Strategic Management Plan: Analysis of Unilever's Business Strategy

This report presents a strategic management plan for Unilever, a multinational consumer goods company. The analysis begins with an introduction to strategic management and Unilever's mission, vision, and objectives. Part 1 assesses the impact of the external environment using PESTEL analysis, evaluating political, economic, social, technological, environmental, and legal factors. It then analyzes the internal environment and capabilities using SWOT analysis, highlighting strengths, weaknesses, opportunities, and threats. The competitive forces within the market sector are discussed, leading to the development of strategies for competitive advantage. Part 2 focuses on strategic planning, interpreting strategic models and developing a plan with tangible objectives. Information and data from environmental and competitive analysis are used to form strategic directions and tactical actions. The conclusion summarizes key findings, and references are provided.

Strategic Management
Plan

Table of Contents
Introduction......................................................................................................................................1
Part 1................................................................................................................................................1
Assess the impact and influence of the external environment on chosen organisation and its
strategies.................................................................................................................................1
Significantly evaluate the external environment to determine strategic management decision
................................................................................................................................................3
Assess the internal environment and capabilities of the chosen organisation using suitable
framework...............................................................................................................................3
Evaluate internal environment to determine the strength and weakness of the company’s
internal capabilities.................................................................................................................4
Discuss the competitive force of a chosen market sector for an organisation........................5
Develop essential strategies to develop competitive edge and market position based on
outcome..................................................................................................................................7
Part 2................................................................................................................................................7
Interpret and develop strategic planning for chosen organisation using theories, concepts and
models.....................................................................................................................................7
Develop strategic management plan that has tangible and planned strategic priorities and
objectives................................................................................................................................8
Interpret information and data, using environmental and competitive analysis to form
appropriate strategic directions objectives and tactical actions..............................................9
Conclusion.....................................................................................................................................10
References......................................................................................................................................12

Introduction
The term strategic management is defined as the process of analysing the environment, level
of competition available and internal organisation then setting appropriate strategies and
objectives in order to achieve desired goals and objectives effectively. It helps business
organisation to enhance their overall performance and increase profitability and productivity. For
this report Unilever is taken as the base company. Unilever is a well-established British company
headquartered in London. England. Offering consumer’s goods in more than 190 countries
owing over 400 brands. Unilever was founded in 1929. This report highlights the analysis of the
internal and external environment of the chosen company as well as the evaluation of the
competitive environment, also the justification of the organisation’s existing and potential
competitive advantage. Suitable strategies and objectives to attain overall strategic goals are also
highlighted in this report. In addition to this various forms of strategic direction available to the
organisation and the suitable growth strategies and ways through which selected strategy can be
monitored is also highlighted in this report.
Part 1
Assess the impact and influence of the external environment on chosen organisation and its
strategies
External environment is defined as the environment or combination of factors available
outside the business organisation but directly influence the operations of the business
organisation, it includes various external factors and condition which are outside the control of
the business but has direct impact on the decision and objectives of the business. In context to
Unilever, which is top multinational consumer goods company operating around the globe.
Unilever was founded in 1929 headquartered in London, England. Company is having strong
brand image through offering products in more than 190 countries (Abutabenjeh, 2021). In order
to form any strategies it is essential to have clear understanding of the company’s goals, mission
and objectives which helps company to formulate effective strategy as highlighted below:
Mission: The mission statement of the company is to add liveliness to life, through satisfying
daily needs of nutrition’s, hygiene, personal care through brands that helps their customer’s top
feel and look good.
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Vision: The vision statement of the company is to become global leader at the marketplace
especially in the sustainable business.
Objective: The main objective of the company is to make sustainable living and improving their
health and wellbeing. The is focused on enhancing the livelihoods of number of people in the
supply chain, company is continuously working towards satisfying their customers through
offering quality products and services which leads to gaining competitive advantage in the
market also to have the environmental footprint of the group’s products (Aula and Mantere,
2020). In order to analyse the macro environment of the chosen company the PESTEL analysis is
taken into consideration as highlighted below:
PESTEL Analysis: it is one of the essential marketing tools or framework used by the company
in order to analyse the various external factors available outside the business environment but
directly impact the company to some extent. The PESTEL stands for political, economic, social,
technological, environmental, and legal. In context to the Unilever the PESTEL analysis is
discussed below;
Political factors: it includes factors like government policies, laws, rules and regulations,
and tax rate, which has direct impact on the operations of the business. Any kind of political
instability will create an unfavourable environment for the business. In context to the Unilever,
company operates in more than 190 countries, so in order to operate smoothly company needs to
follow the government regulations of each country, because of Brexit, there will be changes in
the regulations and sales, and company needs to ensure that political rules are followed
affectivity.
