DEPARTMENT OF MANAGEMENT

Group Assignment
CA 02
Subject Details
Subject Organization Theory
Subject Code MGT 2303

Student Details
Student Name Student Number Signature
1 M.A.S.M.ARACHCHI 6937 Sachith

2 N.L.K.D.THATHSARANI 6953 Dimalshi

3 N.I.D.SASANKA 6959 Imasha

4 W.W.D.SIHARA 6981 Dinuki

5 M.W.G.S.SACHITHRANI 7030 Sandani

6 Y.P.H.K.WEERASINGHE 7058 Hasangi

7 L.B.D.K.SENADHEERA 7083 Dineth

8 M.P.MISKIN 7084 Menash

9 I.R.SANDANAYAKA 7094 Isuri

10 N.M.I.S.JAYASENA 7179 Indika

Word count 5794

Due date / Time 15th July 2022
Individual Declaration
We (Group) certify that the content of the above assignment is one of our original work and not copied
from any of the published or internet-based documents. Without references We have not used any of the
other person’s original work or ideas. So, the report or the work We have done is free of plagiarism.
Group leader’s Sachith Date 15th July 2022
Signature
 Table of Contents

Introduction ................................................................................................................................................. 1
Organization Structure .............................................................................................................................. 2
Product type division .............................................................................................................................. 3
Corporate executive teams ..................................................................................................................... 3
Geographic Divisions .............................................................................................................................. 4
What is Organizational Life Cycle? .......................................................................................................... 4
❖ Entrepreneurial Stage..................................................................................................................... 4
❖ Collectivity Stage ............................................................................................................................. 4
❖ Formalization Stage ........................................................................................................................ 4
❖ Elaboration Stage ............................................................................................................................ 4
Challenges and Solutions of Entrepreneurial Stage Unilever Company ............................................... 5
1) Hiring Employees ............................................................................................................................ 6
2) Time Management .......................................................................................................................... 7
3) Self-Doubt ........................................................................................................................................ 8
4) Business Growth.............................................................................................................................. 9
5) Choosing What to Sell .................................................................................................................... 9
6) Raising Capital .............................................................................................................................. 10
Challenges and Solutions of Collectivity Stage Unilever Company ..................................................... 11
1) Market Penetration ....................................................................................................................... 12
2) Product Development ................................................................................................................... 12
3) Diversification ............................................................................................................................... 13
4) Market Development .................................................................................................................... 13
Challenges and Solutions of Formalization Stage Unilever Company ................................................. 14
‘Functional’ barriers appearing between departments and employees. .......................................... 15
1) Poor communication ..................................................................................................................... 15
• Encourage open communication ................................................................................................. 15
• Promote knowledge sharing ........................................................................................................ 15
• Communicate regularly ............................................................................................................... 15
• Solicit feedback ........................................................................................................................... 16
• Listen closely .............................................................................................................................. 16
• Motivation your employees ........................................................................................................ 16

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 2) Enforcement of inconsistent policies ........................................................................................... 16
• Maintain a Clear and Updated Employee Handbook .................................................................. 17
• Manage the Company’s Managers .............................................................................................. 17
• Document All Policy Enforcement ............................................................................................. 18
• Monitor Electronic Communication ........................................................................................... 18
• Understand the Laws Surrounding Pay and Leave ..................................................................... 18
3) Removing obstacles ....................................................................................................................... 18
• to productivity in the workplace is to set performance expectations for all employees ............. 19
• Implement one change at a time. ................................................................................................ 19
• Sustain a culture of continuous improvement. ............................................................................ 19
• Avoid retroactive taxation for businesses that formalize. ........................................................... 19
• Promote labor law reform ........................................................................................................... 19
• Identify the system that needs improvement ............................................................................... 19
• Support broad programs of regulatory reform. ........................................................................... 19
• Replace old strategies with new ones ......................................................................................... 19
• Make frugality a company value. ................................................................................................ 19
• Sustain a culture of continuous improvement ............................................................................. 19
Challenges and Solutions of Elaboration Stage Unilever Company .................................................... 20
1) Unilever's having to make an unwavering effort in supporting its customers, colleagues,
communities, and the country to navigate the challenges posed by the COVID-19 pandemic. ..... 20
2) Unilever had to accelerate its digital expansion. It seeks to 'invest and grow. ........................ 21
3) Unilever was forced to accelerate the development of technological solutions in the face of
Covid 19. ................................................................................................................................................ 21
4) Since there are many products of Unilever company, the sale of some products is hindered at
present. ................................................................................................................................................... 22
Conclusion ................................................................................................................................................. 23
Reference ................................................................................................................................................... 24

