Unilever case study. Strategic Management Assignment: Case Analysis of Unilever 2022-12-28
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Unilever is a global consumer goods company that produces and sells a wide range of products, including personal care, cleaning, and food products. The company has a long history dating back to the late 1800s and has grown to become one of the largest and most successful consumer goods companies in the world. In this essay, we will delve into a case study of Unilever and examine the company's history, business model, and some of the key challenges and opportunities it has faced.
Unilever was founded in the late 1800s by a merger of two Dutch margarine companies, Margarine Unie and Lever Brothers. The company initially focused on the production and sale of margarine, soap, and other household products. Over the years, Unilever has diversified its product range and now produces and sells a wide range of products, including personal care products (such as Dove soap and deodorant), cleaning products (such as Omo laundry detergent and Cif cleaner), and food products (such as Knorr soups and sauces and Ben & Jerry's ice cream). The company operates in more than 190 countries and has a presence in both developed and emerging markets.
Unilever's business model is based on a decentralized structure, with each of the company's business units operating as a standalone entity with its own management team and strategy. This decentralized structure allows Unilever to tailor its products and marketing efforts to the specific needs and preferences of local markets. The company also has a strong focus on sustainability and aims to reduce its environmental impact through initiatives such as its Sustainable Living Plan, which aims to halve the company's environmental footprint while increasing its positive social impact.
One of the key challenges that Unilever has faced in recent years is the increasing competition from smaller, more agile competitors. These competitors, often referred to as "disruptors," have been able to capture market share by offering innovative, high-quality products at competitive prices. Unilever has responded to this challenge by investing in research and development to create new, innovative products and by acquiring smaller competitors to expand its product range and market reach.
Another challenge for Unilever has been the increasing demand for more sustainable and environmentally friendly products. Consumers are becoming more aware of the impact of their purchasing decisions on the environment and are seeking out companies that prioritize sustainability. Unilever has responded to this trend by investing in initiatives such as its Sustainable Living Plan and by launching a range of sustainable products, such as plant-based detergents and biodegradable packaging.
Despite these challenges, Unilever has continued to grow and be successful. The company has a strong brand and a global presence, and it has a proven track record of adapting to changing market conditions. In the future, Unilever will likely continue to face challenges, but with its strong commitment to sustainability and innovation, it is well-positioned to continue to be a leader in the consumer goods industry.
UNILEVER Case Study Solution for Harvard HBR Case Study
Unilever's successful leadership has been confirmed in its recent ranking as No. Therefore to select the best alternative, there are many factors that is needed to be kept in mind. This can be said for companies in the business world who do not adjust to the market. They have been really innovative in coming up with various products which range from soaps to hand sanitizers and soaps, and even to body care products for men and women. Pest analysis is very important and informative. Thus, in the case of Unilever the competitive rivalry is strongly The Change Management Case Study: Nestle 1225 Words 5 Pages NESTLE Nestle is a multinational company which has got its headquarters in Vevey Swiss. The case illustrates the development of new environmental initiatives and its implementation in the corporate policies of major international corporations.
This recognition most importantly extended across the developing countries where the company had sought to increase its revenues. For Unilever and its change related to environmental policies with external partnerships, Lewin's change management process is discussed below to show the steps that Unilever needs to undertaken while implementing change. Finance: The financial analysis of the company demonstrates that the financial performance of the company has shown a 2. All you have to do is choose the right one for you. Unilever's business, and, as a result, counted as part of Dutch foreign direct investment FDI in the country.
Environmental Influences An Organization Face 918 Words 4 Pages If one company has a more innovative product or service or provides better customer service, it will result in lower consumer loyalty for the competitor. Hence, Unilever Plc should make best investment decisions. Before implementing the change, it is important to unfreeze the existing situation of the organization where the change is going to take place. The strength of their customer relationships also affects their ability to obtain pricing and secure favourable trade terms. Best alternative should be selected must be the best when evaluating it on the decision criteria. HRM: Human resource refers to the art of managing the employees or workforce of a company in such a way that it helps the company to achieve its goals Inc, 2018. STEP 4: SWOT Analysis of the Unilever Brazil HBR Case Solution: Pest analysis SWOT analysis helps the business to identify its strengths and weaknesses, as well as understanding of opportunity that can be availed and the threat that the company is facing.
