Strategic Analysis of Unilever's Direction and Competitive Edge

This report provides a comprehensive strategic analysis of Unilever, examining its strategic direction over the past five years, including marketing, product expansion, and international strategies. It analyzes Unilever's external environment using PESTLE analysis, identifying political, economic, social, technological, legal, and environmental factors. The report also assesses Unilever's competitive advantages, such as market penetration, product development, and diversification, in comparison to its competitors. Furthermore, it explores the extent of strategic drift within the company and utilizes internal analysis tools to draw conclusions, including the Business Canvas model. The report concludes by discussing potential strategies Unilever could employ to defend its core business and the implications of these strategies on the organization. This analysis provides valuable insights into Unilever's market position and strategic approach.

STRATEGIC
MANAGEMENT

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P.1. Strategic direction of Unilever Organisation which is following within the past 5 years
and the way of strategic thinking................................................................................................1
TASK 2............................................................................................................................................3
P.2. The detail analysis in which Unilever company is operating..............................................3
TASK 3............................................................................................................................................5
P.3. Use of relevant internal analysis tools to draw appropriate conclusion...............................5
Use of Business Canvass model: ...............................................................................................7
TASK 4............................................................................................................................................7
P.4. Discuss the possible strategies that Unilever could follow to defend its core business .....7
TASK 5............................................................................................................................................9
P.5. Implication of the strategy on Unilever organisation..........................................................9
REFERENCES..............................................................................................................................12

INTRODUCTION
In this documentation, this assignment review about Unilever company's strategic
direction from the last 5 years which is making support them to playing lead role in the industry
effectively. Moreover, this assignment will discuss about appropriate model of the company
analysis by which external environment of the organisation could be assessed efficiently.
Furthermore, this analysis describe about mission and vision statements of Unilever firm which
is aligned with demand of the marketplace in the industry effectively. Apart from it this
assignment define about some possible strategies by which might be adopted by the company in
order to defend its core business effectively.
TASK 1
P.1. Strategic direction of Unilever Organisation which is following within the past 5 years and
the way of strategic thinking
Varied sorts of strategic direction is being used by Unilever company's professionals and
business developer in order to sustain in the market efficiently. There are various innovative
marketing, financial and resourcing innovative strategies are implementing by the business entity
in order to keep themselves high stage in the market more effectively. From the analysis, within
the past 5 years, the way of strategic thinking is extremely excellence in the organisation with
furnish proper value towards firm which get them at high level in the industry effectively.
Unilever is Dutch transnational consumer goods organisation which is furnishing products
involves foods and beverage products, cleaning agents and personal care products (Zott and
Amit, 2010). This is one of the largest consumer goods company in the world, from the past 5
years, it is operating with maintaining its well status in the industry, because of its strategic way
of thinking in food and beverage industry in more unique than its competitors to sustain in the
competitive market more effectively. The world's business environment is changing in rapid
manner and the organisation also need to modify their strategy according to the industrial
environment, so that favourable decision could be made within the company effectively and with
the help of strategic decision, a by which they can achieve more effective success in the business
efficiently.
Marketing strategy: This is one of the major organisational function which must be done
in proper manner in order to appropriate promotional activities of Unilever company's product
and services within the industry, so that it could increase sales and brand equity in the industry
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efficiently. Marketing is a process by which the firm deliver its essential values to their
customers in efficient manner and effectively managing customer relationship with the loyal
customers which would furnish advantage and benefits to the organisation and its stakeholders
efficiently. Unilever company has been following effective strategy from the last 5 years and its
professional way of strategic thinking is excellent which make them more professionalism and
competitive in their sector efficiently (Woerner and Wixom, 2015). The company is mostly
furnishing home using product and services effectively and making personal care products which
is used usually at the home. They are implementing effective promotional activities and
attractive advertising strategies with furnishing value added product and services to their existing
customers which make them more excellent within the business sufficiently.
Product expansion strategy: From analysis of Unilever Company’s effective strategy
from last 5 years, company is making its major focus on developing products and services
according to existing customer's demands and requirements which provide value added services
to customers in efficient manner. Company owns more than 400 brands which have been
categorised into 4 major classifications such as Foods, Refreshments, home and personal care
products, etc. This is the largest brand in world which is selling high quality of consumer goods
and services across world. From last 5 years, company has made development in its product
expansion strategy which increases its valuable products like Dove, Flora, Knorr, Heartbrand,
Dermalogica, etc. These are the most popular brand around world in their separated particular in
company efficiently.
