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I - Company introduction

Unilever is a leading multinational company specializing in fast


moving consumer goods (FMCG: Fast Moving Consumer Good). The
company is headquartered in two cities, London in the UK and
Rotterdam in the Netherlands. Explaining this, Unilever is the result
of the merger of two businesses Lever Brothers of the UK and
Margarine Unie of the Netherlands in 1930. The products that
Unilever specializes in manufacturing are very diverse, from
cosmetics to laundry chemicals. bleach to toothpaste, shampoo, food
and more. Currently, Unilever is present in more than 190 countries
and territories around the world, of which Unilever entered the
Vietnamese market in 1995.
Over 20 years of establishment and development, Unilever has
achieved many great achievements in Vietnam. Owning a network of
more than 150 distributors and over 300,000 retailers, Unilever
Vietnam has provided direct jobs to more than 1,500 people as well
as more than 15,000 indirect jobs for third parties, suppliers and
suppliers. distribution.
At the time of the company's founding, the founders of that time set
out Unilever's mission as "To add vitality to life". this destiny. The
meaning of this mission is that Unilever wants to bring a better life to
people through its products. Until now, that mission has become
increasingly evident in each of Unilever's products when all products
of this group are aimed at the same purpose, which is to bring
health, beauty and comfort to children. People. Proof of this is that
Unilever's famous brands are very diverse from washing powder,
shampoo, toothpaste to tea such as Omo, Dove, Close-up, Lipton, ...
As mentioned above, Unilever's development strategy is built around
the Sustainable Development Plan to achieve the ultimate goal of
creating a sustainable life for everyone in the world. Specifically,
Unilever has invested in a long-term development strategy for its
entire category and brand in order to bring beneficial growth to all
stakeholders, thereby being able to "realize " his vision.
At Unilever, the 25-person leadership team is divided into three main
groups and four sub-groups: CEO, non-executive director and
secretary. In which, the CEO group will have more members of the
Executive Leadership Team (ULE). Specifically, each member and
their positions are:

Group of CEOs: 2 people

Mr. Alan Jope – CEO


Mr. Graeme Pitkethly – Chief Financial Officer

Executive Leadership Team (ULE): 10 people

Research Director
Supply Chain Manager
President, Refreshment Division
President, North America
Human Resources Director
President, Home Care
President, Food
Legal Director
Marketing Manager

Team of Non-Executive Directors: 12 people

President of Unilever
Non-Executive Director
Non-Executive Director
Non-Executive Director
Non-Executive Director
Non-Executive Director
Non-Executive Director
Non-Executive Director
Non-Executive Director
Non-Executive Director
Non-Executive Director
Non-Executive Director
List of products of Unilever Vietnam
Unilever is a multinational corporation in the fast-moving consumer
goods industry with four product lines:

Food & Beverage


Household cleaning and laundry chemicals
Beautify and take care of yourself
Water purifier
In which, the water purifier product line is a new product group, the
remaining three groups are the key products of Unilever with more
than 150 brands worldwide. In particular, in Vietnam alone, Unilever
focuses on the first three product groups with 25 brands. Below is a
detailed list of each brand for each Unilever product group in
Vietnam.

