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Strategic management of unilever company
Strategic management of unilever company
Unilever marketing strategy analysis
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The case looks at prescriptive strategy as applied to multi-product group of companies. Unilever is based in over a hundred countries where multiple products are being made in each. However, the market is mature which means that growth is stagnant and innovation is almost non-existent. In order to improve on growth and sales, the strategies that are needed look at how to come up with new products that have high profit margins and penetrate new markets. The prescriptive approach was used to come with a strategy to improve growth and profit. In order to improve on innovation, both the prescriptive and emergent strategies can be used since both support innovation. From the case study, not much profit was made when the ‘Path to Growth’ strategy was first implemented (2001-2004). The strategy was initially based on cost cutting. There was a need to also build volumes through existing portfolio of branded products through innovation and marketing. By focusing on increasing sales in developing countries where growth prospects were high and increasing investment in personal care products where profit margins were higher, it was possible to improve the profit portfolio. 2 In what way is the Unilever strategic planning process prescriptive? How, if at all, does it help innovation? There are different types of strategic planning that are currently in use, since this is a widely debated area of management. However, it is concluded that there are two main schools of thought, the prescriptive approach or the emergent approach (Lynch, 2012). As defined by Lynch, (2012) prescriptive strategic planning is the term given to a strategy whereby the objective of the strategy is defined in advance and the main elements are designed and develop... ... middle of paper ... ...gic_analysis_tools_nov07.pdf.pdf/ accessed: 15 Jan 2014 Recklies, D (2001) ‘The value chain’, Recklies Management Project GmbH, http://www.fao.org/fileadmin/user_upload/fisheries/docs/ValueChain.pdf accessed 12 Jan 2014 Riley, J (2012) Boston Matrix and Product Portfolios http://tutor2u.net/business/strategy/bcg_box.htm accessed: 5 Jan 2014 Saha, A (2011) Mapping of Porter’s value chain activities into business functional units, http://www.managementexchange.com/hack/mapping-porter%E2%80%99s-value-chain-activities-business-functional-units accessed: 18 Jan 2014 Tanner, J.F. & Raymond, M. A. Principles of Marketing http://catalog.flatworldknowledge.com/bookhub/reader/5229?e=fwk-133234-ch02_s05 accessed: 15 Jan 2014 http://www.brs-inc.com/models/model18.asp accessed: 10 Jan 2014 http://www.investopedia.com/terms/m/matureindustry.asp accessed: 10 Jan 2014
The primary problem discovered from analyzing the case is a poorly constructed marketing mix which doesn’t market Kingsford to its fullest potential. The marketing mix is comprised of the products’ pricing, advertising, production and promotional strategies. Kingsford has not changed their marketing strategy for the past several years. This is ineffective when the market is constantly changing and when new competitors are emerging. Kingsford has not designed each marketing mix component so that each component positively complements the others. This has been the main cause for Kingsford’s reduced growth rate. Secondary problems that have prevented Kingsford from achieving company objectives are the “seasonal business” approach and the heavy dependence on sales and merchandising
Eric Dunne Consulting Initiatives (2010) aimed at examining direct sales of fish by harvesters in an effort to provide directions for regulation and monitoring to accommodate the needs of harvesters and consumers and to protect public health
The value chain analysis can be examined as to whether they provide opportunities for differentiation or cost reduction. According to Porter, the value chain model is a useful analysis tool for defining a firm's core competencies and the activities in which it can pursue a competitive advantage by following one of the two strategies:
Porter (1997) suggests in order to gain competitive advantages in the changing business environment, it is essential to design a generic strategy for the business: product differentiation or cost leadership. The competitive strategy is determined at round 2, when recognised our rivals held whole product profile which was the product differentiation strategy. To differentiate our strategy from rivals for competitive advantages, Digby designed to imply the cost
If you think about it, sustainable seafood is a choice, a means to an end, and the end product itself. By now we all know that the bounties of the seas are not infinite. Since the middle of twentieth century, fisheries stocks have rapidly declined due to overfishing and irresponsible fishing practices, which are driven by an ever increasing demand for food, as well as poverty in coastal communities and apparent greed or neglect of those higher in the food chain. Research and common sense all lead to the conclusion that this grim condition will persist and worsen until we change how we think about seafood, how we catch or produce them, and the types of seafood that we buy.
