Category: Unilever

Brief Background

Margarine Unie, a Dutch margarine manufacturer, and Lever Brothers, a UK-based enterprise specializing in soap, created Unilever in 1930. From the 50s and further, the company extended the range of its products. The company has made many acquisitions, but we are interested in those of ice-cream persuasion. The first one occurred in the 1920s when Margarine Unie and Lever Brothers bought Wall’s meat business. The idea to produce ice-cream for summer proved a success. In the 60s, Unilever acquired Good Humor, US. By the late 70s, Unilever had acquired a third of the ice-cream market in Western Europe and became the biggest ice-cream manufacturer in the US. The acquisitions continue into the 21^st century: in 2010, Unilever acquired EVGA, Greece, and in October 2015, it acquired GROM, Italy (Landini 2015).

Mission

Unilever prides itself on its remarkable understanding of the consumers’ needs. It engages itself in producing consumer-oriented goods that consist of food and beauty products. The ultimate social goal that Unilever tries to achieve is improving the life quality on a local and global scale. Thus, it deploys an unambiguously stated mission concerning the quality of its products. It agrees and undertakes the obligation to distribute ice-cream made of the finest-quality ingredients. It also claims to adopt environment-friendly technologies and business practices (Sustainable Living n.d.).

Strategies in Action

Currently, the company adopts the strategy of product development that presumes to improve the characteristics of a product to meet the market’s needs. The company continuously monitors the demand to decide whether the product brings profit or the line should be called back. Also, Unilever tracks the competitors’ products to ensure its leading positions in the market. About human resources, the company manages the recruitment of staff members to make sure the workplaces suit the workers and vice versa. All new employees are trained and surveyed for the salaries to be adjusted. The company maintains its financial operations relying on the resources it accommodates. They do their best to mitigate post-trade risks through the adoption of practices deployed by ICAP and are the world leaders in sustainability (In search of the good business 2014).

The acquisitions have an undeniably important part of Unilever’s success. Through acquisitions, the Wall’s company started its growth from a soap-and-margarine joint business towards a global ice-cream manufacturer. With time, the acquisitions became an indispensable resource of the local market information concerning the needs of the consumers. Locally, the needs mainly correspond with national and culture-specific concepts (Jones & Miskell 2007).

The strengths and weaknesses of the company can be presented in the SWOT chart as follows:

Strategic issues

The main problems discovered are the way the Unilever ice-cream growth could be increased and expanded worldwide; at that, the company should not sacrifice its ethics. Furthermore, like health- and environment-related issues emerge, the company ought to manifest a healthy attitude towards production. Besides, although the company advocated for customer-orientedness, the customers’ feedback and the ways of its reception should be brought to the agenda.

In 2013, the per capita Wall’s ice-cream consumption around the world looks promising:

As can be seen, Wall’s has expanded all around Europe, but developing countries remain an issue, as well as, paradoxically, the UK with its stale ice cream market:

Ice-cream as a product is quite profitable in countries with a tropical climate, i.e., Indonesia and India.

In Indonesia, Wall’s share in the ice-cream market has experienced an unbelievable boom in 2008-2014, practically swallowing all other ice-cream producers, except Campina (Ice Cream in Indonesia 2015).

However, the market share of Wall’s (known in India as Kwality Wall’s) is humbling, considering the size of the industry (Ice Cream in India 2015).

The situation in the UAE does not prove better, and the situation has been stable for three years, 2008-2010.

In 2011, Unilever’s ice-cream gained a few percent, but not many (Ice Cream in the United Arab Emirates 2014).

In Pakistan, Unilever has a considerable amount of market share, but the consumption is still too low (Ice Cream in Pakistan 2015).

In Singapore, Unilever has two companies that proved stable in the ice-cream market in recent years (Ice Cream in Singapore 2015).

The fall of consumption can be explained by health issues concerning the abundance of milk fat in the ice-cream industry as opposed to more expensive milk fat, which is, nevertheless, considered healthier.

The organization’s response to market conditions is the modification of their areas of expertise, i.e., internal abilities, contact with the providers, and the company’s disposition as opposed to the competitors’. It is important to understand the connections between the company’s actions since it might conduce to the most appropriate decision-making leading to the advantage in price or specialty. Thus, we suggest the following strategies: the evaluation of the stakeholder interests and shares and the enhancement of the evaluation of the company’s financial standing.

To correctly evaluate the stakeholders’ disposition, the Unilever’s managers must have a clear understanding of what is most important for the stakeholders, from what point they view the company’s activities, and what are their estimated prospects for the company’s further endeavors. Besides, Unilever should expand their target audience, which is an essential element of the company’s development. For that purpose, the consumers’ feedback should be accessible to the management. Having accessed the feedback, the company will have an opportunity to deploying more active contact with providers and increasing the market share.

As to financial management, the very nature of it implies that the managers have to put up with risky decision-making and challenge the possible negative outcomes. Unilever should ensure that operational expenditures remain within the corporate funds to be able to budget the company’s follow-up activities. The decision-making in the area of financial management should be kept an eye on: the managers should be trained in real conditions of investment projects.

Recommended Strategy

Thus, regarding the recent practices of Unilever, it is possible to state that although the company prides itself on its sensitiveness to the consumers’ needs, it currently experiences difficulties in establishing good interaction with consumers, especially in UAE and India. Even though the company already is firmly imposed in the said countries’ markets, it should maintain and enhance its credibility. Thus, the strategy that includes gathering customers’ feedback and enhancing financial management is highly recommendable.

References

Ice Cream in India 2015, Web.

Ice Cream in Indonesia 2015, Web.

Ice Cream in Pakistan 2015, Web.

Ice Cream in Singapore 2015, Web.

Ice Cream in the United Arab Emirates 2014, Web.

In search of the good business 2014, Web.

Jones, G & Miskell, P 2007, ‘Acquisitions and firm growth: Creating Unilever’s ice cream and tea business’, Business History, vol. 49, no. 1, pp. 8-28.

Landini, F 2015, ‘Unilever buys premium Italian ice cream maker GROM’, Reuters, Web.

Sustainable Living n.d., Web.

Introduction

To apply the described concepts to practice, one should initially analyze the principles that make up the basis of Unilever’s leading strategy. If I were an upper executive within this company, I would primarily define the key targets and the potential difficulties. Thus, I believe, Unilever’s leader is to focus on the following areas: extension of the targeted market, encouragement of innovative ideas and approaches, an increase of corporate motivation, and strong leadership within every department.

Among the potential challenges, I would point out the enormous size of the workforce and the diversity of geographical locations of the company’s offices. It means that, on the one hand, one will have to work out a powerful motivating appeal so that all the staff shares the common idea and works hard to reach the common aim. On the other hand, the leader will need to perform careful monitoring of the local environment so that the performed activity takes into account the regional economic and political peculiarities.