II - International business strategy and organizational structure

Organizational structure and international business strategy


Unilever, one of the most important and influential companies in
the world with several well-known brands, has the opportunity to
enter international marketplaces in order to get access to clients
everywhere. With the help of its four primary worldwide brands—
Dove, Sunsilk, Rexona, and Lux—Unilever subsequently entered one
or a few foreign countries in order to compete on a global scale.
Unilever begins to compete internationally by expanding its popular
brand to several developing regions after successfully releasing its
product in a number of different areas.
When entering and competing in emerging economies for its
cosmetics and toiletry goods, Unilever has a global strategy
described as a "think global, act global" approach. It strives to build
worldwide brands, organizes its activities internationally, and sells
practically the same items everywhere (local tastes required only
minor changes). In every area where the corporation operates, the
plan largely follows the same competitive strategy approach.
A global approach is favoured over localized strategies by Unilever
because it allows it to more easily synchronize its actions and
concentrate on developing a brand image and reputation that are
consistent from country to country.
This tactic implies that Unilever has been successful in developing
brands with significant character, such as Dove, Sunsilk, Rexona, and
Lux. Unilever should also use a worldwide strategy to coordinate its
marketing, operations, and distribution internationally.
It is crucial that we undertake a SWOT analysis to identify the
company's resource strengths and weaknesses as well as its external
opportunities and threats before examining Unilever's strategies for
competing in international markets. This report accurately captures
the company's overall condition.
Strengths:
• Wide range of cosmetics and toiletry products in Unilever's
portfolio, including some of the biggest brands in the world including
Dove, Sunsilk, Rexona, and Axe/Lynx/Ego.
• Successful restructuring: Unilever's "One Unilever" restructuring
program, which includes a shift from brand management to sectoral
management, is currently being implemented and appears to be
successful. These brands have expanded into new, rapidly expanding
industries thanks to a successful brand diversification strategy, which
has strengthened the image of its globally recognized brands. By
taking this measure, more money shoul
• Global brand strategy - By focusing on building core global brands,
which is in line with the current trend in global consumables
marketing, Unilever is well-positioned to compete with huge
international corporations.
• Sectoral and geographical diversification – the firm has a
substantial worldwide footprint, allowing it to take advantage of
emerging areas while balancing market maturity in others. Similar to
this, the company's varied portfolio, which is spread throughout a
number of regional markets and the cosmetics and toiletries
industries, acts as a safeguard against a local market decline.d be
available for current brand initiatives.
• Market domination - Unilever is the leading marketer of bath and
shower products and deodorants globally, as well as in its home
markets of Western Europe, Eastern Europe, Latin America, Africa,
and the Middle East.
•Brand development and marketing — Unilever is quite active in in-
store displays and has a very sophisticated advertising and marketing
program, both of which are essential for success in the cosmetics and
toiletry industry. With the successful launch of Axe in North America
in 2003, the company's reputation in the crucial North American
men's grooming goods sector significantly improved. Based on
successful product innovation and the prompt rollout of brand
extensions that are well-suited to changing consumer demands,
Unilever has established a strong position in some of its most
significant sectors.
• Quicker product development: By launching new items more
quickly, Unilever will be better able to adjust to shifting customer
expectations and stay one step ahead of the competition.
• Concentrate on the general public
• More efficient organizational structure – Unilever's internal
organization has altered, with divisions now being more centrally and
internationally controlled. The corporation now has more internal
synergies, such as in its distribution operations. The ongoing
restructure will lead to more operating cost cuts throughout the
whole business.
Weaknesses
• Lack of sector concentration – Unilever has a wide range of
products in its portfolio, such as packaged foods and home care
goods. As a result, when demand radically shifts, cosmetics and
toiletries could not get the resources they need, which might also
delay the introduction of new goods.
Non-core brands run the risk of being overlooked due to the
company's focus on its six-core brands, which puts lesser-known
brands and other product categories at risk of receiving less
attention. Given Unilever's current emphasis on core brands, the
company's presence in a number of non-core cosmetics and toiletry
sectors, such as sun care, baby care, and color cosmetics, does not
generate enough revenue to support their inclusion in the portfolio.
• Growing consumer base - Unilever is attracting more customers by
expanding its global reach and brand range. This is crucial
considering the advent of products designed specifically for males,
such as Rexona for Men and Axe, as well as the fact that Lynx has
found particular success among younger men in the 17 to 34 age
bracket in the UK. The company's efforts in this area would probably
profit from the anticipated continued growth of the market for men's
grooming goods.
• Presence in developing product categories - despite its present
little engagement, Unilever has the potential to one day benefit from
developing product categories including infant care and sun care.
• Products for an aging workforce – Unilever will continue to profit
from global demographic shift as firming skin care products and
nourishers/anti-agers gain popularity along with the rise in the
number of senior women and their purchasing power. Due to its
significant presence in both body and face care, the enterprise is
well-positioned to profit from this trend.
• Demand for products distributed in the mass market, such as those
provided by Unilever, will continue to rise as urbanization spreads
around the globe.
Threats
• Industry consolidation – Unilever faces ongoing threats from
further industry consolidation, which puts its market position in
jeopardy in a variety of ways.
• Private label products: As a manufacturer of products for the mass-
market retail channel, Unilever is threatened by the emergence of
high-tech, low-cost private label products being offered by big-box
shops.
• Negative public relations: Despite claiming to be exploring for
alternatives to using animals to test its products, Unilever has not
totally stopped utilizing animal experimentation. Due of this, it may
be subject to consumer boycotts and the activities of animal rights
activists, both of which might be detrimental to its capacity to
operate.
According to the Pestle analysis, the firm is obviously highly strong
and healthy. As a result, the company has great competences and a
variety of opportunities to compete in global markets. According to
Unilever's mission statement, it enters foreign markets to reach
customers all around the world. The majority of people in the earth,
according to Unilever, utilize their product. In order to put their vast
knowledge and international expertise at the service of local
customers, the company works to manufacture a variety of nutrition,
hygiene, and personal care goods with well-known brands. As a
result, Unilever is moving swiftly and forcefully to broaden its market
reach globally.

