EFE Matrix

Key External Factors OPPORTUNITIES 1. 2. 3. 4. Could develop new products. Local competitors have poor products. Unrelated diversification. Since pak has one of the least cocentrated retail market in the world with state owned utility stores corporation holding Around 0.3 % of the market. USC has given license to many Super Stores which is a seems to be a good oppurtunity as they can make alliances with them. Aaround 40% tea is smuggled so that can be catered too by unliever thus a big market remain un-addressed. Only urban area are familiar with shampoo there still awaits a long way to go. End-users respond to new ideas. Support core business economies. Could seek better supplier deals. Strategic acquisitions can help Unilever to expand its business. Population continously increasing in Pakistan. Huge potential in the rural areas of Pakistan Big opportunity in food business. Export opportunity of hlal foods to Foreign Countries. Younger generation is becoming look and

Weight

Ratings

Weighted Score

0.02 0.03 0.03 0.02

4 3 1 1

0.60 0.45 0.10 0.20

5.

0.02

0.04

6.

0.03

0.06

8. 9. 10. 11. 12. 13. 14. 15. 16. 17.

0.04 0.03 0.02 0.02 0.02 0.03 0.03 0.02 0.04 0.04

3 2 1 3 4 4 4 4 3 2

0.12 0.06 0.02 0.06 0.08 0.12 0.12 0.08 0.12 0.08

beauty conscious. 18. 19. 20. 21. 22. 23. More awareness about hair protection and hair cleanliness. New soups can be introduced in winters. E-commerce- Online Selling can be initiated. Forward Integration can be done by launching unilever stores Enough space available for launching of nutritious food items. Like Pepsi's Lays and P&G's Prigle can Come up with Chips. Pakistan is the third largest importer of tea in the world so huge potential in tea farming. Huge oppurtunity is awaiting in detergent as about 50% of the population uses laundry soap for fabric washes. THREATS 1. 2. 4. 5. 6. 8. 9. 10. 11. 12. 13. 14. 15. Legislation could impact. Existing core business distribution risk. Retention of key staff critical. Could distract from core business. Possible negative publicity. Vulnerable to reactive attack by major competitors. Health consciousness people may find an alternative low calorie diets and exercise. Low GDP growth rate. Deteriorating security conditions. Energy shortage. Smuggling of tea and its own international products. Deteriorating value of Pakistani currency. High taxation. 0.02 0.02 0.02 0.01 0.01 0.02 0.01 0.02 0.01 0.01 0.02 0.01 0.02 2 2 4 1 2 1 3 2 4 2 3 2 3 0.04 0.04 0.08 0.01 0.02 0.02 0.03 0.02 0.04 0.02 0.06 0.02 0.06 0.04 0.03 0.03 0.04 0.03 0.03 2 1 3 2 4 4 0.08 0.03 0.09 0.08 0.12 0.12

24.

0.04

0.12

25.

0.04

0.12

16. 17. 18. 19.

The local companies. Price wars. Competitors' aggressive marketing. Religious Semitism can be provoked being a Non Muslim MNC. Distribution and Retailer ship can be compromised for various reasons like they may go bankrupt or other factors could influence which will have direct impact on it. Due to Political situation their top notch could migrate. Strategic allies might seek for better opportunities. Total Weighted Score

0.02 0.01 0.02 0.02

4 4 4 3

0.08 0.04 0.08 0.06

20.

0.02

0.04

21. 22.

0.01 0.01 1.0

2 2

0.02 0.02 3.87

Total weighted score of EFE matrix of UNILEVER (3.87) shows strong response of company towards external factors.

CPM Matrix

Critical Success Factor 1. 2. Advertising. Product Quality.

Weight 0.1 0.09

P&G Rating 4 4 Score 0.4 0.36

Lakson Rating 2 2 Score 0.2 0.18

Reckit Rating 3 3 Score 0.03 0.27

3. 4. 5. 6. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19.

