Strategic Management Report: Analysis of Unilever Company's Strategy
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This report presents a comprehensive analysis of Unilever's strategic management, examining its current strategic position, key performance indicators, and competitive landscape within the Fast Moving Consumer Goods (FMCG) industry. It explores Unilever's mission, vision, and the application of the balanced scorecard for performance monitoring. The report delves into the external environment using PESTEL analysis and a SWOT analysis to identify strengths, weaknesses, opportunities, and threats. Corporate governance, social responsibility, and ethical practices are also discussed, highlighting Unilever's commitment to sustainable living and ethical business conduct. The report applies Porter's Five Forces to assess Unilever's market position and competitive advantages. Furthermore, it examines the company's culture, organizational past, and the concept of strategic drift. The McKinsey 7S framework is utilized to analyze Unilever's capabilities, systems, structure, and staff. Finally, the report identifies key challenges, particularly consumer demand for variety and the need for agility in the supply chain. The analysis provides insights into Unilever's strategies and future direction in the dynamic FMCG market.

STRATEGIC MANAGEMENT
Strategic Management
Case of Unilever Company
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Strategic Management
Case of Unilever Company
Student name
Professor
Subject
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STRATEGIC MANAGEMENT 2
Question 1
A). Unilever Current Strategic Position
Introduction
Unilever is a multinational company that specializes in making of the best known brands
across the world. Some of the brands the company sells across every country includes Lux, Omo,
Lipton, Rexona, Magnum, Sunsilk, and Signal (Unilever, 2018). In overall, Unilever specializes
in manufacturing, marketing, and delivery of foods, beverages, personal care products, and
cleaning agents that all fall Fast Moving Consumer Goods (FMCG). The company has succeeded
in creating sustainable competitive advantage because of internal capabilities and competencies
from marketing and advertising, strong research and development, strong relationship with
communities where it serves, relationship with local farmers and suppliers of raw materials, as
well as international distribution network.
Key Performance Indicators
Unilever organizes its key performance indicators around; durable and effectiveness
quality products, production of environmentally friendly products, increasing wider accessibility
around the world, manufacturing healthy products (see figure 1 below), and achieving longevity
of all product brands.
Key competitors
Univeler operates in a competitive markets where other multinational companies
manufacture, market and distribute FCMG such as Coca cola, Procter & Gamble, Kinberly—
clerk, Colgage Palmolive, Herry Group, Kraft, and Nestle (Craft, 2018).
Unilever’s vision: “to double the size of business while reducing its footprint towards the
environment and ensuring an increased impact to society” (Unilever, 2018).
Question 1
A). Unilever Current Strategic Position
Introduction
Unilever is a multinational company that specializes in making of the best known brands
across the world. Some of the brands the company sells across every country includes Lux, Omo,
Lipton, Rexona, Magnum, Sunsilk, and Signal (Unilever, 2018). In overall, Unilever specializes
in manufacturing, marketing, and delivery of foods, beverages, personal care products, and
cleaning agents that all fall Fast Moving Consumer Goods (FMCG). The company has succeeded
in creating sustainable competitive advantage because of internal capabilities and competencies
from marketing and advertising, strong research and development, strong relationship with
communities where it serves, relationship with local farmers and suppliers of raw materials, as
well as international distribution network.
Key Performance Indicators
Unilever organizes its key performance indicators around; durable and effectiveness
quality products, production of environmentally friendly products, increasing wider accessibility
around the world, manufacturing healthy products (see figure 1 below), and achieving longevity
of all product brands.
Key competitors
Univeler operates in a competitive markets where other multinational companies
manufacture, market and distribute FCMG such as Coca cola, Procter & Gamble, Kinberly—
clerk, Colgage Palmolive, Herry Group, Kraft, and Nestle (Craft, 2018).
Unilever’s vision: “to double the size of business while reducing its footprint towards the
environment and ensuring an increased impact to society” (Unilever, 2018).

STRATEGIC MANAGEMENT 3
Unilever mission: “to meet the everyday needs of people of people all around the world
for nutrition, hygiene and personal care. We do this with products that make people feel good,
look good and get more out of life” (Unilever, 2018).
Figure 1: Unilever brands
Source: (Unilever, 2018)
Summary Of Unilever Mission And Performance
The company current mission involves meeting everyday needs of people across the
world through delivery of nutrition, hygiene, and personal care products. The company does this
by ensuring that it continues to deliver products that mske people feel good, look good, and get
more out of life. The company balanced scorecard offers a strategic planning and management
system that helps to align Unilever activities to its vision and overall strategy. According to
Singh and Sethi (2017), a company can do this when it monitors its performance against strategic
Unilever mission: “to meet the everyday needs of people of people all around the world
for nutrition, hygiene and personal care. We do this with products that make people feel good,
look good and get more out of life” (Unilever, 2018).
Figure 1: Unilever brands
Source: (Unilever, 2018)
Summary Of Unilever Mission And Performance
The company current mission involves meeting everyday needs of people across the
world through delivery of nutrition, hygiene, and personal care products. The company does this
by ensuring that it continues to deliver products that mske people feel good, look good, and get
more out of life. The company balanced scorecard offers a strategic planning and management
system that helps to align Unilever activities to its vision and overall strategy. According to
Singh and Sethi (2017), a company can do this when it monitors its performance against strategic

STRATEGIC MANAGEMENT 4
goals. As indicated in figure 2 below, the balanced scorecard of Unilever financial perspectives
shows the revenue growth, cost reduction, and asset utilization. Currently, the company
continues to performs well in returns on invested capital.
Figure 2: return on invested capital of Unilever vs. its peers
According to figure 3 below, it is clear that Unilever has succeeded in efficiency
allocation of capital to achieve profitable investment from 2015 to 2017. Similalry, the company
returns on equity (ROI) remains higher at 40.38%.
Figure 3: Profitabilty ratios
goals. As indicated in figure 2 below, the balanced scorecard of Unilever financial perspectives
shows the revenue growth, cost reduction, and asset utilization. Currently, the company
continues to performs well in returns on invested capital.
