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:
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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