2014

FARMAN
ID # 7462
8/11/2014
STRATEGIC MANAGEMENT
ASSIGNMENT 1 & 2



Contents
1. INTRODUCTION OF UNILEVER PAKISTAN Ltd. ...................................................................................... 5
Unilever Pakistan Ltd: ................................................................................................................................... 5
Overview of Unilever Pakistan Ltd. ............................................................................................................... 6
Accountable to our stakeholders: ................................................................................................................. 6
FACTS & FIGURES .......................................................................................................................................... 7
OUR BRANDS ................................................................................................................................................. 9
Food brands .................................................................................................................................................. 9
Badami .............................................................................................................................................. 9
Blue Band ........................................................................................................................................ 9
Brooke Bond A1 ........................................................................................................................... 9
Brooke Bond Supreme ............................................................................................................. 9
Cornetto ........................................................................................................................................... 9
Energile ............................................................................................................................................ 9
Fruttare ............................................................................................................................................ 9
Knorr .................................................................................................................................................. 9
Lipton .............................................................................................................................................. 10
Magnum ......................................................................................................................................... 10
Pearl Dust ..................................................................................................................................... 10
Unilever .......................................................................................................................................... 10
Rafhan ............................................................................................................................................. 10
Wall's Desserts .......................................................................................................................... 10
Wall's Kid's Range ................................................................................................................... 10
Personal care brands ..................................................................................................................... 11
Clear (Shampoo) ...................................................................................................................... 11
Close Up ......................................................................................................................................... 11
Dove ................................................................................................................................................. 11
Fair & Lovely ............................................................................................................................... 11
Lifebuoy shampoo .................................................................................................................... 11
Lifebuoy soap ............................................................................................................................. 11
Lux .................................................................................................................................................... 11
Pond's.............................................................................................................................................. 11
Rexona ............................................................................................................................................ 11
Sunsilk ............................................................................................................................................ 11
Vaseline .......................................................................................................................................... 12
Home care brands ............................................................................................................................ 12
Comfort .......................................................................................................................................... 12
Rin ..................................................................................................................................................... 12
Sunlight .......................................................................................................................................... 12
Surf Excel ...................................................................................................................................... 12
Vim .................................................................................................................................................... 12
Offices and Sites .......................................................................................................................................... 13
Our Vision .................................................................................................................................................... 13
Our Mission ................................................................................................................................................. 13
2. Internal and External Audit of Unilever .............................................................................................. 14
Strengths: .................................................................................................................................................... 14
51. Well-established brand name. ..................................................................................... 16
52. Aware of the Consumer Buying Behavior. .............................................................. 16
53. Unilever has Global reach, with local Roots. ......................................................... 16
54. Vast Distribution Networks. .......................................................................................... 16
56. Reached 5.2 Million People through Lifebuoy Handwash Programs in 2013.
16
57. Reached 6.2 Million People through Sustainability Programs in 2013. ....... 16
58. 82608 Meals were provided to World Food Programs. .................................... 16
59. 16 % Reduction in it's Carbon Footprint through Unilever Head Office
Initiatives. ....................................................................................................................................... 16
Weaknesses: ............................................................................................................................................... 17
3. Brands have swallowed up the Parent Company Name. ...................................... 17
Opportunities: ............................................................................................................................................. 19
Threats: ....................................................................................................................................................... 21
EFE : THE EXTERNAL FACTOR EVALUATION MATRIX .................................................................................. 23
CPM Matrix ................................................................................................................................................. 26
IFE Matrix .................................................................................................................................................... 28
QSPM MATRIX ............................................................................................................................................. 31
BCG MATRIX ................................................................................................................................................ 36
SWOT MATRIX ............................................................................................................................................. 37
Proposed Strategies: ................................................................................................................................... 38


























1. INTRODUCTION OF UNILEVER PAKISTAN Ltd.



Unilever is one of the world's leading suppliers of fast moving consumer goods across Foods
and Home and Personal Care categories. Unilever's portfolio includes some of the world's
best known and most loved brands.
Unilever Pakistan Ltd:

Unilever Pakistan (70.4% Unilever equity) is the largest FMCG company in Pakistan, as well
as one of the largest multinationals operating in the country. Unilever Pakistan Ltd., a
subsidiary of the Unilever Group is operating in Pakistan since 1948. The Companys 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, Liptons Yellow Label,
Taaza and Richbru, Brook Bonds Supreme and Kenya Mixture etc. which are common
household names in Pakistan.