Internation strategy: Variety of operational business activities are being done by the
company in the industry in effective manner. In terms of operational of their business functions
at multinational level, it could be find out that, various distinguish is being generated within the
international business environment in the organisation efficiently. Their international strategy
refer to the process of implementation of global strategy, a transnational strategy and multi
domestic strategy at international level (Teece, 2010). They are functioning their business
activities at international level and making great influences on the business environment at
international level by their global strategy of making impact of sales and brand value in
international market effectively.
Online sales strategy: Company has come up with new sales strategy according to era of
sales strategy in foods and beverage industry. There are variety of company operating within the
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market effectively and furnishing their goods and services in more effective manner. The
company own 400 brands and sufficiently sell them around the world effectively. So from the
past 5 years, the company has been made innovation in their sales and production techniques
which assist the company to increasing in their sales of product and facilities efficiently. The
company focus on work closely with retailers at various paces to meet to their marketplace
objectives efficiently. They utilise appropriate sales strategy such as making sure that their all
associated brands product and services are always available and appropriately displayed in all
channels firm the supermarket and e-commerce sites within the business effectively. The
company's strategic professionals think that e-commerce is the most appropriate way of selling
our product and services that's why they adopted this strategy in their business in effective
manner.
TASK 2
P.2. The detail analysis in which Unilever company is operating
In terms of proper analysis of strategic development and external environment of the
company. There are various models presented here, which could be utilised by Unilever
company in order to identify their competitive strategy within the industry and some vital
external factor of the company which make influence the business in great manner (Spender,
2014).
PESTLE analysis of Unilever company:
Political environment: Unilever company has been set up their standard at that level in
which they can tackle political issues within the country effectively, the business entity has its
own tactics and approach to resolve their political issues within the organisation efficiently. The
company follows the strategy by which they can establish better relationship with political
leaders and make influence on them.
Economic environment: The business market climate is becoming more complex and
competitive within the industry, particularly in the UK. Because of the major competitor of the
company is presented here which is P&G. In the expensive market, most of their consumer does
not want to but high prices goods and services which generates more economic difficulties
towards the organisation (Sokol, 2011).
Social environment: The social culture of the most of the western counties making
influence in the operation and product and services of the brand in the industry effectively. The
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firm most often make effort to maintain relationship with social-cultural environment of the
country effectively.
Technological environment: Unilever organisation often implementing strategy of
diversifying of their technological sector within the industry effectively. Innovative technology is
being adopted by the corporation within their product and services in the industry properly so by
this, they would be able to make improvement in the quality of product and furnish value added
branded goods to their existing consumers in the market efficiently.
Legal environment: There are many legal factors which affect the operation activities
and strategical approach of the company within a particular country effectively. Legal
components make impact in changing strategy of the organisation in order to sustain in the
market efficiently.
Environment: The business entity identify the local responsibilities of the company and
formulate corporate social responsibility action towards the local society within the country
effectively (Slack, 2015). Unilever organisation respect their company's consumer's health and
safety properly, which make them impressive brand at global level.
Unilever's competitive advantage among its direct competitors
Market penetration: Unilever organisation utilise market penetration strategy in order to
gain appropriate growth in the market and make effective competition to their major competitors
in the market. In this appropriate strategy, the business entity is making major focus on
increment in their revenue generation and related growth of the industry effectively in the
industry sufficiently. The companies dedicated efforts make them effective in the market and
furnish the value them to meet the desired needs of their existing customers.
Product development: Unilever business utilise this strategy at the workplace in order to
gain proper growth in the market which give extreme competition to their competitor directly
(Scholes, 2015). The company is focusing in developing in its existing products to new product
range entirely so that it makes increment in the sales of the business efficiently so that it
generates the market sales of the company efficiently.
Diversification: Unilever business entity utilise diversification strategy to create
competition in the market effectively. The firm acquire another business entities over time, like
make collaboration with personal care corporation of Sara lee business in 2009-2010. Unilever
company offer brands product and services at different-different level with delivering unique
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features into them which attract more consumers in the market. It creates more competition in the
market more effectively.
The probable industry scenario facing Unilever company within its existing market
domain
Unilever organisation is functioning their business activities most of the European market
and across the world as well. They need to make development in some of their areas to sustain in
competitive market more effectively. Unilever company has been one of the largest consumer's
goods selling organisation in the world (Pehrsson, 2010). With the help of appropriate
technological and innovative modification in their strategy in order to sustain in the market more
efficiently. The company is playing leading role in consumer food and services provision
company. There are several competitors are presented here in the world which is creating more
competition to the company by implementing innovation and technological changes in their
operation effectively. P&G is one of the major competitor of the organisation at the international
market which is major threat of the firm to make them get down in the competition by applying
innovative strategy in their workplace. The recent scenario of the food and beverage industry in
becoming more complex and competitive in the industry so that, they need to make development
in some of their effective areas of improvement in production and services procedure which can
make them leading player in the existing market domains effectively.
