Introducing Unilever

No matter who you are, or where in the world you are, the chances are that our products are a familiar part of your daily routine. Every day, around the world, people reach for Unilever products.

Unilever today
Our brands are trusted everywhere and, by listening to the people who buy them, we've grown into one of the world's most successful consumer goods companies. In fact, 150 million times a day, someone somewhere chooses a Unilever product. Look in your fridge, or on the bathroom shelf, and you're bound to see one of our well-known brands. We create, market and distribute the products that people choose to feed their families and keep themselves and their homes clean and fresh. People's lives are changing fast. As the way we all live and work evolves, our needs and tastes change too. At Unilever we aim to help people in their daily lives. So we keep developing new products, improving tried and tested brands and promoting better, more efficient ways of working. We have a portfolio of brands that are popular across the globe - as well as regional products and local varieties of famous-name goods. This diversity comes from two of our key strengths:
• •

Strong roots in local markets and first-hand knowledge of the local culture. World-class business expertise applied internationally to serve consumers everywhere.

Focusing on performance and productivity, we encourage our people to develop new ideas and put fresh approaches into practice. Hand in hand with this is a strong sense of responsibility to the communities we serve. We don't only measure success in financial terms; how we achieve results is important too. We work hard to conduct our business with integrity - respecting our employees, our consumers and the environment around us. Unilever is one of the world's leading suppliers of fast-moving consumer goods. Here are some recent highlights from our three global divisions - Foods, home care and personal care.

Foods:•

• •

The acquisition of Bestfoods in 2000 brought us leadership in the culinary category. Knorr is now our biggest brand, with €2.3 billion sales in over 100 countries and a product range covering soups, bouillons, sauces, noodles and complete meals. We are the number one producer of frozen foods in Europe, under the Findus brand in Italy, Birds Eye in the UK and Iglo in other European countries. We are the category leader in margarine and spreads in most European countries and North America, with brands such as Becel (the Netherlands), Flora (UK) and Take Control (US). We have met consumer demand for healthy foods by launching pro.active, a spread which contains ingredients that can help reduce cholesterol levels. In the branded olive oil category we are a leader, the most important brand being Bertolli. Appealing to consumers' taste for Mediterranean food, we have launched Bertolli pasta sauces and dressings. We are the world's leading ice cream producer, with brands such as Algida and Wall's in Europe, and Ben & Jerry's in the United States. Innovations such as Magnum snack-sizes and Cornetto miniature and multi-packs have sparked progress. We are the largest seller of packet tea in the world through our Lipton and Brooke Bond brands.

Home & personal care:• • • •

We lead the home care market in much of the world, which includes cleansing and hygiene products. Many of our home care products are market leaders including Brilhante, Cif, Comfort, Domestos, Omo, Skip and Snuggle. Within the personal care market, we are global leaders in products for skin cleansing, deodorants and antiperspirants. Our global core brands in the personal care market are Axe, Dove, Lux, Pond's, Rexona and Sunsilk.

HISTORY Unilever was formed in 1930 when the Dutch Margarine Company Margarine Uni merged
with British soap maker Lever Brothers. Companies were competing for the same raw materials, both were involved in large-scale marketing of household products and both used similar distribution channels. Between them, they had operations in over 40 countries. Margarine Unie grew through mergers with other margarine companies in the 1920s. Lever Brothers was founded in 1885 by William Hesketh Lever. Lever established soap factories around the world. In 1917, he began to diversify into foods, acquiring fish, ice cream and canned foods businesses.

In the Thirties, Unilever introduced improved technology to the business. The business grew and new ventures were launched in Latin America. The entrepreneurial spirit of the founders and their caring approach to their employees and their communities remain at the heart of Unilever's business today. Unilever NV and Unilever PLC are the parent companies of what is today one of the largest consumer goods businesses in the world. Since 1930, the two companies have operated as one, linked by a series of agreements and shareholders that participate in the prosperity of the whole business. Unilever's corporate centers are London and Rotterdam. Margarine Uni and Lever is taken for Unilever. Its head quarter was established at England and Rotterdam. Unilever has 500 operating companies in 100 countries. It has 0.3 million employees and turnover of sales in 23000 million pounds. The global business proportion is 60% in Europe, 20% in North America and 20% in Rest of the world. An identical board of directors controls the activities of subsidiary companies throughout the world.

Unilever Pakistan history
In the world of consumer products Unilever Pakistan has created an indelible name for itself with brands such as Lifebuoy, Lux, Surf and Walls.

