Question: Unilever Cooperates With Many Firms And Nonprofit Organizations To Implement Its Strategy

While Creating A More Sustainable Environment Unilever, A European-Headquartered (In Both The
Netherlands And The United Kingdom) Consumer Prod- Ucts Company, Is Committed To Using A
Sustainable Envi- Ronment Strategy While Manufacturing Its Large Array Of Food And

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Unilever Cooperates with Many Firms and Nonprofit Organizations to Implement Its Strategy While
Creating a More Sustainable Environment

Unilever, a European-headquartered (in both the Netherlands and the United Kingdom) consumer prod-
ucts company, is committed to using a sustainable envi- ronment strategy while manufacturing its large
array of food and beverage products. Historically, consumer products companies, especially those from
Europe, have pursued the multidomestic strategy, needing to adapt their products to each country or
region mar- ket. Accordingly, most have implemented their strat- egy using the worldwide geographic
area structure. Many consumer product companies, such as Avon, have begun to use aspects of the
worldwide product struc- ture to become more efficient. This is also the case with Unilever. However,
Unilever has continued to empha- size geographic areas, but it has done so using the trans- national
strategy while implementing the combination structure to meet local market responsiveness as well as
global efficiency objectives. Moreover, its CEO, Paul Pullman, who took the job in 2009, has also
suggested, “our purpose is to have a sustainable business model that is put at the service of the greater
good.” Accordingly, Unilever created a manifesto in 2010 called the Sustainable Living Plan. This plan
calls for Unilever to double its sales at the same time that it cuts its environmental footprint in half by
2020. One goal embed- ded in this plan is to source all of the firm’s agricultural products in ways that
“don’t degrade the Earth.” Unilver also has a campaign promising to improve the well- being of one
billion people by “persuading them to wash their hands or brush their teeth, or by selling them food
with less salt or fat.” It seeks to realize many of these goals through cooperative strategies with other
profit-seeking organizations as well as nonprofit entities. In 2010, for instance, Unilever signed a
contract with Jacobs Engineering Group Inc. forming a global (overall corporate) alliance to facilitate the
efficiency of Unilever’s capital improvement projects around the world. Unilever has 250 manufacturing
sites and is expanding aggres- sively, especially in developing and emerging economies, to support its
ambitious growth goals. Unilever expects emerging economies to drive 75 percent of its growth in the
long term. The alliance with Jacobs Engineering will be managed out of Singapore and will provide engi-
neering services for Unilever’s manufacturing facilities around the world. Both companies will “work as a
team to insure their sustainable growth model,” implement cost reductions, and “drive co-innovation
and imple- ment the harmonization and cross-category standardiza- tion of designs.” The alliance will
also work with supply chain team members to increase speed to market with designs that “reduce
carbon, water, and waste footprints across its manufacturing sites.” In alignment with marketing growth
goals, Unilever has initiated the Unilever Nutrition Network. This organization has divided the world into
six regions and focused on providing world-class nutrition and health innovation. Its goal is to generate
ideas to facilitate sus- tainable product launches and improve existing products while strengthening
their brand value. As part of this overall strategy, Unilever has used Salesforce’s Chatter technology in
the implementation of its new social mar- keting platform. This technology allows local markets and
distributors of Unilever products to share insights and best practices with the marketing team from
Unilever to help drive its “crafting brands for life” strategy. In a recent Sustainable Living Plan report,
Unilver described how it is working with a number of nonprofit, nongovernment organizations (NGOs) to
help address real issues, facilitate solutions for suppliers for improv- ing sustainable living, and reach
customers in society at large who need information to improve their sustain- ability approaches to life
with better food security and poverty alleviation. Initiatives include partnering with the following NGOs:
the Consumer Goods Forum; the World Business Council for Sustainable Development; the World
Economic Forum; the Tropical Forest Alliance 2020; Refrigerants, Naturally; the Global Green
Foundation Forum; and Zero Hunger Challenge and Scale-Up Nutrition initiatives supported by the
United Nations. Interestingly, Unilever no longer provides quar- terly earnings guidance reports and
suggests that this has allowed it to focus shareholders on its longer-term goals. Furthermore, since
Pullman took over in 2009, Unilever has sustained its positive growth trajectory with better income
performance and associated stock market performance. As can be seen, it is accomplishing these things
through better organizational design, lofty objec- tives, but also by using a number of cooperative strate-
gies with many organizations outside the organization, such as Jacobs Engineering and many NGOs.

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BUSINESS ANALYSIS

Unilever SWOT Analysis

Learn how Unilever is dominating the marketplace with its in-depth SWOT analysis.

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Unilever SWOT Analysis

Introduction

Unilever is a global leader in the consumer goods industry. The company's strengths are highlighted in a
SWOT analysis, which ensures long-term success. The SWOT Analysis approach reveals key strengths
and weaknesses (internal strategic elements), as well as opportunities and threats.

The SWOT analysis of Unilever reveals significant opportunities for the company's major growth and
expansion into the international market. The company is well-positioned to resist assaults from its
external environment. However, to guide strategic formulation for global operations, Unilever must take
into account all of the factors outlined in this SWOT analysis.

