Company history

Company history
• Topics for discussion:
• What type of industry or company would
you like to work for?
• Describe the ideal type of company you
would like to work for.
• Would you like to work for a renowned or a
start up company?
• Would you base your choice on the
company’s history?
 UNIT 1

Company history
Unilever, one of the world’s leading FMCG companies, is known to be amongst the
world’s most admired employers and has a rich and colourful history spanning more than 80 years.
Unilever was formed in 1930 when the Dutch margarine company Margarine Unie merged with
British soap maker Lever Brothers. Both 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. They trade separately but have one board of directors. Unilever’s corporate centres are
London and Rotterdam.
 Vocabulary from the text – 1st paragraph
Unilever, one of the world’s leading FMCG companies, is known to be amongst the
world’s most admired employers and has a rich and colourful history spanning more than
80 years. Unilever was formed in 1930 when the Dutch margarine company Margarine
Unie merged with British soap maker Lever Brothers. Both 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.

FMCG – fast-moving consumer goods

colourful – interesting and exciting
to span - to exist or continue for a particular length of time
to merge with – to combine or join together; merger (n.)
raw material -any material in its natural condition before it
has been processed for use
- raw material costs/prices
large-scale – extensive
- large-scale production/job cuts/layoffs/redundancies
distribution channels -a chain of businesses or intermediaries through which the final
buyer purchases a good or service
- direct/indirect distribution channels
 Vocabulary from the text – 2nd and 3rd paragraphs
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.
to found – to set up, to establish
He used the money to found an internet business.
We want to celebrate the 50th anniversary of the founding of the company.
He was a founding member/one of the founders of this company.
to diversify – to start to produce or sell a range of different types of products or services
Farmers are increasingly diversifying into other activities to supplement their incomes.
The launch of new products and diversification into new business areas continue to boost sales.
to acquire – to buy or take control of a company or part of a company, often by buying
shares in it
- acquisition (n.)
to launch – to introduce, to initiate something
brand/product launch
 Vocabulary from the text – 4th paragraph
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. They trade separately but have one board of
directors. Unilever’s corporate centres are London and Rotterdam.
parent company - a company that has a controlling interest in another company or
companies
to operate – to do business
We operate in 50 countries around the world.
to participate in – to take part in something
to prosper – to become successful, especially financially
We aim to create a climate in which all small businesses can prosper.
-prosperity (n.)
-economic/future prosperity
separately - independently, not together
board of directors - the group of people who shareholders choose to manage a
company or organization
Approval by the board of directors is required to implement the new strategy.
to serve/sit on the board of directors
the chair/chairman of the board of directors
 Vocabulary practice p. 2
• Find words or expressions in the text that mean the following:

• 1. items such as washing machines, china, cutlery, etc. used

HOUSEHOLD PRODUCTS
regularly in a house _______________________
• 2. persons who own shares in a company _____________________
SHAREHOLDERS
• 3. very intensive _______________________
LARGE-SCALE
• 4. ways of getting goods from the manufacturer to the consumer
DISTRIBUTION CHANNELS
_______________________
• 5. produce or sell a wider range of products ___________________
DIVERSIFY
• 6. willing or able to take risks in business _____________________
ENTREPRENEURIAL
• 7. combining of companies, usually to share costs, increase
efficiency and avoid competition _______________________
MERGER
• 8. headquarters of a company _______________________
CORPORATE CENTRES
• 9. persons who start a company _______________________
FOUNDERS
 Vocabulary practice p. 2
• Find words or expressions in the text that mean the following:

• 10. leading company of a group holding more than half of the

shares of the other companies _______________________
PARENT COMPANY
• 11. winning or obtaining business against one’s rivals
_______________________
ACQUIRING
• 12. items used in everyday life, e.g. food, clothes, drinks, etc.
_______________________
CONSUMER GOODS
• 13. a business activity in which there may be some risk
_______________________
VENTURE
• 14. products that are sold quickly and at relatively low cost, having a
short shelf life (soft drinks, grocery items, etc.)
_______________________
FAST MOVING CONSUMER GOODS (FMCG)
• 15. to take part _______________________
TO PARTICIPATE
• 16. to set going, to initiate _______________________
TO LAUNCH
 How do you describe the history of a
company?
• use the Past Simple to say
when/where/how/by whom the company
was founded
 GAP Inc. was founded in 1969 by Donald
G. Fisher.
 Unilever was formed in 1930 by merging
with British soapmaker Lever Brothers.
Company combinations
 How do you describe the history of a
company?
• use the Present Simple to say what the
company produces, how many employees it has,
what its annual turnover is, etc.

 Unilever is an Anglo-Dutch company which

produces food products and detergents. It
operates in over 70 countries and employs
about 300,000 people. It has a subsidiary, UAC
International, which specialises in paper and
plastics.
 How do you describe the history of a
company?
• use the Present Perfect to say what has
happened since the company was
founded
 Since 1968, the company has opened ten
subsidiaries in various parts of the world.
 Since 1930, the two companies have
operated as one.
• or Present Perfect Continuous
 We have been producing plastics for
over 20 years.
 How do you describe the history of a
company?

• use the Present Continuous to say what

the company is planning at the moment

 We are opening a subsidiary in Paris.

