1.

Introduction

1.1 Definition of Management

It is very difficult to give a precise definition of the term management. Different management authors
have viewed management from their own angles moreover, during the evolutionary process of
management different thinkers laid emphasis on different expects. For example, F.W. Taylor emphasized
engineering aspects, Elton Mayo laid emphasis on human relations aspects, E.F.L, Brech, George R.
Terry emphasis on, decision making aspect, Ralph Davis stresses leadership aspect and some other like
Barry Richman etc. emphasized integration or coordination aspect.

Some Important Definition of Management

1. Harold Koontz
Management is the art of getting things done through and with people in formally organized groups.

2. George R. Terry
Management is a disconnect process consisting of planning organizing activating and controlling
performed to determine and accomplish the objectives by the use of people and resources.

3. Donald J. Cough
Management is the art and science of decision making and leadership.

4. Mary Cushing Nile

Good Management, or scientific management, achieves a social objective with the best use of human and
material energy and time, and with satisfaction for the participants and the public.

5. Henry Fayol
To manage is to forecast, to plan, to organize, to command, to coordinate, and to control.

6. Theo Haimann and William Scott

Management is a social and technical process which utilizes, resources, influences, human action and
facilitates changes in order to accomplish organizational goals.

Management is the organizational process that includes strategic planning, setting; objectives, managing
resources, deploying the human and financial assets needed to achieve objectives, and measuring results.
Management also includes recording and storing facts and information for later use or for others within
the organization. Management functions are not limited to managers and supervisors. Every member of
the organization has some management and reporting functions as part of their job.
Management is a universal phenomenon. It is a very popular and widely used term. All organizations -
business, political, cultural or social are involved in management because it is the management which
helps and directs the various efforts towards a definite purpose. According to Harold Koontz,
“Management is an art of getting things done through and with the people in formally organized groups. It

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is an art of creating an environment in which people can perform and individuals and can co-operate
towards attainment of group goals”. According to F.W. Taylor, “Management is an art of knowing what
to do, when to do and see that it is done in the best and cheapest way”.

Management is a purposive activity. It is something that directs group efforts towards the attainment of
certain pre - determined goals. It is the process of working with and through others to effectively achieve
the goals of the organization, by efficiently using limited resources in the changing world. Of course,
these goals may vary from one enterprise to another. E.g.: For one enterprise it may be launching of new
products by conducting market surveys and for other it may be profit maximization by minimizing cost.

Management involves creating an internal environment: - It is the management which puts into use the
various factors of production. Therefore, it is the responsibility of management to create such conditions
which are conducive to maximum efforts so that people are able to perform their task efficiently and
effectively. It includes ensuring availability of raw materials, determination of wages and salaries,
formulation of rules & regulations etc.

Therefore, we can say that good management includes both being effective and efficient. Being effective
means doing the appropriate task i.e., fitting the square pegs in square holes and round pegs in round
holes. Being efficient means doing the task correctly, at least possible cost with minimum wastage of
resources.

1.2 Management Function

According to the functions approach managers perform certain activities to efficiently and effectively
coordinate the work of others. They can be classified as

1) Planning involves defining goals, establishing strategies for achieving those goals, and developing
plans to integrate and coordinate activities.

2) Organizing involves arranging and structuring work to accomplish the organization’s goals.
3) Directing involves give direction to the staff and how to do their jobs.

4) Leading involves working with and through people to accomplish organizational goals.

5) Controlling involves monitoring, comparing, and correcting work performance. Since these four
management functions are integrated into the activities of managers throughout the workday, they should
be viewed as an ongoing process and they need not the done in the above sequence.

Every organization, regardless of size, has developed and implemented its own management concepts in
order for it to run smoothly and accomplish the vision, goals and objectives it has set forth. As such, the
basic functions of management, broken down into four different areas, allow for it to handle the strategic,
tactical and operational decisions for the organization. The four functions of management are: planning,
organizing, directing, and controlling.

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1.2.1 Planning

Planning is the core area of all the functions of management. It is the foundation upon which the other
three areas should be building. Planning requires management to evaluate where the company is
currently, and where it would like to be in the future. From there an appropriate course of action to attain
the company's goals and objectives is determined and implemented.

The planning process is ongoing. There are uncontrollable, external factors that constantly affect a
company both positively and negatively. Depending on the circumstances, these external factors may
cause a company to adjust its course of action in accomplishing certain goals. This is referred to as
strategic planning.

During strategic planning, management analyzes internal and external factors that do and may affect the
company, as well as the objectives and goals. From there they determine the company's strengths,
weaknesses, opportunities and threats. In order for management to do this effectively, it has to be realistic
and comprehensive.

