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Strategic Management - Unilever

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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 competitive advantage. It provides deeper understanding to establish a SWOT analysis in order to arrive at the applicable Ansoff theory. It describes Unilever’s primary and support activities’ characteristics (Figure 1).

Figure [ 1 ]

Primary Activities
Inbound & Outbound Logistics: Unilever had put a five-year strategy plan, called the “path to growth” to transform its inbound logistics in way that increases efficiency and saves money to be invested elsewhere outside the business. This plan started in North America by integrating six operating business and emerging 3 supply chains. The philosophy of this change was to create one single set of distribution centers that attain the 24hour delivery plan to the customer. Transportation companies were reorganized and chosen by Unilever for their suppliers (Harp, 2002). The whole transportation process was developed on a web-based structure. Transportation leadership team was formed to tackle more ways to reduce cost and time.
Operations: During 2011, Unilever has invested in ERP systems from SAP which resulted in $1 billion savings of procurement expenses. In the aim to

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