STAGE 3

The
Decision
Stage
Mercado, Manuel
Ferrer, Jude
Delos Santos, Acer
 Table of Contents
Stage 3
Decision stage………………………………………………………..…….4
Importance of Decision Stage in UNILEVER……………………5
Percentage in Decision Stage ……………………………………...6
Decision Strategy of UNILEVER.……………………………...................7
Decision Strategy of UNILEVER.…………………………….......8
Decision Strategy of UNILEVER.…………………………….......9
Decision Strategy of UNILEVER.………………………………..10
Quantitative Strategic Planning Matrix of Unilever……………................11
 Table of Contents
Results of Strategic Planning Matrix  of Unilever……………………………..12
Results of Strategic Planning Matrix  of Unilever …………………….....13
Results of Strategic Planning Matrix  of Unilever ………………………14
Results of Strategic Planning Matrix  of Unilever …………………...…..15
Recommendation………………………………………………………………...16
Strategy map of Unilever………………………………………………………..17
BSC……………………………………………………………………………......18
BSC……………………………………………………………………..19
Decision
Stage
Uniliver
Importance of Decision Stage in Uniliver
Percentage in Decision Stage
 Uniliver In Decision Strategy
1. Design of Goods and Services. The objective in this strategic decision area
is to develop products that suit the organization. Unilever’s operations
management attends to product development issues and challenges. Success
is achieved through continuous innovation to address consumer expectations.
2. Quality Management. In this strategic decision area, operations managers
deal with satisfying consumers’ expectations on product quality. Unilever’s
approach involves implementing quality standards in operational processes to
satisfy product quality requirements. 
3. Process and Capacity Design. The objective of operations management in this
strategic decision area is to ensure adequate resources and develop processes to
support production. Unilever applies robotics and automation in most of the
production processes under its control. This approach maximizes operational
efficiency and productivity.

4. Location Strategy. Efficiency and cost-effectiveness of locations of operations

are the objectives in this strategic decision area of operations management. Unilever
aims to minimize production costs and transport costs of its consumer goods to
reach target markets. 
5. Layout Design and Strategy. Efficient movement of information and resources is
the operations management objective in this strategic decision area. Efficient flow of
information is achieved through computing technologies and networks in Unilever’s
facilities. 

6.  Job Design and Human Resources. This strategic decision area of operations
management considers the sufficiency of human resources to support business
operations. Operational efforts in this area support Unilever’s organizational culture of
performance.

7. Supply Chain Management. In this strategic decision area, operations managers

must ensure that the supply chain supports business strategies. Unilever’s consumer
goods supply chain is extensively automated. The company’s operations management
approach leads to high productivity.
8. Inventory Management. Optimal inventory ordering and holding are the
objectives in this strategic decision area of operations management. Unilever is
concerned with maintaining an adequate inventory of consumer goods to enable the
business to respond to changes in the market. 

9. Scheduling. This strategic decision area focuses on short-term and intermediate

schedules for resource utilization. For human resources, Unilever relies on localized
operations management to address needs in local or regional consumer goods
markets. 

10. Maintenance. Operations managers aim at high reliability and stability of

business processes in this strategic decision area. Unilever maintains redundancy
measures to ensure process capacity when demand suddenly peaks.
 Quantitative
Strategic Planning
Matrix  of Uniliver
 Results of Strategic Planning Matrix  of
Uniliver
Unilever has some of the strongest brands in the consumer goods industry. This strength
enables the company to penetrate markets and effectively compete against other firms. The
broad product mix shows the extent of Unilever’s business growth. For example, the
company has increased its product portfolio through years of mergers and acquisitions,
leading to organizational growth and corresponding increases in revenues
• Strong brands
• Broad product mix
• Economies of scale
• Strong global market presence
 Results of Strategic Planning Matrix  of
Uniliver
One of Unilever’s weaknesses is the imitable nature of its products. For example, even
though the company heavily invests in its product development processes, other firms can
imitate Dove and Rexona products. Also, in spite of its broad product mix, Unilever is
weak because of limited diversification in businesses outside the consumer goods industry.
Moreover, the company lacks direct strong influence on consumers, considering that
retailers are the ones who directly affect buyers. 
• Imitable products
• Limited business diversification
• Dependence on retailers
 Results of Strategic Planning Matrix  of
Uniliver
Unilever has opportunities to diversify by entering businesses outside the consumer goods
industry. Diversification reduces market-based risks and improves business resilience. On the
other hand, product innovation can increase Unilever’s product attractiveness by addressing
the needs of increasingly health-conscious consumers. 
• Business diversification
• Product innovation for health
• Business enhancement for environmental conservation
• Market development
slts of Strategic Planning Matrix  of Uniliver
Unilever faces tough competition, which is a threat based on the strengths of
other firms in the industry. Competitors threaten to reduce the company’s
market share and corresponding financial performance. Product imitation is
also a major threat against Unilever.
• Tough competitive rivalry
• Product imitation
• Increasing popularity of retailers’ house brands
 Recommendation
They should diversify Unilever’s business through acquisition of related
firms not in the consumer goods industry. Also, Unilever needs to consider
product innovation as an opportunity to boost business performance. It is
recommended that the company must use its strengths, such as economies of
scale, for product innovation to address competition and the threat of
imitation.
Strategy Map Uniliver
BSC
Uniliver wants to help create a world where everyone can live well within
the natural limits of the planet. We’re putting sustainable living at the heart
of everything we do. That includes our brands and products, our standards of
behaviour within and beyond Unilever, and our partnerships and advocacy
efforts – which are driving transformational change across our value chain,
and beyond.