Student Name:Muhammad Abdul Moeed

Student Id:14857
Sir:Amir Hamza
Strategic Management
Assignment#2
UNILEVER PAKISTAN
Introduction:

In the 1890s, William Hesketh Lever, founder of Lever Brothers, wrote down his ideas
for Sunlight Soap – his revolutionary new product that helped popularise cleanliness
and hygiene in Victorian England.

It was “to make cleanliness commonplace; to lessen work for women; to foster health
and contribute to personal attractiveness, that life may be more enjoyable and
rewarding for the people who use our products”.

Vision:

Our vision is a new way of doing business – one that delivers growth by serving society
and the planet. Our dedicated section for investors. Read about our strategy,
governance and shares.

Mission:

Unilever’s corporate mission is “to add vitality to life. We meet everyday needs for
nutrition, hygiene and personal care with brands that help people feel good, look
good and get more out of life.”

Brands:

Food and drinks

 Lipton
 Blue Band
 Wall's
 Rafhan (corn oil)
 Pearl Dust
 Knorr
 Glaxose-D
 Cornetto (ice cream)
 Magnum (ice cream)
 Brooke Bond
 Fruttare
Personal care
 Clear - Anti-dandruff shampoo range.
 Close Up - Toothpaste
 Fair & Lovely - Fairness products.
 Lifebuoy shampoo
 Lifebuoy soap - Soap & handwash range.
 Lux - Soap, hand & bodywash.
 Pond's - Talcs & beauty creams.
 Rexona - Deos and Anti-perspirants.
 Sunsilk - Shampoo range.
 Dove
 Pepsodent

Home care
 Comfort - fabric softeners
 Rin - detergent
 Surf Excel - detergent and gentle wash.
 Domex
 Vim
Social Responsibility:
Unilever’s corporate social responsibility (CSR) contributes to the strength of the brands
of the consumer goods business. According to Archie Carroll’s theory, companies have
social responsibilities to stakeholders. At the same time, stakeholders significantly affect
business performance. In the case of Unilever, these stakeholders include consumers,
employees, investors, suppliers, and communities. The company’s corporate citizenship
and social responsibility strategy prioritizes these stakeholders according to their
importance to the business. As a major firm in the global consumer goods market,
Unilever utilizes its corporate responsibility strategy as a supporting approach to
maintaining industry position and business sustainability.

Our values & principles

Our Corporate Purpose states that to succeed requires "the
highest standards of corporate behaviour towards everyone we
work with, the communities we touch, and the environment on which
we have an impact."
Our values define how we do business and interact with our colleagues, partners, customers and
consumers. Our four core values are integrity, responsibility, respect and pioneering. As we
expand into new markets, recruit new talent and face new challenges, these guide our people in
the decisions and actions they take every day.

Always working with integrity

Doing business with integrity has always been at the heart of our corporate responsibility
commitments. Integrity defines how we behave, wherever we are. It guides us to do the right
thing for the long-term success of Unilever.

Positive impact and continuous improvement

We aim to make a positive impact through our brands, our commercial operations and
relationships, voluntary contributions and various other ways in which we engage with business
partners and society at large. We're also committed to continuously improving the way we
manage our impacts and our longer-term goal of developing a sustainable business.

Setting out our aspirations

Our Corporate Purpose sets out our aspirations in running our business. It's underpinned by our
values and, equally importantly, our Code of Business Principles, which since 1995 describes the
operational standards everyone at Unilever must follow, wherever they are in the world.

The Code of Business Principles is supported by 24 internal Code Policies that provide a
framework of simple Musts and Must Nots that apply to all employees and others working for
Unilever.

Working with others

We want to work with suppliers, agents, distributors and other business partners who have values
similar to ours and uphold the same standards as we do. Our Responsible Sourcing Policy and
Responsible Business Partner Policy, aligned to Unilever’s Code of Business Principles, seek to
uphold twelve fundamental principles covering business integrity including specific
responsibilities relating to employees, consumers and the environment.

Unilever’s reputation for doing business with integrity and with respect for the interests of those
our activities can affect is an asset, just as real as our people and brands. Our first priority is to be
a successful business: that means investing for growth and balancing short term and long term
interests. It also means caring about our consumers, employees and shareholders, our business
partners and the world in which we live.

To succeed requires the highest standards of behaviour from all of us. We want our Code of
Business Principles, related Code Policies and third party compliance programme to have a
positive impact in day-to-day business: each one of us must uphold these at all times.

