2018

UNILEVER, Adding Variety to Life

Atiq Ur Rehman Fareedi

14-ME-038
Section A

3/13/2018
 HITEC UNIVERSITY TAXILA

MECHANICAL ENGINEERING DEPARTMENT

Engineering Management

Assignment # 01

Submitted By:

Name Reg. No Section

Atiq-Ur-Rehman Fareedi 14-ME-038 A

Submitted To:

Sir Shahbaz Naqvi

Dated: 12th Mar, 2018

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Table of Contents
1) INTRODUCTION ..................................................................................................................................... 4
2) WHAT THEY DO ..................................................................................................................................... 5
I. Home and personal care ................................................................................................................... 5
II. Personal products ............................................................................................................................. 5
III. Spread and cooking products category ........................................................................................ 5
IV. Ice creams ..................................................................................................................................... 5
3) OBJECTIVES ........................................................................................................................................... 6
4) STRATEGIES ........................................................................................................................................... 6
a) Product Development ....................................................................................................................... 6
b) Corporate strategies ......................................................................................................................... 6
c) Human resource strategies ............................................................................................................... 6
d) Finance strategies ............................................................................................................................. 6
5) Management functions ......................................................................................................................... 7
a) Planning............................................................................................................................................. 7
b) Organizing ......................................................................................................................................... 7
c) Leading .............................................................................................................................................. 7
d) Controlling......................................................................................................................................... 7
6) SWOT ANALYSIS .................................................................................................................................... 8
a) Strengths ........................................................................................................................................... 8
b) Weaknesses ...................................................................................................................................... 8
c) Opportunities .................................................................................................................................... 8
d) Threats .............................................................................................................................................. 8
7) GLOBAL LEADERSHIP ............................................................................................................................. 8
8) UPL BOARD OF DIRECTORS ................................................................................................................... 8
9) Organizational chart.............................................................................................................................. 9
10) REFERENCES .......................................................................................................................................... 9

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 1) INTRODUCTION
Unilever is a multinational company that began with British-Soap Maker Company
named after Lever Brothers. Their revolutionary action in business was the introduction of Sun-
light soap in 1890’s. That idea was from William Hesketh Lever that helped Lever Brothers to
become the first company that popularize cleanliness in Victorian England. After this the
product rapidly emulated globally and made Lever Brothers to obtain more business
worldwide. One of the reasons of this success was the strategy from William that not only
prioritizes on selling the product but also focused on manufacturing that product. On the other
hand in 1872, Jurgens and Van den Bergh created a company that produces margarine. Since
there were many competitors in the margarine industry in Dutch, in 1920’s, Jurgen and Van de
Berth decided to strengthen their company by joining another margarine manufacturer in
Bohemia. In 1927, there were only three companies that include Jurgen and Van de Berth
Company which were transformed into Margarine Unie that was located in Holland.
In 1930, the Lever Bros. merged with the Margarine Unie and even though, although
this international merge was looking an unusual move at that time, but these two companies
have the same vision that by doing this merge will help to build strong global networks would
create new opportunities for them. Finally, the name of "Unilever" was suggested by the merge
of the two companies. Not too long after Unilever was formed, they got a big problem which
was that their raw material companies were reduced from 30% to 40% in the first year. As that
problem started to grow, Unilever had to react quickly in order to control that situation by
building up an efficient system of control. In September of 1930, Unilever established the
'Special Committee' that was designed to stabilize British and Dutch operate and concern as an
internal cabinet for the organization. In the 1930s, Unilever expanded their business when they
started to promote their products in America Latin. To keep it growing, Unilever adapted a new
strategy in 1940s by widening their business areas and create new areas such as particular food
and chemical manufactures.
The Unilever Pakistan Limited (UPL), which was formerly known by the name of Lever
Brothers Pakistan Limited, was established in Pakistan in 1948. A small town of Rahim Yar
Khan was selected for setting up a vegetable oil factory. Unilever Pakistan is the biggest and
largest fast-moving consumer goods (FMCG) company in Pakistan, it is also from one of largest
multinational companies operating in the Pakistan today. Now, UNILEVER has 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 1960s. Being a proud part of Pakistan’s history, Unilever is
contributing towards the growth and prosperity of our nation by providing services to over 150
million people with a better future, a better tomorrow. The passion of this company is to
understand the people’s desires and concerns, and ability to create, that fulfills those needs
and provides skills in getting those products to the market. Unilever is one of the world’s
leading suppliers of fast moving consumer goods across Food, Home and personal care
categories. Every day, more than 2.5 billion people use the products made by Unilever to look
good, to feel good and get more and more out of life. With more than 400 brands bought in 190
countries, this company has a unique opportunity to work with consumers to make sustainable

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living common place. Unilever Pakistan (70.4% Unilever equity) is the largest multinational
company operating in Pakistan.

