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Report on Strategic Management of Unilever

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Report on Strategic Management of Unilever Free Reports, Assignments, Presentations, MBA Reports, BBA Reports, Business Reports, Analysis of Annual Reports Report on Strategic Management of Unilever Organization Introduction Lever Brothers Pakistan Limited is a multinational organization. Unilever PLC London is its parent company. Unilever is a European based company with headquarters in London, and their shares are quoted at the stock exchange of several European countries. They deal in all kinds of products from animal foodstuff to foods and detergents plus other personal and consumer products. Unilever has its subsidiaries in over 80 countries of the world, to which it spreads its vast knowledge and resources. William Lever (its originator) commences business in England as a grocer. He established Lever Brothers in 1827 in England Sunlight was the first product of Lever Brothers, which makes the beginning of the marketing of branded products at the same time Margarine Uni was established in Nether Land by Simon Van Berg and Anton Jurgens. These two companies in term of: Buying raw material Selling finished goods Consequently both the companies loosing out money in term of profit. These problems led to think of the mergers in 1930. These two companies merged together and renamed the business as Unilever PLC / the word UNI is taken from margarine Uni and Lever is taken from Lever Brothers. Its head quarter was established in England and Rotter Dam. Unilever has 500 operating companies in 80 countries. It has 0.3 million employees and turnover of sales in 23000 million pounds. The global business proportion is 60% in Europe20% in North America and 20% in rest of the world. An identified board of directors control the activities of subsidiary companies throughout the world. Lever Brothers Pakistan Limited started its operations in 1948. A merger of Sadiq Vegetable Oils and Allied Industries existed in Rahim Yar Khan was taken place with Lever Brothers and HVM company based at Karachi. As a result of merger Lever Brothers Pakistan Limited was incorporated as an independent Unilever operating company in 1955. The company is quoted on the Karachi, Lahore and Islamabad Stock Exchanges. Lever Brothers Pakistan Limited has around 1900 employees inPakistan. Lever Brothers Pakistan Limited played a dynamic role in boosting consumer products market. It stand at a unique position due to its honesty and integrity. Lever Brothers Pakistan Limited’s main divisions of business are: MERGER WITH BROOKE BOND Brooke Bond Pakistan Limited was incorporated in 1948. Company’s 40% shares are held by Unilever, 21% by financial institutions, 24% by individuals, and 10% by insurance companies. The company is quoted on Karachi and Lahore Stock Exchange market. The company is manually engaged in the blending, packaging and marketing of tea. It also has a small business in the sale of packing apices. The company employ around 850 persons. And has three manufacturing locations situated in Karachi and Khanewal. It also have three regional sales offices. The head office of the company is located in Karachi. After the amalgamation of Lever and Brooke Bond, Unilever will have a majority shareholding in the combined company and it will provide a comparable level of technical, management and financial resources. The proposed merger will benefit the consumer in term of price and quality. Acquisition Lever Brothers Pakistan Limited acquire the shares of Pakistan Industrial Promoters Limited, Mehran International Limited and Ambrosia International Limited, which is known as Polka Group of Ice Cream Companies. Product Mix At present Lever Brothers Pakistan Limited is engaged in marketing of diversified varieties and classes of products and playing a dynamic role in boosting consumer product market. It stand at a unique position due to its honesty and integrity. Lever Brothers Pakistan Limited has both product length and depth i.e. it has by length a largest of product lines available and under each product line there are lots of variants like different weights, 100mg, 500mg, 1000mg, sache pack, family pack or in case of ice creams different brands have lots of flavor available which determines its product depth. So different no of product lines are called product length and no of products in each product line are called depth of product line. Lever Brothers Pakistan Limited’s main product groups are listed below: Home And Personal Care Personal Wash (PW) Toilet Soaps Lifebuoy (Carbolic Soap) Lifebuoy Plus Lifebuoy Gold Lux (in 4 varieties) Rexona (in 2 varieties) Liril Hamman Fair & Lovely Soap Fabrics And Home Care Fabric Wash Surf Excel Power Surf Sunlight Washing Powder Soap Wheel Home Care Vim Dish Washer / Scourers Vim NSD Bard (in 2 varieties) Vim Powder Poly Bag Personal Product Hair Care Sunsilk Shampoo (in 7 varieties) Harmony Soap Lifebuoy Shampoo Skin Care Fair & Lovely Skin Cream and Lotion Dental Care Close-up Tooth Paste Pepsodent Oil And Dairy Based Foods