This paper has been drawn as a way of suggesting possibly ways in improving business operations. Through the use of strategic planning management companies have emerged as victors through their correctly spelled strategies for analysis and business development seek. This paper has used Unilever foods (UK) as a case study. It is therefore recommended that various business operation may use suggested measures as a way of boosting their business through the use of various strategic options.

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Author: Victor Kubvoruno, (Bsc Local Governance Studies)
Case study: Unilever Foods UK
Year: 2020
This paper has been drawn as a way of suggesting possibly ways in improving
strategic business operation. Unilever foods has been used as a case study. Various
business operation can use suggested measures as a way of boosting their business.

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TABLE OF CONTENTS
Introduction to company and challenges 1
Environmental Analysis: 3
Micro trend Analysis 8
Opportunities and Threats 10
Internal Environmental Capabilities Analysis 12
McKinsey 7’s Framework 12
VRIO criteria 13
Value Chain Analysis 14
Strategic Fit with the Operating Environment 15
Strategic Options 16
Tows Matrix 17
FAS 18
Proposed Strategy and Implement Challenges 21
Conclusions 24
Reference 25

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FIG AND TABLES
Unilever Group Environmental Analysis: Fig 1
Summarized opportunities and threats: Table1
The Industry Life Cycle: Fig 2
VRIO Fig 3
TOWS Matrix Fig 4

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In regards to this report for “strategic planning” the researcher has selected Unilever foods in the
UK, for the purpose of this particular strategic planning various research and strategic tools have
been used.
INTRODUCTION TO COMPANY AND CHALLENGES.
The company has a wide range of disciplines which has seen the company dominating the most
parts of the world. Unilever foods focuses on two divisions which are beverages and foods, and
home and personal care. The company is a multinational company with different stakeholders,
employees and consumers on every continent, the company is another branch for Unilever which
was established in 1930 (www.unileverme.com). To date Unilever foods has dominated in more
than 100 countries and its current cash-flow is over Rs 2.3 (Euro 370 million) (Helindrous, 2018)
Challenges
i) Competition- the company has faced a tense competition from different companies
like Cairns Foods and other sectors. Due to globalization market spheres has been
largely dominated by different sectors (Browley, 2017).
ii) Closure of business due to the global epidemic- for the past months companies have
closed down due to global epidemics like Corona Virus (COVID-19). This has been a
wide catastrophe which has stopped the operation of this company and other business
entity.
Unilever foods’ vision statement has reflected how the company grows and the way it has
maintained its success since its inception. The company’s mission statement reveals how these
products have value and how these product benefits consumers
Unilever foods’ Vision statement: “to make sustainable living commonplace”
(www.panmore.com/unilever-vision). The vision mission for Unilever foods constitutes the
following as adopted from (Ekpe et’ al, 2015)
i) Best long term-way (local and international trade)
ii) Business growth (corporation and improved market trends)
iii) Sustainable living (societal dominated suiting current market place)n

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Unilever foods’ Mission statement: “to add vitality to life” the following components are
significant in the mission statement of Unilever foods. As adopted from (Ekpe et’ al, 2015)
i) Adding vitality to life
ii) Meeting everyday needs
iii) Helping people feel good.

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ENVIRONMENT ANALYSIS
2.1 Macro trends
Kotter and Schlesinger (1991) and Johnson and Scholes (1993) reveal that environmental macro
trends are important in identifying factors that affect the number of important variables that mostly
affect the organization’s demand and supply. Environmental analysis has made organizations like
Unilever understand better how to supply their commodities and strategies to improve trade have
been crafted (Tsiakkiros, 2002). Pestle Analysis for Unilever foods has been used to identify key
drivers of change for this firm. The following will focus on changes and effects of pestle analysis
on the business (Johnson et, al, ibid)
Political- This determines the role of the state and any other political entity (Gwens 2014). The
United Kingdom political stability has marginable promoted smooth flow of the business.
Government directives pertaining to businesses have been favorable for example the UK
government has adopted new international trade arrangements which have expended local markets.
(International regulatory framework, 2018, p 20). Through government intervention on market
spheres Unilever has managed to have a competitive advantage over other business sectors which
performs same duties as theirs around the globe.
Brexit: The proposal by Britain to make an exit as a European Union member can also be regarded
as a factor that might negatively impact Unilever foods. This might affect trade and profits for the
company as customers and stakeholders from the non-members in Europe might risk not receiving
expected services from the company as a result of political stance.
The wide spread of diseases as a social factor has necessitated to political ideologies which has
affected the operation of Unilever business. The spread of Wuhan 400 virus also known as Corona
Virus (COVID-19) has been an environmental crisis which has caused the government to close all
the operation of the business through directives. These directives has affected Unilever foods as

