Seminar: Unilever’s Business Approach

Topic Number: 4

Principles of Business

2

Overview

Unilever is one of the largest FMCG companies in the world, with a host of leading brands. The organisation is committed to a strategy of sustainability where it is looking to half its environmental footprint whilst doubling revenues by 2020.

We will look at the changing role of business through this case study and evaluate the challenges that a global organisation such as Unilever may face.

We will commence the seminar with an overview of the organisation, including an evaluation of their mission. Thereafter, we will look to understand how they live their mission in different countries in which they operate. Finally, we will consider some of the global operational challenges that they face.

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• Critically evaluate and articulate how and why Unilever derived at their new strategic approach?

• Describe the type of activities have they taken to drive through their mission

• Be able to contrast two different business environments in which they operate considering the implications for Unilever

• Determine and describe the global operational challenges that they may face in order to see their sustainability strategy through

Learning outcomes of this seminar

Agenda for this seminar

What type of activities have they taken to drive through mission in reality?

Contrast two different business environments in which they operate considering the implications for Unilever

Consider the global operational challenges that they may face in order to see their sustainability strategy through

Critically evaluate how and why Unilever derived at their new strategic approach?

Structure for the session

You will have 15 minutes to

discuss each question

We will have a de-brief at the end of each 15 minutes to hear your thoughts on each area

Feel free to ask questions but please do not have separate conversations ‘we are all in

this together’!

About Unilever

Source: Unilever.com

Business at a Glance

Source: Unilever.com

Business at a Glance

Critically evaluate how and why

Unilever derived at their new strategic

approach?

A word from the top

View video: https://www.youtube.com/watch?v=utSYAkQi5hY#t=31

Strategic Approach

Source: Unilever.com

Strategic Approach

Source: Unilever.com

How successful have they been?

View video: https://www.youtube.com/watch?v=rL4mLbcfoHc

What type of activities have they

taken to drive through mission in

reality?

Creating a win-win strategy

View Video: http://www.youtube.com/watch?v=nShlnBJko5s

Driving the mission through 9 goals

Source: Unilever.com

Improving health and well being

View video: https://www.youtube.com/watch?v=g4t77d7XBhc#t=62

Reducing environmental impact and enhancing lives

Source: Unilever.com

Contrast two different business environments in

which they operate considering the implications for

Unilever

Re-cap: The different lenses to assess

Source: Bovee et al 2013

Changing priorities between the Europe & Asia

What approaches are applicable in the UK & India? Why?

Source: Unilever.com

Market Dynamics: Europe & Asia

W Europe Asia

• Slow growth/stagnation

• High GDP per capita

• Economic uncertainty

• Highly developed

• Fast growth economies

• Generally lower GDP per capita

• Economic boom

• Less developed with greater opportunities for market development

Consider red ocean strategies

Consider blue ocean strategies

Emerging markets source of growth

Source: Unilever.com

Unilever regional financial performance

Source: Unilever.com

A changing revenue picture at Unilever

Source: Unilever.com

Consider the global operational

challenges that they may face in order to see their

sustainability strategy through

Consider Unilever’s Supply Chain

View video: http://www.youtube.com/watch?v=-KiAeO75JnU

Re-cap: Physical and Social Factors

• Geographic influences– natural conditions influence business locations

• Political policies– countries determine where and how business occurs

within their borders

• Legal policies– influence how a company operates

• Behavioral factors– may require adaptation in to local conditions

• Economic forces – explain differences in costs, currency values, market size

Source: Daniels et al, 2013

Re-Cap: The Competitive Environment

• Competitive strategy for products– Cost strategy– Differentiation strategy– Focus strategy

• Company resources and experience– market leaders have more resources for international

operations

• Competitors faced in each market– local or international

Source: Daniels et al, 2013

The Competitive Environment

View video: http://www.youtube.com/watch?v=33Theeovq1c

End of Seminar

Note: This recording is for your personal use only and not for further distribution or wider review.

© Pearson College 2013