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Introduction: Managerial Economics Summative Assessment 1

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The study has going to discuss the topic of managerial economics and the development of the expansion of market infrastructures in Unilever. The study has also been created and interlinked with the theoretical perspectives and provided valuable information based on the research topic by determining the competition rates, market expansions and management activities. It has been provided with an appropriate framework for balancing and creating practical decision-making approaches and developed the cultural attributes of the company infrastructures. After that, an overall summary has also been provided. 

Managerial economic theories in Unilever practice in management activities

The application of the economic theory of Unilever- "Neoclassical theory"

As the world materialises slowly from contentions, recession over the sources of getting recovery and decline are reigniting a debate among competing with markets, expanding markets and working with clients. In this way, going with neoclassical theory might provide a helpful glimpse into which links behind their production functions, efficiency models and mathematical supply curves (Bls.gov, 2022). Unilever's central vision is to "add validity in life" which can satisfy customers in diverse aspects of their lives. Due to this reason organisation needs to bring together this theory which might lead to development that can quickly raise this organisation's focusing their market and competition. "The neoclassical theory was after all fashioned from the turn of the century onwards" and had exited the crudities and viciousness of the owner-manager duration in starting period of the Industrial Revolution and comprehended the lessons. Hierarchy, as well as its ramifications such as the unity of authority, are at the central heart of this economic theory and it was followed that the worker's inspiration exclusively through monetary rewards (Shafritz et al. 2016). This theory is more than markets rather than an organisation and working with the theory, firms deal with a group of ideas and a well-established model which might work with managerial action and inform all the information in dealing with all the potential risks and realising its potential impact on a firm. 

Revenue of Unilever Group world wide

Figure 1: Revenue of Unilever Group world wide

The application of this economic theory provided a good result which can be clearly understood by the above graph. They have followed their huge rivals such as PepsiCo and Coca-Cola by getting the model of this theory. According to this theory, sometimes it increases the output in the short accelerated result in the organisation as well which costs in the labour and resources included in the organisation. In contrast, in the long run following its vision, it might deliver profitability by going with this theory as it might provide technological progress (Learning, 2018). In Unilever, the organisational function is mainly linked with research and development (R&D) and securing competitive advantage with another market in such an industry, theory emphasises the role of innovations. 

This theory approved the company's marketing strategy and enhances its marketing plan. this theory is the comprehensive understanding of the main classical approach that contains business management in behavioural science.  The approach highlights person or company conduct or human connections in defining productivity. The major components of the neoclassical system are person, workgroup and management of participatory. The theory stood a shot at the Manners into administration considered in charge to translate the issues generated by practices of classical theory. The assumption stood founded on the concept of this inclusion that the function of administration is to utilise workers to get something accomplished in the company (Dmytriyev, S.D., Freeman, R.E. and Hörisch, J., 2021). The approach prioritizes workers' economic and physical conditions over company fulfilment and social requirements. 

Applications of key theories for competing with other companies

As opined by Brunelle et al. (2019), the "New classical Theory" has created dynamic rivalries progress of the organizational sectors by struggling with each other and created a market expansion of developing the culture of the market shares opportunities and diminished the rate of competitors. In addition, the above-depicted theory has also increased the rate of supply chain and demand modules rates by consuming effective goods and services. It has been focused on the four kinds of attributes related to interest, lands, rents and wages by making diversification and permitting the initiatives and autonomy systems at the lower ranges of pricing structures. Thus, Unilever can also be getting successful to increase the rate of profit margin rates by providing the best services among consumers at affordable pricing rates. In contradiction, Farias et al. (2020) have argued that the "New classical Theory" has played an effective function in attracting a wider range of consumers and developing the cultural attributes of the direction rates. Thus, the macroeconomic indicators have created essential networking modelling structures and diminished the rate of competition rates by executing business strategies and reducing the rate of competition. Thus, Unilever can be increased the rate of profit margin rates and created improvements through the adaptations of cultures regarding "Corporate Social Responsibility (CSR)". For instance, in the year 2021, the rate of revenue structures of Unilever has been transformed by nearly 52,444 in million.

