Comprehensive Analysis of Unilever Vietnam's Business Operations

This report provides a detailed analysis of Unilever Vietnam, a public joint-stock company operating in the consumer goods industry. The report begins with an introduction and company overview, including its location, contact information, product portfolio (foods and drinks, personal care, and home care), and business objectives focused on improving the quality of life and corporate social responsibility. It then delves into the company's business type, size, and scope, highlighting its global presence, revenue, and market share. The report further examines Unilever Vietnam's organizational structure, including its functional areas like marketing, sales, human resources, and accounting, and evaluates how this structure supports strategic planning and the achievement of business goals. It identifies potential conflicts between departments and suggests recommendations for improvement. Finally, the report concludes with a reference list of sources used in the analysis.

PROGRAM TITLE: BTEC BUSINESS
UNIT TITLE:
ASSIGNMENT NUMBER:
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DATE RECEIVED: 04/10/2021
TUTORIAL LECTURER: Ms PHAM HUONG THUY
WORD COUNT: …………………………………………
STUDENT NAME: NGUYEN HA HOANG
STUDENT ID: BKC12354
MOBILE NUMBER: 0972774425

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Table of content
I. Introduction.............................................................................................................................3
II. Company introduction:..........................................................................................................3
1. Location and contact........................................................................................................3
2. Product portfolio and service...........................................................................................3
3. Business objectives..........................................................................................................4
III. Business type........................................................................................................................5
IV.Size and scope.....................................................................................................................13
1. Size of company............................................................................................................13
2. Scope of company............................................................................................................16
2.1. Industry......................................................................................................................16
2.2. Commerce..................................................................................................................18
V. The type of the structure......................................................................................................18
VI. The functional areas of the business..................................................................................20
VII. Evaluation on how this structure......................................................................................21
VIII. Evaluation on how this functional areas allow the business to strategically plan to help
achieve the business’s purposes and aims................................................................................21
1. The influence of corporate structure on strategic planning to help the company achieve
its business goals..................................................................................................................21
2. The influence of the organization of departments on strategic planning to help the
company achieve its business goals.....................................................................................22
VIII. Evaluate possible conflicts caused by this organizational structure and by the
interrelationships among the functions....................................................................................23
Marketing department and Sales department:......................................................................23
Human Resources department and Accounting department:...............................................23
IX. Recommendations as the solutions to solve the upper conflicts........................................23
Marketing department and Sales department:......................................................................23
Human Resources department and Accounting department:...............................................23

X. Reference list.......................................................................................................................24
I. Introduction
In today's modern society, when science and technology are developing more and more,
people are more and more concerned about the health of themselves or their family members
as well as taking care of their homes. That is why the companies developing these product
lines appear in mass and compete with each other all over the world. Thank you to all
investors, customers, employees or anyone who is needed and interested in the information
the company provides. This report was divided into several sections, each section will contain
specific information about different areas of the company that people may need to pay
attention to better understand. The first part is the basic information about the company that
everyone should know before diving deeper. The second part is about the type of business as
well as the size and scope of the company. The third is about the type of structure and
departments along with the functions of those departments. The next part is the evaluation
comments on the type of structure, on the functions of the departments. From it, there will be
views on possible conflicts and conflicts in the structure and departments. Finally, the options
and ideas were given to solve these problems.
II. Company introduction:
1. Location and contact
Unilever Vietnam International Co., Ltd
Address: A2-3, Cu Chi Northwest Industrial Park, Cu Chi District, Ho Chi Minh City.
Phone: [phone].

