Strategic Management Case Study Analysis: Unilever's Strategy

This case study analyzes Unilever's strategic management, focusing on its processes and tools. It begins with a critical assessment of how organizations determine strategy, followed by an evaluation of key models like SWOT, PESTLE, and Blue Ocean Strategy, and their application to Unilever. The analysis examines Unilever's strengths, weaknesses, opportunities, and threats (SWOT), as well as political, economic, social, technological, legal, and ecological factors (PESTLE). The study also explores the importance of change management, considering the complexity, costs, risks, and sustainability of the transformation process within Unilever. The case study highlights the importance of strategic objectives, formulation, implementation, and evaluation for sustainable growth, while also examining the challenges and adaptations required in a dynamic business environment. The analysis concludes with an appraisal of how Unilever can navigate change management to achieve sustainable development goals effectively.

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Strategic Management
Strategic management case-study analysis
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Table of Contents
A critical assessment of the process used by organisations to determine their strategy.............3
An evaluation of the critical models and tools used by organisations to determine their
strategy........................................................................................................................................5
An application of these tools to a real organisation ...................................................................5
Critically appraise the importance of change management based on the complexity of the
transformation process, its costs, risks and sustainability ..........................................................8
CONCLUSION .............................................................................................................................11
REFERNCES:................................................................................................................................12
Books and Journals:..................................................................................................................12

Introduction
Every companies make a plan for their sustainable growth but many times their expected
goals are not met with the actual performance. It is noticed that why companies face these
differences (Stoyanova, 2018). It is identified that they are lack in making strategies and
importantly they don't know that how they can manage them. Strategic management is the key
source from which organisation can achieve their gaols and objectives. It is the important process
in which organisation take a support from this process to handle and control all the situations in
the operations and functions. In this context, Unilever is undertaken for analysing the impact of
strategic management. This report shows that strategic management helps in dealing with
implementation of change in organisation.
A critical assessment of the process used by organisations to determine their strategy
Strategic management
Strategic management is the process that helps to manage the all strategies that are made
by company in order to achieve their goals and objectives. It is very important for Unilever
because they regularly made their strategies so that their short term as well as long term goals
can be achieved easily (Edmondson, 2018). In strategic management process, manager always
make sure that all resources and capabilities are matched with the decided strategy so that
deviations can be mange by organisations. It helps in overall growth and sustainable survival. It
is identified that it can be make more effective if Unilever followed a systematic process of
strategic management.
Strategic management process
It has some steps that well explained for understanding the process that are mentioned
below:

Strategic objectives and analysis
It is the first stage in which Unilever firstly set their objectives and goals in their strategy.
Every strategy has made only for accomplishment of certain goals and objectives. If they have
not any goals then their strategy becomes useless. In simple words, if they do not set their
destination then the path become useless (Abou-Moghli, 2018). After setting the goals, Unilever
analyse the environment, culture etc. They are also focus on strategic choice in which they will
be make sure that what type of strategies they made. They can be business level and corporate
level, it becomes very important for deciding the way that how they can achieve their objective.
Strategic formulation
It is the second step in which Unilever need to formulate strategy so that they can achieve
their desired target and gaols. It is the process in which Unilever allocate all resources that they
are needed for accomplishment of gaols and objectives. It is very necessary because Unilever set
their path in such a way that helps in sustainable development and growth. Strategic formulation
focuses on meeting all the requirements that are necessary to acquired whether they are monetary
Illustration 1:
https://www.aamc.org/services/member-capacity-
building/diversity-and-inclusion-strategic-
planning-toolkit

