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PRINCIPAL OF MANAGEMENT
REPORT ON

PREPARED BY: JAHANZAIB AHMED

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 TABLE OF CONTENT

S. No CONTENT Page No
01 Unilever
Vision Statement 06
Mission Statement

02 History 06-07
03 Current Management & Geographical Structure 08-09
04 Unilever Management Strategy
• Five Forces Model By Porter
• Strategic Position Of The Company 09-13
• SWOT Analysis
• BCG Matrix
• Conclusion

05 Future Management Strategy 14

06 Recommendation and Justification 15
07 Conclusion 16

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 UNILEVER
Unilever is a British-Dutch transnational consumer goods company co-headquartered in London, England,
and Rotterdam, Netherlands. Its products include food, energy drink, ice cream and beverages, cleaning
agents, beauty products, and personal care products. Unilever is the largest producer of soap in the world.

VISION STATEMENT
Unilever’s corporate vision is “to make sustainable living commonplace. We believe this is the best
long-term way for our business to grow.”

MISSION STATEMENT
Unilever’s corporate mission is “to add vitality to life. We meet everyday needs for nutrition,
hygiene and personal care with brands that help people feel good, look good and get more out of
life.”

HISTORY
Unilever began with British soap-maker company named Lever Brothers. Their revolutionary action in
business was by introducing the Sunlight Soap in 1890s. That idea was from William Hesketh Lever, founder
of Lever Brothers. This idea helped the Lever Brothers become the first company that help popularize
cleanliness in Victorian England. Moreover, the product rapidly emulated globally after that it was a success
in UK and made Lever Brothers obtained more business worldwide. One of the reasons of this success was
the strategy from William that not only prioritize on selling the products but also focus on manufacturing
them.

On the other side, in 1872 Jurgens and Van den Bergh created a company that produces margarine. Since
there were many competitors in the margarine industry in Dutch, in 1920s, Jurgen and Van de Berth decided
to strengthen their company by joining another margarine manufacturer in Bohemia. In 1927, there were
three companies including Jurgen and Van de Berth company which formed Margarine Unie located in
Holland.

In 1930, the Lever Bros merged with the Margarine Unie and even though, an international merge was an
unusual move at that time, both of the two companies have the same vision that by doing this merge with
strong global networks would create new opportunities. Finally, the name of “Unilever” was created by the
merge of the companies. Not too long after Unilever was formed, they got a big problem which was that their
raw material companies were reduced from 30% to 40% in the first year. As that problem started to attack,
Unilever had to react quickly by building up an efficient system of control. In September of 1930, Unilever
established the ‘Special Committee’ that was designed to stabilize British and Dutch operate and concern as
an internal cabinet for the organization.

In the 1930s, Unilever continued to grow their business when they promoted their products in America Latin.
To keep it growing, Unilever adapted a new strategy in 1940s by widening their business areas and create
new areas such as particular food and chemical manufactures. Furthermore, Unilever recognized that there
were something more important than widening their areas, it was the relationship between marketing and
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research that they must focus on. Therefore, Unilever expanded their operation by making association by two
important actuations in US, those are Thomas J. Lipton company, manufacture of tea, and the Pepsodent
brand of toothpaste in 1944. In 1957 Unilever continued their actions by associating with U.K. frozen food
maker birds eye, and in 1961 with U.S. Ice cream novelty maker Good Humor.

In the 1980s Unilever made a revolutionary restructuring by selling most of its subsidiary business to
concentrate the company’s core business. Eventually, foods, toiletries, detergents and special chemicals were
the Unilever’s core business. This restructuring also helped Unilever to make a collaboration with
Chesebrought-Pond’s in U.S. in 1986. That collaboration made a big impact to Unilever, their profit margin
increased. Furthermore, Unilever bought Chesebrought-Pond in 1987.

Nowadays, Unilever become the world’s most consumed product brand in home care, personal care and
food.Unilever owns over 400 brands, with a turnover in 2017 of 53.7 billion euros. Unilever has two main
parenting companies, they are Unilever NV in Rotterdam and Netherland and Unilever PLC in London, UK.
However, Unilever still has two major competitors named Nestlé and Procter & Gamble. Unilever has
several worldwide products in foods such as Lipton, Knorr, Blue Band, Ben and Jerry, Walls, and Brooke
bond. In home care, they have Surf, Sun, Radiant, Domestos and Skip. In personal care, they have Ponds,
Vaseline, Rexona, Lux, Dove, Lifebuoy, Pepsodent, Sunsilk.

