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PREFACE
First of all I would like to thank to God, because of his blessings that I can finish our
Module Assignment. This module assignment is presented to fulfill one of the requirements
in accomplishing final test that given by the lecturer. This paper is also compiled by the writer
in order to complete the duty in Cost Management.
It is very difficult for the writers to complete this module assignment without the help
and guidance of the various parties who have helped us to complete this module assignment.
On this occasion the writing team would like to thank as much as possible to:
1. The God Almighty for all the grace and guidance given to the writing team so that
the writing team can complete this module assignment. The amount of overflow
gifts that have been given by The God Almighty made the writers are always
grateful and always strive for better.
2. Google, which the source for my Module Assignment is www.unilever.com, those
provided me with information needed to finish my Module Assignment.
3. Dr. Yvonne Augustine Ak, MM as my lecturer in Cost Management that has been
taking her time to help writer to completed this module assignment
4. All of the writing teams friends in Trisakti Accounting Excellent Class whom
give spirit, feedback and motivation to the writing team on completing this
module assignment.
We realize that we put this paper is far from perfect, we therefore expect criticism and
suggestions that would be able to make this paper better. Hopefully this paper can be useful
for the reader.
Writer
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TABLE OF CONTENT
COVER
PREFACE .............................................................................................................................. 1
TABLE OF CONTENT ........................................................................................................ 2
CHAPTER I BASIC THEORY
1.1 Developing a Competitive Strategy ............................................................................................... 4
1.2 The Balanced Scorecard (BSC) ....................................................................................................... 4
1.3 The Value Chain .............................................................................................................................. 5
1.4 Activity Base Costing ...................................................................................................................... 5
1.5 Quality Management ....................................................................................................................... 6
1.6 Strength, Weakness, Opportunities, Threat ..................................................................................... 6
1.7 Supply Chain ................................................................................................................................... 6
1.8 Just in Time ...................................................................................................................................... 7
1.9 Corporate Social Responbility ......................................................................................................... 7
1.10 Triple Bottom Line ........................................................................................................................ 7
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CHAPTER I
BASIC THEORY
1.1 Developing a Competitive Strategy
In developing a sustainable competitive position, each firm purposefully or as a result of
market forces arrives at one of the two competitive strategies: cost leadership or
differentiation.
Cost leadership is a strategy in which a firm outperforms competitors in producing products
or services at the lowest cost. The cost leader makes sustainable profits at lower prices,
thereby limiting the growth of competition in the industry through its success at reducing
price and undermining the profitability of competitors, which must meet the firms low price.
The cost leader normally has a relatively large market share and tends to avoid niche or
segment markets by using the price advantage to attract a large portion of the broad market.
The differentiation strategy is implemented by creating a product or service that is unique in
some important way, usually higher quality, customer service product features, or innovation.
Sometimes a differentiation strategy is called product leadership to refer to the innovation
and features in the product. In other cases the strategy might be called a customer-focused or
customer-solution strategy, to indicate that the organization succeeds on some dimension(s)
of customer service.
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according to the actual consumption by each. This model assigns more indirect
costs (overhead) into direct costs compared to conventional costing.
In a business organization, the ABC methodology assigns an organization's
resource costs through activities to the products and services provided to its customers. ABC
is generally used as a tool for understanding product and customer cost and profitability
based on the production or performing processes.
1.5 Quality Management
For purposes of discussion we define the term quality to mean the total level of customer
satisfaction with the organizations product or service. Defined in this manner, we can
decompose quality into two broad components: features and performance. The former
component refers to the extent to which product/service design is consistent with customer
expectations (in terms of product/service characteristics, attributes, or functionality)in
short, design quality. Outputs that fail to meet such expectations result in quality-of-design
failure costs.
1.6 Strengths, Weaknesses, Opportunities, Threats
SWOT analysis is a systematic procedure for identifying a firms critical success factors: its
internal strengths and weaknesses and its external opportunities and threats. Strengths are
skills and resources that the firm has more abundantly than other firms. Skills or
competencies that the firm employs especially well are called core competencies. The
concept of core competencies is important because it points to areas of significant
competitive advantage for the firm; core competencies can be used as the building blocks of
the firms overall strategy. In contrast, weaknesses represent a lack of important skills or
competencies relative to the presence of those resources in competing firms. Opportunities
and threats are identified by looking outside the firm. Opportunities are important favorable
situations in the firms environment. Demographic trends, changes in regulatory matters, and
technological changes in the industry might provide significant advantages or disadvantages
for the firm.
1.7 Supply Chain
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economic
impact
on
the
environment.
Costs
include
costs
to
clean
up
CHAPTER II
COMPANY PROFILE
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(production and sale of home care products including powders, liquids and capsules, soap
bars and other cleaning products).In the financial year ended 31 December 2013, Unilever
had a total turnover of 49.797 billion of which 36% was from Personal Care, 27% from
Foods, 19% from Refreshment and 18% from Home Care. Unilever invested a total of 1.04
billion in research and development in 2013.
