Unilver
A07-04-0020
Univar Quimica SA
On October 27, 1997, Arnold Pollet, treasurer and secretary at Univar Fontenay, France, was reviewing the budget and operational reports sent from the company’s Brazilian subsidiary. This was the first time he had reviewed these figures since the new general manager, Carlos Lopes, had taken over in November 1996. With the consolidation of the Mercosur agreement, and potential further trade integration with the rest of Latin America, it had become strategically important to reposition the Brazilian operations. Economic stabilization and a more open trade policy were likely to redefine many of the prevailing rules of competition in the region. Improvement of operational practices and new strategic thinking were essential for the future of Univar in Brazil and the Mercosur trade area. The losses the company incurred in 1996 called for more aggressive actions to restore the Brazilian business to acceptable standards.
Univar Quimica
Univar Quimica was a wholly owned subsidiary of Univar Fontenay SA, a large French chemical company with annual sales in excess of $850 million dollars. After several years of export to Brazil, Univar Fontenay decided to open a subsidiary production facility capable of meeting the growing consumer demand for Univar products. Univar Quimica SA started operations on March 6, 1983, in Jundiai, São Paulo. It started in a small warehouse using the patented chemical formulas passed on from the French plants. Production procedures were very simple: portion the formula, mix the base chemicals, bottle the finished goods, and sell the product. It’s not clear how many different formulas existed back in 1983, but by 1996 there were about 150 chemical products and over 540 stockkeeping units (SKUs). Currently, Univar Quimica competes nationally in industrial chemical products against a number of well-established brands, such as Henkel, Synteko, Varsol, Omo, Radium, Scotch Brite, and Lyson. Its main economic
Univar Quimica SA
On October 27, 1997, Arnold Pollet, treasurer and secretary at Univar Fontenay, France, was reviewing the budget and operational reports sent from the company’s Brazilian subsidiary. This was the first time he had reviewed these figures since the new general manager, Carlos Lopes, had taken over in November 1996. With the consolidation of the Mercosur agreement, and potential further trade integration with the rest of Latin America, it had become strategically important to reposition the Brazilian operations. Economic stabilization and a more open trade policy were likely to redefine many of the prevailing rules of competition in the region. Improvement of operational practices and new strategic thinking were essential for the future of Univar in Brazil and the Mercosur trade area. The losses the company incurred in 1996 called for more aggressive actions to restore the Brazilian business to acceptable standards.
Univar Quimica
Univar Quimica was a wholly owned subsidiary of Univar Fontenay SA, a large French chemical company with annual sales in excess of $850 million dollars. After several years of export to Brazil, Univar Fontenay decided to open a subsidiary production facility capable of meeting the growing consumer demand for Univar products. Univar Quimica SA started operations on March 6, 1983, in Jundiai, São Paulo. It started in a small warehouse using the patented chemical formulas passed on from the French plants. Production procedures were very simple: portion the formula, mix the base chemicals, bottle the finished goods, and sell the product. It’s not clear how many different formulas existed back in 1983, but by 1996 there were about 150 chemical products and over 540 stockkeeping units (SKUs). Currently, Univar Quimica competes nationally in industrial chemical products against a number of well-established brands, such as Henkel, Synteko, Varsol, Omo, Radium, Scotch Brite, and Lyson. Its main economic