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Introduction

Because Unilever is a recognized firm that constantly serves its clients with high-quality

products and services, its corporate environment is an easy option for this task. London, England

houses the corporate headquarters of the global consumer products corporation Unilever plc.

There are over 400 brand-name goods available. Unilever is a multinational corporation that

develops and distributes a vast array of food, beverage, home, and personal care items. Unilever,

the largest soap manufacturer in the world, distributes soap in about 190 countries (Murphy and

Murphy, 2018). On the New York Stock Exchange, one may acquire shares of Unilever PLC

(commonly known as UL). It is now selling on the market for $43.98.

Organizational structure
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Figure 1: Unilever’s organizational structure

Source: (Bartlett and Ghoshal, 2017)

Unilever planned a massive restructure in the first quarter of 2022 with the goal of establishing a

"simpler, more category-focused corporation." The company said it would eliminate its existing

matrix structure in favor of a simpler framework based on the five Business Groups listed above.

Each Unilever Business Group is fully responsible for its own growth strategy, financial

performance, and global profit generation. A "functional" or "divisional" structure is one in

which an organization is subdivided into parts depending on its functions (Shi, 2021). The

"Business Groups" of Unilever are the divisions responsible for managing the corporation's most

major brands and products.

The organization's objectives and purpose

The organization's goals serve as the basis for all of Unilever's processes, schedules, and

regulations. Unilever hopes that 100 million people will have sustainable living standard.

Unilever is a multinational producer and marketer of consumer products with the goal of creating

famous brands. Every business is backed by people who want to make a positive and lasting

effect on the world.

Vision and mission statement

The business aims of Unilever are focused on mainstream sustainable lifestyles. Unilever has

decided to pursue this line of action in order to ensure the company's continued success. This

long-term strategy emphasizes sustainability in order to attract and retain customers.

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"Add vitality to life " is the mission statement of the Unilever company (As, 2020). By providing

consumers with the necessary nutrition, hygiene, and personal care products to look and feel

their best, Unilever's brands enhance the quality of their lives. The mission statement of the firm

describes the different ways it serves its customers.

Environmental pressures

Unilever's macro environment is affected by environmental factors; thus, it is prudent for the

company to place a greater focus on sustainability in this industry. To preserve its competitive

advantage and enhance customer image of the brand, Unilever must increase its spending in its

sustainability initiatives (Jansen, 2018). In light of the growing importance of sustainability,

Unilever must use its CSR strategy to support initiatives that improve the quality of life on Earth.

Unilever, for example, is seeking to switch all of its packaging needs to recyclable plastics. In

addition, it must develop strategies to utilize less plastic.

Market position

The Unilever Group, with around $9.57 billion in annual sales, is one of the largest beverage

makers in the world.

Post COVID-19 challenges

Covid 19 has severely harmed every business. However, there has been a substantial shift in

consumer purchasing habits. Since they have been unemployed for so long, the majority of the

consumers cannot afford the luxury of making purchases at the moment. Consequently,

consumption and social interaction have declined. However, logistics and distribution expenses

have risen. Due to many regulations, the company has spent tremendous expenses.
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Identifying Key Stakeholders and their needs

The strategies and activities of Unilever, a British consumer goods giant, may impact and be

influenced by a vast array of constituents. A percentage of them have regular contact with it.

Since it cannot achieve its business goals on its own, it must collaborate with its stakeholders.

Internal stakeholders

The company's executives, managers, and stockholders are among its most important internal

stakeholders. Vice President and General Manager, Chief Executive Officer, Vice Presidents,

and Directors of Various Operations are among the top executives in the United Kingdom and

Ireland. These influential people determine its future course.

The shareholders of Unilever are vital to the company's functioning since they provide the

necessary funds to keep the business running. Employees contribute significantly to the success

of the company. The corporation employs around 149,000 people in different positions

throughout the globe. There is a guarantee that workers will get a decent salary. However, it is

essential to note that the number of workers has declined dramatically over the last few years.

External stakeholders

Unilever's most significant external stakeholders are governments, non-governmental

organizations (NGOs), suppliers, customers, consumers, local communities, and trade groups

(Venkatesh et al., 2020). It collaborates with authorities to address global challenges such as

climate change and policies that may affect its business.

