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Unlocking Business Strategy: Unilever's Competitive Edge

University: CECOS College London

  • Unit No: 32
  • Level: High school
  • Pages: 17 / Words 4168
  • Paper Type: Assignment
  • Course Code: R/508/0574
  • Downloads: 286

Table of Content

  1. INTRODUCTION
  2. CONCLUSION
Question :

This sample will let you know about:

  • What is Analysis of frameworks that has impacted and influenced macro environment?
  • Explain Internal environment and capabilities of organisation.
  • Discuss Applying range of theories, concepts and models.
Answer :
Organization Selected : British Dutch transactional consumer goods

INTRODUCTION

Business strategy is defined as combination of all decisions taken and action performed by business owner to accomplish the goals and objectives. Every organisation should have strategic plans so that it can secure a competitive position in the market. In other words, strategies are the backbone of business that leads to desire the goals (Carlson, 2020). To understand about this and gaining competitive competition Unilever has been chosen that is multinational corporation in UK and other countries. This is British Dutch transactional consumer goods company, headquarter in London, England and Rotterdam etc. Different topics are covered in this report such as impact and influence that the macro environment has on organisation, application and outcomes of an analysis using porter's five forces model, models and theories that are used in strategic directions to a company. Moreover, report has covered porter's five forces model in order to take competitive advantages.

Mission - The mission of Unilever is to increase the organisational productivity and profitability by offering variety of products and services.

Vision - The vision of Unilever is to provide products and services in global market which customers want.

Objective - To increase brand image, profitability and competitive advantages by running a business continuously.

Definition of Business strategy - This is planning which is developed by management in order to attain business goals and objectives. Strategy should be appropriate and understandable which attracts customers and increase organisational productivity. Need Assignment Examples?Talk to our Experts!

Analysis of frameworks that has impacted and influenced macro environment

About company and its vision - Unilever is a British multinational company which is operating its business in London and other countries by providing better quality of consumable products and services. The vision is to create a sustainable and healthy living place. Moreover, its objective is to increase productivity and profitability by selling number of products.

Strategy: An action and long term plan which is designed by managers in order to achieve particular goals and objectives is consider as strategy. If organisation is having good plans and skilled employees then only it can complete task and attain business goals. This is important for organisation that make plans and implement them effectively. In Unilever, managers are responsible to take right action by executing plans that helps to get the profitability. In other words, the role of organisation is to provide fast consumable products to customers which helps to improve productivity (Strelchenko, 2019).

Macro environment - This refers as an environment in which how macroeconomic conditions of a company operates a business that is impacting on operations and performance. It is related to external factors which have impacted on business, consumer's ability and willingness. Every organisation is required to analyse macro environment as it is the part of strategic management that covers various factors which are important to run a business. In context to Unilever, manager focus on external environment that assist organisational people which factor can impacts on business strategy such as:

Political factor: This factor extent the government policies and stability of a nation which is required to follow by a business that may impacted positively and negatively. In UK, government is stable who make fair decision by formulating policies and regulations that has impacted on business positively. The business and operational activity of Unilever increasing as managers make decisions regarding to expand business in other location with the help of government support that affect business positively. Along with this, increasing rate of tax and fuel can impacts negatively as low production and reduction in selling activity due to changes in tax rates (PESTLE analysis of Unilever, 2017).

Economical factor: The containment of this factor involves economy of a nation which has affected the performance of a business. Rate of inflation, interest rates, foreign exchange rates, economic changes etc. are covered in this element who has affected business strategy. The business performance of Unilever depend on situation of economies across the world. For instance, the inflation rate of UK is stable that is increasing wages of people in developing countries, is opportunity for Unilever to get profits by selling products and services. On the other hand, sales of organisation can be reduced due to increasing rate of interest and inflation in UK that create a risk for Unilever (Azevedo and Budish, 2019).

Social factor: When people are behaving in differently and they have different demands is related to society that has impacted on business performance. The people of UK are highly health consciousness and environmentalist behaviour that has created a opportunity for Unilever as it is growing continuously by addressing consumer's needs and creating interest of healthful products.This is impacting positively on business performance and improve profitability. Moreover, not focusing on customer's demand and not providing health consciousness products it can reduce the productivity that can impacts negatively.

Technological factor: The businesses in relation to all sector and field depends on technologies and innovation that helps to produce new products and services as people wants that affects business in good ways. The positive impact of technological factor on Unilever is rising automation and new business processing equipment that helps to enhance inventory monitoring and supply chain. Moreover, it helps to increase the operational efficiency and distribution efficiencies by using this factor optimally. However, at the same time it can threat for Unilever as it increases high competition in relation to other firms by involving small ones in market. This can be create cost of organisation in research and development that affects business strategy negatively (Schwarz, Ram and Rohrbeck, 2019).

Legal factor: This factor have relations with political factor as both are containing government rules and regulation which affects the business and its performance. The performance and operational activity of Unilever can be increase as it follow new patent laws that reduces patent related issues and increase profitability. On the other hand, not following the equal wages, health and safety and consumer protection laws then it become threat for entire company to run its business.

Environmental factor: The relation of this factor with ecological trends and conditions that has impacted on business strategy and performance. Under this factor, Unilever is improving its business performance by running environmental programmes that attracts customers and enhance the business sustainability. Oppositely, this factor can impacts negatively in case of not contributing in corporate responsibility the opportunity would be taken by other organisation that reduced sustainability (Szopinski and et. al., 2019).