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production and consumption rate has immensely been reduced through these directives (Yen,
2016).
Economic Factors- According to Forbes magazine report in Johnson (2014) predicts the economic
growth between the years 2012 to 2020 as they noted that China and USA’s business sectors have
increased by 7% in China and 2% in USA and 1% in Europe. This has been an economic challenge
for Unilever in Europe as wide spread competition has grown rapidly. However this 1% boost has
made Unilever to boost its sector through, economic policies that has favored the operation of the
business. UK has been recorded as one of the best place for world economy after China and USA
(Market Exchange world, 2019). This has brought positive changes within Unilever sector as a
wide expanding of products and brands for the company has been created with at least “60
acquisitions in the global market” (Thorngril, 2016). Controlled inflation crisis and rates has been
a favorable factor which has put Unilever foods has emerged as one of best firm in the UK since
2000 to date although companies like Inscore and BT foods have been their competitors due to
this favorable economic policy (Brettonwood financial performance study, 2017). Fair taxation
system (Anderson, 2018) has been a factor which has been used as a competitive advantage for
Unilever foods, Thorngril, (ibid) noted that Unilever food management believed that the
company’s productiveness has been as a result of pre-tax cost saving which has promoted
efficiency in business administrative function and improved economies of scale.
Social factors- As a way of luring customers and the society at large. Unilever foods has adopted
a policy of helping the society which has been marginalized by HIV and Aids and this has been a
strategy to win the hearts of the society. Unilever foods has imposed social programs to empower
the society on a global scale. For example according to Statcha (2018) “providing a consistent high
standard of occupation health care is part and parcel of Unilever foods industry”. Local Economic
development programs at local level has also been used to create a conducive market sphere for
the organization
Technology- huge developments in ICT and global social sphere development technology has
been an opportunity that has been widely used in the organization. The use of internet supply has
improved the organization’s business irrespective of distance (Statcha, ibid). The environment is
being widen by new technologies which have drastically affected the operating environment. For

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easy operation Unilever foods have made more productions with more technological system and
less employees, this factor has positioned them in the global marketplace
Legal- Supportive legal framework has been an opportunity that has been considered by Unilever
foods, this has been supported by the existing pieces of legislation and statutory instruments that
have been put in place by the government. Legal policies have improved trade in terms of exporting
goods and services therefore this has been an advantage for Unilever foods which has dominated
in the foods produce. EU has put a number of policies and frameworks which have been adopted
for the purpose of business operation at all levels. These frameworks includes;
Trade guideline policy - this policy has been crafted as a way of guiding all trade that occurs in
the UK and outside. The policy was necessitated by unethical conducts which was done by various
companies in the early 2000. Trade guidelines policies allows companies to have expected
facilities which includes certification of incorporations and other necessary documentation.
Sale and supply goods act (1994) - Various trade and supply policies have been drafted to guide
most prominent industries in terms of trades and supply. Unilever foods as also been targeted by
this policy. This act has protected consumers and buyers of products and commodities. The major
provision of this act is in regulating how trade at commercial level must be undertaken.
Ecology- Environmental factors defined as “green” factors by Johnson, et’ al (2014) are factors
which have put Unilever foods on a competitive measure. These have put Unilever foods on a
global scale as there have been one of the companies that have played a marginable role in
sustainable development, this program consist of recycling programs, waste management system
and in return much favor has come from environment agencies. The below Fig 1 shows Unilever
foods’ five key environmental performance indicators, which has improved since 2016-2019. The
analysis shows the reduction in load tone of production since 2016

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Fig 1 Source: Unilever group environmental analysis: 2019
COD is the chemical oxygen demand which the company has been using at a rate of 100%, this
has caused panic in the environment as the use of such toxic chemicals affects the environment.
Co from energy is the amount of carbon dioxide omitted when fossils fuels are burned. These have
met the standards and regulation of the environment agencies, on the above related matters boiler
utilizers have also attracted a fee due to the fact that it has affected the production rate of the
company. On the other hand hazard waste have met the expected target hence creating a smooth
flow of in the operation of the business. To make this challenge work for their food Unilever foods
has embarked on waste management programs and recycling programs with local authorities and
it has placed a hand in the improvement of the environment in other countries like South Africa.
0
20
40
60
80
100
COD
Hazard waste
Non hazardous wasteco from energy
Boiler utilisers
Ecological Factors
Actual Target

