Finanacial Evaluation of Unilever

Topics: Financial ratios, Financial ratio, Generally Accepted Accounting Principles Pages: 11 (2953 words) Published: March 25, 2013
Table of Contents
Table of Content3
List of Tables4
Table 1 6
1. Introduction2
2. Main Body2
3. Management Structure4
4. Ability to Earn Income 5
5. Size of Inventory Held5
6. Relience on Debt Financing5
7. Key Indicators for 2011 and 20126
8. Profitability of var.Product Lines and Geographic Regions 6 Table 28
9.1 Operations Analysis10
9.2 Liquidity Analysis12
9.3 Debt and Solvency Analysis 14
9.4 Profitability Analysis15

When evaluating a company important is to know company’s history, operations and the nature of the business in which it operates. On other hand by reviewing company’s financial statements, operational practices we can evaluate its performance and compare it with the previous years or with the key competitors. By analyzing its financial indicators we can assess how profitable and sound the company is. This research paper will give brief description Unilever, its main divisions and products, its managements structure and the financial performance evaluation, with an aim to highlight the best practices and the growth drivers. Main Body

2.1 Profile of the company, its divisions, products and supply chain Unilever is multinational corporation and is one of the worlds fast moving consumer goods companies with a host of well known brands. The company operates through four segments: Personal Care, Foods, Refreshment, and Home Care. Unilever is a joint venture of two companies that date back from the late nineteen century. It was formed by two Dutch families, Jurgens and Van den Bergh, butter merchants who later started producing margarine and by the British soap producer William Hesketh Lever. Since the early nineteen century the two companies were concentrated on acquisitions and in the early 1929 they signed an agreement to create Unilever (Unilever, 1929 p.2). Unilever over the last two decades acquired the meat business Zwanenberg's at Oss, Lipton International, Brooke Bond, Naarden, Calvin Klein and Elizabeth Arden/Fabergé, Brayers ice cream, Kibon ice cream, Bestfoods, Slim Fast Foods, Ben & Jerry's and the Amora-Maille. In 1992 Unilever entered the Czech Republic and Hungary, and established UniRus in Russia, also enters in India and other parts of the world. (Unilever, 1995 p.3) Unilever N.V. operates as a fast-moving consumer goods company in Asia, Africa, the Middle East, Turkey, Europe, and the Americas Unilever possesses a portfolio of more than 400 brands, from nutritionally balanced foods to indulgent ice creams, affordable soaps, luxurious shampoos and everyday household care products. Their products are sold in more than 190 countries, generating sales of €51 billion in 2012. In the 21st century they launched growth strategies, in order to transform the business, leading to more acquisitions, rationalization of manufacturing and production sites to form centers of excellence. Unilever is responding quickly to rapid shifts in consumer behavior by investing in Research and Development and changing market conditions. Unilever's sells its product across 170 countries and their procurement teams are purchasing from a network of around 160,000 suppliers worldwide. For the same reason its suppliers' materials and services are an integral part of their commercial operations. Unilever has integrated supply management informational system that helps their local, regional and global supply managers to make appropriate sourcing decisions, allowing them to analyze information quickly and easily. Through this system they can negotiate with their suppliers in a more transparent and efficient way. Unilever's largest international competitors are Procter & Gamble and Nestlé. While the competition in local markets or specific product ranges from numerous companies, including Beiersdorf, ConAgra, Danone, Henkel, Mars, Pepsico, and others (Unilever) Management Structure...
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