Sustainable Organizational Development: A Unilever Case Study

This report provides an analysis of Unilever's organizational development, focusing on its strategies, activities, and goals within a globalized market. It examines Unilever's background, priority areas for development, management strategies, and proposed strategies for sustainable organizational development, including the integration of AI and cybersecurity. The report also assesses the influence of organizational culture and recommends structural designs to address challenges in a diverse environment. Key areas explored include Unilever's adaptation to industry changes through machine learning and cybersecurity, its management practices based on planning and execution, and its focus on sustainability and competitive advantage. The analysis emphasizes the importance of adapting to external changes, utilizing change management theories, and fostering a collaborative environment to achieve organizational goals efficiently. Desklib offers a wealth of study resources, including similar reports and solved assignments, to support students in their academic endeavors.

Organizational Development
[Merit]

Executive summary:
The aim of the report had been to analyse the background of the Unilever

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................4
MAIN BODY...................................................................................................................................4
Company background.................................................................................................................4
Priority area of development.......................................................................................................5
Management strategies practices in organization.......................................................................6
Proposed strategy for sustainable organizational development..................................................7
Organizational structural design.................................................................................................9
Influence of organizational culture...........................................................................................11
Recommendations.....................................................................................................................12
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Organizational development is considered to be the effort which is essential for an
organization to be able to develop the organization's capability towards the alignment of the
strategy, structure, people, metrics and the management process. In this report the selected
organization is Unilever which is a UK based organization that is company which is
headquartered in London. Unilever deals with products such as food, condiments, ice cream,
cleaning agents, beauty products and personal care. This organization is also the largest producer
of soap in the world. This organization is listed in the London Stock Exchange and is available
around 190 countries worldwide. This project will analyse the major characteristics, activities,
goals and key environmental influences on the organization. In this project there has been a
critical analysis of the recommendation of the organizational structure that is the design which is
based on challenges faced by the organization in the globalization of the market. Creation of the
justification of the strategies for the sustainable organizational development will be made. In this
project an evaluation over the influences of the organizational culture and its impacts on the
multinational organization for the operation of increasing diversity environment has been made.
MAIN BODY
Company background
Unilever is one of the most known companies that is specialized in offering variety of
goods to its various customers that are located in different parts of the world. Furthermore, the
company is following the set of patterns that has helped in achieving certain long term goals in
well-defined and systematic manner. Also, the firm had introduced range of personal, beauty
care and personal care products that satisfies the needs of the large number of people.
Furthermore, below are the detailed description of the company:
Goals: The major goal of the company is to promote the well-being of the people and
improve the livelihoods of the people through providing the specialized goods and services in the
best possible manner. Furthermore, the company take care of the environmental activities so that
there is no wastage of the products and also working is conducted in most sustainable manner
(About Unilever, 2022).
Activities: All the consumer essential items are been manufactured and sold among
various region of the world and major focus on the consumer goods includes beauty and care

products and foods and home care items that are daily needs every household. Thus, focusing on
such segments have allowed the firm to earn more revenues over the years and maintain the
position in the market that is different from the competitors.
Values: The company holds the major value of having honesty, trust and fairness with all
its people and working for the prolonged period. Also, it respects the diversity and thus recruits
all people that would prove the greatest asset in the future. Furthermore, the company is
responsible for all its activities that are undertaken for the growth and could be easily held
accountable in the future for conduct of various activities.
Characteristic: The firm over the years is focusing on performance of the employees
that are working at various levels and also ensure that highest quality is delivered through its
products to large number of its customers so that value of money is derived. Also, it ensures
efficiency in work through using various technologies and tools within the business. Thus, to
achieve all this the company does the integrated planning and assures high level of collaboration
so that set goals are achieved in most efficient manner
Environmental influences: Unilever is the company that is having the established brand
image in the market and hence it is very important for the firm to follow the sustainability steps
and deliver the higher product to the customers. Moreover, market influences like increasing of
environmental programs are also considered by the firm through launching various campaigns
that promotes the protection of the planet and ways adopted by the company to do so.
Priority area of development
For company like Unilever it has been able to perform well only due to closely analysing
the needs of the customer needs and preference and launching variety of products in the market.
Also, currently it can say that overall working of the consumer goods industry had completely
changed and thus this is the major area of development for the organization as if it fails to do
(so) than it would only reduce the company market share and decrease in the overall profits on
large scale. Hence, it can be said that company needs to adapt to such external changes that are
occurring outside the business environment so that it is able to maximize the revenues and also
able to maintain the competitive advantage in the long run. Also, for such type of the frequent
changes the company has build the strong supply chain network that would distribute the goods
in less time in various areas and had also appointed specialized team that is responsible for

