STRATEGIC MANAGEMENT

Table of Contents
EXECUTIVE SUMMARY.............................................................................................................1

INTRODUCTION...........................................................................................................................2

LO1..................................................................................................................................................3

Evaluating the position of Unilever in the current market..........................................................3

Critical analysis of the effects of existing plans on Unilever......................................................4

LO2..................................................................................................................................................5

Critical exploration of the relationship between, corporate, business and operational strategies
.....................................................................................................................................................5

Application of strategic models and tools to develop strategic options for Unilever..................6

Evaluation of strategic options for Unilever................................................................................8

LO3..................................................................................................................................................8

Creating a relevant vision, mission and strategic goals for Unilever..........................................8

Proposing a suitable structure for Unilever that fits a strategic plan...........................................9

Creating a resourced strategy implementation plan...................................................................11

LO4................................................................................................................................................13

Applying force field analysis to effectively distinguish forces of change.................................13

Critical evaluation of different change management models....................................................14

Identifying relevant leadership and change agent skills to implement a strategic change in
Unilever.....................................................................................................................................16

LO5................................................................................................................................................17

Developing a monitoring and control system for implementing strategic plans.......................17

Designing key success indicators to monitor the implementation of the strategic plan............18

Distinguishing potential risks during implementation...............................................................19

Reviewing the effectiveness of the strategic plan......................................................................20

CONCLUSION..............................................................................................................................21

References......................................................................................................................................22
EXECUTIVE SUMMARY

This paper is presented to analyse the importance of strategic management and the procedure of
implementing it. It shows a detailed process of how the management can make changes to
strategy and manage it so that it can prove to be beneficial to the organisation. It also shows the
monitoring and controlling of the effects of strategy changes. This whole report is prepared
using Unilever Plc. It is multinational consumer goods producing company based in Britain. It is
one of the biggest organisation of the world with over 400 brands. they also sell their products in
195 countries and have over 155,000 employees. Here we will analyse Unilever’s current
strategy and how they can make changes to improve that. Also, discussion on how the effects of
changes can be smoothened is discusses here.

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INTRODUCTION

Management is a key part of every organisation in the world. Strategic management refers to the
continuous planning, analysing, monitoring and assessing all the necessary items that are
necessary for the organisation to meet its desired goals (Freeman, 2010). This basically provides
a complete blueprint of the procedure using which the company can reach its objectives. This is
extremely crucial for any type of business as a good strategic management policy can provide a
very good competitive edge in the market competition. This paper analyses the importance of
strategic management and evaluated the strategic management tools. It will also show the
implementation, monitoring and controlling of a strategic management plan. The organisation
chosen for this paper is Unilever, a multinational consumer goods company based in London,
UK

Figure 1: Unilever

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LO1
Evaluating the position of Unilever in the current market

Unilever are a massive company with a strong position in the market and a very customer-
oriented mission, vision and values.

Unilever is a British company based in London that started its journey back in 1929 through the
merge of Mergarine Unie and Lever Brothers. Today its one of the biggest consumer goods
producing company with a line of over 400 brands that are being sold on 190 countries. 13 out of
these 400 brands have generated over 1 billion euros in the previous year. Some of the famous
brands are Axe, Dove, Lux, Lipton, Sunsilk etc. They have over 160 thousand employees all
over the globe and have generated a revenue of almost 52 billion euros in the previous year.

Unilever started its journey with a mission of adding vitality to life, to feel out the daily needs of
the people to make them look and feel better and to enjoy life more from life (Mooij, 2010). This
mission statement clearly shows their commitment towards the consumers. It also helps the
customer to know what value they can expect from the company. This also specifies their
strategic management of Unilever to the employees and the consumers.

Unilever has a vision of ensuring sustainable living throughout the world. They believe that the
this is the best way for them to grow. Their vision indicates to the constant will of improving and
improvising their products. Their vision also puts strong emphasis on sustainability which also
encourages the customers and competitors to understand the necessity of sustainability. This
vision helps to shape up the strategic management of Unilever (Lenssen & Smith, 2018).