Economic factors: The economic factors includes interest rate, inflation rate, changes in
the demand and supply and GDP rate of the country, these factors has direct impact on the
profitability of the business, economic growth will also leads to the success of the company and
vice versa. In context to the Unilever company is operating the strong economy which helps in
building strong brand image of the company and allow customers to spend more which enables
in increasing profitability of the company as well (Carter and Stickney, 2019).
Social factors: It includes factors like consumers behaviour or the cultural factors which
directly influence the functioning and profitability of the business. In context to the Unilever,
because of increasing demand of the sustainability, company has emphasis on the sustainability.
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Technological factors: The technological factors includes technological advancement or
any changes in the technology which has direct impact on the operations of the business to some
extent. In case of Unilever, company is using advance technology in order attract their potential
customers and enhance their overall performance effectively.
Environmental factors: It includes working towards the welfare and sustainability of the
environment, each business has responsibility towards the sustainability of the environment
which leads them towards growth. In context to the chosen company, they are effectively
working towards the welfare and sustainability of the environment, continuously working
towards improving the livelihood of the people.
Legal factors; The legal factors includes the legal laws, rules and legislation which is
needed to be followed by the each and every one, strict legal laws will create barriers for the
company whereas the favourable legal laws will allow company to grow. In case of Unilever
company needs to ensure that they are following legal laws (Dhir, 2019).
Significantly evaluate the external environment to determine strategic management decision
From the company’s macro environment analysis it is analysed there is political instability
because of the Brexit which leads to unfavourable environment for the Unilever but because of
the strong brand image in the market company is successfully dealing with the political
environment but still company needs to ensure that any big changes in the government policies
will directly influence company. With the growing use of technology company is also using
necessary advanced technology in order to attract their potential customers which enables in
improving overall performance of the company. UK has strong and developed economy which
automatically helps Unilever to grow and develop. One of the strong point of the company is
continuously working towards fulfilling social responsibility and putting an emphasis on
sustainability of their customers, Unilever is effectively working towards their corporate social
responsibility and improving the livelihood of the people which helps them in building strong
brand image around the world and gaining competitiveness in the marketplace. The analysis of
macro environment will helps company in their strategic decisions and implementing effective
strategy (Haghighi and Jalali, 2018).
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Assess the internal environment and capabilities of the chosen organisation using suitable
framework
The internal environment includes all the internal factors available inside the business
environment but has direct impact on the functioning and operations of the business organisation.
In context to Unilever, in order to analyse the internal environment and capabilities of the
company, SWOT analysis is taken into consideration (Haynes, 2018).
SWOT analysis: It is a marketing framework used by the business organisation in order to
analyse the various internal factors available inside the business environment but has impact on
functioning of the business to some extent. In context to the Unilever the SWOT analysis is
discussed below:
Strength Weakness
 Unilever has strong brand image around
the globe which is the biggest strength of
the company.
 Unilever also has broad product mix and
large economies of scale.
 Company also has strong international
market presences.
 Unilever’s products are generally
imitable in nature which can work as
weakness for the company.
 Unilever also has limited business
diversification.
 Another weakness of the company is
that it is highly depended on the
retailers for the activities.
Opportunity Threat
 The biggest opportunity for the company
can be to expand their business into new
market.
 Another opportunity for the company can
be increase their product line to attract
large customers.
 One of the biggest threat for the
company is the increasing
competition in the marketplace.
 Changing taste and preferences can
be another threat for the company.
 Increasing growth of the retail
industry can be another threat for the
company.
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Evaluate internal environment to determine the strength and weakness of the company’s internal
capabilities.
From the company’s internal environment it is analysed that Unilever has strong brand
image around world and broad product mix which are considered to be the company’s biggest
strength, in addition to this because of the strong brand image company also has effective
presence in the international market. These strength helps company to enhance their productivity
and profitability in the marketplace and improve overall performance. In order to continue to
grow and develop themselves and gain competitiveness into the market company needs to
continuously analyse their environment and invest in the research, human and advance
technological resources. In addition to this company’s product are imitable in nature also has
limited business diversification which work as a weakness for the company. Proper actions and
strategy needs to be taken into consideration by the company in order to deal with the
weaknesses effectively. In addition to this evaluations of Unilever are well optimized by their
internal strength which has brand recognition and a wide range of product and weaknesses are
they have multiple factors and they have a various capability which shows the strength. The
competitor used to create promotion tactics to create a competitive phase with Unilever as for
this internal strength at stake in as a consideration and make an approach towards creating huge
base customer (Kodama, 2019).
