STRATEGIC MANAGEMENT

1. Introduction

The consumer goods giant Unilever is

headquartered in the United Kingdom and the Netherlands,
and it exports its wares to 190 countries worldwide. The
company's extensive variety of products and services, which
includes food, personal care, and cleaning chemicals, as
well as its large number of distinct brands, demonstrate its
Figure 1: Unilever Logo commitment to risk diversification. There are twelve companies
here with annual sales of over a billion euros. Every day, 2.5 billion individuals throughout the
world utilize a product made by Unilever, demonstrating the company's significance. Their
website boasts that they employ 161,000 people throughout the world. The company's long-term
goal is to lessen the damage it does to the natural world while simultaneously expanding its
positive impact on society. (Unilever Global: Making sustainable living commonplace, 2022).

In 1929, Unilever
was founded by businesses
in the Netherlands that
produced margarine and in
Britain that produced soap.
The first margarine factory
in the world and a second
one in Oss, Netherlands
merged to become the
Netherlands margarine
business. By enclosing their
factory, a soap
manufacturer influenced the
Figure 2: Road Map industry and improved
public health. The company's name is a combination of the former Margarine Unie and the
current Lever Brothers brands. The company's brand portfolio has been effectively trimmed from
1,600 to 900 since the year 2000. Brand sales increased by 87 in 2002. Alberto Culver, the parent
company of TRE Semmé and other brands, was acquired by investors in 2010. The merger of
these two businesses is expected to be the firm's largest purchase since 1929.

In Colombo, you'll find the headquarters of

Unilever Sri Lanka, a manufacturer of various
consumer goods. One hundred percent of the
company is owned by Unilever, a British
multinational consumer goods firm. Food,
toiletries, drugs, and kid-friendly products are all
on offer. In 1938, Lever Brother Ceylon Limited
(the forerunner of Unilever Sri Lanka) was
established. After a rebranding effort in 1972,
Unilever set up shop in Sri Lanka. The most
valuable and well-known brand in Sri Lanka is
Unilever Sri Lanka. Since the 1940s, Unilever has
been producing over a dozen different brands in Sri
Lanka. In 2012, the company finished building the
Figure 3: Brand Categories largest and most significant manufacturing
complex in the world in the Horana industrial zone. Roughly 96% of the products are
manufactured in Sri Lanka, and over 20 different brands are exported.

Figure 4: Products Range

2. Unique values of the business

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. (Unilever Mission Statement, Vision & Values -
Vomma, 2022).

3. Customer centric approach of Unilever

The fact that the business is consistently

increasing its values in the eyes of customers all around
the world gives it an edge over its competitors.
Additionally, it owns a varied portfolio of top brands,
which has allowed it to achieve a one-of-a-kind position

Figure 5: Unilever Customer and innovate in accordance with the tastes of customers
all over the world. Additionally, it has undertaken
projects in its Research and Development department, which are well-funded, in order to adapt to
the shifting requirements of its customers. It conducts research and development activities in the
United States of America, the United Kingdom, China, and India. Unilever has been able to
reduce expenses and develop competence in its distribution channels as a direct result of the
production facilities it maintains in around 270 sites throughout the globe. Because of its direct-
to-consumer business strategy, Unilever has been able to position itself as the most major FMCG
Company. This is possible because Unilever has a deep awareness of the requirements of its
customers. In the beginning of its marketing effort, Unilever did the same thing by establishing a
connection between the customer and the brand. (Moolchandani, 2022).

Research and development in Unilever's product creation is the single most important
component of the company's overall business strategy, which is why these efforts are prioritized
alongside marketing efforts. Unilever was able to anticipate the shifting requirements of their
target market and incorporate those requirements into their product development. More than 900
million euros were put into the company's research and development division in only 2017. It is
not simple to maintain a dominant market position for a century, much less do it by capturing the
affection of the people who buy your product. Unilever would be able to maintain this level of
success because to the devoted sustainable and customer-centric business model it employs.
(Enabling Unilever’s Consumer-Centric Strategy | Discuss, 2022).

4. Good marketing practices of Unilever

4.1 Unilever's Marketing Strategy

FMCG marketers
plan and execute a wide
range of activities and
programs to benefit their
clients and win their
loyalty. These activities
and programs are all
interconnected in some
manner. Therefore, the
Figure 6: Market Segmentation term "marketing mix" may
be used to describe the
interplay of product, pricing, distribution channel, and advertising in the fast-moving consumer
goods sector. (Anderson and Woolley, 2002).

