Strategic Planning
Strategic Planning
For the purpose of this report of ‘Strategic Planning’ for the Ed-excel
Level 7 Extended Diploma in Strategic Management & Leadership I have
selected Unilever United Arab Emirates Ltd.
The company had a turnover of Rs. 23.3 bn (Euro 309 mn) in 2008, 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 Middle East.
http://www.unileverme.com
TASK 1
George (1997) Following is the five step model to analysis effects of business plan,
develop future strategic options and options to form basis of future organizational
strategy. This five step model was presented.
1. Assess the external context, in terms of opportunities and threats (e.g. from
environmental scan, institutiogramme, coverage matrix and/or stakeholder analysis)
4. Rate the options in terms of relevance to (note that this is only a preliminary
selection) in the SOP matrix
5. Follow-up
Customers expect high quality and benefit from product or service they
receive in return of what they spent on it.
Employees expects good pay and conditions, good leadership and job security
but are free to withdraw their labour if they have a legitimate grievance or may
seek employment elsewhere if the prospects more favourable.
Suppliers expects payment on time, repeat orders and respect but may refuse
to supply or cease supply if the terms and conditions of sale are not honoured.
This proposed structure will serve the Unilever UAE’s end markets and because the
workflow interdependencies are the important ones to some extent and the
organization cannot easily handle them by standardization adopting this structure will
tend to favour the market bases for grouping in order to encourage mutual
adjustments and direct supervision.
By adopting the proposed organizational structure the Unilever UAE can take
advantage of the followings key benefits;
The four directional channels carrying information between the management unit, the
operation, and the environment must each have a higher capacity to transmit a given
amount of information relevant to variety selection in a given time than the
originating sub system has to generate it in that time. Wherever the information
carried on a channel capable of distinguishing a given variety crosses a boundary, it
undergoes transduction; the variety of the transducer must be at least equivalent to the
variety of the channel.
Further to that to review the potential options for the management strategy and
organizational structure we must make sure that the best possible strategy clearly
considers the age and size of the organization, technical systems, environment and the
governing framework. Since the Unilever UAE has a long existence history and it is
operating at a multinational level hence the proposed management strategy should
more elaborate its structure; that is’ the more specialized its jobs and units and the
more developed its administrative components.
For the organizational development, Unilever UAE should often undergo significant
change at various points in their development. Change management entails thoughtful
planning and sensitive implementation, and all the above. Consultation with
involvement of people affected by the changes. If the firm force change on people
normally problems arise. Change must be realistic, achievable and measurable. These
aspects are especially relevant to managing personal change. Besides that following
dissemination processes may also be helpful to gain commitment;
Belonging — managers should aim to be role models who take pride in what
they and their co-workers achieve together.
The Unilever UAE comprises several departmental units. Their ethics part is very
important. In the case of Unilever UAE organization, they should follow ethics for
both individuals and public. As a production firm it should follow social
responsibility. Where, it should ensure that they don’t make harmful process
maintaining against environment. Even it has environment effecting wastages or
garbage it should recycle or dispose without harmful. They operate several units.
They bring changes in the organization. But change arrive, they have responsibility to
job secure of employees. Also there are pressures in management level. Key element
of pressure is dissatisfaction of clients. It may cause to lower revenue and higher cost
for the firm. Even if they face increased cost they should follow customer loyalty and
pay tax to government properly. Those are key roles in ethical background of
Unilever. There customer dissatisfaction has been increasing with its product/ service.
As a business organization it should satisfy its clients’ needs.
Environmental background;
Organizational environment consist of all factors that in one way or another are
affected by the organizational decision.
Unilever Organizational environment refers to the forces that can make an impact.
Forces made up opportunities and threats. Organizations dose not exist in isolation. It
works with the overall environment. These can be divided into two main parts as,
Internal Environment and External Environment
Internal Environment
External Environment
It consists of all the outside institutions and forces that have an actual or potential
interest or impact on the organization's ability to achieve its objectives:
Competitive
Technological
Political
Legal
Social background:
Here they introducing computer technology for minimise the costs for production. On
the other hand they intend to redundancy the employees’ volume. Where, it causes to
poor staff morale with the change of technology and minimum job secure to
employees.
Business background;
As a business organization, the Unilever UAE should identify the customer needs and
wants before supply its products. If they did it well the customer will satisfy and
retain with them. But here the customer dissatisfaction is being increased in this case.
So they need greater strategy to satisfy the customer.
Ref; Karen Sobel Lojeski, Uniting the Virtual Workforce, 2008, page 179-181
(B) DEVELOP APPROPRIATE VISION AND MISSION STATEMENTS FOR
AN ORGANIZATION.
A vision statement gives a broad, aspiration image of the future that an organization is
aiming to achieve. Vision statement is more about the organizational values rather
than bottom line measures. Whereas a mission statement is a brief summary of a
couple of sentences that provides a bird eye view of the organizational background
and purpose of existence.
To develop a vision and mission statement of the Unilever UAE first of all I
investigated into the idea that will make Unilever stand out from its competitors, then
I indentified the key measures of the success, combined these ideas and measures into
a tangible and measurable goal and last of all refined the words until the concise and
precise statements were made including all the elements of its definition.
Ref; Karen Sobel Lojeski, Uniting the Virtual Workforce, 2008, page 179
‘‘Validity is at the heart of everything we do. It’s in our brands, our people and our
approach to business’’.
‘‘Unilever’s products touch the lives of over 2 billion people everyday whether that’s
through feeling great because they’ve got shiny hair and a brilliant smile, keeping
their homes fresh and clean, or by enjoying a great cup of tea, satisfying meal or
healthy snack’’.