Without its suppliers, Unilever could not fulfill its obligations to its consumers. It has pledged to

ensure that all 60,000 of its suppliers pay their employees a living wage by 2030. It provided
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financial aid to suppliers who were especially vulnerable during the global shutdowns of 2020–

2021. In addition, it invests in a new supplier development program to help inclusive business

partners overcome past obstacles.

Unilever holds its clients and customers in high regard. Approximately 2.5 billion individuals

use its services often. These customers purchase at the roughly 25 million retail outlets (of

varying sizes) that Unilever services worldwide. It is essential to recall that Unilever and

customers such as Tesco have previously differed on pricing.

Non-governmental organizations (NGOs) and Unilever collaborate often to address social

challenges. On the growth of neighboring settlements, it has both direct and indirect effects. In

addition, it collaborates closely with a number of major commercial corporations.

Stakeholder mapping

Figure 2: Unilever’s stakeholder mapping

Source: (author)

Global impact on the organizational operations

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Internet of things: The intelligent edge services of the Azure IoT platform and the Internet of

Things (IoT) enable Unilever's digital twin, a cutting-edge digital depiction of a physical

environment (in this example, a Unilever facility). The whole factory's equipment is networked

to supply the model with a variety of data, including temperatures and production cycle timings

(Mendi, 2022).

Evolving collaboration: Unilever has evolved its business models to increase the profitability of

its manufacturing processes and give it a competitive edge over its competitors. Thus, the birth

and spread of collaboration may be related to the different cooperative business models.

Networking: Unilever conducted its first Women in Technology (WIT) conference in London in

an effort to expand opportunities for women in technology (Murphy and Murphy, 2018).

E-commerce: With the advent of e-commerce, Unilever has broadened its product and service

marketing to include more personal and interactive interactions with prospective consumers. The

e-commerce sales channel generates a new distribution route owing to the bidirectional nature of

online communication.

E-business: Due to the increased popularity of e-business, clients may now shop online

whenever it is convenient for them. Customers may browse the available products, make an

order, and have their purchases delivered within a certain timeframe. Free shipping is provided

for orders above a certain threshold. If a customer is displeased with their purchase, they may

return the item using the regular online shopping methods and obtain a replacement or a full

refund. As a result, the company now has more consumers.

Task 1

Business Environmental Analysis

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By conducting a strategic environmental research, businesses may learn more about the factors

that have an effect on their operations. It enables the manager to monitor all the internal and

external elements that may impact the performance of the organization. With the use of this

technology, firms are able to adapt their strategies to changing market circumstances more

effectively. SWOT analysis, PEST/PESTEL analysis, and Porter's Five Forces Model are

common methodologies for examining the external environment of an organization (Tytenko,

2019).

PESTEL Analysis

Political factors: Factors such as EU and US legislation, have a significant influence on the

profitability and operational capabilities of a business. Only if everyone adheres to the same

commercial standards and rules can their company operations go as planned (Cheng, 2021).

Economic factors: Modern shoppers are always seeking affordable pricing without sacrificing

quality. Many businesses supply equivalent items at a lower price. Consequently, there is

significant competition in some markets, such as the European Union (EU), the United States

(US), and Asia (Asia).

Social factors: Similar to many other fast-moving consumer items, the company has developed a

strategy that mainly focuses on building a strong brand image. A great deal of emphasis is placed

on components that have an effect on society and the environment. Consequently, the majority of

its products are care items for personal hygiene and health.

Technological factors: The Company has a lengthy history of creating cutting-edge, inventive

products. Additionally, these items are available for purchase on several e-commerce websites.

The company has also developed an effective digital marketing and sales strategy (Cheng, 2021).
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Environmental factors: Because it cares about the environment, the corporation has invested in

green initiatives, such as renewable energy. Customers may rest easy knowing that the items they

create are risk-free. They have begun using eco-friendly packaging and materials for a number of

their products.

Legal factors: Unilever has more than 400 brands in its portfolio, which raises legal

considerations. Significant exposure to a broad variety of laws and regulations exists for the

business. The company must take the necessary steps regarding copyright and intellectual

property (Cheng, 2021).