Unilever is one of the largest media buyers in the world, and invested around 6 billion
(US$8 billion) in advertising and promotion in 2010.
Unilever has been in business since the 1880s. Our unique heritage shapes the way we do
business today. Unilevers corporate vision helping people to look good, feel good and get
more out of life shows how clearly the business understands 21st century-consumers and
their lives. But the spirit of this mission forms a thread that runs throughout their history.
In the 1890s, William Hesketh Lever, founder of Lever Bros, wrote down his ideas for
Sunlight Soap his revolutionary new product that helped popularise cleanliness and hygiene
in Victorian England.
It was to make cleanliness commonplace; to lessen work for women; to foster health and
contribute to personal attractiveness, that life may be more enjoyable and rewarding for the
people who use our products.
This was long before the phrase Corporate Mission had been invented, but these ideas have
stayed at the heart of our business. Even if their language and the notion of only women
doing housework has become outdated.
2.3 VISION
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Work to create a better future every day, with brands and services that help people feel good,
look good, and get more out of life.
2.4 MISSION
We help people feel good, look good and get more out of life with brands and services
that are good for them and good for others.
We will inspire people to take small every day actions that can add up to a big
difference for the world
We will develop new ways of doing business that will allow us to double the size of
our company while reducing our environmental impact
2.5 BRANDS
From long-established names like Lifebuoy, Sunlight and Ponds to new innovations such as
the Pureit affordable water purifier, our range of brands is as diverse as our worldwide
consumer base.
Unilever is organised into four main divisions, there are :
1. Foods
From the best of Indonesias culinary traditions to new and exciting taste experiences, these
13 brands are delighting consumers with convenient high-quality, nutritious Foods and
Refreshment options. Convenient and great-tasting food. For example: SariWANGI,
BANGO, Blue Band, Royco,etc
2. Refreshment
Unilever also make some refreshment for costumer in the world. The product such as:
Buavita, Cornetto, WALLS, MAGNUM, Paddle pop, etc
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3. Personal Care
Personal Care is Unilevers largest division, having overtaken the Foods division in 2011 to
take the top spot. In 2014, Personal Care accounted for 37% of its total revenues, followed by
the Foods division with a 26% revenue share. This gap in revenue share is set to get wider, as
Unilever intends to consolidate its position in the personal care industry by making
acquisitions in the premium personal care segment. The products are : Citra, Dove, Clear,
TRESemme, LUX, Closeup, sunslik, SURF, Zwitsal, PONDS, etc
4. Home Care Product
Innovation is the driving force behind the 26 brands in Unilever Home and Personal Care
portfolio: from premium brands to cost-conscious options, they are all designed to help
consumers get more out of their everyday lives, such as: Molto, Rinso, Cif, Sunlight,
WipoL,etc
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REFRESHMENT BRANDS
CHAPTER III
ANALYSIS
3.1 STRATEGY
Unilever built a strategy to help us achieve our purpose of making sustainable living
commonplace. We aim to double the size of our business whilst reducing our environmental
footprint and increasing our positive social impact.
Unilever are use both strategy, that are cost leadership and differentiation. Because in cost
leadership Unilever compete for a wide range of customers based on price. Its products prices
are based on internal efficiency to obtain a margin that allows it to sustain its business above
average profit or returns and cost to the customers. Based on this cost and return analysis that
determine the price, make customers to purchase a particular product. This strategy works
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well when the product or service is standardize, have generic qualities, fulfill customer needs
and offer lowest price with best quality. In order to become a cost leader a business should
keep an eye on the price strategy followed by its competitors and its continuous efforts to
keep its prices low relative to its competitors. This can include:
But Unilever seems like usually use differentation stategy to providing value to its customers
through unique features and characteristics of its products. This is done through high quality,
features, high customer service, rapid product innovation, advanced technological features,
image management, etc Unilever creates value by:
Lowering buyers costs with higher quality and quicker response to problems.
Sustainability
Higher quality products
Creating barriers by perceptions of uniqueness and reputation
Creating high switching costs through differentiation and uniqueness
Efficient customer service and focus on customers need
3.2 COMPETITOR
Unilever is a top maker of packaged consumer goods worldwide, Unilever products are sold
in more than 190 countries throughout Africa, Asia, Latin America, the Middle East, North
America, and Western Europe. The company's offerings span several categories, including
savory, dressings, and spreads; ice cream and beverages; personal care; and home care.
Unilever's portfolio boasts a dozen brands that each ring up more than 1 billion annually.
Best sellers include Hellmann's (mayonnaise), Knorr (soups), Lipton (tea), Dove and Lux
(soaps), and Sunsilk (hair care). Unilever is the operating arm of Netherlands-based Unilever
N.V. and UK-based Unilever PLC. But, every company excatly have some competitor, same
as Unilever have competitors to, such as:
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The Procter & Gamble Company is focused on providing branded consumer goods.