Organizational structure of the business


An organizational chart is a hierarchical structure that streamlines a
company's operations and helps it accomplish its sector goals.
Businesses with several subordinates in each branch submit reports
to their assistant director, who then forwards the information to the
CEO or chief executive officer of the firm. The CEO will provide the
board of directors at the corporate headquarters with all
information.

The plan that specifies the arrangements and mechanisms used to


construct and link the various organizational components, such as
offices and teams, is the organizational structure of the corporation.
Organizational changes in the consumer products sector and on
international marketplaces are accommodated by Unilever. The
business continues to operate under a framework that satisfies its
requirements for the global management of all product kinds.
Unilever, a market leader in consumer products, has the ideal
organizational setup to support a variety of international activities.
Unilever maintains its ranking as one of the biggest consumer
products corporations in the world because to an organizational
structure that facilitates efficient product creation. Despite the
complexity of its worldwide operations, Unilever is able to achieve
success because to the design of its organizational structure.
Characteristics of Unilever's Organizational Structure
According to their product emphasis, Unilever has a divisional
structure per product category, divided down into components.
Important aspects of Unilever's organizational design:
- Classification of products
- Executive Team of the Company
- Geographic separation
Grouping of product categories: together as a unit to oversee the
creation, manufacturing, marketing, and sales of Unilever's
consumer goods. The use of product differentiation, which is also
Unilever's general strategy for gaining a competitive edge, is made
easier thanks to this structural property. The firm already offers a
diverse range of products, therefore this organizational structure is
advantageous. Within its organizational structure, Unilever maintains
the following product classification divisions:
- Personal Hygiene
- Food
- Homecare - Tea time
A supporting element of Unilever's organizational structure is the
company executive team. It is based on operational principles. For
instance, Unilever has separate teams in charge of the finances and
marketing communications. The Unilever Leadership Operations
(ULE) team is made up of these teams. In Unilever's organizational
structure, the company's executive teams include:
- Supply Chain
- General Director
- Human Resources
- Research & Development - Tea Break
- North America
- Personal Care
- Homecare
- Finance
- Legal
- Food
- Europe
- Marketing & Communications
Geographical division: The organizational structure's geographical
division is a minor element. This structural characteristic is used by
the firm to support local strategies. The ability to assess a company's
financial performance is another usage for this corporate structure
feature. The organizational structure of Unilever maintains the
following geographic divisions:
Asia, AMET, and rub
- Americas
- Europe
Cons and benefits
The assistance for product development and innovation provided by
Unilever's organizational structure is a benefit. For instance, each
product type division has the capacity to operate independently in
order to create items that precisely satisfy market groups for
consumer goods. This business structure is also highly beneficial
since it enables Unilever to improve its goods despite its extensive
worldwide operations.
The lack of substantial assistance for the implementation of the
regional plan is a drawback of Unilever's organizational structure.
The corporation still places greater emphasis on product type
separation even if geographical division is one of its fundamental
elements. As a result, support for certain regional or market strategy
modifications is minimal. Therefore, it is advised that Unilever
expand its emphasis on geographic divisions to enable regional
management teams in order to strengthen this organizational
structure. The strategic effectiveness in the local consumer goods
marketplaces is enhanced by such a structural adjustment.
http://panmore.com/unilever-organizational-structure-product-
innovation#:~:text=Unilever%20has%20a%20product
%20type,division%20for%20home%20care%20products.
https://www.academia.edu/36551995/
STRUCTURE_AND_FUNCTIONS_OF_UNILEVER
III - Strategies and operations of internation business management