1.2.2 Organizing

Getting organized is the second function of management. Management must organize all its resources in
order to implement the course of action it determined in the planning process. Through the process of
getting organized, management will determine the internal organizational structure; establish and
maintain relationships, as well as allocate necessary resources.

In determining the internal structure, management must look at the different divisions or departments, the
coordination of staff, and what is the best way to handle the necessary tasks and disbursement of
information within the company. Management will then divide up the work that needs to be done,
determine appropriate departments, and delegate authority and responsibilities.

1.2.3 Directing

The third function of management is directing. Through directing, management is able to influence and
oversee the behavior of the staff in achieving the company's goals, as well as assisting them in
accomplishing their own personal or career goals. This influence can be gained through motivation,
communication, department dynamics, and department leadership.

Employees that are highly motivated generally go above and beyond in their job performance, thereby
playing a vital role in the company achieving its goals. For this reason, managers tend to put a lot of focus
on motivating their employees. They come up with reward and incentive programs based on job
performance and geared toward the employees' needs.

Effective communication is vital in maintaining a productive working environment, building positive

interpersonal relationships, and problem solving. Understanding the communication process and working
on areas that need improvement help managers to become more effective communicators. The best way to
find areas that need improvement is to periodically ask themselves and others how well they are doing.

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1.2.4 Leading

Leading involves the social and informal sources of influence that you use to inspire action taken by
others. If managers are effective leaders, their subordinates will be enthusiastic about exerting effort to
attain organizational objectives. The behavioral sciences have made many contributions to understanding
this function of management. Personality research and studies of job attitudes provide important
information as to how managers can most effectively lead subordinates. For example, this research tells
us that to become effective at leading, managers must first understand their subordinates’ personalities,
values, attitudes, and emotions. Studies of motivation and motivation theory provide important
information about the ways in which workers can be energized to put forth productive effort. Studies of
communication provide direction as to how managers can effectively and persuasively communicate.
Studies of leadership and leadership style provide information regarding questions, such as, “What makes
a manager a good leader?” and “In what situations are certain leadership styles most appropriate and
effective?”

1.2.5 Controlling

Controlling is the last of the four functions of management. It involves establishing performance
standards based on the company's objectives, and evaluating and reporting actual job performance. Once
management has done both of these things, it should compare the two to determine any necessary
corrective or preventive action.

Management should not lower standards in an effort to solve performance problems. Rather they should
directly address the employee or department having the problem. Conversely, if limited resources or other
external factors prohibit standards from being attained, management should lower standards as needed.

The control process, as with the other three, is ongoing. Through controlling, management is able to
identify any potential problems and take the necessary preventative measures. Management is also able to
identify any developing problems that need to be addressed through corrective action.

In order for management to be considered successful, it must attain the goals and objectives of the
organization. This requires creative problem solving in each of the four functions of management. More
so, success requires that management be both effective and efficient. Therefore, it needs to not only
accomplish those goals and objectives, but do it in a way that the cost of accomplishment is viable for the
company.

1.3 Management Roles

In the late 1960s, Henry Mintzberg conducted a precise study of managers at work. He concluded that
managers perform 10 different roles, which are highly interrelated. Management roles refer to specific
categories of managerial behavior. Overall there are ten specific roles performed by managers which are
included in the following three categories.

1) Interpersonal roles include figurehead, leadership, and liaison activities.

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2) Informational roles include monitoring, disseminating, and spokesperson activities.

3) Decisional roles include entrepreneur, disturbance handler, resource allocator, and negotiator.

Although the functions approach represents the most useful way to describe the manager’s job,
Mintzberg’s roles give additional insight into managers’ work. Some of the ten roles do not fall clearly
into one of the four functions, since all managers do some work that is not purely managerial.

2. Challenges for Management

Understanding organizational behavior has never been more important for managers. Take a quick look at
the dramatic changes in organization. The typical employee is getting older; more women and people of
color are in the workplace; corporate downsizing and the heavy use of temporary workers are serving the
bond of loyalty that tied many employees to their employers, and global completion requires employees
to become more flexible and cope with rapid change.

In short, today’s challenges bring opportunities for managers to use OB concepts. In this session we
review some most of the critical issues confronting managers for which OB offers or at least meaningful
insight towards solutions.

2.1 Responding to Economic Pressure

During difficult economic time, effective management is often at premium. Anybody can run a company
when a business is booming because the difference between good and bad management reflects between
making a lot of money and making a lot more today. When times are bad, who are asked to make due
with less, and who worry about their futures. The difference between good and bad management can be
difference between profit and loss or, ultimately, between survival and failure.

