Corporate Governance Issues and Competition: A Unilever UK Case
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This report investigates the impact of strategic issues arising from ineffective corporate governance on the competition level and overall success of Unilever UK. It begins by defining corporate governance and its importance, particularly in relation to investor trust and organizational integrity. The report then introduces Unilever, highlighting its global market presence and diverse product portfolio. The core problem statement focuses on how ineffective corporate governance can lead to increased risks and hampered productivity. Research objectives include analyzing the importance of corporate governance and strategy, identifying the impact of ineffective governance on rising input costs, and ascertaining relevant competitive strategies. The literature review explores these objectives in detail, examining the role of corporate governance in fostering long-term investment, improving business performance, and enhancing management decision-making. It also delves into corporate strategy, its advantages in resource allocation and competitive positioning, and relevant theories such as agency and stakeholder theory. Furthermore, the report discusses the negative impacts of ineffective corporate governance, such as poor business decisions, higher wastage of resources, and lack of accountability. The report concludes with recommendations and an action plan for Unilever UK to improve its corporate governance practices.

REPORT
(To determine the impact of strategic issues of
ineffective corporate governance on the competition
level and success of an organisation. A case study on
Unilever UK)
(To determine the impact of strategic issues of
ineffective corporate governance on the competition
level and success of an organisation. A case study on
Unilever UK)
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Table of Contents
INTRODUCTION...........................................................................................................................3
Background of the research.........................................................................................................3
Background of the organisation..................................................................................................3
Problem statement.......................................................................................................................3
Research aim and objectives.......................................................................................................4
LITERATURE REVIEW ...............................................................................................................5
What is the importance of corporate governance and strategy on the success of a firm?...........5
What is the impact of ineffective corporate governance in leading the issues of rising input
cost?.............................................................................................................................................7
What is the influence of strategic issues of ineffective corporate governance on the
competition level and success of a firm?....................................................................................9
What are the relevant strategies in order to beat the competition?...........................................11
RESEARCH METHODOLOGY...................................................................................................13
CRITICAL REVIEW OF RESULTS ...........................................................................................16
Frequency distribution table......................................................................................................16
Data interpretation.....................................................................................................................17
RECOMMENDATION AND ACTION PLAN............................................................................24
Conclusion.................................................................................................................................24
Recommendation.......................................................................................................................24
Action plan................................................................................................................................25
REFERENCES .............................................................................................................................28
APPENDIX ...................................................................................................................................30
Questionnaire............................................................................................................................30
INTRODUCTION...........................................................................................................................3
Background of the research.........................................................................................................3
Background of the organisation..................................................................................................3
Problem statement.......................................................................................................................3
Research aim and objectives.......................................................................................................4
LITERATURE REVIEW ...............................................................................................................5
What is the importance of corporate governance and strategy on the success of a firm?...........5
What is the impact of ineffective corporate governance in leading the issues of rising input
cost?.............................................................................................................................................7
What is the influence of strategic issues of ineffective corporate governance on the
competition level and success of a firm?....................................................................................9
What are the relevant strategies in order to beat the competition?...........................................11
RESEARCH METHODOLOGY...................................................................................................13
CRITICAL REVIEW OF RESULTS ...........................................................................................16
Frequency distribution table......................................................................................................16
Data interpretation.....................................................................................................................17
RECOMMENDATION AND ACTION PLAN............................................................................24
Conclusion.................................................................................................................................24
Recommendation.......................................................................................................................24
Action plan................................................................................................................................25
REFERENCES .............................................................................................................................28
APPENDIX ...................................................................................................................................30
Questionnaire............................................................................................................................30

INTRODUCTION
Background of the research
Corporate governance is defined as the system which is used within the organisation in
order to provide direction to the organisation and to control different activities of the business
(Aguilera and Crespi-Cladera, 2016). Corporate governance are such rules and policies which are
used within the organisation for the major purpose of managing the business and to put corporate
behaviour for the organisation (Solomon, 2020). For an organisation corporate governance is
important as this leads the investors to manage organisational integrity and increase
shareholder’s diligence as well. There are various strategic issues that could be faced by the
organisation due to having ineffective corporate governance such as loosing of investor's trust,
financial issues and many other. The current report is going to develop understanding in the
context of role of corporate governance over succession of the organisation.