Representative office: 156 Nguyen Luong Bang, Tan Phu Ward, District 7, Ho Chi Minh
City.
Phone: [phone]
Website: www.unilever.com.vn.
2. Product portfolio and service
Unilever Vietnam has over 400 product brands and thousands of Stock Keeping Units
distributed in 190 countries around the world. In Vietnam, Unilever's product portfolio is also
very diverse and rich, meeting almost all the needs in people's lives. Unilever Vietnam's
product portfolio so far has 26 branded brands, in which there are many Stock Keeping Units
inside, which are statistically classified into three main categories as follows: Foods and
drink, Personal care and hygiene products, Home care products. With 3 product lines,
Unilever has many famous brands in Vietnam such as OMO, Surf, Lux, Dove, Hazeline,
Ponds, P/S, Close Up, Vim, Cif, Sunsilk, Sunlight, etc. Every day more than 30 million
Unilever products reach consumers across the country, contributing to improving living
conditions, hygiene and health for all Vietnamese families. Next is about the company's
service. Enterprises especially focus on customer care because developing new customers is
more difficult than taking care of old customers and increasing service quality for old
customers. For example, in the case of OMO washing powder, it is one thing to focus on
product packaging, besides, OMO also focuses on product support services, because the
company knows that service is the guideline to make people happy. Service providers and
financial institutions play an important role in helping Omo stand firm in the market such as:
Market expansion, discounts, customer support, consulting, etc. This is what makes OMO
always remembered by users when it comes to washing powder products for their family.
(We are Unilever, 2020)
3. Business objectives
Together during the past, Unilever Vietnam has improved and enhanced the Vietnamese
People’s quality of life day by day. That is the biggest goal of our company. Unilever
Vietnam is proud to be a companion in the life of every Vietnamese citizen not only through
the company's products but also through our deep concern for the community and the
environment. Firm deeply believes that corporate social responsibility is an integral part of

business and the key to sustainable development. For Unilever, to be successful, company
must adhere to the Business Purpose of "the highest standards of business conduct with
everyone with whom firm deal, the communities of influence, and the environment in which
Unilever has an impact." Enterprise want to make a positive impact in many ways: through
our brands, our commercial activities and relationships, through our voluntary contributions,
and other ways. Enterprise is constantly committed to improving and protecting the
environment and strive to achieve our longer-term goal of developing a sustainable business.
<https://www.unilever.com.vn>
III. Business type
Unilever Vietnam is a public joint stock company because:
Company’s shares are listed on the NYSE. On September 18, 2021, the shares were sold for
53.95 USD and the issued quantity is 2,595,084. Unilever Vietnam's total investment capital
is 75,274,382 USD, of which 38,110,000 USD is charter capital. (Unilever PLC ADR (UL),
2021)

<https://vn.investing.com>
Annual General Meeting of Shareholders, all business information and reports are made
available to the public. The company's profit in 2020 is very good, despite the additional
Covid 19 costs. Underlying operating profit of 9.4 billion USD declined by 5.8 % but rose by
0.7% at constant exchange rates. Meanwhile, firm focus on protecting cash and keeping
operations running efficiently led to 7.7 billion USD of free cash flow. This increase of 1.5
billion USD was driven by favourable movements in working capital, as increased company's
focus on payments from customers. Firm’s turnover decreased by 2.4%, primarily driven by a
negative currency impact of 5.4%, with a positive impact of 1.2% from acquisitions net of
disposals. eCommerce sales grew by 61% as company captured demand in online channels –
and is now 9% of Unilever’s sales. (Unilever's annual report, 2020)

<https://www.unilever.com.vn>
Unilever is one of the world's leading multinational companies with branches and factories in
more than 190 countries and territories. Specifically, company have built many famous
product brands in the three product lines mentioned above in Vietnam, such as:
Foods and drinks:
Wall's ice cream: Includes diet products with pure flavor. The product is suitable for all
audiences, with the convenience of helping the brand to be chosen by many people in today's
balanced diet.
Knorr: Knorr is one of the biggest and most loved brands in Unilever in Vietnam’s market.
Seasoning products used in Vietnamese dishes bring an attractive taste, suitable for the diet of
Vietnamese people.
Lipton: Lipton is one of the leading beverage brands in the world and in Vietnam Lipton is
loved by tea bags suitable for all ages. With convenient features when stored in a bag and
reasonable price, Lipton has become a major beverage brand in Vietnam.
Unilever food solutions: This is a brand used for high-class cooking by professional chefs
with high expertise. With typical spices, brand standards are gradually becoming an
indispensable choice of chefs around the world. (Brands, 2020)

<https://www.unilever.com.vn>
Portfolio of personal care and hygiene products:
Lux, Vaseline, Hazeline: Known for shower gels, bath soaps, face washes with seductive
fragrances, suitable for many ages.
Dove, Sunsilk, Clear: Famous in Vietnam market for hair care products from shampoo,
conditioner to professional hair treatment.
Lifebuoy: The soap brand used in most households in Vietnam.
Closeup, P/s: With the main product being a toothpaste with compatibility suitable for all
ages, this is a brand that many people choose to use in the oral hygiene market.
AXE: brand of perfume products, hair gel for men.
Rexona: Favorite deodorant brand around the world.
Pond's: owns skincare products that are trusted by many women thanks to their quality and
reasonable price compared to cosmetic lines from other brands. (Brands, 2020)