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Table 1
Unilever
foods
Threats Opportunities Strategy
Political Directives
on Corona Virus
- Make use of technological advancement through
online selling and help the nation through donations
which can inforce recognition. Above all the
company can partner with technological companies
which can help the firm bring positive changes
Favorable
political stability
Unilever must increase cordination with the state as
a way to create a wide national market through
stabilized political influence. This can be done
through increasing their operation at a national and
international globe
Global use of
technology
Competition has been stiff in global market due to
the wide growth of online sales and market. The
internet has been widely recognized as a global
village for marketing purposes. To avert this
Unilever foods must adopted measures to strengthen
their technological system based on marketing
structure and planning.
Use of
modernized
machinery
This has been one of their strength that has created
a competitive advantage over other companies. The
company can adopt development policies that
favors their technological system. These policies
include service and purchasing of new modernized
facilities.
Source: Researcher’s Summarized opportunities and threats, (2020)

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2.2 Micro trend analysis
Kim and Mauborgne (2017) notes that “competing head to head can be cutthroat”, especially where
competition stiff (Tonelli and Cristoni, 2018). To analyze market strategies and identify the
attractiveness of an industry Potter’s five forces framework have been used to analyze the
industry’s competitive force (Johnson et al, ibid). According to Potter (1980) attractiveness of an
company is determined by forces of industry which he mentions as the “five forces analysis” these
includes threat of entry, threat of substitute, power of buyers and suppliers and also extent of
rivalry.
New entrants: For the past years Unilever foods’ market place have been known as South Africa
and other African countries like Mozambique. A new market sphere has been created in Africa by
companies like Nestle and Inscore whose profits in less than decades has been recorded at a sum
of $3.5million and above (African business update, 2018). Nestle has dominated the food industry
in Africa with a number of countries representing its products on market share. On the other hand
Inscore as a new competitor has drawn attention on market shares.
Substitutes: Rothaermerl (2016) notes that “a high threat of substitutes reduces profit potential by
limiting the price the industry’s competitors can charge for their products and services”, Johnson
(ibid) further purports that substitute is a threat to the organization. for Unilever foods, Star bucks
has emerged as one of the companies in the sale of ice cream which has substitutes a number of
food produce within market spheres of Unilever foods.
Buyer power: The power to bargain for a customer has been one of the challenges. Brightonhill
(2016) notes that “buyers are customers of an industry” Unilever foods’ buyers are grocery and
supermarkets shops. These buyers have put pressure on the producer margins, by demanding a
lower price for higher produced products (Rothaermerl, ibid). According to Unilever foods, buyers
have managed to bargain with the company on “wholesale prices” which has affected profits and
unfortunately buyers have been protected through accounting laws which regularize return inwards
and outwards. This therefore reduces a firm’s revenue and this can be a challenge within the
organization.
Supplierpower: The key raw material for most of Unilever foods products are well known farmers
who are producers of fruits and veggies and also wheat just to mention but a few. These suppliers

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have raised high cost of production by setting high prices on their inputs and at times reducing the
quality of their input. However Unilever foods has however tried to create an opportunity of
creating their own raw material by owning various produces.
Competitive rivalry: adopted from (finance.aol.com)
Ben and Jerry’s Vermont which is known for producing ice cream has been top competitors for
Unilever foods in this category, based on the analysis made by time magazine, Vermont has
produced the best ice-cream with around twenty nine flavors in pint cartons and 45 flavors in
cartons. On the other hand Nestle has significantly dominated the foods industry and has been a
competitor for Unilever foods with millions of dollars being attained on global market. Bestfoods
is another stiff competitor for Unilever foods, even though Bestfoods have dominated in the USA
it has dominated in over 60 countries. According to Bill business magazine Bestfoods has
successfully increased payments for 14 consecutive years and its revenue has grown up to 7.8%
annual rate per year to date. Since Best-foods has operated its sales has improved until 2006 and
after strategies were combated to strengthen their sale to date. This rivalry has forced Unilever to
continuously search for strategies to emerge as winners
The company is under maturity stage in the industry life cycle. This has been necessitated by the
numbers of years the company has been operating. According to Johnson (ibid) maturity stage “is
when a company have stronger buyers and stakeholders, high and standard products. These reveals
that Unilever has faced a number of rivalry but have remained strong in terms of business
operations, in 2001 Unilever was close to decline due to different barriers but through various
adopted strategies the company has emerged as victors. The following fig 1.2 further summarizes
the industry life cycle.