Background of the organisation
Unilever is a British multinational consumer goods company which is headquartered in
London, United Kingdom. The products of Unilever include food, beverages, cleaning agents,
personal care products and many others. The Unilever has 44 brand in their portfolio in which 14
categories are served by the organisation (Fenwick, McCahery and Vermeulen, 2019). The
company is managing 18000 employees has recently acquired consumer healthcare organisation
(Laursen and Andersen, 2016). The organisation is market leader in different markets such as
India which means that the organisation is having global market identity and the company is
putting various efforts in order to develop their market edge.
Problem statement
The corporate governance is defined as using of different set of principles and policies in
the organisation so that in multi-dimensional manner business can be managed (Cancela and et.
al., 2020). With the help of corporate governance practices this is easier to align business
practices in such a manner that interest of stakeholders can be managed. When ineffective
corporate governance is existed within the organisation then risks can be increased within the
organisation and at the same time productivity would be hampered (Kovermann and Velte,
2019). The identified issue within the current research is related with ineffective corporate
Background of the research
Corporate governance is defined as the system which is used within the organisation in
order to provide direction to the organisation and to control different activities of the business
(Aguilera and Crespi-Cladera, 2016). Corporate governance are such rules and policies which are
used within the organisation for the major purpose of managing the business and to put corporate
behaviour for the organisation (Solomon, 2020). For an organisation corporate governance is
important as this leads the investors to manage organisational integrity and increase
shareholder’s diligence as well. There are various strategic issues that could be faced by the
organisation due to having ineffective corporate governance such as loosing of investor's trust,
financial issues and many other. The current report is going to develop understanding in the
context of role of corporate governance over succession of the organisation.
Background of the organisation
Unilever is a British multinational consumer goods company which is headquartered in
London, United Kingdom. The products of Unilever include food, beverages, cleaning agents,
personal care products and many others. The Unilever has 44 brand in their portfolio in which 14
categories are served by the organisation (Fenwick, McCahery and Vermeulen, 2019). The
company is managing 18000 employees has recently acquired consumer healthcare organisation
(Laursen and Andersen, 2016). The organisation is market leader in different markets such as
India which means that the organisation is having global market identity and the company is
putting various efforts in order to develop their market edge.
Problem statement
The corporate governance is defined as using of different set of principles and policies in
the organisation so that in multi-dimensional manner business can be managed (Cancela and et.
al., 2020). With the help of corporate governance practices this is easier to align business
practices in such a manner that interest of stakeholders can be managed. When ineffective
corporate governance is existed within the organisation then risks can be increased within the
organisation and at the same time productivity would be hampered (Kovermann and Velte,
2019). The identified issue within the current research is related with ineffective corporate
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governance and significance of proper corporate governance which would be helpful in attaining
business objectives in proper time.
Research aim and objectives
Research aim
The main aim of current research is, “To determine the impact of strategic issues of
ineffective corporate governance on the competition level and success of an organisation. A case
study on Unilever UK.
Research objectives:
ï‚· To analyse the importance of corporate governance and strategy on the success of a firm
ï‚· To identify the impact of ineffective corporate governance in leading the issues of rising
input cost
ï‚· To analysis the influence of strategic issues of ineffective corporate governance on the
competition level and success of a firm
ï‚· To ascertain relevant strategies in order to beat the competition
Research questions
ï‚· What is the importance of corporate governance and strategy on the success of a firm?
ï‚· What is the impact of ineffective corporate governance in leading the issues of rising
input cost?
ï‚· What is the influence of strategic issues of ineffective corporate governance on the
competition level and success of a firm?
ï‚· What are the relevant strategies in order to beat the competition?
business objectives in proper time.
Research aim and objectives
Research aim
The main aim of current research is, “To determine the impact of strategic issues of
ineffective corporate governance on the competition level and success of an organisation. A case
study on Unilever UK.
Research objectives:
ï‚· To analyse the importance of corporate governance and strategy on the success of a firm
ï‚· To identify the impact of ineffective corporate governance in leading the issues of rising
input cost
ï‚· To analysis the influence of strategic issues of ineffective corporate governance on the
competition level and success of a firm
ï‚· To ascertain relevant strategies in order to beat the competition
Research questions
ï‚· What is the importance of corporate governance and strategy on the success of a firm?
ï‚· What is the impact of ineffective corporate governance in leading the issues of rising
input cost?
ï‚· What is the influence of strategic issues of ineffective corporate governance on the
competition level and success of a firm?
ï‚· What are the relevant strategies in order to beat the competition?
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LITERATURE REVIEW
What is the importance of corporate governance and strategy on the success of a firm?