2.2 Responding to Globalization

Organizations are no longer constrained by national borders. Burger king is owned by a British firm, and
McDonald’s sells hamburgers in Moscow. New Employees at Finland Based phone maker Nokia are
increasingly being recruited from India, China, and other developing countries-non-Finns now outnumber
Finns at Nokia’s renowned research centre in Helsinki.

The world has become a global village. In the process, the manager’s job has changed.

I. Increased Foreign Assignments

If you are manager, you are increasingly likely to find yourself in foreign assignment transferred to your
employer’s operating division or subsidiary in another country. Once there, you’ll have to manage a
workforce very difficult in needs, aspirations, and attitude from those you used to back home.

II. Working with people from different cultures

Even in your own country you’ll find yourself working with bosses, peers, and other employees born and
raised in different cultures. What motivates you may not motivate them, or your communication style

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may be straightforward and open, which others may find uncomfortable and threatening. To work
effectively with people from different cultures, you need to understand how their culture, geography, and
religion have shaped them and how to adapt your management style to their differences.

III. Overseeing movement of jobs to countries with low cost labor

It’s increasingly difficult for managers in advanced nations, where minimum wages are typically $6 or
more an hour, to compete against firms that rely on workers from China and other developing nations
where labor is available for 30 cents an hour. It’s not by chance that many in United States wear clothes
made in China work on computers whose microchips came from Taiwan, and watch movies filmed in
Canada. In a global economy, jobs tends to flow where lower costs gives businesses a comparative
advantages, though labor groups, politicians and local community leaders see the exporting of jobs as
undermining the job market at home.

2.3 Managing Workforce Diversity

Workforce diversity acknowledges a workforce of women and men; many racial and ethnic groups;
individuals with a variety of physical or psychological abilities; and people who differ in age and sexual
orientation. Managing this diversity is global concern. Most European countries have experienced
dramatic significant number of immigration from the Middle East; Argentina and Venezuela host a
significant number of migrants from South American countries; and nations from India to Iraq find great
cultural diversity within their borders.

2.4 Stimulating Innovation and Change

Today’s successful organization must foster innovation and master the art of change, or they’ll become
candidates for extinction. Victory will go to the organization that maintain their flexibility, continually
improve their quality, and beat their competition to the marketplace with a constant stream of innovative
products and services. Domino’s single handedly brought on the demise of small pizza parlors who
manager thought they could continue doing what they had been doing for years.

An organization’s employees can be the impetus for innovation and change, or they can be major
stumbling block. The challenges for the manager are to stimulate their employees’ creativity and
tolerance for change. The field of OB provides a wealth of ideas and techniques to aid in realizing these
goals.

2.5 Working in Networked Organizations

Networked organizations allow people to communicate and work together even though they may be
thousands of miles apart. Independent contractors can telecommute via computers and workplaces around
the globe and change employers as the demand for their services changes. Software programmers, graphic
designers, system analysts, technical writers, photo researcher, book and media editors, and medical
transcribers are just a few examples of people who can work from home of other non-office locations.

The manager’s job is different in networked organization. Motivating and leading people and making
collaborative decisions online require different techniques then when individuals are physically present in

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a single location. As more employees do their jobs by linking to others through network, manager must
develop new skills.

2.6 Helping Employees Balance Work-Life Conflicts

How do work-life conflicts come about? First, the creation of global organization means the world never
sleeps. At any time on any day, thousands of General electric employees are working somewhere. They
need to consult with colleagues or customers eight or ten time zones away means many employees of
global firms are “on call” 24 hours a day. Second communication technology allows many technical and
professional employees to their work at home, in their cars, or on the beach but it also means many feel
like they never really get away from the office. Third, organizations are asking employees to put in longer
hours.

Employees increasingly recognize that work infringes on their personal lives, and they’re not happy about
it. Recent studies suggest employees want jobs that give them flexibility in their work schedules so they
can better manage work-life conflicts. In fact, balancing work and life demands now surpasses job
security as an employee priority.

2.7 Creating a Positive Work environment

A real growth are in OB research is positive organizational scholarships (also called positive
organizational behavior), which studies how organization develop human strengths, foster vitality and
resilience, and unlock potential. Researcher in this area says too much of OB research and management
practice has been targeted towards identifying what’s wrong with organizations and their employees. In
response, they try to study what’s good about them. Some key independent variables in positive OB
research are engagement, hope, optimism, and resilience in the face of strain.

