Task1

Introduction
Strategic management can be defined as the process of setting organizational targets,
processes as well as various objectives in terms of making the organization more competitive.
Several features of this management process are utilised for the making of strategies. These
features are capable of making several strategic steps as well as targets which has the ability
to confirm the improvement of the company such as Unilever. A British Multinational
organization headquartered in London, this company mainly deal with products including
food and refreshments, home care as well as personal care. Unilever requires considering the
various planning for holding the market shares as a result of Brexit, for the promotion of
growth as well as sustainability. This assignment will focus on the critical analysis of the
macro environment for determining as well as informing strategic management decisions and
will analyse the how the macro environment impacts. It will also examine the internal
environment with the critical evaluation of the chosen organization’s internal capabilities and
will produce appropriate planning for improving the competitive edge and market position on
the basis of the evaluation. Utilizing the theories as well as models this assignment will
produce a strategic management for the chosen organization Unilever for making this
assignment as successful one.

A critical analysis of the macro environment to determine and inform strategic

management decisions, this will require you applying appropriate frameworks to
analyse how the macro environment impacts and influences the strategies employed by
the organisation.
In term of the chosen organization Unilever, it can be observed that there are various impacts
that can be confirmed through the macro environment. Implementation of the macro
environment, businesses are able to know their requirements as well as can ensure the
importance of these requirements. As per the knowledge gained from the macro environment,
retailers like Unilever can easily create quite a rigid system that can assist the process of
development with the improvement of the organizational performances. Understanding the
related theories, this chosen organization can confirm target meeting acts for surpassing the
market rivals and with this method this company can be capable of working within the
system in a perfect manner.
This can be presented through the PESTLE analysis where it is a model that can provide a
quite effectual idea concerning the role of the macro or the external environment within the
terms of Unilever. There are various aspects that can provide various aspects of the market as
well as the company. This is the reason, this analysis is important
Political
It can be observed that Unilever is sustaining various political influences as well as
alterations that are occurring within the system. The UK government is now associated with
the activities which are performed by Unilever and the government is also patronizing it. On
the other hand, after the Brexit, there are various alterations which have been happened
through the bad political circumstances. Nonetheless this organization has various chances
for the global growth on the basis of expanding free business relation, particularly in the
developed nations.
Economic
Unilever is associated with various activities which are connected to the activities
economically. The main role of the economic influence is so much huge that the role is
getting confirmed, for example in the previous year this company has been able to make a
turnover of 35 billion GBP however on the other hand, Unilever requires to have a deal with
other issues since they have considered the occupation of the workers. The workers are
creating the role for meeting the targets and in this method the economic understanding is
confirmed as well as organised. The increased wages has also presented opportunities for this
company to get profit from the superior probable sales. However the same factors can threat
the increasing cost.
Social
Unilever will require having deal with various social issues and they need to deal with the
society as well. They are capable of preserving a very rigid connection with the social parties
among the system. However the consumer’s turnover rate is quite low and consumer
contentment rate is high and Unilever has turned out to be make standard footprint on the
perfect line. Unilever can reduce its energy usage by the adoption fresh as well as more
energy effective technologies.
Technology
Raising the business automation can be the chance for the chosen company for the increment
of the functional efficiency. For instance new business processing tools can improve the
inventory monitoring for supporting the supply chain. There are various requirements for the
technological understanding and this company requires dealing with the issues related to
technology in a perfect way. If they are capable of managing the technological areas, then the
organizational effectiveness can be easily confirmed. This company can decrease the cost
with the increment of the levels of the customer contentment.
Legal
For the case of Unilever, this company requires to deal with the legal areas since there are
various laws as well as techniques that are associated with this factor and as per the reports,
Unilever has the chance to improve the corporate picture by getting matched of the
company’s CSR planning with the regulations of the environment. However due to the
impact of Brexit law the company requires having proper strategies for promotion and
sustainability.
Environmental
The increasing attention within the trade environmentalism is an occasion for the chosen
organization Unilever for the improvement of its environmental agenda to draw the
customers concerned over the surroundings. In relation with the chosen the corporation can
improve its sustainability agenda to make stronger its competitiveness next to other
companies in the customer products industry. For instance, the strategy should think product
novelty as well as internal trade processes to further decrease of the trade environmental
influence.  
It can be critically analysed from the study that as the consequences of the PESTLE analysis,
the strategic management decisions will certainly get elevated at the highest level. Strengths
and weaknesses from the PESTLE analysis is utilised for the better creation of the strategic
management. The PESTLE analysis can provide effective concept concerning the role of the
macro environment among the Unilever. There are various aspects that can provide the
various aspects of the outside market place with the data concerning various aspects of the
environment that can assist the company to know the business situations. However on the
other hand, it do not take the global market environment where the aspects of this model can
alter quite quickly. The alterations in the factors of PESTLE cannot be distinguished in a
normal way and this is one of the demerits of it. There are several blind spots as well like the
inconsideration of the technology as well as other trends as well. it is also easy to get lost
within the large data and this analysis works on the assumptions which can be a risk of
getting wrong. The pace of alterations can also make it quite difficult for the anticipation of
the developments as well as this might affect Unilever in the upcoming days.
A critical evaluation and analysis of the internal environment that will consider the
organisation’s internal capabilities, structure and skill set. Relevant frameworks such as
SWOT/TOWS can be used.
Internal environment
Unilever is known to be the leading business among consumer goods within the worldwide
market. SWOT-analysis helps in identifying the strengths, weaknesses, opportunities, as well
as threats of Unilever. The SWOT analysis also depicts the necessary conditions along with
the external environment of Unilever.
SWOT analysis