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Fig 2
Source: Johnson, et’ al. Industy life cycle (2014).
Identification of Opportunities and Threats and Critical Success Factors
Croxley (2016) notes that opportunities are external influences and factors that help determine
what can affect the business both positive and negative, Johnson (ibid) defined critical success
factors “are factors which either are particularly valued by customers or provide a significant
advantage in terms of cost”. Unilever foods has different opportunities that has been used for the
benefit of the organizations and threats that have disadvantaged their business.

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Opportunities for Unilever foods.
The ability of Unilever foods to change customer taste has been one the major opportunities that
has been used by the company Unilever have managed to apply differentiation in their products
which continued to give them credit for their services. Technological changes has been an
advantage for Unilever foods. The company has embraced technology with large sums of money
invested for the development of web centers that improves market spheres for Unilever foods.
Through technology change various products have changed in terms of test and attractiveness this
supports the idea of ice cream sale as provided by Unilever foods.
Change in population demography as another opportunity has enabled the company to cover a
wide range of market with a wide range extension of global market being attended to. These
opportunities has created room for the marketing department to make wide sales in every continent.
Threats for Unilever foods
Too many competitors and rivalries like Nestle, Crainz to mention a few has threatened the
company. With a huge number of emerging contentions, Unilever’s market has been shaken.
According to Akim (2017) competition creates “instability for businesses”, this instability has led
to some companies closing down, however for Unilever foods different strategies has been taken
as a way of dealing with these external forces. Government directives on COVID 19 is another
important threat that needs to be understood. These directives has necessitated to the recent lock
downs which are leading consumers being less exploratory enough in buying their favorite
commodities from Unilever foods.
Critical success factors
Unilever foods has represented its operation on 3 critical success factors which are delivery
reliability, testing services, and design advice. These factors has strengthened Unilever foods
above its competitors despite the fact that Unilever foods has a number of competitors which are
doing well. However despite the competition the organization has created a value curve that
diverge from its competitors. This has been necessitated by the market spheres that has been
created by the company’s strategic implications. One of the strength of Unilever foods is that there
have created a value innovation stance which is the creation of a new market space this has been
necessitated by their understanding of business operations

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2.3.1 Internal environment capability analysis
The Resource Based view (RBV) strategy decides what resources are available in the
organization. The basis for competitive advantage for companies like Unilever foods is in its
application of valuable resources in the company (Thomas, 2007). The company’s tangible and
intangible resources have placed them on far top in terms of business operations. According to
Dawn (2007) tangible resource includes building, human resource, capital, land, labor, plant,
equipment and other concreate resources. According to Ruoise’s analysis for Unilever foods in
2017. His findings estimated that tangible resources for Unilever foods amounts from USD$3.7
Billion however Ruoise (2017) analyzed the cost of Unilever foods’ intangibles and there mounted
to 4.5 billion. Intangibles do not have any physical attributes, yet there determine the capacity of
the organization (Johnson, ibid). These includes the company’s reputation, culture, and knowledge
and brand equity. Unilever foods’ intangible and tangible resources has provided them with a
greater competitive advantage margin. For example Unilever foods’ production cite has attracted
more investors and shareholders which have invested millions through their intangibles and
tangibles resources.
2.3.2 McKinsey’s 7S Framework to assess the fit between the company’s
strategy, structure, systems, staff, style, skills and superordinate goals.
McKinsey’s 7 framework is a model that describe factors that allows companies to be organized
in a holistic approach. According to Throbic, (2018) these factors has led to the success of the
business. McKinsey’s 7S framework consist of Strategy, Style, Superordinate goals, structure,
system, skills, and staff. The management of Unilever foods have ensured a well trained staff
through a well administered Human resource management. Training management have improved
human resource skills and this has motivated the staff in this organization. Unilever as a company
has motivated a strong strategy which has been followed by its decentralized branch. In 2000 the
“path to growth strategy” positioned Unilever foods at a better stage, with 15% profits
accumulating from that period. After the path to growth strategy Unilever foods adopted another
strategy called the “Brand imprint” which helped marketing staff to understand how the business
can face risk as well as spotting environment factors that can lead to opportunities in the