3. Organization

3.1 History of Unilever

In the 1890s, William Hesketh Lever, founder of Lever Bros, wrote down his ideas for Sunlight Soap –
his revolutionary new product that helped popularize 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'.

In a history that now crosses three centuries, Unilever's success has been influenced by the major events
of the day – economic boom, depression, world wars, changing consumer lifestyles and advances in
technology. And throughout we've created products that help people get more out of life – cutting the
time spent on household chores, improving nutrition, enabling people to enjoy food and take care of their
homes, their clothes and themselves.

Balancing profit with responsible corporate behavior

In the late 19th century the businesses that would later become Unilever were among the most
philanthropic of their time. They set up projects to improve the lot of their workers and created products

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with a positive social impact, making hygiene and personal care commonplace and improving nutrition
through adding vitamins to foods that were already daily staples.

Today, Unilever still believes that success means acting with 'the highest standards of corporate behavior
towards our employees, consumers and the societies and world in which we live'. Over the years we've
launched or participated in an ever-growing range of initiatives to source sustainable supplies of raw
materials, protect environments, support local communities and much more.

Through this timeline you'll see how our brand portfolio has evolved. At the beginning of the 21st
century, our Path to Growth strategy focused us on global high-potential brands and our Vitality mission
is taking us into a new phase of development. More than ever, our brands are helping people 'feel good,
look good and get more out of life' – a sentiment close to Lord Leverhulme's heart over a hundred years
ago.

Timeline

19th century

Although Unilever wasn't formed until 1930, the companies that joined forces to create the business we
know today were already well established before the start of the 20th century.

1900s

Unilever's founding companies produced products made of oils and fats, principally soap and margarine.
At the beginning of the 20th century their expansion nearly outstrips the supply of raw materials.

1910s

Tough economic conditions and the First World War make trading difficult for everyone, so many
businesses form trade associations to protect their shared interests.

1920s

With businesses expanding fast, companies set up negotiations intending to stop others producing the
same types of products. But instead they agree to merge - and so Unilever is created.

1930s

Unilever's first decade is no easy ride: it starts with the Great Depression and ends with the Second World
War. But while the business rationalizes operations, it also continues to diversify.

1940s

Unilever's operations around the world begin to fragment, but the business continues to expand further
into the foods market and increase investment in research and development.

1950s

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Business booms as new technology and the European Economic Community lead to rising standards of
living in the West, while new markets open up in emerging economies around the globe.

1960s

As the world economy expands so does Unilever and it sets about developing new products, entering new
markets and running a highly ambitious acquisition programmed.

1970s

Hard economic conditions and high inflation make the '70s a tough time for everyone, but things are
particularly difficult in the Fast Moving Consumer Goods (FMCG) sector as the big retailers start to flex
their muscles.

1980s

Unilever is now one of the world's biggest companies, but takes the decision to focus its portfolio, and
rationalize its businesses to focus on core products and brands.

1990s

The business expands into Central and Eastern Europe and further sharpens its focus on fewer product
categories, leading to the sale or withdrawal of two-thirds of its brands.

The 21st century

The decade starts with the launch of Path to Growth, a five-year strategic plan, and in 2004 further
sharpens its focus on the needs of 21st century-consumers with its Vitality mission.

3.2 Introduction to Unilever

Our brands are trusted everywhere and, by listening to the people who buy them, we've grown into one of
the world's most successful consumer goods companies. In fact, 150 million times a day, someone
somewhere chooses a Unilever product.

Look in your fridge, or on the bathroom shelf, and you're bound to see one of our well-known brands. We
create, market and distribute the products that people choose to feed their families and keep themselves
and their homes clean and fresh.

Focusing on performance and productivity, we encourage our people to develop new ideas and put fresh
approaches into practice. Hand in hand with this is a strong sense of responsibility to the communities we
serve. We don't only measure success in financial terms; how we achieve results is important too. We
work hard to conduct our business with integrity - respecting our employees, our consumers and the
environment around us.

Unilever is one of the world's leading suppliers of fast-moving consumer goods. Here are some recent
highlights from our three global divisions - Foods, home care and personal care.

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3.3 Brands of Unilever:
Unilever is currently one of the biggest consumer goods company in the world having various brands.
Their leading brands have international appeal because they meet a need or fulfill a desire that people
share, no matter where they live. Some of their major brands available in Pakistan are:
Personal care brands:
Axe, Dove, Lifebuoy, Lux, Pond’s, Rexona, Closeup, Sunsilk
Food:
Knorr, Lipton, Rafhan, Supreme, Walls, Energile, Broke bond A-1, Blue band
Home care brands:
Comfort, Surf excel, Rin, Vaseline

3.4 Vision Statement

We help people around the world meet everyday needs for nutrition; hygiene and wellbeing, with brands
that help people look good, feel good and get more out of life. Unilever has also the vision that’s better
future for children A better future for farming & farmers.

