Industry Trend Analysis of Unilever UK: A Comprehensive Report

This report presents an industry trend analysis of Unilever UK, examining its strategic decision-making, external and internal environments, and competitive landscape. It begins with an introduction to strategic management and the challenges faced by companies in a rapidly changing world. The report then provides an overview of Unilever, its competitors, and the issues it faces, such as competition and technological advancements. A detailed analysis of Unilever's external environment is conducted, including discussions on market trends, economic factors, and the impact of the COVID-19 pandemic. The analysis also highlights Unilever's Blue Ocean Strategy. The internal environment is explored through competence analysis, including strengths, weaknesses, and the application of the McKinsey 7S framework. The report concludes with findings on Unilever's competitive position, the impact of change and culture, and strategic implications for future success. This assignment, contributed by a student, is available on Desklib, a platform providing AI-based study tools for students.

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Industry Trend Analysis of Unilever UK
Report
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Introduction
Modern management relies heavily on strategic decision-making, which is essential to a
company's long-term success and survival. In several studies, the importance of senior
management's involvement and the process of making strategic choices is stressed (Papadakis,
2017). Managers and academics want to improve their strategic decision-making capabilities.
Strategic decision-making must be strengthened in light of current environmental and
management challenges. The weather is becoming more erratic and violent. The world around us
is evolving at a fast pace. In the past, progress was slow. They are on top of the latest fashions,
which prior generations may not have been. For example, the pace of technical and other
developments may be measured by us. New possibilities and dangers may arise as a result of
these adjustments. Monitoring, investigating, and anticipating environmental change has become
more challenging. A new set of abilities and approaches are required for strategic decision-
making.
2. Part 1: IndustryTrend Report –Unilever UK
2.1 Introduction & Identifying Issues
Unilever is a global food, personal care, cleaning, and beverage company in more than 100
countries. William Hulme Lever Viscount Leverhulme and Samuel van den Bergh formed
Unilever PLC on January 1, 1930, with Antonius Johannes Jurgens and Samuel van den Bergh as
partners. The organisation has adopted several strategic management strategies to remain
competitive in ever-changing business settings. Nestlé, Reckitt Benckiser Henkel, and Procter &
Gamble are the company's main competitors (Unilever Official Website, 2019).
Despite its international financial success, various issues are found in its production procedures
and strategies. When a company decides to produce the same product in several countries, some
will lose out. The company also has the challenge of distinguishing its products from those of its
competitors without packaging. It is challenging for its leadership to establish a strong brand
identity. The company has suffered financial losses due to being caught off guard by quick
improvements in technology.

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2.2 An Analysis of an Organisation’s External Environment
Businesses are affected both favourably and badly by their operating environment. For example,
a rising number of young people throughout the globe rely on Unilever's products as they grow
up. Having a larger population increases the demand for firm products, but it also necessitates a
more innovative approach to product development. In addition, in line with rising living
standards, demand for the company's products increased (Penrose, 2015).
The company benefits from the world's fast technological advancement, but it also faces
particular challenges. Computerised supply chain and logistics management systems have
allowed the company to run its business more effectively, resulting in considerable financial
gains for its owners (Sadler, 2017). Since the global financial crisis of 2007, the global economy
has rebounded. However, company sales were severely affected by the financial crisis but are
currently improving. In 2019 and 2020, sales increased, demonstrating that the company's
strength is increasing.
Unilever is aggressively extending its operations to take advantage of the new markets that are
opening up due to the improved global economic environment. Now that the political
environment favours business, Unilever may grow its activities outside of its founded nation. It is
the responsibility of the company to abide by the nation's laws and business rules when doing
business in the country. Due to growing competition from international corporations offering
equivalent services, the company's issues directly result from globalisation. Companies from
across the world vie with one another for the firm's attention (Neave, 2018).
Blue Ocean Strategy of Unilever
For firms and brands like Unilever, the blue ocean strategy is about establishing a distinct
identity that differentiates them from their rivals. A technique known as the blue ocean strategy
aims to increase demand in an uncontested market sector, rendering competition irrelevant.
Heavy hitters like Unilever might redraw market boundaries and reorganise the sector using the
"blue ocean" strategy. A flexible industrial structure is assumed in the blue ocean model and
framework.