As per the viewpoint of Suhadak and et. al., (2018), corporate governance plays an
important role within business as it helps in providing brief information related to the laws and
rules which are followed by organisation. The concept of corporate governance is wide as it
includes various rules, laws and process which helps business to regulate, control and operate the
functioning and operation of company in effective and efficient manner. Corporate governance
is a process through which organisation avail direction and control over their business
performance. The responsibility of the governance is totally depending on board of directors.
The main role of shareholders in governance is to hire directors and auditors. Corporate
governance generally helps in building better environment, accountability and transparency in
order to foster long term investment. It includes the rules, laws and regulations by which
organisation can regulate, operate and control their business operation. The few elements of
corporate governance are director independence and performance, focus on diversity, regular
compensation review, auditor independence, shareholders right and proxy voting.
Importance of corporate governance:
ï‚· There are various importance of corporate governance which can be availed by company
such as it helps in cultivating company's culture of integrity, brings sustainability and
also leads to positive performance. Corporate governance helps in attracting investors due
to which company can perform better and efficient manner. Investors generally get
attracted by the company when they have good corporate governance (Jain and Jamali,
2016). Thus, it is important to ensure that organisation must have efficient corporate
governance as it helps in protecting shareholders and stakeholders right.
ï‚· In order to gain success in market, corporate governance is important for company as it
helps in improving the performance of business and also enhances the vital reasoning of
management by hiring independent director so that they can bring intellectual experience
to business without any biased factor.
ï‚· The importance of corporate governance is to ensure that the business must be in
disciplined and also there must be healthy harmony between management and ownership
What is the importance of corporate governance and strategy on the success of a firm?
As per the viewpoint of Suhadak and et. al., (2018), corporate governance plays an
important role within business as it helps in providing brief information related to the laws and
rules which are followed by organisation. The concept of corporate governance is wide as it
includes various rules, laws and process which helps business to regulate, control and operate the
functioning and operation of company in effective and efficient manner. Corporate governance
is a process through which organisation avail direction and control over their business
performance. The responsibility of the governance is totally depending on board of directors.
The main role of shareholders in governance is to hire directors and auditors. Corporate
governance generally helps in building better environment, accountability and transparency in
order to foster long term investment. It includes the rules, laws and regulations by which
organisation can regulate, operate and control their business operation. The few elements of
corporate governance are director independence and performance, focus on diversity, regular
compensation review, auditor independence, shareholders right and proxy voting.
Importance of corporate governance:
ï‚· There are various importance of corporate governance which can be availed by company
such as it helps in cultivating company's culture of integrity, brings sustainability and
also leads to positive performance. Corporate governance helps in attracting investors due
to which company can perform better and efficient manner. Investors generally get
attracted by the company when they have good corporate governance (Jain and Jamali,
2016). Thus, it is important to ensure that organisation must have efficient corporate
governance as it helps in protecting shareholders and stakeholders right.
ï‚· In order to gain success in market, corporate governance is important for company as it
helps in improving the performance of business and also enhances the vital reasoning of
management by hiring independent director so that they can bring intellectual experience
to business without any biased factor.
ï‚· The importance of corporate governance is to ensure that the business must be in
disciplined and also there must be healthy harmony between management and ownership

due to which management can make better decision by building trust among shareholders
and company.
As per the opinion of Jia, Huang and Man Zhang (2019), Strategy also plays an important
role in increasing the success rate of organisation. Corporate strategy helps in providing direction
on which company must move. Therefore, strategy helps in achieving the aims and objective of
the organisation in effective and efficient manner. The importance of corporate strategy in order
to gain success is that it helps in allocating resources of organisation, improves competitive
position, establishing business expectations and also increases the value of shareholders. It is
important for company to have clear and focused strategy so that they can gain success and make
better decision.
Advantages of corporate governance:
ï‚· Advantage of corporate strategy is that it helps in providing larger company overview by
focusing on entire business rather than considering each busies unit. It also helps in
identifying the problem and prevent counterproductive measures. Through having
effective corporate governance, company can identify the existing or potential issues that
could influence the ability to accomplish the goals. Corporate strategy also helps in
preventing the implementation of other strategy which is counterproductive. It is mainly
categorised into different forms such as stability strategy, expansion strategy,
retrenchment strategy and combination strategy.
ï‚· The other advantage of corporate governance is that it helps in allocating the resources of
organisation in significant manner due to which goals can be attained in better way
(Pfang, 2015). During the process of strategic planning and budgeting, firm generally
assess the performance of each business unit. From the above findings, organisation
acquires and divests their assets and revise resource allocation in appropriate manner.