4.2 Unilever’s Marketing Mix

Each of Unilever's product lines has a special niche in the market because to the
distinctive set of features and advantages that it provides. There is a difference in pricing
between the various kinds of items. Almost every marketing instrument that is accessible is used
for promotional purposes by Unilever. Over 190 countries are now stocking items manufactured
by Unilever. The many Unilever brands all take somewhat different approaches to branding, yet
they all use the same Unilever logo, design, idea, and message. Each of the 25 icons in its
emblem symbolizes one of the 400 brands owned by Unilever. Unilever has about 165,000
employees in over 100 countries, and a vast distribution and retail infrastructure. Bottles and
packets of plastic make up the bulk of Unilever's packaging. It's possible to buy them at mall
shops, regular retailers, and even on the web. (Marketing mix and strategies of Unilever, 2022).

Figure 7: Marketing Mix

 Unilever customers may be categorized by age, income, and the services or goods they
require. Unilever's customers span generations. Personal and home care caters to 14-to-50-year-
olds with moderate to high incomes. Food consumers starting at age 5 want tasty, healthy meals.
Unilever's products comprise the costs of production, packaging, marketing, distribution, and
other expenditures. Unilever uses a range of communication channels and researches new ones.
Unilever customers buy products at megastores, online shops, and retail stores. Unilever
competes fiercely for prime retail sites. (Kissinger, 2022).

Figure 8: Target Market

5. Vision of the business and its strategic direction

5.1 Vision Statement

Consumers, in particular, are targeted in this vision statement. Unilever's vision statement
includes the following:
 Sustainable living is commonplace in many communities.
 The most effective strategy in the long run
 The expansion of a company

Unilever's business vision

statement emphasizes the importance
of everyday sustainability. To
highlight the company's attempts to
adapt its goods to the current market
circumstances, this component is used.
Unilever, for example, helps
customers achieve their aims of
incorporating sustainability into their
Figure 9: Unilever Product at Supermarket
daily lives via sustainable design for
home care and personal care goods. Also stated in the company's long-term strategy is that
routine sustainability is the greatest path for the company. Sustainability and other market
developments impacting the sector are important to Unilever. In addition, the company's mission
statement shows its belief that sustainability is a means of ensuring long-term corporate success.
Unilever's corporate social responsibility approach is aligned with this vision statement, which is
aimed at addressing business stakeholders in the consumer products sector. (Unilever Mission
Statement, Vision & Values - Vomma, 2022).

5.2 Business Strategic

5.2.1 BCG Analysis

BCG created BCG matrix. Matrix is also a

company. Dissecting each component of the BCG
matrix framework may help firms in many sectors.
Businesses can't finance all departments
simultaneously. This structure allows the company to
build market- or department-specific strategies. These
measures show corporate sector market position. Y-
axis shows sales growth, X-axis market share.
Figure 10: BCG matrix "Dogs," "question marks," "cash cows," and "stars"
are the four quadrants. Several organizations have demographic-reaching strategies. We examine
Unilever's BCG matrix. Unilever's divisions include Foods, Home, Personal Care, and Water.
Pills and liquids: home treatments Powders, bars, etc. Nutrient-fortified supplements, ice cream,
tea-based drinks, etc. Soaps, shampoos, toothpastes, deodorants are personal care items. (Pro,
2022).

Question Mark
Those sectors with a low relative market share and significant sales growth rates are ones
to watch. The Unilever food products business is a major unknown. Unilever's market share in
the food category is falling annually despite the industry's rapid expansion. Because of the
industry's potential for sales growth, Unilever has to prioritize this sector in order to transform it
into a star division. The company has to spend more money developing new products if it wants
to improve its market share in the food business and outdo its main competition. When
considering regional segments, Europe raises some eyebrows due to its relatively small
contribution to total corporate revenue.
Stars
The industries in which these categories compete are deemed Stars because they have
rapid sales growth and a large percentage of the market. Personal care is a bright spot for
Unilever, since the business continues to increase its share of the market and is responsible for
the bulk of the company's income. Sales is largest in the Asia division, which accounts for over
40% of the company's total revenue. The Asian continent is also included in this constellation of
celestial phenomena.

Cash Cows
In a low-sales-growth business, the segments with the highest relative market share are
the cash cows. Because of their large market share in stagnant industries, Unilever's home care
and refreshment divisions have been dubbed "Cash cows." Sales have fallen down in both fields.
These groups are essential to the company's survival and play an important role in its continued
success. When breaking down regional segments, the America section is considered a cash cow
due to the fact that it accounts for around 33% of annual corporate sales.

Dogs
If a business has a low relative market share yet is in an industry with rapid sales growth,
it is a dog. Fortunately, Unilever does not have any such divisions that may be classified as
Dogs. One of the world's leading manufacturers of consumer products, Unilever is also unusual
in that it allows dogs to serve as business mascots. However, such a sector, which may be
categorized as "dogs," has to be moved quickly. (BCG Matrix Analysis of Unilever | BCG
Matrix Analysis, 2022).

