Megatrends, Brexit and Impact on Unilever

This report analyzes the impact of megatrends and Brexit on Unilever, including their response and operations management theories. It also discusses the product safety and quality of Unilever and their exit from London.

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Contents
Executive Summary.....................................................................................................................................3
Megatrends and Unilever Response............................................................................................................3
Unilever- Profile...........................................................................................................................................4
Brexit...........................................................................................................................................................4
Analyzing Unilever response through Operations Management Theories..................................................5
Product Safety and Quality..........................................................................................................................6
Unilever exit from the London.....................................................................................................................6
Spectacular symbolism................................................................................................................................7
Hostility to the Business..............................................................................................................................7
Impact of Brexit...........................................................................................................................................7
Impact of Brexit over Unilever.....................................................................................................................8
Critical appraisal of what Unilever have done and application of theories.................................................8
Conclusion and Recommendations.............................................................................................................9
References...................................................................................................................................................9
Appendices................................................................................................................................................10

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MEGA TRENDS, BREXIT AND IMPACT ON UNILEVER

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Executive Summary
The megatrends are considered the geostrategic and the macroeconomic powers that can change the
world. The megatrends rely upon the genuine information and usually bolstered by the unquestionable
information. When all is said in done, the megatrends coordinate the greatest difficulties and chances of
the general public. (Modly, 2016)The megatrends are a critical wave that can impact the eventual fate of
the general public and recognizing the impact of megatrend can bear positive results. Be that as it may,
as a representative it is critical to recognize the effect of megatrends as it will help on giving direction so
as to settle on a fruitful choice. In With respect to the current scenario, there are different megatrends
globally that affects the operating activities of multiple the organizations. Some of these megatrends
have been discussed here-in- below:
(a) These include the Change in Climate conditions- The said megatrend results in climatic changes
(resources scarcity, environmental degradation etc.);
(b) , Iinternational trade agreements and political shifts: These events encompasses (TTIP, Brexit, and
the Paris agreement) ;
(c) and the Ddigitalization: These include latest technologies and revolutionizing of business including
b(block-chain, advanced analytics, AIArtificial Intelligence, Aautomation etc).
These are some of the megatrends which impact the business and economy pan globe. The report
deals with one of the upcoming megatrend which shall impact the business of economies. The event
is There is another exit of Unilever from about to happen in the United States of Kingdom – Unilever.
One of the most historic and the biggest companies that have a strong influence over the London

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stock market proposed the idea that they are moving their headquarters from London to the
Rotterdam. The Unilever was serving as a 150-year old organization with the Britain. (Johnathon
Marshall, 2017)The most popular brands of the Unilever are Dove, Marmite having €140 consumer
products. This report highlights the megatrends, operations and processes of Unilever, and how
Unilever has implemented various concepts and approaches with respect to the megatrends (Brexit).
Megatrends and Unilever Response
The megatrends are considered the geostrategic and the macroeconomic forces that have the ability to
transform the world. The megatrends depends on the factual data and it is often supported by the
verifiable data. In general, the megatrends integrates the biggest challenges and opportunities of the
society. The megatrends is a significant wave that has the ability to influence the future of the society.
However, as a business person it is important to identify the impact of megatrends as it will help on
providing guidance in order to make a successful decision. There are three types of concepts that are
inter-linked with the megatrends. The details of the concept has been detailed here-in-below: these
include
 Transforms
 Transcends
 Traverses
There are a number of factors involved with the concept of megatrends including the technological,
demographic, and versible versatile changes. However, in the past few years, it has been observed that
the clients inof private and the public sector are considering the megatrends. It is due to the reason that
this way, the individuals can get a better chance and to refine their strategies with respect to the
changing trends. (Modly, 2016) The employees who consider the potential factors of megatrends are
committed to ensure that the short-term and long-term performance that helps in accomplishing the
business goals and objectives. However, it is important to note shall be worth noting that the
megatrends’ global implications are not restricted towards the commercial interactions and enterprises.
Instead, the megatrends have disruptive and the profound effects on the security and defense
environments where it is necessary that the enterprises, nations and the customers should operate. In
addition, the megatrends require accountable and agile approaches in order to mitigate the risk.
(Anthony, 2014)For many organizations and countries, being able to adapt and anticipate the
megatrends will be considered the essential element for the purpose of national survival. With respect
to the current scenario, there are different megatrends globally that affects the operating activities of
the organizations. These include the climatic changes (resource scarcity, environmental degradation),
international trade agreements and political shifts (TTIP, Brexit, and the Paris agreement) and the
digitalization (block-chain, advanced analytics, AI, automation).
Unilever- Profile
The Unilever is a British organization that offers wide range ofdifferent products ranging from including
household itemsthings to personal use items. Unilever is headquartered in The headquarters of the
Unilever is situated in the London, UK and the Rotterdam, Netherlands. The Unilever company offers a
wide arraybroad assortment of productsthings iencompassingncluding the individual considerations and
usable items things and cleaning products. The Unilever haswas transformed into the world's greatest
organization in the year 2012 partnership for the purpose of income. However, with respect to the