Company’s resources and capabilities
The company’s resources are the necessary assets of a business organisation needed to
grow, whereas the capabilities are defined as the company’s ability to grow into the marketplace.
Both are needed in order to grow and become successful into the marketplace effectively. In
context to Unilever the tangible resources of the company includes company’s more than 400
brands in around 190 countries around the world as well as 150000 employees whereas the
intangible assets of the company includes great knowledge of the consumers goods company
around the world, great knowledge of their customers and emphasis of the sustainability of the
customers are the main resources of the company. In addition to this the essential capabilities of
the working is its improving the livelihood of the customers through sustainability as the core
competency of the company is based on the customers value and sustainability effectively.
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Discuss the competitive force of a chosen market sector for an organisation
Porter's five forces are also known as five forces analysis in which the chosen enterprise is
Unilever, show the activity of the competitions and the bargaining power of customers in the
industry and their environment. Overall, five forces are a kind of management tool and
framework which used to provide a strategic pathway to realize and the potentials and strongest
forces and the diabolical structure and this is usually associated with the bargaining powers of
buyers. Unilever used to create the market position and organizational strength and the
evaluation is usually confirmed by using porter's five forces (Irfan and et. al., 2019).
Competition rivalry: Competition is a major force in the Unilever industries. Moreover,
this is identified that in the five forces analysis identifies the various factor which is based on the
external impact in this the strong force of competition travels against Unilever are various
organizations with their intensity. The higher number of forms higher aggressiveness of
enterprises low switching cost. As per this, there is various form operating the consumer goods
industry. It creates an impact on Unilever with strong forces.
Bargaining power of the supply: Unilever's business and industry environments usually
make an association with the consumers for their products influence on the performances of the
businesses and this is well analyses by the five forces analysis. In this, Unilever must address the
following factors which are external and create a strong force in the bargaining power of
customers are usually low switching costs high quality of information’s and small size of buyers
can help to gain more profit as per the customer basis.
Bargaining power of the buyer: The suppliers of Unilever is usually affecting the level of
supply when available to the enterprise. The section presents that the supplier in two ends the
various organizations as per these external forces which may contribute to clear the bargaining
power of suppliers are moderate, size of individual supplier, moderate populations of the buyers
and also overall supply is useful in a medium level (Hafezi and et. al., 2019).
The threat of substitution: Substitute used can reduce the revenues in the strength of the
enterprise under consumer goods. Moreover, Unilever in packed it due to this factor if any
organization is used to produce the substitution product as like the Unilever. Moreover, they can
create some of the responsible factors for the weak force is afraid of substitution cost low
substitute availability low performance to a ratio of a substitute. It is implying that the threat of
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substitution is higher and sometimes the weak forces are also analyzing (Machin and et. al.,
2017).
The threat of new entrants: Unilever usually established enterprise and compared to the
other organization used to influence the industry environment of Unilever. They need to create
use investment and also the high cost of brand development economics of scales and low
switching cost is a strong force.
Develop essential strategies to develop competitive edge and market position based on outcome
To continue to survive and grow into the competitive market it becomes very essential for
the Company’s to develop competitive edge and market position in the marketplace. In context
to Unilever, company can use innovation and differentiation strategy in order to gain competitive
advantage and strong market position in the marketplace, the innovation and differentiation
strategy will allow company to bring innovative and creative ideas into the organisation which
will lead to attracting large number of customers and increasing their customers base effectively
also the differentiation strategy will allow company to be different from their competitors
through offering differentiated product and services. Both the strategy will help company to gain
competitive advantage into the marketplace and increasing their sale as well productivity
(Novikova, 2018).
Part 2
Interpret and develop strategic planning for chosen organisation using theories, concepts and
models
It is very important to the business organisation to develop strategic planning and analyse
their position in the marketplace, in context to the Unilever to develop the strategic planning and
analyse their position in the marketplace and also to enhance the competitiveness company can
use porter’s generic strategy which is discussed below:
Porter’s Generic strategy: It is one of the necessary strategy used by the business organisation
in order to understand the competition available in the marketplace and the essential strategy that
can be used by the business organisation in order to gain competitive advantage into the
marketplace. There are mainly three strategy involved under this which helps business
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organisation to gain competitive advantage into the marketplace. In context to the chosen
company the strategies are discussed below:
Cost leadership strategy: The first strategy that can be used by the business organisation
to gain the competitive advantage into the marketplace is the cost leadership strategy, under this
strategy the company offers their product and services at the relatively lower prices in order to
attract large number of customers which leads to gaining competitive advantage into the
marketplace. In context to the Unilever, company can use this strategy in order to increase their
customer base through offering products at lower prices and enhancing their value chain.
