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Introduction: Organizational Behavior and Global Strategy
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Organizational psychology studies how individuals, as well as teams, interact inside a company in order to shape its environment and efficiency. The attempts of a business to gain an advantage in the marketplace globally are included in its overall approach, which also takes into account allocation of resources, expanding the market, and economic and cultural considerations. Contemporary businesses attempting to navigate the multifaceted nature of modern connected and competitive worldwide marketplace need to concentrate on the merging of company culture and international planning. The task at hand explores whether the theories of business psychology can direct and counsel successful international approaches by digging into the connection of both these fields. The key objective is to investigate the connection between business conduct and the decision-making processes necessary for sustainability on a worldwide basis.
Unilever, an international household goods firm, is an established brand in the worldwide marketplace, known for its wide range of offerings, steadfast dedication to sustainability and common activities. Unilever was created in 1930 as the result of the union of the Dutch Margarine Unite and the British soap company Lever Brothers. Since that time, Unilever has developed into an important global corporation. The goods offered by Unilever fall under a number of areas, including food and drink, personal care, residential care and refreshment. The company meets the requirements and tastes of consumers all around the world with well-known brands including Dove, Knorr as well as Lipton (Unilever, 2023). Its main goal is to raise the standard of living while guaranteeing a sustainable future. This goal is closely tied to Unilever's Healthy Living Plan, that sets forth challenging goals for strengthening lives, minimizing environmental impact, and encouraging moral business practices.
The company's mission, "Making Sustainable Living Commonplace," is apparent in its commitment to incorporating sustainability into all facets of its operations. Unilever aims to set an example for creating a society where ethical business practices coexist with economic growth. Unilever's broad reach spans more than 190 nations, with operations in markets that are both developed and emerging. In addition to earning the firm the trust of customers, its commitment to responsibility for the environment and society has also enabled it to navigate difficulties and seize possibilities brought on by shifting consumer tastes (Unilever, 2023). Unilever's continual attempts to develop goods that are compatible with shifting opinions and ways of life are driven by its emphasis on innovation.
The Environment Of The Organization
Identification and analysis of the general environment
Organizations are influenced by the internal and external surroundings in the ever-evolving world of business. Currently, business units are greatly affected by the external environmental factors such as political, economic, social, technological, legal and environmental.
A PESTEL analysis study offers a thorough framework for assessing these variables:
Political factors: |
With its international operations, Unilever is subject to a variety of political contexts. Stability, rules, and trade policies, among other things, can affect the way it operates. |
Economic factors: |
Unilever must consider a variety of economic factors, including price increases, exchange rates for currencies, and economic growth. These elements may have an impact on consumer demand and purchasing power, which might then have an effect on sales and profitability (Pestle analysis, 2023). |
Social factors: |
A wide range of consumer tastes, including cultural and social norms, are catered to by Unilever's goods. Its manufacturing and advertising methods are impacted by shifts in lifestyle trends, demography, and consumer attitudes towards health and sustainability. |
Technological factors: |
Unilever is a consumer products firm that mainly depends on technical breakthroughs. Its operational effectiveness and competitive advantage are impacted by innovations in production, logistics and digital marketing. |
Environmental factors: |
Unilever's company and public image are impacted by escalating environmental sustainability issues. The company's initiatives to lessen its impact on the environment and implement environmentally friendly practices are in line with shifting customer demands. |
Legal factors: |
Unilever is subject to a variety of legislative requirements, such as those governing product security and labeling requirements. Changes to these rules may have an impact on the company's manufacturing methods and access to markets. |
A company's strengths, weaknesses, opportunities, and threats are evaluated as part of a SWOT analysis. This is used to discover information about Unilever's competitive position and prospective strategies.
Strengths
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Weaknesses
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Opportunities
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Threats
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Identification of the task environment
Unilever's task environment is made up of particular individuals and organizations that have a direct influence on the daily operations and overall success of the business. The following are the primary variables affecting Unilever's work environment:
- Competitors: Unilever competes strongly in a range of goods for consumers industries. Kimberly-Clark, Colgate-Palmolive, Nestle, Procter & Gamble, and others compete for share of the market and attention from consumers.
- Customers: Customers are driven by these rivals since Unilever's products appeal to a wide range of international consumers. Customer devotion must be maintained and sales must be increased through satisfying their needs, desires, and expectations. Unilever's continued performance is integrally tied to its active and tactical strategy in controlling its task environment elements (Luthans, et.al, 2021).