Figure 2: return on invested capital of Unilever vs. its peers
According to figure 3 below, it is clear that Unilever has succeeded in efficiency
allocation of capital to achieve profitable investment from 2015 to 2017. Similalry, the company
returns on equity (ROI) remains higher at 40.38%.
Figure 3: Profitabilty ratios
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STRATEGIC MANAGEMENT 5
Source: (Pendrous, 2017).
Summary Of External Environment
PESTEL Analysis
Unilever headquarters is situated in London in a British political system. The United
Kingdom is a member of European Union, which enables trade among member states by
harmonization of specific rules relating to business and removal of trade barriers. Household
consumption has gone down drastically all of Europe due to the recession. Unemployment and
stagnation of wages is a significant issue in economies where Unilever Company supplies
consumers. The drop in salaries brings about a decline in consumer demand for Unilever
products. In the UK there, has there been a high level of life expectancy. There is a significant
ramification of the business like Unilever. It might change the structure of demand since the
older people have special needs that Unilever will meet. Today individuals rely so much on the
social media, mobile and retailing websites to get information.
Table 1: SWOT Analysis
Strengths
Strong brand portfolio
Strong innovation and launch of new
products
Strong strategic acquisition
Weakness
Product recalls
Revocation of product-line licenses
Opportunity Threats
Source: (Pendrous, 2017).
Summary Of External Environment
PESTEL Analysis
Unilever headquarters is situated in London in a British political system. The United
Kingdom is a member of European Union, which enables trade among member states by
harmonization of specific rules relating to business and removal of trade barriers. Household
consumption has gone down drastically all of Europe due to the recession. Unemployment and
stagnation of wages is a significant issue in economies where Unilever Company supplies
consumers. The drop in salaries brings about a decline in consumer demand for Unilever
products. In the UK there, has there been a high level of life expectancy. There is a significant
ramification of the business like Unilever. It might change the structure of demand since the
older people have special needs that Unilever will meet. Today individuals rely so much on the
social media, mobile and retailing websites to get information.
Table 1: SWOT Analysis
Strengths
Strong brand portfolio
Strong innovation and launch of new
products
Strong strategic acquisition
Weakness
Product recalls
Revocation of product-line licenses
Opportunity Threats

STRATEGIC MANAGEMENT 6
Growth in emerging economies
Increased opportunitis in consumption
of health and wellness space
Growth in home and personal care
Ever increasing labor wages
Risk from fluctuation in foreign
currencies
Growth in counterfeit goods
Corporate Governance
Unilever acknowledges the significance of adopting good corporate governance and
behaviour. The company has succeeded in designing the code of business principles as the
standard guiding rules for employees working in all departments (Kalsoom, 2013). Unilever is
guided by six tenets of corporate governance (legal and regulatory framework, organizational
hierarchy, monitoring and internal controls, transparency & accountability, policies &
procedures, and the board of directors and committees). Management ensures that all employees
do the right thing that applies to legislation. All the principles are as extension to its values as
well as a reflection of its commitment to regulatory compliance and ethical practices (Unilever,
2018). Employees working in different departments believe that they need high levels of
standards and behaviour to work with everyone in the community. Unilever is committed to
communicate its performance in a regular manner and in a transparent manner. The company has
continued to report on its sustainability performance since 1996 (Unilever, 2018. Besides,
Unilever conducts its operations according to internationally accepted principles of good
governance and best practices.
Social Responsibility & Ethics
Unilever applies Sustainable Living Plan to set out decouple growth from the
environmental footprint while ensuring that it achieves positive impact in a society. The plan
Growth in emerging economies
Increased opportunitis in consumption
of health and wellness space
Growth in home and personal care
Ever increasing labor wages
Risk from fluctuation in foreign
currencies
Growth in counterfeit goods
Corporate Governance
Unilever acknowledges the significance of adopting good corporate governance and
behaviour. The company has succeeded in designing the code of business principles as the
standard guiding rules for employees working in all departments (Kalsoom, 2013). Unilever is
guided by six tenets of corporate governance (legal and regulatory framework, organizational
hierarchy, monitoring and internal controls, transparency & accountability, policies &
procedures, and the board of directors and committees). Management ensures that all employees
do the right thing that applies to legislation. All the principles are as extension to its values as
well as a reflection of its commitment to regulatory compliance and ethical practices (Unilever,
2018). Employees working in different departments believe that they need high levels of
standards and behaviour to work with everyone in the community. Unilever is committed to
communicate its performance in a regular manner and in a transparent manner. The company has
continued to report on its sustainability performance since 1996 (Unilever, 2018. Besides,
Unilever conducts its operations according to internationally accepted principles of good
governance and best practices.
Social Responsibility & Ethics
Unilever applies Sustainable Living Plan to set out decouple growth from the
environmental footprint while ensuring that it achieves positive impact in a society. The plan

STRATEGIC MANAGEMENT 7
outlines three goals to achieve: social, environment, and economic performance across its value
chain. The company uses ethical principle of working with others to focus on major areas that
management use to create biggest impact and support sustainable development goals established
in United Nation goals. For instance, the three goals of social responsibility includes improving
health and well-being of over 1 billion people, reducing environmental impact, and enhancing
the livelihoods of millions (as indicated in the figure below).
Figure 4: Sustainable Living Practices At Unilever.
(Source: https://www.unilever.com/sustainable-living/)
How your company is placed in its market, (use your Porter’s five Forces)
outlines three goals to achieve: social, environment, and economic performance across its value
chain. The company uses ethical principle of working with others to focus on major areas that
management use to create biggest impact and support sustainable development goals established
in United Nation goals. For instance, the three goals of social responsibility includes improving
health and well-being of over 1 billion people, reducing environmental impact, and enhancing
the livelihoods of millions (as indicated in the figure below).
Figure 4: Sustainable Living Practices At Unilever.
(Source: https://www.unilever.com/sustainable-living/)
How your company is placed in its market, (use your Porter’s five Forces)
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STRATEGIC MANAGEMENT 8
Strategic management plays an important role in driving the objectives of the
organization. Unilever Company is a well-known organization in Europe, which deals with
various consumer products, detergents, and foodstuff (Winston, 2014.)
