STRATEGIC MANAGEMENT PLAN

LO1 Analyze the impact and influence which the macro environment has on an organization. Unilever vision and the mission statement are the basic foundation in the success of the company’s consumer product. The vision is to make sustainable living commonplace. This is the best long-term way for company’s business to grow. Which give emphasis on sustainability among the product consumer. Unilever is working to reduce the greenhouse gas (GHG), water and waste impacts across their value chain, from the sourcing of the raw materials to the manufacturing process and to the consumer use. Unilever is also working to source our agricultural raw materials sustainably. c) To enhance livelihoods for millions.  Unilever wants to deliver both business growth and positive social impact by embedding human rights across the business and are using the product brands to advocate important social issues to our consumers.

The strategic management plan is a document that is to communicate within an organization the organization's goal set of priorities, strengthen operations, configure resources and ensure that all the stakeholders and all the employees within the organization are working towards achieving the common set goals. Strategic direction is the course of action that will lead to the achievement of the set goals of the organization’s strategies Different strategic planning techniques. The following are some of the techniques used by Unilever to plan a strategy 1) Benchmarking. Unilever can carry out a benchmarking exercises to compare their metrics with their competitors in the market, so as they can devices better ways on how to outdo their competitors. For example, a benchmark to compare the kind of technologies and the cost used in innovation by their competitors.

Business plan. Environmental analysis. Unilever does the environmental analysis to identify the external and the internal elements which affects the company performance. Organizations conduct environment analysis more frequently because there are many elements that change day by day and that affect the company. Most of the analysis tools used for the environmental analysis is PESTLE. a) Political which take the country’s current political situation. These are the legislative factor that when they change they affect the business. The factors include product regulation, employment regulation, competitive regulation among others. f) Environment. The analysis of the physical location of the business. Some of these factors are a geographical location, climate, and weather, waste and disposal laws etc. • No suggestion on solving disagreement in the business. Example of SWOT analysis in Unilever The SWOT analyses are done to determine whether a new product can be introduced in the company portfolio Strengths • The good relationship with customers • Good internal communications between the stakeholders • Successful marketing strategies of Unilever • Reputation for innovation Weaknesses • Market research data may be out of date • Cash flow problems • Holding too much stock • Inappropriate record keeping Opportunities • Similar product exist in the market are not as reliable or are more expensive • Loyal customers to Unilever product • Customer demand has asked sales staff for similar services Threats • Competitors have a similar product in the market • Competitors have launched a new advertising campaign for their products • Competitor opening outlet shopping center in the nearby area.

LO2 Assess an organization’s internal environment and capabilities Strategic Capabilities refers to the business ability to successfully implement competitive strategies that allow the company to survive and remain in the market and continue to make a profit. The component of the strategic capabilities are: Resources (What the company have) Competencies (what the company do well) Machinery, Product, Raw materials, computer systems, databases Physical Ways of achieving efficiency, productivity, flexibility, marketing Balance sheet, cash flow Financial Ability to raise funds, manage cash flow, creditor, debtors etc. Managers, employees, suppliers, customers Human How people gain and use experience, skills, knowledge Figure 3: Components strategic capabilities There are four criteria in which capabilities can be assessed in terms of achieving a basis for competitive advantage: a. Competitive advantages cannot be sustainable if there is a threat if alternative.

Internal environment analyses Internal analyses of strengths and weaknesses focus on the internal factors that give Unilever certain advantages and disadvantages in the process of meeting the need of the target market. Areas of analyses areas are used in the consideration of the internal factors affecting the company. Resources: Profitability, sales, employees’ capabilities, product portfolio analysis. Capabilities: Goal. • Expertise in strategic control. • Overall company management/ resource management. Product Design • Design capabilities Marketing • Bland management and promotion. • Understanding of and responsiveness to market trends Sales and fulfillment • Effectiveness in promoting and executing the sale • Efficient and speed of fulfillment • Quality and effectiveness of customer service LO3 Evaluate and apply the outcomes of an analysis using Porter’s Five Forces model to a given market sector Porter’s Five Forces model This model is based on the concept that there are five factors that determine the competitive intensity and attractiveness of the market.

The analyst uses this model to tell whether the new product and services are products in the market are profitable (Nguyen, T. This is where close substitute products exist in a market, the buyers can take the substitute product in the market 5. The threat of new entry. Profitable markets attract new entrances, which reduces profitability. Strategies to improve competitive edge Unilever is a company that deals with a wide range of product and faces a great competition in the market from other companies which produce alternative products. Unilever daily is coming up with different ways to remain unique to define their competitive edge. In the marketplace their many suppliers serving the customer, this create a competitive market for the companies which are producing alternative products in the market. A competitive advantage is an advantage a company has gains over competitors gained by offering consumers greater value in product and services, either by means of lower prices or by providing greater benefits and service that justifies higher prices.

Porter’s Five Forces model Porter suggested four generic business strategies that the company can adopt in order to gain a competitive advantage over the other companies a. Cost leadership. This strategy focuses to become the lowest cost producer in the industry. Bowman’s Strategy Clock In the open market there many customers and company that are supplying the product creating a competitive market, customers have a wide range of variety of products to choose from, Putting the company in a position to device ways of meeting the customer need so as to make sales of their product. Potter maintained that company in the market compete either by price, perceived value, and market segmentation. Bowman extended the potters three are into eight (Hales, G. Mclarney, C. Figure 5: Bowman’s Strategy Clock The eight positions in Bowman’s strategy clock are low prices/ low value, low price, hybrid (moderate price/ moderate differentiation), Differentiation, focused differentiation, increased prices/ standard product, High price/ low value, low value/standard price.

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