Main body

To begin with, I would return to the report of 2009 and its key ideas. I believe that the preservation of the mentioned “strong base of values and principles” is only possible on the condition that the company has skillful local leaders that share the corporate principles and can inspire their teams to share them as well. To supply the presence of such leaders, one should encourage the development of leadership from within rather than employ the specialists from without. It can be achieved by providing a clear and precise system of career advancement. In other words, every employee should have an opportunity to get promoted in a relatively short period of time in case he or she has outstanding performance and special achievements.

In order to increase “consumer and customer focus”, which was one of the principal ideas of the report, I would launch a mass monitoring program that would help to collect the current data on the clients’ needs and their general satisfaction level. This measure would enable one both to define the existing drawbacks in the corporate performance and to target the market for a potential extension.

Moreover, basing on Fergie Balfour’s statement that a good leader is to inspire the staff to “do, and be, their best”, I would think of an efficient motivation strategy. Apart from the already mentioned attractive prospects for advancement, which would be likely to serve as a powerful motivation, I would also introduce a promising, rewarding policy. The following system would imply regular and occasional financial bonuses assigned for the most effective performance. In order to inspire the employees’ innovative and creative activity, this system would suggest rewards not only for the practical results of one’s work but the potentially beneficial ideas as well.

Conclusion

Finally, I would try to turn the existing difficulties into advantages. Thus, the geographic diversity of the departments’ locations will be regarded as an opportunity to try some new approaches applying them to a particular department as an experiment.

Following Michael Brunner’s appeal to “seek new approaches to old problems”, one can try the introduction of truly innovative practice. For example, in one of the departments, one can apply the holacracy concept that is believed to improve corporate performance by the elimination of the organizational hierarchy. Although there is a risk of misfortune, on the other side, there is an equal chance for success that will open new opportunities for the company’s progress.

Company Background

The Unilever Company is one of the world’s largest food and consumer products multinational companies. The company was formed in 1930 through a merger between two companies: Lever Brothers Group and Margarine Unie, a margarine production organization, which was also a merger between two groups of companies at that time.

It should be noted that the newly merged Unilever group first began manufacturing soaps and oils, but as years progressed, they diversified into food and homecare based products. The Unilever group has made some acquisitions along the way and has come as far as being the third largest consumer goods manufacturer in the world, making its listings in the London stock exchange.

Product Background

Interestingly, Timotei, which is a shampoo brand, derives its name from timothy, a wild grass, to emphasize its mildness and nature relation. The brand was manufactured for people with normal hair type who would like to wash it frequently and make sure it was not becoming too dry or damaged. One should know that the Timotei brand was created by a Unilever subsidiary in Scandinavia and introduced in Sweden in the 1970s after its initial start-up project in Finland became a big failure. Considering that the Swedish promotion was a big success, the company’s plans to launch the brand into the international market in the 1980s were also fulfilled.

Competitor Analysis

Consumers used to participate in the marketing tests before the Timotei shampoo introduction. They mentioned Schwarzkopf, Andrelon, Zwitsal, and Elseve among their preferred brands. This meant that Timotei, once appeared in the market had to find its way to edge out the aforementioned manufacturers to become a popular household brand.

Customer analysis

During the Frevert test analysis, it was found out that customers bought the Timotei shampoo because it had a herbal basis as some would consider it medicinal. 69% of the test consumers actually thought that they could wash hair more frequently with Timotei and would most likely consider it their preferred brand. The customers sometimes do not make a repeat purchase due to the availability of cheaper brands. This meant that though they valued quality of what they buy, they would still go for a product with a lower price.

Recommendations

As can be deduced from the tests, price is an important factor during purchasing and therefore Timotei marketers should have used a penetration pricing strategy where they could have offered low prices for their shampoos. This penetration type of pricing though may not be a quick way of reaching the breakeven point. Still it is important so that the product can be accessible to a larger group of consumers through affordability, and as its benefits become evident, price change can be considered.

Secondly, the market tests should have been carried out in different regions and not only in the Netherlands. The conducted research does not show whether the outsourcing of the respondents was done extensively or within a confined region. In addition, it does not reflect the data if the people’s hair problems may have been more or less similar.

Lastly, the tests should have been done over a large time difference like one year to consider the effects of advertisement and consumer education. The clients’ reaction after carrying out an advertisement or a product enhancement is a significant factor to consider during the marketing process.

Business entities had been paying great focus on profit maximization at the expense of sustainability until the mid of 1970s. Corporate Social Responsibility (CSR) is the ethical practice that businesses engage in during their operations. They take into concern the affairs of people and the entire planet. Companies strive to create a positive impact on people and in the environment where it operates; their operations must incorporate the actions of social enterprises (Blowfield & Murray 2010). CSR is for all businesses as it builds the image of these businesses. This essay will discuss the comparisons that exist between the goals and objectives of British American Tobacco and the Unilever Company when they engage in CSR.

British American Tobacco makes high-quality tobacco products and imports them around the world as it is committed to a high standard of corporate social responsibility. BAT has a heavy task in providing its concern towards the public in the process of selling its products, which has killed many users of the products. For example, in 2007, the government of Nigeria claimed that BAT was targeting to finish the youths in Africa. This claim made many African countries take legal action against the company; some sought advance payments for damages associated with smoking tobacco (On Corporate Social Responsibility and The BAT Foundation – Ventures Africa 2012).

BAT has launched initiatives that discourage smoking among the youthful generation; it has laid strategies that make the youthful generation responsible individuals. For example, this information ‘smoking is not for under age’ discourages the youths to smoke, as it proclaims that it is harmful to children (CSR governance 2012). Moreover, BAT through its scholarship scheme has supported the education of Nigerian citizens who could not have accessed basic learning activities. It aimed at empowering the youths in Nigeria by promoting skilled workforce development towards the Agricultural sector (Corporate social responsibility 2009). Additionally, the Engineering Artisan Programme focuses on boosting and developing professionalism among the youths.

Furthermore, the BAT supports regulations covering the promotion and sale of tobacco products; it has contributed to the discussion towards tobacco control in Kenya (On Corporate Social Responsibility and The BAT Foundation – Ventures Africa 2012). For instance, BAT is one of the stakeholders towards the improvement of the Tobacco Act, which regulates packaging and restricts public smoking, adverts, and sales to the underage. Conversely, BAT requested for a delay in using DDT as it carried out research on what could have caused the annual death of over 550,000 children; this occurred due to numerous complaints from customers on the effects of DDT on tobacco. The incident was against BAT’s code of conduct; as a result, they had to apologize to the government and the people of Uganda.