conducting the extensive market research to find out various changes that are occurring outside
the business so that same might be applied within the existing company policies.
Furthermore, for the changes within the organization the company applies the Kotter
change management theory so that it is able to adapt to the changes smoothly and in the best
manner without having any kind of confusion or resistance from employees. Also, to cope up
with changes in smoothly Unilever actively provides training to all its employees so that the new
procedures and conduct of carrying out various task might be easily known so that there is the
best utilization of resources. Furthermore, top management of the Unilever ensues that change is
communicated to all employees and reason behind is clearly explained so that all employees are
able to wok together in team to achieve goals in the best possible manner. Also, the new change
recently the company had grown through is simplifying the organizational model and become
more category focused business where each segment of the product category is analysed
closely so that best could be offered to the customers. Thus, such type of the focused would
allow the company to conquer large market area and also lay special significance to all products
in well-defined manner. This would further help the firm in avoiding unnecessary costs and time
and would also help in identifying the market where the demand of particular segment is very
high so that same might be fulfilled in timely manner. Furthermore, such changes within the
consumer goods industry had to be looked by the firm so that maximum efficiency is derived and
also the highest return to the future activities of business is assured.
Management strategies practices in organization
All the strategies that are used within the Unilever are based on the strict planning,
monitoring and execution so that chances of errors are the minimum and also the highest returns
are derived in the future. Furthermore, top management work of strategy of prioritizing the task
so that there is effective time management and also all the important task are completed within
the day. Moreover, the company develops the management strategies through conducting the
SWOT and PESTLE analysis so that all the areas of the improvement and the corrective
measures required both internally and externally might be undertaken. Also, through this analysis
the firm is able to identify what are the activities that are taking place within the firm and also
such analysis firm is than able to monitor the activities in most efficient manner and make the
required modification in the working of the employees. Furthermore, to understand the company

management strategies practices it might be broadly divided into the three categories that are as
follows:
Business : It is strategy that is made by the cited firm to develop the competitive position of its
various products or services. Further, it covers making of all those strategies that would help in
beating various competitors in the market in terms of product quality and value for money. Also,
it is based on plan of actions where the resources' allocation is clearly defined and matters such
as product innovation, development and integrations are discussed on regular manner
Operational: It is the management strategy that is used by the firm to set certain divisional gaols
that need to be achieved in specified time frame and in the best possible manner. Furthermore,
the arse that are covered under this strategy is designing and positioning of various production
systems and selecting the best technology for the success
Transformational: It is type of strategy that is used by the firm when it needs to transform
completely the process, people and technology to make the working easier and to maintain
competitive advantage in long run. Furthermore, it is type of overall organizational development
that is taken by the firm keeping in mind various factors so that systematically the work is
carried out.
Thus it can be said that management practices of the company is not limited to choosing the
right kind of strategy for its working but is also dependent on formulating company mission and
vision statement and conducting the situational analysis through clearly defining the strategic
objectives to all it employees. Once the strategy is communicated to each of team members than
it is implemented for achieving the best positive outcome and results and later on strategic
evaluation and control is established (Alerasoul and et.al., 2021). Moreover, it can be said that
company is focused on developing plans that would help in achieving certain company goals in
well-defined manner. Also, all the management strategies that are developed inside the
workplace helps in effective decision-making and helps in measuring the progress on regular
manner that is further essential for the overall company growth and progress in the coming years
Proposed strategy for sustainable organizational development
The strategy that this organization has to take under consideration is going to be related
to the changes in the nature of the industry. Unilever which has been an organization famous for
its manufacturing products which are used for the consumption has been able to realize that the

