Define Horizontal and Vertical FDI, Choose a Multinational company and analyze its strategy to penetrate global marke

INTERNATION BUSINESS MANAGMT
TOPIC 2: Define Horizontal and Vertical FDI,
Choose a Multinational company and analyze
its strategy to penetrate global market
GROUP 2:
Trần Tiến Dũng
Đoàn Quốc Tài


Horizontal Analysis
• a financial statement that shows changes in the
amounts of corresponding financial statement items
over a period of time, which is a helpful tool to assess
the trend situations.
• From this change analysis can be known source of the
use of corporate funds, in addition to the development
of the company from one period to another period.


Vertical Analysis
• an income statement show that every income
statement amount represented as a
percentage of sales.
• This analysis helps to determine the
relationship with various items appeared in
the financial statement.


Horizontal Analysis Result

Horizontal analysis is one of two methods that used in this
research, this method used to measures the financial
performance of PT. Unilever Indonesia Tbk, this method assess
the financial performance by evaluating a series of financial
statement data over a period of time.


• The horizontal analysis of income
statement show the company having a
fluctuation trend it can be seen from the
net sales index from 2012 to 2016. The
fluctuation trend was also happened in
cash flow statement according to
net/increase in cash and cash
equivalents.


Vertical Analysis Result


Vertical Analysis of the Balance Sheet


Vertical Analysis of the Income Statement


Vertical Analysis of Cash Flow


• Based on the figure above vertical analysis of the

balance sheet from 2012-2016 PT. Unilever
Indonesia Tbk shows the company having the
fluctuation index which means the company
financial performance was not good every analyzing
year because the current liabilities index was higher
than the current assets index which means the
company was not able to utilize their current assets
to cover the current liabilities.


• While for the income statement
can be seen the gross profit item is
fluctuated in periods 2012-2016.
The cash flow statement the
decreased occurred in net/increase
in cash and cash equivalents in
2013.


• Furthermore the financial performance of PT.
Unilever Indonesia Tbk based on the vertical analysis
of the cash flow, it is seen in periods 2012-2013 was
not optimal because the amount of the total cash
inflow is larger than the amount of the total cash
outflow. But the last three years periods 2014-2016
the financial performance of PT. Unilever Indonesia
Tbk was optimal it is seen from the total amount of
the cash inflow is larger than the total amount of the
cash outflow.

UNILEVER'S GLOBAL BUSINESS STRATEGY


INTRODUCE

OUTLINE

DEFINE HORIZONTAL AND
VERTICAL FD
UNILEVER’S TRATEGY


Who We Are
As one of the strong and healthy
companies in the world with many
successful brands. Supported by
strengths of its four key global brands –
Dove, Sunsilk, Rexona and Lux, Unilever
firstly entered in foreign market to
compete internationally by entering just
one or select few foreign markets.



B O O S T L AYO U T S

Content Marketing

The following diagram shows the market

performance of Unilever’s skin care and hair
care market
share
Marketing Definition
All strategies executed by Unilever for competing in
foreign market resulting in moderate 5% sales growth
in 2006 – just above market performance – ensured
that Unilever kept its position as third largest player in
cosmetics and toiletries with a 7% market share.
Unilever decision to introduce its product on emerging
market such as Asia-Pacific, Latin America and North
America implies to the high contribution of Unilever
total revenue by 26%, 21% and 16% respectively.
Unilever recognized that its product is commonly used
for all people worldwide. Therefore, Unilever are
moving rapidly and aggressively to extend their market
reach into all corners of the world.


UNILEVER’S MARKETING
STRATEGY FOR COMPETING
IN FOREIGN MARKET


For its marketing strategy Unilever combines its strategy with
social project in many countries. Educational campaigns have
been important tools for raising awareness for Unilever brands
such as Close-Up and Dove. The company’s partnership with the
World Dental Federation has seen it become involved in oral
healthcare projects in both developed and emerging nations,

including Austria and Brazil. In 2006, Unilever developed a lowcost toothbrush, the Pepsodent Fighter, which retails at a price
equivalent to just EUR0.20 and is distributed in India and
Indonesia.


The company also has more directly brand-related programs,
including Close-Up’s Project Smile in Nigeria and the Dove SelfEsteem Fund. Less directly, a Brazilian recycling partnership with
Pao de Acucar, a major Brazilian retailer not only helped employ
more than 300 people in a local recycling co-operative, but also
gave Unilever’s products greater in-store prominence as well as
raising the profile of brands including Rexona by having their logos
on point-of-sale information and educational materials.
• The company’s successful brand innovation program is
supported with a high level of marketing and advertising
activities including most media. As there are many
opportunities in the foreign markets but the tendency of
threats is also same as opportunities. The powerful R&D,
diversified and differentiated product line and market
analysis are all important factors that make a company
enjoy its potential and good market share in foreign market.


THANK YOU!