Case Study on Unilever Plc Assignment
Added on 2021-02-19
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RESEARCH PROJECT Table of Contents
INTRODUCTION...........................................................................................................................3Background of the study..............................................................................................................3Company overview......................................................................................................................3Aim..............................................................................................................................................3Objectives....................................................................................................................................3Research Questions......................................................................................................................3Significance..................................................................................................................................4Rationale......................................................................................................................................4Literature Review.............................................................................................................................4Research Methodology ...................................................................................................................9Timeline.....................................................................................................................................12Data analysis and interpretation.....................................................................................................13Research outcomes ........................................................................................................................21REFLECTION & RECOMMENDATION...................................................................................22CONCLUSION..............................................................................................................................23REFERENCES..............................................................................................................................24
INTRODUCTIONBackground of the studyGlobalization refers to the process of integration and interaction among individuals,governments and firms worldwide. Due to globalization, there is an increase in growth ofinternational ideas, trade and culture (Rosenau, 2017). The present Report is based on UnileverPlc. The company offers products under the category of consumer items like food, beautyproducts etc. in approximately 190 countries. The Report has provided an insight to the impact ofglobalization on corporate structure of multinational firms and different types of challenges theyare facing. Company overview.Unilever Plc. is a type of public limited company. It belongs to consumer goods industry.It was founded in year 1929 by James Darcy Lever, William Lever and Samuel van den Bergh.Headquarter of Unilever is located at London, UK. It offers a wide range of products underdifferent categories like cleaning products, food and refreshments, beauty and personal care etc.Company is having operations in more than 190 countries (Christian and Poojara, 2019).Aim.“The impact of globalization on the corporate structures of large multinational companies andthe major challenges they face.” A study on Unilever PLC.Objectives.To study the concept of about globalization. To identify the impact of globalization on the corporate structures of Unilever Plc. To examine different challenges faced by Unilever Plc while globalize their corporatestructure in international market. Recommend different ways for overcoming challenges of globalization over corporatestructure of Unilever Plc. Research Questions.Do you understand the concept of globalization?What is the impact of globalization on the corporate structures of Unilever Plc?
What are the challenges faced by Unilever Plc while globalize their corporate structure ininternational market?What are the different ways for overcoming challenges of globalization over corporatestructure of Unilever Plc?Significance.The term rational means the quality of being important. The study helps to determinehow the corporate structure of large multinational firms like Unilever Plc. gets affected byglobalization. The researcher has chosen this topic as it also helps other scholars to conductresearch in similar area. The study also assist students that are studying in Universities to prepareproject report on subject related with globalization. It also helps other companies that areoperating in similar industry to gain knowledge about impact of globalization on structure offirm. Moreover, the study helps scholars and researchers to save resources like funds and timethat are involved in conducting fresh research in similar field.Rationale.The research is related with effect of globalization on corporate structure of Unilever andvarious challenges it is facing in globalizing their corporate structure. The study has thrown lighton term globalization, how it is affecting corporate structure of Unilever, Further, the study helpsto determine challenges faced by the firm while globalizing the corporate structure ininternational market and the ways that helps to overcome those challenges. Literature ReviewConcept about globalisation: In the view point of Baylis, Owens, and Smith (2017),globalisation refers to movementof goods and services across national borders and cultures. It helps in adequate allocation ofresources and has played a major role in improving the standard of living and quality of life inunder developed countries. Globalization also includes movement of people and ideas acrossdifferent cultures, government and economies. Furthermore, it has also brought advancedtechnology and work opportunities in these countries which has further boosted the economy ofthese nations and helped in balanced regional development. However, Beck, (2018), argues thatglobalization has further destroyed the job opportunities in developed countries mainly becausebig corporate house have started outsourcing their labour and production activities in developingcountries mainly because of cheap labour cost. Another major problem with globalisation