TASK 3
P.3. Use of relevant internal analysis tools to draw appropriate conclusion
The extent to which the company is facing strategic drift:
 In the complex competitive market in UK, the company wants to furnishing effectively
product and services through lower price approach by economic scale of the company in
industry efficiently (Moon, 2010).
 The company wants to become leading player in consumer goods supply product and
services effectively. The business strategical professionals frequently make requisitioning
with other top brand which furnish the managing more consumer goods and increase the
sales of the business production and services efficiently.
 Unilever company has its own manufacturing plants, factories, distribution channel and
supply chain in various market in the world. So the firm wants to expand their plan in the
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industry more efficiently so that they need to change in their global strategy of business
and strategic drift of the organisation.
 The frequently growth of economic environment of the company also make impact on the
company's environment in efficient manner so that the company wants to make
transformation in their production and service level of the company in industry (Mitra
and Bhardwaj, 2010). This environment influences the organisation to make changes in
their existing strategy in order become leading player and create extreme competition
level in the consumer goods industry.
Unilever's mission and vision statements are aligned to the demand of the marketplace
Unilever's mission statements:
Unilever's mission statements define about the strategic formulation of the organisation
towards effectively in order to proper address the demand of their each existing customers within
the industry efficiently. Moreover, Unilever organisation's mission statement define that, it
furnishes product and services which add property to the life of people. The organisation
furnishes each day's needs of nutrition, hygiene and personal care product and services that assist
people feel good in their lives and look good and get more valuable life in their lives effectively.
The mission statements says that how the company is making efforts in order to satisfy the needs
of each people in the organisation in efficiently (MacGregor, Business Objects Software Ltd,
2010). Mission statements of the company is aligned to the demand of the marketplace. Business
professionals formulate their mission strategy according of demand at marketplace.
Unilever's vision statements:
Unilever's vision statements define that their targets in the future which they have to be
accomplished within the predetermined time period within the industry effectively. Its vision
statements stated that, to make sustainable relationship with their customers at common
marketplace and their professionals believe that this is one of the best long-term form to execute
our business activities to grow the company in the industry effectively. Our vision is aligned to
demand of the marketplace which help them to formulation of strategy of organisation towards
common marketplace unattainable living, this is the best long-term way and business growth of
the company effectively.
Unilever's strategic capabilities:
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Unilever company's professionals make effort to formation of its effective strategy at the
workplace by which they could become one of the leading player in the industry effectively.
From the company strategy analysis, it has been seen that, from the past 5 years, the business
entity is making its major focus on the development in some of the areas such as implementation
of innovation in their production and services provision process and making acquisition with
several top brand in the market etc. (Kalyani and Sahoo, 2011). All these strategies furnish the
value towards the company by which they would be able to become more capable in strategic
environment to sustain in the complex competitive market more efficiently. The company also
implementing innovation in their major services and making strong customer relationship with
their existing customer's in the market so that their sales and brand effectiveness could be
improved within the organisation in efficient form.
Use of Business Canvass model:
This is one of the essential model for strategic management and entrepreneurial tool
which could be used by business professionals in order to identify describe, design, challenge,
invent and pivot you business model. This is the model which furnish the process by which
business developer could make segmentation according to the ways of Canvas model. This
segmentation easy to understandable for business analytical in order to identify the key partners
of the business entity, key activities of business aims, key resources, value and positioning of the
enterprise, customer relationship, channels, customer segmentation, cost structure and revenue
streams of the company as well (Haley, Haley and Tan, 2011). This is the process which assist
the business to make effective communication with their existing team within the organisation
efficiently. This provides some essential values to the firm about in which areas Unilever firm is
focusing and what they will get success in their business as well. Its assist the innovation
adoption in the company. It analyses that what is the strongest stream of your organisation and
how they are associated to each other within the company efficiently. It defines about to how the
company creates according to the demand of customers and the core values of the business will
help the business to generate more revenue and customer relationship within the industry
efficiently.
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TASK 4
P.4. Discuss the possible strategies that Unilever could follow to defend its core business
Multiple variety of strategies are presented here in the industry which can apply by
Unilever company in order to sustain the market more effectively and also expand their business
functionality to their core business activities of the corporation.
Think long term: This is the perfect possibility of the business in terms of sustain in the
market more efficiently. Unilever business professional and strategic developer need to think
long terms in order to sustain in the market for long term while. In today's world, short-terms
strategy is mostly implemented by the businesses but it gives only short term return on their
investment in their business (Issa-Salwe, Ahmed, Aloufi and Kabir, 2010). Long terms vision of
the company is being one of the major strategy to sustain in the market properly and think about
to their long terms vision in the industry perfectly so that desired goals and objectives could be
accomplished within determined time period in the industry effectively. Unilever organisation is
making effort to formation of long terms strategy to sustain in the complex market and follow the
trends of globalisation within its business environment. The company can set their long terms
target with making collaboration with some other top brands in the market and set up common
vision to accomplishment of their predetermined targets and objectives sufficiently.
