STRATEGIC MANAGEMENT ASSIGNMENT 1 & 2

Contents1. INTRODUCTION OF UNILEVER PAKISTAN Ltd.......................................................................................4

Unilever Pakistan Ltd:..................................................................................................................................4

Overview of Unilever Pakistan Ltd...............................................................................................................5

Accountable to our stakeholders:................................................................................................................5

FACTS & FIGURES........................................................................................................................................6

OUR BRANDS...............................................................................................................................................8

Food brands.................................................................................................................................................8

Badami............................................................................................................................................8Blue Band......................................................................................................................................8

Brooke Bond A1.........................................................................................................................8

Brooke Bond Supreme...........................................................................................................8

Cornetto.........................................................................................................................................8

Energile..........................................................................................................................................8

Fruttare..........................................................................................................................................8

Knorr................................................................................................................................................8

Lipton...............................................................................................................................................9

Magnum..........................................................................................................................................9

Pearl Dust.....................................................................................................................................9

Unilever..........................................................................................................................................9

Rafhan.............................................................................................................................................9

Wall's Desserts...........................................................................................................................9

Wall's Kid's Range....................................................................................................................9

Personal care brands....................................................................................................................10

Clear (Shampoo)......................................................................................................................10

Close Up.......................................................................................................................................10

Dove...............................................................................................................................................10

Fair & Lovely..............................................................................................................................10

Lifebuoy shampoo..................................................................................................................10

Lifebuoy soap............................................................................................................................10

Lux...................................................................................................................................................10

Pond's............................................................................................................................................10

Rexona..........................................................................................................................................10

Sunsilk...........................................................................................................................................10

Vaseline........................................................................................................................................11

Home care brands..........................................................................................................................11

Comfort.........................................................................................................................................11

Rin...................................................................................................................................................11

Sunlight........................................................................................................................................11

Surf Excel....................................................................................................................................11

Vim..................................................................................................................................................11

Offices and Sites........................................................................................................................................12

Our Vision..................................................................................................................................................12

Our Mission...............................................................................................................................................12

2. Internal and External Audit of Unilever.............................................................................................13

Strengths:..................................................................................................................................................13

51. Well-established brand name.....................................................................................15

52. Aware of the Consumer Buying Behavior...............................................................15

53. Unilever has Global reach, with local Roots..........................................................15

54. Vast Distribution Networks..........................................................................................15

56. Reached 5.2 Million People through Lifebuoy Handwash Programs in 2013.15

57. Reached 6.2 Million People through Sustainability Programs in 2013.........15

58. 82608 Meals were provided to World Food Programs......................................15

59. 16 % Reduction in it's Carbon Footprint through Unilever Head Office Initiatives.......................................................................................................................................15

Weaknesses:..............................................................................................................................................16

3. Brands have swallowed up the Parent Company Name.......................................16

Opportunities:...........................................................................................................................................18

Threats:.....................................................................................................................................................20

EFE : THE EXTERNAL FACTOR EVALUATION MATRIX.................................................................................22

CPM Matrix................................................................................................................................................25

IFE Matrix..................................................................................................................................................27

QSPM MATRIX...........................................................................................................................................30

BCG MATRIX..............................................................................................................................................35

SWOT MATRIX...........................................................................................................................................36

Proposed Strategies:..................................................................................................................................37

1. INTRODUCTION OF UNILEVER PAKISTAN Ltd.

Unilever is one of the world's leading suppliers of fast moving consumer goods across Foods and Home and Personal Care categories. Unilever's portfolio includes some of the world's best known and most loved brands.

Unilever Pakistan Ltd:

Unilever Pakistan (70.4% Unilever equity) is the largest FMCG company in Pakistan, as well as one of the largest multinationals operating in the country. Unilever Pakistan Ltd., a subsidiary of the Unilever Group is operating in Pakistan since 1948. The Company’s main business lines are Soaps and Detergents, Personal Products, Cooking Oils and Fats, Packed Teas, and Ice Creams. Unilever has a long list of brands such as Surf, Vim, Rin, Lifebuoy, Sunlight, Lux, Rexona, Sunsilk, Close-Up, Blue-Band, Dalda, Planta, Lipton’s Yellow Label, Taaza and Richbru, Brook Bond’s Supreme and Kenya Mixture etc. which are common household names in Pakistan.