industry's nature is changing. The nature of the manufacturing industry has been changing is a
way that it has been focusing on the use of AI technology for he influences of the rapid growth
that is going to bring next industrial revolution (Drobyazko and et al., 2019). It is also the surge
of lot automation and robotics which are related to the machines which are utilized for the deep
learning of rolling out the manufacturing of warehouse everywhere. Unilever can adapt to this
nature with the help of following strategies,
Machine Learning :
AI for the company's like machine learning is going to often use systems that are going to
help in capturing vast amounts of data. It is also considered to be the factor which is essential for
the smart energy management systems for the collection of data from the sensors that are affixed
to the various assets (Hopej and Kandora, 2018). It troves of data that are going to be collected
and the contextualizes it through the use of machine-learning algorithms and delivered to your
company's decision-makers to better understand energy usage and maintain the demands.
Cybersecurity :
AI has been considered to be the technology that has provided a indispensable ally when
it comes to the defences of the computer. This is the technology which has the potential of
recognizing when there is an attack on the system or the network for troving the data and then
contextualizing the machine learning algorithms and delivering the company's decision-makers
to better understand the use of energy and maintain the demands of the organization. This is
going to be the factor that would help AI to be able to recognize a cyber attack or cyber threat.
This extra surveillance on the internet security is considered to be very helpful for the
organization to be able to provide the benefit for the organization and its infrastructure to look at
these problems that are useful for solving complexities.
Customer relationship management :
AI is considered to be changing in customer relationship management (CRM) systems. It
is also the software programs like sales force and Zoho that would be very useful for the
company in adaptation of AI. AI with the use of such platforms are able transform their system
into a self updating auto correcting system which stays on top of the relationship management.
Utilization of this nature of the organization is going to help the company to be able to look into
the property of sale and also spend more than 10minutes in the area of possible mortgage offer. It
is considered to be very effective in the management of the operations that are very important for

the understanding of the operational practices (Joseph and Gaba, 2020). With the help of AI
business can be able to develop its relations even better in the with the customers for the future.
Internet and data research :
Unilever can utilize the AI for the use of identification of the patterns in data and people's
search behaviours for providing them with more relevant information that are related to the
circumstances. The people in general are able to use their device for the more than just AI
technology for becoming more advanced. It is also said that the users will be having more
customizable experiences for the world if they will be able to target very specific audience
(Murphy and Murphy, 2018).
Digital personal Assistance :
Unilever which has started to introduce its stores in the current time is going to be able to
create a customizable experience for the customers. It is considered that the ways in which the
company is able to operate is going to help it us AI for a better experiences and also be able to
generate the management of emails and maintain the calendar which is provided as
recommendations for streamlining of the process (Lawrence, Rasche and Kenny, 2019).
Unilever as an organization is going to be able find new opportunities with the adaptation
of this new strategy of using AI in its operations with the given ways.
Organizational structural design
Organizational structure aligns with the relations of the parts of an organization that is
able to achieve its maximum performance. It is also considered to be the structure that is chosen
for the affects of an organizational success in order to carry out the strategy that would help
Unilever to be able to achieve its objectives (Peillon, 2021). The leadership needs to be
understood for the characteristic benefits and limitations of the organization structures to assist in
the strategic alignment. It is the article that is able to address the following topics that are related
to the organizational structures.
Organizational structure is considered to be the method flow that allows the group to
work together within their individual functions to manage the tasks. It is considered to be the
traditional organizational structure that is tended to be more formalized with the employees to be
able to group by functions. This is also considered to be the factor that helps the business to be
able to recognize the ways in which the operations of the business work (Sachs and et al., 2019).
The organization is also considered to be the factor that is able to change swiftly with the