requirements. It helps in making the process fluent so that there is no gap can be occurred for
attainment of goals. Their strategy should be proactive as well as adaptive that means the
situation that will be come in future they will easily cope up.
Strategic implementation
Strategic implementation stage is another important for Unilever because this is the stage
in which they are required to implement and execute the plan. Strategy implementation includes
converting plans into actions according to the processes, organisational development, resourcing,
etc. It always looking that which strategy are best for the company. Managers are responsible for
execution of strategy into their daily activity (Szabó and Öri, 2017). So that every member of
Unilever is aware about their plan and how they can use them into their actions. Strategic
implementation process include training programme because when any strategic in executed in
the organisation. It is necessary for people that they should perform their actions according to the
expectations of organisation and decide in the strategy. It can be achieve only when Unilever
providing training that how they can use those resources and match with their actions so that
strategic goals can be achieved effectively and efficiently.
Strategic evaluation and controlling
It is the last but not least stage as it assist in evaluate their strategy so that they can find
the differences that occurred in strategic implementation. It is very important for the organisation
because on this stage they evaluate the performance of each member and match with the standard
when that the are decide in the strategy. If the find any deviation then they should take measures
for control them (Nekhaychuk and et. al., 2019). Strategy implementation is not the end of this
process, it demands proper control so that if any situation can occurred during the
accomplishment of gaols and objectives then their correct actions can handle them.
An evaluation of the critical models and tools used by organisations to determine their strategy
It is analysed that strategy management process is very necessary for effective
management. It assist in overall achievement of gaols and objectives. It is identified that every
person should know the procedure of strategic management process. It helps in achievement of
goals that they are decide in their strategy. Unilever can easily achieve sustainable growth if they
are implementing the process easily. It is identified that very stage should be control and evaluate
so that Unilever make sure about their goals. It is the most important step that are pervasive at all
levels and stage in the strategic management process.

An application of these tools to a real organisation
A organisation wants to get success and growth but there are many factors that effect
their operations as well as growth. Factors can be internally and externally that affects overall
growth of organisation (Nakrošis, Šiugždinienė and Antanaitė, 2020). It is necessary for Unilever
that they should identify and analyse the environment with the help of effective tools such as
SWOT PESTLE and BLUE OCEAN STRATEGY analysis. Al three plays a crucial role in
assessment of internal and external factors. Both can be explained below:
SWOT analysis
SWOT analysis is the tool that assist in finding internal factors which can be positively
and negatively affect on organisation. It depends on their internal capabilities that can be find
with the help of SWOT analysis that are mentioned below:
STRENGTHS WEAKNESSES
 Unilever is the largest consumer goods
of UK that have a big brand image in
the market.
 They have various types of good that
are available which assist in satisfying
their customers need and wants.
 They use cost effective leadership in
which they are focusing on reducing
their price of products that
automatically reduce the profit margin.
 It is identified that have imitable
products that can be easily imitated by
other organisations.
OPPORTUNITIES THREATS
 They are now focusing on sustainable
growth that they are achieve with the
help of proper strategies and policies
(Hock and et. al ., 2019).
 They have a opportunist to differentiate
their product so that they can be
provide unique to their customers.
 Their biggest threat is competition that
is day by day increasing at a global
level.
 They have low profit margin that
reduce the investments in other
projects.

PESTLE analysis:
PESTLE analysis is another important tool for Unilever as it helps in finding the external
factors that are not controlled but can be adaptive by organisation with their flexible strategies. It
can be positively as well as negatively impact on organisation. The detail are mentioned below: Political factors: It is mainly concerned with stability of political conditions of
organisation in which Unilever may be face some issues or problems. It is identified that
UK has strong political conditions in which Unilever has a opportunity that they can
establish their business more because of fixed taxation policy (Putz, 2019). Economical factors: It is the factor in which Unilever make sure that their countries
growth rate is good but due to pandemic situation UK is in a liposuction of recession that
becomes stressful for company. They need effective strategies so that they can handle this
situation. Social factors: It is the factor in which Unilever tries to run their business with the trend
but it is identified that Unilever has some step back in this factors as they are not so much
trendy. Technological factors: Unilever is technically not so good which become the weakness
for company because day to day technology get updated rapidly. This factors waken the
I
llustration 2: https://mychartguide.com/what-is-pestle-
pestel-or-pest-analysis/

