Business strategy

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Contents
Introduction......................................................................................................................................3

Conclusion.......................................................................................................................................9

References......................................................................................................................................10

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Introduction

The chief aim of this report is to show the significance of the various techniques of strategic
management on the growth of the business. Strategic management plays an important role in
enhancing the development of any business. Strategic management not only provides success to
the business but also enhance the overall revenue of the organization. This report shows the
various strategies adopted by the company Unilever in the expansion of their business. This
report highlights the importance of various techniques of strategic management on the business
of the company Unilever. Strategic management plays an imperative role in assessing the
company in enhancing its business. In order to enhance their growth, Unilever is implementing
Bowman's Strategy Clock and the benefits of this model are discussed in this report.

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Strategic management is the most important aspect of the success of any organization. Unilever
can implement various techniques of strategic management in order to enhance their business in
the global market and can also enhance the growth of their business in developing countries.
Unilever is basically from the UK and it is a company which is known for its production of food
and beverages. The main headquarter of the company is located in London UK. The company is
also famous for its products like beauty products, personal care products, and cleaning products
(Kibachia, et. al., 2014).

Unilever is a multinational company which has approx. 400 brands all over the world. The
company has a turnaround of over 51 billion euros in the year 2018 (Amaro, 2019). The famous
brands for the company are surf excel, Lipton, Lux, and Magnum. These are the famous brands
of the company and the company produces many products all over the world. This company was
established by the Margarine Unie and Lever brother in the year 1929. It is a famous multination
company in the UK which have approx. 1, 55000 employees working in the company (Forbes,
2018). The net income of the company Unilever is 9.8 billion euros and the main headquarter of
the company is situated at Unilever House, London UK (Bloomberg, 2012).

With the rise of competition in the market, it is important for the company like Unilever to
implement various strategic management in order to expand their business more in the
developing countries. Strategic management is the procedure through which the company like
Unilever can monitors all the strategies of their company in order to meet the goals and
objectives of the company. With the help of strategic management, an organization like Unilever
can monitors all their planning, performance, and the activities of the organization in order to
accomplish its goals and objectives. Strategic management also includes the adoption of new
technology in order to provide innovations in the company so the organization will be able to
produce more innovative products to their employees in order to build more customer base
(David and David, 2013).

Unilever can also adopt the model of Bowman's Strategy clock in order to the future growth of
the organization (Forbes, 2019). This model will not only assess the company in its growth but
also support the company in its future growth and future success. This model is explained below:

Bowman's Strategic Clock is a model which can be used by the company in order to align the
position of their product in the market. With the help of this mode, the company will be able to

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align the correct position of their product in the market so that the product will generate more
customers in the market and can generate more profits in the company (Tarofder, et. al., 2017).
In order to generate more profits and to build more customers in the company, it is important for
the company to align their product in the right position, this will assess the company in
generating more customers in the business. The company can decide the position of its product
by examining the correct price of the product and the value of the product in the market. There is
various position in the Bowman's strategy clock and from those positions, the company can
choose their position in order to align that position to their product. The company will choose
that position which will assess the company in order to gain a competitive advantage in the
market. These all the positions are described via the clock through which the company can
analyze their strategy in the organization (Hill, et. al., 2104).

These are the following positions of the clock model and the benefits of these positions are
mention below:

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Position 1

Low price and low value- This is the position of the product in which the company can decrease
the price of those products which don't have much value in the market. For example, if there is a
product which is not able to attract many customers and have low sales, Then in order to increase
the sales of that product or to attract the customers. The company can decrease the price of that
product so that it will attract more customers and it will possess high sales in the company. This
is a good strategy to build customers in the company by decreasing the price of certain products.

Position 2

Low price- There are many products which the company manufactures at a large quantity. In
order to generate more customers and to enhance the sales of such products, the company can set
the low price of the product so that it will attract more customers and generate more profits in the
organization. If the company sells the products at a low price but in the large quantity, it will
still make profits for the company. This strategy is beneficial in the low markets which mainly
focus on the minimization of cost (Panwar, et. al., 2013).

Position 3

Hybrid-This is the position in which the company sells good value products at comparatively
low price in the market. This is the most appropriate strategy to build more customers in a short
period. Customers will always prefer good value products at a low price. This strategy not only
builds many customers in the market but also assess the company in enhancing its growth in the
international market. With the assistance of this strategy. Unilever can expand their business
more especially in the developing countries where the people prefer valued products at a low
price (Brown, et. al., 2014).

Position 4

Differentiation- This is the strategy through which Unilever can offer the best possible price to
their customer which possess greater value in the market. This strategy allows the company to
provide their best products to its customers at an average price. This strategy is quite important
in developing countries and also in the low market where the demands of the products are not

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high. This strategy not only increases the demands of the products in the market but also create a
strong customer base in the company.

Position 5

Focused Differentiation- This is the strategy adopted by the bug brands in the market. With the
help of this strategy, big brands of the company Unilever can demand a high price for their
luxury products. These are the luxurious products which possess huge value in the market. The
company can set a high price for such products so that the company will be able to generate high
profits on such products. This product can be sold by the company by applying various
marketing strategies like promoting the products through celebrity and other advertisements of
the products, promoting the products on the platform of social media. These marketing strategies
assess the company in spreading the awareness about the products and the service of the product
in the minds of the people so that the product will attract more consumers and generate more
profits in the company (Shakhshir, 2014).