In Rwanda, the BAT has been supporting both the health and education sector. Markedly, it has assisted the health sector in banning all tobacco adverts with an aim of discouraging underage smoking. In the education sector, BAT filled University libraries with reading materials, presented computers to schools, and launched scholarship programs for university students. Besides, the BAT came up with an agreement with the Rwandese Government that it will continue supporting the country thereby boosting the image of its social responsibility. In East Africa, the BAT supports the Jua Kali industry through a series of annual exhibitions, which give room for Jua kali businesspersons to learn skills towards marketing and quality control. Jua Kali is an informal small-scale business that takes place in the open. It is comparable to cottage industries. This initiative has boosted the Jua Kali industry, as it has created over 80% of new jobs in East Africa. Further, BAT aims at developing tobacco-growing activities as a way of reducing poverty in East Africa. In the Democratic Republic of South Africa, BAT initiated key programs that ended homelessness among the small service providers and their properties. Moreover, BAT gives information, referrals, capital, and other required services for starting a business. For instance, it donated over R110, 000 to Cape Town University to be used for training students on key business skills (On Corporate Social Responsibility and The BAT Foundation – Ventures Africa 2012). The BAT donated this amount towards a scholarship for a two-year program undertaken by university students in Cape Town.

The Unilever Company, on its part, produces multinational consumer goods such as beverages, foods, and personal care products. On the CSR, the Unilever Company together with the Earth Institute introduced an initiative towards hand washing using soap. This initiative is aimed at saving the lives of close to 600,000 people in the villages. Under the Sustainable Living Plan, people wash their hands using soap hence improving their health as germs that cause diseases are washed off. In South Africa, this initiative through the Lifebuoy soap brand has saved over 40 million lives through hand washing using the soap. The Unilever Company came into another partnership with Population Service International (PSI) as well as UNICEF in the Unilever Foundation in order to continue saving lives (Unilever Sustainable Living Plan Helping to Drive Growth 2013).

Notably, the Unilever Company has ensured that wastes are eliminated from the environment through the provision of Household Bins in urban centers. The majority of Unilever factories send no waste to landfills; they remove these wastes at the processing point thus minimizing environmental pollution. The company is practicing recycling and reuse of wastes as a means of reducing soil, air, and water pollution. Landmarks have demonstrated how Unilever factories are friendly to the environment. This program has enabled the company to save more than € 60 million since there is no capital expenditure.

The Unilever Group of Companies launched the Unilever Sustainable Living Plan that aimed at improving its positive social impact to ensure that they achieved their 100% target on sustainability. The objective of the Unilever Company is to minimize, water scarcity, and unsustainable farming practices with the purpose of increasing food supply (Unilever Sustainable Living Plan Helping to Drive Growth 2013). In September 2012, the launching of the new soap in France saw Unilever’s first product to promote tomatoes growth. According to the Unilever Sustainable Code, tomatoes sustain growth. In West Africa, Unilever has been co-joined in the running of field schools for pastoralists; this initiative made it be certified.

Unilever Company through its hygiene brand has come up with initiatives to raise awareness towards sanitation using toilet paper. It also campaigned for the building of public toilets in London. This initiative reached many people since sanitation is a basic human right. Unilever, through its Sustainable Living Plan, has ensured many people improve their health using toilet paper. The program has reduced death cases and diseases associated with poor sanitation. Domestos, a brand from the Unilever Company, is toilet hygiene used by families in offering protection from germs (Unilever Sustainable Living Plan Helping to Drive Growth 2013). Unilever continues to produce this brand in large quantities to fight poor sanitation. By 2002, the Institute of Business Ethics supported Unilever in training business people in London; this program aimed at imparting CSR skills to the business people. By the end of the year, business people had begun caring about other factors in the environment apart from profit-making. Evidently, Unilever is working towards meeting its strategic goals and objectives in implementing its CSR.

Corporate Social Responsibility (CSR) is permitted in enquiring information it needs in carrying out its strategic objectives. In the case of BAT, the chairperson of the CSR committees has a duty to report the outcome to the Board committee. The company’s secretary prepares the report assessed during the evaluation by the Board committee where they identify action points. The action points may include the committee’s focus and forward, composition, and review of peers (Baker 2004). According to Baker 2004, CSR addresses social, economic, and environmental impacts that affect the interests of their stakeholders. The agenda aims at upholding high standards of corporate conduct, reducing product risk, addressing the effects of the group’s business on the environment, and ensuring that it deals with the right people all the time. In addition, they positively work for the social-economic and environmental impacts in supply towards the group. The major principle of CSR is to lay out the expectations for the proper running of the group’s business. Some of the principal provisions are responsible product stewardship, mutual benefit, and good corporate conduct. The CSR approaches towards human rights follow its guideline in the Organisation for Economic Co-operation and Development (OECD) as well as the UN declaration of human. In ensuring that their reports are sustainable, they have been producing independent reports from the year 2000 (Baker 2004). This shows a strong commitment to the work; it results in sustainability in the group. On the other hand, group companies get guidance on selection, management, and evaluation of Corporate Social Investment (CSI) activities. Nevertheless, societal needs vary depending on the people and, therefore, they spend according to the tastes, preferences, and cultural practices of the local inhabitants (Matten, Moon & Siegel 2009).

These companies, therefore, have large customer bases, which they must protect in order to remain productive in the business world. In manufacturing these numerous products, the Unilever Company uses different ingredients such as water, sugar, and other additives. In addition, the company packs its products in materials that can have effects on the environment and consumers’ health. Their industries also produce effluents that have adverse effects on the adjacent environment and the local inhabitants. Daily, they consume a lot of energy to run their operations. This energy has its source from the environment (Energy 2012). As a result, The Unilever Company should bear a great deal of responsibility to its customers, the public, and the environment. On the energy conservation, BAT just like Unilever is highly taking a proactive tactic to reduce emissions. For example, Corporate Responsibility – Environment elaborates, “Supporting alternate employee commute options” The Unilever Company also started a program where it is rewarding those who opted to walk or cycle to work; this initiative reduces CO₂ emissions into the atmosphere. Additionally, these companies encourage the use of natural sources of energy like windmills. Since they rely on the environment to run their activities, they must take exceptional responsibility for its sustainability.

While others may have contrary views of the companies’ involvement in these activities, I fully support their actions. These individuals may reason that other companies are enormously harming the environment but are not taking any action in minimizing their acts. Therefore, other companies do not need to take an immense deal of responsibility. Factually, an unhealthy environment is unsuitable for all businesses, and the less concerned included. A company that is responsible for the environment, the public, and its customers builds a positive image globally, thus improving sales and retaining skilled employees. Simultaneously, these companies train their employees on the impacts of using their products and even involve communities and government agencies in creating this awareness. Additionally, their concern for the environment is evident in their goal of recycling and treatment of used plastics before releasing it to the environment (Corporate Social Responsibility (CSR) n.d.). The two firms try to meet their objectives and goals through CSR. For instance, Unilever through its Sustainable Living Plan, contents that too much CO₂ in the environment is a threat to their operations since a change in climate affects the production of their raw materials (Unilever Factories and Logistics Reduce CO2 by 1 Million Tonnes 2013). Evidently, reducing CO₂ emissions is a goal of this company; therefore, it cares for the environment in the process of limiting emissions from the factories.