Corporate strategy also helps in improving competitive position due to which the growth
and performance of company increases.
Theories of corporate governance:
The few theories of corporate governance are agency theory, stewardship theory,
stakeholder theory and transaction theory. These theories helps in describing the relationship
between various stakeholders while carrying out business activities in effective and efficient
manner (Naciti, 2019).
and company.
As per the opinion of Jia, Huang and Man Zhang (2019), Strategy also plays an important
role in increasing the success rate of organisation. Corporate strategy helps in providing direction
on which company must move. Therefore, strategy helps in achieving the aims and objective of
the organisation in effective and efficient manner. The importance of corporate strategy in order
to gain success is that it helps in allocating resources of organisation, improves competitive
position, establishing business expectations and also increases the value of shareholders. It is
important for company to have clear and focused strategy so that they can gain success and make
better decision.
Advantages of corporate governance:
ï‚· Advantage of corporate strategy is that it helps in providing larger company overview by
focusing on entire business rather than considering each busies unit. It also helps in
identifying the problem and prevent counterproductive measures. Through having
effective corporate governance, company can identify the existing or potential issues that
could influence the ability to accomplish the goals. Corporate strategy also helps in
preventing the implementation of other strategy which is counterproductive. It is mainly
categorised into different forms such as stability strategy, expansion strategy,
retrenchment strategy and combination strategy.
ï‚· The other advantage of corporate governance is that it helps in allocating the resources of
organisation in significant manner due to which goals can be attained in better way
(Pfang, 2015). During the process of strategic planning and budgeting, firm generally
assess the performance of each business unit. From the above findings, organisation
acquires and divests their assets and revise resource allocation in appropriate manner.
Corporate strategy also helps in improving competitive position due to which the growth
and performance of company increases.
Theories of corporate governance:
The few theories of corporate governance are agency theory, stewardship theory,
stakeholder theory and transaction theory. These theories helps in describing the relationship
between various stakeholders while carrying out business activities in effective and efficient
manner (Naciti, 2019).
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Agency theory
Agency theory is one of the corporate governance theory that describe the relationship
between the agents and principle (Krenn, 2016). The theory depicts that shareholders generally
hire directors to perform their job role within Unilever. Through this theory it is being analysed
that company act as an agent of its shareholders. The theory is used to explain and resolve
challenges in relationship between agents and business principles. The different agency theory
relationship which are involved within Unilever are shareholder and company executives,
investor and fund manager and board of directors and CEO. The benefits of implementing this
theory is that it offers executives incentive to take actions which helps in enhancing the wealth of
shareholder. It generally helps in providing clear parameters for board members and corporate
officers to make strategic decision. Throughout the relationship between agent and principle,
there are various action and decision which are taken by agent on behalf of the principle which
creates a problem such as conflict of interest, confidentiality breach, insider trading and many
others.
Stakeholder theory
Stakeholder theory is also a theory of corporate governance which states that manager of
Unilever must have strong relationship with different stakeholders in order to run the business
activity in effective and efficient manner. Stakeholder theory helps Unilever to maintain stability
in environment, reduce conflicts between various groups and conducive to the company's long
term sustainable development. The benefits of using stakeholder theory is that it helps in
increasing the productivity, improve mental health, reduce turnover rates and also satisfy the
employees. Through using this theory, Unilever can improve their performance and productivity
by engaging their stakeholders in business activities. The disadvantage of their theory is conflicts
between stakeholders while making decision which can influence the performance and efficiency
of business. Stakeholder theory is important for Unilever to implement as it helps in reducing the
conflict and also develop more sustainable environment.
What is the impact of ineffective corporate governance in leading the issues of rising input cost?
As per the opinion of Salvioni and Gennari (2019), ineffective corporate governance can
create a great impact on the performance of business which leads to rising issues of input cost. It
is important for organisation to focus on developing effective corporate governance structure as
it can influence the business growth and productivity. The other issues which Unilever can face
Agency theory is one of the corporate governance theory that describe the relationship
between the agents and principle (Krenn, 2016). The theory depicts that shareholders generally
hire directors to perform their job role within Unilever. Through this theory it is being analysed
that company act as an agent of its shareholders. The theory is used to explain and resolve
challenges in relationship between agents and business principles. The different agency theory
relationship which are involved within Unilever are shareholder and company executives,
investor and fund manager and board of directors and CEO. The benefits of implementing this
theory is that it offers executives incentive to take actions which helps in enhancing the wealth of
shareholder. It generally helps in providing clear parameters for board members and corporate
officers to make strategic decision. Throughout the relationship between agent and principle,
there are various action and decision which are taken by agent on behalf of the principle which
creates a problem such as conflict of interest, confidentiality breach, insider trading and many
others.
