EVALUATING THE ORGANIZATION'S STRATEGY

Evaluating the Organization's Strategy

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Evaluating the Organization's Strategy

Executive Summary

Unilever is the multinational consumer goods manufacturer. The paper will critically evaluate the strategic approach of Unilever. This critical evaluation is based on SWOT analysis and BCG matrix. Customer loyalty and innovation through technology are key strengths and strive to convert threats into opportunities. BCG matrix provided a detailed review about product line based and analysis Unilever strategy.

Table of Contents

Executive Summary2

Table of Contents3

Introduction4

Discussion4

Analysis and Critical Evaluation of Strategic Position5

Analysis Strategic Direction8

Critical Evaluation11

Conclusions and Recommendation11

References13

Introduction

Unilever is a British-Dutch multinational organization operating all around the world. It is one of the biggest consumer goods companies with a large number of products. In United Kingdom, it is operating since 1885, when Lever brothers come up with its first packed soap. It is a dual listed company, as it consists of Netherlands and Unilever PLC in London and Unilever N. V. in Rotterdam. Unilever has a diverse product lines include personal care, food, refreshment, and home care. Unilever UK headquarter is in West Sussex and employed about 1,029 individuals in United Kingdom.

Unilever financial indicators highlights its good performance; for instance in 2011, the underlying sales growth was about 6.5 percent with a sales volume of 1.6 percent, and operational marginal percentage of 14.9, as well as free cash flow was about € 3.1 billion. Unilever turnover regardless of a negative impact of currency that was 2.5 percent showed an increase of 5 percent. Unilever PLC by the end of 2011, encompassed a market capitalization of £ 27.3 billion, and it is among eighteenth largest company that is listed in London Stock Exchange.

Discussion

The business model of Unilever emphasizes on delivering sustainable growth. For example, provide people with affordable and safe water, nutritious meal, and encourage people to realize their personal beauty potential. Unilever business model aims to deliver growth, whether in the form of equitable or sustainable growth. The key indicators of Unilever strong performance include people, brands and sustainability that provide the company a competitive edge. The business model stresses on strengthening brands in order to boost profitability, and through innovation and promotions and advertisement can reduce cost of running. Unilever's business model revolves around four components that include brand and innovation, great people at a great place, sustainable living and business performance. The business model is designed to achieve sustainable growth in terms of profitability, competitiveness, consistent and to fulfil major environmental and social needs (Gerry & Kevan, 1999, pp.500-1100).

Analysis and Critical Evaluation of Strategic Position

According to Miles and Snow (1978, p. 29) organizational strategies can be classified into four types such as analyzers, defenders, prospectors and reactors. Unilever pursued with prospectors organizational strategy. Mainly because of market dimensions, Unilever continually strive for market opportunity through brand innovation, and frequently come up with new and creative responses to emerging trends in the business environment. For instance, Unilever in order to give emphasis to sustainable and environment development to cope up with changing demands and trends ...