Unilever Pakistan Limited (UPL):

Unilever was formed in 1930 from two companies: Margarine Unie and Lever

Brothers.

Legal structure and governance

Margarine Unie (Netherlands)

Lever Brothers (UK)

● It was a full business merger, operating as a single business entity.

● Two separate legal parent companies have been maintained:

● Unilever NV (Netherlands) and Unilever PLC (UK).

● This works through an equalisation agreement and other contracts between the two companies.

A global management team

Sandy Ogg

Chief HR Officer

Geneviève Berger

Chief R&D Officer

Michael Polk

President Global Foods, Home & Personal Care

Harish Manwani

President Asia, Africa and Central & Eastern Europe

Doug Baillie

President Western Europe

Dave Lewis

President AmericasPaul Polman

Chief Executive

Officer

Pier Luigi Sigismondi

Chief Supply Chain Officer

Jean-Marc Huët

Chief Financial Officer

Keith Weed

Chief Marketing and Communications Officer

Lever Brothers Pakistan Limited was recognized in Pakistan in 1948.

The location picked for setting up a vegetable oil factory was the town of Rahim Yar Khan.

Its earlier headquarter was placed at Rahim Yar Khan.

But it was lifted to Karachi from Rahim Yar Khan Site in the mid 60’s.

Unilever is now functioning six factories at different locations nearby the country.

About Unilever:

Unilever Pakistan Limited is a part of Unilever- a worldwide company.

Unilever Pakistan Limited is manufacturing more than 50 brands in Pakistan.

Unilever Pakistan limited is entirely owned minor of Unilever Foreign Holding, UK, Unilever PLC (A company merged in the United Kingdom).

The Company is assimilated in Pakistan and listed on the Karachi, Lahore, and Islamabad Stock Exchanges.

Surf.

Vim.

Rin.

Lifebuoy.

Sunlight.

Lux.

Rexona.

Sun silk.

Close-Up.

Unilever has a long list of brands such as:

Blue-Band.

Dalda.

Planta.

Lipton’s Yellow Label.

Brook Bond’s Supreme.

Kenya Mixture etc.

Contd..

BRANDS DIVISION OF UNILEVER:

• Personal care brands:

Axe, Dove, Lifebuoy, Lux, Pond’s, Rexona, Close-up, Sun silk.

• Food:

Knorr, Lipton, Rafhan, Supreme, Walls, Energile, Broke bond A-1, Blue band

• Home care brands:

Comfort, Surf excel, Rin, Vaseline

Vision of UNILEVER:

● We work to build a superior future every day.

● To be the best consumer product company in Pakistan and all around the globe in all departments that we deal in.

Mission Of UNILEVER:

● We comfort people to feel good, look good and get more out of life with brands and facilities that are good for them and good for others.

● We will motivate people to take small everyday actions that can add up to a vast difference for the world.

● We will progress new ways of doing business that will permit us to twin the size of our company while tumbling our environmental impact.

Fast facts :

163,000 employees at the end of the year

20 nationalities among our top tier managers

More than 170 countries in which our products are sold

264 manufacturing sites worldwide

€891 million invested in R&D worldwide

€89 million invested in community programmes worldwide

• Restructured Approach:

A key part of an organizational strategy is to categorize market opportunities by finding a position or a slit in the marketplace that they can trail to take their company ahead of all their challengers. An organization must be able to identify economic, strategic and social considerations that provide early warning that change may be needed. It has been a key objective of Unilever to carry out and address environmental and social disputes.

Unilever Strategy And Structure

Unilever is one of the world’s top three food firms after Nestle and Kraft Foods.

It is world’s second largest boxed consumer goods company – behind Procter & Flutter.

Strong broad-based vital sales growth of 7.4% across categories.

More modest cost base: €1.1 billion savings from supply chain and organizational competences.

Increased asset behind its brands.

Portfolio reshaped through disposals, including North American laundry, Boursin, Lawry’s and Bertolli olive oil.

Portfolio wired through the gaining of Inmarko ice cream in Russia and the planned getting hold of the TIGI hair salon brands.

Named International Supplier of the Year by Tesco for the third year consecutively.

Operational achievements

Unilever financial performance

* Restructuring, disposals and one-off items** Continuing operations

Our ambition is to win share and grow volume in every category and country.

Unilever’s growth priorities

Winning with brands and innovation

● Deliver larger products, design, branding and marketing.

● Bigger, better, faster innovations.

● Appeal to more consumers across needs and price points.

Winning in the marketplace● Lead market development.

● Win with winning customers.

● Be an execution powerhouse.

Winning through continuous improvement

● Spare, approachable and consumer-led value chain.

● Drive return on brand support.

● Swift, cost-competitive organisation.

Winning with people

● Organisation and varied talent pipeline ready to match our growth desires.

● Performance culture which compliments our values.

● Influence our operating framework for modest advantage.

Strong category positions

Unilever’s portfolio of categoriesLeading category

positions

Ice Cream & Beverages

Personal Care

Homecare

Savoury, Dressings & Spreads

Top 25 brands = almost 75% of Unilever’s

sales*.

Big global brands

€15.3 billion spent on raw materials and packaging from over 10,000 suppliers in 2009

Raw materials and ingredients

Our share of world volume:

Preliminary data pending audit.

Planning

Organizing

Leading

Controlling

Management Functions:

Planning is a management task that involves essential goals, launching strategies, emerging plans to assimilate and match up activities.

In Unilever most of planning is thru by the top management of the company. And they make plans linking to marketing of products like advertisement of product through different modes like electronic or print media.

Upper-managements consist of:

• Chairman

• President

• Board of directors

PLANNING:

• Organizing means defining what needs to be done, how it will be ready and who is to do it?