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Introduction

The company we have chosen here is Unilever. In this report we hope to discuss the Unilever
company structure and the various challenges it faced in its life cycle. Also, the solutions and
actions used for those challenges are also discussed. The life cycle of the company is divided
into 4 parts. that is, Entrepreneurial Stage, Collectivity Stage, Formalization Stage and
Elaboration Stage. We have studied the challenges faced in those times separately and
discussed the solutions used in this report.

We chose Unilever for this assignment because is a huge and renowned company that already
has more than four hundred brands under that company. A global British firm that manufactures
consumer goods, Unilever plc is based in London. Food, spices, ice cream, cleaning supplies,
cosmetics, and personal care goods are all produced by Unilever. The largest soap maker in the
world, Unilever, sells its goods in more than 190 nations.

Our report is about that huge company.

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Organization Structure

The corporate structure of Unilever is in charge of making sure that product innovation is
adequately supported across the company's international operations. The layout and processes
used to construct and connect various organizational components, such as offices and teams, are
defined by a company's organizational structure, often known as its corporate structure. The
organizational structure of Unilever responds to shifts in the worldwide market and consumer
products sector. The corporation currently maintains a system that takes corporate demands into
account when handling different product kinds globally. Unilever, a market leader in consumer
goods, has an organizational structure that is suitable for supporting its diverse global Unilever
continues to maintain its position as the world's largest consumer goods company with a
corporate structure that allows for effective product development. Such organizational structural
designs seem to have ensured Unilever's continued success despite the complexity of its global
operations.

The organizational structure of Unilever contains various characteristics. Unilever has a regional
organizational structure based on products. Depending on their concentration on a certain
product, the organization is separated into parts. For instance, the business includes separate
divisions for personal care items and home care products. The essential components of
Unilever's organizational structure are listed below.

• Product type divisions (most significant feature)

• Corporate executive teams
• Geographic divisions (least significant feature)

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Product type division

Unilever manages the creation, production, distribution, and sale of its consumer goods through
the use of a product type division, which serves as a functional unit. For instance, corporate
managers make advantage of this organizational structure aspect to match the needs of the
market with the proper products. This structural trait has the benefit of facilitating the company's
attempts to implement product differentiation, which is Unilever's general competitive advantage
approach. This organizational structure is advantageous, particularly given the company's already
varied product line. The following product category divisions are still maintained by Unilever in
its organizational structure.

➢ Personal Care
➢ Foods
➢ Home Care
➢ Refreshment

Corporate executive teams

The organizational structure of Unilever also includes corporate teams. This structural element is
based on operational principles. For instance, Unilever has separate teams for marketing
communications and finance. The Unilever Leadership Executive (ULE) group is made up of
these teams. The corporate executive teams in Unilever's organizational structure are listed
below.

➢ Chief Executive
➢ Human Resources
➢ Research & Development
➢ Supply Chain
➢ Refreshment
➢ Personal Care
➢ North America

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 ➢ Home Care
➢ Finance
➢ Legal
➢ Foods
➢ Marketing & Communications
➢ Europe

Geographic Divisions

The organizational structure of Unilever does not significantly include geographic divisions. This
structural element is used by the company to support local strategies. For instance, Unilever's
marketing plans for Europe differ from those for markets for consumer goods in Asia. This
element of the corporate structure is also utilized to evaluate the financial performance of the
business. The organizational structure of Unilever maintains the following geographical
divisions.

➢ Asia/AMET/RUB (Africa, Middle East, Turkey; Russia, Ukraine, Belarus)

➢ The Americas
➢ Europe

What is Organizational Life Cycle?

Organizational life cycle is the agenda through which an organization operates from start to
finish. There this life cycle is divided into 4 parts for ease of study. That is,
❖ Entrepreneurial Stage
❖ Collectivity Stage
❖ Formalization Stage
❖ Elaboration Stage

When an organization is built in these stages, various obstacles and difficulties come. Then, in
order to overcome those obstacles and move forward, solutions must be found within the

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organization itself. We are going to talk about the challenges faced by Unilever during that
period and the solutions used for them.

Stages of Life Cycle Development

Challenges and Solutions of Entrepreneurial Stage Unilever Company

The entrepreneurial stage is the name given to the initial stage, and the name is apt. The company
is currently small, there is little hierarchy, and people operate across a wide range of departments.
Employees are trusted to complete their tasks with little supervision. As the employees are now a
member of the company because they wish to stand behind their product and/or service, this
frequently does not result in any issues.

The organization's services and/or products are the primary areas of focus and effort. When
examining brand-new start-up businesses, this life cycle stage is plain to notice. Staff flexibility is

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high despite a small employee base. The workspace of a Unilever start-up company is seen in the
image below.

The absence of leadership is the main issue facing the entrepreneurial community. The Unilever
company is not an exception to this. Even though it typically doesn't cause any issues in the
beginning, as the business grows, it could become more obvious. When the workforce reaches a
particular size, leadership is required to maintain the organization's diverse components.

At its inception, the Unilever corporation had a straightforward organizational structure with
centralized authority, and the company's founder made all decisions. At the start-up stage, the
company's major goals are to define its core capabilities, cultivate an audience, and develop a
product that suits the market (has demand and repeat sales). In order to avoid direct competition
with the industry's top competitors during the startup phase, the company typically opts for a
specialized competition approach.

Due to a lack of human resources in the initial stage, the company's employees frequently execute
multiple tasks at once, in addition to the management being directly involved in the process of
product development and creation. When a company's product is popular and can generate a
consistent stream of income, the business expands, new departments are created, and internal
business procedures become more advanced, necessitating more sophisticated and structured
management techniques.

1) Hiring Employees

At Unilever, Entrepreneurs are the ones who dread job interviews the most. The hiring
process, which includes examining resumes, participating in interviews, and eliminating
unqualified individuals, can take days of the company's time. The company then wants to
be able to present a compelling package to attract and keep the finest candidates.

❖ Solution: Be exclusive

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 In terms of the requirements for candidates, the nature of the job, the days and hours of
work, and the compensation and benefits offered, far too many help wanted advertising
are highly ambiguous. Pre-qualifying individuals through exclusive help wanted
advertising that are incredibly clear in what it takes to get employed at the Unilever
Company and what the day-to-day work includes will save you a ton of time. Use good
targeting to approach their personnel search in the same manner you would a customer-
focused marketing campaign.

When you have a list of potential candidates, set up a "walking interview" where you
show the candidates around their workplaces.

Ask candidates about their experiences, expectations, and pertinent job-related inquiries.
Pose inquiries about the position and the candidates' backgrounds, aspirations,
commitment, and long-term objectives.

Act as though you're looking for a partner to help run and expand the Unilever firm rather
than as an overlord deciding which minion gets to survive another day.

Spend some time looking for genuine references—not the neighbors the applicants knew
growing up, but those who can sincerely attest to their work ethic and ability. Before
making a job offer to a candidate you've chosen, ask them directly what it will take to
keep them working for you in the long run.