Strengths
Strengths are referred to as the internal factors like human resources, organizational structure,
procedures of production, investments, as well as others that are based on the conditions of
the company. The strengths of Unilever are:
 Strong brands
 Strong presence in the worldwide market
 Economies of scale
 A range of broad products

Unilever consists of various strong brands within the industry of consumer goods that enable
them in penetrating markets in an effective way as compared to other companies in the
industry. Through their expansion strategies, the company has been able to enhance their
presence in the worldwide market that has been their strength in terms of reinforcing the
popularity of their brand. Through economies of scale, Unilever supports their production in
an efficient way and is also able to develop competitive strategies for pricing which is also
known as Unilever's marketing mix. Their broad product mix helps them in showcasing the
extent of and the growth of their business.
Weaknesses
Despite their strong position within the market, Unilever still has certain weaknesses that tend
to limit their growth. The weaknesses of Unilever are:
 Limited business diversification
 Imitable products
 Dependency on the retailers
Although Unilever has a broad product mix, Their major weakness is their limited
diversification within their business outside the industry of consumer goods. Another
weakness of Unilever is its imitable nature regarding their products. Though Unilever spends
a lot of money on the developmental procedures of their products, other companies can easily
imitate the products of Unilever such as Rexona as well as Dove products. Along with this,
Unilever also lacks a strong influence on the customers as the retailers are responsible for
affecting the buying patterns of the customers directly.
Opportunities
Unilever needs to take advantage of the various opportunities for growth within the industry
of consumer goods all over the globe. The opportunities of Unilever are:
 Innovation of fresh products for health
 Diversification of business
 Development of the market
 Enhancement of their business for conserving the environment

Innovation of new products leads to an increase in the attractiveness of the products of

Unilever and also helps in fulfilling the needs of the customers who are health conscious.
Unilever has the opportunity of diversifying their business outside the industry of consumer
goods. This will also reduce the risks related to the market as well as improve the resilience
of their business. Development of the market will help Unilever to grow their business to the
increase of revenues Due to the selling of their products within the fresh segments of the
market. Unilever also has opportunities of developing their business into more environment
friendly as well as sustainable. This will help them in attracting as well as retaining the
customers who are environmentally conscious.
Threats
Various external factors tend to reduce or limit the performance of Unilever. the threats
responsible for limiting the business performance of Unilever are:
 Imitation of product
 Competitive rivalry
 Increase in popularity of the retailers