The Company’s factory at Rahim Yar Khan was one of the first industrial units to be constructed after the creation of Pakistan. As the consumer base expanded over the years and the Company entered into new product lines like Personal Products and Margarine, it invested further in the installation of modern manufacturing facilities including a factory at Karachi. Today, the Company is using latest state-of-the-art technology for producing high quality products.

In 1995, the Company established a new factory near Lahore to manufacture the Wall’s range of ice creams, which have become popular within a short time. In 1996, the present group – Unilever UK acquired the Polka Group that produced ice creams. In 1999, Pakistan industrial promoters (Private) Limited, owners of ‘Polka’ brands of Ice Cream were merged with Lever.

In order to leverage the synergies of Unilever’s international brand strength, market edge and corporate image, Lever Brothers Pakistan Ltd. changed its name to Unilever Pakistan Ltd., in August 2002.

Overview of Unilever Pakistan Ltd.The company had a turnover of Rs. 23.3 bn  (Euro 309 mn) in 2007, and enjoys a leading position in most of its core Home and Personal Care and Foods categories, e.g. Personal Wash, Personal Care, Laundry, Beverages (Tea) and Ice Cream.

The company operates through 5 regional offices, 4 wholly owned and 6 third party manufacturing sites across Pakistan.

Accountable to our stakeholders:Since the time Unilever Pakistan began its operations in 1948, the Company has been closely connected to the Pakistani people and its brands have been an integral feature in their daily lives. In fact, the nature of our business enables our brands to be the pulse and heartbeat of the 164 million people in Pakistan.

This is a huge commitment, which makes us responsible and accountable to all our stakeholders and society as a whole and strengthens our resolve to:

Make a positive difference to the lives of low income consumers Create new opportunities for growth Improve the overall quality of life in Pakistan, by promoting education, nutrition,

health and hygiene.        

FACTS & FIGURES

Unilever Pakistan has 5 wholly owned and 7 third party manufacturing sites across Pakistan

Unilever Pakistan has employees around 1,500 on their payroll and many thousands indirectly.

Listed in Karachi Stock Exchange. Unilever Pakistan has 32 products as per its website. Head office is in Karachi. During the year ended December 31, 2011, the Company produced 48,313 metric

tons of home and personal care products out of its annual capacity of 60,446 metric tons.

28,909 metric tons of beverages out of 62,377 metric tons. 43 million liters of ice cream out of its annual capacity of 77 million liters. Unilever Pakistan Ltd. had revenues for the full year 2011 of 51.9B. This was

16.1% above the prior year's results. In 2013 it was $44.7 B Share Value 6,261 PKR. Annual earnings equaled 323.88 per share. The Company had three subsidiaries, namely Lever Chemicals (Private) Limited and

Levers Associated Pakistan Trust (Private) Limited, which act as trustees of Union Pakistan Provident Fund (Unilever Provident Fund), and Sadiq (Private) Limited, which is not carrying on any business operations.

The directors are pleased to present the financial statements for the nine months ended September 30, 2013.

2013

Net Sales (Rs’000) 33,009,192

Profit before taxation (Rs’000) 3,232,527

Profit after taxation (Rs’000) 2,135,755

OUR BRANDS

Food brandsUnilever is one of the world's leading food companies. Our passion for understanding what people want and need from their food - and what they love about it - makes our brands a popular choice.

September 30, 2013 (Rupees in thousands)

Home and Personal Care Beverages Ice Cream Other Total

Revenue 6,625,359 2,853,108 1,738,235 288,682 11,505,384

Badami

"Badami" is Wall’s response to the traditional kulfi.

Blue Band

Blue Band is essential for a family’s healthy growth and development and to enjoy a lifestyle full of vitality.

Brooke Bond A1

Brook Bond A1 is the strong cup of tea that gives the strength to face challenges and stand up for what you believe in.

Currently, Brooke Bond Supreme is running the “Chaske Zindagi Ke” campaign

Brooke Bond Supreme

Brooke Bond Supreme is part of life for the Pakistani consumer, bringing families closer together with its rich taste and traditions 

Cornetto

The Cornetto experience consists of a delicious, crispy-baked wafer, coated inside fro m top to bottom with a chocolate layer, rich ice cream inside, topped off with sauce and chocolate chips.

Energile

Bringing Vitality to your life.

Fruttare

Fruttare’s mission is to inspire in people the freedom to indulge by providing both pleasure and health through the natural goodness of fruit without the guilt of too many calories.

Knorr

Knorr believes in adding magic to every day meal moments.

