REPORT ON STRATEGIC

MANAGEMENT

Unilever
Pakistan Ltd
 Background of Unilever
Pakistan Ltd Co.
 Unilever Pakistan Ltd., a subsidiary of the
Unilever Group is operating in Pakistan
since 1948.
 The Company’s 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, Lipton’s Yellow Label, Taaza
and Richbru, Brook Bond’s Supreme and
Kenya Mixture etc
 Mission Statement:
 We are exemplary through our commitment to
Business Ethics, Safety, Health, Environment and
involvement in the Community.
 We use our superior consumer understanding to
produce breakthrough innovations in brands and
channels.
 We strive to remain an ever simple and
enterprising business.
 We serve the everyday needs of all consumers
everywhere for foods, hygiene and beauty
through branded products and services that
deliver the best quality and value.
 We attract and develop highly talented people,
who are excited, empowered and committed to
deliver double-digit growth.
 Vision Statement:

 Touching hearts, changing lives.

Unilever Pakistan Limited
 Objectives
 Top Priority – Fulfilment of
customer’s needs:

 “Unileveraims 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 Development

 Unilever 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 competitor’s
products in order to become the market
leader of certain product.
 STRATEGIES Cont…...
 Corporate Strategies

 Leaderin the consumer goods

market.

 Managing govt relations to influence

duty on imports of raw materials and
countering smuggling of competitors
goods
 STRATEGIES Cont…...
 Human 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 Cont…...
 FINANCE 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 Cont…...
 ACQUISITIONS & MERGERS

 Lever 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 last year,
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.
SPACE MATRIX
BCG MATIX
EVALUATING THE BUSINESS
STRAGEY
 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
STRAGEY 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
 Afterthe analysis of the IEFM and
EFEM, we see that the company is
above average. With respect to
SPACE and GRAND matrix 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.