Case Study on Unilever’s Path to Growth Strategy: Is It Working?
I. Current Situation A. Current Performance: Unilever is a world renowned company, which was created in 1930 through the merger of margarine Unie, a Dutch margarine company and British-based Lever Bothers, soap and detergent company. Unilever had 1600 brands and sales & marketing efforts in 88 countries all over the world. The main target were to get top-line sales growth of 5-6 percent annually and to increase operating profit margin from 11 percent to over 16 percent both to be accomplished by the end of the year 2004.They cutting down their portfolio from 1600 to 400 core brand. Increasing profit margin to 11 to 16 percent by year end 2004. Unilever had extended its brand portfolio 500 to 600 brands in 2003 and
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Advertising was considered a key to increasing unit volume and helping drive consumers toward higher margin products; sustained volume growth also usually entailed gaining increased international exposure for a company’s brands. Improving a company’s profit margins included not only shifting sales to products with higher margins but also boosting efficiency and driving down unit costs.
C. Summary of External Environment It is fast-moving consumer goods with products on sale in more than 170 countries. Their Code of Business Principles commits them to running their operations with honesty, integrity and openness. Their approach is always to investigate, understand and discuss issues of concern and respond.
III. Internal Environment A. Corporate Culture It varies around the world because, naturally, people have different points of view depending on where they live. But some things are consistent, important things that determine how they interact with colleagues and partners, customers and consumers. Most important are their high standards of corporate behavior, which are enshrined in Their Code of Business Principles. They also have high ethical standards, both in terms of