SLIDA

STRATEGIC MANAGEMENT
 EXECUTIVE SUMMERY

In this paper, I have chosen the Unilever Sri Lanka business as a case study for the strategic
management process to be investigated. For starters, we established a clear understanding of the
company's vision, purpose, values, goals, and objectives in order to evaluate its key performance
indicator (KPI) strategies. I have investigated the external and internal variables that have an
impact on the company's strategic decision-making process. I spent more time thinking about
Unilever's SWOT analysis and how they are using the same elements to accomplish their strategic
goals than I did before. After that, learn about the corporate governance and social obligations of
the business you are working for. Finally, they determined that adjustments in corporate-level
strategy were necessary.
 UNILEVER SRI LANKA

Unilever Sri Lanka is a consumer products business headquartered

in Colombo. Unilever, a UK multinational consumer products
corporation, owns 100%. It sells food, cosmetics, personal care,
pharmaceuticals, and children's goods. Unilever Sri Lanka was
founded in 1938 as Lever Brother Ceylon Limited. Unilever Sri Lanka
was established in 1972 after a rebranding. Unilever Sri Lanka has
been named the country's most valued and recognized brand. With
almost a dozen brands in Sri Lanka since the 1940s, Unilever
completed the world's biggest and most important manufacturing complex in 2012 at Horana's
industrial zone. About 96 percent of the goods are made in Sri Lanka, while over 20 brands are
sold abroad.
VISION STATEMENT

MISSION STATEMENT

VALUES

Living the Unilever Code of Business Principles is a team effort. Much of Unilever’s
strength lies in the shared values of our people.
• Integrity
• Respect
• Responsibility
 • Pioneering
They engage with suppliers, distributors, and other third parties to raise the standard on
topics like human rights and anti-bribery and corruption. Unilever's Business Integrity initiative
helps all workers live their values and implement their ethical standards daily. Their Code of
Business Principles is backed up by strong processes and controls to help us prevent, identify, and
react to any improper behavior. Working with ethics makes Unilever stronger. In addition, it helps
us pick the finest suppliers and business partners. It safeguards their employees, assets, reputation,
and stakeholder relationships. It facilitates internal and external collaboration. Finally, it helps us
achieve their Unilever goal.

OBJECTIVES

➢ Every day, work to build a better tomorrow.

➢ Ensure that consumers enjoy life by improving their appearances and creating products and
services that benefit both them and society.
➢ It will motivate individuals to participate in a number of little activities that, together, will
bring about an incredible benefit to the planet.
➢ They'll build a new corporate strategy that allows their firm to quadruple its business size
while keeping a foot on the planet.

GOALS

➢ Growth in market share

➢ Clearer product differentiation
➢ Long term brand value to customers
➢ Decrease customer acquisition costs 8% per year
➢ Creating and launching new products / services – ‘Innovation’
➢ Focus on customer care (cosmetics)
➢ Reduction in energy cost and better use of operational energy
➢ Focus on emerging markets
➢ Driving innovation
 KPI

In order to accomplish the management's goals, the KPI is a kind of measurement

instrument used inside the business. The KPI may be configured for various levels, divisions, or
the whole organization. It is anticipated to attain a high degree of performance and goal
accomplishments inside the business. As such, Unilever's primary goal is to increase sales revenue,
thus the company's KPIs are as follows.

Increase the A primary goal of the plan is to raise sales by 10 percent from the present sales
sales by 10% level, which is anticipated to be achieved with the first parameter. The
business may get more profits by putting more effort into marketing as well
as paying for new marketing methods.
Increase the In light of the Unilever 's present market share, it is clear that the firm has a
market share 70% share of the market. The firm intends to expand its market share by 10
percent by using certain promotional tactics..
Reduce the It is thought that customers would decrease their complaints and share their
customer current opinions about the firm's performance when marketing techniques are
complaints used. The business may get consumer feedback by having the public
participate in surveys and engaging them with their own brand and
merchandise.
Increase the This KPI makes it so that the business may have a large number of loyal
repeat and consumers who buy their goods over and over again. The service has to be
loyal improved to make consumers happy. The business may also use their loyalty
customers card system, which would boost the return on their investment in the
consumers.
KEY BUSINESSES
 ORGANIZATION EXTERNAL ANALYZE

PESTEL Analysis

Political Factors
In Sri Lanka, the business has a lot of political power, and this study focuses on it. In the
industry, rules and regulations that are exclusive to it are seen as political elements, while the
minimum and maximum prices of the market are regarded of importance in understanding the
politics of the sector.