Commitment:
Unilever is committed to a working environment that promotes diversity and equal opportunity
and where there is mutual trust, respect for human rights and no discrimination. We will recruit,
employ and promote employees on the sole basis of the qualifications and abilities needed for
the work to be performed.

Customer service and account management

At Unilever, we work closely with our customers to pioneer new products, categories and
concepts.

In a Customer Development role with the Unilever Future Leaders Programme you’ll experience
all facets of Customer Development, from account management to trade management and
customer service.

Unilever develops leaders

Our global learning programmes are regarded as the best in the industry. We have internal
academies for each business area designed to develop employees in functionally specific
capabilities.
Unilever Factory:
Global Partnership:
Global partnerships are a vital part of our business model - which recognises that
growth for Unilever is inextricably linked to our ability to have a positive social impact
and reduce our environmental footprint.

To achieve these ambitions, we need to create transformational change - and we

cannot do this alone. Through global partnerships, we work with other stakeholders who
share our commitment, such as UN agencies, non-governmental organisations, social
impact investors, foundations, and government organisations.

Safety & environmental assurance centre

Safety is an essential element of a successful and sustainable business. We take our
responsibility to protect our consumers, our employees and the environment we live in
very seriously.
Safety comes first
Our dedicated Safety & Environmental Assurance Centre plays a central role in
providing independent assurance and support for our products and processes. Safety
decisions are made independently of commercial considerations.

Wide-ranging expertise
The centre is based at Colworth, UK, and is responsible for carrying out the assessment
and approval of product and supply chain technology design, considering consumer
safety, occupational safety and the environment. We have experts in chemistry,
environmental science, mathematics, statistics, modelling, medicine, microbiology,
occupational & process safety, physical hazards and toxicology.

Tackling complex issues

Our multidisciplinary project teams tackle complex issues, and highly challenging
projects, working in partnership with R&D colleagues from the initial stages of product
development and scientific research to approve new ingredients, technologies &
processes, applications & uses and novel delivery routes.

World-class reputation
Safety is about making decisions on what risks are acceptable and what are not. Risk
Assessment is the core process used to identify hazard, quantify exposure and thereby
determine potential risk. Based on Risk Assessment, a risk management decision can
be made including any control measures necessary for the safe use of ingredients and
processes for new and existing Unilever products. Our team has gained a world-class
reputation and plays a key role in developing international methods and approaches in
this area.

Working with others

Our scientists interact with policy makers, regulators and other authorities, contributing
to the development of safety legislation. We also work with a variety of organisations,
companies and trade associations, using our up-to-date scientific knowledge to promote
and improve standards in consumer safety, occupational safety, and the environment.

The aim is to assure the safety of consumers, customers, employees and the
environment everywhere we operate.

Market structure:
Company structure
Our operating model is designed to deliver faster decisions. Learn more about our
senior corporate officers and the Unilever Leadership Executive.

UPL Board of Directors

Amir Paracha – CEO
Amir Paracha is the Chairman and Chief Executive Officer of Unilever Pakistan Limited.
He joined the Board on 1st February 2020.

He joined Unilever Pakistan in 2000 and has held various senior management positions
in Pakistan and North Africa Middle East cluster over his 20 years with the Company.
Prior to taking over as the CEO, in his role as VP Customer Development, he helped
deliver solid results and maintained a strong growth mindset, successfully inspiring a
transformative vision for the future.

Amir continues to actively experiment with disruptive business models and has
championed inclusion across the Unilever ecosystem in Pakistan.

Amir began his career at the Royal Dutch Shell Oil company in July 1996 and has done
his Masters in Business Administration from the Institute of Business Administration.

Uniliver enjoys equity of 70.4% and has the opportunity of being the largest FMCG
multinational. Its multiple brands play an integral part in improving and promoting
hygiene, health and nutrition along with helping low income consumers to view life
positively.

PRODUCT MIX: Set of all product lines and items that a particular seller offers to sell.
Unilever’s product mix consists of the following product lines

Cooking and eating

Beauty and style

Around the house

Unilever food solutions

PRICING STRATEGIES:
Market Skimming Strategy: Through this strategy Unilever tends to generate maximum
revenue from the innovators and early adopters. This strategy, as we all know, is only
effective if Unilever is launching a new product which has no potential competitors, in
short we mean to say “INNOVATIVE PRODUCT”.
Market penetration strategy:
Through this strategy Unilever tries to grab the market share through low pricing. This
usually is the case when Unilever is trying to market those products which are the basic
necessities of life.

