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Unilever Abdulrhman alnaim 201100141 wael alkhahlan 200901781 tareq alshahrani 201001760 abdulrhman alzahrani 201002400.

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Presentation on theme: "Unilever Abdulrhman alnaim 201100141 wael alkhahlan 200901781 tareq alshahrani 201001760 abdulrhman alzahrani 201002400."— Presentation transcript:

1 unilever Abdulrhman alnaim wael alkhahlan tareq alshahrani abdulrhman alzahrani

2 Overview # Activity 1 Group Discussion: Revision of Vision and Mission of the College 2 Preparation of the report’s section: Revision of Vision and Mission of the College 3 Group Discussion: External Environment Assessment 4 Preparation of the report’s section: Internal Environment Assessment 5 Group Discussion: Internal Environment Assessment 6 7 Group Discussion: Analysis of Alternative Strategies 8 Preparation of the report’s section: Analysis of Alternative Strategies 9 Group Discussion: Selection of the College’s Strategy. Strategy Description 10 Preparation of the report’s section: Selection of the College’s Strategy. Strategy Description 11 Preparation of the report’s section: Overview, Conclusion 12 Finalization of the report

3 Revision of Vision and Mission of the company
Unilever’s Vision:“We will touch the lives of all people by better anticipating and fulfilling their cleaning, caring and nutritional needs, everyday, everywhere”. The vision of the company is the shape of the company in the future. Because of that, it is wide in meaning and it outlines what the company is intended to do in the future. It can be looked at as the dream of the company which it keeps trying to reach.

4 Revision of Vision and Mission of the company
Unilever’s mission: “Unilever's mission is to add vitality to life. We meet the everyday needs for nutrition, hygiene, and personal care with brands that help people feel good, look good, and get more out of life.” For the mission, it is the justification of the company to exist. It shows the values and beliefs of the company. Also, the mission is the way that shows how the company will reach its vision. Furthermore, tie mission defines its customers and processes

5 External Environment Assessment
1. Political, Economical, Social and Technological factors (PEST) Assessment Political Factors Saudi Arabia is politically stable country while many countries in the region are facing political problems. The government has started a long program to attract investments from local, regional and global investors. The Saudization program has been started to encourage companies to hire Saudis instead of depending on foreign manpower. This affected the companies to hire non-Saudis. The country has changed its laws to cope with the regulations of the World Trade Organization (WTO). The country is part of the GCC and there are plans to be a full union between its members. Economic Factors The Gross Domestic Product (GDP) of the country is higher than many countries in the region The country depends on oil and petrochemical industries The country face high inflations The country is facing high unemployment rates The government is planning to build six major economical cities in the coming 15 years

6 External Environment Assessment
1. Political, Economical, Social and Technological factors (PEST) Assessment Social Factors The population in Saudi Arabia is increasing every year The largest segment of the population in Saudi Arabia is the youth segment. The official religion is Islam despite the presence of other religions that come from expatriates. The society is a traditional society Diversity and availability of employees. Technological Factors Saudi Arabia has highest number of internet subscribers in the region The amount of computers and computer technologies used for individual is high All major companies have dedicated information technology centers The government is planning to change many of its facilities electronically.

7 External Environment Assessment
2. Industry Attractiveness Analysis (Porter Five Competitive Forces) Rivalry There are many companies in Saudi Arabia which work in the same lines of Unilever. Some of these companies make detergents, some of them make snakes and others make shampoo and healthcare products. However, in tem of quality, fame and prices, there is on large a competitor which is Protector and Gamble. These two companies have the same lines of products and they are competition not only in Saudi Arabia but in many countries too. Bargaining power of Buyers Because of the level of competition, and the wide range of local and international companies providing the same products, the bargaining power of the buyers is high. In addition, because of the prices of these products are close to each other, the competition is always on the quality and brand.

