Strategic Business Analysis for Unilever’s Operational Excellence

1. Introduction
Good morning/afternoon, thank you for the opportunity to present. We are here for a successful
business analysis with extensive experience in driving strategic change across various industries.
Today, we aim to demonstrate how our expertise can help Unilever, one of the world's leading
multinational consumer goods companies, optimize its business processes, improve operational
efficiencies, and sustain long-term growth.

2. Company Overview
Since its establishment in 1929 Unilever maintains operations across 190 nations and produces
food products and beverages as well as cleaning agents and personal care goods and wellness
products. As a company which owns products under Dove and Lipton and Ben & Jerry’s brands
Unilever invests substantially in sustainability while pursuing innovation. Through this
presentation we strive to demonstrate how collaborating with our consultancy will supply
Unilever with vital strategic data which will boost its marketplace standing and uphold
successful performance in the current worldwide business environment.

3. PESTLE Analysis

 Political:
 Operation models of Unilever face major changes from government policies.
 The company is forced to innovate sustainable packaging and reduce waste.
 Trade barriers created by Brexit operations together with tariffs and taxes
imposed on imports and exports.
 Economic:
 The global economic downturn caused by COVID-19 shifted consumer spending
patterns
 Economic recovery in regions like Asia and Africa presents growth opportunities,
although inflation and currency fluctuations could impact profits.
 Increasing costs for raw materials
 Technological:
  Advances in production technology.
 The company is expanding its e-commerce platforms and digital marketing
strategies
 Supply chain technology.
 Environmental
 The company embraces sustainability goals through two targets that include
neutral carbon emissions by 2039 and plastic waste reduction.
 The company pursues ethical sourcing methods which strengthens smallholder
farmer communities.

4. Porter’s Five Forces Analysis

 Threat of New Entrants:
 Unilever benefits from brand loyalty within the consumer goods market.
 Unilever builds entry barriers as well as cost-efficient business practices that
challenge market new entrants to match.
 Bargaining Power of Suppliers:
 Raw materials such as palm oil and agricultural ingredients and tea demand the
use of numerous suppliers.
 Unilever’s production costs are impacted by commodity price fluctuations
although it procures many raw materials from different suppliers.
 The company's sustainability standards create supplier requirements which both
limit access to suppliers for certain materials while enhancing ethical standards of
those who remain in its network.
 Bargaining Power of Customers:
 Consumer taste preferences serve as a major factor that shapes the product range
at Unilever. Changes in customer taste for sustainable and healthier products
place immediate pressure on Unilever to develop new offerings quickly.
 Most Unilever's revenue comes from large retailers including Walmart Tesco and
Carrefour who can control prices and allocate shelf position.
 Threat of Substitute Products:
  The FMCG industry confronts competition from substitute products including
low-cost local brands which serve as alternatives to their products.
 The market shift toward environment-friendly choices continues to increase as
customers embrace sustainable goods which creates difficulties for standard brand
organizations such as Unilever.
 Industry Rivalry:
 Unilever makes permanent product improvements because of intense competition
against Procter & Gamble and Nestlé within the FMCG sector.
 The price pressures and innovation challenges that exist because of competitors
including regional brands force Unilever to lead in product quality while
improving branding and marketing techniques.

5. Resource Audit

 Financial Resources:
o Financially Unilever maintains strong stability through its revenue exceeding €50
billion during recent years. The business produces strong profits and significant
cash flow through its various products which operate across multiple markets.
o Financial stability enables Unilever to significantly invest in sustainability
initiatives as well as support acquisition deals while driving innovation.
 Technological Resources:
o Unilever dedicates significant resources to research and development which
focuses on developing new sustainable and health-oriented products.
o The organization uses technological progress to strengthen its operation through
e-commerce tools and Artificial Intelligence data analysis and supply chain
management automation.
 Physical Resources:
o The physical assets of Unilever consist of their worldwide manufacturing sites
together with warehouses and distribution channels which enable efficient supply
chain procedures.
6. SWOT Analysis

 Strengths:
 Unilever is recognized worldwide, with flagship brands like Dove, Lipton, and
Ben & Jerry’s.
 The company offers products across multiple categories, from personal care to
nutrition.
 Unilever’s leadership in sustainability, including efforts to reduce carbon
emissions and plastic waste, enhances its brand image.
 Its efficient global supply chain and focus on innovation keep it competitive and
responsive to market changes.

 Weaknesses:
 Over-reliance on certain markets: Unilever depends heavily on mature markets
like Europe and North America, which limits growth potential.
 Vulnerability to regulatory challenges: Compliance with diverse regulations
worldwide can increase operational costs and complexities.

 Opportunities:
 Expansion in emerging markets like Africa and Asia.
 Increasing demand for sustainable and health-conscious products.
 Strategic acquisitions to enhance market presence.

7. Role of External Business Consultants

 Improving Business Processes:

 External consultants can identify inefficiencies in Unilever’s operations and supply chain,
proposing solutions to streamline processes, reduce costs, and enhance productivity.
 Consultants can recommend ways to enhance Unilever’s digital transformation, using AI,
data analytics, and automation to improve product development, customer engagement,
and operational efficiency.
 They can support the integration of sustainability practices across all operations, ensuring
Unilever stays ahead of global environmental trends and regulations.
8. Conclusion

In summary, the PESTLE, Porter’s Five Forces, Resource Audit, and SWOT analyses highlight
Unilever’s strong market position, but also reveal challenges such as regulatory risks, supply
chain disruptions, and intense competition. External consultants can bring significant value by
identifying inefficiencies, enhancing digital transformation, and further integrating sustainability
practices. They can also support strategic decision-making and uncover new growth
opportunities. Therefore, hiring external business consultants would be a strategic move for
Unilever, ensuring it not only maintains its competitive edge but also continues to innovate, lead
in sustainability, and expand in the global market.