<https://www.unilever.com.vn>
Portfolio of home care products:
Omo, Viso, Surf: These are the cleaning brands that dominate the market in Vietnam today.
With quality and easy-to-use laundry soap products, Unilever is trusted by many customers.
Comfort: Along with cleaning products, comfort is a brand that includes clothes conditioners
with many fragrances suitable for many families in Vietnam.
Sunlight washing dishes, Sunlight cleaning floors, Cif: Sunlight has become a trusted brand in
kitchen cleaning for the past 15 years.
Vim: Vim is a product that cleans bacteria in the toilet with simple and effective use. (Brands,
2020)
<https://www.unilever.com.vn>
IV.Size and scope
1. Size of company
As mentioned above, company operates in more than 190 countries, so UVN is a large-sized
company. Through a network of more than 150 distributors and over 300,000 retailers,
Unilever Vietnam has provided direct jobs to more than 1,500 people and more than 15,000
indirect jobs for people working in third parties three, our suppliers and distributors. Revenue
in 2020 is 51 billion euros, with 58% coming from emerging markets. An extensive global
distribution network of 25 million retailers. 13 brands brought in over 1 billion euros in 2020.
81% of our brands are in the top two in the market for that product line.

Unilever's annual report, 2020
In addition, our company also works for the community and the environment. Unilever and
our brands have implemented many social and community programs such as: "P/S Protect
Vietnamese Smile", "Wash your hands with Soap for a healthy Vietnam"," OMO offers a
playground for children", "VIM Clean Toilets", "Microfinance for Poor Women"... These
programs have become good examples of partnerships. Effective public-private partnerships
have been making a significant contribution to improving the lives of Vietnamese people.
29,000 tons of black tea is purchased from sustainable sources, 639 million m3 of clean water
is saved through Comfort 1 flush, 99% of emissions, and 42% of the water used are reduced
in the production process. Unilever's products are manufactured in factories. (Planet &
Society, 2020)

<https://www.unilever.com.vn>
<https://www.unilever.com.vn>
2. Scope of company
2.1. Industry
Unilever Vietnam belongs to the group of secondary industry. Because the secondary
industry is using raw materials to make products and Unilever Vietnam operates in this way.
Unilever Vietnam's production process is standard in accordance with international
regulations and is especially safe and environmentally friendly. Especially because the
company's products are in the fields of personal and family health care, safety is a top
priority. Currently, the company is still promoting links with raw material suppliers. Vietnam
Chemical Group (Vinachem) and Unilever have just signed an Agreement to further tighten

the relationship of raw material supply between the two companies. In Vietnam, Unilever is
currently purchasing some key raw materials from Vinachem and Vinachem's member
companies. However, some other main materials such as LAB, Sodium Sulphate, Soda Ash
Light, Sorbitol and Zeolite still have to be imported, with an estimated value of over 100
million USD/year. Therefore, Vinachem and its subsidiaries will cooperate with Unilever to
develop and produce these materials in Vietnam for the benefit of both Parties. The two sides
will jointly develop production and supply plans on the basis of competitive supply prices
and actual future demand. In addition to the need to purchase imported substitute materials,
Unilever will look for opportunities for Vinachem to export those key ingredients to other
Unilever subsidiaries, initially focusing on LAB in ASEAN countries, followed by Asia and
finally global. The export will depend on competitive supply prices, actual demand and
quality requirements of other Unilever companies. (Vinachem and Unilever cooperate, 2010)
Vinachem and Unilever cooperate to supply production materials, 2010
Besides, Unilever has about 76 raw material suppliers, 54 packaging suppliers and more than
150,000 distributors nationwide with a total turnover of about 34 million USD per year with
UVN. Unilever's companies currently use about 60% of raw materials and 100% of
packaging produced domestically.
Below is Unilever's manufacturing company in Ho Chi Minh city.

Working at Unilever, 2020
2.2. Commerce
Unilever Vietnam Company belongs to domestic trade. First of all, Unilever is a British and
Dutch multinational company specializing in the production of consumer goods such as
cosmetics, cleaning chemicals, toothpaste, shampoo, food.... Valuable company ranked
seventh in Europe. Unilever is one of the oldest multinational companies. After entering the
Vietnamese market and establishing Unilever Vietnam, the company aims to become a leader
in personal and home care products. The company's products are widely distributed
throughout the country and are trusted and loved by Vietnamese people. Currently, Unilever
in Vietnam has built a distribution network of more than 150 distribution agents, 300,000
retail stores, and cooperated with nearly 2,000 small and medium enterprises nationwide
through the supply chain across the country. Besides, the company has also developed an
online business form so that customers can easily access products. UShop is an e-commerce
ecosystem specializing in selling Unilever products.