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opposite scenario, the Europe was seen as the significant and considerable market of organizations.
Moreover, the Unilever is articulated as a standout amongst the most prepared overall affiliations that
offers their services and products to the organizations in 190 extraordinary states. (Unilever, 2018)In
addition, the company has more than There are around 400 brands of the affiliatetion level organization
while havingwith the turnover rate of 50 3.7 billion Euros in the year 2017 The said figures are quite
alluring and show the size of the company. It is moreover fundamental to observe that their 13
extraordinary brands with arrangements more than 1 billion euros of the affiliation level organization.
The best most brands of the unit of an association consolidatesencompasses the following
(a) the Knorr;
(b) , Magnum;
(c) , Sunsilk;
(d) , Ssurf;,
(e) Rexona degree;
(f) , Lux;
(g) , Lipton;
(h) , Hellmann's;
(i) , Omo;
(j) , Ax/lynx;
(k) , and Dove.

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Brexit
The term ‘Brexit’ is an abbreviation of term ‘British Exit’ that highlights the decision of UK’s decision
which was made in June, 2016 referendum to leave the European Union (EU) on account of multiple
reasons including immigration and job creation for localites. Brexit alludes to a choice which was
conveyed on June 23, 2016. As indicated by this submission, England voted in favor of ato leave from the
European associationUnion consisting of 28 Countries. This choice was conveyed by the decisionthrough
moderatea moderate gathering. Beforehand in 1973, the assembled kingdom was made a piece of the
European association which was then known as the European financial network. It was a definition of 28
nations which was represented by the mainland parliament, commission and gathering. It was spoken to
by an individual from each state and utilized euro as their normal money mode. (Wheeler, 2018)
Being an individual from the European organization, the natives of every part nation had free access to
move to the outskirts of any part state with the purpose to study, work, and live. In such cases, they
were not presented to any major lawful ramifications or conventions when contrasted with the
residents of non-part states. At the point when the vote in favor of Brexit was checked, the vote in favor
of leaving the European association was concluded by an aggregate of 52%. Nonetheless, there are as
yet isolated feelings about the finish of Brexit given the way that the left of UK from the European
association will affect certain enterprises of UK and also that of the collaborating organizations. Brexit
has built up some indefinable course on the economy of the assembled kingdom. (Eagle, 2017)The
majority of the market analysts are foreseeing that arrangements and agreements will turn down the
bargain of Brexit. This interprets the necessities and wishes of a larger part of understudies, both locally
and globally, as they could without much of a stretch keep on pursuing their scholastic exposures
outside their remote limits. The transactions could likewise feature the impacts that will be alleviated by
keeping the deficiency of educators and understudies, in charge of acquiring an immense measure of
income of UK. Be that as it may, if Brexit is at last followed up on, the countries are presented to

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abnormal state vulnerabilities doubts. (Gunn, 2015)The deficiency that is normal won't be effectively
settled and the colleges should experience an intense emergency. This is relied upon to support the
present educators for raising their requests for enhancing their compensation scale and money related
advantages, regardless of whether their scholastics and capabilities foresee something else.

