The objective of this report is to develop a strategic plan for UK based enterprise that can assist them in attaining goals and objectives of firm in effective manner. The strategic plan requires to base on environmental analysis by considering:
- Evaluate the influence of macro environment has upon business practices of Unilever.
- Identify internal environmental and capabilities of Unilever.
- Determine the outcome of analysis based on Porter’s five force model in the context of Unilever.
- Provide an application of different models and theory in order to analyze available strategic directions for Unilever.
Business strategy is related with seeking of the competitive benefit at market place in business rather than the corporate level. It is an action that employer to take effective actions in order to gain organisational objectives with in specific period of time. Under this, strategy is helpful in attaining long term objectives in better manner. Strategy is related to integrating activities or operations of company and utilize scare resources with organisational environment to meet with current objectives (Ackermann and Audretsch, 2013). With the help of this, firm take take its decisions in a better manner. This report is based on Unilever organisation. It is transactional customer products and its head quarter in United Kingdom. Its goods consist beverage as food, personal care goods and cleaning agents. It is one of that largest customer products organisation and manufacturer of the margarine and also food spreads. In this report mentions about capabilities of Unilever firm by applying SWOT and PESTLE analysis. Under this, there is a need to analyse internal environment as well as capabilities of firm. Competitive forces applying the Porter's five forces model will be discussed in this mention report.
P1 Frameworks to analyse the macro environment for Unilever organisation
Macro environment refers to situation that exists in an economy as while rather than specific region ore sector. The external factors are uncontrollable and impact on decision making of company. Activities as well as operations of any organization are impacted through the macro environment by developing better or effective strategies in context to meet with objectives in an effective or better manner. In this, there are two different types of external environment and these are macro and micro. All environmental factors are under control of firm by also affect on decision making process of an organisation (Alsoboa and Aldehayyat, 2013). Top management of Unilever organisation prepare better strategies and include its staff members to meet with set goals of business. Under this PESTLE and SWOT analysis given below as above:
PESTLE Analysis: Under this, it is a necessary macro factor which more impact on functions or operations of an organisation in a negative or positive manner. Under Unilever business firm, there is an administration departments which take effective action as well as plan in an efficient or effective manner. Unilever is transactional organisation with goods or services those are present in more than 190 countries over the 400 brands consisting Sunsilk, Magnum, Rexona, Dove etc. IN context to Unilever company, external components are significantly, including global scope of business. The main focus of this company is on increasing performance level of firm.
Political factor- It impacts on performance level of Unilever. It determines an affect of government on macro environment and remote. Most of the times, policies can be of tax reforms which directly affect on an organisation (Bentley, Omer and Sharp, 2013). In addition to this, political stability of region under which an organisation is working to achieves an effective opportunity for firm. In European Union, political problems in European Union are an existing threat against operations of Unilever firm in region customer products at market place. An organisation has an opportunity for international development depends of increase its free trade relations. In addition to this, there are many effective opportunities are available at market place and it is a responsibility of manager of Unilever to determine all challenges which are concerned with situation of European Union. Better intra- governmental relationship is a main sources of effective opportunities for international organisations such as Unilever with more rivals.
Economic factor- The major focus of Unilever company on realm of goods which are required to assist an organisation in context to maintain worth and stability of whole sector. Performance level of Unilever company is proportional to stability of an economy of country in which firm is leading its business (Cadle, Paul and Turner, 2010). Under this factor, there are many different components are included like for an instance inflation, deflation, economic rate etc. At the time of households, recessions tend to minimise non- essential and also affect on some necessary party of product portfolio of business firm. In order to this, Unilever firm has dispute with its distributors over increased cost of goods to affect of currency of Brexit. Some of the economic factor identifies of performance of Unilever in customer goods sector mention below as above:
- Enhancing wages or salary in the developing countries.
- Developed countries have economic stability.
- Increased growth rate.
Social factor- This factor problems as well as tends impact performance level of Unilever or macro environment. It encompasses lifestyle and beliefs of people and necessary culture of region. The tastes and preference of consumers are changing day by day so it is a responsibility of Unilever form to manufacture its services and products on the basis of their needs and demands in a significant or effective manner.
For an example- People of modern state are more live their better lifestyle and also searched luxury products which can satisfy the basic requirement of consumers in an effective manner.
Technological factor- In this, Unilever firm is based on existing technology in order to support business and fulfil requirements of customers (Curwen, 2011). In context to this, there are some technological factors mention below:
- Increasing Research & Development.
- Enhance automation of business.
- Reduce transportation cost depends on efficiencies of technology.
Enhancing business automation is an effective opportunity for business of Unilever organisation to maximise efficiency of operations. This firm investment more in the research and development and purchase new technology for them.