Stakeholder theory
Stakeholder theory is also a theory of corporate governance which states that manager of
Unilever must have strong relationship with different stakeholders in order to run the business
activity in effective and efficient manner. Stakeholder theory helps Unilever to maintain stability
in environment, reduce conflicts between various groups and conducive to the company's long
term sustainable development. The benefits of using stakeholder theory is that it helps in
increasing the productivity, improve mental health, reduce turnover rates and also satisfy the
employees. Through using this theory, Unilever can improve their performance and productivity
by engaging their stakeholders in business activities. The disadvantage of their theory is conflicts
between stakeholders while making decision which can influence the performance and efficiency
of business. Stakeholder theory is important for Unilever to implement as it helps in reducing the
conflict and also develop more sustainable environment.
What is the impact of ineffective corporate governance in leading the issues of rising input cost?
As per the opinion of Salvioni and Gennari (2019), ineffective corporate governance can
create a great impact on the performance of business which leads to rising issues of input cost. It
is important for organisation to focus on developing effective corporate governance structure as
it can influence the business growth and productivity. The other issues which Unilever can face
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through ineffective corporate governance are lack of accountability, corruption, fraud and
negligence. There are various negative impact of ineffective corporate governance in leading the
issues of rising input cost. These challenges creates a great impact on the performance and
growth of business. The few issues which company face due to lack of corporate governance are
as follows:
Poor business decision:
Ineffective corporate governance creates a huge impact on organisation as it leads to
issues of rising input cost. When there is lack of effective corporate governance at management
and executive level it leads to poor business decision due to which the value and performance of
business gets influenced. The poor corporate governance can weaken the potential of company
and also brings financial difficulties. There is various reason due to which corporate governance
gets failed such as board of directors are not effective, complex process, poor communication,
improper culture, incapable of handling new technologies and economically unstable. These are
the few reasons due to which Unilever can face difficulty in managing the good corporate
governance within business.
Higher wastage of resources:
The ineffective corporate governance can bring higher cost of input which results in
higher wastage of resources. Rising cost is one of the major reason of ineffective corporate
governance which can affect the performance of Unilever. When there is increasing input cost it
leads to price rise due to which the competition also increases. Thus, it is one of the major
problem which arises into market. It is important for the Unilever to have effective and efficient
corporate governance as it can improve the profitability and sale of business by attracting
maximum number of people towards the brand.
Ineffective supplier policies:
Organisation must focus on offering high quality of products and services to its
customers at low price in order to increase the sale and profit margin of business. The rise of
input cost increases the producing cost. In order to generate more money, producers generally
sell their products at high cost. Thus, the increase in price input leads to decrease in supply. It is
necessary to focus on maintaining good and harmonious relationship with suppliers so that they
can provide the products and helps in meeting the demand of customers (Ciftci and et. al., 2019).
The ineffective corporate governance can bring various issues and challenges for organisation.
negligence. There are various negative impact of ineffective corporate governance in leading the
issues of rising input cost. These challenges creates a great impact on the performance and
growth of business. The few issues which company face due to lack of corporate governance are
as follows:
Poor business decision:
Ineffective corporate governance creates a huge impact on organisation as it leads to
issues of rising input cost. When there is lack of effective corporate governance at management
and executive level it leads to poor business decision due to which the value and performance of
business gets influenced. The poor corporate governance can weaken the potential of company
and also brings financial difficulties. There is various reason due to which corporate governance
gets failed such as board of directors are not effective, complex process, poor communication,
improper culture, incapable of handling new technologies and economically unstable. These are
the few reasons due to which Unilever can face difficulty in managing the good corporate
governance within business.
Higher wastage of resources:
The ineffective corporate governance can bring higher cost of input which results in
higher wastage of resources. Rising cost is one of the major reason of ineffective corporate
governance which can affect the performance of Unilever. When there is increasing input cost it
leads to price rise due to which the competition also increases. Thus, it is one of the major
problem which arises into market. It is important for the Unilever to have effective and efficient
corporate governance as it can improve the profitability and sale of business by attracting
maximum number of people towards the brand.
