Corporate Strategy Bba4th

INTRODUCTION Unilever is one of the world’s leading suppliers of fast moving consumer goods across Foods and Home and Personal Care categories. Unilever’s portfolio includes some of the world’s best known and most loved brands. Unilever Pakistan Limited(UPL) 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. Unilever Pakistan is the largest FMCG company in Pakistan, as well as one of the largest multinationals operating in the country. Now operating six factories at different locations around the country. The Unilever's Head Office was shifted to Karachi from the Rahim Yar Khan site in the mid 60's. Brand names/loyality In the world of consumer products Unilever Pakistan has created an indelible name for itself with brands such as Lifebuoy, Lux, Surf and Walls. Loyality of customers By far the largest consumer products company in Pakistan, UPL is a part of the consumer products giant Unilever. UPL was established some fifty years ago in the then newly created Pakistan. The town of Rahim Yar Khan was the site chosen for setting up a vegetable oil factory in 1958 and that is where the first UPL manufacturing facility developed.

Corporate strategies Mission Vitality is at the heart of everything we do. It's in our brands, our people and our approach to business.

Main Goals of corporate Strategy  Leader in the consumer goods market.  Managing govt relations to influence duty on imports of raw materials and countering smuggling of competitors goods Strategy and long-term financial targets At the heart of Unilever's strategy is a concentration of resources on areas where we have leading positions and on high growth spaces, especially in personal care, in developing and emerging markets and in Vitality. While the focus is on developing the business organically, acquisitions and disposals also have a role to play in accelerating the portfolio development. To execute this strategy the business has been reorganized to simplify the management structure and to improve capabilities in marketing, customer management, and research and development. The result is better allocation of resources, better execution, faster decision-making and greater focus on efficiency. The new organization, augmented by the successful 'One Unilever' project, allows us to leverage our scale both globally and locally. Unilever's long-term ambition is to achieve top-third total shareholder return and our targets reflect this. Over the period 2005-2010 we target unguarded free cash flow of €25-30 billion. Disposals made in the past two years, with no significant acquisitions to date, have reduced the cash generation over the period by just over €1 billion. Return on invested capital is targeted to increase over the 2004 base of 11%. We expect underlying sales growth of 3-5% per annum and an operating margin in excess of 15% by 2010 after a normal level of restructuring of 0.5 to 1 percent of sales. Corporate responsibility We seek to manage and grow our business around the world in a responsible and sustainable way. The values and standards by which we expect to be judged are set out in our Code of Business Principles.

Human Resource Strategies.  Managing employee recruitment and placement to put the right person for the right job.  Replacement Planning.  Employee rotation in the department.  Employee training.  Remuneration survey for salary adjustments of employees. FINANCE STRATEGIES  Maintain company finance operations with in the resources  Maintain working capital keeping stock debtors low.  Adhere strictly to the ICAP accounting practices and laws  Tax management to gain legitimate advantages lessening the burden  Ensure internal control through internal audit  Introduction of IT and implementation  Ensure sales revenue generation meet targets  Maintenance of purchasing function

Product strategies •

Unilever continuously work on improving product qualities and features to capture the market.

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It analyzes the demand to check whether the product is profitable or not so that if the product is not it should be discontinued.

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It keeps an eye on the competitor’s products in order to become the market leader of certain product.

 Leader in the consumer goods market.  Managing govt relations to influence duty on imports of raw materials and countering smuggling of competitors goods Unilever products •

Comfort

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Rin

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Surf excel

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Clear

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Close Up

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Fair & Lovely

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Lifebuoy shampoo

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Lifebuoy soap

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Lux

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Pond's

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Rexona

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Sunsilk

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Blue Ban

Strategic business unit strategies STARS High growth rate & high market share •

Lux

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Sunsilk

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Wall’s

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Fair & lovely

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Rafhan

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Energile

All the above mentioned products have high growth rate and high market share. Our strategy regarding these products is to maintain their growth rate and market share. This can be done by investing huge investment on them. This investment comes from cash cows. CASH COWS •

Low growth rate & high market share

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Surf excel

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Ponds

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Lipton

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Close up

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Blue band

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Lifebuoy soap

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Rexona

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Knorr

All the above products are cash cows. These products have market share high and growth rate low. These products give us cash which we invest on stars. We need low investment for cash cows. DOGS Low growth rate & low market share Wheel Supreme tea Lifebuoy shampoo All the above mentioned products have low market share and low growth rate. These products needed to be modified. We will make more modification in these products to have more growth rate. QUESTION MARKS •

High growth rate & low market share

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Clear shampoo

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Rin

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Comfort

The products which are question mark for our organization can be stars or dogs in the future. We need huge investment for them to avert them from decline and to covert them into stars. Recommendation Unilever Pakistan limited (UPl) is one of the leading business organizations operational in Pakistan since 1958. It has occupied minds of people through (TQM) top quality management. Indeed it has gained loyalty of brands and loyal customer due its consistency in top quality management. It consider all essential to become one of the leading business organization. In fact unilever is a business organization which not only performs the social responsibility efficiently but also focuses on social responsiveness. It also reflects on all its stake holders which include employees, customers and suppliers. At the end I have no vacillation to say that unilever is one of the leading business organizations and is still working for continuous improvement to fulfill customers expectations. To run a good business we should get stick three things1. Get the customer2. Retain the customer 3. Grow the customer. It can be done only by keeping consistence in quality of products. Unilever is business organization which left no stone unturned to perform all essential necessary for successful business.