PREMIER UNIVERSITY, CHITTAGONG
Assignment on
Unilever (CASE STUDY)
Submitted to
Ms. Ela Saha
Lecture (management)
Faculty of Business Studies
Premier University
Submitted by
Name Id Number
Md Arif Hossain 0222210004083029
Sidratul Montaha Naomie 0222210004083030
Kazi Tarjian Islam 0222210004083031
Tahmina Akter 0222210004083032
Submission Date: 25 November 2022
Unilever (Case study)
Unilever is a British-Dutch company that operates in the market of consumer goods and sells
its products in around 190 countries. Another remarkable fact is that they own more than 400
brands, what means an important diversification in both risk and the products they sell,
among which there is food, personal care products and cleaning agents. In fact, twelve of
these brands have sales of more than a billion euros. The importance of this multinational is
reflected too in the fact 2.5 billion people use Unilever products every day, being part of
their daily life. They also are responsible for the employment of 161,000 people in the different
countries they operate.
Finally, they believe in a sustainable business plan in which they reduce the environmental
footprint and increase their positive social impact at the time they keep growing
Given Below the answer of case study
Question 1 : Why have consumer product companies headquatered in Europe historically
used the multidomestic strategy? In your view , is this an effective choice of international
strategy for these firms? Why or why not?
Companies that have headquartered in Europe historically have used the multidomestic
strategy because it requires little coordination between different country markets, meaning
that integrating mechanisms among divisions in the worldwide geographic area structure are
not needed, hence formalization is low. This is an effective choice of international strategy
because it allows companies to expand its product offerings and geographic locations.
In my view, yes this is an effective choice of international strategy for these firms. I feel this way
mainly because since this enables for companies and organizations to broaden their product
contributions and geographic areas, it is very compelling choice for an international strategy.
Question 2: To implement its ‘Sustainable business model’ what types of strategies is
Unilever considering for use and why?
To implement its sustainable business model, Unilever is using the decentralization and
divisional structure as well as the centralization of certain functions in this case. A transnational
strategy is a mixture of global strategy and the multidomestic strategy. The transnational
strategy allows for a firm to prioritize local consumer desire and choices and give priority to
sustainable business practices. The responsibility of the global headquarters will still be the
decisions and guidelines for major sourcing. That is so that we can make sure all purchasing and
sourcing is performed in a sustainable way that supports the firms goals. This strategy will pave
the way for an increase in efficiency since there is no need for major executive exercises
needed to make particular decisions.
Question 3: What organizational structure will Unilever need to use to reach its sustainability
objectives?
They have set out an ambitious sustainability agenda to tackle the issues that our customers
and stakeholders care deeply about – such as climate change, plastic pollution and inequality.
They harnessing their bands, their people and their brands, their to create lasting positive
impact on the world and their business.
In order for Unilever to reach its sustainability objectives, they will have to use the Global
Matrix Design structure so they can meet the demands of decentralization here. This type of
design structure will combine unity and diversity by integrating business structure and strategy.
Managers will stay adaptable to make decisions for near by organizations and act in accordance
with values that are imposed by global corporate policy.
Question 4: What issues about organizational structure surface as a result of Unilever’s
proposed strategies and objectives regarding sustainability?
They want to transform the systems that hold individuals back by advocation new policies, laws
and social norms that will promote health, wellbeing and greater inclusion for all members of
society. Their aim is to derive positive change through their brands.
As a result of Unilever’s proposed strategies and objectives regarding sustainability, one of the
issues about organizational structure that surfaced . The emphasis on sustainability and global
matrix structured resulted in short term earnings. This also lead to a lot of executive exercise in
aligning the goal of the worldwide subsidiaries and di-vision with organizational goals of
sustainable business. The alignment leads to increased work promoted by the company to form
cooperative strategies with profit as well as not for profit organizations. This leads to the
decline in the earning and created problems.
Solution:
To cope up with Unilever upper issue. Unilever should emphasis an sustainability and global
matrix structured resulted in long term earning. Unilever should provide guidance reports and
suggests that this has allowed it to focus shareholders on its longer term goals. Most of the non
government or nonprofit organization now work with Unilever so Unilever lost their product
uniqueness as a result most of consumer are lost their interest in Unilever product.
Unilever should use their own strategy for running their business not depend on other
organization strategy. Because every core value are different.
Conclusion:
Unilever pursued that marketing strategy because consumers in emerging markets are often
highly focused on price. It can give low-cost local competitors the edge unless a company can
find ways to attract buyers with bargain prices as well as better products. Unilever believes
profitable growth should also be responsible for growth. Unilever’s successful brand
innovation program is supported with a high level of marketing and advertising activities
including most media. As there are many opportunities in the foreign markets but the
tendency of threats is also same as opportunities. The powerful Research and
Development (R&D) wing, diversified and differentiated product line and market analysis
are all important factors that make a company enjoy its potential and good market share in the
foreign market. To maintain a more successful brand value there must be excellent
coordination and integration between the brand managers in the marketing department.
