Case Study Unilever

1113 Words5 Pages
This case study chronicles Unilever efforts at restructuring, divesting, acquisition, and general streamlining of its worldwide operations. These operations, in 2000, encompassed 1,600 brands in 88 countries. These products are mostly food, personal care, and household products. Around that same year, Co-chairmen Niall FitzGerald and Antony Burgmans decided that Unilever needed to make some rather drastic changes in order to remain competitive. More importantly that competitiveness was the importance that the company maintained ever increasing profitability. The co-chairs planned to bring about this much needed change via institution of an ambitious 5 year plan. This plan was dubbed the “path to growth” strategy. This 5 year plan…show more content…
This sharp decline supports their opinion. I hope that this decline is a byproduct of the expense of their fairly recent acquisitions. I still think Unilever will prosper long term, but not as exponentially, nor as quickly as management may have hoped. Market analysis’s also raise a great deal of skepticism that their can be any strategic compatibility between Unilevers food products and personal care/household products divisions. Some would even suggest that they would be better off as two separate companies. I strongly disagree with that opinion. The end consumers of the vast majority of Unilevers various products will be doing so in the same place on the retail level. They will be buying them at supermarkets and the super-marts that they live in closest proximity to. Unilever is best served having one distribution network in place to distribute its goods. Also, by remaining as one company, they maintain greater leverage when negotiating for contracts, or purchases for all of their brands. For example, if all of Unilever uses one carrier for over the road distribution in North America, they would have greater leverage in negotiating more favorable transportation rates due to the volume the volume they will be transporting. It is my opinion that Unilever is, overall, taking baby steps towards greater profitability. I like the fact that they are being more selective about their brands and concentrating their

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