Strategic Business Analysis

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STRATEGIC BUSINESS ANALYSIS

Strategic Business Analysis: Unilever's Path to Growth Strategy

Table of Contents

Strategic Business Analysis: Unilever's Path to Growth Strategy3

Unilever background3

Task 1: SWOT Analysis3

SWOT Analysis3

1- Strengths:3

2- Weaknesses:4

3- Opportunities:4

4- Threats:5

Pros6

Cons6

Problems Appears10

Task 2: Unilever Strategy 'Path to Grow'13

Elements of Path to Growth strategy13

Brand Restructuring15

Geographic Expansion18

Unilever Information Program19

Supply Chain Restructuring20

Task 3: 'Path to Grow' performance23

Results of Path to Growth Strategy23

Unilever's Future Outlook24

Task 4: Strategic Alternatives27

Recent changes in Unilever31

Six Best Practices to Follow34

1.Focus Segmentation Criteria On Joint Value35

2.Align Suppliers With Supply Chain Strategy36

3.Manage The Innovation Funnel Across Functions36

4.Translate Demand-Driven Manufacturing Into Supply Strategy37

1.Manage Globally Through a Matrix37

2.Accept That Suppliers And Plants Are At Different Stages And Execute Accordingly37

References39

Bibliography40

Strategic Business Analysis: Unilever's Path to Growth Strategy

Unilever background

Unilever is demand-driven leader in building design and supply networks internally and externally. The company is far along its supplier relationship management (SRM) journey? with its goal of an integrated supply chain? from the supplier's plant to the customer. This strategic sourcing approach includes six facets:

Relationship restructuring and strategic alliances with key suppliers

Global sourcing? with a focus on profitably balancing supply and demand across geographies

Best-price evaluation? modeling “should costs?” and? where needed? price renegotiation

Volume concentration through supplier consolidation and redistribution? as well as volume pooling

Improving product specification through value analysis and engineering? pursuing alternates and substitutes? and optimizing lifecycle costs

Joint process improvement with suppliers? early supplier involvement? and productivity-gains and integrating-logistics sharing

Task 1: SWOT Analysis

SWOT Analysis

1- Strengths:

Leadership positions in the Detergent powder segment: With 75 % of the market? Unilever brands (Omo? Minerva and Campeiro are ranked first ? second and fourth respective in terms of Market Share)

Growth rate: The Detergent Market segment is registering a 17% annual growth

Brand Recognition: Unilever brands are well known and perceived by Brazilians. Most of Brazilian have either seen or tried one of Unilever brands in this segment. We have good rates of Top of Mind? Brand knowledge and Market penetration (Thompson and Strickland, 2005)

2- Weaknesses:

Distribution: Unilever is facing a big Distribution issue in the NE; Unilever detergent skus? are not present on shelves in approximately 75?000 small outlets. Knowing that Northeasterns are not fund on going to big accounts such as Wal mart? Carrefour or Tesco? but prefer going to small stores? the lack of Distribution is an extremely serious issue (Thompson and Strickland, 2005)

Price : Unilever premium brand? Omo? is perceived as a very expensive product? while the alternatives presented by Unilever are perceived as having a lower quality

Consumer Expectations : Excluding Omo? other Unilever skus have problems in perception? and are deposes by P&G brands (Ace and Bold)

3- Opportunities:

The Northeastern market is not saturated yet: There is a big possibility of Growth. Purchasing power of the low income has increased by 27%. The North East is a 48 M market) Big Potential. 81?250 Tons of soap used versus 42?000 tons of Detergents. Brazilian government encouraging investments in NE ? by providing tax incentives.

Frequency of Wash: Northeastern women wash frequently (Every day). Cleanliness is part of their culture

28% of Northeastern have washing machines

4- Threats:

Economic situation: Brazil's economy is facing big problems ...
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