organisational growth and success. So that's why Unilever make changes in their
organisation structure, they are now more focus on technological up gradation. Legal factors: In this factor Unilever find that there are not have any legal factors hat can
affect their growth and success. But it is not recommend that they not be serious in any
legal legislation. They should comply all rules and regulations so that they can cope with
the conditions.
 Ecological factors: Unilever is one of the company that more focused on sustainable
development and that's why they are give their best in the company. They are reducing
plastic and more focused on renewable resources so that environment can less harm.
From the above discussion it can be analysed that SWOT and PESTLE analysis are very
important for assessment of internal and external factors. It assist in making strategies according
to the conditions. With the help of this analysis they are now make strategies so that they can
achieve their gaols and objectives. It become also helpful when company wants to change in
their organisation.
Blue Ocean Strategy

It is the strategy that in which few firms are present that gives very low competition to
the firm. It is basically depend on low cost strategy for the end users. Companies follows this
strategy when they want to redefined their boundaries of existing market. It refers to the stage in
which companies need to identify the customers' current value and then decide that what they
want to offer so that their needs are satisfied. This process is known as value innovation in which
company creates value that are think by their customers. It is applicable in Unilever as they want
to reduce competition with the help of low cost strategy. Unilever can identify the customers'
current values so that they can produce something new innovative products which satisfy the
needs and wants to customers with low cost.
Critically appraise the importance of change management based on the complexity of the
transformation process, its costs, risks and sustainability
When Unilever transfer their aim that they want to achieve sustainable development then it
becomes very tough for organisation that how they can achieve. Their are many things that can
be change due to their aim (Parayitam and Papenhausen, 2018). Their functions and operational
process can be fully change only because of their aims. It can be deal with the help of change
management in the organisation which makes the environment flexible so that they can adapt all
changes. It is very important that can be understand with the below points:
Complexity of the transformation process

It is identified that change become very impossible condition for Unilever because it
affects on level of management. They will be change their management as well as operations.
Change management helps in clearing out the necessity of change in organisation and all
members are able to perform according to the change.
Costs
Cost is the major factor that affect organisation very badly because when they implement
some change sin their organisation the it is found that they incur a huge cost. Unilever is try to
use only renewable resources and reduce plastic waste that generate another cost for organisation
(Nataliia, Victoriia and Dmytro, 2019). Now they want to their operation such as machinery, etc.
But it can be deal only with the help of change management. Change mange is tool that helps to
analyse the situation and take steps accordingly.
Risks
It is a very risky project for Unilever because they did not know that it can works or not
or may be spoil everything. But due to change management they are analysing the situation that
are internally and external then make strategies accordingly. Those strategies become helpful for
organisation.
Sustainability
Unilever wants sustainability and that's why they are going to change their overall
operations and management of organisation (West, 2018). It is very necessary for organisation to
choose change management in their operations so that they can cope up with all challenges.
It can be analysed that change management is necessary for organisation and apart from
this there are some challenge that faced by Unilever when they reorganize their management that
are mentioned below:
 When company moving from strategy into execution then they face many problems
because there are many things that are affected to the business. When company
reorganize after change then they face issue of agreement and dissatisfaction of
employees.
 Those person that mostly affect due to reorganisation are customers, suppliers, leadership
style, stakeholders and employees.
 Reorganisation changes duties and roles of every person in the organisation which
overlaps duties.