- Suppliers: Unilever recognizes the need of enduring supplier partnerships for maintaining the efficiency and dependability of its operations. To assure excellence, sustainability, and affordability in the supply chain in which the firm works with suppliers.
- Strategic partners: Strategic relationships are used by Unilever to access new markets, methods, and knowledge. Through partnerships with other businesses, Unilever may expand its product offers and explore new business strategies.
Competitors analysis
Porter’s Five Forces form further study the competitive landscape of Unilever:
- Threat of emerging competitors: The customer products sector demands significant expenditures in R&D, brand development, and distribution networks. Entry hurdles are a result of Unilever's well-known brand and extensive distribution networks.
- Suppliers' bargaining power: Unilever's scale gives it considerable negotiating power, but it has to manage collaborations to guarantee reliable supply and good terms.
- Buyers' bargaining power: Availability of wide range of companies may result into high customer power in terms of bargaining (Alonso, 2023). However, the company's wide range of products assists to reduce this danger.
- Threat of substitutes: There are many replacements available to consumers regarding products offered by the firm. Unilever combats this by making R&D investments to develop distinctive and competitive goods.
- Industry rivalry: Nestle, Procter & Gamble, and Colgate-Palmolive are just a few of the multinational rivals that keep Unilever on its toes. Market segmentation, branding and ongoing innovation constitute essential tactics for keeping the competitive advantage.
The Strategic Direction
Evaluation of the competitive advantage
For the purpose of successful entrance and long-term growth, Unilever's growth into non-traditional markets is an intelligent choice that requires a careful analysis of its competitive advantages. Unusual issues facing non-traditional markets could involve culture disparities, legislative complexity, and strange customer behaviors (Pfeffer, 2019). Unilever has a significant competitive edge because to its broad selection of goods across a variety of sectors. Due to its diversification, Unilever has the ability to customize its products to meet the needs and preferences of customers in non-traditional areas. It distinguishes itself from rivals with constrained product ranges through its capacity to customize goods to local preferences and cultural quirks.
In entering non-traditional markets, Unilever's high brand awareness and record for excellence and environmental responsibility are key benefits. Particularly in regions where international companies could be unknown, consumers frequently go towards established companies that that trust. This acknowledgement offers Unilever a great start in winning over skepticism and gaining the trust of consumers. The greater worldwide demand for ethically and ecologically friendly products and Unilever's ongoing commitment to sustainable go hand in hand. In non-traditional markets wherein sustainable practices may be in their infancy, this approach can have a huge effect. The sustainability activities of Unilever can set business apart from rivals and pull in ethical consumers looking for products that reflect their values.
Unilever's strong R&D skills enable it to come up with ideas and develop products that address certain market demands. This capacity becomes essential in non-traditional marketplaces where customer behaviors and tastes may differ greatly. Unilever distinguishes itself from rivals with a limited capacity for adaptation by launching products that resolve specific issues or respond to regional tastes. When approaching non-traditional areas, Unilever's established worldwide distribution channels offer an important advantage. Products are delivered reliably and on schedule to customers thanks to effective logistics and distribution networks. Competitors without such a system might find it difficult to reach the same degree of accessibility and transparency (Johnson, Gardell and Johannson, 2020.). On the critical note, cultural peculiarities and complicated regulatory structures can be present in non-traditional economies. Unilever must make an investment in acquiring knowledge about and following local laws as well as changing its marketing tactics in order to appeal to people from different cultures.
Through its extensive foreign experience, Unilever has developed international competency, enabling it to successfully negotiate cultural differences and forge lasting local partnerships. Partnering with local companies and stakeholders could provide Unilever insights into market trends, cultural quirks, and legal environments, allowing it to overcome obstacles more successfully (Simons, 2019). Due to its expertise in market research and customer insight, Unilever is able to understand the distinctive features of non-traditional markets. This knowledge gives Unilever a competitive edge over competitors who might not have such deep knowledge by enabling it to develop focused marketing tactics, introduce pertinent items, and customize its strategy to customer behaviors. On the other hand, Unilever may be exposed to regional rivals with a strong presence in certain regions if it enters non-traditional markets. A problem that necessitates creative marketing and persistent efforts is building trust and getting through loyalty to brands to local alternatives.