3.5 Purpose & principles

Our corporate purpose states that to succeed requires "the highest standards of corporate behavior towards
everyone we work with, the communities we touch, and the environment on which we have an impact."

3.6 Organizational Chart

Chairman (CEO)

Vice Chairman

Management
Committee

Personnel Director Sales Marketing Operations Commercial Technical Finance/Acc

Director Director Director Director Director Director
& Logistics

General Sales Marketing

Manager Manager

Fabric & Home Spread & Cooking Personal Wash Personal & Skin Beverage & Tea
Care Deptt. Category & Soap Care Product Category
Category

Product Assistant
Manager Manager

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3.7 Departments
Human Resources
Empower people to perform at their very best
Business to business
Exploit potential in a fast-growing food market
Research & Development
Bring ideas to life to create and improve brands
Customer Development
Pioneer new products categories and concepts
Information Technology
Use technology to drive competitive advantage
Supply Chain
Optimise sourcing production and delivery
Finance
Be at the heart of strategy, budgets and planning
Marketing
Understand, create and build demand for our brands

3.8 Unilever PEST Analysis

PEST analysis is used to assess that what environmental factors affecting different organization and
which of them are more important and how they affect the organization. It is indicator of political,
economic, social and technological influences on organization.

3.8.1 Political & Legal Factors

As far as the Unilever Pakistan concerns according to them that political instability have do affect but not
particularly Unilever Pakistan same as it affects any other organization around and specially they are in
consumer products business which never make them out of business.

In case of legal factors, any trade policy or import duties are not affecting particularly Unilever Pakistan.
In Pakistan right now following liberalization policy under SAP by IMF made which they have to waive
off all restrictions and moreover due to huge investment by Unilever Pakistan no government can afford
to create hurdles in the way of an organization like Unilever Pakistan. And they don’t have to go for only
lobbying or what so ever as not action of Pakistan government has affected them adversely as such.

3.8.2 Economical Factors

Economical factors affect Unilever Pakistan in the same way as it affect any other organization like
current economic situation in Pakistan and inflation has reduced consumer’s disposable income too,
which in turn has reduced the purchasing power of consumer but affect is same for every organization and
according to them Unilever Pakistan have edge that they have targeted all possible segments through their
vast product category i.e. the width and length too. So one way or other they find way to cover it up.

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3.8.3 Capital Markets

In other economic factors like “interest rates” and “inflation” has affected the borrowing ability of
organization but Unilever Pakistan stayed unaffected as a company having business in billions and when
in need of financing no single bank can fulfill the need, they have to make a consortium to finance
Unilever Pakistan and with very good credit standing and very low risk definitely they get the lowest or
justified interest rate as well.

3.8.4 Socio-Cultural Factors

In socio-cultural factors, factors like lifestyle changes and level of education affects an organization. In
case of change in lifestyle, the world has converted into global town now and people have readily access
to every sort of information and they are becoming more quality conscious. Now more concerned towards
environmental issues now and demand more social responsibility on the part of organizations now. To
cope up with all these factors now Unilever Pakistan which always maintained the quality standards needs
to work towards other social factors like social responsibility and environmental concerns like P&G did in
its Arial campaign and image of a society responsible organization.

3.8.5 Technological Factors

In technological factors comes R&D first and foremost that how much an organization spending in terms
of product improvement or development of new products or improvement in production process or in the
raw material etc. and what is the trend in the industry as Pakistan is not that big and not very much
innovation seeking as the other developed countries. Yet they keep on finding new ways of doing things
and new things as well they continuously launched variants in brands etc. and moreover in the market like
Pakistan in product categories of consumer products “rates of obsolescence” is not very high rather very
slow so no great pressure to launch new products,. Other than the factors smuggling affects Unilever
Pakistan’s sales very negatively. This issue would be discussed more in detail in the problem statement.

4. Unilever Problem Statement

Our problem statement is regarding the shampoo segment of Unilever Pakistan. They have managed such
a deep and broad product category and manage to do so well that some of their brand name has become
the generic names for that particular product but this is not the story with Sunsilk and recently launched
Lifebuoy Shampoo. Our problem statement is that what are the causes, which kept Unilever Pakistan
away from market leader position in shampoo market.

4.1 Problems

Whenever we look for the problems of company its problems can be bifurcated into two broader
categories.

