Unilever: The Biggest Transnational Company in the UK

The biggest
transnational company
in the UK

Overview of the business.................................................................................................................1
Changes in strategies and operations from 2016 to 2020................................................................1
Five year macroeconomic data comparison....................................................................................4
Evaluation of business performance and activities over the five years...........................................7
REFERENCES..............................................................................................................................10

Overview of the business
Unilever is one of the leading international consumer goods companies established in 1929
and headquartered in the United Kingdom. It deals with the products and services related to
nutrition and hygiene along with the personal care brands which helps people to feel good and
look good and get more out of life. This includes the food and condiments along with ice creams
and well being vitamins which is followed by the minerals and supplements and many more.
Market share of Unilever in over 60% of the business in the last quarter based on the measurable
markets. Operating profit generated is 9.4 billion Euros and free cash flow is 7.7 billion Euros.
Now it has an increment of 1.5 billion Euros. The initiation of the company was the merger
between the margarine producer and a soap maker. Today it boasts over 400 brands. Some of the
most prominent brands of Unilever are the Knorr and dove along with the Axe and Lipton. In
2019 Unilever was listed as the fourth largest FMCG Company worldwide in terms of sales
(Habep, 2021).
Changes in strategies and operations from 2016 to 2020
2016 2017 2018 2019 2020
Goals and
objectives
To help one billion
people improve their
health and wellbeing
To improve
the
livelihoods of
hundreds of
thousands of
people in the
supply chain
To halve the
environmental
footprint of
the group’s
products
To add
vitality to life.
To meet
everyday
needs for
nutrition,
hygiene and
personal care
with brands
that help
people feel
good, look
good and get
more out of
life
To focus on developing
products that stand out
from the competition
and attract customers
Finance It focuses on the
alignment of
financial
It create a
cash flow
plan,
It creates a
smart
investment
It uses
dividend
strategy to
It uses Capital structure
strategy to know how
business funds are
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management with
the corporate and
business objectives
of an organisation to
gain strategic
advantage
businesses
must assess
their assets,
income and
expenditure
plan is key to
financial
safety for
businesses
decide the
proportion of
profits given
to
shareholders
as dividends
structured within a
company, in particular
how debt and equity
are balanced (Tian,
2021).
Human
resources
Unilever has
implemented
innovative ways to
ensure high
employee
motivation and
ensure that their best
assets will remain in
the company. By
tracking employees'
motivation, carrying
out surveys or
employees'
interview
It has
improved an
organizations
overall
performance
and efficiency
by improving
the members
(individuals
and groups)
performances,
commitment,
and
flexibility.
It provided
security to
employees.
Selective
hiring: Hiring
the right
people. Self-
managed and
effective
teams. Fair
and
performance-
based
compensation.
Training in
relevant skills
Creating a flat
and
egalitarian
organization.
Making
information
easily
accessible to
those who
need it
External labour
orientations are
combined to develop
the four different HR
strategies, which
include Loyal Soldier
(cost
leadership/internal
labour), Bargain
Labourer (cost
leadership/external
labour), Free Agent
(differentiation/external
labour) and Committed
Expert
(differentiation/internal
labour).
Production
and
operations
Unilever's Intensive
Strategies (Intensive
Growth
Strategies) Market
Penetration (Primary
Strategy).
Unilever
applies
market
penetration as
its primary
intensive
growth
strategy
It uses
intensive
strategy, the
company
increases its
sales volume
to improve
revenues and
corresponding
business
growth
Retailers are
the primary
places of
distribution
for Unilever's
products.
Unilever
occasionally
uses kiosks to
introduce
products
Unilever uses broad
differentiation as its
generic strategy for
competitive advantage.
The main focus of this
generic strategy is its
emphasis on features or
characteristics that
make the company's
products stand out
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