For Example:
Pearl Dust

Lifebuoy Soap and shampoo

SEGMENTATION: Unilever uses LSM (Living Standard measures) and SEC (Socio-
economic Class) to segment the market for its products.

NEW BRANDS:
Unilever has produced entire new products also in a completely new category and with
a new name. For example:

Comfort fabric softener.

Close up toothpaste.

DISTRIBUTION CHANNELS:
Unilever has a B2C distribution channel which includes the company itself, the
wholesalers, retailers, and the customers. It basically uses a pull strategy for promotion
of its brands, focuses more on communication and is the only consumer goods
company that gives the lowest markups to retailers. They use their specific company
owned distributors.

Promotion:
Supply chain

Performance culture
We make 2 billion Magnum ice creams a year. That’s a serious amount of enjoyment
and just one example of the value we add to the lives of the 2.5 billion consumers using
our brands every day. Our Supply Chain plays a vital role in getting our goods to
customers and consumers, from sourcing raw materials to manufacturing and delivering
the end product. We play a big role in delivering Unilever’s sustainability mission too.

Our end-to-end Supply Chain leverages eight disciplines: engineering, manufacturing,

procurement, logistics, customer service, planning, quality and safety, so you can
develop your career in our leading-edge organisation.

Unilever Sustainable Living Plan

From sustainable sourcing to sustainable manufacturing and logistics, Supply Chain
makes a huge contribution to our USLP. We’ve reduced our environmental impact by at
least a third, while growing from a €40 billion to an almost €50 billion company.

By working with suppliers through our Partner to Win programme we expect to reach
100% sustainable sourcing for agricultural raw materials. For example, in Kenya, we
train 350,000 smallholder tea growers in sustainable practices with the Kenya Tea
Development Association.
 Unilever's impressive supply chain
 We are ranked in the Top 10 supply chains in world by Gartner (number one in Europe)
 We are one of the largest contract logistics companies in the world, second only to DHL
 We are on track to reduce our carbon footprint by 40% by 2020
 We have 150,000 customers globally who we serve with a range of almost 60,000
products
 We source more than 200,000 different materials from 160,000 suppliers who work with
up to a million smallholder farmers
 We run more than 250 factories which produce 130,000 tea bags every minute, 1 billion
deodorants annually and 2 billion Magnums every year
 We collaborate with the Lotus F1 grand prix team to build a performance culture in our
Supply Chain
Key Internal Factors

Key Internal Strength

Weighted
Strengths weight Rating score
Largest producer 0.1 4 0.4
Advance Technology 0.1 4 0.4
Supply Chain Management 0.05 3 0.15
Financial Backing 0.1 3 0.3
Experience Top Management 0.1 3 0.3
No competitor in the market is offering such a product 0.05 4 0.2
Comparative Affordability, Accessibility, Portability 0.05 3 0.15

Key Internal Weakness

Weighted
Weakness weight Rating score
Largest producer 0.1 2 0.2
Tall Organization structure 0.05 2 0.1
High Operating expenses 0.05 2 0.1
High Production expenses 0.05 2 0.1
Long Term Strategies 0.1 2 0.2
Emphasize on some Products 0.05 2 0.1
A completely dirty shirt cannot be immediately washed 0.05 1 0.05
Total 1.00 2.75

Key External Factors

Key External Opportunities

Weighted
Opportunities weight Rating score
Hygiene Conciousness 0.1 4 0.4
Increasing Population 0.1 4 0.4
Innovation 0.1 2 0.2
Product Diversification 0.1 3 0.3
Explore New products 0.05 3 0.15
Price is affordable 0.05 4 0.2
Currently there are no direct competitors 0.05 4 0.2
 Key External Threats
Weighted
Threats weight Rating score
Products Smuggling 0.15 1 0.15
Increased Demand for senitizers 0.05 3 0.15
Counterfiet Products 0.05 3 0.15
International trends 0.05 1 0.05
Local Competition 0.05 4 0.2
Entrance of competitors 0.05 3 0.15
Political Instability 0.05 3 0.15
Total 1.00 2.85

Competitive Profile Matrix:

Unilever Pakistan Jhonson&Jhonson P&G

Weighted Weighted Weighted
Critical Success Factors weight Rating score Rating score Rating score
Quality Products 0.1 3 0.3 4 0.4 4 0.4
Attractive Prices 0.1 3 0.3 3 0.3 4 0.4
Brand Quality 0.05 4 0.2 3 0.15 4 0.2
Distribution Channel 0.05 2 0.1 3 0.15 4 0.2
Innovation 0.1 3 0.3 3 0.3 3 0.3
Market penetration 0.1 3 0.3 4 0.4 3 0.3
Product Capacity 0.05 4 0.2 2 0.1 4 0.2
Management Experience 0.05 4 0.2 2 0.1 4 0.2
Market share 0.05 4 0.2 2 0.1 4 0.2
Customer Service 0.05 2 0.1 3 0.15 3 0.15
Financial Position 0.02 4 0.08 3 0.06 3 0.06
Organization Structure 0.08 4 0.32 3 0.24 3 0.24
Sales Distribution 0.1 4 0.4 3 0.3 3 0.3
Successful Promotion 0.05 3 0.15 4 0.2 3 0.15
Customer Relation 0.05 2 0.1 4 0.2 3 0.15

Total 1 3.25 3.15 3.45

Analysis:

The CPM analysis reveals that P&G is the strongest player in the industry with relative strengths
in market share,distribution channels, Brand Quality and Innovation.On the other hand,Unilever
prevails in frequency updates, marketing capabilities Financial Position Sales distribution.
Jhonson & Jhonson is the weakest in all of them and doesn’t have any relative strengths against
itsrivals.Thecompanies should create their strategies according to their strengths and weakness
and improve their ratings in the most significant industry’s areas.

Uniliver SWOT analysis

A SWOT analysis is a framework that is used to analyze a company’s competitive

positioning in its business environment.This can be used by Unilever, and will involve the
identification of its internal Strengths (S) and Weaknesses (W) followed by the identification
of the Opportunities (O) and Threats (T) it faces in its extensivelyrnal business environment.

 trengths-Opportunities Strategies (SO): This involves using internal strengths to take

advantage of opportunities.
 Weaknesses-Opportunities Strategies (WO): This involves improving on the company’s
weaknesses by making use of the opportunities.
 Strengths-Threats Strategies (ST): This involves the using of strengths to minimize the
weaknesses.
 Weaknesses-Threats Strategies (WT): This involves the elimination of weaknesses to
combat the threats.

Strengths of Unilever
 Distribution and Reach: Unilever has a large number of outlets in almost every state,
supported by a strong distribution network that makes sure that its products are
available easily to a large number of customers in a timely manner.
 Cost Structure: Unilever’s low cost structure helps it produce at a low cost and sell its
products at a low price, making it affordable for its customers.
 Dealer Community: Unilever has a strong relationship with its dealers that not only
provide them with supplies but also focus on promoting the company's products and
training.
 Financial Position: Unilever has a strong financial position with consecutive profits in the
past 5 years, along with accumulated profit reserves that can be used to finance future
capital expenditures.
 Unilever has a large asset base, which provides it with better solvency.

Weaknesses of Unilever
 Research and Development: Even though Unilever is spending more than the average
research and development expenditure within the industry, it is spending way less than
a few players within the industry that have had a significant advantage as a result of
their innovative products.
 High Day Sales Inventory: The time it takes for products to be purchased and sold are
higher than the industry average, meaning that Unilever builds up on inventory adding
unnecessary costs to the business.
 Rented Property: A significant proportion of the property that Unilever owns is rented
rather than purchased. It has to pay large amounts of rent on these adding to its costs.
 Low current ratio: The current ratio that shows the company’s ability to meet its short
term financial obligations, is lower than the industry average. This could mean that the
company could have liquidity problems in the future.
 The company has low levels of current assets compared to current liabilities, and this
can create liquidity problems for it in operations.

Opportunities of Unilever
 Internet: there has been an increase in the number of internet users all over the world.
This means that there is an opportunity for Unilever to expand their presence online; by
using the internet to interact with its customers.
 E-commerce: There has been a new trend and a growth in sales of the e-commerce
industry. This means that a lot of people are now making purchases online. Unilever can
earn revenue by opening online stores and making sales through these.
 Social Media: there has been an increase in the number of social media users
worldwide. The three social media platforms; Facebook, Twitter and Instagram, have
shown the greatest number of increase in monthly active users. Unilever can use social
media to promote its products, interact with customers and collect feedback from them.
 Technological developments: technology comes with numerous benefits among many
departments. Operations can be automated to reduce costs. Technology enables better
data to be collected on customers and improves on marketing efforts.
 There has been an increase in average household income along with an increase in
consumer spending following the recession. This will result in growth in Unilever’s target
market with new customers that can be attracted towards the business.