The Company had six business segments under United States Generally Accepted
Accounting Principles (GAAP) such as: Beauty; Grooming; Health Care; Snacks,
Coffee and Pet Care; Fabric Care and Home Care, and Baby Care and Family Care.
The products of P&G are head&shoulders, olay, pantene, Oral-B, VICKS, Downy,
Pampers,etc.
womens
hair
color,
beauty
tools,
fragrances,
skincare,
anti-
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include French's Mustard, the antiseptic brand Dettol, the sore throat medicine
Strepsils, the hair removal brand Veet, the air freshener Air Wick, Calgon, Clearasil,
Cillit Bang, Durex, Lysol, Mycil and Vanish.
Consumer Voice
Protecting
Consumers of fake
CUSTOMER
product
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Improve Work
brand to
health
and a
alignment
create
futuremeasures
around keybetter
brand-health
everyday, with brands
and service that can
help fell good, and
look good
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FINANCIAL
BUSSINES IN
PROCESS
LEARNING &
GROWTH
Financial
To build a compelling vision that all finance team members globally which is a team with
only nine global members. The team includes vice presidents of finance and finance
directors from different Unilever businesses around the world.
This team was developed to bring financial strategy life. This is accomplished by:
Result
This method drove significant improvement
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Customer
Business in Process
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Unilever business strategy is called the Compass. First developed in 2009, it sets out
their ambitious vision to double the size of the business, whilst reducing our
environmental footprint and increasing their positive social impact and their purpose
of making sustainability commonplace. The Compass also defines four nonnegotiable commitments within the business that Unilever believe will help them
achieve their purpose and vision, such as:
winning with brands and innovation;
winning in the market place;
winning through continuous improvement; and
winning with people, because developing and retaining the right quantity,
quality and diversity of people is crucial to our growth strategy
Tool
This tool aims to improve brand health by
Result
Dove Real Beauty CampaignThis tool
brand-health measures
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vary considerably between developed and emerging markets. Insight requires close
engagement with consumers, often over prolonged periods, and allows us to identify future
trends to gain a competitive edge. That knowledge helps us to target our subsequent R&D
activities and Unilever investments in innovation. Unilever has filed more than 200 new
patent applications in 2014 and our Partner To Win 2020 programme, also launched in 2014,
creates a new platform for us to work with our suppliers in the development of product and
packaging innovations that capture consumers interest and attention. Bringing these
innovations to market as physical products is a core function of Unilevers supply chain,
which employs about 110,000 of our 172,000 people. It also involves working with suppliers
around the world. Unilever itself manufactures the majority of its products and we maintain
an international network of 240 manufacturing sites. In sourcing large amounts of raw
materials we also have a direct impact on the environment. By sourcing sustainably, we can
protect scarce resources, ensure security of supply for our business and reduce price volatility
while protecting the environment and enhancing peoples lives, which is at the heart of our
Unilever Sustainable Living Plan (USLP). By the time manufacturing is under way
Unilevers marketing teams have worked with our category experts to define the complete
marketing mix, including communications, that makes our brands come alive.
Communicating the benefits of our products and brands to consumers is increasingly
complex, with digital communications and social media creating new and more direct ways to
engage alongside traditional media. Our logistics operations move Unilever products to
retailers and our go-to-market teams ensure that we get enough of the right products in the
right price bracket in the right sales channels for consumers to buy, be they stores or the fastgrowing e-commerce channel.
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1. CONSUMERS
4. SOURCING
SUSTAINABLE SOURCING
A fundamental requirement at
Unilever is to understand our
consumers. We use focus groups
and quantitative studies and spend
time with consumers in stores and
in their homes to find out what is
important to them as citizens as
well as consumers so unilever can
create products they need and
want. Unilever carelines are also a
rich source of information. Digital
communications and social media
mean unilever can engage with
large
numbers
of
people
consistently over long periods of
time so unilever can immerse
ourselves in their day-to-day lives.
Unilever can use online search data
to identify and anticipate future
2.consumer
INNOVATIONtrends and gain a
competitive edge
TECHNOLOGY AT WORK R&D
is an engine of sustainable growth;
Unilever spends around 1 billion
on R&D annually. Our 6,000 R&D
professionals are responsible for
building brands through benefit-led
innovation, which is unlocked
through science and technology.
This includes looking at long-term
emerging science and transforming
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into technologies which are
used to design branded products.
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8. SALES
5. MANUFACTURING
GLOBAL SCALE, LOCAL AGILITY
Unilever make the majority of what
they sell through a network of more
than 240 manufacturing sites
around the world. Unilever have
invested
significantly
in
our
factories in recent years to create
an efficient, reliable and more
sustainable network. Unilever are
now able to maximise the global
scale of our operations, while
having the agility to meet local
demands.
