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 Strategic Management
• Strategic management involves setting objectives,
analyzing the competitive environment, analyzing the
internal organization, evaluating strategies, and
ensuring that management rolls out
the strategies across the organization.
• Role of strategic management:
One of the major role of strategic management is to
incorporate various functional areas of the organization
completely, as well as, to ensure these functional areas
harmonize and get together well. Another role of
strategic management is to keep a continuous eye on
the goals and objectives of the organization.
 Bangladesh and Industry
Factors
• Bangladesh is increasingly being recognized as a fast-
emerging South Asian subregional consumer market.
Though the size of the middle class—at less than 10
million in a total population of 150 million—is relatively
low compared to neighboring India’s, there is ample
evidence to note the changes in consumers’ buying
behavior. Coupled with aggressive distribution by
marketers, branded packaged goods have contributed to
the sector ’s growth. Categories such as hair oil,
detergents, milk powder, and toothpaste recorded
double-digit growth rates. Multinationals such as Procter
& Gamble (P&G), Johnson & Johnson, Nestlé, and
Unilever have experienced an encouraging surge in
sales of their products in Bangladesh.
• Fast-moving consumer goods (FMCG) include personal
care, home care, packaged foods and beverages, and
the like, which are low priced, widely available, and
frequently purchased consumer products. In the
Bangladeshi economy, the FMCG sector is one of the
largest sectors that is currently growing fast and it is
expected to maintain a high growth rate. The FMCG
markets can be broadly divided into urban and rural
segments. The urban segment, comprising nearly 30
percent of the population, is characterized by high
penetration levels and high-spending propensity of the
urban residents. The rural economy is largely dependent
on agriculture as a means of livelihood and there are
relatively lower levels of penetration and a large
u n o r g a n i z e d s e c t o r .
 Unilever
• The parent companies Unilever PLC and Unilever NV
make up the Anglo-Dutch consumer goods multinational
company set up in 1872, well known for its old and new
brands of products such as Lifebuoy, Sunlight, and
Ponds, as well as Pureit water purifiers.
• Unilever Bangladesh (UBL) is a successor to the
operations of Lever Brothers in undivided India and then
in Pakistan. After the formation of Bangladesh in 1971,
Lever Brothers Bangladesh came on its own although it
already had a soap manufacturing unit at Chittagong, set
up in 1964. In 2004, the company’s name was changed
to Unilever Bangladesh Limited, with 60.75 percent
shares owned by Unilever and the balance owned by the
government of Bangladesh.
 Goals
• Unilever products touch the lives of over 2 billion people
every day – whether that's through feeling great because
they've got shiny hair and a brilliant smile, keeping their
homes fresh and clean, or by enjoying a great cup of tea,
satisfying meal or healthy snack.
• Unilever simplified their goals and we have mentioned it
here and tried to make an analysis:
• 1. They are precise and measurable.
• 2. They address important issues.
• 3. They are challenging but realistic.
• 4. They specify a time period.
 Planning at Unilever: A Closer Look
• In Unilever, most plans within the organization are
embedded within the overall strategic plan. Here we
examine the steps involved in formulating and
implementing a planning and decision making and how
that plan drives operating and unit plans. Figure charts
what can be viewed as an archetypal planning and
decision making process of Unilever Bangladesh Limited.
• The main planning cycle of Unilever is-
Planning Cycle
 Business-Level Strategies
• Unilever’s strategic managers adopt different business
level strategies to use the company’s resources and
distinctive competencies to gain competitive advantage
over its rivals. These are:
❖ They follow cost-leadership strategy as they have
intermittent over capacity and the ability to gain economies
of scale. This way they can produce cost effective products
and yet be profitable.
❖ They also follow differentiation strategy for some
products to meet the needs of the consumers in a unique
way.
❖ They also target different market segments with different
products to have broad product line. By product
proliferation they reduce the threat of entry and expand the
range of products they make to fill a wide variety of niches.
 Corporate strategy
• UBL carries out the following corporate level strategies:
• ❖ They involve in short term contracts and competitive
bidding for the supply of raw materials.
• ❖ They have a diversified business. UBL has both
related and unrelated diversification.
• ❖ They compete in nine different industries with various
products from home care, personal care and even food
products. They have economies of scope as most of the
products can share the same manufacturing facilities,
inputs and specially the distribution channels.
 Action Plans and Implementation
• As noted earlier, action plans specify precisely how
corporate-level, business-level, and operating strategies
will be put into effect. Action plans include sub goals,
responsibilities,time lines, and financial budgets.
• Once Unilever action plans have been drawn up and all
members of the organization know what they are
supposed to do to execute the plan, it is on to
implementation. At the most basic level, strategy
implementation consists of putting action plans into effect.
• At a higher level of abstraction, however, Unilever
Bangladesh ensure the right kind of organization
structure, incentives, control systems, and culture, as
well as the right mix of people. Put differently, strategy is
implemented by people, but the way that people work is
influenced by the internal organization of the enterprise.
 Analysis:
Our findings are
• Unilever is focusing more on sustainable growth than
profit,
• Decreasing environment pollution in manufacturing
goods and products,
• Increasing positive social impact,
• Minimizing direct impact on nature and improving
hygiene, nutrition, opportunities and health for
communities,
• Trying to get the newly emerging markets.
 Operations Management
• The manufacturing operations of UBL are based at
Kalurghat in Chittagong where there is a soap
manufacturing unit and a personal products
manufacturing plant. In addition, there is a tea packaging
operation in Chittagong. At Dhaka, the capital city, there
are three manufacturing units privately owned and
exclusively dedicated to UBL. Supply-chain management
is a critical function for an FMCG company as efficient
procurement and logistics of inputs are crucial. Supply
chain occupies a prime position in the top management
structure where there is a supply chain directorial
position. The supply-chain director is responsible for a
range of activities encompassing manufacturing, quality
management, and supply-chain management.
Human Resources Management
• The human resources function has an executive director
overseeing the various functions. Broadly, the functions
include factory personnel functions/industrial relations,
recruitment, training and development, labor welfare,
personnel services, and security. Jerry Jose holds this
position currently. Industrial relations or the factory
personnel functions are managed by factory personnel
manager and training and development activities are
supervised by manager for human resources
development. Employee welfare activities are looked
after by an assistant manager for labor welfare,
personnel services are performed by the factory
personnel manager along with the office services
manager and a security officer is responsible for all the
security services.
 Conclusion
• The operations of multinational corporations (MNCs) in
developing countries have been a controversial issue
under scrutiny for a long time. There are supporters that
laud the contributions of MNCs to developing economies
and critics that accuse them of being exploitative. When
Unilever operates in a developing economy like
Bangladesh that is also predominantly a Muslim nation, it
treads a rocky ground where controversies can arise.
Like elsewhere, there are undercurrents of suspicion
against the operations of MNCs in Bangladesh.
• The fact that Unilever has been found to be involved in
price fixing and false advertising in other countries also
raises suspicions. There are also concerns about the
consistent refusal of MNCs including UBL to offload part
of their shareholding through the country’s two stock
exchanges to strengthen the capital markets. No wonder
MNCs like Unilever Bangladesh have to tread a thin line
while operating in developing economies that are
increasingly becoming conscious of their own economic
status in a rapidly globalizing world.
• Notes:
• The “unorganized sector” is sometimes known as the
“informal economy.” It refers to all economic activity that
escapes the rules and regulations of the normal
economy.