Unilever Pakistan Limited needs no introduction
By far the largest consumer products company in Pakistan, UPL is a part of the consumer products giant Unilever. UPL was established some fifty years ago in the then newly created Pakistan. The town of Rahim Yar Khan was the site chosen for setting up a vegetable oil factory in 1958 and that is where the first UPL manufacturing facility developed.

Now a force to be reckoned with
Today, Unilever Pakistan is a force to reckon with. Its contribution to Pakistan's economic development cannot be overestimated. Now operating six factories at different locations around the country, the company contributes a significant proportion of the country's taxes. It employs a large number of local managers and workers. It provides a pool of well-trained and highly motivated manpower to other segments and has introduced new and innovative technologies into the country.

The UPL Head Office was shifted to Karachi from the Rahim Yar Khan site in the mid 60's. By this time the once dusty and sleepy village was the hub of activities for UPL. A residential estate situated near the factory is the home of UPL employees at Rahim Yar Khan.

Introduction of Rahim Yar Khan Factory
Rahim Yar Khan Factory is situated on Shahbaz Pur road Rahim Yar Khan (Punjab). It is the largest production unit of Unilever in Pakistan. At the time of establishment of Unilever Pakistan the head office of the company was in Rahim Yar Khan. Subsequently in 1966 the head office was shifted to Karachi. Production of ghee was started in R.F but now ghee is not produced in R.F due to certain reasons.

DEPARTMENTS IN R.F:The company has employed approximately 525 persons including management & non-management staff. Following departments are in operation in R.F Main Office. ♦ Buying department ♦ Human Resource Department ♦ Planning department ♦ Costing department ♦ Finance department ♦ Payment department ♦ Cash office ♦ Wages & salaries department ♦ Business Support Department ♦ Administration department

Unilever Pakistan Ltd is a wholly owned subsidiary of Unilever Overseas Holding, UK,
Unilever PLC (a company incorporated in the United Kingdom)

The company is incorporated in Pakistan and listed on the Karachi, Lahore and Islamabad stock exchanges. It manufactures and markets foods, beverages, detergents and personal products.

AUDIT COMMITTEE
Mr. Fatehali W. Vellani Chairman Mr. Zaffar A. Khan Member Mr. Omar H. Karim Member Mr. Ayub Vohra Head of Internal Audit & Secretary

AUDITORS
A.F. Ferguson & Co. State Life Building No. 1-C I.I. Chundrigar Road Karachi.

REGISTERED OFFICE
Avari Plaza Fatima Jinnah Road Karachi - 75530 Telephones: +92-21-5660062-9 Facsimile: +92-21-5681705

SHARE REGISTRATION OFFICE
C/o. Ferguson Associates (Pvt.) Ltd. State Life Building No. 1-A I.I. Chundrigar Road Karachi.

WEBSITE ADDRESS
www.unileverpakistan.com.pk

COMPANY BANKS
Abn –Amro bank Karachi Grindllays bank ltd. Karachi Grindllays bank ltd. Lahore Muslim commercial bank Rahim Yar Khan National bank of Pakistan ltd. Rahim Yar Khan

PRODUCTION UNITS OF UNILEVER IN PAKISTAN
UNITS HPC Factory Tea Factory Tea Factory Ice cream Factory Unilever Pakistan Best foods Limited LOCATION Rahim Yar Khan (RF) Karachi (KTF) Khanewal (KHWTF) Lahore (ICF) Faisalabad (UPFL)

BRANCH OFFICES
Ice cream metropole Lahore Consumer interaction center Karachi (Lever Raabta) Branch office shafic court Karachi Branch office Islamabad Branch office Lahore Branch office Multan

Organizational Chart Of HPC Factory Rahim Yar Khan

HPC Head Shahab Muhammad Ali

Fundamentals of Organization
We often begin to describe a firms Structure by looking at its Organization Chart.

Organizational Chart:The reporting structure and division of labor in an organization is called Organizational Chart. The above chart provides a picture of reporting structure (who reports to whom) and the various activities that are carried out by different individuals. Note that organizational chart give various kinds of information that are conveyed in a very simple way: 1. The boxes represent different work. 2. The titles in the boxes show the work perform by each unit. 3. Reporting and authority relation ship are indicated by solid lines showing superior-subordinate connections.

4. Levels of management are indicated by horizontal layers in the chart. All the persons or units that are of the same ranks and report to same person are on one level. 5. The solid lines are called functional lines and they report to works manager and the doted lines are called operational lines and they report to their own head. This would be someone in an organization. There are two fundamental concepts around which organization is structured is differentiation and integration.