In addition to that, the broad diversification strategy attracts the consumers with products that have specifically designed to their unique needs. Porter's five forces model Competitive rivalry: The competition within the industry is strong for Unilever because there are more firms providing similar products and the low switching cost is another threat for the company, which is because of strong competition in the market. UNILEVER What is Unilever? This enabled proper distribution of products since the managers on the ground knew the most consumed products hence increasing its supplies in the regions. After all, Unilever launches new products on the market and expands its product range yearly. As the company works with different product division, it needs to follow the regulation for each product division to ensure that the product quality and the business process are abided by law.
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Unilever promises that by 2025, 100% of its plastic packaging will be recyclable, and at least 25% of the packaging will be made from recycled plastic. With the fast changing technology, companies need to keep track in order to apply e-commerce which enhances efficient and quick transactions between the consumers and the organization. The entrepreneurial spirit that has been delving into the company culture by the founders are now being practiced by the organization today. PLC after 1981 , and Unilever N. The ability of the company to introduce its commodities in new and emerging markets give it an advantage to grow in most parts of the world.
Further, the company has realized the importance of change in climate and its impact on the lifestyle of individuals. Conclusion: The summarization of the key learning is important. Over the years, various units of businesses have been developed for achieving related diversification, such as refreshment brands, dairy brands, and food brands. Any firm who has valuable and rare resources, and these resources are costly to imitate, have achieved their competitive advantage. However, this strategy of the company has brought a complex set of challenges despite the company delivering its financial expectations along with social and environmental commitments. After introducing a new product in the market, Unilever sells it with the intention of market penetration Khankasi, 2020. To encourage the employees towards the change, they need to be rewarded as it is a strategy to reinforce and strengthen the behavior.
Unilever Case Study Analysis 🧼 Organization, Marketing, Sustainability, & More
It is better to start the introduction from any historical or social context. The company is also making significant reductions in CO2 from energy and water in manufacturing, reducing them by 37% and 32% per ton of production respectively since 2008. The ideas that are represented by the leaders show the effective communication skill of the leader, which is a key part of change management. In the same year, Lever's agreement with a New York agent to sell its soap everywhere beyond New England was abandoned and a new sales organization was established. Diversification: Unilever has adopted a diversification strategy based on various unrelated and related means of diversification.
Unilever Case Study: Marketing Strategy of the Products
Firstly, the introduction is written. The loyal customer base was another strength. After that, the company reported a 49% increase in e-commerce. It is used for the purpose of identifying business opportunities and advance threat warning. For a number of reasons, including its size, resources, free-market economy, and proclivity toward trade protectionism, the United States has always been a major host economy for foreign firms. Some companies, however, take sustainability a step further in their CSR efforts. .
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The ultimate success of implemented change is calculated at the refreezing stage because it depicts whether the employees are able to accept the change or not. However, all of the information provided is not reliable and relevant. The company has efficiently handled the change process from traditional to rolling budgets Johnson, 2011. Because Unilever founded and growing with strong basis. This is done by providing their products in the market at a subsidized price which is normally lower than that of other competing companies.
The budgeting strategy implemented by Unilever will be analyzed to gain insights into the benefits, and implementation process of rolling budgets. The campaign featured a variety of tactics, including washing demonstrations at department stores. Substitution threat: The cost factor is a threat for Unilever in terms of substitution, but the low availability of substitute products acts as a strong force for the company. In the case that the project did not have the expected positive appeal to the customers, the project would only create a large financial burden for the organization. Description: A leader needs to describe the situation in detail to make others realize the importance of specific change. In all examples the Digital Capability Framework DCF concept has been used to identify and structure innovation and transformation action areas required for successful implementations.