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Strategic approach in improving Unilever products
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Value chain analyses a firm 's internal activities such as planning, production, and development, packaging and distribution so as to create value for clients. The function of the value chain is to identify the sources for cost reduction along with quality improvement. It means value chain is used to identify the strong and weak points, positive and negative points, the scope of improvement; in a nutshell, the advantages and disadvantages of the activities taking place in the system. The value chain is also called as a strategic analysis tool and it is a well-known concept in business management industry. Michael Porter coined the definition for value chain analysis also called as value chain in the year 1984. He believes that the effectiveness …show more content…
Outbound logistics: They are made up of centralized logistic centers to promote efficiency, global network, reduced emission of CO2 by 22% to ensure ecological sustainability and lastly to improve customer service. 4. Marketing and Sales: Annually, Unilever spends around 7 billion euros in marketing and sales. The reason to do so is to promote customer loyalty and relationships, brand equality and creates competitiveness of brand. 5. Service: Unilever works quite closely with the customer to ensure customer satisfaction and also to understand the trending needs of the customer. Supportive activities: 1. Infrastructure: Unilever board is responsible for the promotion of values, the CEO’s handle implementation, Legal officer deals with breaches and legal issues and senior management handles day-to-day operations. 2. Human resource management: In the year 2009, Unilever started a program to train people with right skills called as ‘talent and organization readiness’ program. In 2010, to align personal development plans and Senior leadership skills, It launched a Unilever Leadership Development program. 3. Technology development: Unilever spends around 1 billion euros on Research and Development. 4. Procurement: Unilever has 160,000 suppliers, 273 factories, 500 factory sites around 190 …show more content…
OPPORTUNITIES FOR UNILEVER: In demographics, they can promote their products to a wide range of population and can use product loyalty that is there from generations. They can use automated manufacturing mechanism. They can make use of the current economic crisis where small companies have to liquidate their business as they go into a loss, to increase their sales. As consumers are aware of healthy products, Unilever can boost their sales by launching the product in this sector. CONCLUSION 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
Founded in 1986, Pret A Manger is a fast food chain, which produces freshly prepared, natural food with over 250 stores throughout the United Kingdom, France, Hong-Kong and the United States. Unlike most fast-food chains, Pret is a private company; they do not face the same pressure to grow as a public company does. However there are many factors that affect Pret A Manger’s marketplace such as economy, competition, technology, political environment, and the standard of living. This report evaluates major internal and external factors affecting Pret A Manger using various analytical techniques.
The external environment has been analysed in previous sections, Appendix E lists internal capability and resources of Burberry by using porter’s value chain model, the VRIO framework will also be used to test whether the brand adds value by such activities or not.
Value chain model highlights specific activities where the information systems could be applied. This model is set to identify leverage points in which IS could have a strategic impact to enhance company’s competitive position. The value chain perceives firm as a series of interconnected activities that add a margin of value.
Sainsbury’s is in the market of an oligopoly and few big firms run this kind of market. One of the objectives of Sainsbury’s is to gain market share. Sainsbury’s will be looking to beat competitors. To beat competitors Sainsbury’s will need to research and see what business activity they do compare to Sainsbury’s. If they research they can think of way to beat competitors in the market.
This essay describes how Costco has undergone evolutionary changes from its inception to present through its value chain model to become a success story. For example, in its distribution system, Costco utilizes the cross-docking technology to help in the conveyance of products in the different locations. This ensures that there are no product delays in the respective markets (Guo, 2016). Accordingly, Costco can attract more customers who prefer the warehousing services provided by the company.
A working relationship with suppliers to build a supply chain that is sustainable can help the company cut cost, create new sources of revenues, better manage business risks, and build the value of their brand. Through efforts, such as improved energy efficiency and streamlined supply chain logistics, Nestle can considerable reduce it cost thus increase profitability in the future. It is also recommended that Nestle should incorporate bottom line sustainability issues into its corporate risk management as this would work towards reducing risk. Show casing innovative solutions to negative impacts of the supply chain operations can work towards brand value. Therefore, sustainable supply chains can reinforce Nestle’s commitment to remaining profitable for the benefit of the company’s
More specifically, in order to undertake a value-chain analysis, a company should start by identifying each small part of the
"A lot of companies think of supply chain as a cost centre. They don’t always see it as helping to funnel top-line growth." Supply chain touches practically every part of operations inside an organization: from determining client interest, to sourcing crude materials, to assembling, distribution and returns Supply chain is to adjust supply and request, for example the demand for goods and services. You need to get the right quantity and quality of goods and services
Having an effective logistics, production and shipping strategy can give companies an advantage over their competitors. Producing and getting products to customers can be costly. Having an effective strategy can help reduce costs and increase profits. Colgate works closely with suppliers in order to increase quality, cost effectiveness and innovation. The company only chooses to work with suppliers that share the same values as the Colgate-Palmolive company (Colgate, 2011).
The mission that inspires HUL's over 15,000 employees is to "add vitality to life". With 35 Power Brands, HUL meets everyday needs for nutrition, hygiene, and personal care with brands that help people feel good, look good and get more out of life. It is a mission HUL shares with its parent company, Unilever, which holds 51.55% of the equity. A Fortune 500 transnational, Unilever sells Food, Home and Personal Care brands in about 100 countries worldwide. Unilever's mission is to add Vitality to life.
Unilever, the parent company of AXE shower gel, was founded in 1930 when a soap company and a margarine company merged. Due to their control on oilseeds, the main ingredient for many soaps and margarines, Unilever was able to penetrate the market for soaps and shower supplies. They have since expanded and now own many popular brands such as AXE, lever2000, Ben and Jerry’s, and a number of others. “They’re all part of the ‘Unilever armada of brand names’. To make sure the brand names do not go unnoticed, Unilever spends huge amounts of money on marketing and advertising. Advertising has always been a keystone of Unilever’s businesses.” (“Unilever, Overview”). This focus on advertising is often seen throughout the AXE product market, particularly with their shower gels.
The value chain analysis allows the firm to understand the parts of its operation that create value and those that do not. This is important for firms to understand because the firm earns above-average returns only when the value it creates is greater than the costs incurred to create that value. The value chain analysis has two parts which include the value chain activities and support functions. The value chain activities are “activities or tasks the firm completes in order to produce products and then sell, distribute, and service those products in ways that create value for customers” (Hitt, Ireland, & Hoskisson). The support functions are the “activities or tasks the firm completes in order to support the work being done to produce, sell, distribute, and service the products the firm is producing” (Hitt, Ireland, & Hoskisson)
Furthermore, Men’s skin care was led by 29% value share in 2015 with Unilever’s Dove Men+ Care. To celebrate modern men’s caring character and vision of masculinity it launched new campaigns with which it recognized that how being caring makes them strong (Passport 2016"Men 's grooming in Canada"). The strategy of Unilever is to focus on dynamic categories and premium segments remained consistent in 2016 and possession of Dollar shave club showed positive results. TRESemme Botanique and Lux Silicone- Tree are the organic products which help Unilever to align its brand in emerging market with growing sophistication.
2. What is the difference between a.. Explain how the company’s value chain activities can be better linked to create value for the company. A chain value is a diagram that a company uses to determine its activities and components such as its functions or management from top to bottom or vice versa.... ... middle of paper ...
By adopting the value chain into a manufacturing company, it will gain efficiency, effectiveness, reduce the product cost and improve continuously. For example, Toyota has implemented Toyota Product System (TPS) integrated information system with the business process which allowed the company to be more efficiency, effectiveness and reduce inventory cost. (Toyota