1. Internal problems

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2. External problems

4.1.1 Internal problems

These problems are normally faced by organization due to elements, factors and weaknesses which are
present inside or which are existing internally in the organization e.g. problems due to organizational
policies, culture, structure, information sharing networks, organizational strategies or even employees,
they can be positive force and the problem child as a source of internal problem as well.

1. Company’s management relies on long term strategies which they receive ready made from their parent
company, head office as a modus operandi. And hence a strategy or a policy approval, formulated
and implemented 50 years back becomes obsolete and discard in prevailing scenario and
changing environment e.g. in their advertising campaigns of Sunsilk shampoo they only use
“Nabila” as their celebrity (Hair Expert) and they have never tried any other sports or film media
celebrity for the promotion of their product which their competitors use extensively. Here in this
field they lag behind due to their long term strategy even in field of advertising given by their
parent head office.
Hence being an influence able organization they exhibit bureaucratic management style they want
to maintain their status quo before these environmental changes like advertising trend.
2. Offices and branches of Unilever Pakistan are normally placed in domestic setup especially Multan
branch, since it is a marketing organization, its office outlook and location must be in
professional and well to do area which will contribute in proper functionality of branch and its
employees as well. This severe problem is being faced by Multan branch of Unilever Pakistan as
well.
3. Management team of Unilever Pakistan normally arrange excessive operational meeting, they have less
emphasis on the strategy implementation part as compared to strategy formulation and planning.
4. All the decisions regarding product planning, development, distribution and even targets of the
branches are centralized and are in hands of central sales office of Unilever Pakistan. They don’t
believe in MBO (Management by objectives). Branches are given inflexible targets of sales –
though data on these branch managers negotiate this figure but it takes too long.
5. Due to heavy capital investment in their brands Unilever Pakistan is unable to observe their slow
moving brands which create a cost burden.
6. Since removing old/discarded brand is very expensive due to expensive installed machinery,
technology and capital investment, launching new brand is also very expensive for Unilever
Pakistan due to the same reason. As to launch a new brand complete research and development
setup is required which is inflexible and cannot be re-utilized for another brand along with its
consumer market is heavily flooded with products, there is very low probability that market will
absorb new brands.
7. Whenever Unilever Pakistan launch any product they first launch it in India if product proves a “big
success” they try it in Pakistan which is not a good strategy due to cultural difference and
religious differences.

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8. Unilever Pakistan has very poor relationships with their dealers and retailers. They are far away from
their competitors like P&G, in case of retailer relationship. Their brand manager makes very rare
visits to the retailers to know their problems, very little discounts are offered by Unilever Pakistan
to their retailers. No prize scheme and incentive is given to dealers, retailers, wholesalers of
Unilever Pakistan. Even Unilever Pakistan brand manager never bargain on the proper and
prominent shelf space of their shampoos (Sunsilk and Lifebuoy).
9. Unilever Pakistan has not been able to place any check on its smuggling shampoos into Pakistan e.g.
Indonesian Sunsilk is made according to the demographic of Indonesia, when it will be used in
Pakistan it will damage the hair of people, which deteriorate the brand image. Which create
problem on local sales of Pakistan?
10. Employment insecurities in Unilever Pakistan also contribute negatively towards the performance of
branch operations. All branch managers, brand managers and operation are transferred within
branches of Unilever Pakistan allover Pakistan. This create an uncertainty among management
team, new managers takes much time to settle in new branch and to understand new setup of
branch and new dealers network. This affects the branch operations and performance.

4.1.2 External problems

Unilever Pakistan is not facing any prominent external problem as already analyzed in PEST analysis.

Introduction of Sunsilk and Lifebuoy

Sunsilk Shampoo

Unilever Pakistan stepped into shampoo business in 1984 with Sunsilk initially with only two variants:

1. Sunsilk (egg shampoo)

2. Sunsilk (shikaki shampoo)

This was the first branded shampoo in Pakistani market then they launched another shampoo named as
“Clinic” in 1985. For the reason that no other competitor was there in the market their sales figures was
high in start, but as shampoo market started to develop and imported shampoo and other competitors
entered into the market their sales started declining so they re-launched it as “Clinic Plus”. Due to their
poor marketing in 90s Clinic Plus faced big failure. The sales of Clinic Plus were not up to the
expectations of the company and they abandoned the production of Clinic Plus. They have recently
launched the brand with the new name and new formula (as they claim) named as “Clinic All Clear”
dandruff shampoo.