 The company is planning expansion into
the automotive sector.
 How do you describe the history of a
company?
• use the Future Simple to predict the
company's performance
 According to our latest forecasts profits
will increase by about 15% next year.
 Next year there will be a new plant in the
UK and a plant in Boston, Massachusetts.
Correct forms of the verbs ex. A, p. 3

•P&S (BE) ________________ IS a chain of

department stores with branches in many cities in
SELLS
the UK. Each store (SELL) ________________ a
variety of goods from textiles to kitchen utensils to
furniture. P&S (EMPLOY) ________________ EMPLOYS over
3,000 people and (HAVE) ________________ a
turnover HAS
of over £ 75m. The firm (GROW)
________________ rapidly and at present
IS GROWING

(RECRUIT) ________________ more highly qualified

IS RECRUITING
personnel to run its new branch which (OPEN)
IS OPENING
________________ in Maidstone, Kent next month.
 Correct forms of the verbs ex. B, p. 4
• Montegna Ltd. (FOUND) _________________
WAS FOUNDED by Leonardo
Montegna in 1952. Until 1955 the company (HAVE)
_________________
HAD only a small factory in Verona. In 1956
a new plant (OPEN) _________________
WAS OPENED in Milan and the
company (BEGIN) _________________
BEGAN manufacturing
valves. In 1975 the Head Office (MOVE)
_________________
WAS MOVED to Milan. In the next ten years sales
offices (ESTABLISH) _________________
WERE ESTABLISHED in 48 different
countries. Now the company (HAVE) _________________
HAS a
turnover of $450m and (PRODUCE) _________________
PRODUCES a
range of over 400 products. The company (PLAN)
_________________
IS PLANNING expansion into the automotive sector.
Next year there (BE) _________________
WILL BE a new plant in
the UK and a plant in Boston, Massachusetts.
 Correct forms of the verbs ex. C, p. 4
• Dabs.com (BE) ________________
IS a large long-established
British traditional mail order computer dealer, rapidly (MOVE)
________________
MOVING with the times into the world of e-tailing,
i.e. selling computer products from our Web site. Our sales
(BE) ________________
ARE about £100 million ($150m) per
annum, which (PUT) ________________
PUTS us in the Top 20 in
the UK (of 12,000 dealers). We (BE) ________________
ARE 100%
British-owned and our owner David Atherton (BE)
________________
IS also Managing Director (Chairman and
CEO). In the last fourteen years, we (DEAL WITH)
________________
HAVE DEALT WITH over 500,000 customers, and (SELL)
________________
HAVE SOLD over two million items (TOTAL)
________________
TOTALLING over three hundred million pounds.
 Correct forms of the verbs ex. C, p. 4
• We (EMPLOY) ________________
EMPLOY nearly 200 staff, a large
proportion of which (BE) ________________
IS in customer
service. We (HANDLE) ________________
HANDLE over 300,000
unique visitors to our Web site each month and we (TAKE)
________________
TAKE 2,000 sales calls and 1,500 administration
and service calls every day in our call centre. We (BE)
________________
ARE a member of trade body, the Personal
Computer Association, the Confederation of British Industry,
the local Chamber of Commerce and we (HOLD)
________________
HOLD manufacturer authorisations for virtually
every product we (SELL) ________________.
SELL
 Correct forms of the verbs ex. D, p. 5

•Pullock Ltd. (BE) ________________WAS originally a family

company. It (BE) ________________ WAS started by two brothers
who (WORK) ________________ WERE WORKING
as engineers. It (HAVE)
________________ HAD only one product at the beginning. Now,
the company (OPERATE) ________________ in several
countries.OPERATES
It (EXPAND) ________________ rapidly. It (BE)
IS EXPANDING
________________ a market leader for severalHAS BEENyears. It
(PRODUCE) ________________ plastics since 1958. They
HAS BEEN
(MOVE) PRODUCING
________________ to a new factory next month.
ARE MOVING ________________ to grow. They (LAUNCH)
They (CONTINUE)
________________ a sales CONTINUE
campaign in Europe.
ARE LAUNCHING
 Terminology p. 9
• If a Company A owns shares • shares
or equity in Company B, A has • equity
or holds a stake, holding or • holding
shareholding in B. • shareholding
• If A owns less than half the • shareholder
shares in B, it has a minority
stake in B.
• stake
• If A owns more than half the
shares in B, it has a majority  hold/have a stake
stake or controlling stake in  majority stake
B.  controlling stake
• If you have shares in a  minority stake
company you are a
shareholder. • shareholder
 Shareholding terminology p. 9-10
• Fill in the blanks with the the following words or expressions:

equity shareholder to hold a stake minority stake

majority stake controlling stake

• 1. One aircraft industry analyst said, “If GPA is to survive, it must

raise more ________________
equity from its existing
________________”.
shareholders
• 2. The Spanish banks have the sorts of links with the corporate
world that are typical of the German banks, with the banks
holding
________________ large ________________
stakes in almost all the
major Spanish companies. 
• 3. The position of the Fayed brothers, proprietors of Harrods, who
held
have ________________ stake
a 10% ________________ in Sears for
years, is becoming very interesting.
minority stake
• 4. Nokia Siemens Networks is in talks to sell a ________________
in the company to private equity firms, according to reports.
 Shareholding terminology p. 9-10
• Fill in the blanks with the the following words or expressions:

equity shareholder to hold a stake minority stake

majority stake controlling stake

• 5. The very rich Mark Rich is to retire from the company he founded
15 years ago and will reduce his ________________
controlling stake to 15% within
five years. 

• 6. McPherson always takes a ________________

majority stake in the businesses
he invests in and he likes a hands-on role in the management. 

• 7. Eurocom has been attempting to raise its ________________

minority stake in
WCRS’s ad business to a majority.