In deaing with horizontal strategic management policies, Unilever has an advantage over
its competitors because of its flexible pricing policy and a well-organized distribution channel.
The strategy has proved critical for the business because it has edged out Proctor and Gamble in
the industry. Unilever has also gained a competitive advantage over new entrants in the company
by leveraging its economies of scale, which arise from its operations. Thus, its strategies have
worked well with its potential customer across the globe (Thompson, 2005.). Moreover, its
distinct nature of their products provides a unique flavor from its customers who prefer to come
for their products each time they need them. (Goffin, 2005).
On the vertical threats from the competitors, Unilever provides a flexible pricing strategy,
which allows its customers to bargain with their customers and arrive at a fair price without
making losses. Similarly, the company has friendly suppliers who subsidize products, and their
prices are flexible for the business. The company works by combining local execution and global
thinking hence winning the trust of many customers across the world.
Culture And Its Organisational Past
Unilever corporate culture revolves around principles, shared values, and traditions.
Management designs all these to influence employees. Currently, the head office acknowledges
the need to develop common cultures across all units in different countries. For instance, the
company establishes formal training programs to “Unileverize” all managers (Maljers, 2018).
Unilever’s past shows how the company has come to manage different business units to start
Strategic management plays an important role in driving the objectives of the
organization. Unilever Company is a well-known organization in Europe, which deals with
various consumer products, detergents, and foodstuff (Winston, 2014.)
In deaing with horizontal strategic management policies, Unilever has an advantage over
its competitors because of its flexible pricing policy and a well-organized distribution channel.
The strategy has proved critical for the business because it has edged out Proctor and Gamble in
the industry. Unilever has also gained a competitive advantage over new entrants in the company
by leveraging its economies of scale, which arise from its operations. Thus, its strategies have
worked well with its potential customer across the globe (Thompson, 2005.). Moreover, its
distinct nature of their products provides a unique flavor from its customers who prefer to come
for their products each time they need them. (Goffin, 2005).
On the vertical threats from the competitors, Unilever provides a flexible pricing strategy,
which allows its customers to bargain with their customers and arrive at a fair price without
making losses. Similarly, the company has friendly suppliers who subsidize products, and their
prices are flexible for the business. The company works by combining local execution and global
thinking hence winning the trust of many customers across the world.
Culture And Its Organisational Past
Unilever corporate culture revolves around principles, shared values, and traditions.
Management designs all these to influence employees. Currently, the head office acknowledges
the need to develop common cultures across all units in different countries. For instance, the
company establishes formal training programs to “Unileverize” all managers (Maljers, 2018).
Unilever’s past shows how the company has come to manage different business units to start

STRATEGIC MANAGEMENT 9
sharing common culture. Over a period of time for instance, the company has succeeded in
weathering numerous changes. Over a period of three decades, the foods business has undergone
two important reorganizations. Such a past reorganization shows how the company focuses on
culture of flexibility and formality. Most importantly, the culture of innovation and risk taking
encourages employees remain innovative and take risks of adopting new products that add value
to customers. The company has transformed itself from selling margarine to a global fast food
company that now specializes in production of three categories of brands; food & drink, home
case, and personal care. Besides, management has achieved all these by making decisions that
take into account the effects on people in the organization.
Strategic Drift
This refers to the tendency for which strategies designed by the company to start
developing incrementally because of influence from historical as well as cultural impacts but
fails to keep pace with an every changing market competitions (Johnson, Scholes and
Whittington, 2008). Unilever has ensured that it remains the market leader in FCMG by
designing and implementing its strategies. The company utilizes its strategies to achieve
improvement in health and targets to achieve this 2020. The company seeks to continue helping
more that 1 billion people to take action in the best way that they could improve their well-being
as well as health status. The company has also established strategies that helps the company
compete by reducing the impact by 2020. It now seeks to half the environmental footprint and
use the products as it grows. The company future strategy also involve enhancing the livelihood
of hundreds of thousands of people as it grows the business.
sharing common culture. Over a period of time for instance, the company has succeeded in
weathering numerous changes. Over a period of three decades, the foods business has undergone
two important reorganizations. Such a past reorganization shows how the company focuses on
culture of flexibility and formality. Most importantly, the culture of innovation and risk taking
encourages employees remain innovative and take risks of adopting new products that add value
to customers. The company has transformed itself from selling margarine to a global fast food
company that now specializes in production of three categories of brands; food & drink, home
case, and personal care. Besides, management has achieved all these by making decisions that
take into account the effects on people in the organization.
Strategic Drift
This refers to the tendency for which strategies designed by the company to start
developing incrementally because of influence from historical as well as cultural impacts but
fails to keep pace with an every changing market competitions (Johnson, Scholes and
Whittington, 2008). Unilever has ensured that it remains the market leader in FCMG by
designing and implementing its strategies. The company utilizes its strategies to achieve
improvement in health and targets to achieve this 2020. The company seeks to continue helping
more that 1 billion people to take action in the best way that they could improve their well-being
as well as health status. The company has also established strategies that helps the company
compete by reducing the impact by 2020. It now seeks to half the environmental footprint and
use the products as it grows. The company future strategy also involve enhancing the livelihood
of hundreds of thousands of people as it grows the business.

STRATEGIC MANAGEMENT 10
Unilever Capability (McKinsey 7S Framework)
Unilever systems covers the use of a workday as the leading provider of enterprise cloud
applications to support its finance and human resource. The company can now manage its
finances, human resources, human capital, and other assoiated activities designed to achieve
competitive advantage. Furthermore,the Workday HCM allows Unilever to standardize all its
processes globally. It now operaes through a streamlined operations while at the sane time,
ensuring that there are reduced complexities to achieve a high level of productivity and
efficiency. Unilever uses structures of a four-tier hierarchical structure. This helps the company
in funneling all the information through the business and senior teams to come up with decisions
from from the available information.
Unilever's scientists are developing the next generation oral care, Household care
products, and Deodorants. In addition, there is significant microbiology facility, Unilever Global
Fragrance Centre with a unique kind of expertise as well as the pilot plant that allows the
company to manufacture prototype shampoos, laundry liquids, and deodorants, tubes of
toothpaste and fabric conditioners. Unilever Company has excellent scientific strength
furthermore expertise in substrate, processing, materials, and formulation of products. The
company is pioneering high throughput experimentation.
