Research Report: Globalization's Impact on Unilever's Structure

This research project investigates the effects of globalization on the corporate structure of Unilever PLC, a major multinational consumer goods company. The report begins with an introduction outlining the background of the study, company overview, aims, objectives, research questions, and significance. A comprehensive literature review explores the concept of globalization, its impact on corporate structures, and challenges faced by companies like Unilever. The research methodology is detailed, followed by a timeline, data analysis, and interpretation of findings. The study identifies key challenges, such as cultural barriers, workforce issues, and physical distance, while also suggesting strategies for overcoming these obstacles. The report concludes with recommendations, a reflection, and a conclusion summarizing the key insights. The study emphasizes the importance of market research, understanding consumer behavior, and adapting corporate strategies to succeed in the global market.

RESEARCH PROJECT
Table of Contents

INTRODUCTION...........................................................................................................................3
Background of the study..............................................................................................................3
Company overview......................................................................................................................3
Aim..............................................................................................................................................3
Objectives....................................................................................................................................3
Research Questions......................................................................................................................3
Significance..................................................................................................................................4
Rationale......................................................................................................................................4
Literature Review.............................................................................................................................4
Research Methodology ...................................................................................................................9
Timeline.....................................................................................................................................12
Data analysis and interpretation.....................................................................................................13
Research outcomes ........................................................................................................................21
REFLECTION & RECOMMENDATION...................................................................................22
CONCLUSION..............................................................................................................................23
REFERENCES..............................................................................................................................24

INTRODUCTION
Background of the study.
Globalization refers to the process of integration and interaction among individuals,
governments and firms worldwide. Due to globalization, there is an increase in growth of
international ideas, trade and culture (Beck, 2018). The present Report is based on Unilever Plc.
The company offers products under the category of consumer items like food, beauty products
etc. in approximately 190 countries. The Report has provided an insight to the impact of
globalization on corporate structure of multinational firms and different types of challenges they
are 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 under
different categories like cleaning products, food and refreshments, beauty and personal care etc.
Company is having operations in more than 190 countries.
Aim.
“The impact of globalization on the corporate structures of large multinational companies and
the 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 corporate
structure in international market.
 Recommend different ways for overcoming challenges of globalization over corporate
structure 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 in
international market?
 What are the different ways for overcoming challenges of globalization over corporate
structure of Unilever Plc?
Significance.
The term rational means the quality of being important. The study helps to determine
how the corporate structure of large multinational firms like Unilever Plc. gets affected by
globalization. The researcher has chosen this topic as it also helps other scholars to conduct
research in similar area. The study also assist students that are studying in Universities to prepare
project report on subject related with globalization. It also helps other companies that are
operating in similar industry to gain knowledge about impact of globalization on structure of
firm. Moreover, the study helps scholars and researchers to save resources like funds and time
that are involved in conducting fresh research in similar field.
Rationale.
The research is related with effect of globalization on corporate structure of Unilever and
various challenges it is facing in globalizing their corporate structure. The study has thrown light
on term globalization, how it is affecting corporate structure of Unilever, Further, the study helps
to determine challenges faced by the firm while globalizing the corporate structure in
international market and the ways that helps to overcome those challenges.
Literature Review
Concept about globalisation:
In the view point of Fjäder, (2014), globalisation refers to movement of goods and
services across national borders and cultures. It helps in adequate allocation of resources and has
played a major role in improving the standard of living and quality of life in under developed
countries. Globalization also includes movement of people and ideas across different cultures,
government and economies. Furthermore, it has also brought advanced technology and work
opportunities in these countries which has further boosted the economy of these nations and
helped in balanced regional development. However, Manyika and et.al., (2017), argues that
globalization has further destroyed the job opportunities in developed countries mainly because
big corporate house have started outsourcing their labour and production activities in developing

