GROUP MEMBERS

Md Ashraful Bari (07202080) Irin Sultana Farzana Afrin Avhijeet Datta Naimul Hasan (06202031) (07202089) (07202073) (07102107)

UNILEVER

MISSION

Mission is to add Vitality to life.

History & Background

Unilever was created in 1930 by the merger of British soap maker Lever Brothers and Dutch margarine producer. In the late 19th century the businesses that would later become Unilever were among the most philanthropic of their time. 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.

Activities
They set up projects to improve the lot of their workers create products with a positive social impact, making hygiene and personal care commonplace improving nutrition through adding vitamins to foods that were already daily staples.

Timeline

1900s First production era 1910s World War-I 1920s Merging era 1930s 1st decade of the business 1940s Globalization 1950s Emerging markets 1960s New products 1970s Economic Recession 1990s Market Leader 1980s Expansion plans The 21st century Current Scenario

Corporate Governance
Unilever's highest executive body is called the Unilever Executive. It is led by the Group Chief Executive (Patrick Cescau), and is responsible for managing profit, loss and growth delivery across the company.

Company structure
Executive directors Non-executive directors Senior corporate officers Unilever Executive (UEX)

BRANDING

Unilever now owns about 400 brands, many of them local that can only be found in certain countries.

The brands fall almost entirely into two categories:

Food and Beverages, Home and Personal Care.

43%

57%

Foods Division Home and Personal Care

Top Segment Top Brand CEO Stock per share Growth Revenues Revenue Growth International Business Segments Employees

CG/Foods Dove A. Burgmans $66.03 15.58% 42,942M -11.93% 100+ 3 234000

Consumer care Tide A.G. Lafley $53.76 9.25% 28.2 BL 19% 42 5 110000

Food Mac & Cheese R. Deromedi $30.70 8.2% $31,010 M 4.3%% 150+ 5 10600

Food Kit Kat P. Letmathe 66.90 11.23% $69 B -1.93% 86 6 253000

S.W.O.T. Analysis
Strengths
   

Weaknesses
     

Recognized as a global company Strong brand portfolio Strong relationship with retailers Economies of scale

Dual leadership Not connecting with customers Inefficient management of brands Reduced spending for R & D Inability to maximize acquisitions Decrease in revenues

Opportunities
Changing consumer preferences  Increasing need for healthy products
    

Threats
Strong Competition Increasing store brands Tougher Business Climate Exchange rates

Financial Analysis
Revenues
54,000 52,000 50,000 48,000 46,000 44,000 42,000 40,000 2000 2001 2002 2003 Revenue
3500 3000 2500 2000 1500 1000 500 0 2000 2001 2002 2003 Net Inco e

Net Income

Current Revenue: 40.523 billion

Current Net Income: 5.285 billion

Net Profit Margin

0 0 0 0 0 0 0 0 2000 2001 2002 2003 Net Prof t Marg n

Employees
280000 270000 260000 250000 240000 230000 220000 210000 2000 2001 2002 2003 E ployee

Current Employees: 174,000 (2008)

Elements of Path to Growth

5 year growth plan Reduce portfolio to 400 core brands Focus R & D and advertising on leading brands Concentrate on product innovation to fuel internal growth Grow through acquisitions

Why Path to Growth Strategy

Years of slow performance Lack of sound corporate strategy Numerous low-volume brands Small global presence compared to competition Mediocre performance in emerging markets

Is it working?
Yes.

Successfully trimmed unsuccessful brands Leading brands increased sales from 75% to 93% 12 brands with sales of 1Billion+ Consistent growth in Home & Personal Care Improved overall quality and growth profile of Food portfolio

Global procurement programs have delivered 2.4B, excess of 1.6B target Improved capital efficiency Successful integration of Bestfoods acquisition Operating assets have improved by 9%, exceeding 6% target

Is it working?
No. Unileve

was getting the e, but getting the e too late

Reported a net loss of $318M In 2004, underlying sales grew by only .4%, leading brands by .9% Issued 1st ever profit warning ahead of third quarter results, 3% decline Lagging behind competitors in terms of marketing and innovation

Failure to increase advertising and marketing efforts Still lack focus and effective strategy execution The company remained too local and fragmented Unilever plans to discontinue the Path to Growth Strategy

So whats next?
What adjustments, both internally and externally, should Unilever make to rebuild a strong and focused competitive strategy?

Recommendations
1. Reorganize and streamline Unilevers organizational structure. 2. Implement \Unilever Believer[ product and brand extensions.

Recommendation 1

Strategy Justification


Unilever maintained two business entities, dual chairperson approach Unilever Group owns Unilever Plc and Unilever NV List stock separately and share board of directors Management typically wear two/three hats Board and business responsibilities conflicted Company remained two local and fragmented Recognize the need to streamline leadership and management structure

Reduced effectiveness and slowed the decision aking ocess.

An initiative to create an overall umbrella brand across all Unilever s brands that will eventually consolidate various businesses under one name

One Unilever

Cross Functional Manage ent Tea

A simpler management structure will increase accountability and speed the decision making process.

Margarines, spreads, oils Frozen Business Units Global Foods Icecreams Tea-based beverages Culinary Health and Wellness Fragrances Deodorants/toiletry Oral Care Soaps, lotions, skin care Laundry Househould care Cleaning Products

Market Development Organization

Global Business Services

Corporate Functions

Ireland KEY Korea Neverlands Italia US

TO SUCCESS Team Global Enabling

Regional Leadership Team Global Process Owners

Customer Business Development Finance Human Resources IT Market Research Government Relations Product Supply Public Affairs

Recommendation 1 Deliverables

Provides a greater clarity of leadership, responsibility, and accountability Allows Unilever to focus on the needs of their customers and consumers thus reigniting growth and increasing sales potential Provides the ability to leverage scale of operations Create a strategic platform for brand management

Unilever Believer


Program that focuses on brand initiatives to the consumer Lets the consumer know more about the product and its uses Believe in Unilever Objective: Bring top of the mind awareness Strategy: Use advertising that connects with consumer needs

Recommendation 2

Strategy Justification


 

Consumers demand high quality products that both are convenient and delicious Consumers look for new ways to use products More females are working full time jobs Large population of single-parent households Increase consumer focus on health and nutrition

Recommendation 2 Deliverables

Delivers innovative products that capitalizes on changing consumer preferences Allows Unilever to focus on the needs of their customers and consumers thus reigniting growth and increasing sales potential Provides a strong competitive platform against major competitors and private label brands