Price. Management. Financial Position. Customer Loyalty. Marketing/Branding. Market Share. Infrastructure. Technology. Assets. Distribution & Network. Logistics and Supply Chain. Potential Human Resource. Consumer Feedback System. Product Line Strategic Alliances Research & Development Total Weighted Score

0.1 0.04 0.04 0.06 0.04 0.06 0.05 0.06 0.06 0.03 0.06 0.05 0.04 0.04 0.04 0.04 1.0

3 4 4 4 4 4 3 4 3 4 4 4 3 4 3 4

0.3 0.16 0.16 0.24 0.16 0.24 0.15 0.24 0.18 0.12 0.24 0.20 0.12 0.16 0.12 0.16 3.71

4 3 3 3 2 2 4 2 4 2 3 3 2 3 3 2

0.04 0.12 0.12 0.18 0.08 0.12 0.20 0.12 0.24 0.06 0.18 0.15 0.08 0.12 0.12 0.08 2.39

3 4 3 3 3 3 2 4 2 4 4 4 2 3 3 4

0.03 0.16 0.12 0.18 0.12 0.18 0.10 0.24 0.12 0.12 0.24 0.20 0.08 0.12 0.12 0.16 2.59

IFE Matrix

Key Internal Factors STRENGTHS 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. Customers Loyalty. High dividend pay out. International brand strength. Market share of 41% Strong financial position. Have won more than 10 awards. Oldest MNC of Asia Highly Motivated Human Resource Vast Distribution Networks. Large range of brands to match the diversity of its consumers. Committed to business ethics, safety, health, environment and community. An Active participant in Social Service. Latest state of the art facilities and technology. Possess multiple international standard certifications like ISO 9001, ISO 14001, OHSAS 18001. Well-established brand name. Good social responsibility to shareholders and employees. Established Raabta Consumer Careline for their consumers. Spare manufacturing capacity. Enjoying market edge of 41% in FMCG industry. UNILEVER is at number one in ice cream segment

Weight

Ratings

Weighted Score

0.04 0.03 0.03 0.04 0.04 0.03 0.04 0.06 0.05 0.03 0.05 0.03 0.03 0.02 0.04 0.04 0.04 0.03 0.03

4 4 4 4 4 3 3 4 4 3 3 3 4 3 4 3 3 3 4

0.16 0.12 0.12 0.16 0.16 0.09 0.12 0.24 0.20 0.09 0.15 0.09 0.12 0.06 0.16 0.12 0.12 0.09 0.12

WEAKNESSES 1. 2. 3. 4. 5. 6. 7. 8. 9. Strategic Alliance Costly Products. Discrimination among Employees. Weak Web Presence. Contradictions on website. Only 1500 Employees are on their Payroll as per website. Many protests have been conducted by labour Unions against Unilever Pakistan. Accused of involvement in exploitive tactics against indirect employees. Not able to manage factories on their own closing and outsourcing. As per IGI Security Report, The main focus has been investing in HPC business constituting over 60% of the total advertising expenditure. However, the growth in sales has lagged the growth in advertising spend. Heavy reliance on casual, temporary and agency workers, workers whose contracts bring them no job security and inferior pay and benefits to those formally employed by Unilever, is the rule throughout the company's operations. Recently, ULEVER has closed down the Karachi tea factory in view of low demand and sales volumes. Using Nameless Factories for Prduction as in the case of Tea, in Karachi. Unilever systematically violates worker and trade union rights through direct attacks on trade unionists Indirect Distribution Network. Had to sale dalda. Operational Complexity. 0.02 0.04 0.03 0.01 0.02 0.02 0.02 0.01 0.01 1 2 1 1 1 1 1 1 2 0.02 0.08 0.03 0.01 0.02 0.02 0.02 0.01 0.02

10.

0.02

0.04

11.

0.02

0.02

12.

0.01

0.02

13.

0.01

0.02

14. 15. 16. 17.

0.02 0.01 0.02 0.01

1 1 2 1

0.02 0.01 0.02 0.01

Total Weighted Score

1.0

2.88

The score 2.88 shows that company has solid internal position, its strengths are overcoming the