Unilever's SWOT analysis depicts the company's current state but also its external environment. Long-
term success may be boosted by strategies based on corporate strengths and market possibilities.

Unilever's Strengths

This section of the SWOT analysis identifies Unilever's organizational and business strengths. Human
resources, production methods, organizational structure, and investments are examples of internal
strategic elements dependent on the company's conditions. In Unilever's consumer goods industry, the
following strengths are important:

Strong brands

a diverse range of products

Large-scale economies of scale

Market presence on a global scale

Unilever's brands are among the most powerful in the consumer goods industry. This ability allows the
corporation to enter new markets and compete effectively against other businesses. Unilever's vast
product mix demonstrates the company's rapid expansion. For example, over years of mergers and
acquisitions, the firm has expanded its product offering, resulting in organizational expansion and
matching revenue gains. Economies of scale, on the other hand, enhance the manufacturing efficiency
required for competitive price tactics, as demonstrated by Unilever's marketing mix.

The company's market presence has grown as a result of years of worldwide expansion, which is a
strength that supports the brand appeal. In this section of Unilever's SWOT analysis, the factors
contribute to the strong show strengths that the company can use to maintain global survival and
prosperity in the consumer market.

Unilever's Weaknesses

Unilever has disadvantages that hinder its future growth, despite its strong market position. The internal
strategic elements that obstruct organizational and business growth are presented in this portion of the
SWOT analysis. The following flaws must be addressed by Unilever:

Products that are easy to copy

Business diversification is limited

Dependence on merchants

The imitability of Unilever's products is one of the company's flaws. Even though Dove and Rexona
invest considerably in their product development procedures, other companies can duplicate their
goods. Unilever is also weak due to limited diversification in businesses outside the consumer goods
industry, despite its diverse product mix. Furthermore, the corporation has a little direct impact on
customers, as merchants are the ones that have the most direct impact on purchasers. Thus, the
weaknesses stress the importance of diversification, innovation, and enhanced product offerings related
to internal strategic factors in this section of Unilever's SWOT analysis.

Unilever's Opportunities

Unilever needs to take advantage of its potential in global consumer goods markets. This phase of the
SWOT analysis examines whether there are any opportunities or external strategic elements that can
help the company grow. In Unilever's external environment, the strategy based are significant:

Diversification of the business

Health-related product development

Environmentally-friendly business development

Growth of the market

Unilever can diversify its business by entering industries other than consumer goods. Diversification
lowers market-based risks while also increasing business perseverance. Product innovation, on the other
hand, can improve Unilever's product attractiveness by meeting the needs of increasingly health-
conscious consumers. Similarly, the company has an opportunity to recruit and keep environmentally
conscious customers by making its business more sustainable and environmentally friendly.

Furthermore, market development may help Unilever expand its company by generating income from
existing items sold in new markets. The corporation might, for example, sell its Lipton goods as health
beverages for those on specific diets. Despite its shortcomings, the external strategic elements in this
portion of Unilever's SWOT analysis hint at significant chances for the company to expand.

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Unilever's Threats

Unilever's business success can be limited or harmed by a range of external circumstances. These
external elements are viewed as threats in the SWOT Analysis paradigm, which the organization must
strategically address. Threats to Unilever's consumer products business include the following:

The rivalry is fierce

imitation of a product

The popularity of retailers' brands is growing.

Unilever is up against the stiff competition, which poses a challenge based on the industry's strengths.
Competitors attempt to erode the company's market share and, with it, its profitability. Imitation of
Unilever's products is also a serious concern. Local companies, for example, can create items that are
quite similar to Unilever's.
Also, by offering their brands, shops pose a challenge. House brands, store brands, and generic brands
are examples of these brands. Costco, for example, seems to have its house brand. Strategies to
enhance Unilever's market advantage must be based on the external key factors discussed in this
section of the SWOT analysis.

Unilever SWOT Analysis Mind Map

We are optimistic that Unilever can weather the current bleak circumstances in the FMCG industry since
it has been in the business of customer fulfilment for many decades. Having said that, we finish the
piece with a warning not to underestimate the danger posed by Asian FMCG giants, as they have a
greater understanding of the region while also mastering the complexities of the global marketplace.

Unilever SWOT Analysis Mind Map View, edit, and download this template in EdrawMind >>

Key Takeaways

Unilever's SWOT analysis reveals several internal and external strategic aspects that managers must
consider while developing a strategy. The limitations of restricted company diversity and the imitability
of products, for example, are crucial because they affect corporate stability and performance. In this
sense, the corporation must diversify its operations by acquiring associated companies that are not in
the consumer products market. Unilever should also think about product innovation as a way to
improve its bottom line. To combat competition and the fear of imitation, the corporation must leverage
its assets, such as economies of scale, for product innovation.

Having a mind map will sort out the information in the right way to make it clear to the people reading
the mind map. Mind map provides the key knowledge and facts about the company. Just like the above
example of SWOT analysis of Unilever's mind map, you can also make one for yourself with EdrawMind's
countless built-in templates that they offer.

References

SWOT analysis of Unilever 2021

SWOT analysis of Unilever

In-Depth SWOT Analysis of Unilever|Strengths Weaknesses Opportunities & Threats

SWOT Analysis of Unilever: Strengths & Weaknesses 2021

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