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Unilever explored new market segments using the blue ocean method and framework since such
segments were neither competitive nor actively utilised by existing rivals. As a result, Unilever
has generated new demand rather than taking market share away from existing competitors.
Because of its rapid growth, Unilever has enjoyed increased profitability. Since rivals are no
longer relevant, Unilever's "blue ocean" strategy is a game-changing way of thinking.
The blue ocean signifies uncharted terrain with limitless potential for growth and business
expansion. There are several ways in which Unilever employs the blue ocean strategy.
A Comparison of the Blue and Red
Unilever has a "blue ocean" strategy to expand into new areas quickly. In both the red and blue
oceans, Unilever has a strong presence. The strategy used relies on the product, the company's
goals, and the evolution of the market.
The following aspects differ between Unilever's red and blue ocean strategy.
Red-Ocean Strategy
 In well-established markets, Unilever faces out against well-established competitors.
 Unilever aims to get a slice of the pie already out there.
 Value and affordability are two things Unilever is willing to compromise on.
 Unilever has a low-cost approach to differentiate itself from its competitors.
Blue Ocean Strategy
 Unilever New markets are created, rivals are rendered obsolete, and redrawn industry
boundaries.
 As a result, Unilever creates new demand and a new pie for itself.
 When it comes to value-cost trade, Unilever has shattered it
 Unilever strives to differentiate itself at a reasonable cost.
Unilever and COVID-19 Pandemic Period

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Unilever has escaped the Covid-19 outbreak because of its widespread usage and recognition.
Unlike other corporations, Unilever's brand sales are resilient. Food makers must work more to
protect their brands. The virus has changed the globe. Pandemic victims seldom purchase
personal hygiene products instead of fundamental necessities (Laato, Islam, Farooq, and Dhir,
2020). Turabi and Wuryaningrat (2020, p. 1) argue that people change their habits. Prototyping
facilities many retail stores are closing. People are more health concerned and want to prevent
becoming sick. Therefore, they look at goods and services differently.
Businesses with great environmental design attract more customers. To prevent infection, the
owner must also follow the rules. The epidemic has not affected many Unilever feminine
hygiene products. The virus will only take months to accelerate long-term systemic patterns
(Accenture, 2020). Personal responsibility for health and environmental well-being is becoming
more crucial as the world advances toward more meaningful and long-term forms of
consumption. This is a sustainable society. Despite the worldwide epidemic, Unilever has
impacted millions of lives. No matter how hard it tries, Unilever must promote brands like Dove
and Clear.
2.3 An Internal Environment Competence Analysis
Internal features influence management decisions (Hitt and Hoskisson, 2020). Internal
environment analysis aids managers in evaluating their current strategy and resources (Henry,
2018). A company's competitive advantage and opportunities for improvement may also be
identified via this process (Campbell et al., 2020). Therefore, Unilever UK's internal
environment must be understood locally and worldwide.
Strengths and weaknesses are internal and external forces, respectively. Internal Analysis is a
well-known management technique that helps Unilever compare its company and performance
against its competitors. Unilever is a well-known FMCG company. Because of this, Unilever is
now using certified palm oil and raw ingredients in the production of its food products, which
adhere to globally recognised nutritional standards. "Lowering production costs below
competitors may boost value-added," say Campbell et al. (2020). (p. 42). By reusing and
recycling packaging, Unilever has been able to save expenses. In order to reduce production
costs and improve competitiveness, Unilever has formed alliances with transportation

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companies. According to Campbell et al., all participating organisations benefit from
complementing core capabilities.
Mckinsey 7’s Framework of Unilever
Using the McKinsey 7-step approach, business leaders and executives may develop a clear and
comprehensive strategy. The McKinsey 7s model identifies seven critical aspects for a firm to
manage change and effectively enhance its performance. UK consumer goods giant Unilever has
benefited from the 7s strategy of the McKinsey consulting firm. When it comes to product
performance, Unilever depends on the model's seven facets.
1. Strategy
All workers and stakeholders are aware of Unilever's overall strategy and strategic direction.
Helps guide operations and create procedures to support the company's long-term strategic
strategy. As a result, Unilever's operations are more open and coordinated due to the business
plan development and communication.
2. Structure
Flatter organisational structures are preferred by the company's learning and progressing units.
Fewer managers and more direct access to the top management and leadership make employees
feel more secure. It is easier for Unilever to make quick choices with a more compact structure,
increasing employee loyalty.
3. Systems
Successful business operations are guaranteed by well-defined systems put in place by Unilever.
Most of Unilever's systems are organised into departments.
4. Shared Values
Unilever's core principles are established and distributed to maximise employee motivation and
corporate involvement. Unilever's core values include the following: reliability, reputation,