The Companys factory at Rahim Yar Khan was one of the first industrial units to be
constructed after the creation of Pakistan. As the consumer base expanded over the years
and the Company entered into new product lines like Personal Products and Margarine, it
invested further in the installation of modern manufacturing facilities including a factory at
Karachi. Today, the Company is using latest state-of-the-art technology for producing high
quality products.

In 1995, the Company established a new factory near Lahore to manufacture the Walls
range of ice creams, which have become popular within a short time. In 1996, the present
group Unilever UK acquired the Polka Group that produced ice creams. In 1999, Pakistan
industrial promoters (Private) Limited, owners of Polka brands of Ice Cream were merged
with Lever.

In order to leverage the synergies of Unilevers international brand strength, market edge
and corporate image, Lever Brothers Pakistan Ltd. changed its name to Unilever Pakistan
Ltd., in August 2002.

Overview of Unilever Pakistan Ltd.
The company had a turnover of Rs. 23.3 bn (Euro 309 mn) in 2007, and enjoys a leading
position in most of its core Home and Personal Care and Foods categories, e.g. Personal
Wash, Personal Care, Laundry, Beverages (Tea) and Ice Cream.
The company operates through 5 regional offices, 4 wholly owned and 6 third party
manufacturing sites across Pakistan.
Accountable to our stakeholders:
Since the time Unilever Pakistan began its operations in 1948, the Company has been
closely connected to the Pakistani people and its brands have been an integral feature in
their daily lives. In fact, the nature of our business enables our brands to be the pulse and
heartbeat of the 164 million people in Pakistan.
This is a huge commitment, which makes us responsible and accountable to all our
stakeholders and society as a whole and strengthens our resolve to:
Make a positive difference to the lives of low income consumers
Create new opportunities for growth
Improve the overall quality of life in Pakistan, by promoting education, nutrition,
health and hygiene.






















FACTS & FIGURES


Unilever Pakistan has 5 wholly owned and 7 third party manufacturing sites across
Pakistan
Unilever Pakistan has employees around 1,500 on their payroll and many thousands
indirectly.
Listed in Karachi Stock Exchange.
Unilever Pakistan has 32 products as per its website.
Head office is in Karachi.
During the year ended December 31, 2011, the Company produced 48,313 metric
tons of home and personal care products out of its annual capacity of 60,446
metric tons.
28,909 metric tons of beverages out of 62,377 metric tons.
43 million liters of ice cream out of its annual capacity of 77 million liters.
Unilever Pakistan Ltd. had revenues for the full year 2011 of 51.9B. This was
16.1% above the prior year's results.
In 2013 it was $44.7 B
Share Value 6,261 PKR.
Annual earnings equaled 323.88 per share.
The Company had three subsidiaries, namely Lever Chemicals (Private) Limited and
Levers Associated Pakistan Trust (Private) Limited, which act as trustees of Union
Pakistan Provident Fund (Unilever Provident Fund), and Sadiq (Private) Limited,
which is not carrying on any business operations.























The directors are pleased to present the financial statements for the nine months ended September 30, 2013.


2013 2009
Net Sales (Rs000) 33,009,192 28,508,781
Profit before taxation (Rs000) 3,232,527 3,370,165
Profit after taxation (Rs000) 2,135,755 2,292,248
























September 30, 2013 (Rupees in thousands)

