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Unilever Companys Process and Location Strategy
A complete integration of the four business and location strategies by Unilever, a giant global corporation has seen it uniquely maintain a lead in the share of the market and a strong position against its competitors in the field of consumer goods and household favorites for many years. These strategies are evidently designed to meet or exceed customer expectations and requirements besides meeting specific goals set by the organizations management in line with its strategic vision.
Incorporated in the strategic design are excellent product and service qualities for a variety of its customers. One of the four process strategies integrated in this scheme is mass customization. According to the paper Strategy Process (n.d), each of the production facilities remain focused to meet the dynamic nature of customer needs and desires. One of a variety of its products that has received focus is a household favorite commonly known as Persil.
This is evident in terms of product quality, quantity, and innovation. Another unique aspect of Unilevers process and location strategies is evident from Unilevers highly qualified and skilled personnel. Their knowledge not only traverses technical expertise, cross cultural managers, and comprehensive understanding of key strategic locations and distribution channels, these channels remain highly cost effective and reliable (Strategy Process, n.d).
The corporation has over time focused in designing and processing products that meet the flexible needs of each target market. This not only gives the target market a feel of the corporations products, but from a wide selection of them, provides the target market products unique to their needs. On the other hand, a business organization must emphasize on profit optimization against the operating costs and low equipment utilization.
That is the case with Unilever. Every aspect of product development must be characterized by optimal u utilization of machinery. Characteristic of this strategy are high volume varieties, fixed and high variable costs based on product characteristics and needs, and dynamically varying costs depending on manufacturing location, target market, and product quality. However, mass customization has its own challenges.
Mass customization significantly benefits from a combination of other strategies. The strategies incorporated include process focus that takes a share of 5% t0 25%, product focus whose share is 70% to 90%, and repetitive focus that is unique as a source of modular techniques. These strategies are evident in its global productions and distributions.
Unilevers headquarters are located in two cities, Rotterdam and London. Both stations share the same director and operate as a single business. On the other hand, the company has various distribution channels all over the world. More specifically its American unit is situated in New Jersey (Cliffs, 2009).
Unilevers American unit strategically positions the company in terms of costs production and product distributions, its supply chain management and sources, management and effective monitoring of product consumption levels, ability to manage physical and environmental risks, and the ability to regulate tax and legal matters pertaining to its operations in America.
The political and economic environment is quite favorable for the company, key aspects to consider when establishing a companys headquarters. In addition to that, the headquarters is amiable for determining and evaluating social and geographic conditions that influence market behavior. In essence, these factors qualified New Jersey to be the SafeHarbour . Other location strategic factors were based on warehousing costs, transportation matrix, and production capacities for each product (Hurreeram, 2004).
References
Cliffs, E. (2009). Unilever to Move Chicago Office to North America Headquarters in New Jersey. Web.
Hurreeram, D.K (2004). Location Strategy. Web.
Strategy Process. (n.d). Web.
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