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Analyzing Unilever response through Operations
Management Theories
Unilever is evidently the best organisationassociation of the world, built up in England by William
Hesketh Lever. It has developed certain corporate goals and ensures that the methodology and
exercises of the firm stick to those. These goals fuse a sentiment of heading, decency, and balance. The
objectives plan to ensure that it develops the most vital models through effective corporate lead. This
can make a beneficial outcome on the systems and condition. Unilever has centered to spread the
estimations of respect and uprightness for the all-inclusive community, affiliations and likewise the
circumstances it is serving and this has been joined as the inside segment of the exercises and
methodology that company carries out. (Anon., 2018)The core of the corporate objective and
philosophies of Unilever lies in beginning a beneficial outcome all around. Perhaps it is through
checking, associations, business undertakings, responsibilities or Corporate Social Responsibility and ,
the essential concentration to achieve is the selection of motivation in nature. Consequently, Unilever is
reliably putting resources into its characteristics with the objective that the business could proceed in a
long run and keep up the models from the earliest starting point for its biological protection wants.
The Unilever Corporation is a twofold recorded affiliation and is included Unilever PLC which is
fundamentally stationedarranged in London, United Kingdom. On the contrary other side, the Unilever

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NV is organized in the Rotterdam. These two companies are treating and participating as a single
business having the essential administering body. There are four guideline divisions of the Unilever
affiliation. These four divisions are assigned sustenance, refreshment, singular thought, and home
thought. Besides, the Unilever gives the enhancement and research workplaces in the United States of
kingdom, the United States of America, India, China, and Netherlands.
The association culture of the Unilever centers on the essentialness of the execution of the worker. The
corporate culture of the Unilever additionally features the elements and the components that are
required so as to decide the required yield of the association as for its systems and procedures.
Following are the attributes of the authoritative culture of the Unilever. (Boland, 2018) Considering
towards the quality that it integrates each of the elements that helps in keeping up the yield of the
particular methods and procedures of the company, considering the execution of the processes of the
organization that combines the elements of the individual and the hierarchical execution and
effectiveness – it is capable to guarantee the productive work conveyance by ensuring the effective
utilization of the resources.
Product Safety and Quality
Unilever with its wide range of products never compromise on its quality spectrum. The product stands
the test of law of various countries and meet the specifications. The products are made in accordance
dealing with middle to upper class ranging from FMCG to luxury. The company also continuously focuses
on quality and rapid innovation to be competitive and functionally active in the dynamic market.
In addition, all 140 products and refreshments offered by the company are certified by Food Safety
System Certification Scheme FSSCS 2000, a Global Safety Initiative.
Unilever exit from the London
There is another exit about to happen in the United States of Kingdom – Unilever. One of the most
historic and the biggest companies that have a strong influence over the London stock market proposed
the idea that they are moving their headquarters from London to the Rotterdam. The Unilever was
serving as a 150-year old organization with the Britain. The most popular brands of the Unilever are
Dove, Marmite having €140 consumer products. The Unilever is not abandoning the United States of
Kingdom; however, it will carry on employing maximum number of people there. On the other side, at
the end of the October, if the shareholder approves the shift in a vote then the Unilever will no longer
be ‘the Anglo Dutch’ and it will become only a Dutch. (Wheeler, 2018)
As per the statement given by the Paul Polman, the chief executive of the Unilever, implementing the
approach of shift w ill simplifies the structure of the company. The two Unilever’s (NV and the PLC) will
then be combined into one Unilever NV. In addition, the Unilever will then be governed by the Dutch
instead of implementing the rules of the UK. This way, the Unilever will get a better chance to
strengthen its defense against the hostile takeover considering the last year’s attempt which was made
by the Kraft-Heinz. (niv, 2017)