On the other aspect, BAT has strategically placed itself at incorporating its stakeholders in all their activities. For example, the company engages public health communities, NGOs, farmers, customers, and employees on matters that affect them and in giving their views on issues such as selling tobacco products to underage adults. In addition, BAT uses dialogue on sensitive topics with their stakeholders. After choosing the topic, the company invites a wide range of stakeholders in order to engage the senior managers. The inclusion of many stakeholders is beneficial as the group contains even the critics of the company. The dialogue assists the company to engage in and solve relevant issues that affect the stakeholders and the environment. In this line, BAT uses both the integrative and ethical theories of CSR. Integrative theories hold that companies rely on society for continuity and development; as a result, companies should include societal needs in their activities (Secchi 2007). On the other hand, ethical theories state that there are ethical values that bind society and businesses together. Clearly, these theories do not view businesses from the economic aspect of profit-making. The profit-making aspect corresponds to the utilitarian theories, which do not consider other aspects that occur inside and outside the business environment. The analysis has revealed that both Unilever and BAT have made their mission and goals compatible with CSR (Secchi 2007).

The two companies should understand that the future is full of new technological inventions; therefore, they should adopt new tactics that will enable them to continue serving the communities at that time. BAT, for instance, should expand its educational awareness program given that children continue to mature at an early age as this may avoid cases of children using tobacco products. In addition, the global world requires Unilever to adjust its corporate strategy on CSR, as there will be numerous social actors. Steady and effective regulations and adequate corporate CSR will make employees enjoy their work hence effectively engaging in social activities. BAT and Unilever can position themselves as social enterprises to enable the public to have close contact with their products and CSR. Social enterprises predominantly focus on eliminating social problems such as malnutrition, famine, and unemployment in society. In the future, these firms should have moral practice as a training course within their premises. This approach will impart knowledge and skills to its stakeholders about the importance of CSR. The continued interaction among people easily leads to loss of morals (Janice 2011). Since the benefits of CSR are not direct, these companies should put more value on the indirect benefit than their competitors. Clearly, an attempt to engage in CSR creates a positive impact on the environment and people. The firms should also have numerous initiatives that may assist them in protecting the environment such as using renewable sources of energy in running their factories, just like the Apple Company.

CSR is an initiative that requires the involvement of all businesses irrespective of their sizes and locations. For instance, any negative actions on the environment will affect all the businesses even if they are the actors or not. If a company emits effluents into the surrounding, environmental pollution becomes prominent. Such an effect affects everything on earth. It should be a government policy that all businesses should outline their strategies on CSR before launching their operations.

References

Baker, M 2004, Definitions of corporate social responsibility – What is CSR?, Mallen Baker’s CSR, Web.

Blowfield, M & Murray, A 2010, Corporate Responsibility (2nd ed.), Oxford University Press, Oxford.

CSR governance 2012, British American Tobacco, Web.

Corporate Social Responsibility (CSR) n.d., Welcome to New Zealand Trade and Enterprise, Web.

Corporate social responsibility 2009, British American Tobacco, Web.

Energy 2012, The Environmental Literacy Council, Web.

Janice, J 2011, The Theory of Corporate Social responsibility and the Challenges it faced under Globalization, iphoneproj2011 | The Life Cycle of an iPhone, Web.

Matten, D., Moon, J. & Siegel, D 2009 The Oxford Handbook of Corporate Social Responsibility (eds.), Oxford University Press, Oxford.

On Corporate Social Responsibility and The BAT Foundation – Ventures Africa 2012, Ventures Africa – African Business, Financial & Economic News, Stock Quotes, Web.

Secchi, D 2007, Utilitarian, Managerial and Relational Theories of Corporate Social Responsibility, International Journal of Management Reviews, vol. 9, no. 4, pp. 347–373, Web.

Unilever Factories and Logistics Reduce CO2 by 1 Million Tonnes 2013, Corporate Social Responsibility and Sustainability, Web.

Unilever Sustainable Living Plan Helping to Drive Growth 2013, Corporate Social Responsibility and Sustainability, Web.

For this discussion, I decided to focus on Unilever which is a multinational company of consumer goods, headquartered in the city of London, England. This organization’s products include food, drinks, cheese, tea, ice cream, baby foods, water, chewing gum, coffee, pet food, and many other different goods. Concerning this company’s strategic direction, it can be concluded that it has a clearly defined and specific strategy. This business believes in the power of sustainable business and desires to contribute to the creation of a world where every person can have a good life within the limits of the planet (“About our strategy,” n.d.). I resonate with the main purpose of this organization and wish more modern companies would focus on the concept of sustainability to ensure better living for the generations to come.

In my opinion, this company does not need to change its strategic direction. This claim is primarily based on the fact that this company’s main goal is to make people’s life better by providing them with high-quality goods as well as having a small impact on the environment they live in. In addition, the problems of climate change, global warming, and the extension of endangered species are becoming more and more relevant and significant. Therefore, by taking part in the sustainability movement, the company shows an example to individuals and encourages them to contribute to positive change in the contemporary world. That is why there is no reason to say that Unilever’s strategic direction needs modification or complete change. It is perfect as long as the organization does what it claims and cares about creating a better life for human beings.

Reference

About our strategy. (n.d.). Web.

Introduction

Corporate social responsibility is increasingly becoming part of the competitive strategies of profit oriented and even non-profit inclined organisations. Firms have been realising a gap in their strategic plans because of the failure to pay attention to corporate social activities (Porter and Kramer 2002).

Corporate social activities and strategic management cannot be easily separated from firms that are embracing modern management practices (Bhattacharya, Korschun and Sen 2009). In this paper, it is argued that corporate social responsibility links the firm with their stakeholder, and most importantly, with the customers of the firm.

The Unilever Company has been pursuing strategic management in an attempt to improve the competitiveness of the company on the global scale. Unilever has been including and executing corporate activities in its strategic plans.

This paper thus discusses how corporate social activities inform strategic management in Unilever. The paper also discusses the benefits of including corporate social responsibility in the strategic plan of the company.

Mission and business objectives of Unilever

Unilever has expanded and carries out its operation in more than one hundred countries around the world. The growth in the company has been attained through the help of business objectives of the company. Success in business often comes from the articulation of business practices and business objectives.