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organization. Unilever foods also used horizontal and vertical integration process as one of their
strategy this was to improve the line of communication and to improve the structure and system
of the organization.
2.3.4 VRIO Criteria
Value- Unilever foods’ VRIO analysis under the Value analysis has revealed that the financial
system of the company are important as these have helped in investigating internal and external
factors of the company. These have also combated external threats. The VRIO of Unilever foods
shows the importance of employees in the organization. Employee’s loyalty is high and retention
levels are considered high through the organization. This has created customer satisfaction,
through service offering.
Rarity- the organization’s financial resources is found rare as strong financial possessions are
controlled by few individuals in the company. Unilever foods products are found to be not rare as
there are easily provided by other competitors in the market spheres. The employees are a rare
resource as they are highly trained more than other competitors. High attractive compensation
makes these employees decide to stay and enjoy the benefits of the environment there are operating
in. Patents of Unilever foods are also rare as there are not owned by their competitors therefore
giving a competitive worth over their rivalries. The distribution network of Unilever foods are rare.
This is supported by the fact only Unilever foods have their own network system which works the
way they want, and this place them on a competitive position.
Imitability- Unilever foods’ financial system are costly to imitate as they have operated for many
years and devised strategies to increase their profits. However their products are not unique to
other organization as there are easily imitated or acquired by the competitors and this has resulted
in the creation of stiff competition. Employee performance for Unilever foods are not costly to
imitate as other industries can do the same for productivity.
Organizational support- Unilever foods’ VRIO analysis also reveal that their financial system is
well organized as compared to other sectors. Their finance has allowed to invest on the future and
various financial strategies includes audits and financial budgets to maintain the system. Organized
employees are also mentioned under this analysis that their well-organized system has been

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credited to training and benefits that the company gives to employees thereby this support has
placed Unilever foods under advantage. The following fig is a summary of VRIO giving an
analysis based on the outputs of represented elements.
Fig 3
Source: proposed VRIO for Unilever foods: (2020)
2.3.5 Value chain analysis for Unilever foods (VCA)
This approach is used by companies to identify its capabilities and its competitiveness. Unilever
foods has managed to identify internal and external linkages through their value chain lens. Flows
of materials, information and finances has been improved through the use of the value chain
analysis. This has enhanced in filling important gaps that are likely to affect the firm’s productivity.
Customer satisfaction has been at its peak due to improved information technology system. VCA
of Unilever foods has also been used for decision making process at both management level and
director’s level. This has helped in creating competitive advantage over the firm.
•Organizational
support
•improved financial
stystem
•centralized structure
which minimised
•Inimitability
•finances are hard
to imitate
•strategic plan are
also hard to
imitate
•Rarity
•Market networks and
employee
performance is rare to
find in other
competitors
•Value
•sound financial
system has
contributed to
contnuation flow
of the business
Outputs
customer and
employee
setisfactionand
retention
Outputs
improved
distribution
chanel
Outputs
a strong
competitive
organized
business.
Outputs
competitive
advantage
through product
reliability

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2.4 Strategic fit with the operating environment:
Internal environment of Unilever foods has revealed how the firm has achieved a lot in business
operations.
Unilever foods’ strength- Strong Marketing strategies like the blue ocean strategy which has been
used in a number of countries by Unilever foods. Recognition and branding has been again another
strength for Unilever foods. The firm has been known worldwide for producing foods in more than
100 countries and its brans have connected them into easy access of customers. Production quality
has maximized the profits for Unilever foods a study by Thompson (2017) on customer satisfaction
using Unilever foods South Africa as case study reveals that 92% of Unilever were very much
proud of the products produced by the firm. Other strength for this organization includes,
• Company size
• Insight of the company’s products
• Strong accounting system
Unilever’s weakness- Unilever foods has limited number of brand management team to increase
the company’s market structure. Most of EU recruitments processes for senior management are
highly centralized. Incapability to strengthen company’s acquisition has reduced its efficiency.
The Unilever foods’ environment analysis has been an integrated tool that has been used to plan
strategies alternative at all levels. According to Lamech, (2006) “corporate success is linked to
integrated environmental analysis which are as a result of an integrated success factors which
comprise of internal and external factors”. The operation of Unilever foods has marginable been
accredited to its strategic analysis where the environment has been considered to be an advantage
for the company. According to Lamech (ibid) an integration of internal and external in the strategic
fit for the firm has led to environmental scanning which keep a close eye on the internal and
external factors analyzing the information to understand how can a business benefit from its
located environment.