Differentiation:Differentiation is created through division of labor and job specialization. Division of labor means that the work of the organization is subdivided into smaller task. Various individuals and units through out the organization perform different tasks. e.g. Repair and maintenance department further divided into sub department which are engineering store, area engineer personal wash, area engineer personal product, engg. Planning, projects. They all have assigned different task under the repair and maintenance department. Specialization is a process in which different individuals and units perform different tasks. e.g. The Buying department of unilever has a specific task which purchasing inventory or raw material.

Integration:The degree to which differentiated work units work together and coordinate their efforts. As Unilever differentiate their structures, managers must simultaneously consider the issues of integration. All the specialized in Unilever cannot be performed completely independently. Because the Unilever is a larger organization and it has different units, some degree of communication and cooperation must exist among them. Integration and its related concept, coordination, refer to the procedure that link the various part of Unilever to achieve the Unilever overall mission. e.g. the finance department, buying department and marketing department link together to achieve overall mission. First we will discuss vertical differentiation within Unilever organizational structure. This include issues pertaining to authority within an organization, the board of directors, the chief executive officer and hierarchical levels, as well as issues pertaining to delegation and decentralization.

Vertical Structure:Vertical structure is also called Reporting structure which tells about the hierarchy of an organization an chain of command.

Top Level Middle Level Lower Level

This is Hierarchical Levels

Unilever top level managers are:
Chairman UPl (Ehsan Maalik) HPC head(Shahab Mohammad Ali) Service Eng( Fayyaz H. shah) R&ME (Talha Kidwai) HPC Controller(Ismail Tahir) Supply Chain Director(M.Qayser Alam) WM-RF(Shahid Rafique) Operation Mgr PP (Irfan bhatti) HR Manager (Mohsin Nishat)

Middle Level managers:
Soap making (Hassan Abbas) Soap Finishing (M.Zaheer) AM Distribution (Sohail A.Malik) AM Stores (M. Nazir) Planners PW & PP (Ashfaq Ahmad, Abdullah Aslam) TPM (Co-ordinator) Environmental Co-ordinator (Abdullah Javed) Safety Co-ordinator (Sohail Zahid) FMO (Dr. Hafeez) Q.A Lab. (M. Idrees)

Lower Level:
Services & Utilities PP Process PW- Finishing Area Engineer PW Engg. Planning Unilever Estate Human Resource Dept. Factory Medical Center Account payableVource/Costing Quality Assurance PP Finishing PW-Soap Making Engineering Store Area Engineer PP Projects Admin & Security Estate First Aid Center Business service Dept. Packaging & Raw Mat. Buying

Authority in Unilever:Authority means the legitimate right to make decision and to tell other people what to do. In Unilever authority resides in positions rather than in people. Thus the job of CEO of particular division has the authority over that division, regardless of how many people come and go in that position and who currently holds it . The Board of Directors:In Unilever owner are the stockholders. Stockholders elect the BOD to over see the organization. Board perform at least three major set of duties, 1. Selecting, Assessing, Rewarding and perhaps replacing the CEO 2. Determining the firms strategic direction and reviewing financial performance 3. Assuring ethical, Socially responsible and legal conduct.

The Unilever BOD are Mr. Ehsan A. Malik Chairman & Chief Executive Mr. M. Qaysar Alam Executive Director Mr. Fatehali W. Vellani Non-Executive Director Mr. Zaffar A. Khan Non-Executive Director Mr. Syed Hashim Raza Zaidi Non-Executive Director

Mr. Peter I. Harvey CFO & Executive Director Mr. Syed Babar Ali Non-Executive Director Mr. Omar H. Karim Non-Executive Director Mr. Zarrar Haider Non-Executive Director Mr. Amar Naseer Company Secretary

Executive directors

Patrick Cescau - Group Chief Executive

Kees van der Graaf - President Europe

Non-Executive directors

Michael Treschow

Professor Geneviève Berger

The Rt. Hon. The Lord Brittan of Spennithorne, QC

Wim Dik

Mr Charles E Golden

N. R. Narayana Murthy

Hixonia Nyasulu

The Lord Simon of Highbury, CBE

Unilever executive (UEX)

Manvinder Singh (Vindi) Banga - President Foods

Harish Manwani - President, Asia Africa

Sandy Ogg - Chief HR Officer

Michael B. Polk - President, Americas

Chief Executive Officer:The authority officially vested in the board of directors is assigned to CEO, who occupies the top of the organizational pyramid. CEO is personally accountable to the board and to the owners for the organization performance.