SWOT Analysis

Figure 3: SWOT analysis

Source: (Zhang and Fan, 2020)

The Five Forces of Porter

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Rivalry with competitors: In the consumer goods market, Unilever faces significant rivalry

from a vast number of other companies. They have merged their resources in an attempt to

surpass the competition and gain market share by offering lower prices. Unilever has established,

through years of global experience in the face of intense competition that the majority of

consumers switch to other brands owing to lower prices. Therefore, Unilever must work really

hard to stay up with the competition and have an eye on the future (Raj and Aithal, 2018).

Customers bargaining power: In the context of Unilever, customer bargaining capability is of

the highest significance. Both the availability of highly knowledgeable products at low prices

and their impact on the business are influenced by the consumer's options. The company is

always releasing more affordable products and providing customers with as much information as

possible.

Suppliers bargaining power: The availability of raw materials is crucial to the industrial

process. These external forces are anticipated to have a modest impact on the company's

environment. The size of Unilever's global supplier network enables the company to ensure

uninterrupted performance of its long-term contracts and constant access to the raw materials it

requires (Raj and Aithal, 2018).

The threat of substitution: Replacing products or services may have a detrimental impact on a

company's profits and the stability of its competitive environment. While Unilever watches the

market and is prepared to address any issues that may arise, competitors may cut their prices.

The threat of new entry: In the consumer products industry, new competitors are always a

threat, and there is constant unleveraged competition. If it was inexpensive to move to a

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competitor, the company may constitute a threat. To compete with well-known corporations such

as Unilever, however, requires a great deal of effort and capital.

Macroeconomic influences

Economic problem: Because shower gels and soaps are manufactured with palm oil derivatives,

their production costs increase in tandem with the price of crude oil. When the pandemic struck,

Unilever was almost at the 20% margin it had set for 2020, but it has not yet attained this goal.

Demand and supply: The world's biggest FMCG firm, Unilever, has faced flat revenues as a

result of a surge in demand for hygiene and household goods caused by Covid-19.

Market structure: Due to the dominance of companies such as Unilever, Procter & Gamble,

and Nestle, Unilever operates in an oligopolistic market structure.

Circular flow of income: The "circularity" of the economy's three primary revenue streams has

a substantial influence on Unilever's bottom line (production, consumption, and exchange).

Measures of macroeconomic activity: Changes in the unemployment rate, the expansion of the

gross domestic product, and global economic conditions can all have an impact on domestic

issues.

Fiscal and monetary policies, such as increasing government investment and regulation, may

result in a decline in the excellence of businesses.

Task 2

Leadership challenges

The international firm Unilever must adapt to various local situations. Due to its commitment to

leadership, Unilever is able to articulate nuanced and diverse responses to issues of cultural
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significance. Strategy disposition (ranging from the ethnocentric to the geocentric level) and

strategic configuration impact Unilever's approach to cultural difficulties at its subsidiaries (from

multi-domestic to global level). Cultural awareness impacts Unilever's ability to succeed in the

face of cultural diversity (Jose, 2021). The response also facilitates the company's ability to

export its skills and moral standards to other countries. Beyond words, Unilever's culture and

daily behaviors illustrate the company's leadership mindset. Paul Polman, the current CEO of

Unilever, defines a leader as a person who has a positive impact on people at work.

The significance of leadership to the success of an organization

Traditional business management practices are insufficient to keep a firm afloat in the modern

market, thus effective leadership is important in today's economic climate. A leader's primary

responsibilities are to communicate with and inspire their team to complete tasks in accordance

with the company's beliefs and objectives. A manager that displays leadership will guide and

inspire their staff to collaborate. In addition to providing a pleasant workplace, a company with a

strong culture fosters a feeling of community among its workers, which reinforces their loyalty

to the company (Madanchian et al., 2017). When management encourages workers to be candid

with one another and express their opinions, creativity emerges. In addition, leaders who possess

these competencies are more suited to manage their staff toward results that align with the

business's goals. If the CEO of a company guides people in the right way and encourages them to

seek out opportunities for growth and innovation, the firm's performance will improve and it will

be able to survive in today's competitive market. Therefore, strong leadership is what drives

organizational change, as an organization has no chance without it.