Lipton

Lipton is Tea – Tea is Lipton.

Magnum

Celebrate pleasure with the tempting Magnum range – an irresistible combination of thick, cracking chocolate with creamy vanilla ice cream.

Pearl Dust

Lipton Pearl Dust is the Sindhi soul that imbues intimacy and warmth in a couple’s relationship

Unilever

Unilever Food Solutions helps chefs serve tasty, wholesome meals that keep guests coming back for more. We create ingredients that save precious prep time in the kitchen, without compromising on flavor or flair.

Rafhan

From the highly nutritious and healthy Corn Oil to the lip smacking Desserts – Rafhan today offers a complete meal package with the cherry on top!

Wall's Desserts

At Wall’s, we like to think we have one of the best jobs in the whole world; making delicious frozen dessert treats for the whole family.

Wall's Kid's Range

Wall’s Kid's Range brings to you the surprise of delicious frozen desserts wrapped around fun and adventure.

Personal care brands

Our personal care brands, including Dove, Lifebuoy, Lux, Pond's, Rexona and Sunsilk, are recognised and respected around the world. They help consumers to look good and feel good – and in turn get more out of life.

    

Clear (Shampoo)

Clear spells confidence for the young Pakistanis of today.

Close Up

Our mouths are our gateway to life. We use them to eat, drink, talk, laugh, smile and what not!

Dove

To help you enjoy your own brand of beauty, Dove provides an extensive range of cleansing and personal care products.

Fair & Lovely

Asia’s leading fairness brand.

Lifebuoy shampoo

Providing healthy hair to all Pakistani consumers.

Lifebuoy soap

Lifebuoy's goal is to provide affordable and accessible hygiene and health solutions.

Lux

Lux brings out the star in you! 

Pond's

Making a real difference to women's skin and the way they live their lives.

Rexona

With Rexona you know your deodorant won’t let you down.

Sunsilk

Sunsilk provides real solutions to women's everyday hair needs everywhere.

Vaseline

To help you enjoy great, healthy skin everyday.

Home care brands

In many parts of the world we lead the home care market, with brands such as Omo, Surf, Comfort and Cif. It's more than just hygiene – with homes and clothes that are clean and cared for, we help you get more out of life.

    

Comfort

Comfort fabric conditioner helps your loved ones feel cared for everyday through clothes with amazing shine and fragrance that no detergent alone can deliver.

Rin

Consumer insight shows that one of the leading drivers that indicate a good wash is the level of whiteness and brightness that clothes have after the use of a detergent powder. Rin is formulated to offer whiteness and bring back life in your everyday clothes.

Sunlight

Sunlight aims to transform the chore of washing clothes into a moment of delight for Pakistani housewives by giving them a magical wash experience of lemons and thousands of flowers.

Surf Excel

Remember when you were a child? How you were free to explore, returning home covered in dirt and other stains that you wore like the badges of an intrepid discoverer?

Vim

The globally renowned brand with its revolutionary one-wipe degreasing formula, now in Pakistan!

Offices and Sites

The company operates through 5 regional offices, 4 wholly owned and 6 third party manufacturing sites across Pakistan.

Our Vision

We help people around the world meet everyday needs for nutrition, hygiene and wellbeing, with brands that help people look good, feel good and get more out of life.

Our Mission

Vitality is at the heart of everything we do. It's in our brands, our people and our approach to business.

2. Internal and External Audit of Unilever

Strengths:

1. End-user sales control and direction.

2. Right products, quality and reliability.

3. Superior product performance vs competitors.

4. Better product life and durability.

5. Spare manufacturing capacity.

6. Staff has experience of end-user sector.

7. Maintain customer/consumer lists.

8. Direct delivery capability.

9. Promoting special events of every culture.

10. Oldest MNC of Asia

11. Continuously working on Product Quality and Innovations.

12. Existing sites are big enough to serve easily serve.

13. Products have required accreditations.

14. Management is committed and confident.

15. Good diversity of nationalities on the Unilever executive board which indicate no discrimination.

16. Encouraging managerial personnel from developing world as well as women

17. Spending Lacs of Rupees on ERP Implementation.

18. Ability to tailor products to customer demands.

19. In-depth understanding of different markets and innovate the products suitable for each market, i.e Geo-Centric and Poly Centric.

20. Adhering to a policy of listening to customers.

21. UNILEVER is enjoying market edge of 41% in FMCG industry. UNILEVER is at number one in ice cream segment and having 14% market share all over the globe.