More
eco-efficient
production is helping them meet
the USLP targets, so by the end of
January 2015, for instance, all
factories had achieved zero nonhazardous
waste
to
landfill,
producing 140,000 tonnes less
waste.
6. LOGISTICS
CENTRALISED LOGISTICS EXPERTISE
How Unilever move products from
factories to customers is the role of
our logistics operation. Unilever are
now rolling out unilever global
network of logistics centres that
organise
movement of
goods
centrally and more efficiently,
delivering savings, reduced stocks,
reduced carbon emissions and
improved customer service. These
operational
hubs now allow us to
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centralise
other
services
too,
including monitoring orders from
customers through to payment.
GO-TO-MARKET EXPERTISE
Unilever work closely with retailers
to win in the market place and
make sure that their brands are
always available, properly displayed
and in the right price bracket.
Unilever go-to-market capability
ensures that Unilever become the
supplier of choice for customers
and trade partners, through strong
joint business planning and in-store
execution
via
Perfect
Store
programmes,
to
help
deliver
sustainable sales growth. This is
essential for they to be able to add
premium brand extensions to our
product
ranges,
land
product
innovations on the shelves, enter
new geographies and markets, and
ttheir distribution strength to
7. build
MARKETING
reach new consumers.
GENERATING CONSUMER-LED GROWTH
Unilever spend about 7 billion
annually
on
marketing,
making
unilever one of the worlds biggest
advertisers. This ensures that our
brands and products are consumers
first choice. They use multiple media to
achieve cut-through in a highly
competitive and busy world. Traditional
media channels continue to play a big
part but digital communications have
revolutionised the way marketing
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new sales and marketing opportunities.
They create our own entertainment
content,
including
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Strengths
Unilever operates in nearly 190 countries around the world and hence, has a
global footprint combined with top of the mind brand recall among consumers
worldwide.
It has a deep and broad portfolio of brands and a diversified product range, which
makes it uniquely, positioned to tap into the changing consumer preferences
across the world.
Its Research and Development initiatives are heavily funded and manage to bring
to the market innovative and cutting edge products in tune and in line with
consumer preferences.
Unilever has a distinct competitive advantage over its nearest competitor, Proctor
and Gamble because of its flexible pricing and expertise in distribution channels
that manage to reach the nook and the corner of the globe.
The company finds its strengths in leveraging the economies of scale arising from
its breadth of operations as well as synergies between its many manufacturing
facilities, which totaled 270 locations around the world at last count.
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Unilever combines global thinking with local execution, which means that it
pursues Global strategies that let it win the hearts and minds of consumers who
would like to use its products that are globally famous yet retain a distinct local
flavor.
Weaknesses
The biggest weakness that Unilever faces is that it operates in an uber competitive
market where the other global giants like P&G and Nestle in addition to a host of
local players challenge its dominance at every turn and raise the stakes in the
Trillion Dollar FMCG (Fast Moving Consumer Goods) space.
The other weakness is that its products can easily be replaced with substitutes
especially in the emerging markets in Africa and Asia where the rural consumers
in the hinterland often use traditional and natural alternatives to the products that
Unilever markets.
Opportunities
With the advent of globalization and the proliferation of global media, consumers
in the emerging markets are aspiring to western lifestyles and this means that
Unilever has a tremendous opportunity waiting for it as it taps into this large and
diversified consumer base that wants to join the league of westerners in taste and
preferences for consumer goods.
Apart from that, capturing the Newly Affluent Trillion Dollar Consumers in
China and India means that it has a golden opportunity to leverage this huge and
growing consumer base, which often tries to imitate and mimic the consumerist
preferences of the material west.
The emergence of the health conscious consumer in the developed world means
that Unilever can seize the opportunity to market to this segment with its existing
and yet to be launched product range that is specially geared for the health
conscious consumer.
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Unilever has a good track record of social and environment responsibility and
with the emergence of the ethical chic consumer who like to buy and consume
products and brands that are responsibly made and sustainably complete
Threats
The ongoing global economic crisis has severely dented the profitability of many
FMCG companies and Unilever is no exception. With the shrinking of the
disposable incomes of the global consumer, they are buying less and insisting on
more value for their money or more bang for the buck. This means that Unilever
faces the threat of diminished revenues and increasing costs, which is like a
Double Whammy to its top-line, and bottom-line.
The increased awareness among the global consumers has turned the harsh glare
into each and every strategic move that the company makes. Some practices of the
company have been criticized which means that Unilever has to ensure that it
sustains and maintains its focus especially when the spotlight is on it.
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Values
48,436m
$87bn
27%
7,980m
Values
17,739bn
3,607m
12.9%
50.1%
Values
$5,986m
$5,821m
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against each unique stock keeping unit (SKU) code although this was problematical due to
many obsolete product variants.
