5. Unilever is an Anglo–Dutch multinational consumer goods
company co-headquartered in London, England and
Rotterdam, the Netherlands.
Its products include food, beverages, cleaning agents and
personal care products.
Unilever owns over 400 brands, but focuses on 14 brands.
Unilever was founded in 1929 by the merger of the British
soapmaker Lever Brothers (founded in 1885 by William
Hesketh Lever).
6. MISSION
Their Vitality mission commits them to growing their
business by addressing health and nutrition issues.
They focus on priorities including children and family
nutrition, cardiac health and weight management.
Mission Statement of Unilever is: “feel good, look good/and
get more out of life”
7. A clear direction.
A better future for children.
A healthier future.
A more confident future.
A better future for the planet.
A better future for farming & farmers.
9. Unilever is a winning company and they are committed to
winning with integrity.
The Unilever Code Compliance Framework is divided into
three pillars: Prevention, Detection and Response.
These pillars encompass a comprehensive system of
activities by which we ensure that the way we do business.
10. They encourage their companies to engage with local
governments and other organisations to help inform public
policy.
This is done both directly and through bodies such as trade
associations.
They take part in multi-stakeholder debates and when
relevant respond to public consultations.
11.
12.
13. Why did uniliver’s decentralized organizational
structure make sense from the 1950’s through
the 1970’s? Why did this structure start to
create problems for the company in the 1980s?
14. Unilever was organized on a decentralized basis subsidiary
companies in each major national market were responsible
for the production, marketing, sales, and distribution of
products in that market in western Europe.
For example: The company had 17 subsidiaries in the early
1990s, each focused on a different national market.
Each was a profit center and each was held accountable for
its own performance.
15. This decentralization was viewed as a source of strength. On
the other hand we can say decentralization for unilever.
The structure Start to Create problems for the Company
Because:
The structure start to create problems for the company in the
1980s because Unilever global competitors Nestle and Procter and
gamble had been more successful than Unilever and the other
different global brand products with low price.
16. The structure creates problems for the company on several
fronts-
Building Global Brands.
Reducing costs structured by consolidate Manufacturing cost
operation at a few choice locations.
Executing simultaneous product launches in several national
markets.
It also meant lots of duplications.
Lack of scale.
High cost structure.
17. What was Unilever trying to do when it
introduced a new structure based on business
groups in the mid-1990s? Why do you think
that this structure failed to cure Uniliver’s ills?
18. Unilever began to change all this in the mid 1990s.
In 1996 it introduced a new structure based on regional
business groups.
Each business group included a number of divisions, each
focusing on a specific category of products.
Those groups and divisions co-ordinate the activities of
national sub soldieries within their region drive down
operating cost and speed up the process of developing and
introducing new product.
19. Some new products were manufactured at only one site.
Product sizing and packaging were harmonized to cut
purchasing costs.
Unilever were able to reduce cost by $400 million per year
in European operation.
20. The structure failed to cure Unilever's ills for different
reasons such as:
In the year 2000 Unilever found that it was still lagging behind its
competitors.
Unilever was failed behind rivals in the race to bring new products
to market.
Cost effectiveness could not be achieved.
They failed to execute simultaneous product launches in several
national markets.
The new structure failed because they could not modify or improve
their products as their competitors did.
21. In the 2000s Unilever has switched to a
structure based on global product divisions.
What do you think is the underlying logic for
this shift? Does the structure make sense given
the nature of competition in the detergents
and food business?
22. In the year 2000 Unilever has switched to a structure based
on global product divisions.
The logic for this shifts are given below:
The targeted goal was to cut the number of brands on a regional or
global scale.
They tried to improve their previous structure with some new
innovative ideas so they shift to a structure based global product
divisions.
They are able to reduce to the cost effectively.
23. Yes, the structure made sense given the nature of
competition in the detergents and food business.
The company established a new organization based on just two
global product divisions –
A food division.
A home personal care division. Each division focuses on developing,
manufacturing, and marketing for detergents and food business.
24. The new structure made sense because the customers wants the best
brands.
They demands for high quality products.
They want reputed brands and through this structure the Unilever
may able to satisfy the customer needs and demands.
25. Restructuring and downsizing are necessary as a response to
changes that occur both inside and outside the organization
but often organizations are not able to incorporate these
strategies efficiently thereby leading to mismanagement of
human talent and resources.
26.
27. Making a positive contribution to society through our
brands, our commercial operations and relationships, our
voluntary contributions to the community and through our
wider engagement with Bangladeshi society.
Improving the quality of life.
Business of fulfilling dreams.
Aspiration beyond means.
Adding value through innovation.
