Unilever Pakistan

Limited (UPL):
Legal structure and governance
Unilever was formed in 1930 from two
companies: Margarine Unie and Lever
Brothers.

● It was a full business

merger, operating as a
single business entity.
Margarine Unie ● Two separate legal parent
(Netherlands) companies have been
maintained:
● Unilever NV (Netherlands)
and Unilever PLC (UK).
● This works through an
equalisation agreement and
other contracts between the
Lever Brothers two companies.
(UK)
A global management team

Doug Keith Weed

Baillie
Chief
Presiden Marketing
t and
Western Communicati
Europe ons Officer

Michael Polk Pier Luigi

Sigismond
President i
Global
Foods, Chief
Home & Supply
Personal Chain
Care Officer

Genevièv Dave Lewis

e Berger
President
Chief Paul Polman
Americas
R&D
Officer Chief
Executive
Officer Harish
Jean- Manwani
Marc Sandy
Huët President
Asia,
Ogg
Chief Africa Chief
Financial and HR
Officer Central &
Eastern
Officer
Europe
About Unilever:

 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.
 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.
Unilever has a long list of
brands such as:

 Surf.
 Vim.
 Rin.
 Lifebuoy.
 Sunlight.
 Lux.
 Rexona.
 Sun silk.
 Close-Up.
Contd..

 Blue-Band.
 Dalda.
 Planta.
 Lipton’s Yellow
Label.
 Brook Bond’s
Supreme.
 Kenya Mixture etc.
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 20
employees nationalities
at the end among our
of the year top tier
managers

€89 million More than

invested in 170
community countries in
programm which our
es products are
worldwide sold

€891 million 264

invested in R&D manufacturin
worldwide g sites
worldwide
Unilever Strategy And Structure

• 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.
Operational achievements

 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.
 Unilever financial performance

* Restructuring, disposals and one-off items

** Continuing operations
Unilever’s growth priorities

Our ambition is to win share and grow

volume in every category and country.

Winning with brands and Winning with people

innovation
● Deliver larger products, design,
branding and marketing.
● Bigger, better, faster innovations.
● Appeal to more consumers across
needs and price points.
● Organisation and varied talent
pipeline ready to match our growth
desires.
● Performance culture which
compliments our values.
● Influence our operating framework
for modest advantage.

Winning in the marketplace Winning through continuous

● Lead market development.
● Win with winning customers.
● Be an execution powerhouse.
improvement
● Spare, approachable and consumer-
led value chain.
● Drive return on brand support.
● Swift, cost-competitive organisation.
Strong category positions

Unilever’s portfolio
Leading category of categories
positions

Homecare

Savoury,
Dressings
& Spreads
Personal Care

Ice Cream &

Beverages
Big global brands

Top 25 brands =
almost 75% of Unilever’s
sales*.
Raw materials and ingredients

€15.3 billion spent on raw materials and

packaging from over 10,000 suppliers
in 2009

Our share of world volume:

Preliminary
Management Functions:

 Planning
 Organizing
 Leading
 Controlling
PLANNING:

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
ORGANIZING:

• 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.
LEADING:

• 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.
CONTROLLING:

• 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.
Graph Of Skin Care & Hair Care Market:
Market Share Of Grocery:
Management Skills:

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
Technical Skill:

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.
Human Skills:

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.
Conceptual 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.
Swot Analysis Of Unilever:

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.
 Strengths:

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.
 Weaknesses:

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.
Opportunitis:

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.
Threats:
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.
Conclusion:

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.