Company re-launched Sunsilk shampoo with following five variants in 1998:

Sunsilk Black for dull hair

Sunsilk Yellow for normal hair

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Sunsilk Green for thin hair

Sunsilk Pink for dry hair

Sunsilk Orange for oily hair

They promoted these 5 variants heavily but this could not get them their market share back due to entry of
strong competitors like P&G (Pentene, Pert Plus, Rejoice, Head & Shoulder), Bio Amla & other imported
shampoos as these shampoos got more shelf space in the retail outlets.

Unilever Pakistan again re-launched the Sunsilk at the end of 1999 with 12 different variants with new
name of fruitamines. Now the focus was on different kind of hair i.e. how many variation of Sunsilk are
there with aspect of ingredients and contents. Then they reduced their frutamines Sunsilk to six variants.
Now with launch of White Sunsilk they have seven variants of Sunsilk.

Lifebuoy Shampoo

Unilever Pakistan also tried to encash it’s another very popular brand name Lifebuoy soap which was
popular among lower income segment. They launched Lifebuoy shampoo using this brand name in 1998.
Initially it was successful according to the retailers everyone was asking about it and asked for retailers
opinion as well. But it flopped badly because it was mainly targeted towards lower and middle income
segment and Unilever Pakistan wanted this segment to switch from bath soap to shampoo and wanted to
develop shampoo market in this segment as well. But this class did not switched to Lifebuoy shampoo
because they were in habit of using soap for washing their hair, more over they did not find anything
unique and new about the shampoo. Other than being liquid. So, they again returned to Lifebuoy soap.

4.2 Inflation Challenge

The company’s official stated in a letter to the KSE that ‘inflation, poor security environment, sharp
currency devaluation and power outages continued to remain challenges for the business. We will
however continue to drive our agenda of improving consumer’s lives through consumer relevant
innovations, strong brand equities and a performance rewarding culture’.

Inflation dampens Unilever’s growth by 4%, The Unilever Pakistan has posted 4.0 percent yearly decline
to Rs 2.4 billion profit-after-tax (PAT) in first half of 2013 as against Rs 2.5 billion in the same period
last year due to growing inflation and continuous energy crisis.

The company earning per share (EPS) basic and diluted decreased to RS-174.5 in the first half of 2013 as
compare to EPS of RS. 180.90 in the corresponding period of 2012.

4.3 Political challenge

As the company operating in Pakistan where there is problem of political instability. Unilever should
focus on all the problems involved in the area of interest such power issue, water issue etc. Political
instability affects the performance of company.

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4.4 Investment Decision Making Challenge

It is hard for the financial management of Unilever Pakistan to decide about their reserve funds
investment because the situation of Pakistan is no stable at one point. There are different factors which are
affecting the country situation like law & order situation, electricity problem, poverty and business
environment conditions and heavy tax applied by the Government. Financial management find difficulties
in investing their reserves.

4.5 HR Management Challenge

As the competitors of Unilever Pakistan hiring the most professionals for best performance of the
organization, on the other hand HR management of Unilever Pakistan finding difficult situation while
hiring new employees in the field of production, marketing, sales & Finance. The other point after hiring
them to train them and when they get experience they are leaving.

4.6 Other Challenges

Moreover, the company’s official further stated that 2013 continues to be a challenging year for business
with continuing energy crisis, adverse security environment, market closures and slowdown in consumer
demand. He further stated, “We continued to invest competitively and strategically behind our brands in
an environment with many players vying for a share of the shrinking consumer wallet.”

However, there are some challenges that the company faces in the form of energy shortages and the rising
cost of power in the country. In addition to this, the sale of tea which is a major volume driver for the
company has been hampered by rampant smuggling of tea into the country via Afghanistan.

The dismal law-and-order situation and economic slowdown have also restrained disposable incomes for
the public at large. This has in turn suppressed the potential growth in consumer sales in the country. Still
the company has managed to register stellar growth in its sales and profits and appears well placed to
continue riding this wave of success in coming years.

5. Data collection method

Data Collection is an important aspect of any type of research study. Inaccurate data collection can impact
the results of a study and ultimately lead to invalid results. Data collection methods for impact evaluation
vary along a continuum. At the one end of this continuum are quantitative methods and at the other end of
the continuum are Qualitative methods for data collection.

Data collection is the important tool for any research work and completes the research report. Data has
two type first is primary data which is collected through personal interviews, surveys, questionnaires &
face to face meeting, which is considered more valid than the secondary data. Secondary data which is
collected printed material about the Unilever Pakistan and, the mostly its official website is used for the
preparation of this report. Most of data collected for making this report from the internet source.
Secondary data consist of Manuals, Journals, magazines, Annual Reports and Internet.