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STRATEGIC OPTIONS:
Unilever foods can adopt various strategies that can be adopted by the organization. The following
fig has summarized different options that can be used by Unilever foods using TOWS Matrix.
According to Britney (2014), TWOS matrix can be used to identify options that can address
different combination internal and external factors. The Twos can identify what companies can do
to outstand shakes within and outside the organization. The Tows Matrix uses the SWOT analysis
both internal and external factors are being analyzed on how the strategic option can be functional
for companies like Unilever Foods. For Unilever foods TOWS Matrix has been used to identify
various combinations of various factors these have been as a way of promoting competitive
advantage over other industries.

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Fig 4
TOWS MATRIX FOR
UNILEVER FOODS
STRENGTH WEAKNESSES
Company size Tall organization structure
Strong accounting system Lack of global brand managers
Insight of company’s products Centralization
Production quality High quality production
OPPORTUNITIES SO STRATEGIES WO STRATEGIES
-Technological
advancement
-Changing of customer
taste
-Demography
-Extension of global
market
 Increase market structure and
creating new products to
marginalized areas
 Partnering with strong and able
institution to provide with
technological skills to maintain
quality
 Accommodate rural demand
 Strengthen market
segment and market
spheres
 Increase the company’s
name through joint
venture and franchising
THREATS ST STRATEGIES WT STRATEGIES
 Competition
Rivalry
 Product
smuggling
 State directives
on Covid-19
 Control cost
 Use available technology and
resources to sell their products.
 Reduce unnecessary cost,
and competition through
improved technological
system
TOWS Matrix: researcher’sanalysis adopted from Johnson (ibid).
EXTERNAL
FACTORS
INTERNAL
FACTORS

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3.2 Evaluate the feasibility, acceptability and suitability of the strategic
options to inform your selection of one preferred option for the
company. (FAS)
According to Roethermel, (ibid) various management strategies succeed better as compared to
others, this depends on various strategic option and success factors which enables the organization
to evaluate the sustainability of strategic options. The major 3 key elements that are used to
evaluate the company’s strategic position are feasibility, acceptability, and sustainability.
On its suitability the company’s strategic system has been strengthen by the way the company has
addressed its objectives by analyzing their opportunities and threats which has identified in
understanding their strategic position. According to Johnson (ibid) suitability is about assessing a
suitable proposed strategy which can be used to address key opportunities and threats. For Unilever
foods the basic suitability exploration includes assessing the company’s opportunities and ways
there can avoid company’s threats and also on their strategic suitability strength has been identified
which there have used to avoid weakness. For Unilever foods various strategies have been used to
avoid bias in regards to their strategic options. Sub strategies like ranking have been put in place
as a way of impacting key factors on given strategic proposals. For example whenever Unilever
foods wants to penetrate in a new market suitable strategies are weighed based on factors on the
ground. For penetration in the market, environmental competences are therefore analyzed and seen
if there are suitable for the company. Suitability has also been used by the company whenever
there is need for market development. For Unilever foods new opportunities are determined by
geographical analysis and its suitable segments or new uses. When the company decides to launch
a new product in a new market operations various assumptions are given based on previous data
analysis for that particular place. When a higher degree of uncertainty exist within companies,
suitable strategic options are put in place in terms of various scenarios. Screening through
scenarios. For Unilever foods, their chosen strategy needs to be suitable based on setting a range
of different prices for their commodities. Screening through scenarios has helped the company
have an understanding on setting price demarcations, and choosing where a certain products “fit”
best within the context of the targeted environment There are various tools that the company can

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use to access its suitability of strategic positions like the TOWS matrix, decision tree and ranking
the strategic options, all these can be done by the firm to identify key opportunities and threats
Analyzing the company’s acceptability on their strategic options. This is based on the “expected
performance outcomes of the strategy” the strategic analysis of Unilever foods has mainly focused
on three components which are stakeholders reaction, risk and returns this puts the organization
on a far reaching estimate as far as resources are concerned. Stakeholders are a major concern as
what affects them in the organization determines the productivity of Unilever foods as their
reaction to company’ decisions affect them. Business and shareholder relationship has been
improved based on business codes which has been developed through shareholders relationship.
An estimated sum of 2.3 million dollars has been injected into the business by various stakeholders
for the past year and this has revealed that stakeholders’ interest is of concern in the business
operation of Unilever foods. Various businesses have a number of factors which affects them but
if those factors continue growing it affects the business. Therefore for Unilever foods, their
strategic plan addresses the company’s possible risk and return. Unilever has also focused on
analyzing whether the level of risk and return According to Roethermel, (ibid) various
management strategies succeed better as compared to others, this depends on various strategic
option and success factors which enables the organization to evaluate the sustainability of strategic
options. The major 3 key elements that are used to evaluate the company’s strategic position are
feasibility, acceptability, and sustainability.
On its suitability the company’s strategic system has been strengthen by the way the company has
addressed its objectives by analyzing their opportunities and threats which has identified in
understanding their strategic position. According to Johnson (ibid) suitability is about assessing a
suitable proposed strategy which can be used to address key opportunities and threats. For Unilever
foods the basic suitability exploration includes assessing the company’s opportunities and ways
there can avoid company’s threats and also on their strategic suitability strength has been identified
which there have used to avoid weakness. For Unilever foods various strategies have been used to
avoid bias in regards to their strategic options. Sub strategies like ranking have been put in place
as a way of impacting key factors on given strategic proposals. For example whenever Unilever
foods wants to penetrate in a new market suitable strategies are weighed based on factors on the