2) Time Management

The largest issue facing entrepreneurs who wear several (and possibly all) hats in our
organization is time management. Employees could accomplish more if they had more
time.

❖ Solutions: Make time

Time doesn't grow on trees, so you have to be wise about how you use it. Here are a few
advices:

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 Make a list of your lifetime goals, then break those goals down into annual, monthly, and
weekly objectives. The daily chores will subsequently be divided into weekly targets. In
this way, all that is required to achieve lifetime goals is what is on the job list for any
given day.

Eliminate any tasks that do not support the objectives.

Delegate any jobs that do not absolutely need to be finished.

Frequently ask the question, "Is what I'm doing right now the best use of my time?"

3) Self-Doubt

The life of an entrepreneur is not glamorous, at least not at first. When something goes
wrong or when your growth is slower than you'd want, it's simple to become disheartened.
You may start to doubt yourself and consider giving up.

❖ Solution: A good support system and focusing on tasks

For entrepreneurs, the capacity to overcome self-doubt is an essential quality. It will be

beneficial to have a strong network of supporters, including family members and close
friends who are aware of your objectives and understand your situation, as well as a board
of advisors made up of other business owners who can provide impartial advice.

Making progress on your goal and task lists is one of the finest methods to overcome self-
doubt. When you're feeling demotivated and down, glance at your lists and remember that
the things you complete today are moving you closer to your long-term objectives. By
completing them, you will be one step closer to achieving company success and can relax
knowing that you are on the right track.

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4) Business Growth

We have come to the point where we can no longer operate within the confines of our
organization's current structure.

❖ Solution: Reconsider processes and roles

Create new procedures with a task delegation focus. Once they've had some degree of
success, many entrepreneurs who are accustomed to wearing all the hats find themselves
in this situation. As a result of our efforts, progress stops when it reaches a self-imposed
ceiling. Delegating work to others is the only way to get from being involved in the
production end to management and then pure ownership.

Not that you should let another person make the decision. However, it makes useful to
get advice from someone who is adept at finding niches if you are not. can then evaluate
the recommendations independently to see if you concur. By taking this action now,
you'll be able to save your company, your livelihood, and a lot of time, money, and hassle
in the future.

5) Choosing What to Sell

Unilever was aware that if it understood what goods and services to market, it could make
a fortune. Unsure about how to select a specialization.

❖ Solutions: Conduct research

Admit that are not very good at finding profitable niches, and give the job to someone who
is.

Instead of hiring a big, expensive marketing company, find a freelance researcher with
experience in the industry you're thinking of going into (retail e-commerce, service
industry, publishing, etc.). Ask them to perform market research and produce a report

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 outlining prospective niches, supported by profit margins and a thorough SWOT analysis
(Strengths, Weaknesses, Opportunities, and Threats).

Not that you should let another person make the decision. However, it makes useful to get
advice from someone who is adept at finding niches if you are not. can then evaluate the
recommendations independently to decide whether they concur. A lot of time, money, and
difficulties can be avoided later by taking this action now, not to mention your entire
business and livelihood.

6) Raising Capital

The next hurdle an organization faces when starting a business from scratch is raising
financing after developing its idea and assembling the organization's business team. As an
entrepreneur, you are the only one who truly understands the business concept. You are the
only person who can imagine the future of the organization. However, it is helpful to have
staff behind you who understand the company's vision and can provide additional
information and a positive impression to investors.

Trying to convince investors of something that doesn't yet exist is certainly difficult,
especially during this period of economic hardship. Convincing people that you are reliable
and capable of handling the task at hand is not easy, especially when you are starting up
your first company and need to convince everyone that the company is capable.

Raising capital involves more than merely asking for money. Most investors want to take
minimum risks when investing in well-established companies and want to be certain they
will profit from their investment. Because the entrepreneur is either unprepared or lacks
the necessary skills to raise the required funds, most outstanding business ideas never scale
past the venture capital stage.