Position 6

Risk of High margins-

It is the strategy which the company uses in order to generate more profits in the company, but
this strategy is a bit risky as there is a risk of losing the customers in the future. It is a strategy in
which the company demands more price from their products which possess low value in the
market. This strategy sometimes gives benefits to the company but sometimes there is a risk of
losing the customers as the customer opted to purchase the products of another company which
has high value and low price in the market (Eyvrigh, 2016).

Position 7

Monopoly pricing- This is the strategy which can be adopted by the company in the scenario of
no competition in the market. In this strategy, the company can demand a high price from their
products which possess low value in the market. But because of no competition in the market,
there is not a risk of losing the customers. As the customers do not have any other option to
choose from, they opted to buy those products. This strategy can be beneficial if the company

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launches unique products on the market. The only option left with the customers is to buy the
product or leave the product. This strategy generates more profits for the company.

Position 8

Loss in market share- This is the position in which the company is not able to attract more
customers due to which there is a decrease in the market share of the company. It is that position
of the company in which the company able to decrease the price of the product and as a result,
the customer prefers other products which has less cost.

These are the 8 positions in the Bowman's strategic clock, from all the positions, three are the
positions which are considered as non-competitive in the market. These positions are position 6,
7 and 8. It is those positions in which the price of the products are much higher than the
perceived value of the customers. In such positions, companies need to lower down the price of
their products so that the organization will be able to build more customers in the business (Hill,
2017).

Unilever can implement such a strategic position in order to strengthen the position of the
company in the market. The company can analyze Bowman's strategic clock model carefully in
order to strengthen the position of its products in the market. This will assess the company in
building a stronger base in the market and the organization will be able to accomplish all their
goals and objectives. The company can also implement strategic management in their business in
order to enhance its future growth and the company's revenue.

As per the author Hahn (2013) strategic management plays a big role in the development of their
business. There are many benefits of implementing the process of strategic management but
there are many disadvantages to this process as well. The benefits and disadvantages of the
strategic management process are mentions below:

Advantages are as follows:

Focus on the goals of the organization- The major benefit of implementing strategic
management in the company is that it mainly focuses on accomplishing the goals of the
company. It provides discipline in the work so that the employees will be able to do their work

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sincerely. This will allow the company to fulfill its goals and objectives. This strategy also
assesses the company in making plans for the future growth of the organization.

Measure the progress- The other benefit of this strategy is that it allow the managers of the
company to measure the progress of the organization. The pioneers of the organization Unilever
can be able to measure the progress of their business so that the company will be able to identify
the many issues if they are facing any and also determine the places of improvements. This will
allow the company to make improvements in their process in order to enhance the future growth
of the organization. This strategy will also assess the company in achieving its goals and
objectives (Baumgartner and Rauter, 2017).

Provide different frameworks for decision-making-This strategy will provide an effective

framework to their employees which will assess the employees in doing their daily work in the
organization. This will also assess the employees of the company in their decision-making so
that the organization will move in the same direction. This strategy will provide the same vision
to all the employees of the company so that the employee will mainly focus on accomplishing
the vision of the company. This will allow the employees to make the same decision in order to
fulfill the vision of the company. This will provide more opportunities in the company and the
employees will get more encouraging towards their work (Dibrell, et. al., 2014).

There are many disadvantages of implementing strategic management in the company which is
as follows:

Cost is high- The major disadvantage of this process is the cost of implementing such a process
in the company. This process is quite expensive and the company has to spend more money on
hiring such consultants which can make strategies for the development of the business. This
process needs to be consistent so that the organization will be able to adopt the changes which
take place in the market. Due to which the organization has to spend more money which is not
possible in the organizations which have a small business (Baidya, et. al., 2018).

Impedes Flexibility- The other disadvantage of implementing this process is the number of
flexibilities this process possess in the organization. As this strategy is mainly focused on the
future growth of the company, there are high possibilities that the company will not able to adopt
many opportunities due to this process. With the implementation of this process, many

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organization will not be able to develop innovations in their business and also the organization
fails to possess creative strategies.

Future benefits- The other disadvantage of this process is that it provides future growth of the
company which means the result of implementing this process is for the future growth in the
organization. This will resist the company in achieving growth in the present. If the company is
suffering from any kind of loss or crisis them the company will not be able to adopt this process
as this process will provide future growth in the organization (Taylor, et. al., 2015).

These are the various benefits and disadvantages of implementing strategic management process
in the organization. Unilever can implement this process in order to enhance their future growth
in the organization as this process is perfect for the future growth of the company in the market.
Unilever can implement this process in order to accomplish their future goals and objective and
also it will provide a vision to the company which will assess the employees of the company
Unilever to put more extra efforts in achieving the vision of the company (Greco, et. al., 2013).

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Conclusion
From the above report, it can be concluded that big companies like Unilever can implement the
process of strategic management this process will assess the company in their future growth.
Strategic management possesses an imperative role in improving the future growth of the
organizations in the market. From the above study, it can be concluded that strategic
management is necessary for big companies to develop future growth in the market and also to
achieve a competitive advantage in the market. It can also be concluded that the implementation
of Bowman's strategic Clock will support the organization in positioning their products in the
market so that the organization will generate more profits.

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