Home and Personal
Care
Beverages Ice Cream Other Total

Revenue 6,625,359 2,853,108 1,738,235 288,682 11,505,384
OUR BRANDS


Food brands
Unilever is one of the world's leading food companies. Our passion for understanding what
people want and need from their food - and what they love about it - makes our brands a
popular choice.
Badami
"Badami" is Walls response to the traditional kulfi.
Blue Band
Blue Band is essential for a familys healthy growth and development and to enjoy a lifestyle
full of vitality.
Brooke Bond A1
Brook Bond A1 is the strong cup of tea that gives the strength to face challenges and stand
up for what you believe in.
Currently, Brooke Bond Supreme is running the Chaske Zindagi Ke campaign
Brooke Bond Supreme
Brooke Bond Supreme is part of life for the Pakistani consumer, bringing families closer
together with its rich taste and traditions
Cornetto
The Cornetto experience consists of a delicious, crispy-baked wafer, coated inside fro m top
to bottom with a chocolate layer, rich ice cream inside, topped off with sauce and chocolate
chips.
Energile
Bringing Vitality to your life.
Fruttare
Fruttares mission is to inspire in people the freedom to indulge by providing both pleasure
and health through the natural goodness of fruit without the guilt of too many calories.
Knorr
Knorr believes in adding magic to every day meal moments.
Lipton
Lipton is Tea Tea is Lipton.
Magnum
Celebrate pleasure with the tempting Magnum range an irresistible combination of thick,
cracking chocolate with creamy vanilla ice cream.
Pearl Dust
Lipton Pearl Dust is the Sindhi soul that imbues intimacy and warmth in a couples
relationship

Unilever
Unilever Food Solutions helps chefs serve tasty, wholesome meals that keep guests coming
back for more. We create ingredients that save precious prep time in the kitchen, without
compromising on flavor or flair.
Rafhan
From the highly nutritious and healthy Corn Oil to the lip smacking Desserts Rafhan today
offers a complete meal package with the cherry on top!
Wall's Desserts
At Walls, we like to think we have one of the best jobs in the whole world; making delicious
frozen dessert treats for the whole family.
Wall's Kid's Range
Walls Kid's Range brings to you the surprise of delicious frozen desserts wrapped around
fun and adventure.



Personal care brands
Our personal care brands, including Dove, Lifebuoy, Lux, Pond's, Rexona and Sunsilk, are
recognised and respected around the world. They help consumers to look good and feel
good and in turn get more out of life.

Clear (Shampoo)
Clear spells confidence for the young Pakistanis of today.
Close Up
Our mouths are our gateway to life. We use them to eat, drink, talk, laugh, smile and what
not!
Dove
To help you enjoy your own brand of beauty, Dove provides an extensive range of cleansing
and personal care products.
Fair & Lovely
Asias leading fairness brand.
Lifebuoy shampoo
Providing healthy hair to all Pakistani consumers.
Lifebuoy soap
Lifebuoy's goal is to provide affordable and accessible hygiene and health solutions.
Lux
Lux brings out the star in you!
Pond's
Making a real difference to women's skin and the way they live their lives.
Rexona
With Rexona you know your deodorant wont let you down.
Sunsilk
Sunsilk provides real solutions to women's everyday hair needs everywhere.

Vaseline
To help you enjoy great, healthy skin everyday.

Home care brands
In many parts of the world we lead the home care market, with brands such as Omo, Surf,
Comfort and Cif. It's more than just hygiene with homes and clothes that are clean and
cared for, we help you get more out of life.

Comfort
Comfort fabric conditioner helps your loved ones feel cared for everyday through clothes
with amazing shine and fragrance that no detergent alone can deliver.
Rin
Consumer insight shows that one of the leading drivers that indicate a good wash is the
level of whiteness and brightness that clothes have after the use of a detergent powder. Rin
is formulated to offer whiteness and bring back life in your everyday clothes.
Sunlight
Sunlight aims to transform the chore of washing clothes into a moment of delight for
Pakistani housewives by giving them a magical wash experience of lemons and thousands of
flowers.
Surf Excel
Remember when you were a child? How you were free to explore, returning home covered
in dirt and other stains that you wore like the badges of an intrepid discoverer?
Vim
The globally renowned brand with its revolutionary one-wipe degreasing formula, now in
Pakistan!

Offices and Sites

The company operates through 5 regional offices, 4 wholly owned and 6 third party
manufacturing sites across Pakistan.

Our Vision

We help people around the world meet everyday needs for nutrition, hygiene and wellbeing,
with brands that help people look good, feel good and get more out of life.
Our Mission

Vitality is at the heart of everything we do. It's in our brands, our people and our approach
to business.



