Overviewed the graph it has been represented that the net income statement rates have been depicted here from the year 2007-2021, there has also been a rate of fluctuations have also been overseen. In the situations of Covid-19 situation, the retail sectors have faced different kinds of issues related to labour shortages issues have been considered one of them. Therefore, the rate of competition infrastructures has also effectively increased those us "Mars, GSK, Nestle Gamble and Johnson & Johnson" (Statista.com, 2022). The rate of competition has been effectively increased due to inappropriate management systems and inappropriate management systems. Thus, the lack of technical knowledge gap has increased the rate of disruptions that have not been considered beneficial side for companies' economic growth. Therefore, for mitigating the rate of competition the respective retail industry have been implemented technological advancement and increased the rate of market expansions as well as developed the cultural attributes of health and safety. As per the view of Iglesias and Ind (2020), the adaptations of the strategies Unilever have been also getting successful to develop the culture of the standardization process and creating a positive effect of attracting new customers sustainably. For instance, the chances of pollution rates have also decreased as the adaptations of CSR strategies and eco-friendly diversification has also been created and the developments of market expansion rates can also be increased. It has been considered as a beneficial side for counties' growth and the improvements of profit margin rates and the developments of brand recognition and ultimate ranges of product quality developments rates can also be getting developed. 

Thus, the respective organisational sectors have created a wider range of changes in the generation of new values and the company can also be getting successful to fulfill the ultimate rate of long-term objectives sustainably. In contradiction, Kerr et al. (2020) have argued that the appropriate sustainability mindsets have developed the cultural attributes of strategic management by prioritizing the working force conditions and improving the rate of market acquisition cultures by producing the best services among the consumers in an effective manner. Unilever can also develop multiple kinds of operational structures and platforms related to advertising, packaging, improvements of strategic cultures, developments of market expansion rates and others. Thus, there can also be wider ranges of changing cultures that can be overviewed of the "Fast Moving Consumer Goods (FMCG)" industrial sectors and making a wider range of improvements of the improvements of products and quality services. For instance, overviewed the graph it can be stated that Unilever has been considered as a fourth industrial sector that has been leading in the UK by increasing the rate of profit margin rates (Based on the report 2020). Thus, in the year 2020, the rate of selling infrastructures of Unilever has been transformed by nearly 61,633 in U.S. Dollars by sustainably mitigating the risk factors. There have also been wider ranges of the rate of fluctuations have been overviewed that can be also helped the retail sectors to create a positive impact of the improvements of selling infrastructure growths and developed the cultures of the economic stability rates around the UK. As opined by Jose (2021), the respective business industrial sectors have developed a culture of performance rates and making a positive effect on the improvements of the relationship model between the consumers and the organisations. 

Therefore, the retailing sectors have increased the rate of productivity by developing the cultural attributes of the company's welfare in a sustainable manner. In addition, provided the training facility among the workers the rate of motivational structures have been sustainably developed and the company can be also getting successful to created working flexibility and developing a culture of environmental sustainability. In this regard, Unilever can increase the rate of knowledge-sharing cultures by enhancing the skills rates and creating a positive effect of boosting the team spirit by analysing the risk factors. Therefore, the development of cultural attributes and talent acquisition cultures have been making positive effects by analysing the risk factors and creating effective decision-making approaches. 

Competitor analysis is required for better performance of own company. Competitor analysis gives the edge to company, for better performance, and will provide certain attributes that will help to outperform other companies. Some companies could be enhancing their distribution channels so that they will reach more consumers, for example, Hindustan Unilever, followed the same approach (Obialor, 2021). Some companies apply more visuals advertisement so that more consumers will aware of their variety of products, this way demand will increase for certain products, brands will be built and they will be popularized. Some companies give incentives to the distributor after some certain of their sales, so that distributor will encourage to sell more products to stores.

Application of theories in expanding the market of Unilever

Sustainable production is the main industrial activity of Unilever and that is why going with managerial economies with such a theory is important. It focuses on the manufacturing of all the goods within a workplace and maintaining a supply chain process by utilising a process which is non-polluting to the environment. Sustainable manufacturing process changes in a corporation after a long time and shifts to traditional manufacturing concepts which mainly focus on the triple bottom line. It considers social aspects such as customers and clients, environmental impacts such as competitors and at last economic impacts which include market conditions and how to expand the market. This managerial economic theory is not only important for delivering a sustainable production process for Unilever but also works in mitigating the most important issues such as the demand of customers regarding products (Stanley et al. 2022). Unlike neoclassical and Keynesian theories, "Marxism rejects any kind of determinist logic and, instead, insists that all events or objects in the economy are overdetermined". Scarcely speaking, using this principle it is impossible to account for or separate every essential cause in the economy because all aspects of society such as economic, political, and cultural are mutually "interactive, interdependent, and, therefore, constantly affecting one another in a process known as dialectics" (Bls.gov, 2022). Thus, utilising all the models which are described by these theories environmental leaders can play an advantageous role in guiding specific strategies to get the markets.