Ineffective supplier policies:
Organisation must focus on offering high quality of products and services to its
customers at low price in order to increase the sale and profit margin of business. The rise of
input cost increases the producing cost. In order to generate more money, producers generally
sell their products at high cost. Thus, the increase in price input leads to decrease in supply. It is
necessary to focus on maintaining good and harmonious relationship with suppliers so that they
can provide the products and helps in meeting the demand of customers (Ciftci and et. al., 2019).
The ineffective corporate governance can bring various issues and challenges for organisation.

Unilever have its own supplier policies but if there is ineffective policies it can influence the
supply chain management of brand due to which it becomes difficult for company to meet the
future demand of products.
Managing customer expectation:
Due to poor corporate governance, Unilever also faces issues regarding the managing
customer expectations, managing suppliers, maintaining quality and access to data. The rising
input cost generally leads to loss of productivity, customer complaints, increased cost of
working, reputational damage and loss of revenue. Therefore, it also affects the warehouse
management of Unilever as rising input cost leads to poor warehouse layout, improper
forecasting of demand, long lead times and irregular deliveries.
Thus, these are the few issues which influence the productivity and growth of business.
These challenges leads to rising input cost that affects the business performance. It is important
for Unilever to focus on managing the customer experience, minimise the wastage of resources
and make effective decision in order to reduce the challenges related to rising input cost.
What is the influence of strategic issues of ineffective corporate governance on the competition
level and success of a firm?
As per the perspective of Keping (2018), there is a great influence of strategic issues of
ineffective corporate governance on the competition level and success of firm. It is necessary for
organisation to develop effective corporate governance that helps in increasing the business
performance and also helps in attaining competitive edge in market by attracting more and more
talented employees within workplace. Ineffective corporate governance can create a great impact
on the competition level and success of organisation. When there is ineffective corporate
governance, company may face various issues which hampers the success rate of organisation
and also increases the competition level.
Getting right board:
Absence of corporate governance principles like honesty, accountability, openness,
transparency and trustworthiness affects the financial viability of business and also it leads to
eventual downfall. Ineffective corporate governance can affect the business performance and
productivity of Unilever. It is important for company to develop their good corporate governance
so that they can attract more and more employees and customers towards the brand. The
ineffective corporate governance generally occurs when the board of directors are not effective.
supply chain management of brand due to which it becomes difficult for company to meet the
future demand of products.
Managing customer expectation:
Due to poor corporate governance, Unilever also faces issues regarding the managing
customer expectations, managing suppliers, maintaining quality and access to data. The rising
input cost generally leads to loss of productivity, customer complaints, increased cost of
working, reputational damage and loss of revenue. Therefore, it also affects the warehouse
management of Unilever as rising input cost leads to poor warehouse layout, improper
forecasting of demand, long lead times and irregular deliveries.
Thus, these are the few issues which influence the productivity and growth of business.
These challenges leads to rising input cost that affects the business performance. It is important
for Unilever to focus on managing the customer experience, minimise the wastage of resources
and make effective decision in order to reduce the challenges related to rising input cost.
What is the influence of strategic issues of ineffective corporate governance on the competition
level and success of a firm?
As per the perspective of Keping (2018), there is a great influence of strategic issues of
ineffective corporate governance on the competition level and success of firm. It is necessary for
organisation to develop effective corporate governance that helps in increasing the business
performance and also helps in attaining competitive edge in market by attracting more and more
talented employees within workplace. Ineffective corporate governance can create a great impact
on the competition level and success of organisation. When there is ineffective corporate
governance, company may face various issues which hampers the success rate of organisation
and also increases the competition level.
Getting right board:
Absence of corporate governance principles like honesty, accountability, openness,
transparency and trustworthiness affects the financial viability of business and also it leads to
eventual downfall. Ineffective corporate governance can affect the business performance and
productivity of Unilever. It is important for company to develop their good corporate governance
so that they can attract more and more employees and customers towards the brand. The
ineffective corporate governance generally occurs when the board of directors are not effective.
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If the board of directors of company is not effective, it can affect the performance and efficiency
of business (Moore and Petrin, 2017). It is important for Unilever to hire effective individuals
who have an ability to contribute their best performance in making business successful.