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 CURRENT MANAGEMENT STRUCTURE
The following are the corporate executive team in Unilever's organizational structure:

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GEOGRAPHIC STRUCTURE.

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Geographic divisions are a minor feature of Unilever’s organizational structure. The company uses this structural
characteristic to support regional strategies. For example, Unilever’s marketing strategies for Europe are different
from strategies applied for Asian consumer goods markets. Also, this corporate structure feature is used to analyze
the company’s financial performance. The following geographic divisions are maintained in Unilever’s organizational
structure:
• Asia/AMET/RUB (Africa, Middle East, Turkey; Russia, Ukraine, Belarus)
• The Americas
• Europe

UNILEVER MANAGEMENT STRATEGY

Nowadays the strategic process of a company is not less important than it’s any other functional movement.
A profound analysis of strategy should be inclusive of a well-polished plan which must be well-thought-out
redefined. Mission and vision of the company are typically engrossed by the strategic planning tools
(Dellinger, 2010). Since antagonism is on the rise in the business world, young entrepreneurs these days
cultivate different strategic tools to encounter the hindrances in the path of advancement. Operational
objectives are set by the business itself to visualize the prophecy indulged in. The avowal proclaimed by the
organization is based on an explicit goal and to attain these prescribed goals, certain tactical methods are
applied hereby. After outlining a non-volatile plan the organization has to have a steady formation regarding
their future operational procedure. Besides, the tactics occupied by the business to solve nearly all types of
difficulties prevalent in a business. Thus, the strategic analysis and strategic managements are regarded as the
central portion of any business plot (Ansoff, 1979). At this point we will be discoursing on one of the largest
user-friendly consumer goods and chattels manufacturing company called as Unilever. A short discussion
over the analytical aptitude and tactical procedure of development regarding the managerial function of the
Unilever Company will also be revealed here in this composition.
Undoubtedly Unilever is such a widespread company that has validated its supremacy over the rivals and on
their path of glory it satisfied almost all kinds of forecasting as well as the functional goals set by the
managements. At this time, we will confer about the predictions, operational goals along with their
undertakings.
A system of reasonable living has been set up by Unilever in 2009. Just before working for the system they
need to make their business twofold later on. Unilever is concentrating on the natural issue where they need
to dodge the terrible effect on atmosphere over their workouts. Unilever exceptionally know well that the
common matters are extremely paramount in escalating the manageability of the business movements.
Unilever is trying to make more feasible business by offering necessity to social issues. This is the norm of
their applied merchantable approach.
Unilever has an extensive variety of aptitude. These master individuals work to the isolated piece of the
world and furnish individuals with the finest sorts of items to bring about a significant improvement. A
procedure is taken after by Unilever to blanket the same number of segments as they can. They need to make
their methodology actualized through the association with the industry.
They rely on the fact that they can roll out improvement in the people’s group existing by leveraging their
existence with such a large number of brands. They need to be a part of people’s group consistently and be a
buddy of the normal life. Unilever truly believe that they are mindful around the difficulties of the world.
This is the obligation of each business to create a commitment to the general public and to roll out an
extensive variety of improvement to these issues. Also, they are exceptionally euphoric that they are making
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a way for more reasonable and impartial mother earth for the human. It is believed by Unilever that on the
off chance that they need to roll out an improvement in their procedure well enough to be changed. Unilever
is viable in sense that they are making such a variety of brands and affecting the entire communal group’s
life. A deep focus is being enlightened to concentrate on maintainable development with the new strategic
approach of their business. They are thinking of ornamenting their center abilities and they certainly need to
make their procedure more solid and work for superior avowal.

Linking their necessities & standards to the event of the individuals:

Unilever keep an eye on their fundamental ethics of providing individuals an enlarged experience of looking
great, feeling great and they trust indeed that they do conduct a reasonable business by making and relating
the business.

