Strategic Management Multinational Consumer Goods

Question: Discuss about the Strategic Management for Multinational Consumer Goods. Answer: Introduction: Unilever is the multinational consumer goods company that deals with numerous brands. In order to ensure the long- term sustainable position, the company has been concentrating on the overall financial performance. It is even much helpful in achieving the competitive advantage. The overall financial performance is shown below: First Second Third Fourth Full Year Turnover b - Sales growth (%) - Volume growth (%) - Pricing (%) 12.1 8.4 3.5 4.7 13.3 5.8 2.2 3.5 13.4 5.9 3.4 2.4 12.6 7.8 4.8 2.9 51.3 6.9 3.4 3.3 Sales Growth (%) Category Refreshment Food 7.4 5.9 3.2 0.6 6.8 (0.4) 9.8 1.3 6.3 1.8 Region The Americas 7.9 7.5 4.7 11.8 7.9 Table 1: Quarterly Financial Report (Source: Euromonitor.com 2017) The above table highlights that Unilever has grown ahead in the market of United States. The company is even much focused on establishing the effective relationship with the communities and customers. Cunningham et al. (2015) stated that the food and beverage companies are receiving many opportunities in this current trend. The sustainable position of the company depends on the customers satisfaction level. However, the major issue was found in the investment purposes. The lack of investor groups is one of the most significant challenges that Unilever has been facing in this current time (Hasan 2015). Unilever is the leading producer of food and beverage products in the world. It is noted that the other leading Ice Cream brands in United States are the major competitors of Unilever. The extreme level of competition with the leading Ice Cream brand is one of the major issues that Unilever is facing in this recent times (Hasan 2015). Value Statements of Unilever Unilever has set several core values, which are as follows: Impeccable Integrity- Unilever maintains transparency and ethical behaviour while undertaking any business functionality (Chong 2013). Demonstration of Passion of Winning- Unilever delivers the products of expected and promised quality (Hasan 2015). Focus on Consumer Preferences- Unilever focuses on the demands and needs of the consumers and keep them as their major priority (Hasan 2015). Bringing the best in every aspect- In order to resolve the issues, the leaders of Unilever are mainly restructuring the marketing activities (Cunningham et al. 2015). The company is paying attention towards strengthening the competitive position. Ensuring a better world- The company is also focusing on the community welfare (Chong 2013) Porters Five Forcesof the Unilever Porters Five Forces Factors Analysis of the factor Threat of new entrants The threat is presently low as Unilever has strong brand name and advanced technology for their production line (Chong 2013). However, in recent time, due to liberalization and ease in globalization policies, the threat for new entrants is growing. Threat of substitutes The threat is low as people in United States as people do not comparable product or services that can satisfy their demands for ice cream in terms of quality and quantity (Chong 2013). Bargaining power of buyers Bargaining power of the consumer is high as there is huge availability of the other ice cream products like Private label, Breyers etc (Unilever USA 2017). Bargaining power of suppliers Suppliers power is low as Unilever has their production line in United States and can switch to an other supplier at low cost (Hasan 2015). Intensity of rivalries High intensity of existing rivalry from the ice-cream company Private label and Breyers, whose key products are ice-cream (Unilever USA 2017) Table 2: Porters five forces of Unilever Ice-Cream (Source: Created by Author) Diversification of Unilever Hasan (2015) defines that diversification is a form of corporate strategy to attract more people for their profitability of the organization through greater sales. In this context, Unilever ensures their diversification by advertising, marketing and formulating different variety on the ice cream and their flavors. Ice-cream products are a portion of their food and drink department in which, magnum, Heartbrand Glidat Stauss and Heartbrand Good Humor Ice Cream are some of the diversification in ice cream products (Unilever USA 2017). Chong (2013) portrays that magnum is targeted particularly for adults and their Heartbrand products Frutare targets most of the children due to their attractive pulpy fruit taste. Moreover, association with other organization like Ben--Jerrys and Breyers is also an evidence of the diversification of the Unilever. Edmondson (2014) stated that this associatively with leading ice cream companies have provided the Unilever to target more customers through the diverse business policy of other companies. Hasan (2015) also explains that expansion of business in other region also defines the diversification the organization. Unilever on this context, expand their business not only in United States but also in Asia Pacific regions, Eastern and Western Europe, Australasia and M. East Africa (Unilever USA 2017). Key Success Factorsof Unilever In this section, the key success factor of the Unilever will be illustrates that drives their financial growth. Innovation- Innovative product developments are their key success factor for attracting more consumers like Magnum and Frutare. Sim et al. (2016) depicts that the formulation of Magnum have enhanced their sales by 2% in the year 2012. It is also evident that in 4 years only the Magnum products has attained 1 billion euro to Unilever (Unilever USA 2017). Research and Development initiatives- The concerned organization research about the market and consumer demands according to the consumer preferences. Chong (2013) also highlight that Unilever provides their ice cream products in lower price so that every group of the community can be targeted. Technological advancement- Sim et al. (2016) depicts that utilization of the technological advanced instrument drives the profitability of the organization. Unilever also adopts technology like reducing sugar and calories from the ice cream, using ice cream Stabilizers and flavors and equipment like homogenizers, ageing tanks and mix plants (Unilever USA 2017). Embed sustainability- Unilever have their Unilever Sustainable Living Plan for achieving their vision to grow their business through their core working practices and procedures (Chong 2013). The concerned organization also follows food legislation like the FDA Food Safety Modernization Act, Retail Food Safety Regulation (NACCHO Agreement) to maintain their business sustainability (Fda.gov 2017). Reference List Chong, L.B., 2013. Lonely Journey of an Ice Cream Peddler in China. InManaging a Chinese Partner(pp. 195-203). Palgrave Macmillan UK. Cunningham, K., Kamonpatana, K., Bao, J., Ramos-Buenviaje, J., Wagianto, A. and Yeap, P.W., 2015. Unilever Nutrition Strategy and Examples in Asia.Journal of nutritional science and vitaminology,61(Supplement), pp.S39-S40. Edmondson, B., 2014.Ice Cream Social: The Struggle for the Soul of Ben Jerry's. Berrett-Koehler Publishers. Euromonitor.com., 2017.Market Research United States. [online] Available at: https://www.euromonitor.com/usa [Accessed 5 Jan. 2017]. Fda.gov., 2017.FDA Food Safety Modernization Act (FSMA). [online] Available at: https://www.fda.gov/Food/GuidanceRegulation/FSMA/ [Accessed 5 Jan. 2017]. Hasan, M.M., 2015. Marketing Analysis of Unilever.Total Quality Management,11, p.13. Sim, S., King, H. and Price, E., 2016. The Role of Science in Shaping Sustainable Business: Unilever Case Study. InTaking Stock of Industrial Ecology(pp. 291-302). Springer International Publishing. Unilever USA., 2017.Brands. [online] Available at: https://www.unileverusa.com/brands/ [Accessed 5 Jan. 2017].