Stakeholder analysis

Stakeholder matrix is consider as a tool and framework that assesses by managers by implementing potential changes in interested parties. In organisation, stakeholder are those people who have interest in operations and making decisions in relation to any task or project. The stakeholder matrix in context to Unilever organisation as defined:

 

 

LEVEL OF INTEREST

 

 

 

HIGH

LOW

 

HIGH

Managers

Suppliers

LEVEL OF POWER

LOW

Employees

Communities

High power and high interest - These are consider as major stakeholders that are heavily invested amounts in business projects and expects to get high return. According to above matrix it has considered as manager is having high interest and high power in Unilever who make decision and run their business effectively (Romero, Ruiz and FernandezFeijoo, 2019).

High power but low interest - This is also stakeholder who are playing a significant role and it must be kept satisfied. In context to Unilever, suppliers is having high power who distribute raw material but less interest in activities. Suppliers can derail the organisational project after seeming the minor issues.

Low power and high interest - This type of stakeholders must be kept informed and creating high influenced. In Unilever, employees are consider in this category who have low power to make any decision but have high interest that encourages them to work properly. This type of stakeholders do not get what they wants.

Low power and low interest - This stakeholders must be monitored that helps to complete the task. In Unilever, communities have low interest and low power who do not participate in business activities. In case of becoming more powerful it can affect the project in future so it is required to monitored (Kerridge and Simpson, 2019).

Internal environment and capabilities of organisation

Internal environment is composed of the elements in relation to business organisation, involving management, current employees and corporate culture that affects business and its performance. With the help of this internal analysis capabilities can be get and improvements are done accordingly. For Unilever, it is important that they should analysis internal environment that can help to improve business activities. The management of Unilever company uses appropriate framework to analysis environment that are as defined:

McKinsey 7S model - This is a powerful expository tool which is used to accept the changing organisation culture and plans in order to make effective business decisions. In Unilever, this model is used by management to assess and monitor changes in internal situation of company and helps to identify what needs to be realigned in order to improve performance. The description of such model is defined below:

Shared value: This means super ordinate goal that involves set of values and aspirations in order to accomplish business goals. In context to Unilever, the share values is customer services and supply chain that can help to increase the productivity and selling. Therefore, marketing manager and customer service of such organisation address or resolve customers problem within 24 hours that processes to complete shared values.  Take Thesis Writing Help  from our experts!

Strategy: This means to achieve purpose of organisation and maintaining good performance. The main strategy of Unilever is to develop good relations with customers and organisation so sale can be increase. Another strategy of organisation is to increase its financial position by conducting research and providing products to people (Roelens, Steenacker and Poels, 2019).

Structure: This prescribes formal relationships between different positions and activities. Unilever is following network organisational structure that helps to connect people at every place. As this is multinational company, operating business in London and other countries by following network structure that helps to increase number of customers in order to attain the business goals.

System: This involves rules, regulations and procedure that helps to attain the organisational goals and objectives. The management and employees of Unilever company are following MIS system in which all information are involved properly and systematically that attracts customers and make decision to buy products and services.

Skills: This means qualities and capabilities that is required to complete the task and attain business goals. In Unilever, employees are learning, communicating, problem solving and customer relation skills that helps to complete task and increase organisational profitability.

Staff: For very organisation it is require that employees should understand what are the organisational goals and how it can be attain effectively. In Unilever, staff member are performing their role and contribute in business activities so goal can be achieved effectively.

Style: This is used to bring changes, pattern of action and implementation of plans by using effective leadership style. In Unilever, leaders are using participating leadership style that helps to participate in business activities and assist what need to do further. With the help of this strategy organisation can attain business goals (Martinez and Ferreira, 2019).

VRIO Analysis: In business organisation there is require many resources to run a business by evaluating ideas and thoughts that can help to take the competitive advantages. This tool states which resources are valuable, rare, inimitable and organised so, competitive advantages can be taken effectively. The VRIO analysis in context to Unilever is defined as:

Resources

Valuable

Rare

Inimitable

Organised

Financial resources

Yes

No

No

No

Brand image

Yes

Yes

No

No

Skilled employees

Yes

Yes

Yes

No

Supply chain

Yes

Yes

Yes

Yes

Valuable: This means sources which are valuable for organisation are valuable or not. In Unilever, financial resources, brand image, supply chain and skilled employees are considered as valuable that helps to increase profitability. Financial resources helps Unilever in investing in to external opportunities occurred in organisation. Skilled employees are valuable who processes to high productivity and create a great value for customers. Supply chain is valuable as it helps to increase the number of sale by reaching out to more customers. Moreover, brand image is also valuable that attracts number of customers and encourage them to get variety of products.

Rare: Financial resources are not rare for organisation because it can have in other company also that helps to run the business activities. In context to Unilever, brand image, supply chain and skilled employees are rare for other organisation that helps chosen company to take the competitive advantages (Bhargava, 2019).

Inimitable: Skilled employees are the part of organisation who understand the goals of organisation and put efforts to accomplish goals. In Unilever, skilled employees and supply chain are those resources which are inimitable for other organisation. This is creating opportunities for selected organisation and increases profitability.

Organised: It is important for company that its all resources should be organised and maintain effectively so goals can be attained effectively. In Unilever, supply chain is managing by management that helps to increase sale and profitability. In this organisation, managers are focusing on selling and distribution activity that process to take competitive a

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