- Q: Unilever now requires you to, thoroughly; review the strategic options available to it. The review may include those options currently being discussed in the media, or options not currently being considered (Refer pages 5 to 7 Unilever case study 1)
Unilever is one of the biggest global brands in the FMCG segment that has its headquarters in London. The global economic slowdown seems to have the FMCG major contexts to some extent. It has introduced some new business strategies for maintaining an advantageous step ahead of its competitors, crowd and other rival companies and organizations within the global markets. In the 1930s, business developed and fresh ventures were launched in Africa and Latin America. Unilever is interested to join the emerging markets overseas by providing wide variety of goods that will not only aid them to venture into the international market but also to venture into the local. The company has introduced a new strategic measure to challenge the local and other existing brands that have lower priced products. The company aims towards providing a variety to customers from different sections in the society. This will only be possible through incorporating new and better options in the use of global brands which promise better quality products at the same or reduced rates in respect to other manufacturers and vendors. Unilever should think globally and employ global strategies which will help them to market similar products of the same brand name and same quality to all the overseas markets. It will prove to be profitable to the FMCG major. As most people are globally connected by different means of communications such as cell phones and the internet it will help them link the global customers under the one common brand that is available globally and with the quality being maintained globally in all the markets. This will help them to launch and establish a global brand image there by increasing productivity and profitability. (Jones, 2005) As per their present global objectives, the organization is planning to bring common and basic requirements which are accepted globally across all the sections within the society in an attempt to streamline and ensure availability of all the daily requirements under the FMCG categories under one roof and entitlement. It is by this only that they can achieve their present goal and can set new targets as well for proper growth and development.
- Q: critically evaluate the strategic potential for Unilever, its subsidiaries, brands and wider partnerships - justifying your findings and recommendations, fully. (Refer pages 1 -2 Unilever Case study 2)
Unilever has effectively been able to capture the global markets with its existing strategies and plans, as they are considered to be some of the best business strategies across the industry. They have successfully employed their business strategies in most of their business ventures that have successfully resulted in growth of their revenue and profits. Unilever has been successful in their global ventures mostly because of the presence of their multiple profitable subsidiaries. They have multiple brands and flagships under their supervision unlike their rival majors who mostly specializes in specific FMCG segments like toiletry and cosmetics like the well-known brands of Procter & Gamble and L’Oreal. Thus it helps them in optimising their profits as well compared to their competitors. (Jones, 2005) The cross market subsidization strategies taken up by them have been of much success as well. They are now entering the new emerging markets with the target to build a customer base. This has helped them in their growth as well even in the Indian markets. The concept of the long established local roots also has proved to be very effective for the market capture and increase of sales by the Unilever by employing local and retail tie ups within the specific regions thus maintaining the edge against their rivals who have to start afresh to get a good share of the emerging markets. Through the tie ups they can easily deploy their market strategies and ca effectively a market overview as well thereby tuning their already existing strategies to reap more profits out of them. As businesses are affected by globalization, more attention has been shifted to different logistics. It explores the global in depth logistics, starting with an overview that provides different work contexts. It has detailed global developments on strategic logistics, using a up- bottom approach. This analyses the product to market effects, strategies on character formulation and logistics evaluation strategies at organization level or units. (James C. Cooper, 1993)
- Q: demonstrate the strongest strategic approaches and to draw upon recognized theories, models and approaches, in order to justify your recommendations (Refer Pages 13 to 20 Unilever case study 2)
Unilever has been a leading player in capturing the global FMCG market with a true vision and goal of providing a sustainable way of living to the common place. They have effectively adopted various market strategies to guide them to success. Similar to Unilever there are some very well known strategies that are already in the industry under practise. We have tried to mention some in this paper for our study of the same. The lesson learnt from failures leads to success refers to the strategies that help to recognise ineffective strategies in the business and thus reviewing the same under expert supervision so as to identify the drawbacks and flaws in the business strategy and then modify them as per the business requirements making it a big success eventually. Thus learning from the past mistakes and rectifying them for future. One of the main business objective and strategies adopted across the industry is the introduction of the brain storming and the innovation techniques. In this process the innovation is encouraged in all the sections so as it can provide an overall organizational improvement with a common objective of providing better quality products and to provide better customer satisfaction at a competitive price or rate. (Qvint, 2009) Integrating the profitable sales process has been effectively proved as a better strategy to improve the client satisfaction rate and to improve the client base as well. Organizations should consider and identify their profitable sales and related process and should maintain the drive of improving the services in a better way so as to increase the quality of the sales process and thus acquiring new clients as well. Unilever has introduced its business strategies which are restructured as per the company policies addressing the required necessities of the company from the already existing strategies. Recognitions and discusses nonstop improvement and burst through supply base and sourcing tactics to get supply base development. (Trent and Callahan, (1993)) However, global manufacturing tactics give the greatest competitive benefit when they are supported through key supplementary logistics and buying activities. (Birou, and Taylor, (1993))
- Q: Its strategy team is far more interested in you demonstrating the application of suitable strategic models, theories and approaches to the strategic route(s) that you will be recommending – a good submission will be expected to apply theory, rather than re-state facts or opinions.(Refer pages 7- 11 Unilever case study 4)
Unilever is a well-known global FMCG brand that has wide range of products ranging from toiletry to skin care. They thus have successfully deployed several strategic plans and programmes, towards achieving their targets and financial goals. They need to employ new and better strategies and tactics so as to increase their sales resulting in increasing their revenues, thus getting closer to their vision of doubling their business. Unilever should try to focus on conducting effective market surveys regularly. This will help them to know the consumer and the market demand. They should evaluate their weakness and need to modify their business strategies as well. And for the positive reviews, they should even try to make and introduce new improvements into their existing process for better customer satisfaction. This will help them to keep a record of improving their goods as well and increase their sales methods thus growing their customer base and produce more profit. (Quinn, 1980) Unilever has a wide range of products therefore it is very important for them to keep track of the products that are being introduced in the market by their rival brands. They should keep track of their products and should review them trying to improve the product quality. They should try to get an insight of the competitive strategy as well. Unilever should keep focused on their goal keeping track of the rival policies as well. They should indulge their business analysts in understanding the present market trends and the strategies that are adopted by their business rivals as well so as to maintain their market share for their products. They should regularly keep a track of the same and should modify and introduce new strategy plans. Objectives are to scrutinize the position of current logistics and buying practice as they relate to adapt the global net and to analyze the performance of these main actions as they support global functions. (Birou, and Taylor, 1993)
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