Imitation of the product tends to be a major threat for Unilever As the local businesses and
able to develop the products that are very much similar to the products developed by
Unilever. Unilever also has to face major competition in the industry that tends to be a threat
regarding the strength of the other businesses within the industry. the competitors are a threat
to Unilever as they can reduce the market share of the company and also affect their financial
performance. the retailers also pose a threat to Unilever as they are capable of selling the
products of their personal brands. These kinds of brands are also known as generic brands,
store brands, or house brands.
VRIN/VRIO analysis of Unilever
The VRIO analysis tends to be a strategic tool that is generally utilized to assess as well as
evaluate the resources of an organization and along with that determine the strategic
advantage as well as the competitiveness of that organization. This tool helps in identifying
the competitive advantage of a company in the long term through the evaluation of that
internal resources as well as their capabilities. The analysis evaluates the resources as well as
the competencies on the basis of the characteristics.
 Valuable
 Rare
 Inimitable
 Organization

Valuable
Competencies that tend to be valuable help Unilever to exploit the opportunities that are
available and also neutralize the threats from the external as well as the internal environment.
The competencies help in the growth, development, as well as further expansion of Unilever.
 Brand image

The brand image of Unilever tends to be unique as well as consists of high brand integrity.
Unilever developed its brand image over a longer period and with consistent effort as well as
offers quality products to the customers. The brand image of Unilever also represents their
trust as well as honesty.
 Brand image for social responsibility

Unilever continues to engage within actions that are socially responsible and also are
transparent about their actions. They have clearly defined their function regarding corporate
social responsibility. All the stakeholders of Unilever are properly acknowledged regarding
the activities of the company as well as their actions regarding social responsibility.
Rare
  Adaptability

Unilever has its presence as well as operations all over the globe and they are highly exposed
to the various cultures as well as social values and norms. Unilever is highly adaptive towards
various cultures as they engage in marketing communication as well as localized activities.
Localization is crucial for Unilever as it helps them to penetrate various local markets.
 Problem-solving skills

Unilever has developed an organizational culture regarding solving various problems among
its management as well as its employees. Due to their organizational culture, it helps them to
foster high creativity, innovation, as well as teamwork within the company.
Inimitable
 The offering of quality product

Unilever is known to offer proper quality products to their customers so that it leads to
continuous purchases and also increased consumption of the products offered by Unilever.
 Customer experience

Unilever is known to provide a unique experience for their customers by offering high brand
engagement that is not only memorable but also relevant. Unilever continues to engage with
its consumers at various touchpoints and also offers a holistic experience leading towards
continuous purchases by the customers.
Organization
 Technological incorporation as well as advancement

The incorporation of the latest technology, as well as their advancements, has helped
Unilever to gain a competitive advantage within the industry. These technological
advancements help Unilever in maintaining their various business operations as well as
procedures efficiently as well as effectively. Technological advancements also help Unilever
to manage its global operations smoothly.
 Investing in research as well as development

Unilever has made various investments within research as well as the development that has
enabled them to remain abreast regarding the marketing trends as well as the behavior of the
customers. Unilever utilizes their research as well as development function for the
development of various offerings that fulfill the demands as well as changing tastes of the
customers.
Critical evaluation
McKinsey's 7s model tends to be a strategic tool as well as a framework that is helpful for the
managers as well as businesses in assessing the performance of a company. This tool
identifies seven major elements of a company that requires focus as well as alignment for a
successful procedure of change management.