The company has staff that range from neuroscientists, physical chemists, sociologists,
biologists, sociologists and chemical engineers. The Unilever company groups of the scientist in
the UK work hand in hand on a daily basis with external partners through company's innovation
program. The company's local strategic partners include; the University of Liverpool, Daresbury
Laboratory, and Manchester University. Consumer connection is an essential aspect of Unilever
Unilever Capability (McKinsey 7S Framework)
Unilever systems covers the use of a workday as the leading provider of enterprise cloud
applications to support its finance and human resource. The company can now manage its
finances, human resources, human capital, and other assoiated activities designed to achieve
competitive advantage. Furthermore,the Workday HCM allows Unilever to standardize all its
processes globally. It now operaes through a streamlined operations while at the sane time,
ensuring that there are reduced complexities to achieve a high level of productivity and
efficiency. Unilever uses structures of a four-tier hierarchical structure. This helps the company
in funneling all the information through the business and senior teams to come up with decisions
from from the available information.
Unilever's scientists are developing the next generation oral care, Household care
products, and Deodorants. In addition, there is significant microbiology facility, Unilever Global
Fragrance Centre with a unique kind of expertise as well as the pilot plant that allows the
company to manufacture prototype shampoos, laundry liquids, and deodorants, tubes of
toothpaste and fabric conditioners. Unilever Company has excellent scientific strength
furthermore expertise in substrate, processing, materials, and formulation of products. The
company is pioneering high throughput experimentation.
The company has staff that range from neuroscientists, physical chemists, sociologists,
biologists, sociologists and chemical engineers. The Unilever company groups of the scientist in
the UK work hand in hand on a daily basis with external partners through company's innovation
program. The company's local strategic partners include; the University of Liverpool, Daresbury
Laboratory, and Manchester University. Consumer connection is an essential aspect of Unilever
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STRATEGIC MANAGEMENT 11
Company. The company's consumer understanding helps it deliver quality products and satisfy
them in return.
Figure 5: Unilever McKinsey 7S Framework
b) Key challenges
a. Consumer Demand for Variety
Unilever consumers are now more demanding than ever. There is an increased urgency to
produce new products when inclinations change which subsequently implies an expanding
shorter product lifecycles. This results to complexity in product improvement, sourcing,
satisfaction, production and higher transportation expenses to take care of demand (Dhawan,
2010). This likewise adds to the pressure for the company to better oversee stock. Moreover, the
company is expected to meet the needs of consumers globally which increases complexities in
producing variety for all the customers.
Company. The company's consumer understanding helps it deliver quality products and satisfy
them in return.
Figure 5: Unilever McKinsey 7S Framework
b) Key challenges
a. Consumer Demand for Variety
Unilever consumers are now more demanding than ever. There is an increased urgency to
produce new products when inclinations change which subsequently implies an expanding
shorter product lifecycles. This results to complexity in product improvement, sourcing,
satisfaction, production and higher transportation expenses to take care of demand (Dhawan,
2010). This likewise adds to the pressure for the company to better oversee stock. Moreover, the
company is expected to meet the needs of consumers globally which increases complexities in
producing variety for all the customers.

STRATEGIC MANAGEMENT 12
There is also increased pressure to create agility in the supply chain. The supply chain
ought to respond to any adjustments in consumer inclinations so that the vital changes can be
organized across the end-to-end supply chain (Singh and Sethi, 2017). Consumer demand is also
fragile due to the increased competition from other companies mentioned above such as Nestle,
Kraft, P&G, Mars, and Coca-Cola that operate in the fast moving consumer goods industry
(FMCG). Volume development has also slowed further in the business sectors in which the
company operates, with weak market growth in emerging markets, which is evident in North
America and Europe. Consumers keep on seeking out bargains before purchasing goods and
Unilever shares have fell as well (Sanna, Quatrebarbes and Probert, 2015).
b. Sustainability
Unilever has made a strategic move towards sustainability. The move presents Unilever
with a key challenge given that Unilever’s biggest opportunities in sustainability are in the
extension in emerging and developing markets and the development of socially cognizant
consumers. Developing nations confront a plenty of issues including major environmental
change issues, poverty, and mal-nutrition, which may appear to be overwhelming for the
organization to respond to. This will require the company to use most of its resources in the
sustainability of the developing nations (Dhawan, 2010). The company is also expected to create
products that meet the utilitarian needs of the developing nations while factoring in the social
and environmental issues, which is additionally complex.
Unilever's sense of duty regarding sustainability also displays a major challenge in
maintaining the sustainability from the sourcing of their raw materials, to production, and the
distribution , to the customer use and disposing of items (Lingard, 2013). Unilever's biggest
sustainability challenges originate from the places it has minimum controls over, in the sourcing
There is also increased pressure to create agility in the supply chain. The supply chain
ought to respond to any adjustments in consumer inclinations so that the vital changes can be
organized across the end-to-end supply chain (Singh and Sethi, 2017). Consumer demand is also
fragile due to the increased competition from other companies mentioned above such as Nestle,
Kraft, P&G, Mars, and Coca-Cola that operate in the fast moving consumer goods industry
(FMCG). Volume development has also slowed further in the business sectors in which the
company operates, with weak market growth in emerging markets, which is evident in North
America and Europe. Consumers keep on seeking out bargains before purchasing goods and
Unilever shares have fell as well (Sanna, Quatrebarbes and Probert, 2015).
b. Sustainability
Unilever has made a strategic move towards sustainability. The move presents Unilever
with a key challenge given that Unilever’s biggest opportunities in sustainability are in the
extension in emerging and developing markets and the development of socially cognizant
consumers. Developing nations confront a plenty of issues including major environmental
change issues, poverty, and mal-nutrition, which may appear to be overwhelming for the
organization to respond to. This will require the company to use most of its resources in the
sustainability of the developing nations (Dhawan, 2010). The company is also expected to create
products that meet the utilitarian needs of the developing nations while factoring in the social
and environmental issues, which is additionally complex.
