College of Administrative and Financial Sciences Assignment 3 Deadline: /04/2021 @ 23:59 Course Name: Strategic Management Student’s Name: Course Code: MGT 401 Student’s ID Number: Semester: II CRN: Academic Year: 1441/1442 H For Instructor’s Use only Instructor’s Name: Students’ Grade: …. Out of 5 Level of Marks: High/Middle/Low Instructions – PLEASE READ THEM CAREFULLY • The Assignment must be submitted on Blackboard (WORD format only) via allocated folder. • Assignments submitted through email will not be accepted. • Students are advised to make their work clear and well presented, marks may be reduced for poor presentation. This includes filling your information on the cover page. • Students must mention question number clearly in their answer. • Late submission will NOT be accepted. • Avoid plagiarism, the work should be in your own words, copying from students or other resources without proper referencing will result in ZERO marks. No exceptions. • All answered must be typed using Times New Roman (size 12, double-spaced) font. No pictures containing text will be accepted and will be considered plagiarism). • Submissions without this cover page will NOT be accepted. Assignment 3: Part 3 of project Learning outcomes: Describe the different issues related to environmental scanning, strategy formulation, and strategy implementation in diversified organizations (CLO2) 2. Distinguish between different types and levels of strategy and strategy implementation (CLO4) 3. Communicate issues, results and recommendations coherently, and effectively regarding appropriate strategies for different situations (CLO6) 1. Assignment Questions (5 Marks) Consider the same company ‘X’ that you have already used in assignments 1& 2 and answer the following questions. 1. Evaluate the performance of the main activities of your selected company. What type(s) of criteria do you use to evaluate this performance? (1.5 marks) 2. What type(s) of control of employees and production processes is/are used by your selected company? Justify(1 mark) 3. How does the corporation manage the environmental risks? (1 mark) 4. Evaluate the competitive advantage of the corporation. Suggest some recommendations in order to to improve it. (1.5 marks) Note. To answer the above questions, it is mandatory to use the terminologies discussed in your course. End Answers: College of Administrative and Financial Sciences Assignment 1 Deadline: 06/03/2021 @ 23:59 Course Name: Strategic Management Student’s Name: Course Code: MGT 401 Student’s ID Number: Semester: I CRN: Academic Year: 1441/1442 H For Instructor’s Use only Instructor’s Name: Students’ Grade: Marks Obtained/Out of 5 Inst – Level of Marks: High/Middle/Low PLEREM CAREFULLY • The Assignment must be submitted on Blackboard (WORD format only) via allocated folder. • Assignments submitted through email will not be accepted. • Students are advised to make their work clear and well presented, marks may be reduced for poor presentation. This includes filling your information on the cover page. • Students must mention question number clearly in their answer. • Late submission will NOT be accepted. • Avoid plagiarism, the work should be in your own words, copying from students or other resources without proper referencing will result in ZERO marks. No exceptions. • All answered must be typed using Times New Roman (size 12, double-spaced) font. No pictures containing text will be accepted and will be considered plagiarism). • Submissions without this cover page will NOT be accepted. Structure of the project The 3 assignments of this course will be parts of a project, which aims to study the four basic elements of strategic management of the company ‘X’ from your choice. It is structured as follow: - Part 1: Assignment 1= Environmental scanning & strategy formulation. - Part 2: Assignment 2= Strategy implementation. - Part 3: Assignment 3= Evaluation and control. Description of the company ‘X’ - It is a company from your choice; - From real national or international market; - It is publicly traded company; - Produces and commercializes more than one product; - Sufficient information about the strategies of the company, its functions and product lines are available; - This company should have at least one partnership with other company (es) (alliances, joint venture, arrangement…). Note. The selected company must meet the above criteria. If you face any ambiguity regarding the choice of the corporation, kindly feel free to ask more clarification from your instructor Assignment 1: Part 1 of project Environmental scanning & strategy formulation Learning outcomes: 1. Understand the basic concepts and terminology used in Strategic Management. (Lo 1.2) 2. Identify opportunities and threats as well as strengths and weakness in the operating environment of hypothetical and real-world