22. UNILEVER’s key competitive advantage over other market participants is the retail reach of the company. UNILEVER services 500,000 outlets with 50 % through direct distribution and remaining via wholesalers.

23. Practice Human Needs theory.

24. Employees are promoted quick and timely.

25. Close Monitoring of Human Resources.

26. Provide Work, Life Balance to their employees.

27. PKR 2.43m Employee contribution towards flood relief and rehabilitation work.

28. Facilitate purchase of houses, vehicles and computers repayable in monthly installments to employees.

29. Established Raabta Consumer Careline for their consumers.

30. Global leader in products for skin cleansing, deodorants, tea, shampoo, soap and antiperspirants.

31. 385 Unilever employees volunteered in sustainability initiatives in 2013.

32. Successful Brand extension in dove from skin care to hair care .

33. Introduces new way of woring and teambuilding.

34. Responsibility for others

35. Supports Innovation, pioneering innovation

36. Robust career development

37. Traveling and Tourism

38. Diversity in opinions

39. Good social responsibility to shareholders and employees

40. Follow Participative style of Management.

41. Large range of brands to match the diversity of its consumers.

42. Path to growth-concentrating and refocusing on core brands

43. Open way of Communication

44. Employee is given extensive briefing and training soon after appointed.

45. Strong brand equity.

46. Innovative, Strong and effective brand communication

47. High dividend pay out.

48. Strong financial position.

49. Excellent supply chain management .

50. Corporate philanthropy .

51.Well-established brand name.

52.Aware of the Consumer Buying Behavior.

53.Unilever has Global reach, with local Roots.

54.Vast Distribution Networks.

55. Strong and Timley Strategic Decisions like, acquiring of polka, Knorr, Rafhan Foods and selling of Dalda.

56.Reached 5.2 Million People through Lifebuoy Handwash Programs in 2013.

57.Reached 6.2 Million People through Sustainability Programs in 2013.

58.82608 Meals were provided to World Food Programs.

59.16 % Reduction in it's Carbon Footprint through Unilever Head Office Initiatives.

Weaknesses:

1. Rising raw material cost is being absorbed by the company.

2. Discrimination among Employees.

3. Brands have swallowed up the Parent Company Name.

4. Weak Web Presence.

5. Contradictions on website.

6. In-sufficient data available to quote for Uni-lever Pkaistan.

7. Operational complexity due to a large number of products in portfolio and due to diverse work force.

8. Unilever Pakistan has got no identity of its own like hindutan Unilever.

9. Unilever.pk heavily rely on Unilever Gobal.

10. Only 1500 Employees are on their Payroll as per website.

11. Many protests have been conducted by labour Unions against Unilever Pakistan.

12. Accused of involvement in exploitive tactics against indirect employees.

13. Hire and Bless only Managers from First lIne to Top, labour is indirectly hired and not on their payroll.

14. Not able to manage factories on their own closing and outsourcing.

15. Monopoly Practices and Political Bullying.

16. As per IGI Security Report, The main focus has been investing in HPC business constituting over 60% of the total advertising expenditure. However, the growth in sales has lagged the growth in advertising spend which has been twice the revenue grwth indicating that investment in brands have been unsuccessful in leveraging sales growth.

17. Heavy reliance on casual, temporary and agency workers, workers whose contracts bring them no job security and inferior pay and benefits to those formally employed by Unilever, is the rule throughout the company's operations.

18. At the Walls Ice Cream Factory in Lahore, for example, there are (still) 89 permanent workers - and 750 workers employed on a casual basis.

19. At Unilever's Khanewal Tea Factory, for example, there are 22 permanent workers and 1,000 casual employees.

20. The Lipton tea factory in Karachi formerly employed 132 permanent workers and 450 casuals.

21. Recently, ULEVER has closed down the Karachi tea factory in view of low demand and sales volumes.

22. Not Following National laws and international Conventions and guidelines,

23. Using Nameless Factories for Prduction as in the case of Tea, in Karachi.

24. Unilever systematically violates worker and trade union rights through direct attacks on trade unionists (involving armed police as well as hired thugs) as well as aggressive outsourcing and casualization.

