Managerial Economics Assessment 1 for Unilever's Dove Soap

Management Economics
Assessment 1

Contents
Contents...........................................................................................................................................2
INTRODUCTION...........................................................................................................................1
MAIN BODY..................................................................................................................................1
Business description....................................................................................................................1
Identification of demand and market equilibrium.......................................................................3
Indicating whether demand is more elastic or inelastic...............................................................5
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................9

INTRODUCTION
Managerial economics ensures solution of complex issues with analytical skills along with
future advanced planning (Li, Cao and Wang, 2021). It seeks establishment of principles and
regulations for facilitating achievement of desired managerial economic goals. It implicates
application of concepts of economics in issues to formulate decision making in rational manner.
For the assessment of managerial economics, considered business is Unilever which operates
within food and personal care market. Headquarters of the firm are located at London, UK.
Purpose of the establishment is to build sustainable living commonplace. Values of Unilever are
pioneering, integrity, responsibility and respect.
The assessment includes description of business and its major offerings. It also identifies
factors that influence demand of main products. At last, it describes how main product is affected
or price elasticity of demand.
MAIN BODY
Business description
Organisational history:
Unilever was formed in the year 1929 with merger of practices of Dutch Margarine Unie
along with British soapmaker Lever. In 1930, the organisation grew as well as new ventures
were introduced in market of Africa addition to Latin America. Further, the company acquired
various businesses and reinvested its capital into other countries. In 1945, Unilever began to
decline and operated on the basis of ‘Hands-off’ policy towards subsidiaries and left
management of America to own devices. With passage of time, the company attained success in
expanding its product line for detergents and soaps, ice cream, skin care and many more. Till
2000, Unilever merged with various established businesses and acquired huge manufacturers to
become popular entity. In 2010, the business entered in agreement for selling consumer tomato
commodities in cities of Brazil to Cargill and purchased a company that is maker of household
and personal care goods comprising VO5, Mrs. Dash, Simple, TRESemmé and hence forth for
US$3.7 billion. In 2014, the organisation started selling Western Dressing brands and Wish-
Bone to Pinnacle Foods Inc. In 2019, it acquired snack company that is Graze and reviewed its
organisational structure. Till the year 2021, the company works with approximate 155000
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employees. It has achieved net income of €6.073 billion, operating income of €8.303 billion and
revenues of €50.724 billion.
Products and services of company:
Unilever is second largest consumer processes products organisation across the world.
Figure 1: Products of Unilever. 2021
(Source: Products of Unilever. 2021)
From the presented graph, it is determined that Unilever has huge product line. It has
more than 400 brands spread across broad categories that are Skin & Hain Care, Refreshments,
Oral Care, Deodorants, Fabric Care, Foods and many more (Products of Unilever, 2021). Other
goods of the company are pet food, beverages, condiments, wellbeing vitamins, breakfast cereals
and hence forth.
Selection of a product:
Dove is one of product of Unilever that is selected which is skin & hair care product
introduced by the entity in 1957. It is most popular product series launched by the entity with
categories of body washes, facial care, antiperspirants, lotions/moisturisers, beauty bars and hair
care. Dove soap is main product of Unilever within the product line. Dove Soap is sold in
approximate 150 countries and offers commodities for women, men as well as babies. It is clear
market leader with nearby 24% share in the industry.
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