The global approach of Unilever


The Multinational Strategy was the cornerstone of Unilever's global
business strategy from 1990 to 2000.
By tailoring goods to each overseas market, multinational strategies
are competitive tactics that seek to raise the value of products (and
consequently raise earnings) for businesses.
Each overseas branch handles nearly all significant value-creating
tasks, including manufacturing, marketing, product development,
etc., in response to demand to adapt.
Unilever opted to using a multinational approach in its international
business plan after failing to suit the specific demands of each area.
The organization hopes to be able to benefit from local advantages,
establish solid working ties with local officials, and reduce staff
commute times.
By simplifying processes, Unilever also hopes to reduce operational
expenses, accelerate product development, and launch new goods.
Currently, each foreign company may take over the manufacture,
sales, marketing, and distribution of products in that market thanks
to Unilever's global business model. Each firm will be an independent
profit center and is exclusively accountable for its own operation.
A global approach allows managers in each organization to design
goods and implement marketing plans customized to local
preferences and tastes, and to alter sales techniques and distribution
networks. synchronized with each market's retail system.
This technique does, however, have certain drawbacks, such as the
inability to specialize or resource and department overlap. Due to
subsidiaries' failure to concentrate on the most effective location,
same value-generating activities take place in each area twice,
producing duplication of effort.
Unilever now employs a multinational business strategy.
A competitive strategy known as a "transnational strategy" aims to
boost profits by reducing costs across the board while enhancing
value by customizing products for each market.
In order to adapt successfully, business divisions operate with a high
degree of autonomy in areas like manufacturing and marketing,
while still coordinating closely with one another (to reduce costs).
When a company is under intense pressure to cut costs and adapt
to local conditions, it may opt for a global approach.
The following list of factors may help explain why Unilever decides
on a transnational approach for its global business plan:
Due to cultural differences and the host country's regulations, there
is a lot of pressure to adapt to the local culture. There is also a lot of
pressure to cut prices because there are more domestic
manufacturers with sophisticated manufacturing facilities competing
with foreign ones.
Unilever's foreign business strategy includes a number of important
transnational initiatives, such as:
Investigation and Development
Unilever has been observing the evolving psychology of customers
via the formation and growth of People Data Centers all around the
world in order to differentiate goods to match local demands.
Unilever has increased its number of data centers from 25 to 30
since 2017. Businesses have utilized the information gathered to
conduct research and create goods that are tailored to each region's
likes and needs.
Manufacturing
Unilever will assess and modify production objectives in each nation
and territory depending on important variables such the population,
economy, sociopolitical environment, and microenvironment.
production strategy choices.
In order to serve customers from diverse backgrounds, fulfill market
demands, and increase profits, Unilever distinguishes its goods as
well. For instance, "Surf Excel" laundry detergent was developed in
India for the wealthy, "Rin" for the middle class, and "Wheel" for the
lower class.
Supply chain management and logistics
The effective implementation of Unilever's global business plan
depends heavily on logistics.
Managing strategic sourcing, including supplier selection and
contracting, for Unilever's businesses in Asia, Africa, and Central and
Eastern Europe is the responsibility of a corporate global center in
Singapore.
The implementation of the acquisition and sale will be handled by
international offices. These offices won't be allowed to choose
vendors until the center gives them permission to.
All of Unilever's distribution and receiving processes are
computerized as well. The effective implementation of the VMI and
e-Order models to important accounts contributes to the large
reduction of partner inventory and the resolution of the present
inventory conundrum for wholesalers.
Unilever decides to outsource its distribution and logistics system
by working with businesses and third parties in the majority of
markets.
Advertising Initiatives
Unilever has executed its marketing strategies in accordance with
the Marketing Mix 4P model with regard to its global business plan.
The item (Product)
In order to perform research and product development
appropriately, Unilever concentrates on the person in the market
and focuses its objective on learning about new customer
expectations.
Price
Prior to entering a market, Unilever always thoroughly investigates
the price methods used by rivals and creates the best pricing plans
possible while still retaining the company's profitability. Unilever
generally maintains a marginal pricing for each of its goods.
System of distribution (Place)
Unilever has concentrated on growing its distribution system in
order to reach a large consumer base, according to an analysis of its
marketing strategy for the distribution system (Place).
There are presently more than 150,000 wholesale and retail
locations around the country for Unilever Vietnam's goods, along
with roughly 350 distributors. These figures demonstrate that the
company's goods are flooding the Vietnamese market, reaching even
the busiest districts of Vietnamese cities from outlying regions.
Mix of promotions
Unilever has concentrated on launching advertising campaigns for
its products on media like radio, TV,... and technical methods for its
marketing strategy on promotion mix (Promotion).
To get a competitive edge, Unilever generally leverages
distinctiveness. The emphasis on the traits or qualities that set the
company's products apart from the competitors is the major goal of
this business strategy. For instance, to satisfy consumer desire for
soaps that aren't too harsh or dry, Unilever produces personal care
items like Dove Cream Bars.
Such Unilever products stay competitive despite their relatively high
price tags because they differ from the majority of soaps, which put
more of an emphasis on moisturizing than cleaning.
With this tactic, the business draws clients to specially created
goods. The purpose and vision statements of Unilever, which aim to
assist global sustainability and improve the comfort of consumers'
lives, are in keeping with such a common approach.
To develop Unilever via product development is the strategic goal
based on the group's unique general competitive strategy. This
objective is to create items that stand out from the crowd and draw
customers. On the other side, the financial goal is connected to
Unilever's overarching plan to boost sales in emerging nations, which
present excellent potential for development.
The PESTEL Analysis conducted by Unilever identifies these
opportunities. Combining these strategic objectives produces a
competitive advantage that is evident in the consumer goods
market's successful products and financial performance.
Unilever uses market penetration as their primary growth-intensive
strategy (key strategy). As part of this business plan, the corporation
raises sales volume in an effort to boost revenue and business
expansion. For instance, Unilever regularly promotes its home care
products in developed nations like the US and Canada.
Such aggressive actions improve the company's capacity to entice
clients away from rival home care providers. By employing a
common differentiation technique to make its goods more
competitive and alluring than others, Unilever effectively
implemented this business strategy.
This business strategy's strategic goal is to expand the company by
aggressive Unilever product marketing in the worldwide consumer
goods industry.
Development of Products (Secondary Strategy)
Product creation is a supplementary, but equally important,
approach that Unilever employs to expand its clientele. By releasing
new items that satisfy customer wants, the corporation implements
this business plan. To preserve or grow the company's market share,
Unilever occasionally releases whole new iterations of its personal
care products.
Development and research
Unilever has followed the evolving psychology of customers and
consumers in order to address local demands for product
differentiation through the formation and growth of global personal
cloud services use. In 2017, Unilever increased its size and grew from
roughly 25 to 30 million data centers. The organization or
corporation that does research and develops goods using the data
gathered to meet the requirements and preferences of each area.
Manufacturing
In order to decide its production plan, Unilever will assess and
modify its production objectives in various regions and nations based
on important variables including the economy, population
environment, micro-macro environment, and socio-political
environment. decision.
Unilever's goals are to meet the requirements of all social classes,
meet market demands, increase sales, and create distinctive goods.
For instance, "Rin" was developed for the middle class, "Surf Excel"
for the affluent, and "Wheel" for the underprivileged.
Effective logistics and supply chain operations
The major function of logistics in the effective execution of
Unilever's business strategy. There is a global center of the company
based in Singapore that involves the selection of supplier and
entering into a contract in order to manage the strategic sourcing of
Unilever's activities in Africa, Asia, Central, Africa, and Eastern
Europe.
It will be your responsibility to carry out the actions involved in
purchasing and selling multinational offices. If not given permission
by the center, there will be no chance to choose suppliers from these
offices. Unilever will also computerize all of its distribution and
receiving processes. The successful implementation of the e-Order
and VMI models for today's merchants has resulted in a considerable
reduction in the partner's inventory.