countries 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, economic
depression in one country can have a cascading effect on its trade partners which has proved to
be dangerous and harmful for the world economy. The concept of globalization works entirely
on the basis of innovation and creativity and if any company wishes to succeed then it is
imperative for them to invest in research and development operations as it would help in
increasing their sales and probability both locally and internationally. Also, globalization is not
just restricted to movement of goods and services it also includes financial, political, economic,
sociological, technological and ecological globalisation. The Ghemawat and Jones, (2017) stated
that globalization benefits the rich more than it does to the poor mainly because of high tariffs
and VAT which further makes it difficult for the middle class and lower middle class to indulge
in export and import by themselves thus they need the support of rich people. Moreover, the
globalization has also had an adverse effect on the environment of different countries as it has
led to widespread use of plastics in various countries. It also has caused harmful effects on the
health and lifestyle of human beings.
Impact of globalisation on the corporate structures of Unilever Plc
In the view point of Gutierrez and et.al., (2015) a corporate structure consists of various
departments that contribute towards the organisation's goals and objectives. It includes various
departments like human resource, marketing, finance, production and IT. The integration and
coordination between all these departments help the company in achieving their goals and
objectives efficiently and effectively. Every department has a head that guides and motivates its
team towards completion of tasks within the concerned time period. Corporate structures are
further divided into functional, divisional, geographic and the matrix. The majority of the
companies like Unilever follow a hybrid organisational structure which is a combination of
different strategies with single dominant business strategy. According to Ishaque and Fatima
(2019) the globalization has a had a huge impact on the corporate structure of multi national
companies and has help them in dominating the world business. Moreover, it has also led to
change in corporate structures mainly due to the geographical problems. Foster, (2019)
investigated that, due to globalisation many multinational companies shifted their headquarters to
different countries where 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 influence the shift towards global market. Kapor, (2018) sought to analyse that multi
national organisation like Unilever have adopted a combination of geographical and functional
corporate structure which means that the company hierarchy is divided on the basis of different
locations that business operates in and is controlled by a centralized head office. The main reason
behind geographical structure is to analyse the needs of the local customers and to develop a
product accordingly. Also, it solves the problems related to logistics and the materials are
allocated after forecasting the demand whereas functional structure involves grouping of
employees of same skill and talent to increase the overall efficiency and effectiveness for
achievement of goals and objectives.
Different challenges faced by Unilever Plc while globalizing the corporate structure in
international market.
According to Mihăilescu, (2015) there are some major challenges faced by companies
while globalizing their corporate structure and the major problem involves cultural barrier. It
becomes 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 needs
and 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 go
global. For instance, Unilever company had to face various challenges related to finding
potential human resource in foreign country and as a result they had to outsource employees
from their country which became a very costly affair therefore it is imperative to have a detailed
background study regarding the skills and knowledge of people before entering into the new
market. Moreover, in some situations it becomes even difficult for the leaders to manage diverse
workforce, ensure their proper training and development and also to take care of the legal and
political aspects of the country.Dieter, and Dunham, ( 2016 )sought to analyse that the challenge
of physical distance must not be ignored because it is a costly affair to transport logistics and
service as it requires huge shipping cost. Also, the local competition is a huge problem faced by
international companies and it can hamper their smooth working. The Kapor, (2018) has stated
that There are various challenges which are faced by organizations while going global. One of
the most severe problem which can be faced by companies while internationally expanding their
market 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

challenge firm must get involve in doing keen market research which will help them in analysing
needs and demands of consumers.
Different ways for overcoming challenges of globalisation over corporate structure of Unilever
Plc
Foster, (2019) strive to establish that it is imperative to to overcome the challenges in
order to promote sustainable growth and development of an organisation internationally.
Therefore, the company must get involved in performing the market research of the country
where they wish to expand their business to. Also, it is necessary to identify the needs and wants
of the customers, their buying habits, socio-cultural behaviour and other political and legal
factors that can affect the company. Moreover, Dieter and Dunham, (2016) sought to analyse that
the human resource of the organization must predict the manpower requirements, the talents and
skilled required to operate the business effectively and efficiently. Also, it is important to choose
the right country that adjusts according to the organisational structure of the company. These
factors include easy availability of raw material, labour and technology otherwise it would affect
their growth prospects and reduce their profitability. In accordance with author, company can
also face problem while communicating to employees while setting their business in
international markets. For this enterprise need to have effective system and protocols so that
effective communication can be established and firm can easily able to set their business in
international markets. Coulibaly and et.al., (2018) carried out a study that stated that competition
is also a major challenge that can prevent a company from growing further hence it is necessary
to analyse the market and the major players operating in the industry. For instance, Unilever
company analysed the local competitors and the market size before entering into India and other
Asian countries. Therefore, it is necessary for companies to analyse the costs and expenditure
associated with the globalization along with predicting the benefits associated with it. Author
argues that many corporate firms assume that globalization can have only positive effects which
is an absolute myth. Author investigated that expanding business in foreign markets also require
skilled human resource. If the employees are not efficient and then this can act as challenge for
firm. This problem can be solved by organization by hiring employees who are skilled, talented
and full of knowledge related to their subject. Hence, it is important to identify that the
organisation has done proper research, market analysis and have identified their target customers

before entering into the global market otherwise the organisation will fail to survive in the
international market.