2. Internal and External Audit of Unilever

Strengths:

1. End-user sales control and direction.
2. Right products, quality and reliability.
3. Superior product performance vs competitors.
4. Better product life and durability.
5. Spare manufacturing capacity.
6. Staff has experience of end-user sector.
7. Maintain customer/consumer lists.
8. Direct delivery capability.
9. Promoting special events of every culture.
10. Oldest MNC of Asia
11. Continuously working on Product Quality and Innovations.
12. Existing sites are big enough to serve easily serve.
13. Products have required accreditations.
14. Management is committed and confident.
15. Good diversity of nationalities on the Unilever executive board which indicate no
discrimination.
16. Encouraging managerial personnel from developing world as well as women
17. Spending Lacs of Rupees on ERP Implementation.
18. Ability to tailor products to customer demands.
19. In-depth understanding of different markets and innovate the products suitable for
each market, i.e Geo-Centric and Poly Centric.
20. Adhering to a policy of listening to customers.
21. UNILEVER is enjoying market edge of 41% in FMCG industry. UNILEVER is at number
one in ice cream segment and having 14% market share all over the globe.
22. UNILEVERs key competitive advantage over other market participants is the retail
reach of the company. UNILEVER services 500,000 outlets with 50 % through direct
distribution and remaining via wholesalers.
23. Practice Human Needs theory.
24. Employees are promoted quick and timely.
25. Close Monitoring of Human Resources.
26. Provide Work, Life Balance to their employees.
27. PKR 2.43m Employee contribution towards flood relief and rehabilitation work.
28. Facilitate purchase of houses, vehicles and computers repayable in monthly
installments to employees.
29. Established Raabta Consumer Careline for their consumers.
30. Global leader in products for skin cleansing, deodorants, tea, shampoo, soap and
antiperspirants.
31. 385 Unilever employees volunteered in sustainability initiatives in 2013.
32. Successful Brand extension in dove from skin care to hair care .
33. Introduces new way of woring and teambuilding.
34. Responsibility for others
35. Supports Innovation, pioneering innovation
36. Robust career development
37. Traveling and Tourism
38. Diversity in opinions
39. Good social responsibility to shareholders and employees
40. Follow Participative style of Management.
41. Large range of brands to match the diversity of its consumers.
42. Path to growth-concentrating and refocusing on core brands
43. Open way of Communication
44. Employee is given extensive briefing and training soon after appointed.
45. Strong brand equity.
46. Innovative, Strong and effective brand communication
47. High dividend pay out.
48. Strong financial position.
49. Excellent supply chain management .
50. Corporate philanthropy .
51. Well-established brand name.
52. Aware of the Consumer Buying Behavior.
53. Unilever has Global reach, with local Roots.
54. Vast Distribution Networks.
55. Strong and Timley Strategic Decisions like, acquiring of polka, Knorr, Rafhan Foods
and selling of Dalda.
56. Reached 5.2 Million People through Lifebuoy Handwash Programs in 2013.
57. Reached 6.2 Million People through Sustainability Programs in 2013.
58. 82608 Meals were provided to World Food Programs.
59. 16 % Reduction in it's Carbon Footprint through Unilever Head Office Initiatives.






Weaknesses:
1. Rising raw material cost is being absorbed by the company.
2. Discrimination among Employees.
3. Brands have swallowed up the Parent Company Name.
4. Weak Web Presence.
5. Contradictions on website.

6. In-sufficient data available to quote for Uni-lever Pkaistan.
7. Operational complexity due to a large number of products in portfolio and due to
diverse work force.
8. Unilever Pakistan has got no identity of its own like hindutan Unilever.
9. Unilever.pk heavily rely on Unilever Gobal.
10. Only 1500 Employees are on their Payroll as per website.
11. Many protests have been conducted by labour Unions against Unilever Pakistan.
12. Accused of involvement in exploitive tactics against indirect employees.
13. Hire and Bless only Managers from First lIne to Top, labour is indirectly hired and not
on their payroll.
14. Not able to manage factories on their own closing and outsourcing.
15. Monopoly Practices and Political Bullying.
16. 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 which has been twice the revenue
grwth indicating that investment in brands have been unsuccessful in leveraging
sales growth.
17. 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.
18. At the Walls Ice Cream Factory in Lahore, for example, there are (still) 89 permanent
workers - and 750 workers employed on a casual basis.
19. At Unilever's Khanewal Tea Factory, for example, there are 22 permanent workers
and 1,000 casual employees.
20. The Lipton tea factory in Karachi formerly employed 132 permanent workers and 450
casuals.
21. Recently, ULEVER has closed down the Karachi tea factory in view of low demand
and sales volumes.
22. Not Following National laws and international Conventions and guidelines,

23. Using Nameless Factories for Prduction as in the case of Tea, in Karachi.
24. Unilever systematically violates worker and trade union rights through direct attacks
on trade unionists (involving armed police as well as hired thugs) as well as
aggressive outsourcing and casualization.
25. More focused towards outsourcing then in-house development and manufacturing.
26. Indirect Distribution Network.
27. Had to sale of Dalda.
28. Blueband being produced from Dalda factory.
29. Charged of signigng contract with Dalda that it wont enter into competition.
