Banaspati Dalda Cooking Oil Dalda Cooking Oil(Soya Bean) Dalda Sunflower Oil Planta Margarine Blue Band Industrial Fats A whole range of product for bakery and oils for the industry. Beverages Leaf Teas Yellow Label Yellow Label – Danedar Richbru Top Star Taaza Leaf Supreme Brooke Bond Dust Teas Pearl Dust Ruby Dust Laojee Mixture Tea Taaza Ice Cream Cornetto (in 3 varieties) Feast (in2 varieties) Feast Stickless Top Ten Star Cup (in 4 varieties) Sundae ( 2 variant) Chocu Bar Minimill Sola Jet Spot Ice Lolly Wall’s Kulfi Panda Pop Corn g Three Vision Of Lever Brothers Pakistan Limited The vision of Lever Brothers Pakistan Limited is driven by is the commitment to excel and we are here to sell aspiration not brand. So, the core vision is integrating and that is to excel in every field whatever Lever Brothers do to provide customer delight and value. The Lever Brothers have been able to follow the track set by their vision and to achieve the standards set by their customers. Mission Statement of Lever Brothers Pakistan Limited Lever Brothers Pakistan Limited will be the foremost consumer company in Pakistan with the dominant position in laundry, personal wash, skin, ice creams and spreads: a leading position in tea, hair, dental and household care and a sustainably profitable position in cooking oil and fats. 1. We will aim at delivering a 15% UVG rate, hence doubling the size of our business over 5 years and thereby delivering superior value creation. 2. We will achieve this by adopting a broad view of our market by seeking the new opportunities in the core categories of Unilever and by staying closer to all consumers than competitors, understanding their evolving needs and focusing on constant delivery of superior value for our brands through innovation. 3. Competitive advantage will also be developed by driving down relentlessly on relative cost positions and outpacing competition in operational efficiency improvement. 4. We shall build on our strong network of distributors to maximize penetrations and visibility in existing channels and to develop all new channels relevant to our consumers. 5. We shall establish Unilever’s core brands in Afghanistan, building brand loyalty and strong distribution in the market. 6. To achieve these standards of performance, Lever Brothers Pakistan Limited will develop a strategically focussed organization and will motivate its personnel to use its full potential of creativity and commitment. It will also leverage Unilever’s best practices and maintain the highest standards of operational control. 7. Through its commitment to high levels of care and safety for its employees, its consumers and the environment, Lever Brothers Pakistan Limited will be exemplary and will participate in the dissemination of such practices inPakistan. Analysis Of Mission Statement Mission Contents Organization Philosophy People Peoples are key to strengths of Lever Brothers Pakistan Limited. The development of their potential is core to Lever Brothers Pakistan Limited business. So they provide extensive attention to developing human resources. Customers Lever Brothers Pakistan Limited is the customers focus organization. They do delight customers with their products and service. Their brands always deliver the high quality as they premise. Lever Brothers Pakistan Limited pays extra attention to the complaints of consumers. e.g. if the consumer complaints that detergent harmed any cloth or skin they send the sample for lab test a team analyzes that customer complaint is right or not and then they send the detailed response to customer along with gift of their products. With a questionnaire for suggestion for further improvement on the top of which is written “WE CARE ABOUT YOU”. Suppliers Suppliers are considered the partners of Lever Brothers Pakistan Limited and Lever Brothers Pakistan Limited maintain mutually beneficial relationship with them. Integrity Lever Brothers Pakistan Limited never compromise on integrity management adhere to high standards in all they do. Environment responsibility Management adhere to all national and Unilever standards to ensure health, safety and protection of the environment in which they live and work. Profit It is considered to be the ultimate measure of Lever Brothers Pakistan Limited’s performance and it is required to maintain and grow their business. Product Market Domain This factor indicates where they are going to compete. Lever Brothers Pakistan Limited’s field of operations is the consumer products and business and this is very clearly stated in their mission statement. Organization Key Value It defines that what do they want. They people of organization to be good at or how do they want them to behave and this very clearly stated in mission statement as always stay responsive to change, go for innovation, employee commitment to organizational objectives and mission and creating value for customers. So, if we check the mission statement through this aspect then we can easily state that they have clearly stated what should be the organizational key values and how to reinforce them.
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