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ground. For penetration in the market, environmental competences are therefore analyzed and seen
if there are suitable for the company.
There are various tools that the company can use to access its suitability of strategic positions like
the TOWS matrix, decision tree and ranking the strategic options, all these can be done by the firm
to identify key opportunities and threats
Analyzing the company’s acceptability on their strategic options. This is based on the “expected
performance outcomes of the strategy” the strategic analysis of Unilever foods has mainly focused
on three components which are stakeholders reaction, risk and returns this puts the organization
on a far reaching estimate as far as resources are concerned. Stakeholders are a major concern as
what affects them in the organization determines the productivity of Unilever foods as their
reaction to company’ decisions affect them. Business and shareholder relationship has been
improved based on business codes which has been developed through shareholders relationship.
An estimated sum of 2.3 million dollars has been injected into the business by various stakeholders
for the past year and this has revealed that stakeholders’ interest is of concern in the business
operation of Unilever foods. Various businesses have a number of factors which affects them but
if those factors continue growing it affects the business. Therefore for Unilever foods, their
strategic plan addresses the company’s possible risk and return. Unilever has also focused on
analyzing whether the level of risk and return are acceptable. All these aspects have been drafted
to strengthen the company’s strategic options.
According to Gromera, (2015) “Feasibility commands an explicit consideration of whether a
strategy could work in practice” this has helped Unilever to determine whether the firm has
resources and ability to deliver strategy. Particularly this approach has suggested whether the
company proposed strategy works, and whether if there are proper financing measures which can
be taken. In short feasibility has been one of key components that has been a requirement for better
strategic position. The major required component is the financial capability which quickly
addresses the company’s expectations and demands. The for Unilever foods includes business life
cycle and budgeting appraisal systems which allows the company to identified the required
amounts on various projects and estimated value for all activities which requires attention.

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PROPOSED STRATEGY AND IMPLEMENT CHALLENGES
4.1 If you are suggesting a change in business strategy for a single business unit (SBU)
apply Porter’s generic strategies or Faulkner & Bowman’s strategy clock to explain
how the company will proceed with their preferred strategic option.
A recommendation on the change in business strategy for a single unit (SBU) has been adopted
looking at the company’s universal strategy which they have used for a period. Porter’s generic
model have been used as a way of recommending ways of building competitive advantage for the
company and creating room for competitive advantage and customer satisfaction. The
recommended model of Porter indicated that “generic strategies ensures competitiveness necessary
for business growth and resilience”. Currently Unilever foods’ competitive advantage focuses on
product development and various approaches that assimilate explorations to address market
desires. The company has also promoted growth through the use of the combination of intensive
strategies based on conditions of consumer good market.
Unilever foods’ strategic choice is mostly based on differentiation which focuses on the features
that make the company’s products stand amongst other giants. The blending of differentiation and
cost leadership is a preferred strategic option which Unilever foods opt to use for better
competitiveness. Through business functional managers different strategy which includes
differentiation, cost leadership and value innovation can be used on the company’s strategic
business unit for better competitiveness. According to James, (2018) “Management in SBU must
answer business strategy questions on how to achieve superior performance”. With a huge variety
of food products which includes, teas, bouillabaisses, spices and meats just to mention but a few,
Unilever foods must strengthen their differentiation strategy as a remedy to curb competition from
various competitors like Nestle whose major mandate is in providing food staffs. With great
rivalries in the market the company’s business unit can be strengthened by the application of
porter’s model where the responsible personals adopt strategies that fosters competitiveness.
Unilever foods’ strategy business unit can also be strengthened by its intensive strategies which
includes market penetration, Product development, Diversification, and Market development
which are briefly analyzed below as used by Unilever foods.