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The plan of the Unilever has infuriated some of the major PLC investors that are based in London. The
main objection of the investors highlights the factor that in case, the Unilever has moved their domicile
to the Netherlands from UK, then the shares of Unilever will be dropped out of the Ftse 100 index. In
this case, some of the restrictions will be implied on the investors that may be required to sell their
assets and holdings.
However, the said decision has finally been called off on account of the uproar among the stakeholders
of the company. The news was accepted very positively by the market as it is evident from the stock
prices which saw an uptrend on account of the changes.
Spectacular symbolism
The concept of the ‘forced selling’ is considered the only allegation of the Unilever as it will create
disputes between the shareholders and chief executives that the Mr. Polman can lose. It is due to the
reason the Unilever needs support from at least 75 percent owners of the shares of the Unilever PLC.
The approach of shifting to Rotterdam forrom Unilever would be considered the accounting exercise
related to the concept of spectacular symbolism.
The plan of the Mr. Polman has a major affect over the Brexit. Mr. Polman has insisted the move of the
Unilever ‘has nothing to do with the Brexit’. This statement is true with respect to the technical
perspective but it has raised two major questions;
1. After the Brexit, the city can continue to have its Marmite and eat it?
2. The same approach will be followed by the other companies?
The Jaguart Land Rover is owned by the Tata Motors of the India same as Marmite is owned by British
provided the opportunity that the industry of the automotive has attempted to send the distress signals
to the government of the UK related to the hard Brexit dangers. These companies have not threatened
directly to shut down their companies, but the impact is just severe as it includes the prospect to make
the further investment in the Britain that will be reduced once it leaves the European Union. (Team,
2016)
Hostility to the Business
This message of Unilever leaving the UK is not overcoming. Or then again rather, it is overcoming, yet
Brexit Britain declines to hear it. Brexit has made a bizarre marvel in British legislative issues: open
threatening vibe toward business and to the City in the positions of the Tories, when the normal party of
British private enterprise. The profundity of this enemy of business threatening vibe is coordinated by
the roughness of its demeanor. At the point when Boris Johnson, the previous outside secretary, was
gotten some information about the effect of Brexit on business, he apparently answered: "F***
business". Dominic Raab, the Brexit secretary, blamed British business pioneers a week ago for utilizing
Brexit as a "pardon" for their own failings. How did this situation emerge? One reason is that London's
antiquated systems, fixated on the City-treasury-Bank of England nexus, are not capable of squeezing
the money related industry's case in the midst of the sound and anger of Brexit. (neela.bettridge,
2011)Another is that Brexit is remarkably a political demonstration, to be sought after paying little heed
to cost. There has dependably been a dash of EU-fear in the City. This was apparent in the years paving
the way to the presentation of the euro, which turned into a detest image on London exchanging floors
as the universe of monetary forms to be exchanged shrank. Presently another EU danger looms. Given

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its immense achieve, London won't actually be dislodged as Europe's budgetary capital, and the world's.
However, as Unilever and Deutsche Bank appear, that status isn't ensured in this time of moveable
resources, speculations and home office.
Impact of Brexit
The exit of UK from the European Union of 28 countries shall likely to impact the global market scenario
in the following manner:
(a) Impact on Foreign Currencies as UK currency i.e. Sterling shall depreciate rapidly against the other
currencies;
(b) Impact on European currency as it shall also depreciate rapidly against the foreign currency;
(c) Instability in Political Space in Europe and United Kingdom;
(d) Immigration of Labour in United Kingdom;
(e) Stock Market shall fall on account of such exit leading to huge losses for investors and promoters;
(f) Gross Domestic Product of economies shall fall;
(g) Strength of European Union shall reduce as one of the major contributor shall move out;
(h) Chances of destabilization of European Union;
(i) Purchasing Power and consumption power shall fall;
(j) Unemployment;
(k) Change in reporting of account by companies etc.
These are some of the impacts of Brexit and one cannot actually gauge the impact unless the events
crystalized. The actual harm to the economy may even be higher on account of the megatrend and
many companies and economies might feel the burnt of the same.

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Impact of Brexit over Unilever
It is expected that there will be strong impact over the Unilever with respect to the Brexit considering
both the short and long-term impacts. However, the results of the negotiations of the Unilever’s shift
approach are not clear. It is said that the economic balances are prevailing the markets, companies and
the countries are likely to continue. The organization Unilever is operating in more than 130 countries
and the majority of their products are locally manufactured. But it is important to consider that the
Unilever has taken pains in the past few years that help in localizing and to manufacture the facilities in
order to reduce the costs of the transportation against the fluctuations of the currency. (Anon.,
2017)With respect to the trade agreement of United States of Kingdom with the European Union will
have a strong impact on the Unilever.
Further, as reported by Forbes that the impact of such exit shall largely be prevalent in the long run.
Further, the exit shall likely to impact the currencies of UK and Europe against the dollar. The same may
hit the sales of the company in the long run.

