Unilever Strategic Management

REPORT ON STRATEGIC
MANAGEMENT
Unilever
Pakistan Ltd
Background of Unilever Pakistan
Ltd Co.
 Unilever Pakistan Ltd., a subsidiary of the
Unilever Group is operating in Pakistan since
1948.
 The Company’s main business lines are Soaps
and Detergents, Personal Products, Cooking Oils
and Fats, Packed Teas, and Ice Creams.
 Unilever has a long list of brands such as Surf,
Vim, Rin, Lifebuoy, Sunlight, Lux, Rexona,
Sunsilk, Close-Up, Blue-Band, Dalda, Planta,
Lipton’s Yellow Label, Taaza and Richbru, Brook
Bond’s Supreme and Kenya Mixture etc
Mission Statement:
 We are exemplary through our commitment to Business
Ethics, Safety, Health, Environment and involvement in
the Community.
 We use our superior consumer understanding to produce
breakthrough innovations in brands and channels.
 We strive to remain an ever simple and enterprising
business.
 We serve the everyday needs of all consumers
everywhere for foods, hygiene and beauty through
branded products and services that deliver the best
quality and value.
 We attract and develop highly talented people, who are
excited, empowered and committed to deliver double-
digit growth.
Vision Statement:
 Touching hearts, changing lives.

Unilever Pakistan Limited
Objectives
 Top Priority – Fulfilment of
customer’s needs:
 “Unilever aims to continuously improve

the environmental performance of their
process and their brands to achieve
sustainable profitable growth as their
consumer expects them to fulfil their
needs with brands that have low
environmental impact.”
Objectives Cont…..
 To be honest, transparent and ethical in our
dealings at all times.
 To win the hearts and minds of consumers.
 To deliver what they promise.
 To become empowered leaders who are inspired
by new challenges and have a bias for action.
 To believe in trust, truth and outstanding
teamwork. They value a creative and fun
environment.
 They care about and actively contribute to the
community in which they live.
STRATEGIES
 Product Development
 Unilever continuously work on improving product

qualities and features to capture the market.
 It analyzes the demand to check whether the
product is profitable or not so that if the product
is not it should be discontinued.
 It keeps an eye on the competitor’s products in
order to become the market leader of certain
product.
STRATEGIES Cont…...
 Corporate Strategies
 Leader in the consumer goods market.
 Managing govt relations to influence duty

on imports of raw materials and
countering smuggling of competitors
goods
 Human Resource Strategies.
 Managing employee recruitment and placement

to put the right person for the right job.
 Replacement Planning.
 Employee rotation in the department.
 Employee training.
 Remuneration survey for salary adjustments of
employees.
 FINANCE STRATEGIES
 Maintain company finance operations with in the

resources
 Maintain working capital keeping stock debtors low.
 Adhere strictly to the ICAP accounting practices and laws
 Tax management to gain legitimate advantages
lessening the burden
 Ensure internal control through internal audit
 Introduction of IT and implementation
 Ensure sales revenue generation meet targets
 Maintenance of purchasing function
 ACQUISITIONS & MERGERS
 Lever has successfully completed an acquisition

of Pakistan Industrial promotional (pvt) limited,
manufacturers of polka in 1999.
 The company completed an merger with Brooke
Bond (BB) Pakistan last year, where each BB
shareholder received one lever share for every
4.3 BB shares .The merger has resulted in
consolidation of distribution channels, thus,
reducing operating costs for the company.
SWOT ANALYSIS OF THE
COMPANY
 OPPORTUNITY ANALYSIS
 The rapid expanding urban population is the key
opportunity.
 Awareness growing in rural areas due to education
children with family members abroad sending foreign
income.
 THREATS
 P& G is the significant multinational threats with
presences in soap, detergents and personal products.
 Purchasing power can affect demand due to depressed
economy resulting in inflation.
COMPANY Cont…..
 STRENGTHS
 Research and development and financial support from
parent Unilever.
 Strong brand names. most of the brands for e.g.
(detergent are now used generically to present product.
 Sound and experienced management.
 Excellent marketing department assisted by a highly
regarded marketing research unit.
 Merger with Brooke bond was expected to result in cost
saving and spur earnings growth and its working as per
expectations.
COMPANY Cont……
 WEAKNESSES
 About 80% of raw material is imported for the
manufacturing of the consumer goods. Raw
material constitutes about 85% of
manufacturing cost, leaving Levers margin
exposed to rupee devaluation.
 Rampant smuggling of tea and detergents has
seriously affected levers sale and earning.
Unless the govt. takes serious steps to curb
smuggling growth in sales and earning will
continued to be significantly restrained.
 Low liquidity of stock due to higher prices.
SPACE MATRIX
BCG MATIX
EVALUATING THE BUSINESS
STRAGEY
 Performance Test:
 Unilever main competitor is P& G its financial position is
good, the market position is average and technological
performance is also average.
EVALUATING THE BUSINESS
STRAGEY Cont……
 Consistency Test
 a. Buyer power and trends in demand for product is expected to
change in five years, although Unilever strategy is consistent, but it
may need some changes.
 b. Substitutes or alternatives would increase as buying power
changes and new taste are developed with changing lifestyle.
Unilever strategy is consistent in this case.
 c. Likely Entrants would also increase but Unilever believes it cannot
affect their market share as they have a strong position in mind of
consumers.
 d. Competitors are going to increase but Unilever does a continuous
effort to stratify their customer needs and demands.
 e. Supplier Power would increase in five years but Unilever strategy
is consistent with local supplier and international supplier.
Competitive Advantage
 Economic Advantage: P&G make sure that its

products are available at all outlets. It is also occupies a
major market share.
 Disadvantage: P&G has a weak cost structure and
not occupies a strong image like Unilever.
 Human ResourceAdvantage: P&G also believes in

teamwork, and continuously boost the morale of their
employees.
 Disadvantage: P&G has a formal culture
atmosphere.
Conclusion & Recommendation
 After the analysis of the IEFM and EFEM,
we see that the company is above
average. With respect to SPACE and
GRAND matrix analysis, Unilever is placed
in aggressive quadrant and it can follow
any of the strategies e.g. market
penetration, forward integration,
backward integration etc.
Conclusion & Recommendation
Cont…..
 According to the analysis in QSPM, we would like
Unilever to pursue Cost Reduction strategy
which is a market development strategy.
Although the current business strategy of
Unilever is Product Development as they are
bringing different product like Green Tea in the
market. They are also modifying their products
for e.g. Lipton in new round tea bags and Lux by
adding a different ingredient.

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REPORT ON STRATEGIC

 Touching hearts, changing lives.

 “Unilever aims to continuously improve

 Unilever continuously work on improving product

 Leader in the consumer goods market.

 Managing govt relations to influence duty

 Managing employee recruitment and placement

 Maintain company finance operations with in the

 Lever has successfully completed an acquisition

 Economic Advantage: P&G make sure that its

 Human ResourceAdvantage: P&G also believes in

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