Case Study Report: Unilever's Operations Management Decisions

This report provides a comprehensive analysis of Unilever's business operations and management decisions. It begins with an introduction to business operations, defining its core functions and importance. The main body delves into key operational areas, including production, supply chain management, logistics, location strategies, quality control, and human resources. The report then presents a brief overview of Unilever, highlighting its global presence and product portfolio. The core of the report evaluates Unilever's operations management decisions across the aforementioned functions, examining their effectiveness and impact on the company's performance and success. The analysis considers how Unilever manages production processes, optimizes its supply chain, handles logistics, makes location strategy choices, maintains quality control, and manages its human resources to achieve its goals. The report concludes with a summary of the findings, emphasizing the significance of effective operations management for business success.

Introduction to
Business Operations
and Management

Table of Contents
INTRODUCTION ..........................................................................................................................3
MAIN BODY...................................................................................................................................3
The main functions of business operations.................................................................................3
About the Company....................................................................................................................4
Evaluation of the company’s operations management decisions................................................5
CONCLUSION ...............................................................................................................................7
REFERNCES:..................................................................................................................................9
Books and Journals:....................................................................................................................9

INTRODUCTION
Business operations is one of the vital function of a management of a business. It refers to
day to day activities that are performed by business. The aim is to enhance the value of business
and increasing the sales to earn profit for the organisation. It includes all the activities that a
business performs. It is performed by internal team and success of a organisation depends on the
way business performs its operations. It includes everything from conversion of raw materials
into final goods (production) to marketing done by business to promote the goods and services
(Zurich, Instruction and Documentation, 2018). Along with that decision location to carry out
business operations and selling of final product. Business operations is a vast term and is various
functions are explained in this report. Business operations and management of Unilever have
been explained to complete this report. Main functions of operations are defined and impact of
Production, Supply chain, logistics, location strategies, quality control and HR on decision
making of Unilever.
MAIN BODY
The main functions of business operations
Business operations consist of activities that are performed by business to earn profit. The
operations of a business vary according to size, type of the company. The key operations that are
performed by organisation are financial, office, production, marketing, legal and operations. It is
important to understand each function and performing it effectively as well as efficiently. As
these helps a business top become stable and earn more profits. The functions are discussed
below:
Production Function: This is main function that is carried by an organisation.
Production means converting the raw material into finished goods. It is important to ensure that
company purchases quality raw materials as they are the one that are converted into finished
goods (Filimonau and Delysia, 2019). The company should take care that the production process
is effectively managed. There are various technological development. It is important for a
company to analyse the the process followed by them is not causing any harm to environment.
Every company performs production activity in such a way that it helps them to achieve
economies of scale. The success of a business depends on how effectively the company is
managing its production process.

Financial Function: It is important for every business to set objectives and that is duty
of the finance department. Every organisation requires a strong finance department that sets
SMART objectives. They are the one that decides the profitability of the organisation and
decides to carry new plans. The budget is formulated by the finance department and they decide
which activity will help them to earn more profit. It is important for a business to know the
requirement of finances. The better the financial department function it is more beneficial for the
business.
Marketing Function: Another important operation of a business is marketing. Marketing
function means promoting goods and services to enhance the sales of the company. It helps to
attract more customers and establish a strong image of business in market. Marketing function
helps to position the product and persuading customers to buy it. It helps to understand the needs
and wants of customers and finding ways to satisfy them. Marketing supports the sales functions
and helps the organisation to achieve success.
Human Resource Function: Human resource manager of a department is responsible to
select right person at right place. It is important to select skilled and talented staff that helps to
perform the task effectively (Chahal and et.al., 2020). Employees of an organisation are
considered as human asset. They are the one responsible for the production in the organisation.
Along with that providing them training so that they can complete their task effectively. Also it
is duty of Human Resource to make efforts to manage talent and retain them in the organisation.
The employees are the one that perform all the operations in an organisation.
Legal Function: It is important function of an organisation. All the rules and
responsibilities of the organisation are formulated according to the laws and legislations. It helps
employees to understand the their work. The work is decided as per the employment Act. This
helps the organisation to become successful and have a good image in the market.
Above mentioned are the functions of operations in an organisation. It is important to
understand these functions and complete them effectively.
About the Company
It is a British multinational company that has its headquarters in London, England. It is
third largest consumer good company in the world. The company was founded 91 years back in
2 September 1929. Unilever sells its products in around 190 countries (Scott-Jackson and
Michie, 2017). The company was founded by the merger of the Dutch margarine producer