Economic Factors
The cost percentages that the customers paid out of their income, as well as how much
disposable money they had were looked at to judge the economic variables involved in this
conclusion. Additionally, it takes into account customer behavior as well as the other economic
variables like FMCG industry soap sales.

Social Factors
The social influences involved include societal rituals and traditions, as well as other
aspects that affect consumer purchasing habits. Also, the behavior of customers to buy goods
influences the purchasing patterns of consumers in the soap market, which then also influences
Unilever's sales.

Technological factors
They're looking at the innovations in technology, advances in production systems, and the
incorporation of new methods into the company's production process. The technical variables
affect a company's manufacturing costs and production output. This is distinct from other
companies in the sector that face more competition.

Environmental factors
The research tries to determine if a change in production at the soap factory has positive or
bad environmental consequences.
Legal factors
Legal issues are associated with industry rules and regulations, as well as how the customer
responds to the company's marketing strategy. The legal and political situations of the nation are
intertwined. The business has to investigate the many rules and regulations that may impact them
in the future.

As an overall conclusion, it is important to analyze all of the PESTEL elements as it will

tell how connected the business is to the Unilever brand, and how environmental changes influence
the company's future operations.

ORGANIZATION INTERNAL ANALYZE

Strengths
➢ Over 110 years in Sri Lankan market, this well-known brand is widely known amongst
consumers.
➢ Brand development is being enhanced by the global corporation, Unilever, which has
existed for some time.
➢ Skilled executive level workers and members of the management team of the business.
➢ Well-known and high-ranked brand in Sri Lankan business

Weaknesses
➢ Market competitors are given less weight in the decision-making process.
➢ A high level of self-assurance in the brand and the goods of the organization
➢ The lack of attention paid to new product differentiations in recent years has been a source
of concern.
➢ Less chance for lower-level workers inside the business to communicate their thoughts to
the company's upper-management.

Opportunities
➢ As a They’ll-known brand, the business has the ability to expand the brand's reach by
offering a variety of connected goods.
 ➢ Considers the usage of healthy materials in an environment where consumers are more
health aware in today's society.

Threats
➢ Other competing brands with various brand names are becoming more prevalent in the
market.
➢ Increase the usage of FMCG products since they are more convenient to use.

➢ There are many brands on the market with names that sound similar to Unilever's in
pronunciation.

DEVELOPED STRATEGIES TO DEAL WITH SWOT

Unilever’s strategy (Porter’s model)

Unilever's approach is wide differentiation. This broad approach emphasizes on unique

characteristics that set the goods apart from rivals. Unilever, for example, makes Dove Cream Bars
to meet customer demand for gentle soaps. In spite of their high retail pricing, Unilever's products
compete with rival soaps that concentrate on cleansing rather than moisturizing. The firm utilizes
this method to target particular groups. This comprehensive approach aligns with Unilever's vision
and goals, which promote global sustainability and consumer vitality. Growing Unilever via
aggressive product development is a competitive strategy of generics. The goal is to create goods
that stand out from the crowd and attract consumers. However, the generic approach's financial
goal is to increase Unilever's revenue in high-growth countries. Unilever's PESTEL/PESTLE study
revealed many options. Combining these strategic goals improves products and profits for the
consumer goods industry.
Unilever’s strategies

Market Penetration (Primary Strategy).

Market penetration is Unilever's primary growth strategy. The company raises sales
volume to improve revenue and business growth. Unilever, for example, heavily promotes its
home care products in current markets including the US and Canada. These aggressive tactics help
the firm steal consumers from competitors. Unilever utilizes generic differentiation to make its
products more attractive and competitive. This aggressive worldwide marketing approach aims to
extend Unilever's global reach.

Product Development (Secondary Strategy).