Differentiation strategy: Another strategy that can be used by the business organisation
is the differentiation strategy, under this unique and differentiated products and services are
offered in order to gain competiveness. In context to the chosen company, as per the needs and
wants of the customers company can offer differentiated and unique product to their customers in
order to satisfy their needs effectively.
Focus strategy: The last strategy is the focus strategy, under this products are offered at
the lower prices in the targeted market this allows company to focus of the target market
effectively. In context to the chosen company, this strategy will allow company to focus on their
potential target market through offering product low and satisfying their needs (Rosenbaum-
Elliott, 2021).
Develop strategic management plan that has tangible and planned strategic priorities and
objectives.
Executive summary: The plan will emphasis on increasing the competitiveness, as increasing
competition can become barrier for the company, it is on the basis of company’s strength and
capabilities and developed through offering differentiation.
Background statement: Unilever is top multinational consumer goods company, offering
services in more than 190 countries. Company was founded in 1929 having strong brand image
around the world.
Market analysis: In order to analysis the market and achieve desired goals and objectives
Ansoff matrix can be used by the organisation. In context to the Unilever the strategy is
highlighted below:
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Ansoff matrix: It is a tool or technique used by the business organisation to determine the
effective strategy for growth and development. It involves four strategy which can help company
to grow, in context to the company strategies are highlighted below:
Market penetration: Under this strategy marketer company focuses on selling existing
product and services into the existing marketplace through reducing the prices of the product or
increasing promotional activity.
Product development: Under the product development strategy, marketer focuses on
launching new product into the existing market, this will help company to attract large number of
customers.
Market development: Under this strategy the main focus of the business organisation is
to enter new market and increase their market size with existing product and services. For
company with strong brand image it will be easier to enter new market place.
Diversification: The last strategy that can be used by the company to grow is the
diversification strategy under this, marketer focus on entering new market with new and
innovative products and services in order to grow and develop.
From the above, in order to grow and develop and gain competitiveness in the
marketplace Unilever can use market development strategy, company already has strong brand
image this strategy will allow company to expand their market size with their well-established
product. With strong brand image it will be easier for the company to enter new market and
grow.
Objective: The objective of the company is to grow and increase their product range, and also
increase their sale by 26% in the next 1 year and also expand their market size effectively
(Stoyanova, 2018).
Evaluation and monitoring plan
For successful implementation of the plan it is very essential for the business organisation
to continuously evaluate and monitored their plan, in context to the Unilever, while evaluating
the plan SAF model can be taken into consideration. As for the company the plan is suitable as it
is based on the company’s strength and capabilities, also it is appropriate as it will help company
to grow further and develop effectively. In addition this the plan is also feasible as it is on the
basis of company’s resources and capabilities effectively.
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Interpret information and data, using environmental and competitive analysis to form appropriate
strategic directions objectives and tactical actions.
As on the basis of information and the data it is analysed that the political and legal factors
are directly influencing the operations of the chosen company as well as increasing technological
advancement and competition in the market is also creating challenge for the company. The
quantitative objective of the company is to enhance their performance and increase their sale by
26% in the next 1 year and the tactical action taken by the company is to work towards
sustainability and improving livelihood through providing quality product and services (Yoder,
2019).
Conclusion
From the above discussion it can be concluded that strategic management plays an essential
role in the implementation of essential strategy in order to achieve desired goals and objectives
effectively, it helps in enhancing the overall performance of the organisation and increasing
profitability and productivity. Strategic management helps in implementing the analysing the
environment and then implementing the necessary strategy needed in order to achieve goals and
objectives. This report is divided into two part, the first part highlights the detailed description
and analysis of the internal and external environment of the chosen organisation as well as the
evaluation of the competitive environment which provides the necessary information required for
the strategic decision making. In addition to this necessary required for achieving overall
strategic objectives is also highlighted. The second part of the report covers the strategic option
available for the chosen organisation and appropriate growth strategies and how the chosen
strategy can be monitored effectively is also highlighted in this report.
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References
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