Opportunities:

1. Could develop new products.
2. Local competitors have poor products.
3. Profit margins will be good.
4. End-users respond to new ideas.
5. Can surprise competitors.
6. Support core business economies.
7. Could seek better supplier deals.
8. Market Development in developing countries.
9. Strategic acquisitions can help Unilever to expand its business.
10. Population continously increasing in Pakistan.
11. Rural area markets to expand.
12. Big opportunity in food business.
13. Export opportunity of hlal foods to Foreign Countries.
14. Younger generation is becoming look and beauty conscious.
15. More awareness about hair protection and hair cleanliness.
16. Integration providing innovation opportunities.
17. New soups can be introduced in winters.
18. huge potential in the rural areas of Pakistan
19. E-commerce- Online Selling can be initiated.
20. Forward Integration can be done by launching unilever stores

21. Enough space available for launching of nutritious food items.
22. Like Pepsi's Lays and P&G's Prigle can Come up with Chips.
23. Pakistan is the third largest importer of tea in the world so huge potential in tea
farming.
24. Huge oppurtunity is awaiting in detergent as about 50% of the population uses
laundry soap for fabric washes.
25. Aaround 40% tea is smuggled so that can be catered too by unliever thus a big
market remain un-addressed.
26. Only urban area are familiar with shampoo there still awaits a long way to go.
27. Since pak has one of the least cocentrated retail market in the world with state
owned utility stores corporation holding






Threats:

1. Legislation could impact.
2. Existing core business distribution risk.
3. Market demand very seasonal.
4. Retention of key staff critical.
5. Could distract from core business.
6. Possible negative publicity.
7. Vulnerable to reactive attack by major competitors.
8. Health consciousness people may find an alternative low calorie diets and exercise.
9. Low GDP growth rate.
10. Double digit inflation.
11. Deteriorating security conditions.
12. Energy shortage.
13. Smuggling of tea and its own international products.
14. Deteriorating value of Pakistani currency.
15. High taxation.
16. The local companies.
17. Price wars.
18. Competitors' aggressive marketing.
19. Religious Semitism can be provoked being a Non Muslim MNC.
20. 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.
21. Due to Political situation their top notch could migrate.
22. Strategic allies might seek for better opportunities.



































EFE : THE EXTERNAL FACTOR EVALUATION MATRIX


Key External Factors Weight Ratings
Weighted
Score
OPPORTUNITIES
1. Could develop new products. 0.02 4 0.60
2. Local competitors have poor products. 0.03 3 0.45
3. Unrelated diversification. 0.03 1 0.10
4.
Since pak has one of the least concentrated retail
market in the world with state owned utility
stores corporation holding
0.02 1 0.20
5.
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.
0.02 2 0.04
6.
Aaround 40% tea is smuggled so that can be
catered too by unliever thus a big market remain
un-addressed.
0.03 2 0.06
8.
Only urban area are familiar with shampoo there
still awaits a long way to go.
0.04 3 0.12
9. End-users respond to new ideas. 0.03 2 0.06
10. Support core business economies. 0.02 1 0.02
11. Could seek better supplier deals. 0.02 3 0.06
12.
Strategic acquisitions can help Unilever to expand
its business.
0.02 4 0.08
13. Population continously increasing in Pakistan. 0.03 4 0.12
14. Huge potential in the rural areas of Pakistan 0.03 4 0.12
15. Big opportunity in food business. 0.02 4 0.08
16.
Export opportunity of hlal foods to Foreign
Countries.
0.04 3 0.12
17.
Younger generation is becoming look and beauty
conscious.
0.04 2 0.08
18.
More awareness about hair protection and hair
cleanliness.
0.04 2 0.08
19. New soups can be introduced in winters. 0.03 1 0.03
20. E-commerce- Online Selling can be initiated. 0.03 3 0.09
21.
Forward Integration can be done by launching
unilever stores
0.04 2 0.08
22.
Enough space available for launching of nutritious
food items.
0.03 4 0.12
23.
Like Pepsi's Lays and P&G's Prigle can Come up
with Chips.
0.03 4 0.12
24.
Pakistan is the third largest importer of tea in the
world so huge potential in tea farming.
0.04 3 0.12
25.
Huge oppurtunity is awaiting in detergent as
about 50% of the population uses laundry soap
for fabric washes.
0.04 3 0.12