Strategic direction design
Unilever has a great growth opportunity by entering non-traditional markets. A clear strategic direction is required for successfully managing this expansion. This involves:
In-Depth Market Research and Localization
The growth of Unilever into non-traditional areas requirements requires an in-depth knowledge of the regional environment. For it to do this, comprehensive market research must be performed so as to examine the buyer habits, preferences, cultural quirks, and legal and statutory frameworks that influence the market's dynamics (Azeem, et.al, 2021). Through the application of this knowledge, Unilever could modify its strategy to appeal to regional customers. To ensure greater intimacy with the target market, this means modifying product offers, packaging, and marketing techniques to match the particular demands and preferences of every market.
Product Adaptation and Innovation
Unilever may develop goods that are tailored to the particular requirements and tastes of every non-traditional market by drawing on its strong research and development abilities. Unilever can develop goods that are in line with new trends while still preserving its dedication to both durability and quality because to its concentration on innovation. With this strategy, Unilever not only responds to regional needs, but also distinguishes itself as a supplier of products that improve the quality of life for people in those areas.
Sustainable Business Practices
In unusual areas, Unilever's dedication to environment generates a significant benefit. The organization exposes itself to trustworthy and accountable customers as a possibility by emphasizing its commitment to the environment. Unilever may emphasize its continued commitment to sustainability protection, ethical procurement, and social responsibility campaigns in order to reach out consumers who admire companies that make an advantageous impression on the globe at large.
Strategic Connections and Local Teamwork
Unilever may develop cooperation agreements with local wholesalers, merchants, and providers to get knowledge regarding the nuances of markets that aren't typical. These relationships assist in resolving logistics challenges that are specific to every location while giving invaluable knowledge of market conditions (Leaver, Highfield and Abidin, 2020). Furthermore, by means of cooperating extensively with area big businesses, nonprofit organizations, and governance, Unilever represents an essential component of the community's economics and encourages community involvement.
Product Localization and National Sensitivity refer
By modifying marketing and communications in accordance with the social and cultural expectations of each unusual market, Unilever can efficiently utilize its trademarked reputation. The likelihood of misunderstandings decreases owing to the above strategy, thereby making confident that Unilever's reputation connects effectively with local consumers (Malik, et.al, 2019.). A significant and long-lasting connection with audience members locally is further reinforced by placing the greatest emphasis on awareness of culture.
Customer-Centric Promotional
It is important to develop advertisements that speak about the distinct needs and goals of customers in new markets. Unilever creates an intense psychological bond with those who buy its products by creating information that appeals to what they require. Utilizing the use of social media networks and digital advertising provides efficient communication, allowing Unilever to interact with its intended clientele personally and foster an atmosphere of togetherness.
Distribution networks
Unilever might enhance is supply chains in order to meet specific issues presented by markets that are not conventional. Distributed and Chain of Custody Management. It might include altering present infrastructure and researching advanced techniques for distribution, such as collaborating with community shipping companies and utilizing online shopping platforms (Brulle and Norgaard, 2019). These adjustments guarantee that the goods made by Unilever arrive to consumers successfully and dependably.
Long-term Dedication and Independence
It is essential to consider Unilever's expansion into unconventional regions as something that will take place over time. Marketing requires placing more of spotlight on developing loyalty to the company and sustained success than upon quick wins. Unilever must be flexible and adaptable in changing its business plan to evolving market circumstances and consumer tastes in order to stay relevant.
Conclusion
In conclusion, Unilever's development into unconventional regions is a tactical move that makes use of the company's fundamental skills to maneuver through unfamiliar and diverse ground. The assignment's approach involves utilizing Unilever's wide range of goods, ethical business practices, capability for inventiveness, and adaptability to localize its approach and engage with customers in the region. Unilever's commitment to forging strong ties with unconventional regions is further demonstrated by its emphasis on collaborative efforts, brand the practice of localization and focused on consumer marketing. The capacity for change and devotion over an extended period demonstrate Unilever's consciousness of the constantly changing character of these marketplaces and the significance of maintaining responsiveness while guaranteeing continued development and sustainability. The organization is positioned as an inspiration for transformation within these segments due to its outstanding across the globe brand awareness, environmental programs, and responsiveness. Unilever is able to overcome the challenges of unconventional marketplaces, encourage growth that is environmentally friendly, and have an ongoing impact on communities where it operates whereas thriving as an international player in its consumer products sector by complying with the recommendations that have been offered and keeping an eye on the long term.
