Hul Strategy Report

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STUDY OF HINDUSTAN UNILEVER LTD With respect to Strategic model

Contents:
I. Company overview a. Mission b. Corporate purpose c. Objectives

Strategic position
II. Environment a. Porter’s five forces b. SWOT c. Market segments and strategic customers:STP Value chain

III.

Strategic choices
IV. Corporate level strategies a. Takeovers b. Joint ventures c. Organic growth d. Integration Business level strategies a. Product innovation b. Market development c. Pricing strategies

V.

VI.

d. Ad spending and sales promotions e. Investors interests Operational level strategies a. Institutionalizing talent b. Capability building c. SCM d. ROMI e. IT

Strategy into action
VII. VIII. IX. Organization structure Balance score card Managing people

Introduction

I.

Company overview:

HUL (HUL) is India’s largest fast moving consumer goods company, with leadership in Home & Personal Care Products and Foods & Beverages. HUL's brands, spread across 20 distinct consumer categories, touch the lives of two out of three Indians. They endow the company with a scale of combined volumes of about 4 million tonnes and sales of Rs. 13,718 crores. The mission that inspires HUL's over 15,000 employees is to "add vitality to life". With 35 Power Brands, HUL meets every day needs for nutrition, hygiene, and personal care with brands that help people feel good, look good and get more out of life. It is a mission HUL shares with its parent company, HUL, which holds 52.10% of the equity. A Fortune 500 transnational, HUL sells Foods and Home and Personal Care brands in about 100 countries worldwide.

Mission:
HUL's mission is to add Vitality to life. We meet everyday needs for nutrition, hygiene, and personal care with brands that help people feel good, look good and get more out of life.

Corporate Purpose:
Our deep roots in local cultures and markets around the world give us our strong relationship with consumers and are the foundation for our future growth. We will bring our wealth of knowledge and international expertise to the service of local consumers - a truly multi-local multinational. Our long-term success requires a total commitment to exceptional effectively, standards and to a of performance willingness to and productivity, to working together embrace new ideas and learn

continuously. To succeed also requires, we believe, the highest standards of corporate behavior towards everyone we work with, the communities we touch, and the environment on which we have an impact.

Strategic position

II.
a)

Environment: Porter’s five forces

Buyer power:
 Consumer faces weak buying power because customers are fragmented and have little

influence on price or product.
 Considering buyer power retailers it is very high since they are able to negotiate the price

with the companies.
 Verdict: strong buyer power from retailers.

Supplier power:
 Consumer product faces some amount of supplier power simply because of the cost they

incur when switching suppliers.
 Suppliers that do a large amount of business with these companies are also beholden to

their customers.  Verdict: limited supply power

Threat of new entrants:
 Given the amount of capital investment needed to enter certain segment in house hold

consumer products, the threat of new entrant is fairly low.
 Whether the new entrant can get its products on the shelves of the same retailers as its

much larger rivals.
 Verdict: low threat of new entrants.

Threat of substitutes:
 Within the consumer product industry, brand succeeds in helping to build a competitive

advantage, but even the pricing power of the brands can be eroded.  Verdict: high threat of substitutes.

Degree of rivalry:
 Consumer in this category enjoy multitude of choices.
 It does not cost anything for a consumer to buy one brand of shampoo instead of another,

making the industry quite competitive.

b) SWOT
Strengths
HUL...
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