organizations (Lo 2.9) 3. Understand issues related to strategic competitive advantage in organizations (Lo 2.2) 4. Identify appropriate strategies for different situations (Lo 3.1). Assignment Questions (5 Marks) 1. Briefly present your selected company (name, industry, nationality, location, size, activities, products…) (Max 200 words). (0.5 mark) 2. Determine the opportunities, threats, strengths and weaknesses of your selected company by completing the SWOT matrix in the answer sheet. (1 mark) 3. Does your selected company have social responsibility? If yes, discuss its impact on competitive advantage of the corporation. (Max 400 words) (1 mark) 4. Based on the figure 4.3 (Ch4-slide no 18) and the textbook text relative to Porter’s Five forces of competition framework, assess the power of the buyers, suppliers and substitutes of your chosen company. How formidable are the barriers to entry and how intense is the rivalry among existing firms? ( 2 marks) 5. What is the competitive strategy used by your selected company? Justify. (0.5 mark) Answers: 1. Briefly present your selected company (name, industry, nationality, location, size, activities, products…) (Max 200 words). (0.5 mark) Answer Unilever PLC is a public limited company that was founded in 1929. It is headquartered in London, England. It began through the merging of two companies i.e Lever Brothers and Margarine Unie. (“Unilever”, 2021). It has grown exponentially over the years and spread across continents to so many countries including; Kenya, Angola, Burundi, Bangladesh, Egypt, Iran, Iraq, Canada, and Asian countries such as China among others. It is a multinational company that deals with consumer goods offering a lasting solution to its customers across the world. Unilever’s main goal is to increasingly be the most innovative company, supplying enough of its products to all households across the world. Unilever’s products can be classified into three brands; Beauty and personal care. Examples of well-known products under this category are; Dove, Fair and Lovely, Lifebuoy, Rexona, Axe, and Closeup among others. Homecare; Omo, Comfort, Sunlight, Radiant, Domestos, etc. Food and Refreshments; Arisco, Magnum, Lipton, Blue Band, Unilever food solutions, etc. 2. Determine the opportunities, threats, strengths and weaknesses of your selected company by completing the SWOT matrix in the answer sheet. (1 mark) Opportunities 1. Unilever has the opportunity to modify its existing products and still make enough profits. 2. Unilever has the opportunity to produce different products to fit society’s needs i.e healthwise and agewise. Threats 1. It faces stiff competition from rival companies. 2. Unilever’s products can be easily imitated. 3. It faces a threat of new companies 3. Partnerships. Unilever can partner with companies entering the same industry. in the same industry and other related industries and work together to maximize profits and customer satisfaction. Strengths 1. Unilever has very strong brands which it has established over the years. 2. Product diversification. It does not just produce a single type of product. 3. Unilever enjoys economies of scale as it is known for large-scale production. Weaknesses 1. Unilever’s products can be easily imitated by other companies and these counterfeits may end up ruining its brand name. 2. Unilever doesn’t get opinions from the final consumer since it relies on retailers. 3. Does your selected company have social responsibility? If yes, discuss its impact on competitive advantage of the corporation. (Max 400 words) (1 mark) Answer Social responsibility means ways in which a company operates in a manner that does not just benefit the shareholders, but also the society and the environment(Wheelen et al., 2015). Different businesses exercise social responsibility in different dimensions. For example, some volunteer to have a tree planting day, cleaning the compound, hiring local talents, campaigns to create health awareness, etc. Some of these corporate ways however are depicted in the internal ways of the business operation. For example, a factory that dumps waste in the right dumping sights to reduce pollution has exercised social responsibility by protecting the environment. According to Wheelen et al.,(2015), a company that exercises Corporate Social Responsibility(CSR) is likely to gain a competitive advantage in the market. Unilever exercises social responsibility in several ways. This has seen it grow even more and outperform its competitors. These are some of the ways it exercises CSR and the impact of those practices on the general productivity of the business. (“Unilever”, 2000). Investing in people. Unilever offers training and support to its employees. Remuneration is done according to labor standards and the rightful working conditions are met. Its employees have trusted