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6. SWOT Analysis

SWOT analysis, is a strategic planning tool used to evaluate the strengths, weaknesses, opportunities and
threats involved in a project or in a business venture. It involves specifying the objectives of business
venture or project and identifying the internal and external factors that are favorable and unfavorable to
achieving that objective. The SWOT analysis classifies the internal aspects of the company as strengths
and weaknesses and external situational aspects as opportunities and threats.

 Strengths: Attributes of the organization that is helpful to achieving the objective.

 Weaknesses: Attributes of the organization that is harmful to achieving the objective.
 Opportunities: External conditions that is helpful to achieving the objective.
 Threats: External conditions which could do damage to the business's performance.

6.1 Strengths:
Strengths are internal factors to the organization. Major strengths of Unilever are as following:

 Unilever Pakistan Limited has a good name as a market leader in consumer products
 Unilever has got Sound and experienced management with qualified executives running
operations.
 Excellent marketing department assisted by a highly regarded marketing research unit.
 They have strong in their marketing strategies.
 Largest producing company of consumer product in Pakistan.
 The first and most important strength of Unilever is the image of the company itself.
 Unilever products have good reputation among their customers because of good product quality.
 Diversity of its product line is also a major strength of Unilever.

6.2 Weaknesses
Weaknesses are that what the organization cannot do but its competitors can do better than it.
 High rates of skin care products in the market.
 Few new products are introduce in the market there is no decision about this by the
management.
 Decisions are made at upper level of the organization.
 The size of corporation is so huge that it’s difficult to manage all the units and their specific
departments. So sometimes some products get more attention and some stay hidden from sight.

6.3 Opportunities
Opportunities are the chances for an organization to do better.
 They can increase more their product lines in the view of their competitors. They must increase
product line in food line.
 The rapid expanding urban population in Pakistan is the key opportunity for Unilever to extend
its sales.

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  Awareness growing in rural areas due to education and children with family members abroad
sending foreign income is also potential customers for Unilever.
 Unilever can also stretch their market to rural area, where there could be a large market for their
products in the future.

6.4 Threats
Threats are the hurdles for an organization to proceed.

 Increasing of companies as their competitors is threat for them. They should do more work on their
marketing strategies.
 Rise in the inflation rate in the world because of economic crisis can also results to fall in sales of
the company due to low purchasing power of consumers.
 There are many competitors of Unilever in Market including P&G, Nestle and Kraft Foods who are
fighting hard to leave one another behind.
 Instability of Pakistani Political system has always been a major threat for companies operating in
Pakistan and it’s not different for Unilever. Changing political system affects Pakistani economy as
well as organizations operating under it.
 Unilever management should pay attention in rural area to capture the market rapidly.
 There is also a trend of rising small competitors in Pakistan in consumer product industry recently
which can also affect Unilever’s sales especially in rural areas.

7. Conclusion
Management is the organizational process that includes strategic planning, setting; objectives, managing
resources, deploying the human and financial assets needed to achieve objectives, and measuring results.
Management also includes recording and storing facts and information for later use or for others within
the organization. Management functions are not limited to managers and supervisors. Every member of
the organization has some management and reporting functions as part of their job.

In the 1890s, William Hesketh Lever, founder of Lever Bros, wrote down his ideas for Sunlight Soap –
his revolutionary new product that helped popularize 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'.
Unilever is a very strong multinational corporation with a lot of strengths, including its strong
management, to run its operations to the heights of success. Unilever management plays the important
role in the company success, like as financing decision, investment decision, formulation of strategy to
achieve the desired goals. Along with strengths the Unilever has some weakness & threats for sustaining
its success.

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8. Recommendations
It should implement “Unilever Believer” product and brand extensions. The related example in this case
is of ‘Lipton tea’. It should try and create an extension to this famous brand by focusing on energy drinks.
Justifications are: Highlight healthier ingredients of the product while showcasing its ability to give
energy and revitalize body, A Healthier Alternative to Energy Drinks.

The Unilever Pakistan should encourage the employee’s participation in decision making, because the
great ideas can come after anywhere so the employees must be encouraged to contribute in organizational
decision making. The after making of decision should be discussed at lower level so that the employees
develop understanding for new decisions taken by the management.

Unilever management should take initiative to focus on new products in the product line. Management
should also start the study & awareness campaign in the rural area of Pakistan to capture the rural area
market and turn them into the regular customers. Women are most concisions about their skin & health
management should also introduce new products for the women to increase the sale volume of the
company.

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http://uncw.edu/career/management.html

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