<https://u-shop.vn/>
V. The type of the structure
Unilever Vietnam was organized in a Divisional Structure because enterprise have many
types of businesses products. Each department will specialize in one product. Unilever
Vietnam is currently developing three product lines and each product line will have many
other brands. Each of these brands will have their own development directions, have their
own departments in charge. Currently, there are more than 400 types of Unilever products
distributed and used around the world.
<https://www.unilever.com.vn>

Besides, our business is organized in the form of Functional Structure because there are
departments Human Resources, Marketing, Accounting. So that means Matrix Structure is
the main structure of our organization.
Unilever Vietnam can also be considered a geographical organizational structure because it
separates specific divisions for each location. Each division acts as if it is its own company,
combining different types of personnel for various business functions. Looking back,
Unilever is structured according to the above two structures, can see that the company also
belongs to the matrix structure.
Because there are branches all over the world as well as the whole territory of Vietnam, it is
very important to pay attention to the characteristics of geographical areas. Specifically, in
Vietnam, the company has 2 branches in Ho Chi Minh City and Cu Chi. Each branch will be
organized according to the activities in a certain geographical area grouped and assigned to a
manager. Thus, Unilever Vietnam is also organized by geographical structure.
<https://www.unilever.com.vn>
VI. The functional areas of the business
Administrative Council: Unilever Vietnam's board of directors will hold regular meetings to
update business information and solve business problems. The Board of Directors also
directly gives instructions to the below departments of the company so that the company can
operate smoothly. The most important decisions such as restructuring the organization or
changing the rotation strategy will be made directly by the board of directors.

Accounting Department: Accounter monitor the working results of the Unilever system,
working closely with departments to get information quickly and effectively. Employees also
have to check and compare data between units as well as check and account for incurred
expenses. In addition, detailed reports and statistics of accounting data must be prepared
when requested by superiors. Together with other departments, it creates an information
network to manage human resources, finance, etc.
Research & Development Department: Unilever Vietnam's engineers are oriented in product
research and development, improving production technology. The study of gradually
replacing materials and technologies to improve product quality is also very important. They
also researched the localization of some raw materials to increase value and take the initiative
in production at a reasonable and environmentally friendly cost.
Marketing Department: Here, employees will work with leading brands of Unilever,
contribute to brand building and development, planning and implementing Marketing
strategies.
Human Resource Department: Here, human resources will have a very diverse career
development path: from basic human resource activities such as attracting, selecting,
rewarding, training, developing talents, etc... to providing strategic solutions on reward,
resource management, leadership development, organizational development and corporate
culture.
VII. Evaluation on how this structure
Public Joint Stock Company:
Advantages: Because Unilever is a company of immense size and scope, so the operation of a
joint stock company is very suitable. Such a large company has to bear a huge financial
burden, so there are many shareholders who will share in this burden. A joint stock company
has the ability to operate in many industries. In addition, the transfer of shares in the company
is extremely simple, and can accept many participants' contributions.
Disadvantages: Having too many shareholders is also a weakness of the company because it
makes management more difficult. In terms of financial and accounting regimes, the
establishment and management of joint stock companies is also more complicated than other

types of companies due to being closely bound by the provisions of law. The clear division of
the company makes requests from low-level people who are directly involved in the work, it
will take a lot of time to reach the manager and executive.
VIII. Evaluation on how this functional areas allow the business to strategically plan to
help achieve the business’s purposes and aims
1. The influence of corporate structure on strategic planning to help the company
achieve its business goals
Divisional Structure:
Advantages: This organization helps to avoid duplication in Research & Development,
product marketing between regions in a product group. It will drive consolidation of value-
creating activities at key locations for best performance. The product division helps develop a
force of managers who understand the product. Not only that, it also helps to develop
business strategies that are suitable for customers' characteristics depending on the product
model they are interested in.
Disadvantages: However, if the structure follows this structure, it will take more time for
managers to exploit the local market instead of the international market. The position of the
regional managers is reduced, as decisions are made from the product group managers, and
therefore may not be able to respond to local needs in a timely manner. The separate division
also makes it difficult to combine activities between different product units.
Geographical Structure:
Advantages: The organizational structure according to this structure helps to ensure the
reduction of management and business costs, and also accelerates the development and
launch of new products. In particular, those new products will be suitable for a company that
considers each regional or national market to be different. It also provides flexibility and
faster response to changes in the environment of the business.
Disadvantages: Because the units operate independently according to geographical
distribution, the allocated resources may overlap in activities (resources invested in the same
activity but in two different areas), creating a waste of resources. time and finance. The
transfer of knowledge from one unit to another is difficult due to differences in culture,
region, etc.

2. The influence of the organization of departments on strategic planning to help the
company achieve its business goals
Advantages: Unilever's departmental organization helps the company separate strategic and
operational control. The company will react more quickly to important changes in the
external environment, reducing problems of resource sharing. through functional
departments, promoting creativity and initiative in product development. In particular, the
experience and skills of managers and employees are enhanced.
Disadvantages: The division of personnel will make costs more expensive in many
departments. Besides, there will also appear disordered competition between departments.
Also differences in image and quality may occur on parts. Such division makes the company
only focus on short-term efficiency but cannot follow long-term projects that require large
resources.
VIII. Evaluate possible conflicts caused by this organizational structure and by the
interrelationships among the functions
Marketing department and Sales department:
The marketing department and the marketing department are both responsible for finding and
managing leads through all forms of communication. However, the results of that marketing
process are counted together. This leads to a huge problem of unfair rewards and
punishments. Sometimes two departments will fight over achievements and blame each other
when something goes wrong.
Human Resources department and Accounting department:
The human resources departments of Unilever's affiliates may employ employees. This
causes an excess of human resources, leading to a budget and financial deficit of the
company. Not only that, the redundancy of personnel also leads to many unpredictable
exponents. Especially for big companies like Unilever Vietnam, this is really a huge problem.
It will affect the development of the company because human resources are the components
that will directly participate in business activities. The redundancy of personnel also leads to
errors in the departments containing those personnel.

IX. Recommendations as the solutions to solve the upper conflicts.
Marketing department and Sales department:
Should reduce and select staff of both departments. This will help the company easily
manage employees, saving costs. In addition, the work of each department will be recognized
clearly, avoiding confusion leading to the consequences behind.
Human Resources department and Accounting department:
Instead of dividing into multiple recruiting sessions that are both time-consuming and costly,
the company will focus on fewer recruiting sessions but on a larger scale. In which, the
recruitment session will be divided according to the recruitment requirements of different
areas. In addition, the recruitment of personnel should be carefully planned according to the
departments to be able to really recruit the best quality employees. This will have a strong
impact on the quality of the company's human resources.
This report is about Unilever Vietnam Joint Stock Company. The company has the main
operations of two branches in Ho Chi Minh City and Cu Chi. Besides the company's products
and services, its operation form and business purpose. The report also clearly states the type
of business, the structure of which is Divisional Structure, Functional Structure, Matrix
Structure, Geographical Structure. In addition, it explains and articulates all the advantages
and disadvantages of such business structures, thereby promoting the advantages and
minimizing the disadvantages that the structure suffers, moving towards the plans. long term
in the future. The report then talks about all the information and functions of the departments
for the company. From that information will evaluate and comment on conflicts that occur
between departments in the company. Finally, there are ways to solve problems, methods are
given to handle those conflicts.

X. Reference list
Unilever Vietnam, viewed 18 September 2021
<https://www.unilever.com.vn/>
We are Unilever, Unilever Vietnam, viewed 18 September 2021
<https://www.unilever.com.vn/our-company/>
Unilever's annual report, Kreston, viewed 18 September 2021
<https://data.kreston.vn/en-report/lse-ulvr-2020/>
Brands, Unilever Vietnam, viewed 18 September 2021
<https://www.unilever.com.vn/brands/>
Planet & Society, Unilever Vietnam, viewed 18 September 2021
<https://www.unilever.com.vn/planet-and-society/>
Ushop, viewed 20 September 2021
<https://u-shop.vn/>
Unilever logo - Symbol of creativity and cohesion, Goldidea, viewed 20 September 2021
<https://goldidea.vn/y-nghia-logo-unilever/>
Vinachem and Unilever cooperate to supply production materials, Vinachem, viewed 20
September 2021
<http://www.vinachem.com.vn/tin-tuc/tin-tap-doan-vnc/
vinachem_va_unilever_hop_tac_cung_ung_nguyen_vat_lieu_san_xuat.html>