There are various approaches towards a certain problem or strategy. Some approaches could fit in a given situation and not in another. Analytical/planned and emergent approaches have some differences as well as benefits and drawbacks. Analytical approach is that in which the vision, objectives and intentions of a firm are clearly stipulated and made known to the actors or staff as a way of realizing a certain outcome. It requires a clear vision, plans as well as formal controls aimed at enforcing them in a predictable environment. In this approach, external factors such as advancement in technology and change
Numerous definitions of strategy exist, in most circumstances strategy can loosely be explained as an overall plan of deployment of resources to ascertain a favourable position within a market (Zablah, Bellenger and Johnston 2004; Grant 1994, p 14). Further, imbedded in many successful organisations are strategies, the importance of which is to remain relevant in the market, and successful in the various attributes of business; profiteering, employee motivation, maintaining sustainable core competencies, effectiveness in operation, or efficiency in the conduction of operations. Therefore challenges involved in the formulation and implementation of a strategy can revolve around the overall external market, as well as internal
Although Unilever’s Path to Growth strategy involves all components of the general environment, two segments that are especially relevant are the global and sociocultural segments. A major strength of the company’s global environment is its geographic diversification of its major product markets. In 2003, Unilever had sales and marketing efforts in 88 different countries. The key is that it gave decision-making power to its managers in different countries so that they could tailor their products to the market’s specific preferences and consumers’ local tastes. Thus, it was the cross-country preferences of consumers that determined what products Unilever would carry. The global segment provides an enormous opportunity for Unilever. The case states that emerging country markets show the greatest potential for sales growth. Major competitors such as Procter & Gamble and Kraft Foods had sales in roughly 140 to 150 different countries in 2003, and Nestle, Unilever’s main rival, had market penetration in almost every country in the world. If Unilever is able to expand its operations into 50 or more new countries and concentrate its advertising campaign on consumer preferences, it could significantly increase its market share in the global economy.
Companies all over the world varies but yet shares a common challenge, that is to solve problem not only effectively and efficiently but also creatively. The P-O-L-C framework which stands for Planning, Organising, Leading and Controlling plays a major role in both the company’s survivability and success. The SWOT analysis looks at both internal and external factors that can affect the Starbucks’s performance. The purpose of this report is to define and analyse how Starbucks respond and should have respond to the change of its external environment on the cofee market,This report will also identify and disscuss how The P-O-L-C framework and can help starbucks to compete and reduce the loss of their failing peformance in the Australian market and how SWOT analysis helps to define some externalities that can be a threat to Starbucks.
ng1.htm The New Strategy and Why It Is New By Nick Demos, Steven Chung, and Michael Beck http://www.strategy-business.com/press/article/?art=9084523&pg=0 Conclusion Point: · Businesses which develop formal strategic planning systems will be more effective in achieving their objectives than those which do not --------------------------------------------------------------------- [1] Strategy, By Chuck Lucier and Jan Dyer [2] http://www.yourdictionary.com [3] Jack: Straight from the Gut (written with Business Week's John A. Byrne, Warner Business Books, 2001) [4] Business Policy - Strategy Formation & Management Action, Glueck [5] Ansoff, H. Igor: Corporate Strategy, New York: McGraw Hill, 1965 [6] Glueck, F. William, Business Policy - Strategy Formation & Management Action, McGraw Hill
1. Every organisation in both the public and private sector is in varying degrees dependent on materials and services supplied by other organizations (Johnson and Flynn, 2015:36-37). In your view, what role can supply play in determining an organization's strategic growth?
Michael Porter coined the definition for value chain analysis also called as value chain in the year 1984. He believes that the effectiveness
Case Study:Hindustan Unilever Limited. Hindustan Unilever Limited (HUL) is India's largest fast moving consumer goods company, with leadership in Home & Personal Care Products and Foods & Beverages. HUL's brands, spread across 20 distinct consumer categories, touch the lives of two out of three Indians. They endowed the company with a combined volume of about 4 million tonnes and sales of Rs.10,000 crores.
...ification as we move towards our destination IT architecture, and further strengthen our global market presence” said Neil Cameron, chief information officer at Unilever.
Strategy formulation is the process of establishing the firm's mission, goals, and choosing among alternative strategies or plans; it involves and implies that preparing the best approach to respond to the circumstances of a firm's environment, whether or not its conditions are known in advance; being strategic and tactical, then, means being clear about the management's aims; being aware of the company's resources, and incorporating both into being consciously responsive to a dynamic environment (SM, 2010). As nearly all businesses have limited resources, top leaders and management must determine which alternative plans or strategies will do well to the organization most; strategic management requires attention to the big picture and the motivation to adapt to circumstances, and consists of the following aspects: