group assignment mgt103 introduction to business unilever

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<b> GROUP ASSIGNMENT</b>

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MGT103 Introduction to BusinessLECTURES: Phạm Thị Hồng AnhGROUP: 4

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<b> Table of content</b>

<b>INTRODUCTION</b>

<b>I.EXTERNAL ENVIRONMENT</b>

1. General environment2. Task environment

<b>II. INTERNAL ENVIRONMENT STRATEGIC MANAGEMENT </b>

1. Vision2. Mission3. MKT strategy 4. Cultural value

<b>III. ORGANIZATION </b>

1. Unilever's organisational structure 2. Human resources

3. Management hierarchy 4. Unilever SWOT analysis

<b>IV. CONTROLLING (K. Trang)</b>

<b>V. CONCLUSION </b>

<b>VI. REFERENCES</b>

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Today all companies always have to operate in a fiercely competitive environmentand competitors are constantly changing their policies to attract customers to theirside. For each type of goods, consumers are faced with many different choices interms of types and brands of goods. At the same time, the needs of customers arealso increasingly diversified. Therefore, customers have the right to choose the mostattractive goods, satisfying their needs and interests.Facing such a fiercely competitive environment, companies must have plans for thefuture to survive and win. First of all, the company must be organised to operate in ascientific and reasonable manner, with a compact and lightweight apparatus topromote the full capacity of all employees. On the other hand, companies mustconstantly strengthen their financial strength to be able to meet the innovation ofproduction and business processes, and expand production to dominate the market.In this research paper, group 4 would like to mention the organisational and financialsituation of Unilever Vietnam joint venture company, then make some suggestionsfor the company effectively.

The products that Unilever offers to the market include products around the areas ofpersonal hygiene care, home care, food, tea and tea-based beverages. Thecompany's typical brands are produced for consumption and widely acceptedglobally such as Lipton, Knorr, Omo, Comfort, Lux, Vim, Lifebuoy, Dove, Close-up,Sunsilk, Clear,... With over millions of dollars in revenue per brand the companyproves that it has proven itself to be one of the world's most successful companies in

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<b> Unilever's system of business products </b>

<b> Home Care Personal Care Food Stuff</b>

1. Comfort: Fabric softener

2. Washing powder:Omo

Omo MaticViso3. CleansingSunlightVim

1. Shampoo: Clear, Lux, Organics, Sunsilk, Pond.2. Conditioner: Sunsilk3. Skin creams: Pond, Hazeline, Vaseline4. Toothbrush and toothpaste:Close up, P/S, C-up Brush, PS Brush5.Soap and shower gel: Lux, Dove, Lifebuoy

1. TeaSun teaLip tonesBanyan Tree

2. FoodKnorr Instant Pork Porridge

Knorr Beef Soup BallWater year knorr - Phu Quoc

One of the most remarkable successes of Unilever Vietnam when operating inVietnam is the expansion and development of its products in the Vietnamese market.Within a short time since the company went into operation in 1995 and launched itsfirst product, Sunsilk shampoo, and then other product categories such as OMO,Comfort, Clear, Vim... These brands are really ingrained in the mind and areconsidered first when Vietnamese people buy these consumer goods for personaland home care. The company's products are widely known throughout the countryand branches, wholesale and retail distribution agents have sprung up rapidly withan amazing speed. In 1996 when the company had only more than 30,000distribution agents both wholesale and retail throughout the country, within 5 years,this number increased nearly 5 times to 150,000 units of distribution agents.distribution, forming a nationwide distribution network.

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The company's products have really reached consumers across the country, fromthe most remote places people also know Omo as the number 1 laundry product inVietnam, or Clear - The leading anti-dandruff shampoo in Vietnam, etc. Sales ofthese products are also increasing continuously (about 30-45%/year) and thecompany's market share growth rate is also remarkable. market share over 7%/year.

For example, the political stability of the United States helps mitigate challenges inimplementing the company's strategy in the country. On the other hand, politicalissues in the European Union pose a potential threat to Unilever's operations in theconsumer goods market in the region. However, the company has opportunities forglobal growth based on its ever-expanding free trade relationships, especially thoseinvolving developing countries.

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Rising wages in developing countries provide an opportunity for Unilever to makemore profit from higher potential sales, as consumers have higher disposableincome.