Poor decision:
The inefficient individuals cannot give their best efforts in improving company's
performance which leads to poor decision. It is necessary to have quality of decision in order to
improve the corporate governance of organisation. When Unilever have efficient employees,
they can help in gaining competitive advantage in market and also improves the success rate of
business (Scherer and Voegtlin, 2020). The ineffective corporate governance leads to complex
process. When there is complex process within Unilever it becomes difficult to operate business
activities in efficient and effective manner.
Poor communication:
Poor communication is also a strategic issue of ineffective corporate governance. It is
necessary for organisation to have effective communication between the employees a manager so
that work can be accomplishing in significant manner. The effective communication helps in
achieving the goals and objective of business. It also helps in engaging the team members and
also creates better customer relationship due to which organisation can also achieve competitive
edge and enhances the chances of success. When staff feel engaged and motivated while working
in workplace it creates good corporate governance within company.
Improper culture:
Improper culture followed within workplace is also a factor which influences the strategic
issues of ineffective corporate governance on the competition level and success of a firm.
Therefore, it is necessary to develop positive culture within an organisation so that employees
work with dedication and feel engaged while working. The poor culture within workplace can
affect the morale, motivation, high turnover and productivity of Unilever due to which the brand
faces severe loss. Thus, it is essential to develop positive workplace culture so that it improves
teamwork, increases productivity, raises morale and also enhances the retention of employees
due to which company can gain success and beat their competitors. In order to gain competitive
advantage in market, organisation must engage their employees so that they can give their
creative and innovative ideas in improving the business performance and productivity.
of business (Moore and Petrin, 2017). It is important for Unilever to hire effective individuals
who have an ability to contribute their best performance in making business successful.
Poor decision:
The inefficient individuals cannot give their best efforts in improving company's
performance which leads to poor decision. It is necessary to have quality of decision in order to
improve the corporate governance of organisation. When Unilever have efficient employees,
they can help in gaining competitive advantage in market and also improves the success rate of
business (Scherer and Voegtlin, 2020). The ineffective corporate governance leads to complex
process. When there is complex process within Unilever it becomes difficult to operate business
activities in efficient and effective manner.
Poor communication:
Poor communication is also a strategic issue of ineffective corporate governance. It is
necessary for organisation to have effective communication between the employees a manager so
that work can be accomplishing in significant manner. The effective communication helps in
achieving the goals and objective of business. It also helps in engaging the team members and
also creates better customer relationship due to which organisation can also achieve competitive
edge and enhances the chances of success. When staff feel engaged and motivated while working
in workplace it creates good corporate governance within company.
Improper culture:
Improper culture followed within workplace is also a factor which influences the strategic
issues of ineffective corporate governance on the competition level and success of a firm.
Therefore, it is necessary to develop positive culture within an organisation so that employees
work with dedication and feel engaged while working. The poor culture within workplace can
affect the morale, motivation, high turnover and productivity of Unilever due to which the brand
faces severe loss. Thus, it is essential to develop positive workplace culture so that it improves
teamwork, increases productivity, raises morale and also enhances the retention of employees
due to which company can gain success and beat their competitors. In order to gain competitive
advantage in market, organisation must engage their employees so that they can give their
creative and innovative ideas in improving the business performance and productivity.
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Therefore, these are the few strategic issues which are faced by company due to poor
corporate governance of an organisation which results in low success rate and less competition
level. It is necessary for company to focus on overcoming these issues in order to run the
business activities in effective and efficient manner.
What are the relevant strategies in order to beat the competition?
According to the viewpoint of Garas and ElMassah (2018), strategies helps company to
gain competitive advantage and improve the success rate of organisation. It is necessary to
implement the effective strategies which helps in improving the growth and profitability of
business. There are various strategies which can be adopted by the company in order to beat their
competitors. It is important to develop and implement the strategies which helps in gaining
competitive edge and also improves the performance of business. Competitors generally affect
the productivity, efficiency and performance of companies due to which they face severe loss.
The few strategies which must be used by Unilever in order to beat the competition are as
follows:
Knowing your customer:
It is necessary for Unilever to identify their potential customer and know them in
appropriate manner. By knowing the customers, company can build strong connection with them
and also extend the customer life cycle beyond only couple of purchases. They must focus on
improving the engagement level of customer towards the company in order to increase the profit
and sale of business. Unilever can use various online tools in order to better understand their
customers. By having better knowledge of customer, organisation can make their consumers feel
happy while shopping their products (Flammer, Hong and Minor, 2019). In order to understand
the customers, it is necessary to interact with customer's success team and monitor customer on
social media.