Unilever Span of Control
A span of control is the number of people who report to one manager in a hierarchy. The more people under the control of one manager - the wider the span of control. Less means a narrower span of control. Unilever has the Narrow span of control but now they are moving to wide span of control by reducing their layers. It is tall organization that has many reporting level. In this the communication is difficult for employees.

Decentralized or Centralized organization?
Decentralized mean an organization in which lower level managers make important decisions. Centralized mean an organization in which high level executives make most decisions and pass them down to lower levels for implementation. Unilever is a centralized organization because most of its decision makes by top level executives but lower level can also gives their views. Secondly we will discuss the horizontal Structure including issues of decartelization that create functional, divisional, and matrix organization

Horizontal Structure
It is also called division of labor. As the task of Unilever become increasingly complex, the organization in inevitably must be sub divided that is, departmentalized-into smaller unit’s

organization departments. One of the first places this can be scene is in the distinction between line and staff departments. Line departments are those units that deal directly with the organization primary good organization services, they make things, sell things, organization provide customers service. In Unilever buying department, Quality assurance, Packaging & Raw material, Business service department, Admin & security, Factory medical center, Estate First aid center, Human resource department, Unilever estate, Area Eng. Personal product (Shampoo, Lotions), Area Eng. Personal wash(Soap), PW finishing, PP finishing, PW soap finishing, and service and Utilities department are the line department. Staff department means units that support line department. e.g. Services engineer support the service & utilities department.

Buying Department

The word “buying” means purchase of any thing or any merchandise or item. This function is performed by buying department in any organization. Buying or purchase is one of the major functions of any company of organization. Without it no one organization can run successfully in the field of business. So we may say that buying is the soul of company. Without buying all departments of the company will be failed.

Planning Department
Planning is intellectually demanding process. It requires that we consciously determine courses of action and based our decisions on purpose knowledge and considered estimates. Before planning we set our goals and reach on a certain decision with the help of knowledge and estimates.

Finance Department
    

Following functions are performed by Financial Accounts Department of RF: Maintenance of fixed assets records including related reports. Calculation of depreciation, Gross Book value (GBV) and Net Book Value (NBV) Capitalization and other schedules on yearly basis Allocation of manpower cost and depreciation to different location on monthly basis Maintenance of medical expenses, Traveling expenses vouchers and their record up to management staff

Cost Department
This department provides very useful services to the company and is responsible for costing of the products. This department does the yield calculations of the followings: • Soapery fatty acids • Crude glycerin • Refined glycerin • Edibles For the calculation of yield, these elements are taken into consideration: • • • • Storage loss/gain Bleaching loss Packing loss/gain Un-accounted loss

Payment Department

Different department of UPL R.F are working under Commercial Department. Payment Department is one of them. Payment Department is also called APV (Accounts Payable Vouchers). The purpose of this department is to make the arrangements for the payments of the factory liabilities. APV section is further classified into two sections

• APV 1 • APV 2
APV1
APV 1 is classified into further three sections: • • • Packing and materials payment section Local payment section Chemicals and engineering stores payment section

APV 2:
APV 2 makes a payment of wages and salaries for the workers of UPL Rahim Yar Khan Factory.

Human Resource Department
The assets of the organization like machinery. According to the Personnel Department of UPL R.F., there are things which are common between workers and machinery of the organization. For examples:     Machinery requires repair where as workers required training. Both are used for production purposes. Both require improvement. Both become inefficient if proper attention is not given.

Administration Department

Unilever Pakistan Limited R.F. has also an administration department that is controlled by the personal department. Following functions are performed by the Administration Department: • • • Arrangements for providing for providing transport facility to management staff. Arrangements for the journey of management & non-management staff. Arrangements of stationery and printing.

Distribution Department

Now a day’s business is extended to a great extent. Markets are widening briskly, so there is a great need to meet the requirements of this large market successfully. There should be such a system of distribution that the supply of products to the markets should be according to the needs; this system should be “sales loss proof”. UPL has a system, which gives maximum results. Supply of product is monitored in such a way that there are minimum chances of shortage in supply.