The objectives of the company have been inclined towards helping the company gain a considerable share of the market amidst the competition that exists in the market. Corporate social goals have been crafted and included in the strategic objectives of the company so as to facilitate the growth path.

The mission of Unilever is to create a product that will satisfy its customers on a sustainable basis. The company sets several objective and activities to help it in achieving its mission (Unilever Website 2012).

The objectives of the company centre on three main issues that include increasing business growth, increasing the social impacts of the company, and aiding in the attainment of a safe environment. Just like any other business company, the major objective of the Unilever is to attain growth through penetrating into the market. Sustainability and social development come as secondary objectives.

They are supportive to the main objectives of the company and are included in what is called corporate governance or corporate management. Corporate social responsibility is discharged through these objectives. The two objectives have been found to be very supportive of business objectives of firms.

Therefore, firms are often forced into it because they have to meet their major business objectives. Organizational success is dependent on how a firm interacts with its environment.

CSR has been found to be a better way through which a firm can interact with its business environment. Unilever has thus been active in including corporate social plans in its strategic management activities (Unilever Website, 2012).

Strategic Change and Corporate Social Responsibility in Unilever

According to Emerald (2012), corporate social responsibility is a recent phenomenon in management. Implementation of corporate social responsibility in firms is quite costly and challenging for firms. This is because the societal stakeholders often demand a lot from the organisation that might not be met since firms strive to maximise profits.

As firms include corporate social activities in their operations, they must remember to balance between their profit making motives and the pursuance of corporate social responsibilities (Yuan, Bao and Verbeke, 2011). Porter and Cramer (2006) observed that firms often pursue CSR in a haphazard manner, and this prevents them from attaining business goals.

CSR is beneficial to firms if it is pursued in a strategic manner and is included in the strategic plans of the firm. While consuming the finances of a firm, corporate social responsibilities can help firms in making huge profits by virtue of enticing and making customers have strong attachments to the organisation (Yuan, Bao and Verbeke, 2011).

Firms have to embrace changes from time to time because of dynamics in the business environment. The changes are often meant to help firms in adapting to the changing nature of business thence remaining profitable (Jones and Bartlett, 2009). Attaining a strategic direction is one of the core objectives of changes that take place within organisations (Smith, 2009).

From the beginning of the beginning of the 21st century, Unilever has been very active in strategizing and implementing strategic changes. The most important development in the company from the year 2000 has been the step by step integration of major business processes in its strategies (Mirvis, 2011).

This includes corporate social governance that has been fully incorporated and executed by the management of the company. These changes have aimed at helping the company contain competition for other global giants that are dealing in similar products.

The competitor firms like Procter and Gamble have been very active in corporate social activities termed as one of their main tools of market entrance and sustainability (Emerald 2005). These changes have been characterised with increased collaboration and partnership of the company with the community.

The company has become increasingly involved in supporting many initiatives within the society. Notably, the company has continued to attain big shares through the adoption of these strategic changes despite the high competition that exists in the market (Smith 2009).

The interaction with the society through CSR has been resourceful in the continued development and implementation of strategic plans. The firm can discover new needs in the market and thus work on developing products that meet the emerging needs in the society.

This is how Unilever has managed to come up with many new products that still gain access and acceptance in the market. Combining corporate social responsibility and strategic plans of the company are critical in doing business. This is one way through which brand awareness is easily enhanced.

Therefore, CSR is one of the components of branding that have helped Unilever to develop and maintain strong brands in the market (Emerald 2005).

A good example of how the Unilever Company has driven business through corporate social responsibility can be exemplified by real cases. The company that has operated in Indonesia since the year 1933 has re-crafted its goals. The company now employs aspects of corporate social responsibility.

These goals include the halving of environmental footprint for its products, aiding people in the country in raising their health standards, and sourcing its raw products using sustainable mechanisms. The company management ensures that all these goals are incorporated in both the short and long term goals of the company and that they drive the company towards profits.

By including the goals in the strategic plan of the firm, CSR activities are separated from philanthropic and charity work, which are often short-term projects. Corporate social activities are run as part of the internal goals of the internal goals of the company and are pursued on a long-term basing. They often contribute both directly and indirectly to the outcomes of the company (Hidayati 2011).

Having fully employed CSR in strategic management, the company implements CSR through programs that are run both on short-term and long-term bases. Sustainable development is implemented as part of the external, corporate social activities of the company (Emerald 2011).

The company sponsors many sustainability programs being undertaken by other organizations in the society besides running their own programs. The company strongly participates in environmental campaigns across the globe.

The company also does this internally by promoting environmentally friendly technologies and inputs in the production of its products. This adds value to the products of the company thereby giving them a considerable competitive strength over other products (Unilever 2000).

Conclusion

Corporate social responsibility is a recent subject in management. However, it is very important in enhancing firms’ competitiveness. This happens when it is implemented alongside the strategic objectives of an organization. It has become very vital in as far as firms aim to formulate new competitive strategies in the management. Corporate social responsibility comes with a big cost to an organization.

However, this cost is often offset when strategic plans combing social, corporate activities help in positioning a firm in the market. Unilever has adopted strategic changes since the year 2000. With the incorporation of corporate social activities in the strategic plans for change, the company has managed to remain competitive in the industry that has many strong players.

Reference List

Bhattacharya, CB, Korschun, D and Sen, S 2009, “Strengthening Stakeholder–Company Relationships Through Mutually Beneficial Corporate Social Responsibility Initiatives,” Journal of Business Ethics, vol. 85, no. 2, pp. 257-272.

Emerald 2005, “Can Unilever create a masterpiece? Competition challenge to a consumer-goods leader,” Strategic Direction, vol. 21, no. 5, pp. 11 – 14.

Emerald 2011, “Reputation reward for ethical firms: CSR adds to prestige – and the bottom line,” Strategic Direction, vol. 27, no. 8, pp. 15 – 17.

Emerald 2012, “Unilever’s vital shift in direction: New mission transforms lumbering giant,” Strategic Direction, vol. 28, no. 2, pp. 6 – 8.

Hidayati, ND 2011, ‘‘Pattern of corporate social responsibility programs: a case study,” Social Responsibility Journal, vol. 7, no. 1, pp. 104-17.

Jones, K and Bartlett, JL 2009, “The strategic value of corporate social responsibility: A relationship management framework for public relations practice,” PRism, vol. 6, no. 1, pp. 1-16.

Mirvis, P 2011, “Chapter 2 Unilever’s Drive for Sustainability and CSR – Changing the Game, in Susan Albers Mohrman, Abraham B. (Rami) Shani (ed.) Organizing for Sustainability,” Organizing for Sustainable Effectiveness, vol. 1, no. 1, pp. 41-72.