Unilever puts a lot of emphasis on maintaining the highest standard of behavior towards all the
consumers and employees (D'Souza, 2018). Here are some of the core values of Unilever,

 Operating with integrity all the time

 Have positive effect on the society with continuous improvement
 Spreading out their ambitions among the public
 Maintaining a successful relationship with everyone involved and conducting necessary
tasks together .

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Critical analysis of the effects of existing plans on Unilever

The extreme popularity of Unilever and its products shows that their current strategies have been
extremely successful and effective.

With a mission of improving people’s lifestyle and a vision of sustainable world, Unilever has
been successfully managing their customers and market competition successfully. A big reason
for that is the proper implementation of strategic management within the company. Unilever has
often been a user friendly organisation and their goals have always been positive for the society.

Unilever approaches the customers through creating a view of improvement in them. Unilever
shows them a way to lead their life in a better manner. They show their customers how using
their product can fulfill their daily needs and make them look better. And with proper promotion,
their activities have been immensely successful. They have launched 400 different brands of
various nutrition, healthcare, cosmetic products. They are operating in over 195 countries
successfully (Mwololo, 2018).

Unilever has a very strong customer base all over the world. They have seen 13 of their brands
generate a revenue of more than 1 billion each in the previous year, which is significantly higher
than the previous years. They have generated over 52 billion revenue last year which 1 billion
more than the year before. The amount of assets has almost doubled in just one year period. In 44
different countries they are known as the most desired employers. Due to this huge popularity
and revenue, they are able to invest more behind their innovation and introduce new products
every once in a while. There share prices are also known for providing solid profitable outcomes
for the investors. All these positive cashflow is possible due to the extreme fame of Unilever,
which is an outcome of the incredibly well-planned strategic management system implanted in
the company (Mwololo, 2018).

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LO2
Critical exploration of the relationship between, corporate, business and
operational strategies

The corporate, business and operational strategies are closely related to each other and it is
essential to maintain proper alignment between them to gain success.

The proper maintenance of business requires the proper use of strategical management. Strategy
is very important for any sort of business. Poor strategy leads to poor management and losses.
Now these strategies can be divided into various categories based on the size and nature of the
business. A few key categories are corporate strategy, business strategy and operational strategy.

The corporate strategy is the highest-level strategy and it simply takes the overall decisions of
the company. It is used to determine the goals and objectives of the company. This strategy is
also used to determine the long-term vision of the company and where it wants to see itself in the
future (McCabe, 2010). A proper corporate strategy gives the company a big boost and keeps it
ahead the competition.

Business strategy is another key factor for the business. This strategy is basically used to
determine the ways using which the goals of the company can be achieved. It is a way of
drawing the path towards success in the market. This plan can give the companies a big push in
their goals of achieving profit and keep them ahead of the competition. Thus, this is extremely
important for the companies to ensure that they have proper business strategy in place before
they decide to start a new business in the market.

Operational strategies are used to plan how the company will complete all its operations. This is
the lowest level of strategy and is carried out to successfully complete different tasks within the
organisation. This is very important for the business as these operations define how the company
is moving along the market and how far is it going to meet its goals (Slack, 2012).

Now all these strategies are related to each other. The corporate strategy creates a goal and vision
for the company to achieve. The business strategy plans out the ways and tasks that the company
needs to complete to reach their goals. The operational strategy helps to plan the ways of

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completing these tasks. Unilever has always maintained a strong relation between these
strategies and this has really helped in maintaining their success.

Application of strategic models and tools to develop strategic options for

Unilever

Among different strategic models, SWOT analysis is extremely helpful and this tool has been
applied in this analysis.

Strategic models and tools are an amazing way of analysing the current strategy of a company
and finding ways of making it better. These analyses often show what the company is lacking or
how can it gain a competitive advantage in the market. There are various tools that are available
for this type of analysis. Among them, a widely popular tool is the SWOT analysis. Here, SWOT
stands for strength, weakness, opportunities and threats. This tool shows the strong points and
the weak points of the company. It also gives an idea of the opportunities the company has in the
market and the threats that it may face while operating (Sarsby, 2011). Using this, the companies
can find holes in their strategies and make it stronger. Now we will do a SWOT analysis of
Unilever to recognize its strategic position in the market,

Figure 2: SWOT analysis

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Strength:

 They have a wide network of customers in over 190 countries

 They have a large selection of brands
 Their range of products is extremely diversified
 They invest a lot of resources in their R&D department
 Quality customer-oriented innovations and production
 They have strong distribution networks and affordable prices

Weakness:

 They have some huge competitors in the market along with local competitors in every
country
 Their products are often easily replaceable with local cheaper products

Opportunities:

 They can improvise their products to match the modern trends

 They can introduce more healthy products as people are getting more health conscious
 They can maintain their environment friendly approach for getting more customers
 They can use their resources to do heavy online promotion to get more attention and
make their products available online

Threats:

 The decrease in consumer income can be harmful to the sales of Unilever

 Operations in different countries may result in unstable production and marketing
 Newly growing competitors who are offering products at a cheaper price

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Evaluation of strategic options for Unilever

Unilever have a very good strategy. But they can certainly make some improvements to that and
make it more customer friendly.

From the SWOT analysis, we can see that Unilever is in a very good position in the market. It
has a may strong factors that gives it a massive advantage over its competitors. However, there
are quite some room for improvement. There are also a few opportunities that they can use to
their advantage. To avail those, they can make some small changes to their current strategy.

As we know, they have some giant competitors such as Nestle, P&G etc. To stay above them in
the market, Unilever should bring on more innovative and user-friendly products to the market.
They should also put emphasis on providing products online as many customers prefer online
shopping. Their price ranges should also vary based on the income of the people. They should
keep a tab of their local competitors as well. They should undertake more environment friendly
projects and focus on making their surroundings greener. They can start a campaign of planting
trees every now and then and include free healthcare and nature friendly tips with each of their
products. They can also open more offices in different countries and instead of collective goals,
use their corporate strategy to create specific goals and visions for specific countries (Mooij,
2010). These are some of the strategic options Unilever can implement to get a competitive
advantage and earn more revenue.

LO3
Creating a relevant vision, mission and strategic goals for Unilever

Unilever can work on improving their strategy by making changes to their mission, vision and
goals and making them more customer friendly.

Unilever has been successfully operating in many countries and has been simply brilliant at their
job. They have a strong vision and clear goals which has enabled them to achieve success
throughout the globe. However, in recent times due to so many adversities that the people all

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over the globe have faced, their mentality and thought processes have changed massively. Thus,
the mission, vision and values need to change accordingly too.

During this adverse period, the most effected sector was the economic sector. Most of the
companies faced losses and many people loss their jobs. Those who still had the jobs had to take
pay cuts. Thus, income of people has gone down a lot making them economically and
emotionally vulnerable. Thus, Unilever should employ a new mission of providing the best
service at the lowest possible price (Lenssen & Smith, 2018). They should continue to add
vitality and value to life but in a cheaper and customer-oriented way.

They should maintain their vision of promoting sustainable living. They should also work to
generalize recycling and using renewable sources for production and spread it among the people.
Thus, they should have a vision of using maximum renewable and recycled sources of
production to spread sustainability of living.

From their values, it is clearly visible that Unilever puts a lot of emphasis on their customers and
the relationship with them. This is very commendable. Thus, they should maintain it. However,
they need to ensure that they put more emphasis on giving customers the best service at minimal
price. This will ensure that more people will buy their products in different countries worldwide
(Freeman, 2010). Thus, their strategic goal should provide more at lesser price.

Proposing a suitable structure for Unilever that fits a strategic plan

Among the various options that Unilever has, it should focus on using matrix structure as it will
be most effective for their huge organisation.

Unilever, being a large company and having so many employees worldwide, need to choose a
suitable structure that will fit with their business strategy. There is a variety of business structure
that they can choose from. They can go for a functional organisation structure where they will
allocate people with similar tasks in the department based on what their specialty is (Shenkar &
Luo, 2011). However, this can make their job monotonous and also create less opportunities for
innovation.

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Another approach they can go for is the divisional structure. In this structure workers are divided
into different groups based on different products. This is very helpful for companies that produce
a large number of diversified products. It helps to keep a better eye on production and reduces
confusion. However, continuously working with same product may cause monotony and may
result lower employee retention.