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history, and trust. As a result, it guarantees that all corporate activities are conducted following
high ethical and moral standards that are specified and compared to global norms.
5. Style
A participative leader, Unilever is a household name. When it comes to management and
decision-making, Unilever employs a participative leadership approach. Constant contact with
employees and management groups helps identify potential disputes and advise strategic plans
and operational procedures. In addition, workers and other stakeholders may benefit from
Unilever's participative leadership style, which encourages a sense of ownership and dedication
to the company.
6. Staff
Unilever has a sufficient number of employees around the globe. Employees are hired both
within and outside the company depending on the urgency and skill levels required. Workers at
Unilever are skilled in their roles and responsibilities. Internal training is provided to all
employees to get familiar with the company and its mission. Skills may be honed via both
external and internal training. Employee skill levels are appropriate at Unilever since all job
functions and roles are organised to aid in the achievement of company goals.
7. Skills
The employees of Unilever are well-trained and competent. Therefore, there is no favouritism in
the hiring process. On the contrary, Unilever takes excellent pleasure in attracting and retaining
the brightest minds in their respective fields.
2.4 Findings of Internal and External Environment Competence of Unilever UK
Unilever is a unique business listed on two different stock exchanges, has offices in two of the
UK wealthiest cities, and offers a wide range of products. Although the economic environment is
challenging right now, this strategic audit found that the company is still performing well in sales
and growth. However, there are several external threats to this corporation's success, including
changes in customer attitudes, changes in the market, and substantial competitors. As a result,

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Unilever's top executives will have their work cut out for them to take their company to the next
level of global prominence in the consumer goods industry.
It is stated confidently that Unilever will come over the present gloomy competitor market
conditions. However, the study's last finding is not to underestimate the threat presented by UK
titans, who are well-versed in the area while also commanding the worldwide market.
The Impact and Influence of Change and Culture
Global consumer goods firm Unilever. With the activities and policies that have been
implemented throughout the years, this firm has grown significantly. Leadership, culture and
human resources all go hand in hand. A multi-national corporation, Unilever is. Any change in
one area has a ripple effect on other areas. As a whole, Unilever benefits from the attributes of
each of these components. Because the company's management is so good at changing its
culture, it has achieved great success. Unilever's company culture enhances productivity and
human resources.
In Unilever's corporate culture, performance and quality are emphasised. This corporate culture
has been evident throughout the company's long existence. A fledgling business has grown into a
global power under the leadership of the founders. In order to boost the company's productivity,
the corporate culture of Unilever may encourage high performance and quality in the work ethic
of employees. Because of intense competition, the company's consumer products remain
worldwide competitive. The company's goal statement emphasises product effectiveness, and its
emphasis on quality reflects that. Unilever has improved its internal business operations using
technology and innovation, including human resource development.
Unilever and Dr. John Kotter
Unilever has criteria in place to determine whether the company's management made the right
strategic decision in implementing Leverage. This document keeps track of all the advantages
offered to the customer and whether or not they are relevant to the business. The initiative was
deemed a success by both the employee and the distributor, although there was room for
improvement. They also emphasised the need of collecting and evaluate feedback from users,
including employees, throughout the rollout to ensure a positive learning experience.

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According to Dr John Kotter's 30 years of research, 70 per cent of large-scale transformations in
businesses fail. Weaknesses Due to the lack of a holistic strategy to change by organisations. It is
possible to prevent failure and become more successful at Change by following Dr Kotter's 8-
Step Process (Accenture, 2020). Unilever benefits both now and in the future from effective
change management. Unilever can only thrive if they can constantly change. Dr John Kotter
spent a decade researching and developing the 8-Step Process for Leading Change.
Influence of Culture on Management Decisions on Unilever and Handy’s Model
There are four types of corporate cultures, according to Charles Handy, that may be found in a
corporation. We will use the example of Unilever's culture as an example of the four types of
culture we have discussed before. For this reason, we will concentrate on the company's culture
to provide some advice for Unilever in dealing with the issue of gender balance.
As a company, Handy places a high value on the empowerment of its employees (NCSL
Modular Curriculum, 2019). Unilever's goal is to create a more gender-balanced workplace.
Unilever and any other company must provide equal opportunities for male and female
employees. Increasing the number of women in leadership and management positions is a critical
component of achieving gender parity in the workplace. Allowing female workers equal
opportunities for success and working closely together so that the combined effort of both
genders exceeds the sum of their efforts is critical. Since all workers are given equal rights,
duties and power regardless of their gender, Unilever should embrace the role culture.
Employing such strategies and creating a "role culture" may assist Unilever to achieve gender
parity in the workplace.
It is time for Unilever to embrace a new corporate culture that treats all employees the same and
eliminates any disparity in power or responsibility based on their gender. In order to accomplish
organisational objectives, employees must be managed inside a controlled organisational
framework. People and the company will benefit from adopting a shared culture, which improves
business operations and prospects.
The Effectiveness of Operational Functions and JIT Model

