DBN 603 - Strategic Management: Unilever NZ Business Environment

This case study examines Unilever New Zealand's strategic management and business environment, focusing on the impact of its sustainable business plan on profitability, competitive position, and supply chain. It highlights the company's shift to long-term investment planning, its challenges in maintaining employee satisfaction and brand equity, and recommendations for improving management accounting processes and marketing strategies. The analysis also addresses the role of the new CEO in implementing sustainability development goals and enhancing employee welfare through initiatives like the Fair Compensation policy and Vision Zero Strategy. The document is available on Desklib, a platform offering a wide array of study tools and solved assignments for students.

Running head: BUSINESS ENVIRONMENT AND STRATEGIC MANAGEMENT
Business Environment And Strategic Management
Student’s Name
University Name
Author’s Name

2BUSINESS ENVIRONMENT AND STRATEGIC MANAGEMENT
Table of Contents
Question 1.............................................................................................................................................3
Question 2.............................................................................................................................................4
Question 4.............................................................................................................................................4
Question 4.............................................................................................................................................5
Question 5.............................................................................................................................................5
Reference List........................................................................................................................................7

3BUSINESS ENVIRONMENT AND STRATEGIC MANAGEMENT
Question 1
 The profitability of Unilever, New Zealand depends on the successful
implementation of the sustainable business plan of the company in New
Zealand. The company has witnessed a 46% higher sales of the products of
the sustainable brands of the corporation.
 Since 2016, 70% of the profit earned has come from the sale of these
products. The sustainability based product line ensures the productivity of the
company by cutting costs also. This involves limited use of energy which has
saved about 490 million NZ Dollar for them. Moreover, the popularity of the
sustainable products of Unilever in New Zealand would strengthen the
competitive position of the company in the country.
 The company intakes raw materials mostly from sustainable sources. For
evidence the organisation fetches 80% of its agricultural raw materials from
small holder farmers, who provide supplies at 18 to 25% lower cost.
 Besides, as per Kroftet al. (2016), the effect of economic change in future
would be least on such suppliers. Hence the company would be able to
maintain a risk-proof supply chain.
 The Sustainable business model also enhance the employee’s relations and
ensures skill development of the employees. The employees’ receive special
training to understand the needs of local sustainability, which might ensure
the welfare of both the country as well as the organisation. Moreover,
sustainably survey allows them to employ locals, thereby creating more
employment opportunities.
 The sustainability model also is made more popular by the use of
technological innovations. For evidence in New Zealand, the company uses a
packaging technology that ensures least impact on the ecology and creates
thoroughly biodegradable yet lucrative and attractive packaging.
 Lastly, by means of this sustainable business model, the organisation aims at
creating value towards the society also (Unilever.com.au, 2018). The
company has not only reduced about 5% of the environment footprint by using
less energy and reusing resources, but also provided employment to the
locals in high scale.

4BUSINESS ENVIRONMENT AND STRATEGIC MANAGEMENT
Question 2
 New Zealand Unilever had a rising graph of Shareholder return after the new
CEO joined the company. However, the rate of return fluctuated and started to
detoriate. Searching the flaws in the business strategy Demarco et al. (2015),
concluded that the transition to a long term investment planning increased the
market shares initially. However, not all the stakeholders were ready to invest
more, (doubtful of leaving short term goal making), and walked out.
 This had a promo effect on the market share. However, the company have
been returning shares to their shareholders that are not exponential but
steady in rate. Hence, it is preferable that Unilever stick to their long term
investment strategy. The Human Resource policy followed by Unilever is
promising.
 However, they have not created value as the natural choice of employees.
This is why, the company was left out of the list of top 50, and employees
choose to work for. Hence in order to ensure employees satisfaction, the
company must take few measures. They can remove the complimentary
training for the employees, or raise the appraisal value for more skilled
employees.
 The brand equity of the company is also not high in New Zealand. The
network of food and personal and/or home care brands have consumed the
brand loyalty.
 The brand value of parent brand always helps to occupy new markets with
easier. The organisation should preach the brand name of Unilever with
greater will.
Question 4
 Unilever has a concise and stable budgeting process for New Zealand.
However, some new inclusions can help the new CEO to reap the advantages
of management accounting. Firstly, the supposals of the budget, have to be
aligned with the long term budget plans of the company.
 However, the new CEO have to ensure proper communication between the
shareholders because the budgeting process for the long term goals is totally
dependent on the factors like expense, assets, finance and other factors