Unilever can also a flat structure which is different than other structure, here, the management is
decentralized and the communication is more direct with less bureaucracy. This can be very
effective as it saves a lot of time and hassle. It also creates room for innovation and employees
get more contribution in decision making. However, this can also create a lot of confusion which
may lead to poor management and production (Burford, 2012).

The most suitable structure for Unilever should be the matrix structure. This is basically a mix
between functional and divisional structure. this system divides employees based on their
specialty and further divides them into smaller groups. Here, employees are held more
accountable. This increases their productivity and creativity. Although, it is a very complex and
time-consuming system, a company like Unilever should have no trouble managing it. Thus, this
will be most suitable structure for their strategic operations.

Figure 3: choosing business structure

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Creating a resourced strategy implementation plan

To implement the strategy, a plan is required. Unilever can use the steps described below to plan
the implementation process.

Now that Unilever have a new strategy planned, they need to ensure that implement it properly.
This is the toughest part of the strategic management process and requires a lot of resources and
effort (Huber, 2013). But if it is executed properly then the company will enjoy prolonged
success in the future. Here are a few steps that they can take for strategy implementation,

Evaluating and communicating strategic plan: this is the first step of implementation. The
planned strategy must be compared with the organisation vision, goals and budgets in this step.
Then the management of Unilever must convey this strategy to the general employees and make
sure they also share the same interest as the company.

Developing implementation framework: this is where the management will create a guideline
to aid the strategy implementation. To do this, Unilever must link all the divisions in the
company, formulate execution plan, assign tasks and analyze the workforce structure to know if
it is capable of implementing the strategy.

Developing implementation aiding policies: also known strategy-encouraging policies, this is a

step where different policies are created in order to facilitate the implementation. Unilever can
do this by tracking, monitoring and managing performance and creating a feedback service
which can be later used to evaluate the strategy.

Budgeting and allocating resources: In this step, the resources will be distributed among the
various division to complete the task that they were assigned to do. This system can further be
improved by Unilever through creating monitoring system which will ensure departments are
working more efficiently and are not overspending the resources.

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Discharging activities and functions: this is the final implementation step. Performing this
successfully will ensure that Unilever’s new strategy has been put into action and the company
will follow this this strategy onwards.

Figure 4: Strategy implementation

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LO4
Applying force field analysis to effectively distinguish forces of change.

The force field analysis can point out the forces or factors that can be manipulated to bring a
change within the organisation.

The force field analysis is a model for change management which was developed by Kurt Lewin
in 1951. It is a widely used powerful decision-making tool that lets the management to visually
analyse the changes. This model shows the driving forces and the resisting forces and the balance
between them. To make any changes, this balance needs to be disrupted. This can be done by
strengthening one of the balancing forces more than other one (Miller, et al., 2010). This is a
very handy model as it enables the company to smoothly make changes in their organisation
without causing any disruptions.

Figure 5: Force field analysis

Now let’s apply the force field analysis tool to Unilever to determine the forces for and against
changes in the company,

Driving forces:

 The constantly evolving markets that demand continuous improvement from the market
 The introduction of new technologies that offer to make the business smoother and more
efficient
 The growing competition that forces the company to be more innovative
 The goal of achieving more profit and generating better returns for the shareholders

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  The political or legal changes that influence the operations of the company
 The changing mindset and opinion of general consumers regarding the use of specific
products
 The changing economic condition of the world as income of people go down

Resisting forces:

 The fear of failure that may cause the company to not opt for a change
 Lack of required information to cause a change
 The employee’s inability to welcome the and embrace the changes
 The rigid structure of the company that may not work well with the changes
 Previous unpleasant experiences of change which cause hesitancy among the
management

Critical evaluation of different change management models

There are various change management models designed by researchers. Unilever can take a look
at these and choose the suitable one to implement the changes.