Now, Unilever UK Ice Cream then decided to replace the legacy system and switch to a timebased activity management solution. It has helped the company to cut administrative costs,
reduce absence, and gain a new insight into production activities. Unilever UK Ice Cream
owns the Wall's ice cream factory in Gloucester. Employing 486 people, there are ten ice
cream production lines making around three million ice cream products a day.Wall's-branded
products include Cornetto, Magnum, and Viennetta
This would extend the analysis capabilities from the simple categories such as 'production' or
'training' to more detailed activity codes.These would show which production line or officebased task was involved. Unilever wanted to get everybody to clock including the site
manager, their business drivers were about simplification and moving to an activity-based
costing model.
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In its consumer, this material serves as a filler of the total raw materials. Provision of filler
material is intended to increase or raise the volume. Certain additives production volume here
using Sodium Sulfate (Na2SO4).
3. Supporting Materials
We can use the supporting material of soda ash (Na2CO3) in the form of a white powder. The
supporting material serves as a clean boost. The existence of these materials in the detergent
should not be too much, because it can cause heat effects on the hands when washing clothes.
4. Additive (additive)
Adirif prevents dirt back into clothes, this additional material should not actually exist in the
manufacture of detergents. One example of this additional material is Enzymes AR-shaped
white powder.
5. Materials deodorizer / Seed Perfume
One advantage of the presence of these fragrance materials is that a detergent with good
quality, Perfume is usually used for detergent shaped yellowish liquid. Selection of perfume
is very important, because usually consumers always feel the first fragrance of items to be
purchased, a new attempt to use the product.
Mix all the raw material to the equipment
SLES
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NA2CO3
Enzymes AR
Parfume Seed
Mixing
The hot
liquid
condensed
Raw
Material
(Liquid)
Packaging
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Crushing
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Powder
agglomera
te
The hot
liquid
condensed
Unilever thoroughly believeif they want to sustain stay in this market and maintain
product cycle follow the Six Sigma method . They do several things to maintain quality.
1.Uniliver research discovery system (Define and Measure)
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They have made good research teams in varies countries to find data and information
of their product related things. Though that they apply additional stuffs to improve
their quality of products.
Unilever research is looking at what mans distant ancestors ate to see how it
could enhance modern-day nutrition.
Background sound played during a meal can significantly affect how food
tastes, according toresearch conducted by Unilever R&D in collaboration with
the University of Manchester.
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environmental footprint from the making and use of their products as Unilever grow
their business.
3.Health & well-being (Improve)
Unilever's unique portfolio of food, home and personal care products can make a
difference to the health and well-being of people everywhere. Every day people all
around the world use Unilever products from their first cup of tea in the morning,to
when they brush their teeth at night before going to bed. Many of Unilever products
have clear health benefits: eating margarine instead of butter can help reduce your
daily intake of saturatedfats while using fluoridated toothpaste can help protect teeth
from decay. As part of Unilever Sustainable Living Plan,Unilever have set ourselves a
bold new target for improving health and well-being: By 2020, they will help more
than a billion people take action to improve their health and well-being
4.Quality work force (Control)
It is vital, Unilever have people with the right talent, skills and creativity to support
our growth ambitions. To ensure our long-term prosperity, they want everyone to be
healthy, motivated andcommitted. As part of Sustainable Living Plan, they have set
ourselves new targets for creatinga better workplace. These include reducing
workplace injuries and accidents and improving employee health and nutrition
3.9.1 Cost of Quality
Unilever follow strictly the rules of the Japan Institute of Plant Maintenance, the name is
Total Productive Maintenance (TPM) is a business process improvement method,
developed from the perspective of maintenance management. TPM concentrates on
productivity improvement, primarily by way of maximizing the availability of equipment.
In the European Union, Unilever is one of the biggest propagandists of TPM. This food
multinational has used this improvement method for over 15 years, during which it has
grown into an overarching process management system. So, the implementation in
Unilever is done pillar-by-pillar. There are more then hundred steps, but Unilever do not
experience that as bureaucratic
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Quality management
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Broadly, Unilever splits our supply chain into four main areas:
Supply Management
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Planning
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Manufacturing
Planning This is at the heart of our supply chain and it starts with the consumer.
First Unilever have to predict what products their consumers will be buying both
tomorrow and in two years time. This forecast is the foundation for everything else
it shapes which factories produce which products around Europe; it guides exactly
what their factories plan to produce everyday and the deliveries that they need from
our suppliers just in time to support that production plan; and it allows us to plan how
much of each product we need to move to each country around Europe before it is
ordered by the retailers in that country.
Manufacturing Here Unilever convert all our raw and packaging materials into the
products our consumers love. Not only that, their factories have to respond to the
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increases and decreases in demand that occur every day in the marketplace. The
main responsibilities for manufacturing are improving efficiencies, ensuring product
quality and reaching the correct output at the right costs. Theres a real breadth of
roles here, not just engineering type jobs, but plenty of roles where leadership of our
factory teams makes all the difference.