influence of flexible working structure to be able to adapt the company with its change
environment.
These are the following structure that the organization would have to be use for being
able to adapt to the different kind of situations.
Vertical structure :
This is the structure of an organization that is also known for its exists, functional and
divisional. This is the structure that has been divided from the specialization of the hierarchical
structure that is able to gain the vertical integration of the structure that is able to standardize in
the organization and is process for the employees in the relatively narrow jobs.. Hence this is not
the ideal organizational structure of design for that Unilever should adapt. The advantages of
using this structure are,
 It provides more focus and flexibility on each division core competency.
 This is also considered to be the factor which is able to focus on the production of the
specialized products which are also very useful in nature and is related to the division of
the work.
 This is also considered to be very useful for the decision-making of the organization.
The following are the disadvantages for using this structure are,
 It can result in loss of efficiency and also the duplication of effort because of each needs
for acquiring the same resources.
 In this kind of resources the employees are able to reach their own research and
development for the marketing and other units for being able to help others.
 It is the division of the organization which is considered to be ineffective for competing
in an organization industry.
Matrix Organizational Structure :
The matrix organizational structure is the combination of the both functional and
divisional structure for the creation of a dual command situation al in the organization. This is
also the structure of the organization which is very effective in the contribution of the versatility
and administrative functions that helps the HR, information technology, sales and marketing to
be more effective in the market (Organizational structure design, 2022). The business is able to
gain more level of development through this type of structure. It can be said that the

geographical factors are able to align with the business for the relations of the product, services
and customers relations (Turnnidge and Kelly, 2021).
Advantages of such type of matrix structure includes the following,
 It is considered to be the creation of functional and divisional partnership that is focusing
on the work which is done by more people.
 This is the structure which would help the company to share key information regarding
the people.
 This is also the balance and the overview of the time between the completion and cost.
Disadvantages of the matrix organizational structure is,
 It can help the organization in the development of responsibilities that is unclear thus,
complication of the governance and the control (Walheiser and et al., 2021).
 The reporting of the management is considered to be time taking and confusing at times
due to the complexity of matrix culture.
 This project is able to develop a dual chain of command that requires cooperation
between the two direct supervisors for the determination of the employee's work
priorities and work assignments.
Influence of organizational culture
It refers to proper way of behaving within the firm so that work is carried out in manner
that does not create conflicts and also shared values and beliefs could be practice within the firm
for longer time frame. Also, in context of Unilever it can be said that it has developed those
methods and systems that not only promotes the best behaviour of the employees but also
ensures that organizational values are been improved over the years. Furthermore, the mangers
of the Unilever influence the culture of the firm through practising the best leadership and
ensuring that there is existence of proper communication channels so that employees are able to
freely exchange various ides within the business. Also, communication channels have allowed
the employees of the Unilever to solve various issues and also provide the feedback of the
working process to their immediate superiors so that more improvements might be made.
Furthermore, the actions of each employee are closely monitored within the workplace so that if
any improper activity conducted by any employee is been reported than strict actions could be
taken for the same.

Also, organizational culture is clearly defined within cited firm that has resulted in
improved productivity and positive organizational results in short span. Also, it has helped in
reducing the overall organizational conflict and created the feeling of cooperation among the
employees even in tough time like pandemic where culture was of remote working. Moreover,
through the positive organizational culture the cited firm has been able to maintain the creativity
and innovation at the workplace and its products (Organizational culture: Definition,
importance, and development, 2022). Also, various new technologies were been installed within
the organization to make the working process easier. Thus, all these changes were accepted by
each employee in positive manner because of good organizational culture that company believes
will help all employees to achieve their personal gaols apart from the overall organizational goals
in well-defined manner. Furthermore, Unilever organizational culture had positively motivated
all its employees to help in expand its business operations across in various regions and also have
to higher engagement in complex work. Thus, with the greater productivity and best working
culture the company is able to adapt to the changing industry patterns and is successful in
maintaining the competitive advantage in the long run
Recommendations
Following are the recommendation that can be made to Unilever for its business
development are,
 In order to increase the business development of this organization it is going to be very
essential for the organization to be able to develop a strategy. Being able to increase the
diversification this organization would be able to gain more stability and effectiveness in
the performance. Being able to make more diverse food products would also be the key
factor that would help the business generate the growth.
 In Unilever the focus needs to be on the ways in which it is going to be able to adapt to
the change that the industry is facing. This change is the use of AI for the purpose of its
different operations. Hence, it is going to be very effective for Unilever to be able to
understand the areas that can affect the organizational growth and also be able to generate
the growth that is effective. For this company generation of the operational effectiveness
is considered to be the study for the business. Utilization of AI for the purpose of
bringing strategical growth is going to allow the business to manage the organizational
management for the purpose of the organization.