Porter, ME and Kramer, MR 2002, “The Competitive Advantage of Corporate Philanthropy,” Harvard Business Review, vol. 80, no. 12, pp. 56–68.

Porter, ME and Kramer, MR 2006, “Strategy and Society: The Link between Competitive Advantage and Corporate Social Responsibility,” Harvard Business Review, vol. 84, no. 12, pp. 78–92.

Smith, WS 2009, ‘‘Vitality in business: executing a new strategy at Unilever,” Journal of Business Strategy, vol. 30, no. 4, pp. 31-41.

Unilever Website, 2012, Our sustainability strategy. Web.

Unilever 2000, Unilever’s approach to corporate social responsibility. Web.

Yuan, W, Bao, Y and Verbeke, A 2011, “Integrating CSR Initiatives in Business: An Organizing Framework,” Journal of Business Ethics, vol. 101, no. 1, pp. 75–92.

Unilever is a leading Dutch-British multinational company (“About Unilever” par. 1). It is currently “headquartered in London, United Kingdom, and Rotterdam, Netherlands” (Zisa 12). Unilever is “known for its superior spreads, cleaning agents, food materials, beverages, and personal care products” (“About Unilever” par. 2).

Unilever’s leading brands include “Knorr, Lipton, Hellmann’s, Blue Band, Suave, Axe and Dove” (“About Unilever” par. 2). The corporation markets over 400 brands in different nations. The firm’s products are designed to promote the wellbeing and health of its customers. The company uses a powerful business model in order to support its goals. This discussion presents a SWOT matrix for Unilever.

SWOT Matrix

Works Cited

About Unilever. 2015. Web.

David, Fred, and Forest David. Strategic Management: Concepts and Cases, Upper-Saddle River, NJ: Prentice Hall, 2014. Print.

Haroon, Amara and Shakil Ahmed 2013, Assessing relationship among performance, managerial practices, and sales force Automation: A study on Unilever & Dalda Pakistan. Web.

Progress Report 2012: Unilever Sustainable Living Plan 2013. Web.

Wolf, Sabrina. Unilever Case Study, Munich: GRIN Verlag, 2014. Print.

Zisa, Letizia. An Analysis of Unilever’s Legal Form, Financial Performance and Business Strategy, Munich: GRIN Verlag, 2014. Print.

Unilever is an international consumer product manufactures like foods, personal care products, cleaning agents, and beverages; the company is listed in Rotterdam stock exchange in Netherlands as Unilever and London stock exchanges in the United Kingdom Unilever PLC, the company was founded by Samuel van den Bergh, Antonius Johannes Jurgens, and William Hulme Lever Viscount Leverhulme on 1^st January 1930.

To remain competitive in the changing business arenas, the company has enacted a number of strategic management tools aimed at creating competitiveness in the company.

Current chief executive officer and non executive chairman Paul Polman and Michael Treschow are keen on developing strategies that are responsive to changes in the international business environment; the company’s main competitors are Nestlé, Reckitt Benckiser Henkel, and Procter & Gamble (Unilever Official Website, 2011).

This paper takes an internal and external analysis of the company; it will uses S.W.O.T. and P.E.S.T.L.E. analysis as the strategic tools of analysis.

Strengths

Through the years, the company has been able to build a strong brand name as well as develop strategic alliances and partnerships with those companies that can lead to an effective business. For the last 10 years, the company has been sect oral leader in Dow Jones Sustainability Indexes an indication of the ethical behavior and code of conduct adopted.

One of the strongest areas that the company has is the sales and marketing strategies, the policies enacted ensures that the company’s products reach the target market in the right form and quality.

The marketing department in collaboration with the research and development departments surveys the market and advice the company on the kind of products they are supposed to make depending with the country of operation.

For example in developing countries, the company has come up with some products that cost less than a dollar; this has been made possible by packaging the products in smaller quantity and affording to sell cheaply (Zi-Lin, Kwanghui and Pho-Kam, 2006).

Unilever management has appreciated that human resources are the most valuable resource for the company; according to the company’s website, in 2010, the number of employees from all the companies branches amounted to 167 000, drawn from more than 22 nationalities.

The diverse human capital is well blend and managed by the company’s human resources department; they are encouraged to give their contribution to the business for an effective operation (Horngren, Srikant & George, 2006).

In modern business environments, technology is used for various purposes; Unilever uses the technology of different advancements to facilitate its businesses. Information systems are used as communication method within the company as well as when communicating with the external stakeholders like shareholders and customers.

Internally the computerized systems include supply chain management systems, human resources management systems (when talking of human resources, not all operation are computerized the computerized ones include leave applications, payments and rewards), and communication systems like internet and intranet.

It is the company’s policy to keep updating its systems for better functioning (Jones, 2005). Being a multinational, the supply of materials and finished products is an important segment; the company always ensures that products get to the final consumer in the best possible quality and quantity.

To get supply of quality materials at an affordable rate, the company has an effective supply chain management system and maintains health relationship with its suppliers, and distributors. The company has a program called business partner code and supplier audit program which has the main goal of ensuring there is good relation with suppliers.

Other than having employed qualified and experienced accounting officers in the Finance & Accounting department; they recruit officers at the level of experienced officer, professionals at different levels and graduate trainees.

The profit margin of the company has continued to grow, in 2008, it had a contribution margin of 17.7 % this was up from 6.7% in 2000. The strength of the company’s share has been on an upward rise a move that has contributed to an increased demand for the share in the stock exchange.

To remain relevant and produce products that meet consumer needs, Unilever has a robust Research & Development Management team; the team is mandated with the task of advising the company on the best method and approach to marketing and products development.

To get information, the department takes data and information from different places and countries so as it can advise the management effectively (Carlon, 2009).

Weakness of Unilever

Although the company has been successful in international business arenas, there are some weaknesses that can be seen in its production methods and strategies.

One weakness is how to manage diverse cultures and still maintain uniformity of products made; different people need different products when the company decides that similar products will be made across the globe, and then some people stand to lose.

Another challenge that the company has is how to differentiate its products from those of its competitors using other parameters other than packaging.

Building a strong brand name using such an approach is becoming a challenge to the management. In the wake of fast technological development, the company has been caught off guard with technologies that are driving the business of its competitors; this has lead to lose of business.

External analysis of the company

Businesses are affected by external environments that they are operating; the effects are either positive or negative. The world is having an increased growth in population and economic living; majority of the world’s population are the youth who are using Unilever’s products.

Increased population is an increased demand for the company’s products but at the same time it calls for the management to be robust in coming up with products that will meet changing demands of the demographics. As peoples living conditions improved, the company is enjoying an increased demand for its products leading to economical gains (Penrose, 1995).

The rate of technological development facing the world is a benefit to the company; at the same time there are some challenges that the fast development is posing to the company.