Threats of Unilever
 Technological developments by competitors; New technological developments by a few
competitors within the industry pose a threat to Unilever as customer attracted to this
new technology can be lost to competitors, decreasing Unilever’s overall market share.
 Suppliers: The bargaining power of suppliers has increased over the years with the
decrease in the number of suppliers. This means that the costs of inputs could increase
for Unilever.
 New entrants: there have been numerous players that have entered the market and are
gaining market share by gaining existing companies’ market share. This is a threat to
Unilever as it can lose its customers to these new entrants.
 Increasing competition: there has been an increase in competition within the industry
putting downward pressure on prices.
 Political uncertainties in the country prove to be a barrier in business, hindering
performance at times and making the business incur unnecessary costs.
 Strengths Weaknesses

1. Unilever has a Strong Distribution network 1. A high proportion of property in

with a large number of outlets.
2. It has a low-cost structure, which provides it
with an advantage over the competition.
3. It has a strong financial position with positive
profits reported in the past few years. It also
has a strong asset base.
4. It has a skilled labour force that is highly
qualified, innovative and diversified.
5. It has a strong presence on social media
use by Unilever is on rent, and
rental charges need to be paid.
2. Low amounts of spending on
research and development as
compared to the competition.
3. It has a high employee turnover
rate, with low employee
motivation and working morale.
4. It has liquidity problems with
low quick ratio; the level of
current assets is less than
current liabilities. It also faces
cash flow problems.

Opportunities SO Strategies WO Strategies

1. Internet users are increasing around  (S1, S3, O3).  (W1, O5).
the world. E-commerce is also growing  (S5, O2, O3).  (W3, O3)

2.
with the increase in internet usage.
Social media users are increasing
 (S2, S4, O4).
worldwide.  (S2, O3).
3. Household income is increasing and
so is the consumer spending. Inflation
in the economy is expected to remain
low.
4. Growth in environmentally friendly
products and services. Government is
offering subsidies on these.
5. Interest rates are low, which provides
an investment opportunity for large
projects.

Threats ST Strategies WT Strategies

1. There is a threat of new entrants  (S1, T1).  (W2, T4).

coming into the market.
 (S3, T4).  (W3, T4).
2. The exchange rate has been
devalued.  (S4, O3).
3. Fuel price has risen in recent
years making inputs expensive.
4. Competition within the industry is
increasing.
5. More substitute products are now
available.
 SPACE MATRIX DIEMENSIONS
Space Matrix
The space matrix, another important stage 2 matching tool
Its four-quadrant framework indicate whether aggressive, conservative, defensive or
competitive strategies are most appropriate for a given organization
The axes of the space matrix represent two dimensions
1. Internal:
 Financial Strength F.S
 Competitive Advantages C.A
2. External:
 Industry Strength I.S
 Environmental Stability E.S

Space Matrix construction

Financial Position

10% increase in net income +5

Net sales was 15.7% +4

Roa is declined to 24% +1

Roi has declined +2

Total asset turnover is tow times +3 =15/5=3

Competitive advantage

Committed to business ethics safety environment and community -1

Customer loyality -1

Market share of 41% -2

Control over supplies and distribution -4

Latest state of the art facilities and technology -1 =-9/5=-1.8

Industrial Position

Consumption oriented culture +4

Rapid increase in raw material cost +2

Growth potential in rural and developing countries market +5

Profit potential is reducing due to intense competition +2 =13/4=3.25

Environmental stability

Demand in retail industry is price inelastic -3

Smuggled product and local competition -3

Legal political and regulatory factors of the host country -2

High rate of inflation effects demand -3

Law and order situation -2 =-13/5=-2.6

Direction vector co ordinate

X-axis IP+CS

=3.25-1.8=1.45

Y-axis

F.S+E.S

3-2.6=0.4
Conservative F.S Aggressive

+6

+5
F.S
X-Axis = 1.45
+4
Y-Axis = 0.40
+3

+2

+1

C.A I.S

+1 +2 +3 +4 +5 +6

-6 -5 -4 -3 -2 -1 -1
-2

-3

-4

-5
__
-6

DEFENSIVE Competitive

E.S

Defensive Competitive
Conclusion:

Uniliver is already doing well and has to sustained in the market.Launch affective and
aggressive market compaign.Ensure tough competition to competitor strategies.The income
of uniliver is also increases and net sale increase by 15.7 % customer loyality is at best and
also committed to safety environment and community Growth potential in rural and urban
areas market is the best.But returned on investment is decrease legal politically and
regularity factors of the host country is acceptable law and order situation is also good for
uniliver.