
image two successful exploit the opportunity provided by the current social trend of
purchasing health conscious food products. In this way the vision of the company supports the
form in handling various environmental issues.
Mission of the company: To add vitality to life. We meet everyday needs for nutrition, hygiene
and personal care with brands that help people feel good, look good and get more out of life.
The focus of the mission of Unilever is to bring vitality into lives of consumers. This
consumer centric mission statement of the update will have been issued at the delete economic
term for by providing continuous quality goods and handling the political issues of Brexit deal
by ensuring consumer satisfaction for European Union consumers. In addition to this Unilever
will also be able to deal with changes in crucial trends and increasing online competition by
providing consumers vital and affordable fast moving consumer goods. Therefore, the mission
statement of the company matches with the current environment issues and healthy company
face challenges and opportunities effectively.
Core Values of the company: Integrity, respect, responsibility and pioneering (Business
Integrity, 2021).
Each core value of universe supports facing extreme conditions and market changes
effectively as the company is able to take responsibility of business actions on the environment.
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In addition to this the company focuses on maintaining integrity in case of political changes such
as Brexit and increasing industry competition by maintaining fair practises. The respective
company will be able to pioneer new ways of doing business in the age of digital change and
adopt with social changes such as health-conscious purchases by offering new products which
satisfy changing consumer requirements.
Current performance evaluation
In order to uphold the vision of the of the company of maintaining sustainable growth
Unilever has taken steps to have positive impact on the society as well as environment. This
involves the CSR initiatives taken by Unilever such as usage of regenerating farming technology
to battle ecological damage and taking stand against climate change through different brands
(Protect and regenerate, 2021). This focus of Unilever on maintaining sustainability of the
company will help the firm ensure that consumers and community stakeholders are satisfied.
Apart from this the company has also invested in innovation geared towards sustainability
(Innovation In Unilever, 2021). In this way the company is able to provide consumer vital
products which provide additional satisfaction in the form of sustainable impact. This helps the
firm attain mission statement. The values of the firm regarding integrity and responsibility are
being achieved by increasing transparency and investment in sustainability.
Stakeholder analysis
Sustainable development goals provided by United Nations consist of 17 interconnected goals
which act as a guideline for achieving a better and more environmentally friendly future for all.
The sustainable development goals are created too impact on international level and can be
used by international organisations to ensure sustainable development. These goals have
implications on the stakeholders of businesses (Paruchuri, 2019). The stakeholder implications of
sustainable development goals provided by United Nations in context of Unilever stakeholders
are provided below:
 Consumers: The initiatives taken by Unilever to innovate more sustainable products for
the consumers and implement processes which improves supply chain sustainability has
positive impact of improving consumer journey and satisfaction. The impact of sustainability
goals on the stakeholder of Unilever is that consumers will be more concerned towards
company’s actions in regards to this is sustainable development goals and their contribution
in achieving the goals at clear national scale.
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 Suppliers: The partner with purpose initiatives taken by Unilever to promote
collaborative partnerships with suppliers across the fast-moving consumer goods industry to
create positive change in the supply chain and improve sustainability (Partner with Purpose,
2021). This showcases that the company actively participates in improving supply
relationships. The implication of UN sustainable development goals on suppliers of Unilever
is that with the help of the company the suppliers will be able to ensure compliance with
these goals at their individual levels.
 Community: Unilever has taken steps to maintain equity justice and promote equality in
the workforce and community (Equity Diversity and Inclusion, 2021). These actions taken by
Unilever positively impact the community as it creates fairer world and strengthens the
organisation. The impact of UN SDG one community of Unilever is that the efforts taken by
Unilever to make positive change on community across the world will support attainment of
sustainable development goals.
 Employees: Unilever has created a fair we working environment which supports
development of each employee. In this way Unilever positively impacts the workforce of the
company. UN SDG will be attained because of responsible action taken by Unilever for
employee development as it will support development of individuals from different economic
backgrounds in an egalitarian environment.
Stakeholder engagement strategy
Employee and community survey can help the respective company in engaging with
individual members of the look for sand communities. Supplier interaction events can be
conducted by Unilever to engage with suppliers on international level and enhance collaboration
between suppliers from different international markets. Consumers can be communicated on
various digital platforms such as emails and social media to understand consumer perspective
and improve engagement with this stakeholder (Saebi, Foss and Linder, 2019).
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CONCLUSION
From the above report it is determined that external environment of a specific industry
provides opportunities for success as well as creates challenges in continuous progress of
business firms. External environment of an organisation can be analysed with the help of
different analytical tools such as the PESTEL analysis tool. This analytical tool helps look at
different external factors including political factor, economical factor, social
factor, technological factor, environmental factor and legal factor to understand the current
situation of external environment in an industry. The competitive landscape of in industry can be
determined with the help of porters five forces analysis. The mission vision and core values of
the company need to be aligned with the environmental issues and support the company in
handling different external environment challenges in order to support progress of the
organisation. the performance of an organisation can be evaluated on the basis of interrelation
between mission vision and values of a company and the external environmental issues currently
faced by the organisation. Community, consumer’s employees and suppliers are some of the
main stakeholders of an organisation and it is essential to provide them positive experience with
the company in order to develop interconnected framework of stakeholders which supports
overall development of the company. In order to obtain this different stakeholder in engagement
strategies can be adopted such as connecting through digital channels
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REFERENCES
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Daou and et. al., 2020. The Ecocanvas as a business model canvas for a circular
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Compliance: How To Achieve and Maintain Compliance. Routledge.
Dwivedi, A. and Weerawardena, J., 2018. Conceptualizing and operationalizing the social
entrepreneurship construct. Journal of Business research. 86. pp.32-40.
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Hervieux, C. and Voltan, A., 2018. Framing social problems in social entrepreneurship. Journal
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Macke, J. and et. al., 2018. Where do we go from now? Research framework for social
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Muralidharan, E. and Pathak, S., 2018. Sustainability, transformational leadership, and social
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Paruchuri, H., 2019. Market Segmentation, Targeting, and Positioning Using Machine
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Online
Business Integrity, 2021. [Online] Available through <https://www.unilever.com/planet-and-
society/responsible-business/business-integrity/>
Equity Diversity and Inclusion, 2021. [Online] Available through
<https://www.unilever.com/planet-and-society/equity-diversity-and-inclusion/>
Innovation In Unilever, 2021. [Online] Available through
<https://www.hul.co.in/our-company/rd-innovation/innovation-in-unilever/>
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Partner with Purpose, 2021. [Online] Available through
<https://www.unilever.com/suppliers/partner-with-purpose/>
Protect and regenerate, 2021. [Online] Available through <https://www.unilever.com/planet-and-
society/protect-and-regenerate-nature/>
Unilever’s Vision Statement & Mission Statement (An Analysis), 2017. [Online] Available
through <http://panmore.com/unilever-vision-statement-mission-statement-analysis>
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