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Strategic Management

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Unilever Cooperates with Many Firms and Nonprofit Organizations to Implement Its

Strategy While Creating a More Sustainable Environment

1. Consumer product companies that have headquartered in Europe


historically have used the multidomestic strategy since it calls for little
coordination between various nation markets, implying that incorporating
mechanisms between divisions in the worldwide geographic scope aren’t
required, thus formalization is low.

In my view, yes this is an effective choice of international strategy for these


firms. I feel this way mainly because since this enables for companies and
organizations to broaden their product contributions and geographic areas,
it is a very compelling choice for an international strategy.

2. To implement its sustainable business model, Unilever is using the


decentralization and divisional structure as well as the centralization of
certain functions in this case. A transnational strategy is a mixture of
global strategy and the multi domestic strategy. The transnational strategy
allows for a firm to prioritize local consumer desires and choices and give
priority to sustainable business practices.

The responsibility of the global headquarters will still be the decisions and
guidelines for major sourcing. That is so that we can make sure all
purchasing and sourcing is performed in a sustainable way that supports
the firm’s goals. This strategy will pave the way for an increase in
efficiency since there is no need for major executive exercises needed to
make particular decisions.

3. In order for Unilever to reach its sustainability objectives, they will have to
use the Global Matrix Design structure so they can meet the demands of
decentralization here. This type of design structure will combine unity and
diversity by integrating business structure and strategy. Managers will stay
adaptable to make decisions for nearby organizations and act in
accordance with values that are imposed by global corporate policy.

4. What issues about organizational structure surface as a result of Unilever’s


proposed strategies and objectives regarding sustainability?

4. As a result of Unilever’s proposed strategies and objectives regarding


sustainability, one of the issues about organizational structure that surfaced

5. The emphasis on sustainability and global matrix structure resulted in short term
earnings. This also lead to a lot of executive exercise in aligning the goal of the
worldwide subsidiaries and di-visions with organizational goals of sustainable
business. The alignment leads to increased work prompted by the company to
form cooperative strategies with profit as well as not for profit or-ganizations. This
leads to the decline in the earning and created problems.

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