These seven elements are categorized into hard elements as well as soft elements.
HARD Elements SOFT Elements
Shared Values
Strategy Skills
Structure Style
Systems Staff

Hard elements
Structure
Unilever poses a flatter organizational structure that gets support from learning as well as
progressive organizations. it has fewer managerial levels and has greater access towards the
senior management as well as leadership. The coordination among various departments is
also high in Unilever. The department of heavy work tends to form interdependent teams
regarding various projects as well as tasks that consist of multiple expertise. Unilever tends to
encourage teamwork as well as team-oriented tasks. The company has also developed an
intricate system that ensures communication among the employees as well as various
managerial levels.
You will produce appropriate strategies to improve competitive edge and market
position based on your evaluation of the competitive market using the Porter’s Five
Forces model.
The chosen organization Unilever efficiently participates around the international customer
merchandise marketplace. The Five Forces Analysis of the Porter Model of Unilever
highlights the requirement to the deliberately provide importance to the rivalry as well as the
bargain control of the clientele within the industry surroundings. The Porter’s Five Forces
model is the tool for the purpose of management that helps in understanding the influence of
the external factors within the chosen surroundings. For the Unilever’s Analysis, the spirited
rivalry is seen as one of the most rigid outside forces, with the bargain control of the buyers.
To make sure the long-term achievement, the chosen corporation should address the problem
connected to these five forces. The chosen organization Unilever’s marketplace place as well
as the strengths of the organization is sufficient to deal with those forces.
This company deals with the broad variety of the outside factors, taking it the degree of its
processes in the worldwide customer merchandise marketplace. The following mentioned
aspects are the intensities for the five forces which affects the Unilever.
Competitive rivalry as well as competition (strong force)
Competition can be defined as the major force for the Unilever’s industry surroundings. This
area of inside the Five Forces analysis can help in recognizing the outside factors which
present the influence the company on the each other.
Various rival firms (strong force)
High fierceness of the companies (strong force)
There are various companies functioning in the customer merchandise industry. This outside
factor inflicts a rigid force on the chosen organization Unilever.
Bargaining power of the customers (strong force)
This chosen organization’s trade and manufacturing surroundings relies on the reply of
customers to its merchandise. The impact of the buyers on the trade performance is measured
for this area of the analysis. Unilever should deal with the following outside factors which
guide to the rigid force of the bargain control of the clientele. This includes the Low
switching expenses as well as elevated quality of information and the small size of person
buyers.
The low switching costs can produce it simple for the customers to move from the Unilever’s
goods for the companies’ merchandise. This outside factor donates to the rigid strength of the
bargain authority of the purchasers.
Bargain power of the suppliers (moderate force)
Suppliers can influence the Unilever’s industry surroundings by making an effect on the stage
of supply obtainable to the companies. This area of this analysis showcases the impact of the
suppliers on the firms. The area includes the external factors that add to the reasonable force
of the bargain authority of suppliers on the Unilever and this includes the reasonable size of
personal suppliers (moderate force) as well as the Moderate inhabitants of the suppliers.
While the chosen organization Unilever has big suppliers like overseas firms that provide
paper as well as oil, the standard supplier is reasonable in size. This outside factor inflicts a
reasonable strength force on the customer goods industry environment.

Threat of the substitutes (weak force)

Substitutes are those that can decrease the Unilever’s profit as well as the strength of the
company in the customer merchandise industry surroundings. The influence of the
substitution is determined for this section of this analysis model. For the case of this chosen
organization, the following external mentioned aspects are accountable for this force for the
threat of substitution. This includes the small switching costs as well as the small substitute
availability.
The small switching expenses allow the customers to effortlessly employ the substitutes to
the products of Unilever. This outside factor inflicts a rigid force on the corporation as well
as the customer merchandise industry surroundings. However, the whole influence of the
substitution is damaged since of the low accessibility of the substitutes. 
Threat of the new entry (weak force)
Unilever mainly competes with the recognized companies and also with the new companies
in the customer merchandise marketplace and this area for the Five Forces model taken in the
impact of the new companies on the manufacturing surroundings. The exterior factors make
the weak force of the threat of the new entry. This includes the small switching costs as well
as the elevated price of the brand development.
The appropriate strategies to improve competitive edge as well as market position based on
the outcome above includes clarification of the strengths where the chosen organization must
learn the strengths as well as the competencies. These are approaches that can help the
organization to have better development and gain competitive edge. Creation of a corporate
culture can help in attracting the best talent and finding of the best people is vital for the
productivity as well as cost reduction. It is also vital since having happy workers defines that
the consumers will have better experiences. Establishing the unique value proposition is
another area where Unilever can utilise something unique like pricing as well as service
levels for creating competitive advantages.