Unilever's sense of duty regarding sustainability also displays a major challenge in
maintaining the sustainability from the sourcing of their raw materials, to production, and the
distribution , to the customer use and disposing of items (Lingard, 2013). Unilever's biggest
sustainability challenges originate from the places it has minimum controls over, in the sourcing

STRATEGIC MANAGEMENT 13
of raw materials and disposal of items by consumers (Dhawan, 2010). Unilever must choose
where and how to begin the prioritization procedure, while guaranteeing alignment with a large
number of suppliers.
c. Digital Supply Chain Transformation
Today, individuals anticipate that brands will have a considerably more extensive
comprehension of the effect business can have on the world. Organizations can make positive
change, both through doing 'less bad' and by doing 'more great'. The Unilever declaration
appears, however, that as far as what may be examined, the activity of the custodians of
organizations' motivation, or moral guide is becoming complex (Dhawan, 2010). Customers
judge brands on basis of ethical conduct and integrity. For a brand, for example, Unilever, whose
desire and more extensive reason for existing is to improve the world, it is more complex to
guarantee and manage the ethical high ground.
Following the advancement in front end marketing, interests in internet business and the
client encounter, it is no big surprise that digital change has ascended to the highest point in
Unilever.The company is however facing issues in keeping up with transformations that occur
interchangeably in different nations. The infrastructure of supply chain is further making it hard
for the company to manage the transformation. This is affecting the company sales given that in
the present globalized world, an organization’s prosperity is no longer subject to its own
endeavors alone but depends to a great extent on how viably it can coordinate an immense,
worldwide, supply chain network accomplices to deliver merchandise and services that address
the issues of individual buyers.
of raw materials and disposal of items by consumers (Dhawan, 2010). Unilever must choose
where and how to begin the prioritization procedure, while guaranteeing alignment with a large
number of suppliers.
c. Digital Supply Chain Transformation
Today, individuals anticipate that brands will have a considerably more extensive
comprehension of the effect business can have on the world. Organizations can make positive
change, both through doing 'less bad' and by doing 'more great'. The Unilever declaration
appears, however, that as far as what may be examined, the activity of the custodians of
organizations' motivation, or moral guide is becoming complex (Dhawan, 2010). Customers
judge brands on basis of ethical conduct and integrity. For a brand, for example, Unilever, whose
desire and more extensive reason for existing is to improve the world, it is more complex to
guarantee and manage the ethical high ground.
Following the advancement in front end marketing, interests in internet business and the
client encounter, it is no big surprise that digital change has ascended to the highest point in
Unilever.The company is however facing issues in keeping up with transformations that occur
interchangeably in different nations. The infrastructure of supply chain is further making it hard
for the company to manage the transformation. This is affecting the company sales given that in
the present globalized world, an organization’s prosperity is no longer subject to its own
endeavors alone but depends to a great extent on how viably it can coordinate an immense,
worldwide, supply chain network accomplices to deliver merchandise and services that address
the issues of individual buyers.
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STRATEGIC MANAGEMENT 14
Conclusion
The above analysis places Unilever at a better position to pursue its strategies. The
compny has succeeded in designing strategies to achieve its objectives.
Question 2: Identification And Evaluation Of Options For ONE Challenge
As discussed in the above section under challenges, Unilever experiences major
challenges of maintaining sustainability across all its operations. This owns to the fact that
currently, the company operates in almost every country across the world with more than 400
brands (Unilever, 2018). The company continues to experience the challenge of ensuring that it
produces high quality FMCG while at the same time, keeping with the depends of every country
to achieve sustainability policies.
Confino (2018), the correspondence with the Guardian magazine, a blog that specializes
in pointing out issues on sustainability, brings into light some of the sustainability issues that
continue to face Unilever. He points out that while consumer multinational strives to make some
process through its operations, management has come out calling for cooperation across all the
societies. It is through this that the company acknowledges, it could achieve transformational
change. In one of the recently published report – the second annual sustainability progress report,
the company points out that changing consumer behaviors through marketing remain one of the
uphill struggle that the company continues to grapple with every day. Besides, the company is
also finding some of the effective ways to encourage consumers towards taking sustainability
more seriously. For instance, despite the evident of environmental advantages, Uniliver explains
that many of the consumers are still shy from buying refillable pouches for its products.
Furthermore, the company also continues to have trouble of convincing consumers to start
Conclusion
The above analysis places Unilever at a better position to pursue its strategies. The
compny has succeeded in designing strategies to achieve its objectives.
Question 2: Identification And Evaluation Of Options For ONE Challenge
As discussed in the above section under challenges, Unilever experiences major
challenges of maintaining sustainability across all its operations. This owns to the fact that
currently, the company operates in almost every country across the world with more than 400
brands (Unilever, 2018). The company continues to experience the challenge of ensuring that it
produces high quality FMCG while at the same time, keeping with the depends of every country
to achieve sustainability policies.
Confino (2018), the correspondence with the Guardian magazine, a blog that specializes
in pointing out issues on sustainability, brings into light some of the sustainability issues that
continue to face Unilever. He points out that while consumer multinational strives to make some
process through its operations, management has come out calling for cooperation across all the
societies. It is through this that the company acknowledges, it could achieve transformational
change. In one of the recently published report – the second annual sustainability progress report,
the company points out that changing consumer behaviors through marketing remain one of the
uphill struggle that the company continues to grapple with every day. Besides, the company is
also finding some of the effective ways to encourage consumers towards taking sustainability
more seriously. For instance, despite the evident of environmental advantages, Uniliver explains
that many of the consumers are still shy from buying refillable pouches for its products.
Furthermore, the company also continues to have trouble of convincing consumers to start

STRATEGIC MANAGEMENT 15
accepting lower salt used in its food products. According to the correspondence, is that a
majority of the people are more hooked into the taste and any slight mistake of reducing the
content of the taste, consumers end up adding salt.