THREATS
1. Legislation could impact. 0.02 2 0.04
2. Existing core business distribution risk. 0.02 2 0.04
4. Retention of key staff critical. 0.02 4 0.08
5. Could distract from core business. 0.01 1 0.01
6. Possible negative publicity. 0.01 2 0.02
8.
Vulnerable to reactive attack by major
competitors.
0.02 1 0.02
9.
Health consciousness people may find an
alternative low calorie diets and exercise.
0.01 3 0.03
10. Low GDP growth rate. 0.02 2 0.02
11. Deteriorating security conditions. 0.01 4 0.04
12. Energy shortage. 0.01 2 0.02
13.
Smuggling of tea and its own international
products.
0.02 3 0.06
14. Deteriorating value of Pakistani currency. 0.01 2 0.02
15. High taxation. 0.02 3 0.06
16. The local companies. 0.02 4 0.08
17. Price wars. 0.01 4 0.04
18. Competitors' aggressive marketing. 0.02 4 0.08
19.
Religious Semitism can be provoked being a Non
Muslim MNC.
0.02 3 0.06
20.
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.
0.02 2 0.04
21.
Due to Political situation their top notch could
migrate.
0.01 2 0.02
22.
Strategic allies might seek for better
opportunities.
0.01 2 0.02
Total Weighted Score 1.0

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 Weight
P&G Lakson Reckit
Rating Score Rating Score Rating Score
1. Advertising. 0.1 4 0.4 2 0.2 3 0.03
2. Product Quality. 0.09 4 0.36 2 0.18 3 0.27
3. Price. 0.1 3 0.3 4 0.04 3 0.03
4. Management. 0.04 4 0.16 3 0.12 4 0.16
5. Financial Position. 0.04 4 0.16 3 0.12 3 0.12
6. Customer Loyalty. 0.06 4 0.24 3 0.18 3 0.18
8. Marketing/Branding. 0.04 4 0.16 2 0.08 3 0.12
9. Market Share. 0.06 4 0.24 2 0.12 3 0.18
10. Infrastructure. 0.05 3 0.15 4 0.20 2 0.10
11. Technology. 0.06 4 0.24 2 0.12 4 0.24
12. Assets. 0.06 3 0.18 4 0.24 2 0.12
13. Distribution & Network. 0.03 4 0.12 2 0.06 4 0.12
14. Logistics and Supply Chain. 0.06 4 0.24 3 0.18 4 0.24
15. Potential Human Resource. 0.05 4 0.20 3 0.15 4 0.20
16. Consumer Feedback System. 0.04 3 0.12 2 0.08 2 0.08
17. Product Line 0.04 4 0.16 3 0.12 3 0.12
18. Strategic Alliances 0.04 3 0.12 3 0.12 3 0.12
19. Research & Development 0.04 4 0.16 2 0.08 4 0.16
Total Weighted Score 1.0

3.71

2.39

2.59






































IFE Matrix

Key Internal Factors Weight Ratings Weighted Score
STRENGTHS
1. Customers Loyalty. 0.04 4 0.16
2. High dividend pay out. 0.03 4 0.12
3. International brand strength. 0.03 4 0.12
4. Market share of 41% 0.04 4 0.16
5. Strong financial position. 0.04 4 0.16
6. Have won more than 10 awards. 0.03 3 0.09
7. Oldest MNC of Asia 0.04 3 0.12
8. Highly Motivated Human Resource 0.06 4 0.24
9. Vast Distribution Networks. 0.05 4 0.20
10.
Large range of brands to match the diversity of its
consumers.
0.03 3 0.09
11.
Committed to business ethics, safety, health,
environment and community.
0.05 3 0.15
12. An Active participant in Social Service. 0.03 3 0.09
13. Latest state of the art facilities and technology. 0.03 4 0.12
14.
Possess multiple international standard certifications
like ISO 9001, ISO 14001, OHSAS 18001.
0.02 3 0.06
15. Well-established brand name. 0.04 4 0.16
16.
Good social responsibility to shareholders and
employees.
0.04 3 0.12
17.
Established Raabta Consumer Careline for their
consumers.
0.04 3 0.12
18. Spare manufacturing capacity. 0.03 3 0.09
19.
Enjoying market edge of 41% in FMCG industry.
UNILEVER is at number one in ice cream segment
0.03 4 0.12