❖ Solution: Start small

Funding can be obtained in a variety of ways, including conventional bank loans,

Kickstarter campaigns, and self-sustaining growth models.
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 Concentrate on your early core clients rather than attempting to overnight establish a
multimillion-dollar firm.

Naturally, you should constantly attempt to attract new clients, but you should also make
an effort to continually wow the clients you already have. More clients will find you as a
result of word-of-mouth spreading.

As they do, create the systems and business procedures that let you assign work to others
while maintaining high standards. Your company will expand gradually and steadily, and
you'll be able to address issues as they arise. Consider where you want to be in five years.
can they get there on their own, even if they have to somewhat postpone their growth
while doing so? To ensure that you are not sacrificing too much of the Unilever firm in
order to obtain money, consult an attorney if you do believe that you need it.

Challenges and Solutions of Collectivity Stage Unilever Company

The organization enters the Collectivity Stage once leadership is formed, and the personnel base
has grown. The company has begun to create distinct goals and directions at this phase. Creativity
and freedom remain, but there are now limits. Division’s form, and people tend to focus on
increasingly connected and particular duties. Communication is still informal and frank.

When the organizational size gets too large for high management to handle, the collectivity stage
encounters difficulties. It becomes incredibly difficult for a single individual to closely and
successfully supervise several groups. At the same time, lower-level supervisors emerge from the
groups and are eventually assigned to specific teams. Upper management may now communicate
with all areas of the company without having to speak with each employee individually.

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1) Market Penetration

Unilever's major intense growth strategy is market penetration. In this intense approach,
the company boosts its sales volume in order to generate revenues and hence business
growth. Unilever, for example, actively sells its goods in current areas such as the United
States and Canada in the home care sector. Such aggressive attempts improve the
company's potential to lure clients away from competitors in the home care industry.
Unilever effectively employs this intense strategy by employing the generic differentiation
technique to make its products more competitive and appealing than competitors. This
intense approach has a strategic goal of growing the business by aggressively marketing
Unilever items in the global consumer goods industry.

❖ Solution

There is a possibility that market consumer demand may be higher than estimated by
Unilever. In such cases, there may be a surplus or shortage in the market, so a proper market
survey can be done and the correct quantity can be offered to the market.

2) Product Development

Unilever's secondary intense approach for corporate growth is product development. This
aggressive expansion plan is implemented by the corporation by providing new items that
meet the wants of consumers. Unilever, for example, releases wholly new or new versions
of its personal care products throughout time in order to retain or enhance the company's
market position. This aggressive expansion plan is consistent with the company's generic
differentiation approach for gaining a competitive edge in the consumer products business.
For example, product uniqueness is required for differentiation, which is used in Unilever's
product development procedures. This rigorous strategy leads to the strategic goal of firm
growth through constant product innovation. This type of innovation enhances the product
mix in Unilever's marketing mix.

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❖ Solution

Unilever's solution to this problem can be shown by introducing a new variety of products
to the market. That is, production development can be done by using a unique production
pattern and a unique production process and economical use of resources.

3) Diversification

Diversification is used by Unilever as a supplement to their aggressive expansion strategy.

This aggressive approach focuses on building new companies in order to expand the firm.
Unilever, for example, purchases various businesses throughout time to diversify, such as
the acquisition of Sara Lee Corporation's personal care division in 2009-2010. This
rigorous expansion plan is supported by the general competitive strategy of differentiation,
which ensures that Unilever's acquired brands provide distinctive attributes that attract
target customers. A strategic goal associated with this aggressive approach is to seek
expansion by continuing the company's mergers and acquisitions trend. This tendency
bolsters Unilever's position in the global consumer products business.

❖ Solution

Unilever has to manage its own risk and invest in an investment portfolio for
diversification. Where Unilever investment banking sector can invest in different areas like
share buybacks.

4) Market Development

In Unilever's company, market development is employed as a supporting intense growth

strategy. The corporation expands through this rigorous approach by entering new markets
or market segments. Unilever, for example, may expand by promoting its current goods as
a new answer to unmet requirements in certain market niches, such as newborn care needs.