25. More focused towards outsourcing then in-house development and manufacturing.

26. Indirect Distribution Network.

27. Had to sale of Dalda.

28. Blueband being produced from Dalda factory.

29. Charged of signigng contract with Dalda that it won’t enter into competition.

Opportunities:

1. Could develop new products.

2. Local competitors have poor products.

3. Profit margins will be good.

4. End-users respond to new ideas.

5. Can surprise competitors.

6. Support core business economies.

7. Could seek better supplier deals.

8. Market Development in developing countries.

9. Strategic acquisitions can help Unilever to expand its business.

10. Population continously increasing in Pakistan.

11. Rural area markets to expand.

12. Big opportunity in food business.

13. Export opportunity of hlal foods to Foreign Countries.

14. Younger generation is becoming look and beauty conscious.

15. More awareness about hair protection and hair cleanliness.

16. Integration providing innovation opportunities.

17. New soups can be introduced in winters.

18. huge potential in the rural areas of Pakistan

19. E-commerce- Online Selling can be initiated.

20. Forward Integration can be done by launching unilever stores

21. Enough space available for launching of nutritious food items.

22. Like Pepsi's Lays and P&G's Prigle can Come up with Chips.

23. Pakistan is the third largest importer of tea in the world so huge potential in tea farming.

24. Huge oppurtunity is awaiting in detergent as about 50% of the population uses laundry soap for fabric washes.

25. Aaround 40% tea is smuggled so that can be catered too by unliever thus a big market remain un-addressed.

26. Only urban area are familiar with shampoo there still awaits a long way to go.

27. Since pak has one of the least cocentrated retail market in the world with state owned utility stores corporation holding

Threats:

1. Legislation could impact.

2. Existing core business distribution risk.

3. Market demand very seasonal.

4. Retention of key staff critical.

5. Could distract from core business.

6. Possible negative publicity.

7. Vulnerable to reactive attack by major competitors.

8. Health consciousness people may find an alternative low calorie diets and exercise.

9. Low GDP growth rate.

10. Double digit inflation.

11. Deteriorating security conditions.

12. Energy shortage.

13. Smuggling of tea and its own international products.

14. Deteriorating value of Pakistani currency.

15. High taxation.

16. The local companies.

17. Price wars.

18. Competitors' aggressive marketing.

19. Religious Semitism can be provoked being a Non Muslim MNC.

20. Distribution and Retailer ship can be compromised for various reasons like they may go bankrupt or other factors could influence which will have direct impact on it.

21. Due to Political situation their top notch could migrate.

22. Strategic allies might seek for better opportunities.

EFE : THE EXTERNAL FACTOR EVALUATION MATRIX

Key External Factors Weight Ratings Weighted Score

OPPORTUNITIES

1. Could develop new products. 0.02 4 0.60

2. Local competitors have poor products. 0.03 3 0.45

3. Unrelated diversification. 0.03 1 0.10

4.Since pak has one of the least concentrated retail market in the world with state owned utility stores corporation holding

0.02 1 0.20

5.Around 0.3 % of the market. USC has given license to many Super Stores which is a seems to be a good oppurtunity as they can make alliances with them.

0.02 2 0.04

6. Aaround 40% tea is smuggled so that can be catered too by unliever thus a big market remain un-addressed.

0.03 2 0.06

8. Only urban area are familiar with shampoo there still awaits a long way to go. 0.04 3 0.12

9. End-users respond to new ideas. 0.03 2 0.06

10. Support core business economies. 0.02 1 0.02

11. Could seek better supplier deals. 0.02 3 0.06

12. Strategic acquisitions can help Unilever to expand its business. 0.02 4 0.08

13. Population continously increasing in Pakistan. 0.03 4 0.12

14. Huge potential in the rural areas of Pakistan 0.03 4 0.12

15. Big opportunity in food business. 0.02 4 0.08

16. Export opportunity of hlal foods to Foreign Countries. 0.04 3 0.12

17. Younger generation is becoming look and beauty conscious. 0.04 2 0.08

18. More awareness about hair protection and hair 0.04 2 0.08

cleanliness.

19. New soups can be introduced in winters. 0.03 1 0.03

20. E-commerce- Online Selling can be initiated. 0.03 3 0.09

21. Forward Integration can be done by launching unilever stores 0.04 2 0.08

22. Enough space available for launching of nutritious food items. 0.03 4 0.12

23. Like Pepsi's Lays and P&G's Prigle can Come up with Chips. 0.03 4 0.12

24. Pakistan is the third largest importer of tea in the world so huge potential in tea farming. 0.04 3 0.12

25.Huge oppurtunity is awaiting in detergent as about 50% of the population uses laundry soap for fabric washes.