Logistics & Customer Service (Retail) This is the moment of truth can they
deliver the product a consumer wants to the right supermarket shelf? If this goes
wrong, then all the effort put in so far is for nothing. We work at the interface
between Unilever and their retail customers, working together to plan exactly what to
deliver and when to every single shop. Then it boils down to having the right
stock in our warehouses from our factories and having the transportation in place to
deliver that stock exactly on time to the retailer warehouse every day. Unilever also
work closely with the retailers to improve how reliably our products make it from
their warehouses all the way to the shelf
3.11 JIT SYSTEM
Unilever using just-in-time delivery system products. For example, when Unilever
send products to Carrefour. Carrefour will periodically count using sampling method
regarding what Unilever products are sold every day, (even more focused when the
weekend). And asks Unilever to deliver the amount of product that Carrefour need.
Therefore, it is certain Unilever send the products to the Carrefour in a timely manner
according to the situation of goods stock in Carrefour, because of that Unilever hpe
that customer are satisfied with the Unilever products.
3.12 CSR ACTIVITIES THAT ALREADY DONE BY UNILEVER
The Unilever Sustainable Living Plan is our blueprint for achieving our vision to
double the size of the business, whilst reducing our environmental footprint and
increasing our positive social impact.
Faced with the challenge of climate change and the need for human development, we
want to move towards a world where everyone can live well and within the natural
limits of the planet. Thats why their purpose is to make sustainable living
commonplace
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Unilever ambition is to double the size of their business, whilst reducing their overall
environmental impact (including sourcing, consumer use and disposal). Unilever are
also committed to doing what we can to improve health, nutrition and hygiene, with a
target to help more than a billion people take action to improve their health and wellbeing, as well as sourcing all their agricultural raw materials sustainably by 2020. All
of these goals are itemised in around 50 time-based commitments in our Unilever
Sustainable Living Plan
Press Release
Press Release
Press Release
Event
Press Release
Press Release
Press Release
Press Release
Press Release
Press Release
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Submission Title
Press Release
Press Release
Press Release
Press Release
Report
Press Release
Press Release
Press Release
Press Release
Press Release
Press Release
Press Release
Press Release
UNILEVER
Unilevers health soap Lifebuoy has announced the results of its Help A Child Reach 5
handwashing programmes launched in Thesgora, India, noting an overwhelming drop in the
incidence of diarrhoea: from 36% to 5%
The decrease in diarrhoea in this village known for having one of the highest rates in India
of this deadly yet preventable disease was observed over the period of Lifebuoys
intervention in an independent evaluation of 1485 households with children aged below 12
years, conducted by Nielsen in September 2013.
Lifebuoys Help A Child Reach 5 campaign aims to eradicate preventable deaths from
diseases like diarrhoea through teaching lifesaving handwashing habits. The campaign was
launched with an award winning film Gondappa (www.youtube.com/helpachildreach5) and
handwashing initiatives in Thesgora, a village in Madhya Pradesh.
The results achieved show that handwashing programmes have significant positive impact on
both the handwashing behaviours and the health of a community. Lifebuoys handwashing
programmes are now being rolled out to villages across 14 countries (Bangladesh, Brazil,
Egypt, Ghana, India, Indonesia, Kenya, Malaysia, Nigeria, Pakistan, South Africa, Sudan,
Uganda and Vietnam) and scaled up in India to reach 45 million people.
Samir Singh, Lifebuoys Global Brand Vice President, explains, Lifebuoys Help A Child
Reach 5 campaign has demonstrated excellent results in Thesgora and we will now be
scaling up this campaign globally. To date, Lifebuoy has impacted the handwashing
behaviours of 183 million people in 14 countries and the results of our efforts so far prove
that when a social mission is embedded into a successful brands core values, significant and
indeed lifesaving change can happen fast.
Worldwide, one child dies from diarrhoea or pneumonia every 15 seconds, amounting to 2.1
million deaths each year. Handwashing with soap is the most cost-effective way to prevent
child deaths and contribute to Millennium Development Goal 4 (MDG4) towards reducing
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child mortality. Put simply, the simple but lifesaving act of handwashing with soap could help
many more children reach the age of five.
More than 2.5 billion people still lack effective sanitation, good hygiene and safe drinking
water. Tackling these issues can achieve a big impact on the diseases that cause ill health and
cost lives. To achieve better health outcomes and lower costs Unilever will try to address all
three together. Unilever has leading brands Lifebuoy, Pureit and Domestos that can make
a difference in these three areas.
Next to the 183 million people reached by Lifebuoys handwashing programmes, Pureit is
providing safe drinking water to 55 million people. Both brands have worked closely with
others such as PSI, a Unilever Foundation partner. Domestos and the Unilever Foundation are
partnering with UNICEF to scale up its Community Approaches to Total Sanitation
programme.