Technology has enabled the company to have effective business processes that are able to yield high returns to the company, they include computerized management systems like supply chain management and logistics management (Sadler, 2003).

The world economic situation is improving from global financial crisis of 2007; when the economy was undergoing the crisis, the company sales were negatively affected, however with the current recovery, things are lightening up. In 2009 and 2010, the company recorded increased sales which are a positive indication of the company’s growth in strength.

Business at the global level has been facilitated by globalization, technology and communication networks growth; Unilever is fast diversifying its operations to take advantage of new markets that are coming up as a result of improved global business environment.

In modern globalizing world, Unilever stands to benefit as it can sell its products in the international markets; the political environment in the scenes is favorable for business thus it can diversify its processes to other countries other than the country of incorporation.

When operating the different countries, the company has to respect and uphold the country of operation laws and code of doing business.

The improved business environment comes with some challenge to the company: the issues facing the company can be traced from globalization where it has created some challenges to the company; the challenges come because there is an increased competition from international companies offering similar services.

Competition is coming from multinationals and domestic companies thus the company has to be on its toes to ensure that it stands strong amiddt the high competition (Neave, 1998).

Recommendation to remain stronger amidst the changing market

It is a high time that the company invests in diversification of its products; it should consider producing other products in line with those it is doing now, for instance it can start making designer perfumes.

The company is doing well in the manufacturing industry, however there is need to differentiate its products not on the packaging only but involve other aspects like tastes and different products.

The changes and treads in business is calling for strategic management processes in all the companies units; the management should make use of the research and development department more and seek advice on the kind of strategies to adopt.

Some of the strategies that can see the company perform better are total quality management (TQM), six sigma management, international human resource management and talent management.

References

Carlon, S. et al. (2009). Accounting: Building business skills. New York: John Wiley & Sons.

Horngren, T., Srikant M., & George F. (2006). Cost accounting: A managerial emphasis. Boston, MA: Pearson Prentice Hall.

Jones, G. (2005) Multinationals and global capitalism: From the nineteenth to the twenty-first century. Oxford: Oxford University Press.

Neave, E. H. (1998). Financial systems: Principles and organization. London: Routledge.

Penrose, E. (1995). The theory of the growth of the firm. New York: Oxford University Press.

Sadler, P., (2003). Strategic Management. Binghamton: New Down Press.

Unilever Official Website.(2011). Unilever. Web.

Zi-Lin, L. Kwanghui and Pho-Kam, W. (2006). Entry and Competitive Dynamics in the Mobile Telecommunications Market. Research Policy. 35(8), pp. 1147-1165.

There is no use denying the fact that different peoples have different peculiarities of culture and, that is why, they have different points of view on some issues. These differences are determined by the conditions under which people live and the environment which makes them behave in a certain manner. That is why, it becomes obvious that some patterns of behaviour, peculiar to one country, will seem strange or even unacceptable in another.

Modern age can be characterized by the great development of different means of transport and communication, that is why, it is easy nowadays to communicate with representatives of other cultures. Additionally, huge international corporations also have their departments in different states. Under these conditions, the issue of customization obtains great significance.

Customization is the process of the adaptation of a product to the peculiarities of local culture and mentality. It means that a company should analyse the target market and take into account its main tendencies. Only having done it, a company should create its advertising company and introduce a new product. It is obvious, that the issue of customization is especially vital for huge international companies. Unilever is a company of this sort. Its headquarters are situated in Rotterdam and London, though it operates all over the world, every year trying to obtain new benefits. With this in mind, it is also possible to say that customization of its products is an important aspect of the functioning of Unilever company as it owns over 400 brands and operates in almost all countries of the world (“About” para. 2).

Under these conditions, it is vital for this company to take into account the needs of people from different continents. There are several industries which suggests great possibilities for customization. It is possible to see these areas with the help of table1. Though, Unilever group owns great number of brands which also mean customization.

There are several main reasons for it. First of all, the main point, which should be outlined as the positive side of customization, is the ability to introduce certain good to the market faster (Sherman para. 2). There is no use denying the fact, that some time is needed for the targeted audience to understand the main sense of a new good. However, this time depends on the way in which this good is presented. If its advertising company is created in accordance with the demands of Western society, a good will not be popular in the East and on the contrary. That is why, good customizing strategy can lead to the decrease of its term.

Additionally, good customization can increase loyalty of population of a country where a product is going to be distributed. The thing is, that very often some products, which do not take into account peculiarities of the culture, can trigger mass protests or even conflicts. There is a great number of examples in the world trade connected with it.

Besides, even wars can become the result of this conflict. Indian Rebellion of 1857 happened because of the oiling made of cow fat, which was sacred animal for people in India (Eliason para. 11). That is why, it is absolutely vital for any company to take into account peculiarities of peoples mentality and culture before introducing some good.

However, it is also obvious that a company, which gives much attention to customization, will obtain marketing benefits. Well chosen customization strategy will obviously promote increase of the popularity of good. Trying to develop better understanding of the character of a good or service, a company will make great efforts to place information about it everywhere for people to be able to see it and get to know about some new services or goods. With this in mind, it is possible to say that this practice can be very efficient.

Customers will obtain more information connected with the issue while a company will obtain benefits (Andrews para. 3). It is obvious that Unilever also uses this practise (“Unilever Group in Health and Wellness” para. 4). Great sums of money are spent every year on advertising companies or special meetings which main aim is to show peculiarities of a new product (“Unilever Calls on Unify Square to Improve Global Communications” para. 7).

The next reason is one of the most important for the functioning of the whole company and can serve as the best evidence of the benefit of customization. The thing is that giving much attention to the development of clear and understandable image of a good in a certain country, a company also increases the level of incomes connected with the sales of this very product (Bain Insights para. 4). In other words, the better customization is organised, the higher the level of income can be expected.

The work of the Unilever company proves this statement. The thing is that it is one of the most beneficial companies in the world with the high level of incomes and good future. However, it became possible due to its successful customizing company as Unilever has great number of its branches all over the world and in every country the brand of the company has another look, or even title (“About” para. 7). Additionally, advertising company is also different. However, despite the fact that great amount of money is spent on these issue, the incomes of the company increase.

Moreover, customization of products can lead to the creation of the positive image of a company. There are several aspects of this statement. First of all, it should be said that customizing its goods, a company shows that it cares about the main needs of people who will buy them (Spaulding and Perry para. 7). That is why, its image becomes better. Additionally, trying to reorganize the process of manufacturing of some goods in accordance with the demands peculiar to targeted audience, a company very often creates some new brands and opens its factories and plants which leads to creation of new workplaces and promoted increase of the popularity of a company.

At last, customization of products of a company can lead to the constant popularity of a company and help it to remain in a season (“Benefits Of Customization” para. 4).