WEAKNESSES
1. Strategic Alliance 0.02 1 0.02
2. Costly Products. 0.04 2 0.08
3. Discrimination among Employees. 0.03 1 0.03
4. Weak Web Presence. 0.01 1 0.01
5. Contradictions on website. 0.02 1 0.02
6.
Only 1500 Employees are on their Payroll as per
website.
0.02 1 0.02
7.
Many protests have been conducted by labour
Unions against Unilever Pakistan.
0.02 1 0.02
8.
Accused of involvement in exploitive tactics against
indirect employees.
0.01 1 0.01
9.
Not able to manage factories on their own closing
and outsourcing.
0.01 2 0.02
10.
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.
0.02 2 0.04
11.
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.
0.02 1 0.02
12.
Recently, ULEVER has closed down the Karachi tea
factory in view of low demand and sales volumes.
0.01 2 0.02
13.
Using Nameless Factories for Prduction as in the
case of Tea, in Karachi.
0.01 2 0.02
14.
Unilever systematically violates worker and trade
union rights through direct attacks on trade
unionists
0.02 1 0.02
15. Indirect Distribution Network. 0.01 1 0.01
16. Had to sale dalda. 0.02 2 0.02
17. Operational Complexity. 0.01 1 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 weaknesses.


























QSPM MATRIX


Market Development Product Development

External Factors Weight
Attractive
Score
Total
Attractive
Score
Total

Opportunities

1. Could develop new products. 0.04 --- --- 4 0.16
2. Local competitors have poor products. 0.03 3 0.09 2 ---
3. Related diversification. 0.03 --- --- 2 0.06
4.
Around 40% tea is smuggled so that can
be catered too by unilever thus a big
market remains un-addressed.
0.03 4 0.12 1 0.03
5.
Only urban areas are familiar with
shampoo there still awaits a long way to
go.
0.04 4 0.16 --- ---
6. End-users respond to new ideas. 0.03 3 0.09 2 0.06
8. Could seek better supplier deals. 0.04 4 0.16 4 0.16
9.
Strategic acquisitions can help Unilever
to expand its business.
0.03 4 0.12 3 0.09
10.
Population continuously increasing in
Pakistan.
0.04 4 0.16 3 0.12
11.
Huge potential in the rural areas of
Pakistan
0.04 4 0.16 3 0.12
12. Big opportunity in food business. 0.03 2 0.06 4 0.12
13.
Export opportunity of halal foods to
Foreign Countries.
0.04 3 0.12 4 0.16
14.
Younger generation is becoming look and
beauty conscious.
0.04 4 0.16 4 0.16
15.
More awareness about hair protection
and hair cleanliness.
0.04 4 0.16 3 0.12
16. New soups can be introduced in winters. 0.02 --- --- 4 0.08
17.
E-commerce- Online Selling can be
initiated.
0.02 4 0.08 --- ---
18.
Forward Integration can be done by
launching unilever stores
0.02 4 0.08 ----
19.
Enough space available for launching of
nutritious food items.
0.03 3 0.09 3 0.09
20.
Like Pepsi's Lays and P&G's Prigle can
Come up with Chips.
0.04 --- --- 4 0.16
21.
Pakistan is the third largest importer of
tea in the world so huge potential in tea
farming.
0.03 4 0.12 --- ---
22.
Huge oppurtunity is awaiting in
detergent as about 50% of the
population uses laundry soap for fabric
washes.
0.02 4 0.08 1 0.02