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Market penetration (Primary strategy)
This intensive strategies has allowed Unilever foods to adopt a penetration ability where the
company has increased its sales volume through selling their products in over 200 nations. This
has necessitated in the increase of revenues. According to porter’s generic business strategy growth
is necessitated by differentiation strategy. It is therefore recommended that can adopt the use of
variety food staffs as a way of strengthening their revenue.
Product development (secondary strategy)
This functions as a secondary stage for Unilever foods. This intensive strategy uses the
development of new foods staffs. For Unilever partnerships with resort commodities which
includes hotels, restaurants has been a factor that needs to be considered. These changes allows
business growth and meeting new customers on timely basis. Marketing mix is a required
phenomenon in a business sector like Unilever foods, therefore product development as an
intensive requirement needs to be strengthened
Diversification (Supporting strategy)
Diversification has been used as a supporting strategy for Unilever foods. Unilever foods has over
time acquired other businesses other than the food industry. For example the “Personal Care
Business of Sara Lee Corporation” this strategy is also supported by porter’s generic competitive
strategy as it supports the differentiation strategy. Diversification has mainly supported the trend
of merges and acquisitions for Unilever foods.
Challenges, risk and mitigations
Rapid industrialization growth that has been a force around the globe has affected Unilever food
with a large number of companies emerging and dominating the food and beverage industry. This
has resulted in the creation of unnecessary competition and unnecessary rivalries. So much

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financial activities has taken place since 2001 to date as a way of creating various strategies that
keeps the company on the top list. Through various risk assessment strategies the firm has managed
to take care of certain risk that has threatened the organization. According to Vcelio, (2009)
Unilever foods has received “a growth expectations, risk, profit margins in food has composed of
various sectors by change of customer’s preferences with challenging rival firms to gain market
shares”. The growth of market spheres has contributes to high demands of commodities which
has paved way for a tall organizational structure which has been hard to monitor and maintain
under the centralized administration system at Unilever. Unilever foods has managed to overweigh
their failures through their marketing strategies. According to US small business administration
“A marketing strategy identifies customer groups which a particular business can better serve
than its target competitors, and tailors product offerings, prices, distribution, promotional efforts,
and services toward those market segments”. The strategy addresses unmet customer needs and
offer satisfactory profitability. “A good strategy helps a business focus on the target markets, and
succeed over their failures, weaknesses, risk and challenges” it must be noted that Unilever foods’
good marketing strategy, needs to be integrated in their organizational goals, policies, actions and
objectives. The major plan of their strategy is to provide a foundation that leads to tactical
development and avoid the above mentioned challenges.
According to Pierce (1988) “Choosing market targets and a strong market position based on
differentiating capabilities afterexperiencing risk and challenges creates a robust and sustainable
value proposition to customers and networks of critical relationships”. This suffice to reveal that
for the company to acquire a competitive advantage in their market spheres, a strong marketing
base is required. Unilever foods’ strategic system may potentially benefits the implementation of
their marketing and strategic system which underpins to strategic planning. If implementation is
ineffective, the carefully devised strategy will be unable to help in improving the organization’s
performance. It is important for Unilever foods to strengthen their feasibility study before
implementing their desired marketing or strategic plan for the improvement of their business.

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4.2 Conclusions
Various components of trade has been improved by Unilever foods. The major focus of their
success has been based on different strategies. Both the internal and external environmental
analysis has to be considered before any business in implemented. For Unilever foods, strategic
plan and strategic positions have been an important factor that pushes the company on top of the
ladder despite emerging rivalries which have taken the storm of competition by surprises. It has
been therefore a need for Unilever foods to maintain the prestige over the past years. With
researches done around the globe Unilever has made use of different marketing strategies. With
strategic trade-offs Unilever has dominated in different countries however the emergency of
different force factors has threatened the business. With various opportunities and strength and
other business factors Unilever continues to remove stumbling blocks which sort to affect their
operations. Currently most of business operation has been affected by the epidemic which has
affected nearly 2.5 million people and COVID-19 has been an enemy of business growth as sales
growth has diminish over the past months, despite this existing factor a widely recognized use of
technology has been opted as a solution to different lock downs that have affected consumers.
Globalization has been therefore threatened as most trading routes are closed but as stated above
Unilever foods have strengthened their operation through setting business agendas for each
continent

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