Professional Documents
Culture Documents
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Lessons to Learn
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Presented by
GROUP 7 SECTION-B
Himanshu Dhamija
UM15081
Saif Hasan Rizvi UM15105
Rahul Kumar Jena UM15101
Sibasis Mohapatra
UM15111
5 Varanasi Arjun UM15121
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1837
Estd.
$83.06bn
180
No. of countries
-Global
Organizational StructurePresence
over the
Revenue
years
Then
300
No. of
Brands
Now
GBUs grouped into 4 Industry Based
Sectors Industry-wise and geographic
focus
Results
Forced
Adaption
Decline in
Profit
Results
Wide Focus
Increased
revenue
TRENGTHS
PPORTUNITIES
W
T
EAKNESSES
Declining expenditure in
Innovation
Big product breakthrough fell
1 by
6%
14% decline in operating Income
Between 2011-2013
3 major organizational
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restructuring in 8 years
Low degree of Employee
2
empowerment
Net earning from core products
HREATSfell by 6%
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Restructures Marketing
Organisation as Brand
Management
3 major organisational
restructuring
Single point
responsibility for
strategies, plans &
results of brands
To simplify structure
To increase
employee
empowerment
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PROBABLE STRATEGIES
Product differentiation
Price positioning in economy range
Emerging
Taping rural market of emerging economies
Economies
Channel
2
Consumer price at starting point of innovation
Inclusive
Innovation
Economy
brands
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Strategic Approach
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Proactive
Defensive
Profensive
Type of approach:Adhocratic
Lean and mean so as to reduce costs and concentrate the resources on best selling
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brands
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Unilever
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Introduction- Unilever
1929
Estd.
Euro 53.3bn
Revenue
26
No.1 FMCG
brand country
wise
>400
No. of
Brands
Then
Jointly owned by two parent companies;
Unilever N.V. and Unilever PLC
Comprehensive restructuring of operations
and businesses
Focus on fewer, stronger brands to promote
faster growth. Acquisitions playing a big
role.
Profit Increased by 16%, Share price
recovered by 30%
Its Leading brands now accounted for 88%,
up from 75%.
Results
Forced
Adoption
Decline in
Profit
Results
Organisation
flexibility
Cross sectional
representation
LEGAL STRUCTURE
Strategic Groups
1
5
NV Share Holders
NV owned companies
DIRECTORS
NV
Home &
4Personal
Care
PLC
2
Food &
Beverages
Jointly owned
companies
Innovation &
Sustainability
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TRENGTHS
EAKNESSES
PPORTUNITIES
Large Domestic Market
Large Untapped Market
available
Changing Lifestyle and
Rising Income Levels
Export Potentialexpansionist Policies
Opportunity in Food
Sector
HREATS
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Strategies Followed
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5
Profitable
volume
Growth &
Scalability
Building
Brand Equity
in both rural
& urban
markets
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Cost
Leverage
+Efficiency
2
5
Path to
Growth
Innovation &
Marketing
Investment
4
8
Sustainability challenges
6
Strategic Approach
Recommended Strategies
Accelerate
Premiumisation for
developed markets
TYPE
Normative Re-educative
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1
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Improved dynamic in
pricing &
differentiation
strategies in
emerging markets
TYPLOLGY
Prospective-Operations
4 -Sustainability
Analyser
2
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APPROACH Adhocracy
Reduce usage of
fossil fuel in
operations
More focus on
Cause Marketing
CONTROL
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Implementation-Operations
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Premise- Sustainability
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2
+ HYBRID STRUCTURE
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+ Departmentalization
Product, geographic and Functional
+ Moving from Centralized to Decentralized structure
+ Moving from narrow span of control to wider span of control
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COMPARATIVE ANALYSIS
P&G
Over 50 brands
Vision of P&G is be, and be
recognized as, the best consumer
products and services company in
the world
P&G serves 650 million customers
in India directly through 1.3 million
outlets
P&G works on 5 specific
sustainable strategies i.e. Products,
Operations, Social Responsibility,
Employees and Stakeholders.
P&G doesnt have the strong supply
chain to reach out to all the
customers. In terms of emerging
market expansion, it suffers from
lack of brand coverage in economy
ranges where some of its rivals
have an edge.
HUL
Over 35 brands
Vision of HUL is primarily to
help people feel good and
develop new ways of doing
business that will allow it to
double its size while reducing
our environmental impact
It has robust supply chain and
distribution network covering
over 3400 distributors and 16
million outlets to reach out to
customers
HUL has Unilever Sustainable
Living Plan (USLP) that
comprises of 4 things i.e.
Winning with Brands &
Innovations, Winning in the
Marketplace, Winning through
Continuous Improvement and
Winning with People.
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RECOMMENDATIONS
Further decentralization of responsibilities to respond
flexibly to internal and external changes
Tannenbaum and Schmidt continuum-collaborative style of
leadership to continue growing
Motivate and engage employees to extract constructive
criticism and feed back for growth of Unilever
While organizational changes are not implementable
overnight, adaptation to newer technology is essential
Comparative advertising is there to stay. In real terms, it
must be used often as it makes it easy for consumers to
evaluate and chose the best among several available
options.
Increasing economies of Scale(Production Orientation)
Higher bottom lines which can be used in R&D( Think
globally, act locally) and M&A target Non Users and
New opportunities.
This leads to Blue Ocean Approach with High value low
cost
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CONCLUSION
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Thanks!
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