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JIT (Just-in-Time) manufacturing decreases inventory in the supply chain (Avery and Zabel,
2017). However, unanticipated occurrences, such as equipment failure, must be anticipated. In a
JIT environment, the client's needs must always be met. In most JIT manufacturing systems, a
tiny amount of additional capacity may be met by increasing the production rate or extending
operating hours. So, even if delivery is disrupted, the manufacturer may still meet its
responsibilities.
Optimal inventory management is the goal of this strategic decision area in operations
management. It is a concern of Unilever's to have good consumer goods on hand to respond to
changes in the market. When demand increases suddenly, the company's inventory can meet the
customers' needs. As a result, inventory requirements for Unilever must be calculated adequately
by operations managers. Operational productivity goals must be met with these funds.
Inventories at Unilever are managed using both the perpetual and periodic approaches. As a
result, JIT inventory management also helps companies achieve their operational goals for
inventories. Unilever uses JIT to cut down on inventory holding times and expenses.
Stakeholder Landscape of Unilever
Unilever's corporate social responsibility (CSR) has a positive effect on the company's consumer
product brands. Archie Carroll argues that corporations have social responsibilities. Stakeholders
influence company success simultaneously. Unilever's stakeholders include consumers,
employees, investors, suppliers, and communities. These stakeholders focus on the company's
corporate social responsibility and corporate citizenship initiatives. Consumer goods giant
Unilever utilises corporate social responsibility to strengthen its position in the market and
ensure its long-term viability.
Corporate social responsibility is a strong suit for Unilever. This outcome is very significant
since the Unilever Foundation made its global debut in 2021. An essential component in making
a significant impact with its CSR strategy is using global business partners, supply chains, and
distribution channels. Having a more significant presence in the market might also assist.
Consumers' understanding of social issues might be boosted thanks to Unilever's well-known
brand. Corporate citizenship activities and those of affiliated organisations should be made
known to the general public.

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Conclusion
Globalisation is directly responsible for Unilever UK's problems since firms from all over the
fight for the firm's attention. Unilever has dodged the Covid-19 epidemic because of solid brand
sales. It is essential to comprehend Unilever UK's internal environment. We must do more to
defend our brands. A sustainable society requires individuals to take personal responsibility for
their health and the environment.
Employees must be managed within a regulated framework to achieve organisational goals.
Adopting a common culture enhances business operations and prospects for people and the firm.
For example, Unilever employs JIT to reduce inventory holding costs. Archie Carroll says
businesses have social duties. Unilever's CSR benefits its consumer goods brands. Using global
business partners, supply chains, and distribution channels are critical to significantly affecting
CSR.

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2. Part 2 - Client Report
2.5 Strategic Planning
Competition, technical advancements, and organisational capacity influence business strategy
(core competencies, work culture, etc.). A corporation may differentiate itself via cost leadership,
product differentiation, and market differentiation as a business. By 2020, Unilever hoped to be
at the top of the global food sector. For this, they purchased Bestfoods, the second-largest cash
acquisition ever, Slim-Fast Food, Ben & Jerry's, and Amora-Maille in UK. Plant sterols like
Beccel/Flora proactive spreads, which reduced cholesterol, were also introduced. In addition, the
Unilever Health Institute was created to understand better the company's position in the food and
health sector. Knorr Vie is one of Unilever's attempts to get a foothold in the food sector.
Changes in corporate strategy were precipitous in 2020. Unilever PLC and NV both have the
same structure with a non-executive chairperson and group chief executive in charge of all
operations. To reduce the number of reporting levels and make management structure more
streamlined. To focus on the needs of customers and the market as a whole. US-based Coty Inc.
purchased Unilever's fragrance business, Unilever Cosmetics International (UCI). "The $800
million global luxury fragrance business of Unilever Cosmetics International was bought by
Coty" (UCI). A multinational cosmetics firm, Coty Inc. P. 5 of Covington 16000 products were
also tested for fat, salt and sugar content.

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Since today's clients are more worried about their health, Unilever is focused on food and health.
P&G and Nestle are also competing with them in the food industry. Brand loyalty and long-term
partnerships are also being built. To save money, the firm employs a strategy known as
simplicity. As a result, this might lead customers to conclude that the company is losing money
or that some of its products are inferior. As a result, recent investments by Unilever have gone
toward leadership development.
Recommendation
It is time for the company to branch out into other product lines, such as essential designer
products. However, to stand out from its competitors in the manufacturing industry, the company
must differentiate its products in more ways than only its packaging. Management should engage
the R&D department to help develop a company's strategic plan in light of the changing business
climate. Improve the company's efficiency by using TQM, Six Sigma, International Human
Resource Management, and Talent Management.
Conclusion
Unilever's long-standing brand image and customer base in multiple markets allow it to
withstand the challenges of the external environment. In addition, global hazards may be
mitigated by Unilever's involvement in several countries. Even though Unilever faces known and
unknown threats, there is still faith in its ability to overcome them. Future expansion is also
possible because of Unilever's commitment to continuous innovation and sustainable
development.
Slim-Fast Food, Ben & Jerry's, and Amora-Maille are just a few of the many British products
available in the United States. The cholesterol-lowering effects of Beccel/Flora proactive spreads
and other plant sterols were also noted. To save money, simple solutions are used. As a result,
clients can believe that the company is losing money or that particular products are low quality.

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