UNILEVER'S PATH TO GROWTH STRATEGY

Module: Strategic Business Analysis

Unilever's Path to Growth Strategy

Table of Contents

Introduction4

Background4

External Assessment4

Problems Appear5

Unilever Finance Conference, June 20008

Unilever Bestfoods - The Compelling Message, May-June 20018

Unilever Treasury Department - Living with Debt, April-May 20019

Unilever HR Academy July 20019

Background Note11

What "Path to Growth" Strategy Is All About16

Elements of Path to Growth strategy17

Organizational Restructuring.18

Brand Restructuring.19

Geographic Expansion23

Unilever Information Program.23

Supply Chain Restructuring24

Results of Path to growth strategy.25

Unilever's Future outlook27

SWOT Analysis31

Demographics33

Conclusion33

References35

Module: Strategic Business Analysis

Unilever's Path to Growth Strategy

Introduction

The case discusses the five-year long organizational restructuring program undertaken by the leading consumer goods company Unilever. It examines in detail the important elements of the restructuring program named the "Path to growth" strategy. The case focuses on the corporate strategy of Unilever and changes brought about with respect to organizational structure, brand restructurings, the acquisitions, operational processes, IT and supply chain management practices. Finally, it discusses the results of the restructuring program and examines the company's future prospects and reasons for the giant to embark on 2005-2010 strategy.

Background

External Assessment

Although Unilever's path to growth strategy involves all components of the general environment, two segments that are especially relevant are the global and sociocultural segments. A major strength of the company's global environment is its geographic diversification of its major product markets. In 2003, Unilever had sales and marketing efforts in 88 different countries. The key is that it gave decision-making power to its managersin different countries so that they could tailor their products to the market's specific preferences and consumers'local tastes. Thus, it was the cross country preferences of consumers that determined what products Unilever would carry. The global segment provides an enormous opportunity for Unilever. The case states that emerging country markets show the greatest potential for sales growth. Major competitors such as Procter and Gamble and Kraft Foods had sales in roughly 140 to 150 different countries in 2003, and Nestle, Unilever's main rival, had market penetration in almost every country in the world. If Unilever is able to expand it's operations into 50 or more new countries and concentrate its advertising campaign on consumer preferences, it could significantly improve its market sharein the global economy.

Another important piece of Unilever's general environment is the sociocultural segment. One of the company's values is the understanding and improving consumers'lives. A major strength of Unileverlies in its ability to anticipate consumer trends and demands and then cater to their needs. For example, market research indicated that nutrition was the number one concern in the United States, Germany and the United Kingdom, and that weight was the number three concern. The focus of peoples' attitudes became living healthier lifestyles. (Unilever's Path Goal Strategy - Is it Working Case Study 2003 Text)

Problems Appear

A couple of years ago it was unimaginable that Unilever would get into any trouble. Under the dual chairmanships of the Fitzgerald and Antony Burgmans, Unilever had completed what many saw as the final stage in a restructuring that had turned the group from a potpourri of brands into a fully functioning international food and consumer goods ...