Essay on Strategic Management - Unilever

4873 Words Jun 29th, 2013 20 Pages
Strategic Management Case Study
Unilever Focusing on East for Growth
Word Count: 3984

Question 1
Unilever is an Anglo Dutch company that has been established in 1929 as a result of a merger between 2 companies: Lever Brothers and Margarine Unie. UNILEVER owns consumer products in; Food and Beverages, Cleaning agents and Personal care. It is now ranked as the second world largest consumer product company.
Strategic Purpose: Unilever’s 2nd rank in FMCG has been gained by serving the company’s mission “to meet everyday’s needs for nutrition, hygiene, and personal care with brands that help people look good, feel good, and get more out of life”.
Value Chain Analysis
Porter’s value chain analysis gives insight on how Unilever creates
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It has engaged in trade agreements with the biggest retailers (Wal-Mart and Carrefour).
Marketing and Sales: Unilever strategy is to invest in innovation in new products and new product formulas based on what research and targeted communication proves to be favorable to each market. It acquires mega brands that contribute to more than 70% of its revenues. Some brands are been marketed though international campaigns (e.g. Persil), while others are marketing regionally. Unilever also adopts marketing through social responsibility projects.
Customer Service: Unilever has assigned a global customer service director to develop Unilever’s marketing framework. He implemented the institute of customer service’s benchmarking tool, ServiceMark. This tool mandates customer service employees to take 5 e-learning courses. Upon successful completion of the courses, a certificate is granted. This step increases their professionalism, motivation, and understanding (Paternoster, 2010).
Support Activities:
Firm Infrastructure: In 2002, Unilever’s Global infrastructure organization (GIO) signed a multimillion contract with Equant (a leader in IP services for multinational businesses) to maintain its CISCO data networking equipment. This network provided GIO flawless and fast use of new technologies, support for its SAP system, internet based solutions, packaging design,

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