IB presentation

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PRESENTATION

CASE NAME

A Decade of Organizational Change at Unilever

ACTIVE GROUPNafisa Nawar

ID: 11123101136

Rozina AkterID: 11123101179

Md. Khurshid AlamID: 11123101160

Farzana SultanaID: 11123101175

Md. Istiak Ahmed Rashed

ID: 11123101154

Md. Abdul Hannan ShaonID: 11123101137

MD. ARAFATER RAHMAN BHUIYANCHAIRMAN

DEPARTMENT OF MANAGEMENTBUBT

SUBMITTED TO

Unilever is an Anglo–Dutch multinational consumer goods company co-headquartered in London, England and Rotterdam, the Netherlands.

Its products include food, beverages, cleaning agents and personal care products.

Unilever owns over 400 brands, but focuses on 14 brands. Unilever was founded in 1929 by the merger of the British

soapmaker Lever Brothers (founded in 1885 by William Hesketh Lever).

UNILIVER

Their Vitality mission commits them to growing their business by addressing health and nutrition issues.

They focus on priorities including children and family nutrition, cardiac health and weight management.

Mission Statement of Unilever is: “feel good, look good/and get more out of life”

MISSION

A clear direction. A better future for children. A healthier future. A more confident future. A better future for the planet. A better future for farming & farmers.

VISION

BRANDS

Unilever is a winning company and they are committed to winning with integrity.

The Unilever Code Compliance Framework is divided into three pillars: Prevention, Detection and Response.

These pillars encompass a comprehensive system of activities by which we ensure that the way we do business.

VALUES

They encourage their companies to engage with local governments and other organisations to help inform public policy.

This is done both directly and through bodies such as trade associations.

They take part in multi-stakeholder debates and when relevant respond to public consultations.

PUBLIC POLICY

AWARDS

CASE QUESTION

Why did uniliver’s decentralized organizational structure make sense from the 1950’s through the 1970’s? Why did this structure start to create problems for the company in the 1980s?

QUESTION NO 1

Unilever was organized on a decentralized basis subsidiary companies in each major national market were responsible for the production, marketing, sales, and distribution of products in that market in western Europe.

For example: The company had 17 subsidiaries in the early 1990s, each focused on a different national market.

Each was a profit center and each was held accountable for its own performance.

Answer……….

This decentralization was viewed as a source of strength. On the other hand we can say decentralization for unilever.

The structure Start to Create problems for the Company Because:The structure start to create problems for the company in the

1980s because Unilever global competitors Nestle and Procter and gamble had been more successful than Unilever and the other different global brand products with low price.

Answer Continue……….

The structure creates problems for the company on several fronts-Building Global Brands.Reducing costs structured by consolidate Manufacturing cost

operation at a few choice locations.Executing simultaneous product launches in several national

markets. It also meant lots of duplications.Lack of scale.High cost structure.

Answer Continue……….

What was Unilever trying to do when it introduced a new structure based on business groups in the mid-1990s? Why do you think that this structure failed to cure Uniliver’s ills?

QUESTION NO 2

Unilever began to change all this in the mid 1990s. In 1996 it introduced a new structure based on regional

business groups. Each business group included a number of divisions, each

focusing on a specific category of products. Those groups and divisions co-ordinate the activities of

national sub soldieries within their region drive down operating cost and speed up the process of developing and introducing new product.

Answer Continue……….

Some new products were manufactured at only one site. Product sizing and packaging were harmonized to cut

purchasing costs. Unilever were able to reduce cost by $400 million per year

in European operation.

Answer Continue……….

The structure failed to cure Unilever's ills for different reasons such as: In the year 2000 Unilever found that it was still lagging behind its

competitors. Unilever was failed behind rivals in the race to bring new products to

market. Cost effectiveness could not be achieved. They failed to execute simultaneous product launches in several

national markets. The new structure failed because they could not modify or improve

their products as their competitors did.

Answer Continue……….

In the 2000s Unilever has switched to a structure based on global product divisions. What do you think is the underlying logic for this shift? Does the structure make sense given the nature of competition in the detergents and food business?

QUESTION NO 3

In the year 2000 Unilever has switched to a structure based on global product divisions.

The logic for this shifts are given below: The targeted goal was to cut the number of brands on a regional or

global scale.They tried to improve their previous structure with some new

innovative ideas so they shift to a structure based global product divisions.

They are able to reduce to the cost effectively.

Answer Continue……….

Yes, the structure made sense given the nature of competition in the detergents and food business. The company established a new organization based on just two

global product divisions – A food division. A home personal care division. Each division focuses on developing,

manufacturing, and marketing for detergents and food business.

Answer Continue……….

The new structure made sense because the customers wants the best brands.

They demands for high quality products. They want reputed brands and through this structure the Unilever

may able to satisfy the customer needs and demands.

Answer Continue……….

PROBLEMS STATEMENTS Restructuring and downsizing are necessary as a response to

changes that occur both inside and outside the organization but often organizations are not able to incorporate these strategies efficiently thereby leading to mismanagement of human talent and resources.

RECOMMENDATION

Making a positive contribution to society through our brands, our commercial operations and relationships, our voluntary contributions to the community and through our wider engagement with Bangladeshi society. Improving the quality of life.Business of fulfilling dreams.Aspiration beyond means.Adding value through innovation.

POSITIVE ASPECTS

NEGATIVE ASPECTS

QUESTIONS TO BE ANSWER