Unilever Case

Topics: Management, Cosmetics, Investment Pages: 1 (284 words) Published: January 9, 2013
Organizational Change: Unilever's Case
Share On EmailEmail
RePublish Article
Sample Paper
Words 2,190
In the beginning of 2000 the organization came up with a euro5 billion five-year growth strategy whose goal was an important improvement in the company's performance. This plan was named Path to Growth' Strategy (PGS). The activity meant wide-ranging restructuring of operations and businesses. This move received a mixed reaction from the analysts and observers, as many questioned the huge organization's ability to carry out the divestment successfully. (ICMR, 2004) To accomplish the PGS Unilever focused on:

• Change the present organizational structure
• Concentrate on leading brands
• Sustain these principal brands with well-organized research and development and focused marketing plan • Downsize the supply chain
• Shorten business processes
• reorganize and  remove under-performing businesses and brands Unilever's new structure was planned to focus on Unilever's two major divisions, and Home and Beauty Products. Numerous divestments were made  which included European bakery supplies business, and French culinary business Benedicta, Bestfoods Baking and its subsidiaries, Elizabeth Arden and Unilever Cosmetics in addition to its Dutch refinery and industrial cleaning businesses just to name a few.  (ICMR, 2004) From these changes the organization expected cost savings of euro1.5 billion by 2004 and global procurement would lead to additional savings of euro1.6 billion by 2003. In addition 25,000 workers were laid off.  The focus of the restructuring was global but it was concentrated in the US and Europe. It was believed at that time that annual cost savings would be a billion Euros. The major cost cutting took place in the foods segment as the home and personal care sections were already much more organized. (ICMR, 2004)
Continue Reading

Please join StudyMode to read the full document

You May Also Find These Documents Helpful

  • Unilever Essay
  • Unilever Essay
  • Essay about Unilever
  • Unilever Essay
  • Case Study P & G and Unilever Essay
  • Marketing and Unilever Essay
  • CSR In Unilever Essay
  • Unilever Bd Essay

Become a StudyMode Member

Sign Up - It's Free