Margarine Unie and the British soap maker Lever Brothers. The products offered by the
company are food, energy drinks, baby food, soft drinks, confections, cheese, tea, ice cream,
cleaning agents, pet food, coffee, bottled water, tooth paste, frozen pizza, chewing gum,
pregnancy tests, beauty products, margarine, juice, breakfast cereals, personal care, consumer
healthcare products and pharmaceutical. Unilever is largest manufacturer of soap in the world.
Unilever's products are available in around 190 countries. This company owns over 400 brands.
Unilever focuses on performing all the operations effectively to achieve its goals and objectives.
Along with that the company focuses on sustainability and focuses reducing carbon footprints.
The company aims to produce environment friendly products and manage the resources used by
them. Unilever has planned zero emission in its operations by 2030. Also they are taking
measures to protect water. All of this helps company to form a powerful and positive image in
the market. This helps company to serve more customers. It is important for a company to
operate effectively to achieve success.
Evaluation of the company’s operations management decisions
Unilever is the largest manufacturers of UK that earned £41.8 Billion in revenue per year.
It shows the growth and success of organisation that how they can manage their business
operations in such a manner that they earn maximum profits. They perform many functions that
are mentioned below with an explanation:
Production: Every company produce something for a selling purpose to their potential
customers so that they can earn maximum profits. In the same way Unilever is also produce
consumer goods so that they can satisfy their consumers' needs and wants in an effective way. It
is not a easy decisions for any company that what they make for their customers so that they their
product cannot fail in the market (Pınarbaşı, 2018). Unilever conduct a market research for
understanding the behaviour of consumers so that they can take decision according to their needs
and wants. First and foremost decisions that Unilever take is their goods and services. For their
products they are focusing on continuous innovation in their products. Operation managers of
Unilever always focus on innovativeness and ensure about their effective output levels.
Supply chain: In this decisions, company always focus on high productivity. They
makes those strategies which assist in achievement of gaols and objectives of organisation.
Supply chain is very important for every organisation because company produces goods and
services that should be deliver at time to their potential customers. It is the responsibility of

Unilever that they deliver their products timely so that they can maintain supply and demand of
goods (Chisveto, 2017). It is analysed that Unilever's supply chain is very efficient and effective
as they are extensively automated, because of that reason they are leading in high productivity.
For example, Unilever's managers has main objectives that they take decisions based on demand
and supply variations. Supply chain is very important functions for the organisations' success and
growth. They maintained their supply chain management with the help of regular proactive
problem solving and monitoring.
Logistics: It is the term that refers to transfer of products or consumers goods of Unilever
from one place to another place. It is very necessary functions because it is the only way which
helps in transferring goods to their end users. Organisation can achieve their objective only when
they successfully transport their goods and services to the customers. This goals can be achieved
with the help of best logistics solution. It is crucial for Unilever that they transfer their products
in an efficient way (Ankers and Attrill, Energy One Ltd, 2018). It is analysed that Unilever focus
on formulating best solutions for the logistics purpose so that they can attain their objectives.
Logistics is the system which transport consumers goods to their potential customers. For that
purpose JD logistics and Unilever agree to find the best and smart solution for providing supply
chain so that they can ensure about their effectively transfer of their goods to the customers. It is
very important for organisation as it helps in driving sustainable development for building a
better future. Unilever is always looking for deliver better and more sustainable products to the
customers.
Location Strategies: It is another important strategic decisions that should be taken by
organisation in order to sell their products and services in the market. Company produces goods
and services so that they can satisfy their consumers needs but the main question that arise in
every managers' mind that which place they choose for selling of their goods and services. It is
not a easy decision because if organisation sell their products at wrong place which means that
their products are failed due to selection of wrong location then they cannot archive their
objectives (Lutchman and et.al., 2019). For that purpose Unilever always looking forward to
select best locations with the help of making strategies. This includes efficiency and cost
effectiveness in their strategic decisions. This decision is depends on many factors such as
production cost and transportation cost. So that's why Unilever is always focus on reducing their
transportation and production cost.