In consideration of the significant concerns raised, the unique selling points in this growth lie in its ability to adjust its offers according to Unilever's community tastes and demands, supported by thorough market investigation. It is additionally positioned as an ethical alternative however additionally stands out in these marketplaces owing to its long-standing recognition of brand and ethical operations. Unilever demonstrated its commitment to community engagement and cultural awareness by putting effort into relationships, localizing employees, and maximizing transportation. The focus on invention is in accordance with the present landscape and lays the foundation for Unilever's development as an innovator in markets that are not conventional.
Recommendations for Ongoing Efforts
- Establish a group with the duty of constantly gathering and analyzing information on consumer needs, market trends, and fierce competitors in markets that are not traditional. Unilever will be equipped to react swiftly as a consequence while maintaining up with shifting demands from customers.
- Engage in initiatives that nurture and educate local workforce members so that they are able to function as ambassadors for culture and managers who are conscious of and responsive to the specifics of every marketplace.
- Institutes of study, and entrepreneurs to promote development that specifically targets unconventional market requirements. Distinctive items and approaches can be developed through partnership.
- Create flexible promotional strategies that are simple to modify according to shifting tastes of customers and regional patterns.
- Build an adaptable logistics system that is able to react quickly to changes in demand and manage difficulties with transportation. For greater resilience of supply chains, investigate into regional purchasing possibilities.
- Adapt the company's programs for social responsibility to meet the demands of the surrounding area, highlighting the company's commitment to developing a significant and advantageous influence.
- All employees who are engaged in unconventional marketplace operations ought to receive ongoing training in cultural sensitivity. Through doing this, it helps to make sure those exchanges and approaches reflect the culture.
- Keeping in consideration that establishing a loyal customer base and developing into unconventional sectors may take time to develop, so be reasonable and adaptive in business permanent outlook.
References
Books and Journals
- Azeem, M., Ahmed, M., Haider, S. and Sajjad, M., 2021. Expanding competitive advantage through organizational culture, knowledge sharing and organizational innovation. Technology in Society. 66. p.101635
- Brulle, R. J. and Norgaard, K. M., 2019. Avoiding cultural trauma: Climate change and social inertia. Environmental Politics
- Cuervo?Cazurra, Á., Doz, Y. and Gaur, A., 2020. Skepticism of globalization and global strategy: Increasing regulations and countervailing strategies. Global Strategy Journal. 10(1). pp.3-31
- Johnson, J. V., Gardell, B. and Johannson, G., 2020. The psychosocial work environment: work organization, democratization, and health: essays in memory of Bertil Gardell. Routledge.
- Leaver, T., Highfield, T. and Abidin, C., 2020. Instagram: Visual social media cultures. John Wiley & Sons
- Luthans, F., Luthans, B. C. and Luthans, K. W., 2021. Organizational behavior: An evidence-based approach fourteenth edition. IAP.
- Malik, A., Sinha, P., Pereira, V. and Rowley, C., 2019. Implementing global-local strategies in a post-GFC era: Creating an ambidextrous context through strategic choice and HRM. Journal of Business Research. 103. pp.557-569.
- Peng, M. W., 2021. Global strategy. Cengage learning.
- Pfeffer, J., 2019. Size and composition of corporate boards of directors: The organization and its environment. In Corporate Governance (pp. 53-64). Gower.
- Simons, R., 2019. The role of management control systems in creating competitive advantage: new perspectives. In Management Control Theory (pp. 173-194). Routledge.
Online
- Alonso, T., 2023. Porter's Five Forces: The Definitive Overview. Online. Available through.:< https://www.cascade.app/blog/porters-5-forces>
- Bigelow, S., 2023. SWOT analysis. Online. Available through.:< https://www.techtarget.com/searchcio/definition/SWOT-analysis-strengths-weaknesses-opportunities-and-threats analysis#:~:text=SWOT%20analysis%20is%20a%20framework,or%20establishing%20a%20business%20strategy.>
- Pestle analysis. 2023. Online. Available through. :< https://www.cipd.org/en/knowledge/factsheets/pestle-analysis-factsheet/>
- Unilever. 2023. Online. Available through. :< https://www.unilever.com/>.