This adds to the ambitious goal of Unilever to help more than a billion people improve their
hygiene habits by 2015. On 28 April this year, the Unilever Sustainable Living Report 2013
will be published, and it will confirm that Unilever has reached around 303 million people
through its programmes of handwashing, safe drinking water, oral health and self-esteem.
Unilevers health soap brand, Lifebuoy, puts its social purpose at the heart of its innovation
and engagement with consumers. The Lifebuoys handwashing programmes are not only
helping to change habits to combat disease expert studies have shown that washing hands
with soap at critical moments during the day can dramatically cut the incidence of lifethreatening diseases like diarrhoea. They are also driving volume growth in key markets.
Lifebuoy has achieved three years of double-digit growth to become the worlds number one
anti-bacterial brand.
3.13 ENVIRONMENTAL ACCOUNTING
Environmental accounting is a field that identifies resource use, measures and communicates
costs of a companys or national economic impact on the environment. Costs include costs to
clean up or remediate contaminated sites, environmental fines, penalties and taxes, purchase
of pollution prevention technologies and waste management costs. And this is an
enviromental accounting from Unilever :
Emissions & Energy
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In 2008, the company reduced CO2 emissions by 1.6% per tonne of production
compared to 2007.
Unilever has reduced the carbon intensity of its energy use by 39% between 1995
and 2008. This represents a 43% reduction in absolute terms.
The company is investing in more efficient power and steam generation technology
and the development of less energy intensive manufacturing processes. For example:
In Europe, Unilever has at least three CHP plants which use waste steam and hot
water to generate electricity.
The Cu Chi factory in Vietnam uses solar panels to preheat water for steam
generation.
2m point-of-sale ice cream freezer cabinets are being replaced with energyefficient HC alternatives.
The company plans to reduce indirect impacts by working with customers and
suppliers to address wider impacts. For example, Ben & Jerry's has a Lick Global
Warming campaign and an ice cream flavour called Fossil Fuel.
Around 4m tonnes of CO2 are produced each year because of Unilever's transport
and product distribution requirements
Water
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Since 1995, Unilever has reduced the amount of water used per tonne of production
by 63% by minimising water use and maximising water recycling.
During 2008, there was a 3% reduction in water intensity compared to 2007 from
3.05 m3 to 2.96 m3 per tonne of production.
The water intensity of food production has dropped from 5.27 m3 in 2003 to 4.23
m3 in 2007 per tonne of production.
Products aimed at reduced consumer water consumption include the One Rinse
Comfort fabric conditioner. In Vietnam, One Rinse Comfort reduces the water needed
by two-thirds and sales rose by nearly 30% in 2008.
Waste
Waste intensity has reduced by 68% per tonnes of production between 1995 and
2008, despite a 4.3% increase in the last year (7.56 kg/tonnes in 2007 to 7.89
kg/tonne).
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Changing packaging design is one of the ways in which the company wants to use to
reduce waste impacts.
The PVC policy commits to replacing PVC in all packaging by the end of 2010,
where there are viable alternatives.
Resources
Agricultural and forestry crops make up around half by volume of raw materials used
by Unilever.
Following a public challenge by Greenpeace, Unilever has agreed to draw all their
palm oil from certified sustainable sources by 2015.
Unilever have also agreed to support a moratorium on further deforestation in SouthEast Asia.
At the end of 2009 around 80% of Lipton Yellow Label and PG tips tea sold in
Western Europe came from Rainforest Alliance Certified farms
Unilever also uses paper and board, plastic, glass, aluminium, steel and mixed
material laminates (for sachets and pouches) in its manufacturing processes.
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1. Environmental
We want to play our part in tackling climate change and the depletion of natural resources. It
makes business sense to reduce our risk by securing sustainable sources of supply for raw
materials, to cut costs through reducing packaging materials and higher manufacturing
efficiencies, and to appeal to more consumers with sustainable brands.
On the planet level, Unilever is doing a lot of environmental based initiatives with reducing
energy and water consumption, recycling, reducing waste, carbon emissions, reduced
packaging and more. Unilever focus on enviromental, which is :
This are that Unilever perfomance do for enviromental around the world :
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Water associated with consumer use of Unilever products down 2% versus 2010
Waste associated with the disposal of Unilever products down 12% versus 2010
In manufacturing, CO2 emissions from energy now 37% below 2008 levels; water
abstraction down 32%; and total waste sent for disposal down 85% (all measured per
tonne of production)
Unilever global factory network achieved zero non-hazardous waste to landfill by end
2014
2. Economic
Unilever had to focus on issues offering opportunities for growth, long-term success in key
markets, continuous innovation and of course for these brands, a strengthening of consumer
trust. The sweet spot for Unilever was where products that benefited society could also spur
the companys continued growth. The conventional approach towards conducting business for
most companies, the pursuit of profits at any environmental or social cost, was no longer
tenable. Nor could the company pursue a quixotic course of doing good while losing money
that was hardly a sustainable course for Unilevers employees and shareholders.