• Organizing is absolutely a very important function achieved by a manager. In Unilever organizing is even more significant because of its massive size and multinational status. And they organize their employees by handing over appropriate work that is related to their description and according to their capabilities.

ORGANIZING:

• Leading involves motivating, leading and any other actions involved in dealing with the people.

• Marketing manager in Unilever leads his staffs as well. He has to motivate and encourage them in times of disappointment and guide them in certain matters of work. One such example is when one of employees was not able to work properly because of some uncertain reason, in this situation he had to step in and motivate him to focus on his work. He also tries to have good relation with his employees to be able to lead them accurately.

LEADING:

• Controlling means observing activities to confirm that they are being gifted as per the plan.

• In Unilever all employees are expected to avoid personnel activities and financial benefits which could conflict with their farm duties to the company. Manager tries to make sure that his department is working according to the directions assigned to them and they are not involved in any time killing activities. He estimates the results after every certain time to make sure the goals allotted to him and his department is being achieved as probable. If there is any doubt in work then he informs the employee responsible and guides him in the matter and takes action according to the situations.

CONTROLLING:

Graph Of Skin Care & Hair Care Market:

Market Share Of Grocery:

Unilever is a Multinational corporation and it requires its mangers have positive skill level.  Unilever has strict signing rules and hires only people who are up to skill level that they need. According to the methodology developed by Robert L. Katz, managers need three essential skills. Those skills are:

• Technical Skills

• Human Skills

• Conceptual Skills

Management Skills:

Technical Skills are the job-specific information that a manger needs to have. A manager needs to have technical skills concerning marketing and elevation of a product. Without these he won’t be able to perform tasks associated to his field.

Technical Skill:

Human skills contain ability to work well with people both exclusively and in a group. For any marketing manager human skills are of prime importance as he has to cooperate with different people in marketing world and also to increase favor of company plus its products. So he needs to be very good with people. Other than that he also has to interconnect with his employees and motivate, and communicate with them for getting better and active output from them.

Human Skills:

Finally, conceptual skills which are also very for any business linked personal. Having basic skills of being able to solve intellectual and complex situations is very important. A manager has to solve various compound problems like making marketing plans for the product. And since Unilever is a vast company he also needs to understand connection among various subunits, and organization’s structure and how it fits in atmosphere. Though needs skills a lot but these skills are more important to top managers of the organization.

Conceptual Skills:

SWOT analysis, is a deliberate planning tool used to evaluate the strengths, weaknesses, prospects and threats involved in a project or in a business scheme. It involves postulating the objectives of business venture or project and recognizing the internal and external factors that are favorable and unfavorable to achieving that objective. The SWOT analysis classifies the internal aspects of the company as assets and weaknesses and exterior situational features as opportunities and threats.

Swot Analysis Of Unilever:

Strengths are core factors of the organization. Unilever is one of worlds foremost fast moving consumer goods (FMCG) companies. In year 2008 its Net profit enlarged from 4136 Millions to 5285 Millions (euro). Major strengths of Unilever are as following: The first and most important strength of Unilever is the image

of the company itself. Strong brand names. Most of Unilever’s brand names are

leading products in their particular category e.g. blue band, surf excel etc.

Unilever has got Sound and experienced management with qualified administrators running operations.

Excellent marketing department helped by a highly regarded marketing research unit.

Merger with Brooke bond was expected to result in cost saving and spur earnings growth and its working as per hopes.

Unilever products have good status among their customers because of good product quality.

Range of its product line is also a major strength of Unilever.

Strengths:

Weaknesses are that what the organization cannot do but its participants can do better than it. About 80% of raw material is imported for the

manufacturing of the consumer goods. Raw material set up about 85% of manufacturing cost, leaving Levers edge exposed to rupee deflation.

Extensive smuggling of tea and detergents has completely affected levers sale and earning. Unless the govt. takes serious steps to control smuggling growth in sales and earning will continued to be significantly self-possessed.

One of the weaknesses of Unilever and it’s products especially when selling in a developing country like Pakistan is it’s product prices which are a little if not more higher than what a regular rural person could afford.

Another weakness for Unilever is what should be its major strength as well. The size of corporation is so huge that it’s difficult to manage all the units and their specific departments. So sometimes some products get more courtesy and some stay hidden from sight.

Weaknesses:

Opportunities are the chances for an organization to do better.

• The swift expanding urban population in Pakistan is the key opportunity for Unilever to extend its sales.

• Awareness growing in rural areas due to education and children with family members abroad sending foreign income is also potential costumers for Unilever.

• Unilever can also stretch their market to African countries where there could be a large market for their products in the future.

Opportunitis:

Threats are the hurdles for an organization to proceed.

• Procter & Gamble is the significant multinational company and a major threat with presences in soap, detergents and personal products.

• Rise in the inflation rate in the world because of economic crisis can also results to fall in sales of the company due to low purchasing power of consumers. Inflation rate also affects companies cost of production because rise in prices of raw material

• There are many opponents of Unilever in Market including P&G, Nestle and Kraft Foods who are fighting hard to leave one another behind.

• Variability of Pakistani Political system has always been a major threat for companies operating in Pakistan and it’s not different for Unilever. Changing political system affects Pakistani economy as well as organizations operating under it.

• There is also a trend of rising small opponents in Pakistan in consumer product industry recently which can also affect Unilever’s sales especially in rural areas.

Threats:

Unilever is a very strong multinational corporation with a lot of assets, including its strong management, to run its operations to the heights of success. It also has a few weaknesses but those are very minor ones that are present with every organization and it also has got the resources and managerial muscle to cope with those weaknesses and threats. It also has major opportunities to flourish its business to African continent and to rural areas in developing countries like Pakistan and India. In the near future with globalization of world continuing Unilever will be even bigger and stronger.

Conclusion: