Professional Documents
Culture Documents
HRTSH
HRTSH
19 January, 2014
**** *****
Lecturer, Course Instructor
Management Fundamental
Department of Banking & Insurance
Faculty of Business Studies
University of Dhaka, Bangladesh
Dear Sir,
It gives us great pleasure to submit the report on “Unilever”.
It was a great opportunity for us to prepare the report under your instruction, which really
was a great experience for us. In order to make our report most perfect we have collected
various information from our text books, websites and various newspapers.
We have tried our level best effort to prepare this assignment. Any lacking or fault may arise
as our unintentional mistakes. We will wholeheartedly any clarification and suggestion about
any view and conception disseminated through this Report.
Sincerely,
……………………………....................
ii
ACKNOWLEDGEMENT
One of the most dulcet parts of writing this report is the opportunity to thanks those who
have contributed to it. Unfortunately, in any establishment, the list of expression of thanks-
no matter how all-embracing- is always imperfect And insufficient, this acknowledgement is
alike other is not an Immunity.
At first we want to thank Almighty Allah who gave us energy and forbearance and also
knowledge for making that kind of report. Secondly we want to thank our course instructor
Mr. Asif Nawaz without whom we must be unable to make it.
We are very happy to participate in this Report. A special thanks to Mr. Reza Shahbaz Hadi,
an ex- formal employee of UBL for his help and information this report would be far from
correction.
Finally we want to thank our friends and course mates who helped us for gaining information
and complete the report successfully.
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Executive Summary
This report contains both qualitative and quantitative analysis about Unilever. It is a
renowned multi-national consumer goods company. Unilever Bangladesh Limited (UBL) is a
household name virtually for every Bangladeshi national. Being a multi-national, no other
company has achieved this level of success. It is regarded as one of the most reputed multi-
cultural companies of the world. With its history of over 70 years globally, UBL, an operating
and Brand building company of Unilever Group has predominantly served the Bangladeshi
market with mainly Home and Personal Care (HPC) FMCG products for last 47 years with
limited presence in the food business with Lipton tea. With dominant brands in HPC like Lux,
Lifebuoy, Wheel and Pond’s, growing brands like Sunsilk, Clear and rising stars like Rexona
and Dove, the company now wants to check its possibilities in the foods category which
globally is the largest business of Unilever (54% of total portfolio).
In this report we focused on the management of the Unilever and tried to make a comparison
what we have learned so far in our management course. One of the important fact is as it is
a multi-national company and UBL is only a regional country based part of it. So we couldn’t
ignored the existing international information. We gathered as much information as we could
and make the necessary editing, modification and combination.
Though UBL has a strong brand image in our country, it his has some competitor in our
country. As a developing country, we have some consumer company that simply can’t be
ignored. By providing products with a most reasonable cost with the existing quality it can
expand its user group.
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Table of Contents
1. Introduction ........................................................................................................................ 1
1.1 Background.................................................................................................................. 1
1.2 Timeline ....................................................................................................................... 2
2. The Function of Management ............................................................................................ 4
2.1 Planning ....................................................................................................................... 5
1. Vision & Goals ............................................................................................................. 6
2. Priorities and Principles ............................................................................................... 6
3. Portfolio Matrix Analysis ............................................................................................. 8
2.2 Organizing ................................................................................................................. 10
1. Structure.................................................................................................................... 10
2. Departmentation ....................................................................................................... 10
2.3 Staffing ...................................................................................................................... 12
1. Recruitment of UBL ................................................................................................... 12
2. Training Systems ....................................................................................................... 15
3. Appraisal Methods .................................................................................................... 15
2.4 Leading ...................................................................................................................... 16
1. Charismatic Leadership ............................................................................................. 16
2. Democratic or Participative Leadership .................................................................... 16
3. Transformational Leading ......................................................................................... 17
4. Managerial Grid ......................................................................................................... 18
2.5 Controlling ................................................................................................................. 20
1. Establishment of standards ....................................................................................... 21
2. Measurement of performance against these standards .......................................... 21
3. Correcting variation from standards and plan .......................................................... 21
3. Conclusion ........................................................................................................................ 23
3.1 References ................................................................................................................. 24
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Unilever
1. Introduction
Unilever is an Anglo–Dutch multinational consumer goods company. Its products include
foods, beverages, cleaning agents and personal care products. It is the world's third-largest
consumer goods company measured by 2011 revenues (after Procter & Gamble and Nestlé)
and the world's largest manufacturer of ice cream.
Unilever owns over 400 brands, amongst the largest selling of which are Aviance, Axe/lynx,
Ben & Jerry’s, Dove, Flora/Becel, Heartband, VO5, Wall’s and PG Tips. It is a dual-listed
company consisting of Unilever N.V., based in Rotterdam, Netherlands, and Unilever PLC,
based in London, United Kingdom. Both companies have the same director and they operate
as a single business. (Wikipedia)
1.1 Background
In the 1890s, William Hesketh Lever, founder of Lever Bros, wrote down his ideas for Sunlight
Soap – his revolutionary new product that helped popularize cleanliness and hygiene in
Victorian England. It was 'to make cleanliness commonplace; to lessen work for women; to
foster health and contribute to personal attractiveness, that life may be more enjoyable and
rewarding for the people who use our products'.
This was long before the phrase 'Corporate Mission' had been invented, but these ideas have
stayed at the heart of our business. Even if their language – and the notion of only women
doing housework – has become outdated.
In a history that now crosses three centuries, Unilever's success has been influenced by the
major events of the day – economic boom, depression, world wars, changing consumer
lifestyles and advances in technology. And throughout we've created products that help
people get more out of life – cutting the time spent on household chores, improving nutrition,
enabling people to enjoy food and take care of their homes, their clothes and themselves.
In the late 19th century the businesses that would later become Unilever were among the
most philanthropic of their time. They set up projects to improve the lot of their workers and
created products with a positive social impact, making hygiene and personal care
commonplace and improving nutrition through adding vitamins to foods that were already
daily staples.
Today, Unilever still believes that success means acting with 'the highest standards of
corporate behavior towards our employees, consumers and the societies and world in which
we live'. Over the years we've launched or participated in an ever-growing range of initiatives
to source sustainable supplies of raw materials, protect environments, support local
communities and much more. (Unilever)
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1.2 Timeline
1885 - Although Unilever wasn't formed until 1930, the companies that joined forces
1899 to create the business we know today were already well established before
the start of the 20th century.
1900 - Unilever's founding companies produced products made of oils and fats,
1909 principally soap and margarine. At the beginning of the 20th century their
expansion nearly outstrips the supply of raw materials.
1910 - Tough economic conditions and the First World War make trading difficult for
1919 everyone, so many businesses form trade associations to protect their shared
interests.
1930 - Unilever's first decade is no easy ride: it starts with the Great Depression and
1939 ends with the Second World War. But while the business rationalizes
operations, it also continues to diversify.
1940 - Unilever's operations around the world begin to fragment, but the business
1949 continues to expand further into the foods market and increase investment in
research and development.
1950 - Business booms as new technology and the European Economic Community
1959 lead to rising standards of living in the West, while new markets open up in
emerging economies around the globe.
1960 - As the world economy expands, so does Unilever and it sets about developing
1969 new products, entering new markets and running a highly ambitious
acquisition program.
1970 - Hard economic conditions and high inflation make the 70s a tough time for
1979 everyone, but things are particularly difficult in the fast-moving consumer
goods (FMCG) sector as the big retailers start to flex their muscles.
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1980 - Unilever is now one of the world's biggest companies, but takes the decision
1989 to focus its portfolio, and rationalize its businesses to focus on core products
and brands.
1990 - The business expands into Central and Eastern Europe and further sharpens
1999 its focus on fewer product categories, leading to the sale or withdrawal of two-
thirds of its brands.
2000 - The 2000s start with the launch of Path to Growth, a five-year strategic plan,
PRESENT sharpened in 2004 with Unilever's Vitality mission focusing on the needs of
21st century consumers. In 2009, Unilever announces a new corporate vision
- working to create a better future every day - and enters the 2010s with a
new strategy: The Compass. To support this strategy, the Unilever Sustainable
Living Plan launches in 2010. (Unilever)
By timeline we can easily come to the conclusion that from 18th century it started its voyage,
had a boost in 19th and gradually it has become the 3rd most giant consumer related
multinational company.
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2. The Function of Management
There are five managerial functions (by the opinion of different author and specialists it varies
from 5-7) around which are must to managerial knowledge. They are-
Planning
Controlling Organizing
Leading Staffing
This is a cycle that will be executed again and again until the end of an organization and its
management. This steps will now be analyzed in the perspective of Unilever.
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2.1 Planning
The main planning cycle of Unilever is-
UBL is making some huge plans that is making them recognized among the whole world. In
the planning sector we focused on the 3 different sectors of planning, they are-
Vision & Goals
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1. Vision & Goals
Unilever products touch the lives of over 2 billion people every day – whether that's through
feeling great because they've got shiny hair and a brilliant smile, keeping their homes fresh
and clean, or by enjoying a great cup of tea, satisfying meal or healthy snack.
Unilever simplified their goals and vision in their website and we have mentioned it here
and tried to make an analysis.
A Clear Direction
We work to create a better future every day, with brands and services that help people feel
good, look good, and get more out of life.
In 2009, we launched what we call The Compass – Unilever’s strategy for sustainable growth.
It sets out a clear and compelling vision of our future, in which our brands and services reach
and inspire people across the world, helping us double the size of our business while reducing
our environmental footprint and increasing our positive social impact.
It’s a goal we’re seeking to achieve by developing new ways of doing business through which
we can minimize our direct impact and improve hygiene, nutrition, opportunities and health
for communities.
We’re working with our suppliers, consumers and the retailers who sell our brands to improve
their sustainability credentials too.
By combining our multinational expertise with our deep roots in diverse local cultures, we’re
continuing to provide a range of products to suit a wealth of consumers. We’re also
strengthening our strong relationships in the emerging markets we believe will be significant
for our future growth.
And by leveraging our global reach and inspiring people to take small, everyday actions, we
believe we can help make a big difference to the world. (Unilever)
Analysis
Our findings are-
Unilever is focusing more on sustainable growth than profit,
Decreasing environment pollution in manufacturing goods and products,
Increasing positive social impact,
Minimizing direct impact on nature and improving hygiene, nutrition, opportunities
and health for communities,
Trying to get the newly emerging markets.
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Five key priorities provide the foundation for this brand’s campaigns. Read some examples of
how different brands are upholding these principles.
A Healthier Future
Unilever’s Flora/Becel margarine brands have been scientifically proven to help
reduce cholesterol levels
Vaseline has launched the Vaseline Skin Care Foundation, providing research into skin
conditions and support for people affected by them
Lifebuoy soap has long had a presence in developing markets around the world, and
its campaign to promote hand washing with soap has reached more than 70 million
people in rural India
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A Better Future for Farming & Farmers
Many of its brands contain ethically and sustainably sourced ingredients that are
independently certified,
Among these are Lipton tea, which is accredited by the Rainforest Alliance, and Ben &
Jerry’s ice cream, which includes Fairtrade vanilla and almonds in various flavors,
Around half its raw materials come from agriculture and forestry, so we’re working
towards making our key crops 100% sustainable.
Analysis
This are some priorities and principles that are existing around the whole world. Some of
them are currently executing in Bangladesh. In this case our findings are-
Some products like Close up making people aware of their dental health,
Different kinds of soaps like Lifebuoy making rural people’s life more hygienic,
Reducing environmental impact as less as possible in manufacturing products,
Making little events in schools, in various type of international days like “Global Hand
washing Day” to raise awareness among children,
Raising fund for underprivileged children.
High
Market Growth
Low
High Low
Market Share
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Star Products: High Growth Rate and High Market Share
Sunsilk
Wheel
Lux
Fair & Lovely
Cash Cow Products: Low Growth Rate and High Market Share
Surf Excel
Lipton Taaza
Lifebuoy
Question Marks Product: High Growth Rate and Low Market Share
Wheel Rain Power White
Rexona
Dove
Ponds
Analysis
Sunsilk, Wheel, Fair & Lovely, Lux are in a very well position and they needs to sustain
their market and growth,
Surf Excel, Lipton Taaza, Lifebuoy are well in market share but low in growth, so this
products need some investment,
Wheel Rain Power White, Dove, Rexona, Ponds are having high growth but their share
price is low, so they needs some priority and modification,
Lifebuoy Shampoo and Vaseline are facing some real problem in Bangladeshi market,
their growth and market share both is low. They needs some serious marketing and
product promotion to survive otherwise these product production should be stopped
before any huge loss.
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2.2 Organizing
We divided it by Structure and Departmentation.
1. Structure
The organization structure used by UBL is Vertical spans. The commands flow from upside to
down. Such as-
2. Departmentation
We explained the organization process of Unilever Departmentation. The main
Departmentation used by Unilever are-
Advantages: Disadvantages:
Places responsibility at a lower level Requires more persons with general
Places emphasis on local markets manager abilities
and problems Tends to make maintenance of
Improves coordination in a region economical central services difficult
Takes advantage of economies of and may require services such as
local operations personnel or purchasing at the
Better face-to-face communication regional level
with local interests Increases problem of top
Furnishes measurable training management control
ground for general managers
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ii. Departmentseation by Product
Grouping of activities to products or product lines, especially in multiline, large enterprises.
This is what UBL generally does, in Bangladesh they have divided their department by product
wise like skin care or hair care. We have done some analysis of this departmentation too.
Advantages: Disadvantages:
Places attention and effort on Requires more persons with general
product line abilities
Facilitates use of specialized capital, Tends to make maintenance of
facilities, skills, and knowledge economical central services difficult
Permits growth and diversity of Presents increased problem of top
products and services management control
Improves coordination of fun
Places responsibility for flexmonis at
the division level
Furnishes measurable training
ground for general managers
Advantages: Disadvantages:
Oriented toward end results Conflict in organization authority
Professional identification in exists
maintained Possibility of disunity of command
Pinpoints product-profit exists
responsibility Requires manager effective in
human relations
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2.3 Staffing
We consists the staffing process in three steps. They are-
1. Recruitment
2. Training Systems
3. Appraisal Methods
1. Recruitment of UBL
Unilever collects their staffs by two process. The process is given below-
Recruitment
of UBL
MTO or
Under MTO
Above
According to the tree diagram UBL collets it’s under Management Trainee officer workers
from PeopleScape and HR Kites.
Steps
The application process for the Future Leaders or offices Program involves five stages:
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Curriculum Vitae Collection
The first thing applicant must do is complete the application form, which allows him to
present a complete picture of his talents, interests and ambitions.
The most remarkable parts are-
Writing test
In this stage applicants take part in a writing test. Here Mathematical, General Knowledge and
English skills are being tested.
1. Group Discussion
2. Case Analysis
3. Presentation
Final Interview
This is the final stage of the recruitment process. The senior officers take a final interview
and try to sort out the most capable person for the job.
Medical Checkup
At last a medical checkup is done to find if the person is carrying any fatal disease or not. UBL
generally does this in APOLLO DIAGNOSTIC CENTRE.
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Staffing Process of UBL
RECRUTING
Inadequate Information
CV Collecting
Failed to Satisfy
Unable to Keep Up
Final Interview
HIRING DECISION
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2. Training Systems
UBL only follows two types of system for the training of the new recruiting officers.
3. Appraisal Methods
It is meant to be the very critical part of this steps. Making a appraisal report is very
challenging. Some of the common methods that are used by the UBL managers are given
below:
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2.4 Leading
Leading is the art or process of influencing people so that they will strive willingly and
enthusiastically toward the achievement of group goals.
The leadership of UBL is somewhat different. In our analysis we got every possible positive
leadership categories and may be this on of the base point of their success.
Charismatic
Leadership
Democratic
Leadership
Transformational
Leadership
1. Charismatic Leadership
Charismatic leaders are essentially very skilled communicators – individuals who are both
verbally eloquent, but also able to communicate to followers on a deep, emotional level. They
are able to articulate a compelling or captivating vision, and are able to arouse strong
emotions in followers.
In our appointment we found out that some leaders are very charismatic and they are very
successful in their ways.
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table, and discussion is relatively free-flowing. This style is needed in dynamic and rapidly
changing environments where very little can be taken as a constant. In these fast moving
organizations, every option for improvement has to be considered to keep the group from
falling out of date.
This is the basic function that is mostly required in the UBL leadership. Autocratic leadership
is never welcomed there.
Group members are encouraged to share ideas and opinions, even though the leader
retains the final say over decisions.
Members of the group feel more engaged in the process.
Creativity is encouraged and rewarded.
3. Transformational Leading
Transformational leadership is a type of leadership style can inspire positive changes in those
who follow. Transformational leaders are generally energetic, enthusiastic, and passionate.
Not only are these leaders concerned and involved in the process; they are also focused on
helping every member of the group succeed as well.
In some case UBL leaders uses this kind of leadership, because this is a very modern and
effective process to influence subordinates.
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4. Managerial Grid
The managerial grid model (1964) is a situational leadership model developed by Robert R.
Blake and Jane Mouton. This model originally identified five different leadership styles based
on the concern for people and the concern for production. The optimal leadership style in this
model is based on Theory Y.
Manegarial Grid
Country Club Style, Team Style,
10 1, 9 9, 9
9
8
Concern For People
7
Middle of the road
6 Style, 5, 5
5
4
3
Impoverished Style, Produce or Perish,
2 1, 1 9, 1
1
0
0 1 2 3 4 5 6 7 8 9 10
Concern for Production
1. Impoverished Style (1, 1): evade and elude. In this style, managers have low concern
for both people and production. Managers use this style to preserve job and job
seniority, protecting themselves by avoiding getting into trouble. The main concern
for the manager is not to be held responsible for any mistakes, which results in
less innovative decisions.