To continue the growth in business, change in very important. In the constant improving world, it
is very important to evolve quickly to ensure that the interest of the customers remain intact.
Here we will analyse the different tools that can be used to potentially analyse and employ the
changes required in Unilever,

Kotter’s change management theory: this is the most popular model of change. It has 8
different stages that focus on the employee’s reaction to change (Kotter, 2012). The 8 stages are,

 Increasing urgency
 Building team
 Getting correct vision
 Communication
 Moving things

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  Short term focus
 Embracing change
 Not quitting under pressure

McKinsey 7-S Change Management Model: One of the oldest and a very popular change
model. This model focuses on 7 different categories that a management must keep in my when
performing a change (Michalski, 2011). These are,

 Strategy
 Structure
 Shared values
 System
 Staff
 Skills
 style

ADKAR Change Management Model: This model is very helpful for employees who find it
difficult embrace changes. This model helps to find out the gaps in management and shows
where improvement is needed (Voehl & Harrington, 2017). ADKAR model stands for,

 Awareness of the need for change

 Desire to bring change
 Knowledge to drive change
 Ability to embrace change
 Reinforcement to ensure future implementation

Kübler-Ross Five Stage Change Management Mode: This model is very important as it puts
the most emphasis on employees. It is made of 5 stages that an employee may go through during
the changing period (Kübler-Ross & Kessler, 2014). They are,

 Denial
 Anger
 Bargaining
 Depression

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  Acceptance

Lewin’s Change Management Model: this one we discussed previously that focuses on the
driving forces for the change and the restraining forces against the change. This mainly has 3
stages. They are,

 Unfreezing the driving and restraining forces

 Making changes to the forces
 Refreezing the forces (Altman, 2017)

Identifying relevant leadership and change agent skills to implement a

strategic change in Unilever

Leadership and change agent skills are very necessary to ensure that every employee is
embracing the changes.

Making strategic changes in a large organisation is very hard and requires a lot of effort. One key
quality it needs is proper leadership in the company to execute the change. This is very essential
as this leader will lead others into the change and help everyone to embrace these changes in
their work (Schoja, 2016). Here are a few relevant leadership skills that are helpful in
implementing strategic change,

Ability to delegate: a very crucial part of team management. Assigning the task to execute
changes accordingly ensures successful implementation and this can be done via proper
delegating.

Careful communication: Proper communication ensures that there is no confusion and the
whole change process is moving along smoothly. Thus, this is a very important skill

Radiating confidence: this is also very crucial as it helps to spread the positivity among the
employees and they also start feeling confident

Customized approach: Leaders need to have customized work skills based on the requirements
of the change and the employees
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Being Honest: It should be every leader’s key skill to maintain honesty in workplace so that they
can lead by example

Strategic thinking: this is also very crucial for implementing and embracing changes.

Change agents are the people who work to incorporate and manage the changes in an
organisation. They are hired to transform the management of the organisation. Change agents
can be both internal or external but their roles and required skills remain the same (Biech, 2011).
here are few of the skills required for change agents to implement changes,

 They must have a flexible mindset and attitude

 They need to have diversified wisdom regarding the changes
 Their main priority should be the end results
 They need to own up their task and be responsible for outcome
 They must have good listening and anlysing skill to tackle adversities.

LO5
Developing a monitoring and control system for implementing strategic plans

Monitoring and control system are very important for strategy implementation. Unilever can
employ external change agents for conducting this job.

To ensure that the strategic plans are being successfully implemented throughout the
organisation it is necessary that the management employs a monitoring and control system in the
company. It is very crucial for organisation to ensure that every employee and other people
associated are working to embrace the new strategy in their work (Lenssen & Smith, 2018). This
will make sure that the employees are on their way to achieve organisational goals. This can be
done in various ways. For example, the company can set out a financial control plan with
budgets, ratio analysis and audits. This will specify the goals of the company. Also deploying
financial budgets will show if any divisions of the company are underperforming. Then based on

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the comparison, the management can take necessary action that will remove the inefficiency
from that division of the organisation.

Another approach they can go for is the operational approach. Here, they can select individual
goals and objectives for individual division and personnel. A proper implementation of this will
ensure that everybody is devoted to their tasks and giving their maximum effort. Also, rewards
can be provided to the employees if the organizational goals are met. This is a very effective way
of motivating the employees and increase productivity.

To monitor and control the strategy implementation, Unilever should hire individual change
agents to work in different department of the company. Their consultancy will ensure that the
employees are fully committed to the change. They will also be able to smoothen the path of the
change. These change agents will report only to the top management about the progress.
Unilever should also let their employees have a say regarding the changes. This will make the
employees more comfortable about the changes and they will be able to embrace it quickly.