involves that it has created a domino effect on its trade partners. For instance, economicdepression in one country can have a cascading effect on its trade partners which has proved tobe dangerous and harmful for the world economy. The concept of globalization works entirelyon the basis of innovation and creativity and if any company wishes to succeed then it isimperative for them to invest in research and development operations as it would help inincreasing their sales and probability both locally and internationally. Also, globalization is notjust restricted to movement of goods and services it also includes financial, political, economic,sociological, technological and ecological globalisation. The Ghemawat and Jones, (2017) statedthat globalization benefits the rich more than it does to the poor mainly because of high tariffsand VAT which further makes it difficult for the middle class and lower middle class to indulgein export and import by themselves thus they need the support of rich people. Moreover, theglobalization has also had an adverse effect on the environment of different countries as it hasled to widespread use of plastics in various countries. It also has caused harmful effects on thehealth and lifestyle of human beings. Impact of globalisation on the corporate structures of Unilever PlcIn the view point of Kapor, (2018) a corporate structure consists of various departmentsthat contribute towards the organisation's goals and objectives. It includes various departmentslike human resource, marketing, finance, production and IT. The integration and coordinationbetween all these departments help the company in achieving their goals and objectivesefficiently and effectively. Every department has a head that guides and motivates its teamtowards completion of tasks within the concerned time period. Corporate structures are furtherdivided into functional, divisional, geographic and the matrix. The majority of the companieslike Unilever follow a hybrid organisational structure which is a combination of differentstrategies with single dominant business strategy. According to Ishaque and Fatima (2019) theglobalization has a had a huge impact on the corporate structure of multi national companies andhas help them in dominating the world business. Moreover, it has also led to change in corporatestructures mainly due to the geographical problems. Foster, (2019) investigated that, due toglobalisation many multinational companies shifted their headquarters to different countrieswhere there product has the highest demand and has a potential to grow exponentially. Also,various factors like cheap raw material, interest rate and labour are another reason that influencethe shift towards global market.Kapor, (2018) sought to analyse that multi national organisation
like Unilever have adopted a combination of geographical and functional corporate structurewhich means that the company hierarchy is divided on the basis of different locations thatbusiness operates in and is controlled by a centralized head office. The main reason behindgeographical structure is to analyse the needs of the local customers and to develop a productaccordingly. Also, it solves the problems related to logistics and the materials are allocated afterforecasting the demand whereas functional structure involves grouping of employees of sameskill and talent to increase the overall efficiency and effectiveness for achievement of goals andobjectives.Different challenges faced by Unilever Plc while globalizing the corporate structure ininternational market.According to Mihăilescu, (2015)there are some major challenges faced by companieswhile globalizing their corporate structure and the major problem involves cultural barrier. Itbecomes extremely difficult to survive and grow in a foreign country with different language,social and cultural behaviour. Also, there are various challenges related to identification of needsand wants of the customers without which the business would fail. In accordance with Steger,(2017)finding skilled and experienced workforce is also an issue while companies try to goglobal. For instance, Unilever company had to face various challenges related to findingpotential human resource in foreign country and as a result they had to outsource employeesfrom their country which became a very costly affair therefore it is imperative to have a detailedbackground study regarding the skills and knowledge of people before entering into the newmarket. Moreover, in some situations it becomes even difficult for the leaders to manage diverseworkforce, ensure their proper training and development and also to take care of the legal andpolitical aspects of the country.Dieter, and Dunham, ( 2016 )sought to analyse that the challengeof physical distance must not be ignored because it is a costly affair to transport logistics andservice as it requires huge shipping cost. Also, the local competition is a huge problem faced byinternational companies and it can hamper their smooth working. The Kapor, (2018) has statedthat There are various challenges which are faced by organizations while going global. One ofthe most severe problem which can be faced by companies while internationally expanding theirmarket is unfamiliar culture because people all over the world have different taste, preferences,attitude and culture which needs to be analysed by organization. In order to overcome from this
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