5.2.2 Ansoff’s Analysis

Market Penetration
Unilever's market penetration strategy has
contributed to the company's success for decades.
When a corporation releases a product in a
market, it hopes to become a major player in that
sector. The company is successful because it
doesn't concentrate on one set of consumers

Figure 11: Ansoff’s Analysis

before going to other markets or goods. The company's success is due to its grasp of economies
of scale in fast-moving consumer goods sectors. With such wide distribution, the company's
items, like Magnum, are in practically all global marketplaces. 2.6 billion People use Unilever
products every day, proving the company's global dominance.

Development of the Product

Innovation and creativity are connected to product development. When a corporation
emphasizes product development, it either improves an existing product or creates new things to
market to consumers. Unilever develops new items and improves old ones to appeal to more
people. Unilever's vast product portfolio has helped them build a diverse customer base
throughout the years. Soap was the company's primary emphasis, but it has now extended to
shampoos, detergents, ice cream, tea, and dairy goods as well as cleaning supplies. It shows that
the company has created new items throughout time. It has helped the firm expand and diversify
its customer base. This strategy to product creation has kept Unilever successful by ensuring
customers get new things while extending the company's variety of products and services.

Market Development
Market development extends the firm into new geographic areas. Unilever has never
stayed in one location, always expanding into new areas. Beginning in London, the company
spread throughout England before going into other European countries. The company's success
in Europe wasn't enough to satisfy its desire to grow, so it extended to the Americas and Asia to
explore new markets. The company's presence in over 150 countries demonstrates the success of
its global growth strategy. It also shows that the company is focused on market development.
The company knew it needed a wide customer, both in the things they bought and the places they
lived in. Unilever has discovered that a market's decline is offset by growth in another.

Diversification
The company is diversifying into similar and unrelated businesses. Typically, a company
acquires and controls multiple subsidiaries to diversify its businesses. Tatcha LLC, Dermalogica,
and Seventh generation are unrelated brands. These firms mostly work on cosmetics and
hygiene. The firm regularly expands its product line to take advantage of relevant diversification
opportunities. Many business divisions have been formed over decades to achieve substantial
diversification. Food, dairy, and beverage brands are included. (Ansoff Matrix for Unilever -
Ansoff Matrix, 2022)

6. Passionate leaders or the leadership style that drives the Unilever

Unilever's success may be traced back to its

dedication to leadership. It shows its dedication to
leadership primarily via the corporate government,
which embraces organizational change and
integrates local cultures into the globally
recognized corporate structure. Unilever's
Figure 12: CEO dedication to leadership is rooted in its corporate
governance practices. With its global reach, Unilever has to deal with a variety of situations. As
a result of Unilever's dedicated leadership, various and sensitive answers to cultural concerns
have been expressed. Strategic disposition and strategic configuration are used by Unilever's
leadership to respond to cultural concerns in its subsidiaries. Unilever's cultural sensitivity have
an impact on the company's capacity to overcome cultural conflicts. As an added benefit, the
organization may use the answer to expand its capabilities and ethical standards across national
boundaries.

In addition, Unilever's corporate culture and practices highlight the company's dedication
to leadership. Every employee at Unilever, according to CEO Paul Polman, is a leader as long as
he or she has a good impact on others. Leadership is seen by Unilever as one of the company's
fundamental capabilities. Consideration for leadership development and leadership practices in
the company's worldwide operations is particularly important here. It's important to remember
that the term "leadership" refers not just too conventional aspects like personality types and
characteristics, but also to processes of organizational learning and the ability to gain a
competitive edge. The effectiveness of leadership is defined by the interaction between its
competence and strategic organizational contingencies on one side, and its attitude and conduct
on the other.. The leadership of Unilever depends on attitudes and actions that are in line with the
anticipated management circumstances in order to improve its effectiveness. (Unilever's
Leadership and Corporate Governance - 1229 Words | Case Study Example, 2022).
7. Empowered employees or employee development of the Unilever

Values guide the business

practices of Unilever, a multinational
conglomerate. Finding employees that are
on the same page as the company's
objective is extremely critical in this
values-driven environment. Existing staff
are an excellent resource to use in this
Figure 13: Unilever Employee endeavor. “Employees are the company's
greatest brand advocates, and they realized
this. It was a goal of Unilever's to enable their whole worldwide workforce to share material
about Unilever, employee blogs and successes, thought leadership publications, or even industry
news, with their social networks. Unilever noticed that social media was already digitizing their
workforce. When it came to sharing material, Unilever employees throughout the world were
unsure about what was appropriate. LinkedIn Elevate came to the rescue for Unilever by offering
a platform for its workers to effortlessly and securely share great content with their networks.