5BUSINESS ENVIRONMENT AND STRATEGIC MANAGEMENT
which requires an unified decision to be taken by all the shareholders and
stakeholders. Besides, a new management accounting information process is
also required.
 As per the ideas of Fayard (2015), this system can help the organisation to
gather data from the external as well as the internal sources. This is crucial for
avoiding situation like the negative voting of the VEB against Mr Burgmans,
as evident from the case study. In this context, the new CEO also needs to
incorporate a management reporting process.
 Local IT agencies of New Zealand have to be given the charge of
management reporting so that fund analyses, variance analyses and
statistical analyses of the supply chain and the variegated product line of the
comp any can be done with transparency.
 Quinn (2014),states that in the context of management accounting, the
costing process is also significant. The costing process of the company is very
accurate and the new CEO should take advantage of the infrastructure.
Question 4
 Marketing is integral to the success of the company in the long run. In order to
implement the sustainable business model, the company needs appropriate
marketing.
 Product marketing should be done in such a way that the customers can
connect to them. Innovative marketing techniques to reach out the customers
have to be framed.
 The sustainable business policy of the company should be marketed through
advertisements.
 The company can release a new series of advertisements that would discuss
the efforts undertaken by the company like reducing waste producing and
increasing recycling of reusable wastes along with reduction in the use of e
Wastes.
 The audience, when they come to know of these endeavours would feel
connected with the products as they would perceive that the products they are
purchasing generate value towards the society.
Question 5

6BUSINESS ENVIRONMENT AND STRATEGIC MANAGEMENT
 Polman has been chosen by the directors for making revolutionary changes in
the organisation. However, Unilever is a company with a standard, core
business model. In the new business domain, the CEO have to formulate
strategies that addresses the sustainability development goals of the UN.
 Employee allowances like health and wellbeing of the employees can be
promoted through appraisal policies. The Fair Compensation policy of the
company have to be run in New Zealand also.
 As such, Glendon, Clarke and McKenna (2016), opines that the local
employees of New Zealand would come under the Lamplighter campaign and
gain cash allowances for medical needs. Besides, the Vision Zero Strategy
should also be implemented in New Zealand facility of the company
(Unilever.com.au, 2018).
 Under the framework of the strategy, the employees of New Zealand Unilever
would get insurance in cases of Fatalities, big injuries, process incidents or in
case of intolerable behaviour or practice against them in the workplace.

7BUSINESS ENVIRONMENT AND STRATEGIC MANAGEMENT
Reference List
Demarco, F. F., Collares, K., Coelho-de-Souza, F. H., Correa, M. B., Cenci, M. S.,
Moraes, R. R., &Opdam, N. J. (2015). Anterior composite restorations: A
systematic review on long-term survival and reasons for failure. Dental
Materials, 31(10), 1214-1224.
Fayard, D. (2015). A Case For Using A Fixed-Cost Funding Model For State-Funded
Higher Education Institutions: A Management Accounting Perspective. AAUA,
30(1), 27-33.
Glendon, A. I., Clarke, S., & McKenna, E. (2016). Human safety and risk
management. Crc Press.
Kroft, K., Lange, F., Notowidigdo, M. J., & Katz, L. F. (2016). Long-term
unemployment and the Great Recession: the role of composition, duration
dependence, and nonparticipation. Journal of Labor Economics, 34(S1), S7-
S54.
Quinn, M. (2014). Stability and change in management accounting over time—A
century or so of evidence from Guinness. Management Accounting Research,
25(1), 76-92.
Unilever.com.au, (2018). Sustainable growth: Values + Values. Retrieved on 09
June 2018. Retrieved from https://www.unilever.com.au/