For example, China presents a huge growth opportunity for the company. Moreover,the economic stability of developed countries helps businesses avoid risks in othermarkets, while creating conditions for gradual but steady growth.

The important socio-cultural external factors in Unilever's consumer goods businessare as follows:

● Health Awareness (opportunity)

● Environmental acts are on the rise (opportunity)● Gradual elimination of the gender divide (opportunity)

Unilever can grow through products that directly address consumers' growinginterest in healthy products. In addition, environmental practices are on the risecreating opportunities for the company to attract more consumers by improving itsenvironmental impact.

For example, Unilever can reduce energy consumption by adopting new and moreenergy-efficient technologies. In addition, the company can grow through highersales based on improving the income of female consumers worldwide.

<b>Technology (Technology)</b>

Unilever relies on available technologies to support its consumer goods business.● Business automation is evolving (opportunities and threats)

● Increasing investment in R&D (threat)

● Reduce transportation costs based on technology efficiency (opportunitiesand threats)

Increasing business automation is an opportunity for Unilever to increaseoperational efficiency. For example, new business processing equipment canenhance inventory monitoring to effectively support supply chain and distribution.

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However, the same technological externality is a threat as it increases thecompetitiveness of other businesses, including small ones in the local market. Onthe other hand, increased investment in research and development (R&D) threatensUnilever as it also increases the competitive advantages of other companies in theconsumer goods industry. In addition, reduced transportation costs lead to loweroperating costs, contributing to business growth. However, falling transportationcosts is a threat as it contributes to the competitiveness of other businesses.

The growing interest in business environmentalism is an opportunity for Unilever toimprove its environmental programs in order to appeal to environmentally consciousconsumers. In this relationship, the company can strengthen its sustainabilityprograms to strengthen its competitiveness with other companies in the consumergoods industry.

For example, the strategy must consider product innovation and internal businessprocesses to further reduce the impact on the business environment. These effortswill also support Unilever's ability to respond to increasingly complex environmentalprograms. Such an external factor is an opportunity for the company to enhance itscompetitive advantage through corporate responsibility.

<b> Legal (Legal)</b>

Unilever must meet regulations to reduce barriers to its consumer goods business.● Increasing complexity of environmental regulations (opportunities)● Strengthening international patent law (opportunity)

● Strengthening consumer rights laws (opportunities)

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Unilever has the opportunity to enhance its corporate image by combining itscorporate social responsibility strategy with environmental regulations. Outside

Unilever's customers can be divided into different categories in terms of age, salaryrange and what Unilever can offer them. Unilever's customers are of all ages.Categorized individuals and families with age group 14-50 and moderate to highincome level. Unilever's target is people who are conscious of health and beauty.Most of Unilever's products receive great attention from customers who visit regularstores such as groceries, ...

The food department age group starts at 5 years old and the trend is towards tastyand complementary foods.

<b>Strategic partner</b>

Unilever cooperates with many domestic factories and enterprises in manufacturingand processing activities, supplying production materials and finished packaging.These business cooperation activities have helped Unilever Vietnam to save importcosts and lower product costs, to enhance the competition of its products in theVietnamese market, and at the same time the company has also helped Vietnamese

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partners develop production, ensure income for employees and create about 5,500jobs.

Unilever's vision will vary from country to country but it is built on the commonUnilever global vision. Regarding Unilever's global vision, it is to make sustainableliving popular, or more specifically, to develop in parallel between business andsocial activities on reducing harm to the environment. Unilever believes that doinguseful things will help businesses become better and a business that thrives in thefuture must be a business capable of serving society. This also explains theformation of the Sustainable Development Plan that Unilever implemented 10 yearsago, in which Unilever tries to separate the development of the business from theimpact on the environment, and at the same time positive influence on society.Besides, Unilever's vision in Vietnam is to make the lives of Vietnamese peoplebetter. Unilever came to Vietnam with the desire to create a better future for thepeople here. Through its products, Unilever wants to help Vietnamese people have agood life in all aspects, from health, appearance to spirit, to help them enjoy life andgood service for themselves as well as those around them. In addition, Unileverwants to inspire people to join hands to build a better society.