Understand the competition:
Unilever must focus on understanding the competition level in market in order to make
effective strategies through which company can gain competitive edge. To understand the
competition, it is necessary to begin by examining the marketplace. Unilever can also offer better
products and services to its consumers and also they can stand out better in market as comparison
to its competitors. Through understanding the competition, Unilever can also set their pricing
competitively and respond effectively to their rival marketing campaigns with strong initiatives.
corporate governance of an organisation which results in low success rate and less competition
level. It is necessary for company to focus on overcoming these issues in order to run the
business activities in effective and efficient manner.
What are the relevant strategies in order to beat the competition?
According to the viewpoint of Garas and ElMassah (2018), strategies helps company to
gain competitive advantage and improve the success rate of organisation. It is necessary to
implement the effective strategies which helps in improving the growth and profitability of
business. There are various strategies which can be adopted by the company in order to beat their
competitors. It is important to develop and implement the strategies which helps in gaining
competitive edge and also improves the performance of business. Competitors generally affect
the productivity, efficiency and performance of companies due to which they face severe loss.
The few strategies which must be used by Unilever in order to beat the competition are as
follows:
Knowing your customer:
It is necessary for Unilever to identify their potential customer and know them in
appropriate manner. By knowing the customers, company can build strong connection with them
and also extend the customer life cycle beyond only couple of purchases. They must focus on
improving the engagement level of customer towards the company in order to increase the profit
and sale of business. Unilever can use various online tools in order to better understand their
customers. By having better knowledge of customer, organisation can make their consumers feel
happy while shopping their products (Flammer, Hong and Minor, 2019). In order to understand
the customers, it is necessary to interact with customer's success team and monitor customer on
social media.
Understand the competition:
Unilever must focus on understanding the competition level in market in order to make
effective strategies through which company can gain competitive edge. To understand the
competition, it is necessary to begin by examining the marketplace. Unilever can also offer better
products and services to its consumers and also they can stand out better in market as comparison
to its competitors. Through understanding the competition, Unilever can also set their pricing
competitively and respond effectively to their rival marketing campaigns with strong initiatives.

Thus, understanding competition helps in providing opportunity to company to improve their
performance and bring new or innovative products and services in market that grabs the attention
of customer towards the brand.
Set competitive pricing:
Set competitive pricing is also a strategy which can be used by company in order to beat
the competitors. Unilever must focus on setting competitive pricing strategies for gaining
competitive edge in market. They must focus on researching which competitors offers the best
value. Thus, by determining the competitor’s bets value, Unilever can identify their offerings and
the value which they deliver (Jiang and Kim, 2020). Setting competitive pricing strategies helps
in increasing the performance and productivity of business.
Provide great customer services:
Unilever must focus on providing better customer service as compare to its competitors
as it increases the loyalty of customer and also helps in increasing the customer base. It is one of
the strategies through which company can beat their competitors. By offering high quality of
customer service, organisation can differentiate themselves with their competitors (Yukhno and
Osipov, 2021). Unilever must provide training and development opportunity to their employees
so that they can deliver better quality of customer service and make them satisfied with the
products and services. Thus, it also helps in increasing the performance and productivity of
business.
Hence, these are the strategies which is useful and helpful for the company to gain
competitive advantage. Through implementing these strategies, Unilever gain beta their
competitors and also enhance their business performance.
performance and bring new or innovative products and services in market that grabs the attention
of customer towards the brand.
Set competitive pricing:
Set competitive pricing is also a strategy which can be used by company in order to beat
the competitors. Unilever must focus on setting competitive pricing strategies for gaining
competitive edge in market. They must focus on researching which competitors offers the best
value. Thus, by determining the competitor’s bets value, Unilever can identify their offerings and
the value which they deliver (Jiang and Kim, 2020). Setting competitive pricing strategies helps
in increasing the performance and productivity of business.
Provide great customer services:
Unilever must focus on providing better customer service as compare to its competitors
as it increases the loyalty of customer and also helps in increasing the customer base. It is one of
the strategies through which company can beat their competitors. By offering high quality of
customer service, organisation can differentiate themselves with their competitors (Yukhno and
Osipov, 2021). Unilever must provide training and development opportunity to their employees
so that they can deliver better quality of customer service and make them satisfied with the
products and services. Thus, it also helps in increasing the performance and productivity of
business.
Hence, these are the strategies which is useful and helpful for the company to gain
competitive advantage. Through implementing these strategies, Unilever gain beta their
competitors and also enhance their business performance.
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