Baker (2017) notes in the Marketing Week that coupled with the issue of sustainability,
sustainability marketing remains one of the biggest challenge that the company management has
failed to tackle. Most importantly, the company finds it hard to persuade its customers to start
changing their sustainability behaviors. According to the company chief marketing officer, Keith
Weed, Unilever has failed to make the needed progress in this area as expected during the first
year of its strategy. The company introduced the Sustainable Living Plan in 2017 integrate
sustainability into all operation areas. However, Weed points out that even though sustainable
marketing remain at the forefront of the company’s marketing sustainability, some of the
products such as Persil’s Small & Mighty products focusing on environmental benefits have
failed to attract the needed appeal from customers. Furthermore, companies have ended up
taking long to adopt some of its new products such as the newly developed Comfort One Rinse
laundry detergent.
This section reminds that Unilever adopts the use a sustainable marketing strategies as
the best strategic option. Pramudita (2016) explains in his paper that marketing strategy for any
company should be a reflection of the company strategy, its mission, values, and objectives.
Currently, the markets where Unilever operates tend to influence the company as well as other
integrations that come up between Unilever and major stakeholder. As we have summarized in
the rest of the report, the company microenvironment covers other competitors, customers,
intermediaries, and suppliers. Furthermore, the company is always in interaction with financial
institutions and investor’s m government, media, and above all, the communities where it
accepting lower salt used in its food products. According to the correspondence, is that a
majority of the people are more hooked into the taste and any slight mistake of reducing the
content of the taste, consumers end up adding salt.
Baker (2017) notes in the Marketing Week that coupled with the issue of sustainability,
sustainability marketing remains one of the biggest challenge that the company management has
failed to tackle. Most importantly, the company finds it hard to persuade its customers to start
changing their sustainability behaviors. According to the company chief marketing officer, Keith
Weed, Unilever has failed to make the needed progress in this area as expected during the first
year of its strategy. The company introduced the Sustainable Living Plan in 2017 integrate
sustainability into all operation areas. However, Weed points out that even though sustainable
marketing remain at the forefront of the company’s marketing sustainability, some of the
products such as Persil’s Small & Mighty products focusing on environmental benefits have
failed to attract the needed appeal from customers. Furthermore, companies have ended up
taking long to adopt some of its new products such as the newly developed Comfort One Rinse
laundry detergent.
This section reminds that Unilever adopts the use a sustainable marketing strategies as
the best strategic option. Pramudita (2016) explains in his paper that marketing strategy for any
company should be a reflection of the company strategy, its mission, values, and objectives.
Currently, the markets where Unilever operates tend to influence the company as well as other
integrations that come up between Unilever and major stakeholder. As we have summarized in
the rest of the report, the company microenvironment covers other competitors, customers,
intermediaries, and suppliers. Furthermore, the company is always in interaction with financial
institutions and investor’s m government, media, and above all, the communities where it

STRATEGIC MANAGEMENT 16
operates to deliver manufactured products. Jeppesen, et al. (2017) reiterate that customers of a
company whether they act as individual households, service providers, retailers, or other
businesses, they determine the strategic approach that a company adopts towards sustainable
marketing. Potential customers of Unilever that are spread across different markets that expect
the company to continue manufacturing and delivering sustainable products to them.
The company should pursue its sustainability marketing strategy through strategic
acquisition of specific companies specializing in marketing strategies. Hrebiniak and Joyce
(2011) refer to acquisition as the process where a company takes ownership of another company.
Therefore, acquisition involves the management of one-company uses their strategic influence
towards another company. Besides, there are different motives that would make Unilever
company to acquire to other companies. Ungerer, Ungerer and Herholdt (2016) categorises such
motives into the speed of entry, the competitive situation, opportunities to consolidate, financial
market, exploit strategic capabilities, achieve cost efficiency, and the need to obtain new
capabilities.
The suitability of above selected strategic option to increase sustainable marketing
strategy depends on its capability to address a number of issues such as low purchases among
customers. Hence, the strategic option to gain acceptance from customers will maintain a high
level of market share. The needed capability involves building strengths through continued
investment and innovation in sustainable practices (Sato, 2017). While on the other hand,
stakeholders will also benefit in the manner in which customers will see the reason to stick with
the company products.
The advantage of a strategy will depend on what Anderson (2000) explains as speed of
supply and increase performance ratio. The company will gain the capability to acquire
operates to deliver manufactured products. Jeppesen, et al. (2017) reiterate that customers of a
company whether they act as individual households, service providers, retailers, or other
businesses, they determine the strategic approach that a company adopts towards sustainable
marketing. Potential customers of Unilever that are spread across different markets that expect
the company to continue manufacturing and delivering sustainable products to them.
The company should pursue its sustainability marketing strategy through strategic
acquisition of specific companies specializing in marketing strategies. Hrebiniak and Joyce
(2011) refer to acquisition as the process where a company takes ownership of another company.
Therefore, acquisition involves the management of one-company uses their strategic influence
towards another company. Besides, there are different motives that would make Unilever
company to acquire to other companies. Ungerer, Ungerer and Herholdt (2016) categorises such
motives into the speed of entry, the competitive situation, opportunities to consolidate, financial
market, exploit strategic capabilities, achieve cost efficiency, and the need to obtain new
capabilities.
The suitability of above selected strategic option to increase sustainable marketing
strategy depends on its capability to address a number of issues such as low purchases among
customers. Hence, the strategic option to gain acceptance from customers will maintain a high
level of market share. The needed capability involves building strengths through continued
investment and innovation in sustainable practices (Sato, 2017). While on the other hand,
stakeholders will also benefit in the manner in which customers will see the reason to stick with
the company products.
The advantage of a strategy will depend on what Anderson (2000) explains as speed of
supply and increase performance ratio. The company will gain the capability to acquire
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STRATEGIC MANAGEMENT 17
competences (Roger, 2016). Currently, Uniliver has several stakeholders that are likely to benefit
from increased returns. This will be in terms of growth or share value.
The strategic option of conducting sustainable marketing through product positioning,
timing, and segmentation is also acceptable. The newly acquired company will play central role
when marketing. Customers of Unilever are always price conscious in demanding low priced
products that have high value. Furthermore, they also value high quality products and premium
brands. The acquired company will segment the market into different sub-segments and niches.