0.04 3 0.12

THREATS

1. Legislation could impact. 0.02 2 0.04

2. Existing core business distribution risk. 0.02 2 0.04

4. Retention of key staff critical. 0.02 4 0.08

5. Could distract from core business. 0.01 1 0.01

6. Possible negative publicity. 0.01 2 0.02

8. Vulnerable to reactive attack by major competitors. 0.02 1 0.02

9. Health consciousness people may find an alternative low calorie diets and exercise. 0.01 3 0.03

10. Low GDP growth rate. 0.02 2 0.02

11. Deteriorating security conditions. 0.01 4 0.04

12. Energy shortage. 0.01 2 0.02

13. Smuggling of tea and its own international products. 0.02 3 0.06

14. Deteriorating value of Pakistani currency. 0.01 2 0.02

15. High taxation. 0.02 3 0.06

16. The local companies. 0.02 4 0.08

17. Price wars. 0.01 4 0.04

18. Competitors' aggressive marketing. 0.02 4 0.08

19. Religious Semitism can be provoked being a Non Muslim MNC. 0.02 3 0.06

20.Distribution and Retailer ship can be compromised for various reasons like they may go bankrupt or other factors could influence which will have direct impact on it.

0.02 2 0.04

21. Due to Political situation their top notch could migrate. 0.01 2 0.02

22. Strategic allies might seek for better opportunities. 0.01 2 0.02

Total Weighted Score 1.0 3.87

Total weighted score of EFE matrix of UNILEVER (3.87) shows strong response of company towards external factors.