8 External Environment Assessment
2. Industry Attractiveness Analysis (Porter Five Competitive Forces) Bargaining power of Suppliers There are two types of suppliers. The first one is the government which issue the laws governing the market and the laws and the second one is the raw materials. The bargaining power of suppliers is also high especially that raw materials are subjected to high standards that should cope with the specifications in many countries. Threat of new entries The segments of food, healthcare products, soap and detergents are economically a strong market. Because of that, the threat of new entries is very high. These new entries could be local or international. This is because of the attractiveness of these products and their short life cycle. Threat of new substitutes Companies such as Unilever and P&G are developing and releasing new substitutes all the time. This also could happen to other companies. For example, solid soap was partially substituted with liquid soap and the door is open for more inventions in the sector that these companies work in.

9 External Environment Assessment
3. Opportunities and Threats Opportunities Increasing the population and the need for the products of the company will increase Reducing tariff and customer duties among Gulf countries and other Arab countries as a result of the agreements to build one market with one currency. High GDP Research and development which make the company able to produce new types of products and to improve existing ones. The company has more products ever years because of the ability to understand the needs of the customers and the new products suit these customers.

10 External Environment Assessment
3. Opportunities and Threats Threats Political problems in the region. Examples of these problems are the one that took place in the Middle East such as in Egypt, Yemen and Syria and the problems of Iran with its nuclear power. The presence of poor families in Saudi Arabia New competitors in the future because of the attractiveness of this sector Low purchasing power Changing the laws for international based companies. Saudi Arabia takes tasks for foreign investments in Saudi Arabia and only zakah for Saudi based companies.

11 Internal Environment Assessment
Division Name # of Production Lines Brand Name Product Category Liquid 3 Jif House Hold Care Lux Hand Wash Skin Care Lux Progress Sunsilk Hair Care Sunsilk Conditioner Dove Shower Gel Lux Shower Gel Toothpaste 2 Close Up Oral Care Signal Oral Care Products Soap 4 Dove Lifebuoy Lux

12 Internal Environment Assessment
2. Marketing Whole sales Pharmacy Hotels, Restaurant, Tea shops and Retails 3. Structure Marketing department Finance department Supply chain department Sales department.

13 Internal Environment Assessment
4. Strengths and Weaknesses Strengths Financial strong company because of the presence of the company in more than 100 countries around the world Covering many important products that are needed by large segments of people. These products include healthcare, food and others Strong brand name which has been built in many years such as Dove, Lipton and Head and Shoulders Sales outlets all around the kingdom Strong advertisement and marketing

14 Internal Environment Assessment
4. Strengths and Weaknesses    Weaknesses Strong competition from local and international competitors. The competitors are of two types: the first one is that the ones who manufacture inside Saudi Arabia and the second is the ones that import products from outside Saudi Arabia International based company

15 Analysis of Alternative Management Functions and Strategies
1. EFE matrix Opportunities Weight (%) Rating Weighted Score Increasing the population 9% 2 0.18 Reducing tariff 13% 0.26 High GDP 8% 3 0.24 High research and development 12% 0.36 High number of expatriates More products of the company 10% 4 0.40 Threats Changing the laws 5% 0.10 Poor families 11% 0.22 New competition 1 0.13 Low purchasing power 7% 0.7 Political situation in the Gulf 4% 0.4 Poor (1), below average (2), above average (3), superior (4) Total Weighted Score 100% 2.24

16 Analysis of Alternative Management Functions and Strategies
2. IFE matrix Internal Strengths Weight (%) Rating Weighted Score Financial strong company 10% 3 0.30 Many important product 15% 0.45 Strong brand name 4 0.60 Many sales outlets 0.40 Strong marketing and advertisement 8% 0.32 Internal Weaknesses Strong international competition 2 Strong local competition 12% 1 0.12 International based company 0.15 Poor (1), below average (2), above average (3), superior (4) Total Weighted Score 100% 2.64

17 Analysis of Alternative Management Functions and Strategies
3. Internal-External (IE) Matrix Strong Average Weak EFE score 4.0 I grow II and III build High IV hold V VI maintain Medium VII harvest or IX diverts Low 1.0 IFE score


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