Clear vision: Clear vision strategy also could be impressive for the organisation in order
to accomplish their predetermined targets and goals within the industry effectively. The company
must set up their clear vision about production and service provision process of consumer goods
within the industry effectively. Unilever firm might set up their predetermined goals and
according to their vision make efforts to focus on those areas by which they could make
improvement within the organisation effectively (Gold, Seuring and Beske, 2010). Moreover, the
organisation also set up clear vision towards the marketing strategy and promotional strategy of
their innovative product and services in the organisation, which could assist the entity to make
effort in terms of accomplishment of their desired goals and objectives.
Sustainable innovation into the business: Unilever business need to make major focus in
USLP targets with functioning its ore business practices in the industry effectively. Across the
firm, the business entity has also started to furnish its loyal employees some essential tools, skills
and experience to become more capable to meet to our targets USLP in context of sustain in
complex market more effectively. The production cutting edge strategy is not enough for the
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corporation, its employees will move towards changes in trends of the business in the industry
and make efforts towards the firm by which they could reach their predetermined target and
goals effectively (Fox, 2012). So they need to make development in some areas by which they
can generate more effective services to them in effective manner. The company can implement
some essential innovation in their production and service provision process so that the company
will be able to defeat its core business within the industry efficiently.
New product expansion: Unilever company could use of this strategy to new product
expansion in their business so that their business will get more popularity within the industry
efficiently. They could make development in some areas by which they can make equation with
some other top brands and also enhance the production process of the organisation sufficiently.
With the help of equation approach, the organisation will be able to expansion of several kinds of
new products and services in the industry in effective manner. Variety of products is selling by
Unilever firm across the world and with the help of innovation approach, they could also great
enhancement in their business quality in the company in effective form.
Change the system: Unilever company's professionals realised that, common barriers of
the organisation usually comes in the market and they need to centring on those areas which is
already increasing efforts in the organisation effectively (Coad, 2011). Unilever company is
trying to make change n some of its crucial system in the organisation which come up with the
process by which they can make great influences in engaged suppliers of the company in the
market effectively. Customers change the strategy of the company in which they can generate
more effective services and create an environment to the particular situation in which they can
consume the goods' industry possible in the industry efficiently. The company need to set up
changes in their system of working so that their core business could be defeated in the industry
effectively.
TASK 5
P.5. Implication of the strategy on Unilever organisation
Resources implication of the selected strategy:
Variety of sources are presented here in order to sustain in the market in proper manner
so that each one of them would be able to assist the business to formation of appropriate strategy
and selection of proper strategy in the organisation in effective manner so that the company will
be able to implement sustainable development in their business so that effective outcomes could
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be gained. Human resource department of Unilever company need to find out the path by which
they will be able to get success in the future in more effective form (Burlton, 2015). They need to
define that where is the company now in the market and find out the strength and weaknesses of
the organisation in an important context so that company's positioning could be identified
efficiently and effective decision could be made in terms of selection of the business strategy in
order to proper development of their issues in effective manner. As well as, the business
developer of Unilever company require making identify the targets in which the company wants
to standing the future so that, it would make development in some areas by which they can
generate more effective services to them so that efficient development could be gained in the
business in effective manner. HRM function would be able to resources the path by which they
could find out the areas in which they can identify the proper strategy of the business within the
industry efficiently.
Relationship among key resources areas within Unilever:
There are some essential key areas of Unilever business in order to making development
in some areas by which they can generate more effective issues to the firm so that effective
decision could be gained by the business owner within the industry effectively. These all
function of the businesses are interrelated to the organisation in efficient manner so that effective
strategy could be formulated within the business environment effectively. The academic concept
define that the major relationship between HR and finance is that, they make major decision
towards implementation of the strategy in the company effectively. HR function of the business
ensure that their all selected strategy is being operated according to the predetermined strategy of
the firm and in case of finance department, they analyse the strategy by which they can develop
some path in which appropriate financial development could be gained by the finance manager
according to the strategy of the organisation efficiently (Aharoni, 2015). Finance department of
the firm make communication to Operational department of the company in order to appropriate
running condition of their marketing and technological strategy in the organisation in effective
way. They use their strategy to relevant implementation of marketing and promotional activities
of their existing innovative products within the organisation with the assistance of technological
tools and equipments at the workplace.
Critically analysis and application of strategic implementation models:
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