health insurance covers that cover their families. In some countries, Unilever reaches out to the families of its employees offering the necessary support. Both the training and the social support give their employees great confidence and they become more productive in the workplace. This has seen Unilever rise above its competitors. Quality products that meet the consumers’ everyday needs. Unilever deals with consumer goods, from homecare to foodstuffs. Their products are known to be of high quality. Any new product to be released to the market is cleared by the regulatory bodies. Consumers have gained great trust in its products over the years. The products are tailored to fit different groups of customers all over the world. For example, Vaseline, a jelly for skincare is available in the unperfumed form meant for kids. Unilever’s brands have therefore been ranked top compared to those of competitors. Risk management in the workplace. Accidents may occur in any place of work. There are risks of fires, road accidents, risk of machine failure among others. With this knowledge, Unilever is equipped with the necessary tools. There are fire extinguishers in every factory, and the buildings are well ventilated. First aid kits are available that may assist employees in case of an emergency. Transport vehicles are checked for any mechanical issues before leaving to reduce accidents hence winning society’s trust. Unilever values diversity and that’s why it has branches in about 150 countries (Unilever, 2000). Its employees are from different nationalities and this means they have integrated and embraced the beauty of different cultures. The senior-most managers in Unilever are from different ethnic groups. When people from different walks of life with different cultures and experiences work together, they impact productivity in a great way. Protecting the environment. Unilever in partnership with other agencies has been involved in programs aimed at maintaining the beauty of the environment. For example, rehabilitation of wasteland, and building rural wells to help communities engage in agricultural activities. The products of Unilever too have prescribed instructions on how to dispose of the packing papers or containers. This is aimed at keeping the environment clean. This sends a good image and people start exploring their brands increasing their sales. 4. Based on the figure 4.3 (Ch4-slide no 18) and the textbook text relative to Porter’s Five forces of competition framework, assess the power of the buyers, suppliers and substitutes of your chosen company. How formidable are the barriers to entry and how intense is the rivalry among existing firms? ( 2 marks) Answer Wheelen et al. (2015) list Porter’s five forces as; leverage of suppliers, superior or lower-cost substitute products, buyers’ influence, competition among existing companies, and openness to new competitors. Unilever has to deal with these forces in its daily operations. Unilever’s buyers are retailers who buy in bulk to sell to the final consumer. Because the profit margins expected from these household goods are low, retailers have high bargaining power and push to have the prices cut. Unilever rises above this challenge by setting standard prices and even with low price cuts, they still make profits as they sell on a large scale. Unilever’s suppliers are a highly motivated lot with the interests of the company at heart. They are disciplined in the sense that, they deliver the products to the customers in good condition and for the set prices. Any disputes with customers are handled professionally. This ensures customers do not go for other substitute products or other suppliers. There has been stiff competition from other companies e.g. Johnson & Johnson among others. Unilever however continues to expand because of its well-known brands and continued innovation. There are threats of new entrants but Unilever has shielded itself from such by opening branches across the world. This diversity is what intimidates its entrants. 5. What is the competitive strategy used by your selected company? Justify. (0.5 mark) Answer Product diversification. Unilever does not just offer a single product. For example, for skincare products, there are several types from which a customer can choose one that contents them. They can choose perfumed or unperfumed, for dry skin or oily skin, etc. this has seen Unilever's products become more preferred to those of competitors. Market penetration. Unilever has established many branches in different parts of the world. This means even in the local most areas, its products are available. It has embraced digital marketing to increase its brand awareness all over and this has increased its productivity compared to competing firms. Corporate Social Responsibility. Engaging in activities aimed at not