Threats

1. Legislation could impact. 0.02 1 0.02 --- ---
2. Existing core business distribution risk. 0.03 4 0.12 --- ---
4. Retention of key staff critical. 0.02 3 0.06 --- ---
6. Possible negative publicity. 0.02 4 0.08 --- ---
8.
Vulnerable to reactive attack by major
competitors.
0.01 1 0.01 --- ---
9.
Health consciousness people may find an
alternative low calorie diets and
exercise.
0.03 4 0.12 3 0.09
10. Low GDP growth rate. 0.03 3 0.09 3 0.09
11. Deteriorating security conditions. 0.03 3 0.09 3 0.09
12. Energy shortage. 0.01 1 0.01 --- ---
13.
Smuggling of tea and its own
international products.
0.02 2 0.04 --- ---
15. High taxation. 0.02 2 0.04 2 0.04
16. The local companies. 0.04 4 0.16 3 0.12
17. Price wars. 0.03 4 0.12 4 0.12
18. Competitors' aggressive marketing. 0.02 4 0.08 2 0.08
19.
Religious Semitism can be provoked
being a Non Muslim MNC.
0.02 2 0.04 2 0.04
20.
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.
0.02 3 0.06 --- ---
21.
Due to Political situation their top notch
could migrate.
0.02 2 0.04 --- ---



Total 1.0 4.55 2.38

Internal Factors

Strengths

1. Customers Loyalty. 0.06 4 0.24 4 0.24
2. High dividend pay out. 0.03 2 0.06 --- 0.06
3. International brand strength. 0.05 4 0.20 3 0.15
5. Strong financial position.
0.06 4 0.24 4 0.24

6. Highly Motivated Human Resource

0.05

4

0.20
4
0.20
7. Vast Distribution Networks. 0.06 4 0.24 4 0.24
8.
Large range of brands to match the
diversity of its consumers.
0.06 4 0.24 3 0.24
9.
Committed to business ethics, safety,
health, environment and community.
0.03 2 0.06 2 0.06
10.
Latest state of the art facilities and
technology.
0.04 4 0.16 3 0.12
11.
Possess multiple international standard
certifications like ISO 9001, ISO 14001,
OHSAS 18001.
0.04 4 0.16 3 0.12
12. Well-established brand name. 0.05 4 0.20 3 0.15
13.
Established Raabta Consumer Careline
for their consumers.
0.05 4 0.20 3 0.15
14. Spare manufacturing capacity. 0.04 3 0.12 3 0.12


Weakness

1. Strategic Alliance 0.04 3 0.12 --- ---
2. Costly Products. 0.04 3 0.12 --- ---
3. Discrimination among Employees. 0.03 2 0.06 --- ---
4.
Only 1500 Employees are on their
Payroll as per website.
0.03
2 0.06 --- ---
5.
Many protests have been conducted by
labour Unions against Unilever Pakistan.
0.02
1 0.02 --- ---
6.
Accused of involvement in exploitive
tactics against indirect employees.
0.02
1 0.02 --- ---
8.
Not able to manage factories on their
own closing and outsourcing.
0.04
3 0.12 2 0.08
9.
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.
0.04
3 0.12 --- ---
10.
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.
0.03
2 0.06 --- ---
11.
Recently, ULEVER has closed down the
Karachi tea factory in view of low
demand and sales volumes.
0.03
2 0.06 --- ---
12. Indirect Distribution Network. 0.03 2 0.06 --- ---
13. Operational Complexity. 0.04 3 0.12 1 0.04


Total 1.0 3.26 2.21
Grand Total 7.81 4.59










































BCG MATRIX








SWOT MATRIX







Proposed Strategies:
1. UNILEVER can capture untapped rural markets and markets of developing
nations by using its state of the art facilities &technology. International brand
strength is plus point which will be proved helpful while positioning.
2. UNILEVERs
Commitment to business ethics, safety, health, environment and community can be
proved helpful in order to satisfy hygiene conscious customers. UNILEVER should
focus more on quality of goods.
3. Unrelated diversification is a risky decision to be taken. Loyal customer is the
major power to cope up with after effects of this decision.
4. Customers in rural areas and in developing countries usually have low income
level. UNILEVER should reduce its costs in order to capture that uncovered markets
effectively.
5. UNILEVER can use its international brand strength and wide network of retail
outlets in order to compete with organized and unorganized players of market
.6.Strategic alliance is showing the weakness of UNILEVER in particularly
manufacturing area which the competitors do not hold. UNILEVER should its
production capacity in order to compete in market and to reduce competitors
threat.
7. If UNILEVER can obtain cheaper raw material, it can reduce cost of goods
manufactured.