At the time of company establishment up to now, the founders of that time set outUnilever's mission as "To add vitality to life". always adhere to this mission. Themeaning of this mission is that Unilever wants to bring a better life to people throughits products. Until now, that mission has become increasingly evident in each ofUnilever's products when all products of this group are aimed at the same purpose,which is to bring health, beauty and comfort to children. people. Proof of this is thatUnilever's famous brands are very diverse from washing powder, shampoo,toothpaste to tea such as Omo, Dove, Close-up, Lipton, …

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To carry out its mission, Unilever Vietnam has announced a Sustainable

- Improve the health and living conditions for more than 20 million people in Vietnam- Halve the environmental impact associated with the production and use of Unileverproducts

- Improve the quality of life for millions of Vietnamese people in the process of

<b>3. MKT strategy:</b>

<b>●Unilever's business strategy</b>

Unilever's overarching business strategy is to build a competitive advantage bysatisfying the specific needs and preferences of consumers. Common strategies areused to ensure the competitiveness of the organisation, which is necessary for thegrowth and resilience of the business.

In the case of Unilever, competitive advantage is based on research-integratedproduct development approaches to address market needs. In addition, the companymaintains growth through the right combination of specialised strategies.

Unilever changes the priorities of its business strategies based on the conditions ofthe consumer goods market. The overall combination of generic competitivestrategies such as this and specialised growth strategies ensures Unilever'scontinued success in its business activities.

<b>●Unile er's Business Strategy (Porter's Model)</b>ᴠ

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Unilever uses differentiation as a general strategy to create a competitive advantage.The main focus of this business strategy is to emphasise the features orcharacteristics that make the company's products stand out from the competitors.For example, Unlearn publishes personal care products like the Dove Cream Bar tomeet consumer demand for a soap that's not too harsh or dry.

Despite their relatively high price tag, products like Unilear's are competitive becausethey stand out from most soaps that focus more on cleaning than moisturising.In this strategy, the company attracts customers with specially designed products. Assuch, a shared strategy such as this aligns with Unilever's vision statement andmission statement, which aims to support global sustainability and increaseconsumer comfort in life.

The strategic goal based on the group's distinct general competitive strategy is todevelop Unilever through product development. This goal focuses on developingproducts that stand out from the competition and attract customers.

<b>●Market penetration</b>

Unilever adopts market penetration as its main international growth strategy. In thisbusiness strategy, the company increases sales volume to improve revenue andbusiness growth respectively.

Active efforts like this increase the company's ability to draw customers away fromcompeting home care companies. Unilever successfully applied this businessstrategy by using a general differentiation strategy to make its products morecompetitive and attractive than other products.

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The strategic objective associated with this business strategy is to grow the businessthrough aggressive marketing of Unilever's products in the consumer goods market.

<b>●Product Development (Secondary Strategy)</b>

Product development acts as a secondary professional strategy that Unilever uses togrow its business. The company applies this business strategy by introducing newproducts that meet the needs of consumers. Example: Brand new versions ofUnilever's personal care products are released from time to time to maintain orincrease the company's market share.

Unilever has deeply studied the needs of Vietnamese consumers to "Vietnamization"its products, for example, Sunsilk shampoo contains locust extract - a folk shampooof Vietnam; and this brand has also been very successful, accounting for 80% of thesales of Sunsilk shampoo brand. Always innovating products, always launching newand continuously improved product categories is also one of the solutions. Like thefirst time when entering the Vietnamese market, the company only had one shampooproduct, sunsilk, in a short time after that it launched a series of products otherproducts such as: Clear, Organics, then Dovelike and Lux... give Vietnameseconsumers more choices, and thus, the satisfaction of consumers' needs will bemuch more diverse. Referring to Unilever Vietnam products, in the minds ofVietnamese people, they will probably think of only "new" because the improvementin the company's products is amazing. If the Vietnamese TV has just broadcast anadvertisement for a new type of washing powder called Omo not long ago, onlyabout a month later there will be another advertisement about 1 Omo products areimproved with unique formulas and better quality, which increasingly stimulatesconsumers to stick with Unilever's products and become more loyal to the company'sproducts.

<b>●Diversification (Strategy to support)</b>

Unilever uses diversification as a strategy to support international growth. Thisbusiness strategy focuses on establishing new businesses to grow the company. Forexample, to achieve diversification, Unilever acquires other businesses over time,such as the acquisition of Sara Lee Corporation's personal care business in 2009 -2010. Unilever has applied international standards for products but adapted to theneeds of the Vietnamese people. They have acquired from their partner’s reputablebrands from many years in Vietnam such as Viso washing powder, and P/S

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