IV - Conclusions and Management Economic Effects Management


of policies

1/ THE RESPONSIBLE SUPPLY POLICY OF UNILEVER


Unilever makes an effort to handle its business affairs in a way that
respects human rights, employee interests, and is honest, ethical,
and open. The parties with whom we have created partnerships are
also respected for their rightful interests. As vital as our employees
and our brand is our reputation. All of our staff members, our
suppliers' staff members, and anybody else with whom we conduct
business are held to the highest standards of conduct. Hardcore
vendors for Unilever are those who are dedicated to upholding the
principles outlined in the aforementioned Core Principles.
The company's employee policy
Employees at Unilever will always be offered equal employment
chances, and the company opposes any discrimination based on
medical history, marital status, age, nationality, or sex.
We make sure that all of our workers receive fair and equitable
treatment, and that all choices about their training, career
advancement, and promotion are made based solely on their
qualifications for the position. Work .
2 /CONCLUSION:
Unilever has set itself the lofty aim of being entirely renewable by
the year 2020, both to better the environment's prospects and to
support the expansion of the corporation surname.
By increasing everything's ecological efficiency at workplaces like
offices and factories, the main goal is to utilize less energy overall.
Eco-efficiency is not just about lessening harm to the environment; it
also benefits businesses.
Recommendations for Policy
The study team would like to advocate the following government
policies:
• Present and discuss instances of ethical investors, such as UVN.
Businesses must be prepared for research and for the results to be
broadly communicated in order to do that. The findings of the study
should be positive, increasing the company's reputation and status in
the business community if it is to operate responsibly.
• Enhance the business environment's legal framework, put in place
legal infrastructure, encourage companies to reinvest, train local
partners, and give employees benefits like social security and
insurance.
• Encourage the growth of business-supporting sectors and
services, such as specialized superannuation trusts and recruiting and
training firms; create competitive upstream industries to aid MNCs in
particular in reducing production costs and competing worldwide.
• Establish regulations requiring the rigorous application of CSR,
such as those governing employment, working conditions and
benefits, product quality, and environmental protection.
• The development of long-term and comprehensive partnerships
between locally based small and medium-sized businesses and
foreign-invested firms through the use of linkages to boost small
efficiency drop.
• Industries, in general, and enterprises with foreign direct
investment, in particular, contribute to national development
priorities and socioeconomic development priorities.

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