Analysis of the significance of strategic management inside a company

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Strategic management is the process of directing an organization's efforts to obtain the intended

outcomes. It is a strategy for attaining performance goals and expanding the firm. Strategic

management provides firms with clear direction by defining long-term goals, allocating

resources to implement those strategies, and monitoring objective progress. The main goal of

strategic management is to provide a corporation an advantage over its rivals.

To get a competitive edge in the marketplace, Unilever employs a broad differentiation

approach. At the heart of this all-encompassing strategy is an emphasis on distinguishing aspects

that provide the company's goods an edge over rivals.

Real-world examples

PepsiCo: On the food and beverage market, PepsiCo is most likely Unilever's principal

competitor. PepsiCo India, the country's biggest and fastest-growing food and Beverage

Company, has long dominated the industry. Due of PepsiCo's enormous and impressive brand

recognition in India and worldwide, the company is Unilever's most formidable opponent.

Pepsi's pricing strategy is impacted by rivals' prices and customer demand. Larger Pepsi bottles

are more cost-effective than smaller ones, therefore the company recommends purchasing in

bulk. Using this method, they are able to enhance the present distribution channels.

Nestle is another company that competes with Unilever (Birahim, 2020). It has a significant

share of the food and beverage sector. The world's largest cosmetics company, L'Oréal, is also

substantially funded by Nestle. Nestle is a formidable competitor to Unilever due to its vast

product line and global reach.

Johnson & Johnson is among the largest and most successful manufacturers of medicines and

consumer packaged goods. It employs over one million people globally and has a presence in
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over 60 countries. Customers have the utmost faith and loyalty in this brand. Johnson & Johnson

is Unilever's main competitor due to its vast customer base and worldwide reach. Johnson &

Johnson, a pharmaceutical giant, implements a differentiation approach to satisfy the specific

tastes of each of its customers.

Recommendations

Therefore, it has been suggested that Unilever expand its company by purchasing analogous

companies outside of the consumer goods market. Additionally, Unilever could use product

innovation to improve financial performance. To fight the effects of competition and the risk of

piracy, it is recommended that the company manufacture products using its advantages, such as

economies of scale.

Discussion on the interrelationships between organizations, business environment, and

management

External variables are those that may have an impact on a company's surroundings. Customers,

competitors such as PepsiCo and Nestle, cultural trends such as the advent of the health food

movement, legislative organizations such as the U.S. Congress, and a multitude of other

variables define Unilever's operating environment.

It is advantageous to split the environment in half. The general environment, sometimes known

as the macro environment, consists of social trends, technological developments, demographic

transitions, and economic situations. Businesses in a certain industry compete with one another

by offering customers similar products or services (Domingues et al., 2017).

If they intend to exhibit responsible global citizenship, corporations like Unilever must take into

account the needs and aspirations of people everywhere. If Unilever is unable to satisfy these
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expectations, its productivity and global competitiveness might suffer. Unilever may influence

its development by adjusting its strategy and management in light of this knowledge about client

preferences and expectations.

In the linked global economy of today, the Covid-19 epidemic has been identified as the primary

cause of the present economic catastrophe. Due to the volatility of the global economy and the

rapid growth of the global products market, Unilever may encounter substantial challenges.

Unilever's survival and future prosperity depend on the company's ability to make ethically

sound judgments today. In its efforts to resolve workplace issues and effectively manage

operational risk, the company could gain from effective leadership and participation in morally

responsible activities.

Accountability: The top executive of Unilever is responsible for treating all workers with

fairness and candor. This will make it possible to preserve the workers' trust and sense of

belonging to the organization.

Self-awareness is the most essential leadership quality (Rubens et al., 2018). This may assist one

in comprehending a person's values, personality, emotions, and daily routines. The CEO of

Unilever must possess these characteristics if the firm is to grow and be successful. Leaders must

be more receptive to fresh ideas and prepared to take measured risks. The capacity of a leader to

solve problems and make an impact at work is enhanced by fresh experiences.

Unilever should make every effort to maintain and enhance its own culture, given its global

workforce and emphasis on diversity. As a result, the unemployment rate may be dropping and

economic expansion may continue.

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