Quality Control Department
Quality is the use of techniques and activities to achieve, sustain and improve quality. It involves integrating the following related techniques and activities: 1. 2. 3. 4. 5. 6. Specification of what are needed. Design of the product or service to meet the specifications. Production or installation to meet the full intent of the specification. Inspection to determine conformance to the specification. Review of usage to provide information for the revision of specification if needed. Utilization of these activities provides the customer with the best product or service at lowest cost. The aim should be continuous quality improvement.

Material Store Department
Material Store is place where raw material is store. There are different function of Material Store and stock maintenance. It is consist of two Hangers and one Perfume and Color Store. Total area of each hanger is 256 x 107feet.

The Divisional Organization
Departmentalization that groups units around products, customer’s organization geographic regions. Unilever has groups its units around product, customer, and geographic regions.

Product Division:1. 2. 3. 4. How Unilever follow the product division? Because in product division Information needs are managed more easily. People have a full-time commitment to a particular product line. Task responsibilities are clear. People receive broader training.

Customer & Geographic Division:Unilever made customer based product & they also make geographic division. They make customer division. Unilever made soap and now they also make toilet soap. By geographic division Unilever is in south asia, Europe, the fast east, west Europe, south America.

The Functional Organization:It means that departmentalization which is the basis by which the jobs are grouped together. In this case there is a unity of command which means’s that all the subordinate would report to one head. In Unilever the job of production department, HRM dept., and marketing dept., are grouped together.

Functional Organization

Finance dept.

Production dept.

HRM dept.

Marketing dept.

The Matrix Organization
A matrix organization is a hybrid form of organization in which functional and divisional form overlap. Unilever is matrix organization and composed of dual reporting relationship in which some manager’s report to two superiors-a functional manager and a divisional manager. A Matrix Organization is an organization structure that is matrix-shaped. It has 2 axes, rather than a pyramid-shape. The vertical hierarchy is overlaid by some form of lateral authority, influence, or communication and there are dual lines of authority, responsibility, and accountability that violate the traditional "one-boss" or "Unity of Command" (Fayol) principle of management.
CHAIRMAN UPL Supply Chain Director WORKS MANAGER-RF

QA Manager
Planners PW & PP

Manufacturi ng Manager
Environmental Co-coordinator

HR Manager
Safety Co-coordinator

Factory Engineer
AM Distributor

HPC Controller
AM Raw Material Stores

Medical Officer

Op Manager

Quality Assurance

Services & Utilities

Admin. & Security

Maintenance - II

Factory Medical Center

Maintenance - I

Soap Finishing

Estate First Aid Center

Unilever Estate

Engg. Planning

Drawing Office

Soap Making

APV / Costing

Organizational Integration

packaging & Raw Mat.

PP Finishing

Engg. Stores

PP Process

Projects

Buying

HRD

BSD

In this there are several coordination methods in Unilever which are given below

Coordination by Standardization:Establishing common rules and procedures that apply uniformly to every one. Standardization means actions and integrates various units by regulating what to do. It consists of standard operating procedure and formalization. In Unilever every person knows what he do and apply standard operating procedure.

Coordination by plan:Interdependent units are required to meet deadlines and objectives that contribute to a common goal. e.g. Finance, Buying in marketing department are interdependent units and they have dead lines and objectives that contribute to a common goals. In Unilever the Coordination between interdependent units are by plan.

Coordination by Mutual Adjustment:Units interact with one another to make a accommodations in order to achieve flexible coordination. There is a coordination by mutual adjustment between different department in Unilever.

Coordination & Communication:Unilever has a strong communication between its different departments and they coordinate through it. They have to ability to handle more information

CONCLUSION

T

he Islamia University of Bahawalpur has provided us with the

opportunity to visit Unilever Pakistan Ltd, which is one of the largest multi domestic and multinational company working in Pakistan. we feel proud to represent our department in this MNC well-reputed in Pakistan.

we got a lot of experience from Unilever Pakistan Ltd Rahim Yar khan factory. During our visit we came to know that how different activities take place in a work environment, what are there procedures and processes and how to interact with people at work. Unilever Pakistan Ltd is on the way of progress. It has been earning a healthy profit with a strong financial position and goodwill in the market. The management is professionally qualified and experienced and well competent. Unilever produces high quality consumer goods in Pakistan. The demand of the Unilever‘s products is increasing with the passage of time.

VISION OF UNILEVER

Touching Hearts Changing Lives

MISSION STATEMENT

Our mission is to add Vitality to life. We meet everyday needs for nutrition, hygiene and personal care with brands that help people

Look good, feel good And get more out of life.

Perfection is not attainable, But if we chase perfection, We can catch excellence (Vince Lambarto)

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