CPM Matrix

Critical Success Factor WeightP&G Lakson Reckit

Rating Score Rating Score Rating Score

1. Advertising. 0.1 4 0.4 2 0.2 3 0.03

2. Product Quality. 0.09 4 0.36 2 0.18 3 0.27

3. Price. 0.1 3 0.3 4 0.04 3 0.03

4. Management. 0.04 4 0.16 3 0.12 4 0.16

5. Financial Position. 0.04 4 0.16 3 0.12 3 0.12

6. Customer Loyalty. 0.06 4 0.24 3 0.18 3 0.18

8. Marketing/Branding. 0.04 4 0.16 2 0.08 3 0.12

9. Market Share. 0.06 4 0.24 2 0.12 3 0.18

10. Infrastructure. 0.05 3 0.15 4 0.20 2 0.10

11. Technology. 0.06 4 0.24 2 0.12 4 0.24

12. Assets. 0.06 3 0.18 4 0.24 2 0.12

13. Distribution & Network. 0.03 4 0.12 2 0.06 4 0.12

14. Logistics and Supply Chain. 0.06 4 0.24 3 0.18 4 0.24

15. Potential Human Resource. 0.05 4 0.20 3 0.15 4 0.20

16. Consumer Feedback System. 0.04 3 0.12 2 0.08 2 0.08

17. Product Line 0.04 4 0.16 3 0.12 3 0.12

18. Strategic Alliances 0.04 3 0.12 3 0.12 3 0.12

19. Research & Development 0.04 4 0.16 2 0.08 4 0.16

Total Weighted Score 1.0 3.71 2.39 2.59

IFE Matrix

Key Internal Factors Weight Ratings Weighted Score

STRENGTHS

1. Customer’s Loyalty. 0.04 4 0.16

2. High dividend pay out. 0.03 4 0.12

3. International brand strength. 0.03 4 0.12

4. Market share of 41% 0.04 4 0.16

5. Strong financial position. 0.04 4 0.16

6. Have won more than 10 awards. 0.03 3 0.09

7. Oldest MNC of Asia 0.04 3 0.12

8. Highly Motivated Human Resource 0.06 4 0.24

9. Vast Distribution Networks. 0.05 4 0.20

10. Large range of brands to match the diversity of its consumers. 0.03 3 0.09

11. Committed to business ethics, safety, health, environment and community. 0.05 3 0.15

12. An Active participant in Social Service. 0.03 3 0.09

13. Latest state of the art facilities and technology. 0.03 4 0.12

14. Possess multiple international standard certifications like ISO 9001, ISO 14001, OHSAS 18001. 0.02 3 0.06

15. Well-established brand name. 0.04 4 0.16

16. Good social responsibility to shareholders and employees. 0.04 3 0.12

17. Established Raabta Consumer Careline for their consumers. 0.04 3 0.12

18. Spare manufacturing capacity. 0.03 3 0.09

19. Enjoying market edge of 41% in FMCG industry. UNILEVER is at number one in ice cream segment 0.03 4 0.12

WEAKNESSES

1. Strategic Alliance 0.02 1 0.02

2. Costly Products. 0.04 2 0.08

3. Discrimination among Employees. 0.03 1 0.03

4. Weak Web Presence. 0.01 1 0.01

5. Contradictions on website. 0.02 1 0.02

6. Only 1500 Employees are on their Payroll as per website. 0.02 1 0.02

7. Many protests have been conducted by labour Unions against Unilever Pakistan. 0.02 1 0.02

8. Accused of involvement in exploitive tactics against indirect employees. 0.01 1 0.01

9. Not able to manage factories on their own closing and outsourcing. 0.01 2 0.02

10.

As per IGI Security Report, The main focus has been investing in HPC business constituting over 60% of the total advertising expenditure. However, the growth in sales has lagged the growth in advertising spend.

0.02 2 0.04

11.

Heavy reliance on casual, temporary and agency workers, workers whose contracts bring them no job security and inferior pay and benefits to those formally employed by Unilever, is the rule throughout the company's operations.

0.02 1 0.02

12. Recently, ULEVER has closed down the Karachi tea factory in view of low demand and sales volumes. 0.01 2 0.02

13. Using Nameless Factories for Prduction as in the case of Tea, in Karachi. 0.01 2 0.02

14.Unilever systematically violates worker and trade union rights through direct attacks on trade unionists

0.02 1 0.02

15. Indirect Distribution Network. 0.01 1 0.01

16. Had to sale dalda. 0.02 2 0.02

17. Operational Complexity. 0.01 1 0.01

Total Weighted Score 1.0 2.88

The score 2.88 shows that company has solid internal position, its strengths are overcoming the weaknesses.

QSPM MATRIX

Market Development Product Development

External Factors Weight AttractiveScore Total Attractive

Score Total

Opportunities1. Could develop new products. 0.04 --- --- 4 0.16

2. Local competitors have poor products. 0.03 3 0.09 2 ---

3. Related diversification. 0.03 --- --- 2 0.06

4.Around 40% tea is smuggled so that can be catered too by unilever thus a big market remains un-addressed.

0.03 4 0.12 1 0.03

5. Only urban areas are familiar with 0.04 4 0.16 --- ---

shampoo there still awaits a long way to go.

6. End-users respond to new ideas. 0.03 3 0.09 2 0.06

8. Could seek better supplier deals. 0.04 4 0.16 4 0.16

9. Strategic acquisitions can help Unilever to expand its business.

0.03 4 0.12 3 0.09

10. Population continuously increasing in Pakistan.

0.04 4 0.16 3 0.12

11. Huge potential in the rural areas of Pakistan

0.04 4 0.16 3 0.12

12. Big opportunity in food business. 0.03 2 0.06 4 0.12

13. Export opportunity of halal foods to Foreign Countries.

0.04 3 0.12 4 0.16

14. Younger generation is becoming look and beauty conscious.

0.04 4 0.16 4 0.16

15. More awareness about hair protection and hair cleanliness.

0.04 4 0.16 3 0.12

16. New soups can be introduced in winters. 0.02 --- --- 4 0.08

17. E-commerce- Online Selling can be initiated.

0.02 4 0.08 --- ---

18. Forward Integration can be done by launching unilever stores

0.02 4 0.08 ----

19. Enough space available for launching of nutritious food items.

0.03 3 0.09 3 0.09

20. Like Pepsi's Lays and P&G's Prigle can Come up with Chips.

0.04 --- --- 4 0.16

21.Pakistan is the third largest importer of tea in the world so huge potential in tea farming.

0.03 4 0.12 --- ---

22.Huge oppurtunity is awaiting in detergent as about 50% of the population uses laundry soap for fabric washes.