Unilever uses product development as a supplementary strategy for expansion. To fulfill
consumer expectations, the company's growth plan is aggressive. Unilever, for example,
continuously improves personal care products to maintain or increase market share. In line with
the company's consumer goods differentiation strategy. Unilever's product development
procedures, for example, need product distinctiveness to differentiate. This targeted approach
helps the business accomplish its strategic goal of continual product innovation. This improves
Unilever's marketing and product mix.

Diversification (Supporting Strategy).

Unilever promotes rapid development via diversity. This aggressive approach focuses on
company growth. For example, Unilever acquired Sara Lee's personal care division in 2009-2010
to diversify. Unilever's purchased brands allow this ambitious expansion strategy. This aggressive
strategy aims to continue the business's merger and acquisition trend. This trend expands
Unilever's worldwide customer reach.

Market Development (Supporting Strategy)

Unilever's company uses market expansion to grow. Expansion into new markets or market
divisions. Unilever may expand by presenting its existing goods as a new solution to unmet needs
in niche sectors like baby care. It pervades virtually every consumer products sector. Unilever's
ambitious expansion plan is therefore secondary. This generic differentiation approach offers
competitive advantages for new market categories. Unilever's market development strategy
includes promoting the added value of its existing goods.

CORPORATE GOVERNORS AND CORPORATE SOCIAL RESPONSIBILITIES

Following key CSR activities can be considered,

➢ Improving the quality of life, the well-being of communities, and the environment
➢ They are contributing to the improvement of the health of the world.
➢ They help them to base themselves in their deep-seated commitment to environmental
protection. Many efforts have been implemented to date in order to minimize their
environmental impact.
Their Horana facility uses rainwater collecting,
trash footprint reduction, thermal energy
recovery, greenhouse gas reduction, and
renewable energy to combat climate change.
Their Ceytea plant has substantially decreased
their use on fresh water from a deep ground
well, decreasing their water footprint and
positively impacting production, climate change, and local populations.
They are also pioneers in collecting plastic trash from consumers and the environment,
working with stakeholders since 2013 to collect and treat plastic packaging from consumers, land
and waterways. They aim to improve people's health, confidence, and happiness. Every year they
provide goods that are good for you. For example, Lifebuoy is committed to teaching handwashing
in schools, while Signal is committed to educate Sri Lankans on healthy dental hygiene practices.
Simply cleaning, brushing, sanitizing, or using their products supports these causes. Thanks to
Lifebuoy, Signal, Sunlight, and Knorr, who have dedicated to creating a better Sri Lanka by being
a force for good, they have positively touched close to 10 million Sri Lankans.
They help create a more just and inclusive society. Their welcoming culture includes
individuals from all backgrounds. Their Management Committee is 55% female, their staff is 31%
female, and they aim for 50:50 gender diversity by 2023. They have also touched over 8,000 kids
this year alone via programs including webinars, skill development engagements, student
ambassador projects, guest lectures, panel debates, and more.
They also strive to improve the lives of their suppliers and partners. Their main women's
empowerment program, Saubhagya, enables 5,000 women to make a living by selling Unilever
goods to their neighbors. Through Project Sunshine, they have taught 2,700 small business owners
how to operate profitable and competitive companies.

CHANGES IN THE BUSINESS LEVEL STRATEGIES

The business has a duty to discover unmet consumer requirements in the market and
provide necessary services with required product characteristics. The business may use the
following methods to discover unmet requirements.

Focus Group
Focus groups assist companies discover problems with their services or products and help
them connect with consumers. This focus group is made up of corporate customers who assist
discover and discuss product related issues.

Employee consultations
Discussions with workers help obtain employee suggestions regarding product
improvements and unmet market requirements.

Customer polls
Conducting electronic or paper customer surveys helps the business discover consumer
requirements and desires. Satisfied and loyal consumers see client feedback as the most essential
element to maintain operating. The customer survey helps to discover unmet requirements and
desires, as well as consumer comments and complaints.
Creating a Market Execution
A good execution strategy is required to create targeted market strategies inside the
business. The company's goal is to grow market share and revenues in future operations. To make
the operations successful, the business must do the following actions.

Set goals
The business may then push the workers to manage the activities and obtain the best result
from them. Employees who are well-informed on the marketing effort's goals will perform
successfully.
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