Obstacles faced by Unilever in the path of advancement

We have nearly over then 700 million folks in our mother earth. The characteristic assets here are monstrous.
The globe around us is confronting numerous common issues like the high temperature change in ecology
and a quick decline in our characteristic assets.
Unilever is ruminating their business as the chunk of the answer for these issues. A fare development appears
to be the main answer for an adequate business operated by them.
Currently their test is to defeat these issues and offering answer for the individuals through their Brands and
business exercises.
Some of the focal tools which are very crucial for strategic review will be conversed here in this fragment.
Among those of Porter’s Five Forces, Porter’s Generic Model etc

Five forces model of Porter:

This is such a kind of model that converse about the five compels that the business faces. Here, we will be
talking about the five powers in pertinent with the Unilever.
Porter’s five forces model is a system to inspect side by side of rivalry inside a business and occupational
procedure advancement

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Suppliers bargaining power
The supplier force of business portrays the way that the power that resource grips to deal with them. Here,
the contractor force can be both near the ground or much higher.
Unilever confronting the issue and the methodology: Nowadays Unilever has enlarged their business
everywhere throughout the world nearly in every nation. Here, the Unilever need to manage the
neighborhood merchants. The contractors here are more persuasive than the organization and they have the
bartering force to act against the organization. Anyhow for this situation Unilever takes after the
methodology to provide for them the best arrangement. They offer them a long haul business bargain. The
suppliers additionally feel more safeguarded to do business with so vast organization
Buyers bargaining power
In this circumstance the organization need to concentrate on the haggling force of the client; the more the
client have alternative the more they can do negotiating (Kane, 2000). The fewer they have the decision the
fewer is there bartering force.
Unilever confronting the issue and their technique: Unilever manages the customer merchandise. There
are numerous world class goliath organizations who are managing purchaser merchandise. As because there
prevails a large number of rivals in the market so the customer have a tons of decision to try for different
brands. So the bartering force of the customer is high. Thus, this organization gives best conceivable item
with the most minimal expense. So the Buyers are centered on the merchandise made by Unilever.

New competitor threat

At this node, the aggressive competition implies the contenders who propose the comparative item with the
comparable value range. The total number of contenders they have the scope of potential outcomes that they
may be losing the business sector.
Unilever confronting issue and their technique: Unilever has numerous competitors in the existent market.
These are for the most part the global players and plotting and battling for the worldwide market. The
neighborhood contenders have a finer understanding of the business and the administration help.
Unilever concentrate on item cost and their business sector. They do great research and attempt to make the
best client esteem for the individuals. They can effectively separate their item from the others. They have
been doing the best showcasing fighting so they could be more skilled then their contention.

Substitute product
Danger to substitution implies the purchaser partaking the favorable circumstances to shift to other
alternative items. For this situation if the organization is not able to give the products in the scope of buyer,
he will be changed.
Unilever confronting issue and their methodology: Unilever has extensive variety of brand. The brands
here are so mainstream and some are a bit extravagant.
Unilever have created the bathing gel and soap bathing gel generally cost more than the cleanser. Anyway
the shower gel is extravagant then the body cleanser. As there is conceivable opportunity to shift from
shower gel to cleanser if the purchaser neglects to bear the cost of the cost.

New competitor threat

The danger to new entrance implies the conceivable risk of entering the new rival in the business.

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Unilever confronting issue and their method: Unilever dependably confronts these issue. They have
business all as far and wide as possible and they can't maintain a strategic distance from these sorts of
danger. Unilever have the playing point of a lot of marque line. They create a similar class result of their
client and offers them in the least expensive conceivable cost. Thus, new contenders think that it is hard to
survive in the business sector.
STRATEGIC POSITION OF THE COMPANY.
The business unit should set up a marketing intelligence system to track tends and important developments.
For each trend or development, management needs to identify the associated opportunities and threats.
SWOT ANALYSIS:
The overall evaluation of a company’s strengths, weaknesses, opportunities, and threats is called SWOT
analysis.

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BCG MATRIX framework created by Boston Consulting Group to evaluate the strategic position of the
business brand portfolio and its potential. It classifies business portfolio into four categories based on
industry attractiveness (growth rate of that industry) and competitive position (relative market share).

