A Decade of Organizational Change at Unilever - Paper

Topics: Strategic management, Unilever, Brand Pages: 12 (3787 words) Published: March 7, 2013
A Decade of Organizational Change at UNILEVER

Unilever is an Anglo–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 and the world's largest maker of ice cream. Unilever is a complex organization. Unilever has two holding companies: Unilever PLC, which has its registered office at Port Sunlight in Merseyside, United Kingdom and its head office at Unilever House in London, United Kingdom; and Unilever N.V., which has its registered and head office in Rotterdam, The Netherlands. Unilever PLC and Unilever N.V. and their subsidiary companies operate as nearly as practicable as a single economic entity, whilst remaining separate legal entities with different shareholders and separate stock exchange listings. There were two head offices—in London and Rotterdam—and two chairmen. Beneath the two parent companies a large number of operating companies were active in individual countries. They had many names, often reflecting predecessor firms or companies that had been acquired. The organizational complexity was compounded by Unilever's wide portfolio of products and by the changes in these products over time.  Unilever is a world-wide investor, too. An early multinational investor, by the postwar decades Unilever possessed extensive manufacturing and trading businesses throughout Europe, North and South America, Africa, Asia, and Australia. Unilever was one of the oldest and largest foreign multinationals in the United States. Unilever's longevity as an inward investor provides an opportunity to explore in depth a puzzle about inward FDI in the United States. Since Unilever became one of the most succeed global companies in the world, thus, Unilever is likely to have many profit sanctuaries. Company with multiple profit sanctuaries like Unilever has competitive advantage over companies with a single or few sanctuaries. Unilever as the Company with multiple profit sanctuaries has the flexibility of lowballing its price in the domestic company’s home market and grabbing market share at the domestic company’s  expense, subsidizing razor-thin margins or even losses with the healthy profits earned in its profit sanctuaries. The organization has three regional subdivisions: Europe team includes the region of western, eastern and central Europe. The Americas Region has both north and South America. The Asia Africa Region covers Africa, Middle East, Asia and Austral-Asia regions. The teams are divided into foods and home and personal care. The regional teams oversee the two categories and the related brands within each category.  SWOT

SWOT analysis (alternatively SWOT Matrix) is a structured planning method used to evaluate the Strengths, Weaknesses, Opportunities, and Threats involved in a project or in a business venture. Strength and weakness are internal factors of the organization. And opportunities and threats are external factors of the organization. Strength

Internal attributes of the organization that are helpful to achieve the objective. * Company operates around 100 countries
Unilever operates its operations nearly 100 countries in the world. And they also have 270 manufacturing sites worldwide. * Strong portfolio of brands
Company has 400 brands all around the world. Most of the brands known as multinational brands but some of them operate in some countries and company calls it local brands. 13 international brands have contribution in sales more than 1 billion Euros. And Unilever top 25 brands account for more than 70% of sales. * Products of the company

* The products are diversified-- Huge product variety.
* Personal wash: Lux, Rexona/Sure,
* Laundry: Surf, OMO, Persil,
* Skin care: Dove, Ponds,
* Hair care: Sunsilk,
* Oral care: CloseUp, Pepsodent,
* Deodorants: AXE, Lynx,
* Food and beverages:...
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