UNILEVER Harvard Case Solution & Analysis

UNILEVER Case  Solution

Introduction:

The Unilever Company is a combined British-Dutch multinational company, whichis headquartered in Rotterdam and London. It is a parent organization of two segregate companies; the Unilever N.V. of Netherlands and the Unilever Plc of London. The primary product offerings of the company include personal care products, food, beverages and cleaning agents. The business owns and runs roughly above 400 brands among its product portfolio however; the primary focus of the operations of the business is on top 15 products of the company which account for more than $1 billion each.(Unilever, 2015)

The business has an established presence in more than 180 countries all over the world and maintains numerous subsidiaries in these regions that operate as separate divisions of the organization but are under the control of the group. The company is well positioned financially as it is among the top three consumer goods manufacturing companies in the world in terms of revenues and operating margins that it generates from all over the world. The business structure of the company is divided among four division`s likewise food, refreshment, home care and personal care.

Company’s Background:

Unilever was founded in the early nineteen thirties as a result of the merger of two companies; Lever Brothers and Margarine Unie. The merger of both the companies was due to the increasing use of palm oil in their products. It was in the second half of the 20th century that the company expanded itself in the markets all over the world while also diversifying the product offerings of the company. The expansion strategy of the business was also assisted by the acquisition strategy of the business as the management of the company has historically acquired various companies and brands including the Lipton, Brooke Bond and many more.(Unilever, 2015)

The management of the company has maintained a corporate social responsibility friendly strategy of the business. In addition to this,the historical cancellation of contract with the Asia Pulp & Paper is a reflection of the importance that the management of the business gives on the issue of environment safety and corporate social responsibility of the company.

Analysis:

Vision of the Company:

The vision of the management of the company is to make the business a global leader in the goods consumption industry in terms of revenues, market share and the operating margins that it generates while operating all over the world. The other integral part of the vision of the management of the business is to maximize the green energy consumption while reducing the carbon footprints to least possible standards.(Unilever, 2015)

  Porter Five Forces:

Threat of New Entrants:

The business is a well-established entity with global presence all over the world and it is also a market leader in almost all of the markets where the business operates. Although the goods consumption industry is highly segregated all over the world in terms of private labels and independent stores and more independent entities are starting up in the attractive markets all over the world however,the entrance of any company on such a large scale is highly unlikely as it requires overwhelming amounts of resources to do so and this is something which takes time and not happens overnight. Therefore, the threat of new entrants in the industry is quite low..................

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