Using a range of theories, concepts and models you will produce a strategic
management plan that has tangible and tactical strategic priorities and objectives for
your chosen organisation.
In term of the chosen organization Unilever, there are various theories as well as concepts
that can assist for making a strategic planning for Unilever. The plan includes Porter’s
generic strategy where there are various problems that are connected to the planning to enter
into the marketplace. Through this Unilever can implement these planning that will assist
them to arrange the problems in a perfect manner. The cost and the price leadership strategy
will be offering idea concerning the method about pricing. Differentiation of strategy is also
another planning where the merchandise will be marketed with a variety of variation. Focus
stagey is another way out which will help for specific market types. For companies like
Unilever, the diversification strategy can be proper as well as important. Globalization is
another method for the chosen organization where various issues will be vital that can be
arranged. Benchmarking is another that can be applied into the raw materials management
system. Various features of the strategic management are utilised for the manufacturing of
the plans and these features can be able for making the several strategic priorities as well as
objectives which can assure the improvement of the company. With the assistance of the
differentiation, the products will be launched within the market and number of variations can
be involved into it. On the other hand the chosen organization also has to rely on the focus
strategy and this will help Unilever to get aligned. For making a better strategic as well as
tactical action, several actions of data as well as data can be implemented among the
environmental as well as competitive analysis. In terms of gaining the data concerning the
competitive analysis and after the Brexit, there can be several changes which can be occurred
by the worst political conditions. As Unilever is capable of having string relationships with
the social parties it will able to manage the situations properly. The business strategy, as well
as the strategic direction of Unilever, is properly defined as well as it is communicated to
every employee as well as stakeholders. This helps them in the management of performance,
device effective strategies, as well as guides their actions. Unilever devices its strategies
taking into account the activities of their competitors as well as there are competitive
pressures. It also takes into account the changing trends as well as demands of the customers
along with the evolving marketing patterns of the customers as well as consumer behavior. A
crucial aspect regarding the strategic direction of Unilever is they have a flexible as well as
adaptable strategy. Due to this, the company is not only able to get benefits from its quick
reaction and response towards the buying patterns of the customers, but they are also able to
adapt their products locally as well as culturally for various regions as well as
countries.Unilever consists of a highly skilled workforce. They recruit their employees on the
basis of merit as well as qualifications and pride themselves regarding the hiring of the best
professionals. They also groom the hired employees further so that they are able to facilitate
growth as well as development. Unilever gives proper attention towards the enhancement of
skills as well as capacities of the employees by adding workshops as well as regular training.
This creates opportunities for growth as well as the development of the employees. The
human resource of Unilever tends to be its major competitive advantage. The skills possessed
by the employees are developed according to their job rules as well as requirements of
Unilever so that they are able to provide a competitive advantage to Unilever.

Conclusion
It can be stated from the above part that strategic management can be defined as the process
of setting organizational targets, processes as well as various objectives in terms of making
the organization more competitive. Several features of this management process are utilised
for the making of strategies. Unilever consists of various strong brands within the industry of
consumer goods that enable them in penetrating markets in an effective way as compared to
other companies in the industry. Through their expansion strategies, the company has been
able to enhance their presence in the worldwide market that has been their strength in terms
of reinforcing the popularity of their brand. Unilever will require having deal with various
social issues and they need to deal with the society as well. They are capable of preserving a
very rigid connection with the social parties among the system. However the consumer’s
turnover rate is quite low and consumer contentment rate is high and Unilever has turned out
to be make standard footprint on the perfect line. Unilever can reduce its energy usage by the
adoption fresh as well as more energy effective technologies. Competencies that tend to be
valuable help Unilever to exploit the opportunities that are available and also neutralize the
threats from the external as well as the internal environment. The competencies help in the
growth, development, as well as further expansion of Unilever. Hence almost every aspect is
quite clear in the above part.