(C) PRODUCE AGREED FUTURE MANAGEMENT OBJECTIVES FOR AN
ORGANIZATION.
Some management strategies might succeed better than others. It depends upon the
three key success criteria which can be used to evaluate the viability of strategic
options. These three key elements of evaluating the strategic options are suitability,
acceptability and feasibility.
Suitability; is concerned with whether a strategy/objectives address the key issues that
have been identified in understanding the strategic position of the organization. In
particular this requires an assessment of the extent to which any strategic option
would wit with key drivers and expected changes in the environment, exploit strategic
capabilities and be appropriate in the context of stakeholder expectations and
influence. There are number of tools that can be used to access the suitability of
strategic options, I-e: TOWS matrix, relative suitability of options that matters,
ranking strategic options, decision tree and scenarios etc.
Acceptability; It is concerned with the expected performance outcomes of a strategy.
These can be of three types; returns, risk and stake holders reactions. Returns are the
benefits which stake holders are expected to receive from the strategy which may be
calculated by financial analysis and cost benefit analysis etc. Risk can be accessed
similarly by conducting sensitivity analysis, financial ratios, share holders value
analysis and reactions etc.
Feasibility; this is concerned with whether an organization has the resources and
competence to deliver a strategy. A number of approaches can be used to understand
feasibility; I-e: financial feasibility, resource deployment etc.
Over half of our worldwide sales are generated by our Foods brands, which
include Knorr, Flora, Hellmann's, Lipton, Slim·Fast, Bertolli and Walls.
Unilever UAE Foods has annual sales of almost £900 million and employs 2 000
people at 11 locations around the UAE.
Unilever has 400 brands globally. In the UAE we have over 35 brands covering
foods, home and personal care.
In Ireland, we hold the no.1 or no.2 position in our nine leading categories (ice
cream, tea, savoury, spreads, dressings, laundry, household cleaning, deodorants
and skin cleansing).
Every day, 150 million people choose our brands to feed their families and to
clean themselves and their homes.
35 million cups of PG tips are drunk every day - enough to fill six Olympic-sized
swimming pools.
Launched in 1909, Persil is the UK's leading and longest established washing
Powder.
Poor management.
High labour turnover.
Lack of compliance with the regional legislation.
Health & safety issues at Dubai production plan.
Centralized recruitment process for management that lacks regional
understanding.
(B) CONSTRUCT AN AGREED STRATEGY PLAN THAT INCLUDES
RESOURCES IMPLICATION.
Human and other Capacity Requirements – The human capacity and skills required
to implement the strategy, current and potential sources of these resources. Also, other
capacity needs required such as internal systems, management structures, engaged
partners and Network NOs and POs, and a supportive legal framework etc.
Risk Assessment and Mitigation Strategy – What risks exist and how they can be
addressed.
Estimate of Project Lifespan, Sustainability, and Exit Strategy – How long the
strategy will stand implemented, after how long and why strategy will require
modifications (if feasible to do so), and how it will ensure sustainability of the
corporate objective achievements.
Kindly refer Task 5-E, where monitoring and evaluation process has been discussed
in detail.
Following is the time table for the strategic planning implementation for the Unilever
UAE stating the starting and finishing date;
No. ACTION START FINISH
1 Development of Guidance and 1November 7 December
Pro Forma for Impact 2010 2010
Assessment Initial Screening for
the strategic change.
2 Verbal report to board of 8 December 8 December
directors to outline the proposals 2010 2010
for the way forward and to
obtain their views regarding the
proposed strategy.
3 Update and brief on the agreed 5 January 2011 5 January 2011
proposals
4 Briefing Sessions for Heads of 14 January 14 January 2011
Service and regional Managers. 2011
5 Carry out implementing the 17 January 4 April 2011
agreed strategy and prioritisation 2011
for all corporate and task
specific functions, policies and
procedures.
6 Reviewing and benchmarking 5 April 2011 13 April 2011
the desired and actual status of
strategy implementation.
7 Completion of strategy 30 April 2011 30 April 2011
implementation.
8 Consultation 1 May 2011 3 May 2011
9 Monitor & Review 3 May 2011 31 March 2012
10 Annual Review 1 April 2012 15 April 2012
(E) DESIGN MONITORING AND EVALUATION SYSTEMS FOR THE
IMPLEMENTATION OF A STRATEFY PLAN IN AN ORGANIZATION;
Monitoring and evaluating the planning activities and status of implementation of the
plan is -- for many organizations -- as important as identifying strategic issues and
goals. One advantage of monitoring and evaluation is to ensure that the organization
is following the direction established during strategic planning. I would like to
suggest Henry Mintzberg’s ‘six basic monitoring & evaluation mechanisms’ for
Unilever UAE. According to this model the monitoring and evaluation of any
strategic plan can be conducted by following the six formal basis steps that ultimately
makes sure that objectives are being oriented and it has an ability to identify any
deviation from the desired outcome. Evaluation can be achieved by standardization in
effect, automatically, by virtue of standards that predetermine what people do and so
ensure that their work is coordinated.
1. DIRECT SUPERVISION; direct supervision in which one person coordinates
by giving orders to others, tends to come into play after a certain number of
people must work together. Thus, fifteen people in a war canoe cannot
coordinate by mutual adjustment; they need a leader who, by virtue of
instructions, coordinates their work, much as a football team requires a
quarterback to call the plays
REFERENCES
Karen Sobel Lojeski, Uniting the Virtual Workforce, 2008, pages 204
Keith E. Thuley, Work and society, Labour and Leadership in East Asia,