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Further, the Brexit shall likely reduce the movement of labor which is likely to impact the company even
though the impact may not be such large as majority of hired personnel are in UK at the present
headquarters.
Also the political shift around Europe and UK post Brexit is likely to impact the flow of business on
account of change in political streamlining and ideologies which shall impact the company in the long
run.
Further, the slow growth of market post Brexit shall impact the sales of the company and enforce the
company to look for alternative market to expand its operation and business as UK and Europe might
not be as lucrative on account of lower growth of economy and tension and troubles.
In addition, the company might see a fall in the prices of its stock which shall wipe out the wealth of the
company in the short run. However, the long run impact shall not be so worsening on account of strong
fundamentals of the company.
In short, the impact of Brexit shall be upon all the companies whether stationed in UK or in Europe.
However, the depth of the impact shall largely be driven by the market of those company. If the
companies have largely settles themselves to Europe than it is likely to be strongly hit by such exit and
the same shall be apparently visible in the financial statement of the company. However, for giant
companies like Unilever that marks its presence in every second country shall not be so alarming .
Critical appraisal of what Unilever have done and
application of theories
The Brexit has introduced uncertainty into the supply chain procedures of the Unilever and it has been
expected that there will be a strong impact over the operations of the Unilever with respect to Brexit.
According to the procedures and operations of the United Kingdom, the manufacturing and the sourcing
supply chain parts are considered the largest volatile factors that are following the decisions of Brexit.
Sourcing: it is the sharp rise in the input cost that has a fast impact over the profitability of the Unilever
products. With respect to the net commodity importer of the United States of Kingdom, increasing the
input costs of oil and wheat in the GBP terms can pressurize the Unilever product costs, for instance, the
Marmite. After the occurrence of Brexit, the Unilever will raise the costs on some of the products in the
United Sates of Kingdom considering the PG and the Marmite tips by 10%. (Johnathon Marshall,
2017)This approach will trigger the widely conflict of the largest supermarket of the Britain, however,
the TESCO has refused to pay the higher cost.
Manufacturing: it has been said that the some sort of tough competition will be faced by the Unilever in
order to localize their manufacturing procedures. With respect to its global footprint, the Unilever has
diversified their operations of manufacturing and it has tried to convert their production locally.
According to the latest published report, the Unilever is operating the 69 countries and 306 factories but
when it is compared to the overall footprint in the 190 countries, there is clear difference between the
cost footprint and the footprint. However, according to the European procedures and operation, over
the past four decades, there is a lack of trade barriers have globalized the supply chain within the
Europe. The management of the Unilever has to suffer the key decisions that will allow them to make
the future growth investments and particularly the decision of shifting headquarters.

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Conclusion and Recommendations
It is expected that there will be strong impact over the Unilever with respect to the Brexit considering
both the short and long-term impacts. However, the results of the negotiations of the Unilever’s shift
approach are not clear. The Brexit has introduced uncertainty into the supply chain procedures of the
Unilever and it has been expected that there will be a strong impact over the operations of the Unilever
with respect to Brexit. According to the procedures and operations of the United Kingdom, the
manufacturing and the sourcing supply chain parts are considered the largest volatile factors that are
following the decisions of Brexit. It is important for the Unilever to transform their operations with
respect to the latest changes of the megatrends as this way; they will get a better chance to maintain
their market value.
References
1. Anon., 2017. The Consumer Lifestyle ‘Megatrends’ Every Marketer Should Know, s.l.: s.n.
2. Anon., 2018. [Online]
Available at: https://www.bloomberg.com/research/stocks/private/snapshot.asp?
privcapid=5478756
[Accessed December 2018].
3. Anthony, D., 2014. Unilever: Through the sustainability lens – leading people, s.l.: s.n.
4. Boland, V., 2018. Unilever’s exit from London is loaded with Brexit symbolism, s.l.: s.n.
5. Eagle, J., 2017. Euromonitor: 20 most influential megatrends to shape the world by 2030, s.l.: s.n.
6. Gunn, M., 2015. The 5 Hottest Supply Chain Megatrends Right Now, s.l.: s.n.
7. Johnathon Marshall, M. D., 2017. Supply Chain: Your Brexit Competitive Advantage, s.l.: s.n.
8. Modly, T., 2016. Five Megatrends, s.l.: s.n.
9. neela.bettridge, 2011. Sustainability: Megatrend? Mega-opportunity for HR, s.l.: s.n.
10. niv, 2017. Unilever and Brexit: How isolationist political movements impact supply chain
decisions, s.l.: s.n.
11. Team, T., 2016. How Might The Brexit Impact Unilever?, s.l.: s.n.
12. Unilever, 2018. UNILEVER’S Supply Chain, s.l.: s.n.
13. Wheeler, A. H. &. B., 2018. Brexit: All you need to know about the UK leaving the EU, s.l.: BBC
News.
14. Wheeler, A. H. &. B., 2018. Brexit: All you need to know about the UK leaving the EU, s.l.: s.n.

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Appendices
Figure 1 Supply chain procedures of Unilever (Johnathon Marshall, 2017)
Figure 2 Unilever's Supply Chain Strategy (Unilever, 2018)