Moreover, it is quite evident that the benefits of globalization definitely outweigh its
negative aspects and it is beneficial for both company as well as the countries as it helps them in
their profit maximization and from a country's point of view it helps them to grow incessantly
and promotes balanced regional development. Also, it improves the standard of living and
overall quality of life of the citizens of countries and promote employment which further
increases the GDP of the nation and help in balanced regional development throughout the
world.
Research Methodology
Research Type: Research is defined as a study which is conducted to find out solution of
a specific problem and concern. In general there are two type of the research type which is
undertaken by the scholar for the purpose of achieving the research aim such as qualitative and
quantitative research (Kumar, 2019). Quantitative research is the research in which research is
conducted on the basis of the data and stats. Qualitative research is the research in which
behaviour and nature of the human is taken as a basis to conduct the research. For determining
the impact of the globalization on the corporate structure of large multinational company
researcher has be undertaken Qualitative research type. It has helped the researcher in
explaining the information in better way as numerical way was difficult one to explain the
information collected.
Research Approach: Research approach is a plan that consist of broad assumption to
detailed the method of data collection, analysis and interpretation. Inductive and deductive are
the two specific approach which can be taken by the researcher in conducting the research for
Uniliver PLC. Deductive approach looks at testing the already made theories and Inductive
theory looks at the generation of the new theory on the basis of the collected data. Scholar has
taken Inductive approach to accomplish the aim of the research as this approach plays a crucial
role in the Qualitative research type. As in the inductive research approach scholar is able to
generate new theory on the basis of the data collected.
Research Philosophy: Research philosophy is the belief about the different way in
which the data can be gathered, analysed and used in such a manner that it helps the researcher in
achieving the research Aim and objective. Researcher is having the option of undertaking two
type of the research philosophy in the research namely Interpretivism and positivism. As they are
the common type of research philosophy which are used by the scholar in conducting the

research. Interpritivsm philosophy integrates the human interest as the instrument to be used to
measure some phenomena of the research (Kumar, 2019). Positivism approach integrates the
study of the society that relies specifically on the evidence such as experiment and stats. Scholar
has used Interpretivism as a research philosophy as it is better suited for the research type
selected. This philosophy has helped the researcher in understanding and analysing the Human
nature as well, as this philosophy relies on both trained researcher and human subject.
Data collection: Data collection is the process of collecting the data and measuring the
information of the targetted variable. Primary and secondary are the two type of the data
collection tool which is used to collect the data for the purpose of achieving the research aim and
objective. Primary data collection is the method in which data is collected from the original
source itself. At the other end Secondary data is collected by from the other source other than
occurrence. Scholar has taken help of different books and journal to collect secondary data for
the research. Primary data has been collected by the way of the survey which has been conducted
on the basis of the Questionnaire which contains both open ended and close ended question.
Survey is conducted on the 10 employee of the Uniliver PLC.
Sampling: Sampling is the process in which number of the respondent are selected from
the large number of the population. In the field of the research, Sampling is sub divided into two
types namely probabilistic and non probabilistic. Probabilistic sampling is the technique in which
sample are chosen from a large population in such a way that they all respondent get a equal
opportunity to get selected at the other end in non probabilistic technique all respondent does not
get a equal opportunity to get selected. Scholar has used simple random sampling method under
probabilistic method to gather the required information on the study as it give the equal
opportunity for all the respondent to get chosen for the sample. Sample size for the study is 10
employee of the Uniliver PLC.
Data analysis: Data analysis is the process in which data is evaluated with the help of the
analytical and statistical tool. Their are two type of data analysis tool namely thematic analysis
which analysis the data within qualitative research. Other one is SPSS which is used to analysis
Social science data. Scholar has used thematic data analysis tool to analysis the data collected
through the primary data collection tool (Kumar, 2019). Researcher has drafted different theme
related to the data collected and all the data is presented in the form of the graph, pie chart and
bars which help the research in presenting the data in more reliable way.

Ethical consideration: For conducting the research researcher has taken consent of all
the respondent beforehand itself. All the data collected is not be shared with any one. High level
of the confidentiality is maintained through out the research.

Timeline
Activities/
Weeks
1 2 3 4 5 6 7 8 9 10 11 12 13
Drafting of
Research topic
Drafting of
research Aim
and objective
Proposal
drafting
Writing LR
using books
and journal
related to
research study
Choosing
relevant
research tools
and
techniques
Developing
questionnaire
Primary data
collection
Arranging
Data set in
structure
formate
Analyse of
gather data
Drafting
conclusion
Recommende
d strategies
Final
formatting
Taking
Feedback
from Tutor
Final