2. Country club Style (1, 9): yield and comply. This style has a high concern for people
and a low concern for production. Managers using this style pay much attention to the
security and comfort of the employees, in hopes that this will increase performance.
The resulting atmosphere is usually friendly, but not necessarily very productive.
3. Perish Style (9, 1): control and dominate. With a high concern for production, and a
low concern for people, managers using this style find employee needs unimportant;
they provide their employees with money and expect performance in return.
Managers using this style also pressure their employees through rules and
punishments to achieve the company goals. This dictatorial style is based on Theory
X of Douglas McGregor, and is commonly applied by companies on the edge of real or
perceived failure. This style is often used in cases of crisis management.
4. Middle-of-the-road Style (5, 5): balance and compromise. Managers using this style
try to balance between company goals and workers' needs. By giving some concern to
both people and production, managers who use this style hope to achieve suitable
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performance but doing so gives away a bit of each concern so that neither production
nor people needs are met.
5. Team Style (9, 9): contribute and commit. In this style, high concern is paid both to
people and production. As suggested by the propositions of Theory Y, managers
choosing to use this style encourage teamwork and commitment among employees.
This method relies heavily on making employees feel themselves to be constructive
parts of the company.
Analysis:
After analyzing the managerial methods and leadership of UBL, we came the conclusion that
in the Managerial Grid UBL scores 5, 5 or 9, 9 and both score is very appreciable. Cause:
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2.5 Controlling
Controlling is the measurement and correction of performance in order to make sure that
enterprise objectives and the plans devised to attain them are being accomplished. Planning
& controlling are closely related.
It isn’t something that an organization wants to talk about. But we still were able to get some
information.
Establishment of
standards
Measurement of
performance against
these standards
Correcting variations
from standards and
plans
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Now they are briefly explained below:
1. Establishment of standards
As plans are the yardsticks against which managers devise controls the first step in the control
process logically would be to establish plans. It means to set objectives and standards.
Standards are simply criteria of performance. There are many kinds of standards.
Benchmarking:
Benchmarking is an approach for setting goals and productivity measures based on best
industry practices.
There are three types of benchmarking are: Strategic, Operational, and Management.
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Control as a feedback system:
Managerial control is essentially the same basic control process as that found in physical,
biological, and social systems. Many systems control themselves through information
feedback, which shows deviations from standards and initiates changes. In other words,
Systems use some of their energy to feedback information that compares performance with
a standard and initiates corrective action.
Analysis:
After all this discussion, we found that UBL controlling method is general and not pretty
outstanding. It can be a fact that they didn’t wanted their strategy to be open, so they just
gave us casual information. But we were able to secure one important fact that in employee
controlling they have one special branch in Human Resource Management.
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3. Conclusion
After analyzing the report we can come to a certain point that in the managerial function UBL
has the every possible aspects to be a part of a Multi-National company. It can be a hindrance
that the information we got isn’t 100% correct but still it has the upper hand.
Some of the main feature of UBL management is:
UBL has a great planning and approach. It is not only for the company benefit but also
in sustaining living hood development.
Organizing is one of the part where UBL can expect some serious appreciation. Every
possible organizing method that will serve the purpose they will never hesitate to
reform or transform.
In staffing process UBL is always fair and square. There is no way their system is
affected by the influence of politics or power.
Leading method of UBL is rather practical than conceptual. To perform the task,
Leaders are willing to change their leading method.
At last the controlling part is rather hazy because UBL generally don’t fail to achieve
the target.
That was pretty much our analysis. UBL is in the verge of its prosperity and doesn’t need any
major change.
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3.1 References
Unilever.com. 2010. Unilever global company website | Unilever Global. [online] Available at:
http://www.unilever.com/ [Accessed: 14 Jan 2014].
Unilever.com.bd. 2014. Unilever Bangladesh | Bangladesh. [online] Available at:
http://www.unilever.com.bd/ [Accessed: 14 Jan 2014].
Weihrich, H., Koontz, H. and Cannice, M. V. 2008. Management. New Delhi: Tata McGraw-
Hill.
Wikipedia. 2014. Unilever. [online] Available at: http://en.wikipedia.org/wiki/Unilever
[Accessed: 14 Jan 2014].
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