With this in mind, it is possible to admit a great importance and significance of the issue of customization, especially under modern conditions. There is no use denying the fact of the efficiency of this remedy within the framework of globalisation of modern society. Main benefits of this issue can be illustrated with the help of the following scheme.

With this in mind, it should be said that it is possible to recommend to use this very issue in order to obtain benefits and promote development of a company on international level (Titlow para. 5). Additionally, is seems impossible nowadays to ignore its main aspects as huge international companies deal with a great number of people who belong to different cultures and have different mentalities. With this in mind, it is possible to conclude that advantages of the usage of customisation are indisputable.

Works Cited

“About”. Unilever. com. n.d.

Unilever Calls on Unify Square to Improve Global Communications. n.d.

Andrews, Kelly. Giving the People What They Want: How Mass Customization Is Taking Advantage of the Customer Revolution. n.d. Web. 16 May, 2015.

Bain Insights. “Having It Their Way: The Big Opportunity In Personalized Products”. Forbes. 2013.

Benefits Of Customization. n.d.

Eliason, Erik. “3 Reasons Why Mass Customization is the Future of Consumer Products”. Huffington Post. 2012.

Piller, Frank, Fabrizio Salvador and Dominik Walcher. “The Market for Mass Customization Today”. InnovationManagemet.

Sherman, Erik. “Mass Customization: Let Your Customers Have It Their Way”. Inc. com.

Spaulding, Elizabeth and Christopher Perry. Making it personal: Rules for success in product customization. 2013.

Titlow, John. “Why User-Customized Products Are the Future of Business (For Real This Time)”. Readwrite.

Unilever Group in Health and Wellness. 2014.

Abstract

Unilever Company is operated by two parent companies which are Netherlands-based Unilever N.V. and UK-based Unilever PLC. It is one of the largest makers of consumer based goods. The product strategy, distribution strategy, communication strategy and pricing strategy that the company has applied over the years has been the main driving force towards its success. In addition, the company has majorly concentrated on the products preferred by consumers.

Its entry in to developing markets has also fanned its growth and success. The reception in such markets was enormous thus any attempt to oust unilever from these markets has not been fruitful. It still dominates the developing markets and some of developed markets.

Unilever Company profile

Unilever Company is a top manufacturer of packaged consumer goods globally. Its products vend in more than 170 countries through out Western Europe, Latin America, Africa, Middle East, North America and Asia. The company offers several categories of products. The paramount sellers include mayonnaise, tea, soaps and antiperspirants. Unilever is the working arm of Unilever PLC and Unilever N.V.

Mission statement

‘Meeting the everyday needs of people everywhere’

Product strategy

Unilever is going by the inexpensive pricing strategy of Hindustan unilever limited in markets with recession such as the US. It offers products through dollar stores to consumers.

This is a fraction of a recent Unilever strategy to increase its earnings from recession-hit emerging markets such as China, India and Brazil which have been growing more rapidly. Product strategy is considered a management process (McGrath, 2001).

Distribution strategy

Unilever has established plants in the 170 countries where their products are vended. The company distributes its products using the plant names in the market. For example in India, the distributor is Hindustan Unilever Limited. In UK, the distributor is Unilever PLC.

Anonymity conceals the company’s significance. Unilever trades using brand names. Everyone knows its brand names. Distribution strategy must always be considered before marketing process (Rolnicki, 1998).

Pricing strategy

Unilever Thai Holdings Ltd, a large consumer products maker, have taken up a new pricing strategy, offering customers up to 20 per cent discount the usual prices of its products, and setting the phase for ferocious competition in this sector.

The firm has reduced its marketing and advertising expenses to hold up the new strategy as more customers have less expenditure ability and confidence, as they are affected by the decrepit economy (Baker, 2010, et al.).

Global business environment and the countries selected market

Currently emerging and already existing companies that produce similar products as unilever are restrategizing and entering the market. These companies have majorly concentrated in developed countries. This includes the whole of Europe, parts of Asia, South America and Australia.

Although unilever vends its products globally, it has mainly conquered the markets in developing countries. These include Africa, Latin America and parts of Asia. It has divided its products to meet market specification. In these developing countries, the competition is low thus unilever enjoys the market dominance.

Competitive environment

As a result, of the competition in most countries unilever vends products in appropriate markets. Unilever manufactures consumer packaged products used mainly at home.

The stiff competition present in the 170 countries that unilever operates makes the company to perform selective vending. For example, the ice cream and dressings are not vended in developing countries like Africa, as there are low sales and are not considered basic requirements.

Instead, they are retailed in Europe and some parts of Asia where there are more sales. The same applies to products like Omo, dove, Lux and Rexona which are majorly vended in developing countries. This is because they are considered basic requirements; as a result, there is a ready market.

Target market

Unilever has got a wide target market which includes both domestic and general utilities. These markets include drinks and domestic products. In each market, there are specific products that are retailed. The products include soaps, drinks, spreads (blue band) and ice cream (Kurtz, 2009, et al.).

Communication strategy

Unilever communicates with its customers by use of media and bill boards for advertisement. This is a strategy most companies employ. As a result, Unilever wants to use the Internet in order to perk up brand communication, advertising and on-line selling.

It will also simplify business-to-business connections a long the distribution chain. Unilever has lately awarded an Indian firm an IT contract. Unilever has made contact with several software developers to facilitate this project. The use of visual and audio communication means is widely employed by many companies (Jones, 2008).

Impact of culture

Culture has played a big role in dragging and speeding the prosperity of Unilever Company. When the company first entered the markets in undeveloped countries, for example, Africa, it faced many challenges. The personal care and home care products that are vended in Africa took long to be accepted in the market.

This is so because the communities were still conversant with their traditional modes of personal and home based care. Once these products were accepted, the presence of new products from other companies faced massive rejection. This resulted to their withdrawal. Thus, unilever products still dominated.

Key management issues

Changes were recently made in the company’s top administration. It has started selling off any subordinate companies that are earning less profit, and ‘decentralized’ control of subsidiaries. The Head Quarter in Europe just scrutinizes profit margins and making sure they are maximized. This resulted in cutting of expenditure like reducing workers pay.

References

McGrath, M. (2001). Product strategy for high technology companies: accelerating your business to web speed. New York: McGraw-Hill Professional.

Rolnicki, K. (1998). Managing channels of distribution. New York: AMACOM Division of American Management Association.

Baker, W. Marn, M. & Zawada, C. (2010). The Price Advantage. New Jersey: John Wiley and Sons.

Kurtz, D. Mackenzie, H & Snow, K. (2009). Contemporary Marketing. Toronto: Cengage Learning.

Jones, P. (2008). Communicating Strategy. Gower Publishing limited.