Stg Managment Report

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1) HISTORY: The Unilever Pakistan Limited (UPL), formerly Lever Brothers Pakistan Limited was established in Pakistan in 1948. The town of Rahim Yar Khan was the site chosen for setting up a vegetable oil factory. A merger between Sadiq Vegetable Oils and Lever Brothers and HVM company (based at Karachi) took place in 1948. As a result of the merger, Lever Brothers Pakistan came into existence. It started its operations as an independent Unilever operating company in 1955. The Unilever's head office was shifted to Karachi from the Rahim Yar Khan site in the mid 1960s. Lever Brothers Pakistan Limited is a multinational organization. Unilever PLC London is its parent company. William Lever (its originator) commences business in England as a grocer. He established Lever Brothers in 1827 in England. Sunlight was the first product of Lever Brothers, which makes the beginning of the marketing of branded products. At the same time a company named Margarine Uni was established in Netherlands by Simon Van Berg and Anton Jurgens. Consequently both the companies started loosing out money in term of profit. These problems led to think of the mergers in 1930. These two companies merged together and renamed the business as Unilever PLC (the word UNI is taken from margarine Uni and LEVERis taken from Lever Brothers). Its headquarters were established in England and Rotter Dam. Acquisition of Brooke Bond: Brooke Bond & Company was founded by Arthur Brooke who was born at 6 George Street, Ashton-under-Lyne , Lancashire , England in 1845. He opened his first tea shop in 1869. The company merged with Liebig in 1968, becoming Brooke Bond Liebig , which was acquired by Unilever in 1984. In Pakistan, Brooke Bond Supreme is the number-one-selling tea brand. Unilever markets it as being stronger than its Lipton Yellow Label blend.

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Strategic management Report

Transcript of Stg Managment Report

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1) HISTORY: The Unilever Pakistan Limited (UPL), formerly Lever Brothers Pakistan Limited was established in Pakistan in 1948. The town of Rahim Yar Khan was the site chosen for setting up a vegetable oil factory. A merger between Sadiq Vegetable Oils and Lever Brothers and HVM company (based at Karachi) took place in 1948. As a result of the merger, Lever Brothers Pakistan came into existence. It started its operations as an independent Unilever operating company in 1955.The Unilever's head office was shifted to Karachi from the Rahim Yar Khan site in the mid 1960s.

Lever Brothers Pakistan Limited is a multinational organization. Unilever PLC London is its parent company. William Lever (its originator) commences business in England as a grocer. He established Lever Brothers in 1827 in England. Sunlight was the first product of Lever Brothers, which makes the beginning of the marketing of branded products. At the same time a company named Margarine Uni was established in Netherlands by Simon Van Berg and Anton Jurgens. Consequently both the companies started loosing out money in term of profit. These problems led to think of the mergers in 1930. These two companies merged together and renamed the business as Unilever PLC (the word UNI is taken from margarine Uni and LEVERis taken from Lever Brothers). Its headquarters were established in England and Rotter Dam.

Acquisition of Brooke Bond:

Brooke Bond & Company was founded by Arthur Brooke who was born at 6 George Street, Ashton-under-Lyne, Lancashire, England in 1845. He opened his first tea shop in 1869. The company merged with Liebig in 1968, becoming Brooke Bond Liebig, which was acquired by Unilever in 1984. In Pakistan, Brooke Bond Supreme is the number-one-selling tea brand. Unilever markets it as being stronger than its Lipton Yellow Label blend.

Acquisition    of Polka Group:   

Lever Brothers Pakistan Limited acquire the shares of Pakistan Industrial Promoters Limited, Mehran International Limited and Ambrosia International Limited, which is known as Polka Group of Ice Cream Companies in 1998.Unilever's international expertise in ice-creams and Polka's long experience of the Pakistan ice-cream market are expected to bring significant benefits to the Pakistani consumer. Unilever will continue to develop and support both its Walls brand and the Polka brand and will invest further in the Polka business to improve the manufacturing operations.

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Mergers:

Unilever Pakistan was merged with Lipton in 1988. Presently they are operationally merged with Best Foods since 2001. 1982 saw the introduction of the personal products and 1994 the setting of the Waals Ice cream business, which was a green field exercise.