The sweet spot that Unilever implemented in their bussines :
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With this sweet spot Unilever get the sales growth rose 3.7%, the multinational consumer
goods company announced on 24 July 2014
Unilever fell that this is the first half again shows consistent top and bottom line progress
despite significant headwinds. Markets have been challenging and we have experienced a
further show-down in the emerging countries, while developed markets are not yet picking up
Magnum mini varietyIce cream brands performed well. Magnum benefited from a strong
program of activities including its 25th anniversary, the launch of Magnum Infinity in the
United States and Indonesia, and the introduction of Magnum Mini in Brazil.
Ice cream is part of Unilevers refreshment product group, which generated EUR 4.9 billion
in turnover (+5.1% in sales and +3.3% in volume). Receipts in the foods category slipped to
EUR 6.1 billion (-0.5% in sales and -0.9% in volume). Personal care products accounted for
EUR 8.6 billion of revenues (+4.5% and 2.4%, respectively), while home care products
generated EUR 4.5 billion (+6.8% and +3.7%, respectively)
3. Social
This are for the employee :
The makers of Lifebuoy and Lux soaps focused on employee well-being and
security,
With one of its most generous programs being the construction of employee
The eventual results, which led to the November 2010 launch of Unilevers Sustainable
Living Plan, ranged from the companys promotion of life-saving behaviors to its funding and
organization of renewed economic opportunities. Examples abound throughout Unilevers
brand portfolio:
Lifebuoy, a decades old brand of soap embedded in our popular culture, has the
potential to teach one billion people how to stop the spread of disease simply by
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Lipton improves the lives of farm workers while improving the land on which they
cultivate the brands tea, through the purchase of more Rainforest AllianceTM-
certified tea.
Suave is tasked with motivating customers to consume less water while using its line
of shampoo and body washes.
Unilever has taken a holistic approach towards sustainability challenges by leveraging the
strengths of brands, not programs, to strive for that triple bottom line of people, planet and
profit. Whether teaching, rewarding or conserving, each Unilever brand now is responsible
for a push to change consumer behavior for the better, increase sales and inspire social good
over the next decade.
CHAPTER IV
CONCLUSION AND SUGGESTION
Conclusion :
By my analysis I have found that, Unilever is globally successful company. They create
brands for specific countries nd regions. Products for example, found in south America will
not found in south Asian countries. Since difference in culture exists worldwide, tthe creation
and supply of brands have to be taken seriously. The Unilever products are able to gain
customer satisfaction and trust. Their production and distribution is expading rapidly.
Unilever is starting to consider how they make Unilevers corporate commitments and
activities more visible and relevant to their consumer
Suggestion :
Unilever has room for further improvement. A recommendation is to improve policies to
accommodate diversity. Higher diversity is inevitable in global business, and the company
must take advantage of it. Also, Unilever can implement improvements in information
technologies. These technologies can support workers in all areas through advanced tools for
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market research, customer relations and internal communications. These improvements can
help strengthen the firms organizational culture of performance.
I suggest to Unilever to emphasize again on their product development strategy. Unilever as
the market leader, must innovate and improve product quality them.If Unilever not to
innovate and improve product quality, consumers will feel bored to their products, so that
customer satisfaction will decrease, the red light for Unilever.
REFERENCES
https://www.unilever.com/about/safety-and-enviroment/environmental-safety
https://www.unilever.com/about/safety-and-enviroment/environmental-sustainability/
http://www.crowncomputing.com/wp-content/uploads/2012/04/Unilever.pdf
https://www.unilever.com/investor-relations/annual-reports-and-accounts/
http://www.csrwire.com/members/16348-Unilever
https://www.unilever.com/careers/professionals/supply-chain/
http://www.euromonitor.com/unilever-group-in-beauty-and-personal-care/report
http://www.bloomberg.com/bw/articles/2013-01-03/in-emerging-markets-unilever-finds-apassport-to-profit
http://spiderbook.com/unilever-competitors.html
http://www.academia.edu/3229962/CSR_Practice_and_Reporting_in_PT_Unilever_Indonesi
a_Tbk
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https://www.unilever.com/sustainable-living/the-sustainable-living-plan/reducingenvironmental-impact/eco-efficiency-in-manufacturing/environmental-management-system/
https://www.academia.edu/4179474/Managing_quality_at_Unilever
https://www.unilever.com/about/who-we-are/our-strategy/
https://www.unilever.com/brands/
http://www.csreurope.org/unilever-sustainable-tea-certification-lipton-rainforestalliance#.Vlu_dnYrLIU
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