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Strategic management of unilever company
Strategic financial policy decisions of unilever
Strategic financial policy decisions of unilever
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The case study deals with Unilever home care and specific detergent
The case deals with the Unilever home care division and in specific the detergent brands in the 2 major regions of brazil, the Northeast and the Southeast. Major differences exist between these two regions in terms of wealth, culture and needs that influence the performances and sales of Unilever detergent brands available in the Brazilian market.
The main goal is to reach the low-income consumers, who are predominantly using laundry soap for the main washing process at this stage, using a little detergent only at the end.
17% growth rate in detergent market, In the North East 28% own washing machines, In the South East 67% own washing machines
Two options for Unilever: Create a new brand, Launch a new brand from the existing portfolio.
Considering the firm’s market share of 75% in the north-eastern region it seems very likely that by repositioning an existing brand or launching a new product some cannibalisation will occur
New Brand would be formulated and available in both Detergent and Laundry Soap grantin...
Nevertheless, it must “defend” its current market share if not increase it, by maintaining premium quality and develop innovative products. The marketing mix strategies will effectively achieve targeted revenue and profitability in the near future.
And we will purchase capacities when plant utilisation above 90%. This will expand the business size and have a positive impact on economies of scale. Composed with High End and Size products transfer into Traditional and Low End, we have multiproduct in targeted segments. “Higher firm-level ability raises a firm 's productivity across all products, which induces a positive correlation to a firm’s intensive and extensive margin” (Bernard, Redding and Schott 2006). This means with an effective business strategy and management, businesses can boost sales of all products within the segment. With a larger product profile for Traditional and Low End, it works to generate larger market shares. Refer to Graph 4 and 5, Digby sold twice units of products than its core competitor-Baldwin by having Daze and Dixie in its Traditional segment, which drives its segment market share to double Baldwin’s. The boost in sales and market share prove the correct implication of the
The European Vice President of United Cereal (UC), Lora Brill, is confronted by a dilemma: to launch a new product called Healthy Berry Crunch as the first ‘Eurobrand’ or not. A wrong decision may destroy her career, especially since Healthy Berry Crunch is not only a new concept of healthy cereal, but also a pioneer of United Cereal’s Eurobrand, which is different from the company’s usual standards. On the other hand, if she makes the right decision, she may be able to grow the company to a whole new level.
In order to understand McDonald's structure and culture and why they continue to be the world's largest restaurant chain we conducted a SWOT analysis that allowed us to consider every dimension involved in the business level and corporate level strategies.
Customer loyalty is another competitive advantage. Trader Joe’s doesn’t provide membership card to the customer, however customer still would like to choose Trader Joe’s just because of this
Burger King delivers value to their customers through their products, prices, and place and promotion strategies - (“BK doesn’t just promise value, they actually deliver value”). Burger king has been in existence for 60 years and is growing rapidly in many other countries. Burger King delivers quality, great tasting food which satisfies ones need or wants and captures the value of customers even before the first purchase is made. Burger King has products very unique from other competitors such as KFC and McDonalds. The difference is that Burger King does not limit their customers in terms of what they eat. For example, when I spoke to a customer also big fan of Burger King, he mentioned that the sauces are left public for the customer to decide on which sauce to have rather than giving the customer one kind of sauce such as McDonalds and KFC. The cold beverage is also self-help service in which customers can help themselves to a bottomless drink. This way the customer feels free to choose what satisfies the need or want.
The purpose of this report is to evaluate Nestle Company industry based on the case study and comprehend how the company develops strategic intent for their business organizations following the strategic factors and approaches. I will analyze the strategic management process as firm used to achieve strategic competitiveness and earn above-average returns. I will critically examine the strategy formulation that includes business-level strategy and corporate-level strategy. It also aims to identify market place opportunities and threats in the external environment and to decide how to use their resources, capabilities and core competencies in the firm’s internal environment to pursue opportunities and overcome threats.
The case looks at prescriptive strategy as applied to multi-product group of companies. Unilever is based in over a hundred countries where multiple products are being made in each. However, the market is mature which means that growth is stagnant and innovation is almost non-existent. In order to improve on growth and sales, the strategies that are needed look at how to come up with new products that have high profit margins and penetrate new markets. The prescriptive approach was used to come with a strategy to improve growth and profit. In order to improve on innovation, both the prescriptive and emergent strategies can be used since both support innovation. From the case study, not much profit was made when the ‘Path to Growth’ strategy was first implemented (2001-2004). The strategy was initially based on cost cutting. There was a need to also build volumes through existing portfolio of branded products through innovation and marketing. By focusing on increasing sales in developing countries where growth prospects were high and increasing investment in personal care products where profit margins were higher, it was possible to improve the profit portfolio.
Unilever’s Dove is part of the consumer goods company’s many brands which have historically lacked global identity amongst its many products. The lack of global identity resulted in issues such as diverse marketing standards, varied product development, and lack of brand recognition by consumers worldwide. Unilever’s solution to this problem was to group similar product lines under a few recognizable umbrella corporations. This initiative gave birth to the one of the most controversial marketing strategies in the history of business.
1. Every organisation in both the public and private sector is in varying degrees dependent on materials and services supplied by other organizations (Johnson and Flynn, 2015:36-37). In your view, what role can supply play in determining an organization's strategic growth?
Unilever is a multinational company which ranks third globally in fast moving consumer goods. They have an excellent value chain which is one of the factors that has resulted in them to be among top consumer goods company globally. Their merger and acquisitions have led them to expand their company in different sectors of the consumer goods. They have 400 brands and sell their products across 190 countries. They have to work on some areas of the value chain to work even better than how they are working now. Also, there are many opportunities that will help Unilever to overcome their shortcomings and make them a successful Consumer goods
...ification as we move towards our destination IT architecture, and further strengthen our global market presence” said Neil Cameron, chief information officer at Unilever.
In 2011 PepsiCo announced the launch of their Social Vending System. This system featured a full touch interactive screen. A consumer can select a beverage and enter the reciepent's name, mobile number, and personalized message and gift it with a video. PepsiCo uses technology to their advantage for global implementation.The company uses media sites in multiple was as advertisement and marketing tools.
They attempt to implement responsible sourcing within their supply chains, raise awareness of both water conservation and help to preserve natural capital. To do this they promote global transparency, and voice their engagement in climate policy. Nestlé’s labor practices consistently address human rights impacts in their operations and supply chains. Additionally, Nestle works towards enhancing the gender equality in the developed global offices. One example of Nestlé’s influence on their sourcing practices can be seen in Nigeria where infrastructure was few and far between and traditional delivery methods could not be achieved due to safety reasons to compensate nestle set their purchasing prices high as well as creating a multitude of small ware houses rather than the typical individual large ware house. They also adjusted their marketing scheme rather than posting to various forms of media as they would do in a developed country, they instead hired local singers and dancers to travel to different villages advertising the Nestle products in a way that would appeal to the different
Society quickly came to expect people to be dressed in clean clothes. This required more washing cycles, reducing the labour saving impact of the machine.