2)CULTURE OF THE COMPANY:The culture of Unilever Pakistan is employee friendly. According to them “In many respects, we think of Unilever as a community, rather than an organization. This community is shaped and led by its people, who operate creatively within a framework of shared values and business goals.Because our people are fundamental to the way we do business, they’re at the center of everything we do. Their professional fulfilment, their work/life balance, their ability to contribute equally as part of a diverse workforce… these are all issues to which we give priority”.

They are growing as a company by growing their people. This insight is behind all their efforts to keep their people fulfilled and committed. It’s also why they stay connected with their employees around the world, conducting surveys and ‘pulse checks’ which then feed into the future direction of their business.

Innovation is right at the heart of Unilever, and its dynamic R&D environment attracts top-class scientists. Being at the cutting edge of technology and seeing their work deliver real benefits daily.

Safety and environmental protection is also one of the important part of the Unilever’s Culture.The company take its responsibility to protect its consumers, employees and the environment they operate in.Unilever’s dedicated Safety & Environmental Assurance Centre plays a central role in providing independent assurance and support for the products and processes. Safety decisions are made independently of commercial considerations.The centre is responsible for carrying out the assessment and approval of product and supply chain technology design, considering consumer safety, occupational safety and the environment.

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3 COMMENTS ON VISION STATEMENT:  The vision statement of Unilever Pakistan is as follows:

“We help people around the world meet everyday needs for nutrition, hygiene and wellbeing, with brands that help people look good, feel good and get more out of life.”

ANALYSIS:The vision statement is clearly giving the idea of their products but futuristic approach is missing in a sense that it seems like they have already achieved their goals. They should have used the words like ‘our vision’ or ‘our responsibility etc in the beginning of their vision statement. 

4) MAJOR PROBLEM:

Proctor and Gamble is giving a very tough competition in nearly all the products.

5)MINOR PROBLEMS:

Deteriorating security conditions Energy shortage Employee protests Counterfiet Products

6) ANALYSIS OF MISSION STATEMENT :

The mission statement of the Unilever Pakistan is as follows:“Unilever Pakistan will be the foremost consumer product company in Pakistan with skin care, ice cream and spread. Already positioned in tea, hair, dental and household care, we aim to have substantially profitable position in cooking oils and fats. Our strengths come from our people and from combining the best of our international as well as Pakistan origin. Our commitment is to continuously care for the need of our customers, consumers, employees, suppliers, shareholders and the community in which we live.”

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ANALYSIS:

The mission statement of Unilever Pakistan is quite clear with addressing most of the components of a good mission statement. It is giving an idea about the customers of the company, their products, the geographical market of the company, the company’s concern for survival and profitability, the aspirations and ethical properties of the firm, its responsive attitude towards the community and environment, and the company’s concern for its employees.

The mission statement is lacking in elaborating its technological advancements and its distinctive competence.

7) SUGGESTED STRATEGIES:a) FORWARD INTEGRATION:

Unilever Pakistan should open its own retail stores by gaining ownership over their distributors. They have enough capital for doing this.

b) MARKET DEVELOPMENT: Majority of Pakistan’s population (more than 50%) still uses soaps for cloth washing. They are unfamiliar with shampoos also. Unilever Pakistan should concentrate on market development strategy by introducing its products in rural and remote areas of Pakistan in affordable prices.

c) PRODUCT DEVELOPMENT: Just like Pepsi started producing lays chips which turned out to be a huge success, similarly Unilever should go for product development strategy. These products can be chips, biscuits or even chocolates.

Best strategy:The best strategy among these three is “Market Development” because it won’t requires to gain new expertise as it can be a case in product development strategy. Moreover Pakistan’s population is huge, and if Unilever offer its products like shampoos and detergents in cheap prices to this population, it is for sure that they will enjoy a very attractive margin of revenue because history have shown that Pakistani people quickly react to new products and if the products are of good quality and affordable price then these people use the products for long period of time. Therefore Unilever Pakistan can enjoy a sustainable profit if they go for product development strategy in the rural market of Pakistan.