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 However, the corporation already has a strong presence in almost every consumer goods
industry category throughout the world. As a result, Unilever's intense expansion strategy
plays just a supporting role in the company's operations. This intense strategy is supported
by the generic differentiation strategy, which creates competitive advantage based on
product uniqueness, which is required to effectively penetrate new market categories. A
market development-based strategy goal is to increase Unilever by conducting marketing
efforts that emphasize the potential benefits of its present goods.

❖ Solution
For Unilever's market development, new products can be presented in a different way as
well as stand out and simple and inexpensive products can be presented. Also finding new
customer market segments not identified by the company. And it can also do this by
attracting its own competitors.

Challenges and Solutions of Formalization Stage Unilever Company

Formalization stage is the extent to which an organization’s policies, procedures, job

descriptions, and rules are written and explicitly articulated. Formalized structures are those in
which there are many written rules and regulations. These structures control employee behavior
using written rules, so that employees have little autonomy to decide on a case-by-case basis. An
advantage of formalization is that it makes employee behavior more predictable. Whenever a
problem at work arises, employees know to turn to a handbook or a procedure guideline.
Therefore, employees respond to problems in a similar way across the organization; this leads to
consistency of behavior. The service industry is particularly susceptible to problems associated
with high levels of formalization. Sometimes employees who are listening to a customer’s
problems may need to take action, but the answer may not be specified in any procedural
guidelines or rulebook. Companies in the formalization level of organizational development find
that they have to formalize the management system elements such as.

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‘Functional’ barriers appearing between departments and employees.

1) Poor communication

Without the proper level of communication between employees and management and
among colleagues, productivity can suffer. A lack of communication due to conflicts
between staff members can prohibit the completion of certain tasks that require the input
of different people. However, if there are communication challenges with management
and employees, the lack of information can lead to gossip and assumptions, which takes
time to get things done.

❖ Solution

These barriers affect the negative relationship between employees and managers. Lack of proper
level of communication in an organization damages the productivity and efficiency of the
organization. However, for the workplace to function smoothly, employees need to get along
with each other. We need to take the following steps to address these issues.

• Encourage open communication

These measures should be taken to maintain good communication between
managers and employees. If employees have the freedom to approach managers
when they have problems, they can promote honest communication between them.
Also, by paying attention to and respecting employees' opinions, poor
communication can be broken and positive communication can be built.

• Promote knowledge sharing

Some managers are aware of their employees' jobs but take little interest in their
work. Even the employees working under them may have suggestions that can
improve the bottom line of the company. Therefore, you should pay attention to
them with good interest and their suggestion.

• Communicate regularly

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 Unilever should make sure that communication is done in a way that does not tire
the employees. We can use social media sites and email and fax to communicate
messages to employees at the right time, because especially as there may be
younger employees who may find routines difficult. It can be enabled by asking
employees if they would like to receive notifications via text messages sent to their
smartphones.

• Solicit feedback

This facilitates two-way communication and allows employees to indicate that their
opinion is important to the organization. This gives the manager new ideas as well
as an understanding of the employees' jobs. Valuable employee suggestions can be
obtained and implemented by establishing a feedback system.

• Listen closely

Listening Speaking Writing is a communication skill. As a manager, when you

allocate time for your employees, give your attention to the employee without
distracting him from other phone calls and text messages during that time. Also,
even if you don't agree with their views, allow the employee to speak without
interrupting. The better the reputation as a good listener, the more effective the
communication.

• Motivation your employees

When employees are discouraged, productivity suffers. As a result, employees are

also motivated to leave their jobs. Therefore, various measures should be organized
to encourage them.

Ex:- Round table discussions, providing lunches, going on excursions, increasing

salaries, promoting positions, conducting recreational activities.

