Case Study on Unilever’s Path to Growth Strategy: Is It Working?
2447 Words10 Pages
I. Current Situation A. Current Performance: Unilever is a world renowned company, which was created in 1930 through the merger of margarine Unie, a Dutch margarine company and British-based Lever Bothers, soap and detergent company. Unilever had 1600 brands and sales & marketing efforts in 88 countries all over the world. The main target were to get top-line sales growth of 5-6 percent annually and to increase operating profit margin from 11 percent to over 16 percent both to be accomplished by the end of the year 2004.They cutting down their portfolio from 1600 to 400 core brand. Increasing profit margin to 11 to 16 percent by year end 2004. Unilever had extended its brand portfolio 500 to 600 brands in 2003 and…show more content… In India they launched a product called Surf Excel Quick Wash, and what that product does is, it uses two buckets less water for the hand-wash market than equivalent.
II. External Environment A. General Environment Unilever is one of the leading suppliers of fast-moving consumer goods with products on sale in more than 170 countries. With a strong portfolio of foods, home and personal care brands, their business impacts a wide range of stakeholders – from individuals in local communities to national governments and international organizations. People contact them about various concerns: these may be very specific or local issues (such as traffic from their factories) or more complex global issues such as the need for sustainable palm oil or to reduce animal testing. Their Code of Business Principles commits them to running their operations with honesty, integrity and openness. Their approach is always to investigate, understand and discuss issues of concern and respond. However, they realize that in running a business of the size and scale of Unilever, they do not always 'get it right' and need to learn from their mistakes if they are to continue to be a respected and responsible business. B. Industry Environment The food and household products industry was composed of many subsectors, each with differing growth expectations, profit margins, competitive intensity, and business risks. Industry