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REPORT ON STRATEGIC

MANAGEMENT

Unilever Pakistan
Ltd
Sultan Ali
EP1303066
Syed Sagheer Abbas EP1303063

Background of Unilever
Pakistan Ltd Co.
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

Mission Statement:

Adding

vitality to
life

Vitality is at the heart of every


thing we do its in our brand ,
our people and our approach to
business

Vision Statement:
Touching

lives.

hearts, changing

Unilever Pakistan Limited

Objectives
Top

Priority Fulfilment of
customers 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
Unilever

Development

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 competitors products
in order to become the market leader of
certain product.

STRATEGIES
Corporate
Leader

Cont...

Strategies

in the consumer goods market.

Managing

govt relations to influence


duty on imports of raw materials and
countering smuggling of competitors
goods

STRATEGIES
Human

Cont...

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.

STRATEGIES
FINANCE

Cont...

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

STRATEGIES
ACQUISITIONS
Lever

Cont...

& MERGERS

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. 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.

SWOT ANALYSIS OF THE


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.

SWOT ANALYSIS OF THE


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.

BCG MATIX

SPACE MATRIX

EVALUATING THE BUSINESS


STRATEGEY
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


STRATEGEY
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

With respect to SPACE 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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