Using Elevate, Unilever workers share 14 times more often than they did before. An
important part of Unilever's approach is to keep workers interested in fresh information and to
remind them why sharing is important. Using Elevate data, businesses can learn which material
resonates with their workers and their networks, and base their content strategy on that. Elevate,
Unilever's employee engagement platform, encourages workers to propose content and approves
such proposals. They educated workers on the need of open communication and then empowered
them to do so inside Elevate. Elevate allows us to track which material is doing well so that we
can fine-tune our approach based on how well it is performing globally. An employee-friendly
environment such as Elevate was critical in keeping workers motivated. Only one platform goes
beyond usual engagement results to provide workers genuine reputation data like as profile
views and connection requests, making it simple to use and ensuring that the material they
receive is appropriate for them.

When it comes to content and recruiting, Unilever is quite methodical. It's possible to examine
demographic statistics on the individuals that interact with workers' shares using Elevate.
"Elevate's data is quite complex, and they're able to get it. Their content strategy may be altered
to ensure that it resonates with their target audience because of their knowledge of which pieces
of content resonate with their target audience. Unilever has reaped the benefits of this ability to
access and analyze data, as well as the company's attitude to it. Using Elevate over the last year
has resulted in six times more visitors to the company's Facebook page, six times more Facebook
page followers, and more than 1000 recruits. “It’s a win-win situation for everyone involved
when workers exchange information. As a result, they're interested in what Unilever has to say
and what its workers have to say as well. For a prospect, this is a very different experience than a
recruiter contacting them. Throughout the organization, Unilever is expanding its employee
advocacy program. “A better product and better user experience for workers who want to share
their Unilever with the rest of the world is what Elevate strives to achieve each month. They are
eager to discover what the future holds. (Engaging Employees to Create a Sustainable Business
(SSIR), 2022).

8. Adoptability of the Unilever according to changing external business environment

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.
Figure 14: PESTEL
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. (Frue, 2022).
9. Diversity options available and approaches of the Unilever

Differences strengthen a team 

A company's long-term success depends on having a diverse workforce and developing
that workforce to its fullest extent possible. We can't just put our differences to one side and hope
for the best; we have to use them to our advantage in the workplace. When it comes to
succeeding in today's VUCA business environment, it is essential to have diverse experiences
and viewpoints. They learn and grow by working with individuals from a variety of
backgrounds, experiences, and working styles. Diversity in the workplace begins with the hiring
process at Unilever. They make sure that in at least 80% of all job postings, hiring managers
have a balanced pool of candidates to choose from. The best candidate will be chosen from a
pool of equally qualified men and women, according to the selection panels.

Powers creativity and innovation

By fostering an atmosphere where "outside the box" ideas may be heard, diversity fosters
innovation and increases market share. It broadens the talent pool by bringing in a variety of
viewpoints, resulting in more innovative and creative work groups. The ability to experience the
world via a variety of perspectives is made possible by a diverse group of people. Allowing for a
persistent challenge to the status quo may be quite beneficial. Having a varied group of
coworkers makes it easier for people to voice their opinions, listen to one another, share credit
for accomplishments, and provide useful criticism.

Helps people think globally and locally

Businesses that have workforces that reflect their customers' demographics are more
likely to perform well and provide long-term value to their customers. A varied staff guarantees
that the product or service is relevant to the market and appeals to a global audience by
representing both local and global mindsets. At Unilever, there are more than 172,000 employees
from 150 different countries. Two billion people across the world rely on the company's 400+
brands and 190+ nations for their goods every day. In order to properly comprehend today's
complicated customer and to develop products that connect and succeed across all levels and
markets, diversity is thus essential to the success of both the product and the company.
Enhances the ability to attract and retain top talent.
Employers that embrace diversity are more likely to attract and retain top talent.
Employees are more likely to stay with a company that values diversity and supports equality if
they can work in an open, welcoming environment. Because of its commitment to racial and
ethnic diversity, Unilever has risen to the top of the FMCG employer rankings in 32 different
countries. Graduating students in Unilever's Future Leaders Program (UFLP) are given the
chance to work in a variety of different roles, allowing them to get expertise in a variety of
different working contexts and styles.

Achieves higher levels of individual productivity

The next stage in attracting and retaining top talent is to create an inclusive work
environment. People are more likely to provide their best work when they have a sense of
belonging, confidence, and encouragement to do so. Creating an atmosphere where all workers
are able to develop their full potential is an important part of Unilever's strategy for long-term
growth and profitability. When employees nominate coworkers who advocate for inclusive
conduct, Unilever's New Faces of Leadership initiative allows them to disseminate their good
impact to the whole company. (Society and Equity, 2022).
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