2) WHAT THEY DO
At present they market a host of household products named under the following
brand names and product groups.

I. Home and personal care

• Soaps
• Laundry care products

II. Personal products

• Hair care products
• Skin care products
• Dental care products

III. Spread and cooking products category

• Cooking products
• Spreads
• Lipton brands
• Brook bond Brands

IV. Ice creams

• Walls
• Polka

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 3) OBJECTIVES
“Unilever aims to continuously improve the environmental performance of their
process and their brands to achieve sustainable profitable growth as their consumer expects
them to fulfill their needs with brands that have low environmental impact.”

• Honesty, transparency and ethical in dealings all the time.

• Win the hearts and minds of consumers.
• Deliver what they promise.
• Empowered leaders who are inspired by new challenges and have bias for action.
• Believe in trust, truth and outstanding teamwork. They value a creative and fun environment.
• Care about and actively contribute to the community in which they live.

4) STRATEGIES
a) Product Development
• Continuous working on improving product qualities and features to capture the market.
• Demand analysis to check whether the product is profitable or not, so that if the product is not,
it should be improved or discontinued.
• Keeping an eye on the competitor’s product in order to become market leader of the certain
product.

b) Corporate strategies
• Leader in the consumer goods market.
• Managing govt. relations to influence duties on imports of raw materials and countering
smuggling of competitor’s goods.

c) Human resource strategies

• Managing employee recruitment placement to put the right person for the right job.
• Replacement planning
• Employee rotation in the department.
• Employee training.
• Remuneration for salary adjustment of employees.

d) Finance strategies
• Maintain company finance operations within the resources.
• Maintain working capital keeping stock debtors low.
• Adhere strictly to the accounting practices and laws.

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 • Tax management to gain legitimate advantages lessening the burden.
• Ensure internal control through internal audit.
• Introduction to IT and implementation
• Ensure sales revenue meets the targets.
• Maintenance of purchasing function.

5) Management functions

a) Planning
In Unilever the most decision making and planning is through top level management
that links these plans to the marketing of products like advertisement through different modes
of electronic and print media.

The upper management consists of;

• Chairman
• President
• Board of directors

b) Organizing
In Unilever the organizing is more significant due to its large size and multinational
status. They organize the employs by handing over appropriate work related to their
capabilities and description.

c) Leading
Unilever leads their staff through marketing managers very well whose task is to
encourage and motivate the employees at the time of disappointments. He also tries to build
good relationship with them that enables him to lead them accurately.

d) Controlling
In Unilever manager tries to make sure that their workers are working according to the
tasks assigned to them rather involving in personal activities for financial benefits that could
harm their performance. So, the manager tries to estimate the results time to time in order to
make sure that the goals allotted to them were fulfilled or not. If there is any doubt he guides
the employees and takes actions according to the situations.

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6) SWOT ANALYSIS
a) Strengths
• Number of products
• Advance technology
• Financial backing
• Supply chain management
• Experienced top management

b) Weaknesses
• Tall organization structure
• High operating expenses
• High cost of production
• Long term strategies.

c) Opportunities
• Hygiene Consciousness
• Increasing populations
• Innovation
• Explore new markets

d) Threats
• Product smuggling
• Increase demand for antibacterial soaps
• Counterfeit products
• International trends
• Local competition

7) GLOBAL LEADERSHIP
• Paul Polman –Chief Executive Officer
• Greame Pitkethly –Chief Financial Officer
• DR. Margin Dekkers- Chairman Uni-lever N.V and PLC
• Nils Andersen –Non Executive Director
• Laura Cha - Non Executive Director
• Vittorio Colao - Non Executive Director
• Louise Fresco - Non Executive Director
• Ann Fudge - Non Executive Director
• Judith Hartmann - Non Executive Director

8) UPL BOARD OF DIRECTORS

• Shazia Syed – Chief Executive Officer

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 • Sohail Baig- Chief Financial Officer
• Amar Naseer-Legel Director and Company’s Secretary
• Amir paracha-Vice President Marketing Home and Personal Care
• Kamran Y.Mirza-Chairman Unilever Foods Limited
• Farheen Salman Amir-Director Foods and Refreshments
• Noman Amjad Lutfi-Supply Chain Director
• Zulfiqar H. Monnoo- Chairman Audit Committee
• Mian M. Adil Monnoo-Non-Executive Director
• Kamal Monnoo-Non Executive Director
• Badaruddin F. Vellani-Member Board of Director

9) Organizational chart

10) REFERENCES

1. https://www.unilever.pk/about/who-we-are/our-leadership/
2. https://www.slideshare.net/SizzlingPeridot/unilever-organizations-detail

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3. https://www.ukessays.com/essays/commerce/history-and-background-of-unilever-company-
commerce-essay
4. https://en.wikipedia.org/wiki/Unilever_Pakistan_Limited
5. https://www.unilever.pk

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