Company background and mission statement
Unilever is a global company that can trace its origins to 1929, when a merger between a Dutch margarine manufacturer and a British soap maker was
negotiated (Jones, 2002). Given the distinct sectors in which the two organisations were located, the merger was considered somewhat of a
‘curiosity’ (Jones, 2002, online), but it set the stage for a multinational corporation producing a wide portfolio of goods. Some of the
world’s most recognised brands are produced by the company, including Surf, Lipton, Dove, Lynx, Magnum and Hellmann’s. Today, Unilever is one
of Europe’s largest companies, and in terms of sales, it is the third-largest consumer goods firm in the world, after Nestle and Procter and Gamble
(Thain and Bradley, 2014). The company has been floated twice, and is a constituent of the FTSE 100 Index and the AEX Index. The stated aim of the company
is to “provide people the world over with products that are good for them and good for others” (Unilever, 2014, online).
Strategic Audit
A strategic audit comprises a systematic and comprehensive evaluation of a company’s business environment and internal assets. There are two key
elements to the audit: the external environment and the internal environment. The external environment identifies issues concerned with customers and
competition, and examines the social, economic, technological, environmental political and legal elements impacting the business. A typical tool used at
this stage is the PESTLE analysis. The internal analysis focuses on the resources the company possesses, such as the product distribution, product
portfolio, sales and profit margins. A typical tool used at this stage is the SWOT analysis, in which the strengths and weaknesses, and the advantages and
disadvantages of a company compared to its competitors are listed. Below, these tools are in turn applied to Unilever.
The External Environment
PESTLE analysis
The PESTLE framework below analyses the political, economic, social, technological, legal and environmental dynamics of the environment in which Unilever
operates.
Political
Economic
Social
Technological
Legal
Environmental
The Internal Environment
SWOT analysis
The second element of a strategic audit is an analysis of the internal mechanisms of the business. This part of the paper uses a SWOT analysis to identify
and critically examine the strengths, weaknesses, opportunities and threats facing Unilever
Strengths
Weaknesses
Threats
Opportunities
Conclusion
Unilever is a unique company. The firm is dual listed, co-headquartered in two of Europe’s wealthiest cities and it offers the market a vast and very
broad range of products. This strategic audit has shown that while the company is operating in a turbulent business environment, it is managing to perform
well, both in terms of sales and growth. Despite the company’s strengths, there are some external threats posed by market developments, customer
attitudes and the actions of its key competitors. The company leadership will need to monitor these aspects if Unilever is to meet its objective to become
the largest consumables multinational company in the world.
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