 It unclear the orders of top level management due to reorganize all functions of the
organisation.
All above setbacks can be deal effectively with the help of applying change management
process. Change management process is very helpful for Unilever after implementing the change
in organisation. It is the process in which organisation need to apply change management process
in such a way so that they can cope up with the situations that can be happened in near future.
There are some steps that are mentioned below: Prepare the Organization: It is the first stage in which Unilever make sure that their all
employees are aware about change in organisation. It assist in preparing them for change
which will be implemented in the organisation. Unilever announced that they are going to
change their aim as they want to grow with sustainability. With their announcement
employees are able to perform work in the organisation with change. Craft a Vision and Plan: Now it is the time for Unilever that make their vision and plan
according to the change. In simple words, when Unilever decided that they are now going
to change the aim then they make their vision accordingly and set a plan in which include
all things that are necessary for implementing change in the organisation. Implement the Changes: It is the stage in which Unilever implement their change that
they are plan in previous step (Drumaux, 2018). It is very important for organisation in
which they should be make sure that their employees need to perform actions according
to the plan. Embed Changes Within Company Culture and Practices: In this stage company need to
integrate the change into their daily activities so that every person is able to perform their
actions according to the change. It is very helpful in integration with the company's
culture and practices.
 Review Progress and Analyse Results: Last stage in which organisation need to review
their progress that they are going with plan or not. If they found any deviations then they
should take actions accordingly. It is very important for the organisation as it assist in
analysing the result. They can achieve the objectives if they are following properly.
Change management process is helpful for implementing the change in organisation in an
effective manner. With the help of change management process they are able to achieve their
organisational goals and objectives.

CONCLUSION
It is concluded from the above discussion that strategic management plays a crucial role
in the organisation as it helps in achievement of strategic gaols. It also helps in maintaining the
gap that occurred due to the implementation of change in the organisation. If strategic
management can be properly done then organisation easily achieve their different that they are
face previously. For that purpose they need to analyse the internal as well as external
environment with the help of SWOT and PESTLE analysis. They both are very important
because they can find internal and external factors that affect the organisation. It is also cover in
the report that change management process is very helpful tool because it support change in the
organisation and all members are perform accordingly.

REFERNCES:
Books and Journals:
Abou-Moghli, A. A., 2018. The relationship between entrepreneurship and strategic
management in small scale businesses: An empirical assessment of developing
competitiveness. International Journal of Business and Social Science. 9(9). pp.51-57.
Drumaux, A., 2018. Strategic management for public governance in Europe. Palgrave
Macmillan.
Edmondson, V. C., 2018. The Thinking Strategist: Unleashing the Power of Strategic
Management to Identify, Explore and Solve Problems. Emerald Group Publishing.
Hock, O. Y., and et. al ., 2019. Developing a Framework on Performance and Challenges of
Strategic Management Information System: A Case study on Ministry of Interior,
UAE. International Journal of Academic Research in Business and Social Science. 9(5).
pp.633-646.
Nakrošis, V., Šiugždinienė, J. and Antanaitė, I., 2020. New development: Between politics and
strategic planning—the management of government priorities in Lithuania. Public
Money & Management. 40(4). pp.299-303.
Nataliia, Z., Victoriia, B. and Dmytro, K., 2019. The quality of financial education as the basis
of proper human resources for economic security strategic management. Academy of
Strategic Management Journal. 18(6). pp.1-5.
Nekhaychuk, D., and et. al., 2019, June. The place and role of strategic planning in the business
management system. In Volgograd State University International Scientific Conference"
Competitive, Sustainable and Safe Development of the Regional Economy"(CSSDRE
2019) (pp. 22-27). Atlantis Press.
Parayitam, S. and Papenhausen, C., 2018. Strategic decision-making. Management research
review.
Putz, M. V., 2019. The Cube of Strategic Management: The Distinctive Advantage of
Organizations. CRC Press.
Stoyanova, V., 2018. An Analysis of David J. Teece's Dynamic Capabilites and Strategic
Management: Organizing for Innovation and Growth. Taylor & Francis.
Szabó, Z. and Öri, D., 2017, December. Information strategy challenges in the digital era how
enterprise architecture management can support strategic IS planning. In 2017 11th
International Conference on Software, Knowledge, Information Management and
Applications (SKIMA) (pp. 1-8). IEEE.
West, G. P., 2018. Strategic Management: Value Creation, Sustainability, and Performance.