just making profits but impacting the society and the environment has seen Unilever's products get preferred since the community has trust in the company. The company uses the goodwill of top officials (Wheelen et al., 2015) to make its brand well-known. Quality products for standard costs. Although there are cases of firms reducing product quality to meet a sudden increase in demand, Unilever maintains its product quality at all times. Customers prefer Unilever's products to their substitutes which are degraded in quality. References Unilever. (2000). Unilever’s approach to corporate social responsibility. Retrieved February 24, 2021, from https://www.unilever.com/Images/2000-social-review-of-1999data_tcm244-409696_en.pdf Unilever. (2021, January 17). In Wikipedia. https://en.wikipedia.org/w/index.php?title=Unilever&oldid=1001016190 Wheelen, T. L., Hunger, J.D., Hoffman, A. N., & Bamford, C. E. (2015). Strategic management and business policy: Globalization, innovation, and sustainability(14th ed.). Pearson Education Limited. Assignment 2: Part 2 of project Learning outcomes: Describe the different issues related to environmental scanning, strategy formulation, and strategy implementation in diversified organizations (CLO2) 2. Explain the contribution of functional, business and corporate strategies in the competitive advantage of the organization. (CLO3) 3. Distinguish between different types and levels of strategy and strategy implementation (CLO4) 4. Communicate issues, results and recommendations coherently, and effectively regarding appropriate strategies for different situations (CLO6) 1. Assignment Questions (5 Marks) Consider the same company ‘X’ that you have already used in assignment 1 and answer the following questions 1. Describe the roles of directional, marketing, operations and human resource strategies in the overall well-being of your selected company. (2 marks) Answer The pricing strategy of Unilever entails price depending upon markets of consumer good factors. For instance: The company uses the 'pricing' of its competitors to understand the price appropriation. Moreover, it promotes the advantages of the products using multiple channels of communication of the brand. Likewise, Unilever's human resource management strategies have proved to be very effective by being one of the attractive employers. Unilever acknowledges the fact that its efficiency is based on the effectiveness of its people globally. Therefore the company emphasis immense significance on its employee motivation. At Unilever, the operations team helps develop processes and procedures for supporting the organization to achieve higher performance in ten strategic decisions related to its productivity; it also supports financial performance. Therefore, according to Steve Smith (2009), it is significant for the company's operation management to address concerns in the areas of strategic decisions to maintain high productivity. 2. Classify the products of your selected company based on the BCG matrix. (1 mark) Answer Cash Cow HELLMANN’S & MARMITE SLIM-FAST & RAGU Star DOVE & LIPTON OMO & T2 HIGH LOW Dog Problem Child LOW HIGH 3. Describe at least one partnership that your selected corporation has with other company (es). Is it successful? Justify. (1mark) Answer Unilever’s partnership with Alibaba is successful because the Cloud Solution of Alibaba supports Unilever's optimized brand experience for the journey of consumers' purchasing through Unilever's online stores in Tmall and Taobao. Also, Alibaba Cloud's data intelligence easily gets translated into consumers' insight: required for Unilever for expanding its products offering for customer requirements. All these also benefit the supply chain of Unilever together with processing its route to the market ("Unilever and Alibaba launch AIpowered closed-loop recycling system in 'Waste Free World' initiative | Greenbiz", 2021). 4. Describe the structure of your selected company. (1 mark) Answer Unilever, since its formation in 1930, is owned through two different listed companies; a Dutch NV and UK PLC ("“Shanks v. Unilever Plc & Ors”", 2017). However, Unilever PLC and Unilever NV and their group companies have been operating as one economic entity. References “Shanks v. Unilever Plc & Ors”. (2017), 48(4), 466-467. https://doi.org/10.1007/s40319-0170592-z Steve Smith, W. (2009). Vitality in business: executing a new strategy at Unilever. Journal Of Business Strategy, 30(4), 31-41. https://doi.org/10.1108/02756660910972631 Unilever and Alibaba launch AI-powered closed-loop recycling system in 'Waste Free World' initiative | Greenbiz. Greenbiz.com. (2021). Retrieved 18 March 2021, from https://www.greenbiz.com/article/unilever-and-alibaba-launch-ai-powered-closed-looprecycling-system-waste-free-world.
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