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Strategic Management

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Report on Strategic Management for UNILEVER

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Introduction

The present report is having the focus on  UNILEVER  which is a  well-known brand in the  UK and as well as in the international market. The company has their trade in various types of products brands to sale(Haynes and Hillman, 2010.). UNILEVER is mostly dealing with the home care and personal care products. The company is making their ice cream which is known as Walls, and this is a market stream which is giving a big market. They were having growth of 4.1% in 2015. It is a challenge for them to manage their sale in each segment. Many companies have their existence in home merchandise and food product like ice cream. So they are having the risk of cover their market by some another competitive company e.g. NESTLE and PROCTER AND GAMBLE. Both companies have same products, and they are covering market and targeted customers of UNILEVER.

Company Strategy Application

Objectives of CADBURY

Targeted goals called as a target and this is related to a period. Every company has a target, and they make their strategy and policy to attain them in the given or pre-decided time. A company can set their objectives according to the mission, vision, value and strategy. CADBURY is a company which is making chocolates, and they have their targets in the sales. The company is having goals in the sales and customers satisfaction. They have competitors in their markets, so they have to attain their goals by implementing of their strategy (Terziovski, 2010.).  Most of the companies are using the both factors for making objectives, so they have to use their efficiency in their work to attain them anyhow. So this is based on the leaders that which type of goal consider for the company The CADBURY is highly focused on the product differentiation to enlarge their product range and to make more options for sales and profits for them.

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Vision and Mission of UNILEVER

The UNILEVER is having a simple concept of increasing their market and sale with growing the positive social impact of their activities and products. The company has several products which are used in hand wash and to wash clothes. So they are making their services for active social work by these commodities. Creating standards in their behaviour related to the customers and their products is a kind of value which the company is having in their job, and they are using this in the production line also. This is a corporate form of the statement of vision and value statement. Ashridge Mission Model is related to the mission, and it is helping to the company to make their decisions related to the betterment of production.

Vision and Mission of UNILEVER

The company is working mainly for two purposes which are stakeholders and profits so whenever the company get stuck in the difficult situations they have to think about these factors, and they have to make their decisions accordingly. UNILEVER is an undertaking their activities in the competition markets, so they have to make their decisions which are beneficial for stakeholders and company's profits(Leiponen and Helfat, 2010.). Every company has their existence to make profits with making their activities for targeted customers, so they have to take decisions which make a positive impact on the both factor. 

Competitive Environment Applications

Porter's Five Forces for CADBURY

Forces make a pressure to perform, and they are having a high impact on the production line and the company. The Porters five forces have a potential to explain that how these forces work in an organisation. This is having five fundamental forces which are works on the company and these are:

Entry of new competitors: Chocolates are having a full growth market, and it is a product which is having many customers(Helfat and Winter, 2011.). Many companies are trying to enter in this market, and it is decreasing the market share of the CADBURY.

Threats of substitutes: CADBURY has many popular brands, e.g., Kitkat and Dairy Milk. To use its popularity many local companies are making duplicate chocolates and selling it on the lower price so it is doing a risk of reducing sale for CADBURY. 

Bargaining power of buyers: Cost is not a matter for a consumer but the competitive products are going to negotiate Ford, their customers. The company is not having higher prices of their products, and they have an extensive range in the distinct price range, so there is no chance for bargaining for their consumers, but they have to concern about competitive companies. 

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Bargaining power of suppliers: the Raw material is a need to make products, and the CADBURY is having products like; milk and cocoa. The company is having a huge sale, so they have to purchase raw material in bulk and at the lower prices(Zhou and Wu, 2010.). Sometimes not possible for their suppliers to supply them immediately, so company have to make adjustments with the others.

Rivalry: Many companies are trying to cover the market share of the CADBURY so they have to aware about it and they have to make changes in their products to increase their taste.

Competitor Analysis

UNILEVER is having many competitors in the markets which are making same products. So they have to make a distinction in between their products. So they have to focus on their competitors and their similar products and try to create a difference in price and quality which can be considered by the customers. UNILEVER is having a competition with the Nestle in ice creams, so they have to use a strategy to make a difference in both(Freeman, 2010.).  NESTLE is having the same type of taste and price to cover the market.

Conclusion

The above-given report can conclude on UNILEVER and their competitive environment. They are affected by the rivalry, so they have to use it in a positive way and take it as a challenge for them to increase their efficiency of their product.

References

  • David, F. and David, F.R., 2016. Strategic Management: A Competitive Advantage Approach, Concepts and Cases.
  • Freeman, R.E., 2010. Strategic management: A stakeholder approach. Cambridge University Press.
  • Haynes, K.T. and Hillman, A., 2010. The effect of board capital and CEO power on strategic change. Strategic Management Journal. 31(11). pp.1145-1163.
  • Helfat, C.E. and Winter, S.G., 2011. Untangling dynamic and operational capabilities: Strategy for the (N) ever‐changing world. Strategic management journal. 32(11). pp.1243-1250.
  • Hess, A.M. and Rothaermel, F.T., 2011. When are assets complementary? Star scientists, strategic alliances, and innovation in the pharmaceutical industry. Strategic Management Journal. 32(8). pp.895-909.
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