0.02 4 0.08 1 0.02

Threats

1. Legislation could impact. 0.02 1 0.02 --- ---

2. Existing core business distribution risk. 0.03 4 0.12 --- ---

4. Retention of key staff critical. 0.02 3 0.06 --- ---

6. Possible negative publicity. 0.02 4 0.08 --- ---

8. Vulnerable to reactive attack by major competitors.

0.01 1 0.01 --- ---

9. Health consciousness people may find an alternative low calorie diets and exercise.

0.03 4 0.12 3 0.09

10. Low GDP growth rate. 0.03 3 0.09 3 0.09

11. Deteriorating security conditions. 0.03 3 0.09 3 0.09

12. Energy shortage. 0.01 1 0.01 --- ---

13. Smuggling of tea and its own international products.

0.02 2 0.04 --- ---

15. High taxation. 0.02 2 0.04 2 0.04

16. The local companies. 0.04 4 0.16 3 0.12

17. Price wars. 0.03 4 0.12 4 0.12

18. Competitors' aggressive marketing. 0.02 4 0.08 2 0.08

19. Religious Semitism can be provoked being a Non Muslim MNC.

0.02 2 0.04 2 0.04

20.

Distribution and Retailer ship can be compromised for various reasons like they may go bankrupt or other factors could influence which will have direct impact on it.

0.02 3 0.06 --- ---

21. Due to Political situation their top notch could migrate.

0.02 2 0.04 --- ---

Total 1.0 4.55 2.38

Internal Factors

Strengths1. Customer’s Loyalty. 0.06 4 0.24 4 0.24

2. High dividend pay out. 0.03 2 0.06 --- 0.06

3. International brand strength. 0.05 4 0.20 3 0.15

5. Strong financial position. 0.06 4 0.24 4 0.24

6. Highly Motivated Human Resource 0.05 4 0.204

0.20

7. Vast Distribution Networks. 0.06 4 0.24 4 0.24

8. Large range of brands to match the diversity of its consumers.

0.06 4 0.24 3 0.24

9. Committed to business ethics, safety, health, environment and community.

0.03 2 0.06 2 0.06

10. Latest state of the art facilities and technology.

0.04 4 0.16 3 0.12

11.Possess multiple international standard certifications like ISO 9001, ISO 14001, OHSAS 18001.

0.04 4 0.16 3 0.12

12. Well-established brand name. 0.05 4 0.20 3 0.15

13. Established Raabta Consumer Careline for their consumers.

0.05 4 0.20 3 0.15

14. Spare manufacturing capacity. 0.04 3 0.12 3 0.12

Weakness1. Strategic Alliance 0.04 3 0.12 --- ---

2. Costly Products. 0.04 3 0.12 --- ---

3. Discrimination among Employees. 0.03 2 0.06 --- ---

4. Only 1500 Employees are on their Payroll as per website. 0.03 2 0.06 --- ---

5. Many protests have been conducted by labour Unions against Unilever Pakistan. 0.02 1 0.02 --- ---

6. Accused of involvement in exploitive tactics against indirect employees. 0.02 1 0.02 --- ---

8. Not able to manage factories on their own closing and outsourcing. 0.04 3 0.12 2 0.08

9.

As per IGI Security Report, The main focus has been investing in HPC business constituting over 60% of the total advertising expenditure. However, the growth in sales has lagged the growth in advertising spend.

0.04

3 0.12 --- ---

10.

Heavy reliance on casual, temporary and agency workers, workers whose contracts bring them no job security and inferior pay and benefits to those formally employed by Unilever, is the rule throughout the company's operations.

0.03

2 0.06 --- ---

11.Recently, ULEVER has closed down the Karachi tea factory in view of low demand and sales volumes.

0.032 0.06 --- ---

12. Indirect Distribution Network. 0.03 2 0.06 --- ---

13. Operational Complexity. 0.04 3 0.12 1 0.04

Total 1.0 3.26 2.21

Grand Total 7.81 4.59

BCG MATRIX

SWOT MATRIX

Proposed Strategies:1. UNILEVER can capture untapped rural markets and markets of developing nations by using its state of the art facilities &technology. International brand strength is plus point which will be proved helpful while positioning.

2. UNILEVER’s

Commitment to business ethics, safety, health, environment and community can be proved helpful in order to satisfy hygiene conscious customers. UNILEVER should focus more on quality of goods.

3. Unrelated diversification is a risky decision to be taken. Loyal customer is the major power to cope up with after effects of this decision.

4. Customers in rural areas and in developing countries usually have low income level. UNILEVER should reduce its costs in order to capture that uncovered markets effectively.

5. UNILEVER can use its international brand strength and wide network of retail outlets in order to compete with organized and unorganized players of market

.6.Strategic alliance is showing the weakness of UNILEVER in particularly manufacturing area which the competitors do not hold. UNILEVER should its production capacity in order to compete in market and to reduce competitor’s threat.

7. If UNILEVER can obtain cheaper raw material, it can reduce cost of goods manufactured.