Report about global business organization
Course Name： Global business organization
Group Award：Global Trade & Business
Candidate’s Name: Sofia Ye 叶效捷
Supervisor’s Name: Li Chen
Xianda College of Economics and Humanities
Shanghai International Studies University
The strategies of Unilever for Research and Development……….....3 3.
Process for choice of production and its global position…………….3 4.
Local market criteria
The pricing and distribution policies and influence of logistics
The importance of clear communication
This report is about Unilever is a British–Dutch multinational consumer goods company. Its products include foods, beverages, cleaning agents and personal care products. It is the world's third-largest consumer goods company measured by 2011 revenues (after Procter & Gamble and Nestlé) and the world's largest maker of ice cream. It should illustrate the decision making process, pricing and distribution policies and the needs for clear communication. 2. The strategies of Unilever for Research and Development
Unilever use vertical integration as its production strategy. Vertically integrated companies in a supply chain are united through a common owner. Usually each member of the supply chain produces a different product or (market-specific) service, and the products combine to satisfy a common need. For example, in 1978, Unilever acquired an American company called National Starch which manufactures bond, farina and chemical products for special use. After acquisition, National Starch provided materials to Unilever to produce products. National Starch provides materials to Unilever to make products.
The acquisition helps Unilever control the quality of materials, so that it can make a better product with a better quality which can help Unilever improve its reputation. And at the same time, it can save costs of products. The portfolio is reshaped and enhanced through acquisitions and the sale of 87 businesses without acceptable growth or margin potential, generating €6.3 billion of sale proceeds in 2002.
3. Process for choice of production and its global position
Unilever claim china is the most important region to develop in future, but in the highly competitive market is really important keeping ahead of the competition by bringing new and exciting products to market fast if the company is only invest on their original products the company is likely to be substituted from the other competitors, and at the necessary level of quality, presents a major engineering challenge. A new deodorant pack development process is described, which introduces advanced simulation and optimization technology into the concept development phase. Detailed predictions of interacting parts in a mechanism assembly are made possible through use of advanced simulation technology. But this new technology has a high cost, that means the final selling price may be high than other deodorant, and for the customers who are focus about the price that is not easy to accepted, on the other hand deodorant is not life necessities goods. The principal thing that can influence the price is the cost of production, In Europe the operating costs are relatively high than Asian country for example in China the labor-intensive is relatively cheap especially for skin cares products. Unilever decided to move the project from Europe to China because the cost is only one third of the original cost. So the company can reduce the cost of the product by this way. For the company is also important to save labor costs which are companies main spending item, therefore the company has an annual intake of 130 university graduates, for their training at home and abroad...
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