Unilever in Russia: Challenges and Recommendations for Global Business Expansion

Lucian Sebastian Costache
GLOBAL BUSINESS (REPORT)
UNILEVER IN RUSSIA
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Introduction
Definition of Global Business
When a company does the business worldwide and has foreign offices, distribution centers and
manufacturing ,which is related to international trade, it is called global business. A global business also can
be said as Globalization differently. Globalisation is a long-standing program advocated by the economically
advanced nations to free up international trade across the globe (Hakmaoui et al. 2017). If a worldwide
market is being set up in different countries becomes the multinational company. A global business
company operates in at least one country other than its originating country. (Carroll, 2015).
Background of the company
Unilever is a consumer packaged goods or consumer goods company, which may consist of personal care
products and food and beverages, co-headquartered in London and Rotterdam, established almost 90 years
ago. People from nearly 200 countries use Unilever products in their daily life basis. So, it can be said that
this is one of the oldest multinational companies worldwide. According to sources worldwide, their number
of employees was 169,000 in 2017. Established their foundation back in the 1870s. After the 2010s the
company products slowly closing their food and beverages products facing their slow revenue in business
and shifting their interest towards health and beauty related products and gradually increasing the production
of those products. Procter & Gamble and Nestlé are the most significant competitors of Unilever, also faces
competition in specific product ranges from various companies worldwide or in adjacent local markets
(unilever.com, 2018).
Problem statement
Unilever Company wants to grow in a business field, and thus they want to set up their business in Russia. I
am preparing this report to enter in a new international market as a marketing team executive and what type
of management and operational challenges they may face and how to overcome the problems they face in
international business and the actual meaning of global trade in international markets (Velean et al. 2014). In
this report step by step, we will be discussing the problems they face and trying to give some
recommendations what should they do and how can they plan their businesses to expand worldwide and do
the same things in future also.
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Analysis
Challenges in a managerial platform in the context of International business
While business persons strategies on economic, technological and barriers of socio-cultural, they able to
focus on few factors including rising cost, business ethics, security, capital markets and environmental
issues. Now, let's join in some discussion about them briefly.
Rising cost: Different countries have different problems of unstable currencies, economy or government. In
Unilever, the manager must plan for the uncertainties they can face depending on the changing the business'
price relationship. Also, the most percentage of cost depends on the changing prices of hard materials and
transportation.
Business ethics: To stop crime related to any business and rising of various anti-corruption campaign
internationally, an industry globally should ensure transparent company operations and applicable laws are
adequately confirmed.
Security: Unilever should ensure employees', who have to travel to various places, personal safety, which
consists of appropriate measures and careful planning.
Capital market: Every investment must imply appropriate contingencies which will be used to strengthen
the risk management.
Environmental concerns: Global warming is like a headache to the multinational companies throughout
the first and second decade 21st century. Nowadays ordinary people are very much concerned about the
corporation impact on the environment, which is a very crucial challenge, could be tackled by environmental
issues appropriately incorporated into plans and corporate strategies (Montgomery et al. 2014).
Challenges in an operational platform in the context of International business
As a business grows, various challenges are going with the business progress. Many companies were facing
issues and problems that they think managing are very difficult. Now when the issues are arising it is
essential to think about some solutions. While business persons strategies on economic, technological and
barriers of socio-cultural, they able to focus on few factors including Managing overheads, monitoring
performance, listen to feedback, responding to competition etc., Now, let's join in some discussion about
them briefly.
Managing overheads: Mount up of costs can be done quickly, whether they are coming in the form of
insurance, admin expenses, utility charges or rent. Excessive overheads are damaging mainly if cannot be
managed in time, so they are a big problem to a small business.
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