2) Enforcement of inconsistent policies

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 If your company applies employee policies inconsistently or lacks formal guidelines, it
can hinder staff productivity. If employees feel there is a level of unfairness in the
workplace, dissatisfaction, low morale and patronage issues can arise, according to IT
managers' inboxes.

In addition, employees in classes protected by state and federal laws may claim
discrimination based on issues such as race, sex, disability, religion, and age.

Inconsistent policy enforcement acts as a barrier to productivity by giving employees an

opportunity to work in an environment free of suspicion and dissatisfaction.

❖ Solution

If these company policies are applied inconsistently and without formal guidance, those
policies should be removed. The department should align strategies to achieve the objectives.
And policies should be developed to suit an organization. Now let's look at some formal
policies that can be formulated

• Maintain a Clear and Updated Employee Handbook

Every company's go-to resource for policy references should be the employee
handbook. Employees who lack a handbook may begin to perceive a manager's
sincere efforts to uphold business rules as discriminatory because they have no
notion what to expect from them. Employee handbooks are also necessary for
managers to use as a reference for enforcing corporate rules.

• Manage the Company’s Managers

While HR staff members are aware of the value of applying company policies
consistently, managers are the ones who will be carrying out this enforcement on
the ground. To comprehend workplace policies and prevent the perception of bias
or prejudice, all firm managers should receive training. Managers also need further
training on sexual harassment due to their position of power.

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 • Document All Policy Enforcement
Managers should document when an employee is disciplined or rewarded and
specify the specific policies that led to the action. Documentation makes it easier
for managers to catch inconsistencies before they become a problem. These
documents will also be crucial in defending the company in case of a lawsuit.

• Monitor Electronic Communication

The frequency and informality of contact between staff and management have
increased with the usage of email and internal chat programs. Although this may
boost productivity, it also makes inconsistencies more likely. Make sure managers
are aware that their online communication with employees matters as least as much
as their face-to-face interactions with them.

• Understand the Laws Surrounding Pay and Leave

Every company must make sure they have HR professionals on staff to keep them
in line with the complex web of laws governing employee compensation and leave
time. Pay and benefit disparities can lower morale and expose businesses to legal
action.

3) Removing obstacles

One way to remove barriers to productivity in the workplace is to set performance

expectations for all employees. After hiring, new employees should be given a performance
plan that details their most important duties and how they must complete them. This form of
communication leaves no doubt about how to evaluate your staff's productivity and
eliminates unintentionally inconsistent treatment.

Additionally, if employees understand what the priorities are, they can focus on meeting
needs and not try to juggle multiple duties at once. If applied consistently, appraisals that

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 accurately reflect the employee's performance based on the job plan can motivate employees
to be productive or improve for their own and the company's benefit.

If a business experiences financial difficulties or changes its business model to adapt to

certain circumstances, management should provide employees with updates on their job
security when necessary. On the other hand, supervisors who communicate too much with
employees may scatter too much irrelevant information only to annoy employees or take up
company time.

❖ Solution

• to productivity in the workplace is to set performance expectations for all employees

• Implement one change at a time.
• Sustain a culture of continuous improvement.
• Avoid retroactive taxation for businesses that formalize.
• Promote labor law reform
• Identify the system that needs improvement
• Support broad programs of regulatory reform.
• Replace old strategies with new ones
• Make frugality a company value.
• Sustain a culture of continuous improvement

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Challenges and Solutions of Elaboration Stage Unilever Company

Eventually, as competition continues to rise, other companies will try to imitate your success with
additional product features or lower prices, so the life cycle will decline. New innovations that
supersede your existing product, such as horse-drawn carriages going out of style with the takeover
of the automobile, can also cause declines. Market saturation causes many companies to move into
different businesses, which means there is no longer any profit to be made. Of course, some firms
may survive the downturn and continue to produce, but production may be on a smaller scale and
prices and profit margins may be depressed. Although this can be reversed in some cases, with
fads and fads reviving interest in an old product, consumers may abandon a product for a new
alternative.