Conclusion
From the aforesaid oeuvre we have concentrated on the way that Unilever is a Universal Company that
centers its vital strategies and needs to fabricate their brand more viable and more effective way (Summers,
2000). At the point when an organization makes up its procedure it has to characterize how they are going to
putting effort on it. Unilever accept that it is imperative to make association with the emergent business.
Here, we have attempted to concentrate on five forces model of Porter where we have conferred about the
existing circumstance. This is how Unilever operates their strategic management process by adopting the key
performance indicator and abide by the persuasive rules of business analysis.

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 FUTURE MANAGEMENT STRATEGY
Firstly, they are evolving their structure to be based on three Divisions:
These Divisions - Beauty & Personal Care, Home Care, and Foods & Refreshment - will be more
empowered, with greater responsibility for making long-term strategic choices and managing financial
performance.
All three divisions will continue to benefit from Unilever’s global scale and route to market.
The headquarters of the Beauty & Personal Care Division and the Home Care Division will be located in
London.
This secures nearly £1 billion per year of continued spend in the UK, including a significant commitment to
R&D.
The headquarters of the Foods & Refreshment Division will continue to be based in Rotterdam.
Secondly, they are proposing to simplify their corporate structure:
Unilever intends to simplify from two legal entities, N.V. and PLC, into a single legal entity incorporated in
the Netherlands. This reflects the fact that the shares in N.V. account for approximately 55% of the group’s
combined ordinary share capital , and trade with greater liquidity than PLC shares.
Unilever will continue to be listed in London, Amsterdam and New York.
The proposed simplification will provide greater flexibility for strategic portfolio change and help drive long-
term performance.
The changes also further strengthen Unilever’s corporate governance, creating, for the first time, a ‘one
share, one vote’ principle for all shareholders. Upon completion, the N.V. preference shares will be
cancelled, and it is intended to close the N.V. Trust Office and terminate the related depositary receipt
structure. Unilever will also continue to apply both the UK and Dutch corporate governance codes.

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Unilever’s employment of 7,300 people in the UK and 3,100 people in the Netherlands will be unaffected by
the changes announced today. (SOURCE UNILEVER'S WEBSITE).

RECOMMENDATION AND JUSTIFICATION

As they already decided to make UNILEVER PLC AND UNILEVER N.V one unit, that’s a very needed
step to take.
They should make a strong communication connection direct with consumer. Benefits of this is they get
instant feedback from consumer, in result they can make product more convenient for customer. Also
because of direct connection with consumer Unilever may also able to customize product according to the
wish of consumer.
When Unilever connect directly with customer then dependablity on individual products brands will reduce,
which might be a cost effective, because individual products brands are not needed employment force for
customer relations.
How it would be cost effective?
Example:
We take an example of Lux and Dove, they both are different product under the umbrella of Unilever, Lux
has their own force for customer relations and Dove has it own. If the customer relations process come in the
umbrella of Unilever customer relations department, then there is no need of customer relations department
individually for Lux and Dove.
For instance Lux and Dove have their own employment force for CRM(No of Employees 200, each). When
it comes in the umbrella of Unilever than 200, employee are enough to deal with CRM of both product. All
weaknesses which are written in SWOT analysis can be overcome through this step.
Second recommendation for UNILEVER MANAGEMENT is they should invest in the communication
sector as we know it's growing sector of this era and in future it will be boast.

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How can Unilever invest in communication sector.
As we all know right now there is no SIM which can be useable in international level with same call/sms
rate. Need of the hour is there must be communication SIM which can be used in any state without roaming
or any extra charges. It gives benefits to those people who frequently travel abroad. Like Sportsman,
Businessman, politician and other elite class.
In this communication service no matter where users are staying they can used their SIM as normal as they
used in their hometown, amount will be charged in any universal currency(Like Dollars).
I’m suggesting to invest in communication sector because of recent crisis of COVID-19. COVID-19 hit
badly too many companies but communication sector boast up in this crisis. If Unilever invest in this sector
and the same like circumstances come again in future then they at least have their one own product which
can be survived in such circumstances.

Conclusion:
In 1930 Unilever start their business and now they completed their 90 years journey. In this journey Unilever
faced too many Global Political, Social and Health issue. WW2 is also happened when they start their
journey. Despite the all issues this company not only survived but also boast their business in a worldwide.
One thing which we can learn from UNILEVER MANAGEMENT is never ever lose hope while working on
any vision no matter how much time you faced difficulties or failure.

Just learn from your experiences let the Success become your destiny

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