Turnover per product area

Figure 2: Turnover per product area

It is visible in the graph that Unilever has only one competitor in the year 2017 and that was Procter & Gamble. One of the main reasons for getting this achievement was following economic theory and based on which they have a huge market share with the government of the UK. In the year 2010, consumer-producing giant Unilever the corporate action plan promised to update a well business model which is mostly around a series for getting the sustainability targets by considering this economic theory. In the year 2008, the company does not have any economic \s managerial activity due to which leaders faced many issues to accelerate the company in a good way. Due to this, the company cut down "carbon emissions by 47% and water consumption by 39%", the weight of its "product packaging was also 13%" and which limiting in its resource-price viability. In facing this disruption in the workplace Unilever has evaded over 700 million euros and having these difficulties in a workplace neoclassical theories have helped the company in improving its market position with its main competitor Johnsons & Johnsons. In the year 2017, Unilever reported that the company's stock value has grown in a good way which has struggled in a bad way in recent years. Unilever is pretty much superior in delivering sustainability regulations in the workplace, which helps in turning sustainability into well-delivered revenue in an organisation. In getting the economies theory they were able to adopt a stock value of more than 15% which was pretty much high in the retail industry. 

This theory connects a relationship between the company and the market. Endurable manufacturing is operation differences in a company behind a prolonged period and modifications to standard manufacturing images which mostly concentrate on the treble bottommost line (Esty, 2019).  It believes social elements such as consumers and customers, environmental effects like candidates and previous financial consequences contain demand needs and develop the need.  This executive financial approach stands not solely necessary for providing a tolerable show approach for "Unilever" while also functioning in the most significant mitigating problems like the market of consumers concerning developments. Opposition comment is needed for better implementation of own business. Competitor commentary provides the edge to businesses, for more acceptable arrangements, and intention provides specific details that will allow surpassing other organisations. Some businesses could improve their allocation channels so that they will get more additional customers, for example, Hindustan Unilever, followed the same path (BIÇER, 2021).  The speed of the contest has stood improved due to improper control methods and improper managing strategies. Thus, operating all the measures which stand represented by these ideas environmental managers can recreate a valuable position in teaching clear procedures to reach the demands.

Conclusion

In conclusion, it can be stated that it is obvious to follow economic theories usually regard to consumers, customers and hybrid organisations at the same time observing its potential risk are also necessary. The theory helps Unilever to make effective decisions and determine investment and production in the workplace. Unilever has observed their faculty being more environmentally and prudent to social issues and that also helps in getting advantageous and one-by-one with other competitors as well. Empirical evidence under the innovation phase and R&D development must be undertaken by Unilever in future for technology development as well as emerging economies in the workplace.

References

Journals 

Brunelle, T., Makowski, D. and Dumas, P., 2019. Classical theories of land use: a model-to-data assessment.[ID860]. Global Land Programme. https://agritrop.cirad.fr/594966/1/ID594966.pdf 

Esty, D.C. and Karpilow, Q., 2019. Harnessing investor interest in sustainability: The next frontier in environmental information regulation. Yale J. on Reg.36, p.625. https://openyls.law.yale.edu/bitstream/handle/20.500.13051/8291/36_JREG_625_Esty.pdf?sequence=2&isAllowed=y

Farias, G., Farias, C., Krysa, I. and Harmon, J., 2020. Sustainability mindsets for strategic management: lifting the yoke of the neo-classical economic perspective. Sustainability12(17), p.6977. https://doi.org/10.3390/su12176977 

Iglesias, O. and Ind, N., 2020. Towards a theory of conscientious corporate brand co-creation: The next key challenge in brand management. Journal of Brand Management27(6), pp.710-720. https://doi.org/10.1057/s41262-020-00205-7 

Jose, J., 2021. Analyzing the necessity and impacts of organizational culture on the performance of Unilever UK Ltd (Doctoral dissertation, Dublin, National College of Ireland). https://norma.ncirl.ie/5431/ 

Kerr, W.R., Billaud, E. and Hjortshoej, M.F., 2020. Unilever’s Response to the Future of Work. https://execed.hkubs.hku.hk/wp-content/uploads/2022/04/Unilevers-Response-to-the-Future-of-Work.pdf 

Learning. Lohse, S., 2018. The importance of fostering incremental innovation. ICC (International Chamber of Commerce) Innovation and Intellectual Property Research Paper, (5). https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3271085

Shafritz, J. M., Ott, J. S., & Jang, Y. S. (2016). Classics of organization theory. 8th Edition, Cengage

Stanley, A.O., Ovie, E.A., Ughovero, B.A. and Ijoyah, C.T., 2022. Sustainable Production Strategy and Product Availability: A Study of Unilever Nigeria PLC. LAFIA JOURNAL OF ECONOMICS AND MANAGEMENT SCIENCES7, pp.44-65. https://lajems.com/index.php/lajems/article/download/201/155

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