For instance, the quality segment in FMCG provided by the company will give the company a
greenlight to supply convenient goods, organic and fair food products. In explaining how market
polarization assists in achieving sustainable products, Stalk and Iyer (2017) indicate that
positioning must depend on several factors such as rand assortment, competitive offers, and
consumer preferences.
The above strategic choice is also acceptable because of the expected performance
outcomes in terms of increased sales volume and consequently, financial returns. As indicate in
the figure below, it is apparent that the use of acquisition will ensure that Unilever reports high
returns to dividends as well as normalized earnings. Consequently, the strategy will increase
overall revenue.
competences (Roger, 2016). Currently, Uniliver has several stakeholders that are likely to benefit
from increased returns. This will be in terms of growth or share value.
The strategic option of conducting sustainable marketing through product positioning,
timing, and segmentation is also acceptable. The newly acquired company will play central role
when marketing. Customers of Unilever are always price conscious in demanding low priced
products that have high value. Furthermore, they also value high quality products and premium
brands. The acquired company will segment the market into different sub-segments and niches.
For instance, the quality segment in FMCG provided by the company will give the company a
greenlight to supply convenient goods, organic and fair food products. In explaining how market
polarization assists in achieving sustainable products, Stalk and Iyer (2017) indicate that
positioning must depend on several factors such as rand assortment, competitive offers, and
consumer preferences.
The above strategic choice is also acceptable because of the expected performance
outcomes in terms of increased sales volume and consequently, financial returns. As indicate in
the figure below, it is apparent that the use of acquisition will ensure that Unilever reports high
returns to dividends as well as normalized earnings. Consequently, the strategy will increase
overall revenue.

STRATEGIC MANAGEMENT 18
Figure 6: Returns
The above types of returns are the benefits that stakeholders will expect to receive out of
the company. However, apart from the above financial returns, the company will also benefit
from non-financial returns that will continue to accrue from sustainability marketing.
Unilever has made a strategic move towards sustainability. The move presents Unilever with a
key challenge given that Unilever’s biggest opportunities in sustainability are in the extension in
emerging and developing markets and the development of socially cognizant consumers.
Doyle (2010) explains three approaches for measuring traditional financial analysis
includes forecasting of returns on capital employed (ROCE), payback period, and discounted
cash flow. The company has continued to record an increasing return on invested capital starting
from 2008 to 2017. The positive increase in ROCE is a clear indication that the company will
continue having a stronger earning power from the resources that management uses to implement
strategic options.
Figure 6: Returns
The above types of returns are the benefits that stakeholders will expect to receive out of
the company. However, apart from the above financial returns, the company will also benefit
from non-financial returns that will continue to accrue from sustainability marketing.
Unilever has made a strategic move towards sustainability. The move presents Unilever with a
key challenge given that Unilever’s biggest opportunities in sustainability are in the extension in
emerging and developing markets and the development of socially cognizant consumers.
Doyle (2010) explains three approaches for measuring traditional financial analysis
includes forecasting of returns on capital employed (ROCE), payback period, and discounted
cash flow. The company has continued to record an increasing return on invested capital starting
from 2008 to 2017. The positive increase in ROCE is a clear indication that the company will
continue having a stronger earning power from the resources that management uses to implement
strategic options.

STRATEGIC MANAGEMENT 19
Risk is also another imperative measure that determines the acceptability of a strategy to
pursue suatainability marketing through segmentation. The strategic will involve selecting the
right segments as well as the target groups. The newly acquired company will segment the
market into socio-econoligally passives, the socio-ecologically activated, and the socio-
ecologically actives.
Figure 7: financial returns
Developing nations confront a plenty of issues including major environmental change
issues, poverty, and mal-nutrition, which may appear to be overwhelming for the organization to
respond to. The company will use most of its resources in the sustainability of the developing
nations (Dhawan, 2010). The company is also expected to create products that meet the
utilitarian needs of the developing nations while factoring in the social and environmental issues,
which is additionally complex.
Risk is also another imperative measure that determines the acceptability of a strategy to
pursue suatainability marketing through segmentation. The strategic will involve selecting the
right segments as well as the target groups. The newly acquired company will segment the
market into socio-econoligally passives, the socio-ecologically activated, and the socio-
ecologically actives.
Figure 7: financial returns
Developing nations confront a plenty of issues including major environmental change
issues, poverty, and mal-nutrition, which may appear to be overwhelming for the organization to
respond to. The company will use most of its resources in the sustainability of the developing
nations (Dhawan, 2010). The company is also expected to create products that meet the
utilitarian needs of the developing nations while factoring in the social and environmental issues,
which is additionally complex.
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STRATEGIC MANAGEMENT 20
References
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in a dual options framework. Journal Of Applied Management Studies, 9(2), 235-255.
Back, A. E. (2007) Knowledge Networks for Business Growth. . New York: Springer,
Baker, R. (2018) Unilever: ‘Sustainability marketing is biggest challenge’ [Online]. Available at
https://www.marketingweek.com/2012/04/24/unilever-sustainability-marketing-is-biggest-
challenge/?ct_5ae93ca654ddd=5ae93ca654e80 [accessed on 2nd May 2, 2018]
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Dhawan, E., Goodman, E., Harris, S., & Mitchell, C. (2010) Unilever and its Supply Chain:
Embracing Radical Transparency to Implement Sustainability.
Doyle, P. (2010) Building Successful Brands: The Strategic Options. Journal Of Marketing
Management, 5(1), 77-95.
Goffin, K. (2005) Innovation management in Unilever Company. Houndmills, Basingstoke,
Hampshire: Palgrave Macmillan.
Hrebiniak, L. G., & Joyce, W. F. (2011) Organizational Adaptation: Strategic Choice and
Environmental Determinism. Administrative Science Quarterly, 30(3), 336-349.
Jeppesen, K. K., Carrington, T., Catasús, B., Johnsen, Å., Reichborn-Kjennerud, K., & Vakkuri,
J. (2017) The Strategic Options of Supreme Audit Institutions: The Case of Four Nordic
Countries. Financial Accountability & Management, 33(2), 146-170.
Johnson, G., Scholes, K., & Whittington, R. (2008) Exploring corporate strategy (8th ed).