The era in which the organizations perceives the need for renewal is known as the elaboration
stage. The organizations has grown too bureaucratic at this point. The decision-making process
involves a number of units or departments. This could hinder an organizations capacity to act
promptly on crucial situations. Strong organizational and coordinating systems are in place. The
bureaucracy of the organizations, however, can frequently fail. In this assignment we are talking
about elaboration stage challenges of Unilever company Sri Lanka.

1) Unilever's having to make an unwavering effort in supporting its customers, colleagues,

communities, and the country to navigate the challenges posed by the COVID-19
pandemic.

The Covid-19 pandemic has defined 2020 for millions of people. At Unilever it’s certainly
had a significant impact on their business, their people and the international communities
they reach.

❖ Solution

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 Due to covid 19, the country's economy has gone down in a big way. This also affected
businesses in a big way. As a solution to this, the most essential goods for humans have
been created in large quantities during this time. And running the business without losing
the job opportunities of the employees.

2) Unilever had to accelerate its digital expansion. It seeks to 'invest and grow.

The pandemic has only accelerated the shift to online and they're not seeing this trend
reversing anytime soon.

❖ Solution
With the spread of Covid -19, consumers who were stuck at home got used to buying goods
online. As a solution to that, Unilever can design packages using essential goods for
consumers and make them available for online payment.

3) Unilever was forced to accelerate the development of technological solutions in the face
of Covid 19.

The effects of COVID-19 are being felt by individuals and economies all across the world.
Unilever has responded quickly to serve its many stakeholders, keep running through the
crisis, and get ready for expansion under a new normal.

❖ Solution
Unilever was forced to accelerate the development of technological solutions in the face of
Covid 19. The effects of COVID-19 are being felt by individuals and economies all across

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 the world. Unilever has responded quickly to serve its many stakeholders, keep running
through the crisis, and get ready for expansion under a new normal

4) Since there are many products of Unilever company, the sale of some products is
hindered at present.

Some call this the decline stage of the business life cycle, but it doesn’t always involve a
decrease in business activity or success. Challenges during the maturity phase include
continued competition, uncertainty about adding new products or services, and questions
about how to develop an appropriate exit strategy for your business.

❖ Solution

Due to Covid-19, sales of certain products of Unilever, which creates a large number of
products, have fallen. During this period, products with low sales are produced less, and
hand wash and disinfectants are sold in large quantities, so it is advisable to produce more
of them.

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Conclusion

The conclusion we can draw from this report is that even if your company faces challenges
throughout its life cycle, there are solutions that can help you overcome them to grow, expand
and succeed. Preparation, hard work, thoughtful business decisions and effective management
will take any cautious startup from a promising idea to a successful venture.

In this report we mentioned four stages of an organization's life cycle that is,

• Entrepreneurial Stage
• Collectivity Stage
• Formalization Stage
• Elaboration Stage

Any organization goes through these four stages in its life cycle when it becomes a successful
business. If an organization is unable to overcome the obstacles that arise during these stages, the
business will go bankrupt.

A giant company like Unilever has faced these challenges and succeeded because of the foresight
and efficient decisions of their management. They have managed to dominate more than 190
countries around the world. Today, we can see that Unilever has been able to take control of their
competitors by strategically defeating them.

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Reference

• Ways to Break Communication Barriers Between Employees. (2022, March). Grace

Ferguson. https://work.chron.com/ways-break-communication-barriers-between-employees-

5035.html

• How to Address Inconsistency in Your Organization. (2019, June). Leah Boyd.

https://www.lbmc.com/blog/inconsistent-application-workplace-policies/

• Business Potential & Performance. (2020, March). https://panmore.com/

• Emerging Challenges Of Unilever. (2021, October). IPL.

https://www.ipl.org/essay/Emerging-Challenges-Of-Unilever-FJ9RHD94RG

• Unilever. (2020, March). British Government. https://en.wikipedia.org/wiki/Unilever

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