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Essay / Unilever Strategy and Strategic Decision Making Process
The case examines prescriptive strategy applied to a multi-product group of companies. Unilever is based in more than a hundred countries where several products are manufactured in each of them. However, the market is mature, meaning growth is stagnant and innovation is almost non-existent. To improve growth and sales, the necessary strategies look at how to come up with new products with high profit margins and enter new markets. The prescriptive approach was used to develop a strategy to improve growth and profits. To improve innovation, both prescriptive and emergent strategies can be used since both support innovation. According to the case study, few benefits were realized when the Path to Growth strategy was first implemented (2001-2004). The strategy was initially based on cost reduction. There was also a need to increase volumes through the existing portfolio of branded products through innovation and marketing. By focusing on increasing sales in developing countries where growth prospects were high and increasing investments in personal care products where profit margins were higher, it was possible to improve the portfolio of benefits.2 How prescriptive is Unilever's strategic planning process? How, if at all, does it contribute to innovation? Different types of strategic planning are currently used, as it is a widely debated area of management. However, it is concluded that there are two main schools of thought, the prescriptive approach or the emergent approach (Lynch, 2012). As defined by Lynch (2012), prescriptive strategic planning is the term given to a strategy in which the objective of the strategy is defined in advance and the main elements are designed and developed...... middle of paper..... .gic_analysis_tools_nov07.pdf.pdf/ accessed January 15, 2014 Recklies, D (2001) “The value chain”, Recklies Management Project GmbH, http://www.fao.org/fileadmin/user_upload/fisheries/ docs/ValueChain.pdf accessed 12 January 2014Riley, J (2012) Boston Matrix and Product Portfolios http://tutor2u.net/business/strategy/bcg_box.htm accessed 5 January 2014Saha, A (2011) Mapping chain activities Porter's Value Chain Activities Business Functional Units, http://www.managementexchange.com/hack/mapping-porter%E2%80%99s-value-chain-activities-business-functional-units, accessed January 18, 2014 Tanner, JF and Raymond, MA Principles of Marketing http://catalog.flatworldknowledge.com/bookhub/reader/5229?e=fwk-133234-ch02_s05, accessed January 15, 2014http://www.brs-inc.com/models/ model18.asp, accessed January 10, 2014http://www. investopedia.com/terms/m/matureindustry.asp, accessed January 10 2014