Designing key success indicators to monitor the implementation of the

strategic plan

Key success indicators are important to analyse if the implementation is being successful or not.
Thus, companies must ensure they have the right indicators.

The monitoring system is very helpful for knowing if the implementation is working the right
way or not. However, their must be some sort of success indicators that can be used to monitor
the strategic plan implementation (parmenter, 2010). Some of the indicators can be,

Productivity of the company: if the company becomes less productive after new strategy
implementation then it can be understood that the employees are not taking the changes very
well and are not working with absolute dedication in the company. Then companies can take
necessary steps to mitigate the situation.

Employee behavior: unhappy employees will always work with less satisfaction and will not be
devoted to their work. As a result, the quality of their work will be hampered and it will be
visible in their day-to-day performance.

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Employee retention rate: another key indicator will be the employee retention rate. If the
employees are unhappy about their job and are uncomfortable about the ne strategy, it is likely
that they will leave this job and look for a new one. As a result, the rate of employee retention
will take a hit and it will be lower than the previous years.

Other than this, if the implementation is unsuccessful then the communication in the company
will be poor resulting in poor production, marketing and promotion. As a result, the company
will occur a loss. So, these are the key success indicators that Unilever can use in order to
successfully and effectively monitor the implementation of the new strategy.

Distinguishing potential risks during implementation

The whole implementation process may face various risks that need to be mitigated to ensure the
smooth flow of the change remains intact.

The strategy implementation is a very complex and time-consuming process. It is extremely

difficult to make a new strategy and then employ it in the company. The new strategy will force
the workers to step out of their comfort zone and adapt with the new system. In case of Unilever,
it will be even more difficult as they will have to cut a lot of costs in order provide products at
cheaper price. Here are a few potential risks that Unilever may face during strategy
implementation,

Poor setting of objective: setting a new goal to match the new strategy may prove to be a very
difficult for a giant company like Unilever. Thus, if the new objectives are not communicated
properly to all divisions, the strategy implementation may fail.

Inability of alignment: a lack of alignment may cause a lot of trouble in prioritizing works and
may harm collaborative work too. This can be caused non-strategic works within the company.

Failure to track progress: this is very crucial as it indicates if the plans are going the right way.
But if a company is unable to track the implementation progress then it won’t be able to predict
the upcoming losses.

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Lack of connection between strategy and individuals: no matter how good the strategy is, it
may still face problems in implementation. This is where the management must ensure that they
convey the strategy plans carefully to the employees to their full understanding and recognize
their problems.

No managing indicators: if the company cannot measure the implementation factors, they
won’t be able analyse its potential success rate at all. Because of that they won’t be able to see
the potential trouble coming (Jones, 2010).

Reviewing the effectiveness of the strategic plan

The new plan will be extremely effective and it will make Unilever more popular among the
general consumers.

The new customer-oriented strategy can be extremely successful if implemented properly. Based
on this, the customers will get their products at cheaper price. This will ensure that more people
enjoy their services.

This strategy will be extremely effective as it will have a cause of serving the people. As a result,
it will attract more customers. The profit per product could be low because of the lower price but
the overall profit will increase a lot. These will give a huge boost to the company in the market
over their competitors. As a result, their revenue, net profit and share price will go higher and
more people will be willing to invest in the company. Thus, making it even bigger in the market.

The new strategy of having a positive attitude towards the customers will also improve the
internal condition and the relationships within the company. The workers will work with more
dedication as they will feel the urge to serve the people more. As a result, productivity will
increase and the supply of products will go upwards as well.

So, the new strategy of serving the people will prove to be of great benefits to Unilever and its
customers. Thus, they should work on taking this strategy and work on implementing it in all of
their divisions and branches all over the world.

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CONCLUSION

The importance of having a strategic management within the company is immeasurable. But it is
also important to improve the strategies and keeping it relevant with requirements of the
customer. As a result, companies need to change their strategies after certain time periods. These
changes are hard to implement and needed to be dealt with a lot of effort. However, with proper
know knowledge and techniques, they can effectively managed. Unilever has always worked on
staying updated with the changing demands of their customers. They have also implemented
strategical changes successfully in the past and for that they have successfully operated their
business for many years.

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