The case examines prescriptive strategy applied to multi-product business groups. Unilever is headquartered in over one hundred countries in each of which multiple products are made. However, the market is mature, which means growth is stagnant and innovation is almost non-existent. To improve growth and sales, the necessary strategies look at how to propose new products that have high profit margins and penetrate new markets. The prescriptive approach was used to develop a strategy to improve growth and profit. To improve innovation, both prescriptive and emergent strategies can be used as both support innovation. The case study shows that not much profit was made when the “Growth Path” strategy was first implemented (2001-2004). Initially the strategy was based on cost reduction. It was also necessary to create volumes through the existing portfolio of branded products through innovation and marketing. By focusing on increasing sales in developing countries where growth prospects were high and increasing investment in personal care products where profit margins were higher, it was possible to improve the profit portfolio.2 How is Unilever's strategic planning process prescriptive? How does it help innovation? There are several types of strategic planning currently in use, as this is a widely debated area of management. However, it is concluded that there are two main schools of thought, the prescriptive approach and the emergent approach (Lynch, 2012). As defined by Lynch, (2012) prescriptive strategic planning is the term given to a strategy in which the objective of the strategy is defined in advance and the main elements are designed and developed… middle of paper… Access to . gic_analysis_tools_nov07.pdf.pdf/: 15 January 2014Recklies, D (2001) 'The value chain', Recklies Management Project GmbH, http://www.fao.org/fileadmin/user_upload/fisheries/docs/ValueChain.pdf accessed 12 January 2014Riley, J (2012) Boston Matrix and Product Portfolios http://tutor2u.net/business/strategy/bcg_box.htm accessed: 5 January 2014Saha, A (2011) Mapping Porter's Value Chain Activities into Business Functional Units, http ://www.managementexchange.com/hack/mapping-porter%E2%80%99s-value-chain-activities-business-functional-units accessed: January 18, 2014Tanner, JF & Raymond, MA Marketing Principles http:/ / catalog.flatworldknowledge.com/bookhub/reader/5229?e=fwk-133234-ch02_s05 accessed: January 15, 2014http://www.brs-inc.com/models/model18.asp accessed: January 10, 2014http://www . investopedia.com/terms/m/matureindustry.asp accessed: January 10 2014
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