Prentice Hall
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[accessed 5 May, 2018]
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Corporate Social Responsibility, 217-230.
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Pendrous, R. (2017) Unilever boss calls for takeover review. Food Manufacture, 11.
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Introducing the Indicators-based BSC for Implementation of a Corporate Strategy From Four
Different Perspectives. Hamburg: Anchor Academic Publishing.
References
Anderson, T. J. (2000) Real Options Analysis in Strategic Decision Making: an applied approach
in a dual options framework. Journal Of Applied Management Studies, 9(2), 235-255.
Back, A. E. (2007) Knowledge Networks for Business Growth. . New York: Springer,
Baker, R. (2018) Unilever: ‘Sustainability marketing is biggest challenge’ [Online]. Available at
https://www.marketingweek.com/2012/04/24/unilever-sustainability-marketing-is-biggest-
challenge/?ct_5ae93ca654ddd=5ae93ca654e80 [accessed on 2nd May 2, 2018]
Craft. (2018) Unilever’s competitors [Online]. Available at https://craft.co/unilever/competitors [
accessed on 4th May, 2018]
Dhawan, E., Goodman, E., Harris, S., & Mitchell, C. (2010) Unilever and its Supply Chain:
Embracing Radical Transparency to Implement Sustainability.
Doyle, P. (2010) Building Successful Brands: The Strategic Options. Journal Of Marketing
Management, 5(1), 77-95.
Goffin, K. (2005) Innovation management in Unilever Company. Houndmills, Basingstoke,
Hampshire: Palgrave Macmillan.
Hrebiniak, L. G., & Joyce, W. F. (2011) Organizational Adaptation: Strategic Choice and
Environmental Determinism. Administrative Science Quarterly, 30(3), 336-349.
Jeppesen, K. K., Carrington, T., Catasús, B., Johnsen, Å., Reichborn-Kjennerud, K., & Vakkuri,
J. (2017) The Strategic Options of Supreme Audit Institutions: The Case of Four Nordic
Countries. Financial Accountability & Management, 33(2), 146-170.
Johnson, G., Scholes, K., & Whittington, R. (2008) Exploring corporate strategy (8th ed).
Prentice Hall
Kalsoom, K., (2013) corporate governance of Unilever [Online]. Available at
http://worldofyourchoice.blogspot.co.ke/2013/04/corporate-governance-of-unilever.html
[accessed 5 May, 2018]
Lingard, T. (2013) Creating a Corporate Responsibility Culture: the Approach of Unilever UK.
Corporate Social Responsibility, 217-230.
Maljers, A. F., (2018) Inside Unilever: The evolving transnational company [Online]. Available
at https://hbr.org/1992/09/inside-unilever-the-evolving-transnational-company [accessed 5 May,
2018]
Pendrous, R. (2017) Unilever boss calls for takeover review. Food Manufacture, 11.
Pramudita, C. D. (2016) The Balanced Scorecard As Strategic Controlling Instrument.
Introducing the Indicators-based BSC for Implementation of a Corporate Strategy From Four
Different Perspectives. Hamburg: Anchor Academic Publishing.

STRATEGIC MANAGEMENT 21
Roger, C. (2016) Management Competencies Development Program. Sydney: Mac Graw-Hill
Boo Company.
Sanna, A., Quatrebarbes, A. d., & Probert, C. (2015) The Balanced Scorecard : Turn Your Data
Into a Roadmap to Success. Namur: 50Minutes.com.
Sato, C. E. (2017) Developing Organisational Capabilities through Customer-Led Systems
Integration Projects: The Case of the Major Project BT 21st Century Network in the UK.
Revista de Gestão e Projetos, 8(02), 36-57.
Singh, R. K., & Sethi, S. (2017) The Balanced Scorecard: Churning the Existing Literature.
Amity Global Business Review, 12(2), 20-31.
Stalk Jr., G., & Iyer, A. (2017) How to hedge your strategic bets. Business Today, 26(6), 116-
121.
Thompson, A. A. (2005.) Constructing and Executing Strategy. . New York: McGraw-Hill/Irwin,
Ungerer, M., Ungerer, G., & Herholdt, J. (2016) Navigating Strategic Possibilities : Strategy
Formulation and Execution Practices to Flourish. Randburg: KR Publishing.
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[accessed at 02 May 2018]
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governance/. [accessed 5 May, 2018]
Winston, A. S. (2014) The Big Pivot. Harvard: Harvard Business Review Press.
Roger, C. (2016) Management Competencies Development Program. Sydney: Mac Graw-Hill
Boo Company.
Sanna, A., Quatrebarbes, A. d., & Probert, C. (2015) The Balanced Scorecard : Turn Your Data
Into a Roadmap to Success. Namur: 50Minutes.com.
Sato, C. E. (2017) Developing Organisational Capabilities through Customer-Led Systems
Integration Projects: The Case of the Major Project BT 21st Century Network in the UK.
Revista de Gestão e Projetos, 8(02), 36-57.
Singh, R. K., & Sethi, S. (2017) The Balanced Scorecard: Churning the Existing Literature.
Amity Global Business Review, 12(2), 20-31.
Stalk Jr., G., & Iyer, A. (2017) How to hedge your strategic bets. Business Today, 26(6), 116-
121.
Thompson, A. A. (2005.) Constructing and Executing Strategy. . New York: McGraw-Hill/Irwin,
Ungerer, M., Ungerer, G., & Herholdt, J. (2016) Navigating Strategic Possibilities : Strategy
Formulation and Execution Practices to Flourish. Randburg: KR Publishing.
Unilever. (2018) Unilever brands [Online]. Available at https://www.unilever.com/brands/.
[accessed at 02 May 2018]
Unilever., (2018) our approach to reporting [Online]. Available at
https://www.unilever.com/sustainable-living/our-approach-to-reporting/ [accessed 5 May, 2018]
Unilever., (2018) Our corporate governance [Online]. Available at
https://www.unilever.com/investor-relations/agm-and-corporate-governance/our-corporate-
governance/. [accessed 5 May, 2018]
Winston, A. S. (2014) The Big Pivot. Harvard: Harvard Business Review Press.
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