Quality control: It is very important decisions that taken by organisation. Quality is the
essential key element that decide the sale and growth of organisation. Unilever is focus on
providing quality products to their potential customers so that they can achieve their
organisational objectives. Operation managers of the Unilever is always focus on satisfying their
customers expectations with the help of quality products. Unilever adopts a approach in which
organisation involves implementation of set standards to their products. For maintaining high
quality of goods and services Unilever focus on application of local standards and corporate
standards in their organisation. It is very important for organisation that they should control and
monitor on their quality of products. If organisation maintain their quality in the products then
they can easily achieve their objectives and goals. It assist in attracting and inviting their
potential customers.
Human Resource: It is very necessary for organisation that they recruit high quality of
human resource so that they can achieve their objectives and goals. Human resource is the key
element of organisation because the business can run by people and for people. So that's why
Unilever always focusing on implementation of strategies to motivate their employees in order to
perform with high productivity (Temnyshov and Belyaev, 2020). They always focus on effective
job description so that they can specify role and responsibilities to each employees. They recruit
and select most suitable candidate in the firm.
After the brief discussion, it is analysed that organisation should take their necessary
decisions in such a way so that they can attain their objectives. All above mentioned functions
are necessary to effectively perform for organisation.
CONCLUSION
It is concluded from the above discussion that organisation need to operate their functions
in an efficient way so that they can achieve their goals and objectives. Business operations is an
important function of business and it is vital for an organisation to complete all its operations
effectively. Unilever is being evaluated to complete this report. Business operations has many
functions that such as marketing, production, financing, etc. All operations need to perform in an
efficient way so that they can satisfy their customers' needs and wants. The business operations
in Unilever impact the decision making of the organisation. This report also covers
implementation of strategic decision on business operations.

REFERNCES:
Books and Journals:
Ankers, C.S. and Attrill, R.J., Energy One Ltd, 2018. System and method for facilitating
management of business operations. U.S. Patent Application 15/565,601.
Chahal, H., and et.al., 2020. Operations management research grounded in the resource-based
view: A meta-analysis. International Journal of Production Economics, p.107805.
Chisveto, T.P., 2017. The effect of a centralised treasury management system on business
operations: A case study on Premier Services Medical Investiments.
Filimonau, V. and Delysia, A., 2019. Food waste management in hospitality operations: A
critical review. Tourism management, 71, pp.234-245.
Lutchman, C.,and et.al., 2019. Operations Excellence Management System (OEMS): Getting it
Right the First Time. CRC Press.
Pınarbaşı, F., 2018. The effects of strategic design on business operations. In Strategic Design
and Innovative Thinking in Business Operations (pp. 115-129). Springer, Cham.
Scott-Jackson, W. and Michie, J., 2017. Culture and business operations: How the Gulf Arab
leadership style impacts a contingent human resource management. In Business and
Society in the Middle East (pp. 31-47). Palgrave Macmillan, Cham.
Temnyshov, I.A. and Belyaev, A.M., 2020, February. Business modeling in business operations
of manufacturing company. In IOP Conference Series: Materials Science and
Engineering(Vol. 753, No. 8, p. 082027). IOP Publishing.
Zurich, B.L.L., Instruction, X. and Documentation, X., 2018. Service operations and
management. Master of Science in Engineering, p.380.