Abstract
A couple of years ago, it was unimaginable that Unilever, one of the world's largest consumer and personal goods company would get into any trouble. 2004 was clearly a very disappointing year for Unilever. Underlying sales growth was only 0.4%, with leading brands growth at 0.9%. The revenues declined from € 42.7 billion for the year 2003 to € 40.2 billion for the year 2004, a decline by 6%. In the background of these issues, Unilever abandoned its dual chairmen structure and Patrick Cescau was made Group Chief Executive of Unilever. The case discusses the decline of Unilever. The case also discusses the five-year "Path to Growth" strategy and its results. Details pertaining to its structural changes in the top management and its new strategy "Plan 2010" are also discussed.
At the end of our five-year "Path to Growth" period we are not where we set out to be.
- Antony Burgmans and Patrick Cescau
Co-Chairmen, Unilever
"We are not competing as effectively as we need to right across the business." We need to raise our game.
- Patrick Cescau
Chief Executive, Unilever
Unilever management has its work cut out. "Growth strategy appears to have sort of faltered."
- Lex Werkheim
Analysts and Company watcher
"I am excited to have been entrusted with this new challenge." These changes are designed to make us more competitive in the marketplace.
- Patrick Cescau
Chief Executive, Unilever
A couple of years ago, it was unimaginable that Unilever, one of the world's largest consumer and personal goods company would get into any trouble. 2004 was clearly a very disappointing year for Unilever. Underlying sales growth was 0.4%, with leading brands growth at 0.9%. The revenue...
... middle of paper ...
... Unilever Annual report 2004
Unilever streamlines its leadership structure, February 10, 2005
Competitive Pricing's Impact on Unilever's growth strategy, professional pricing society, April 02, 2005
Poor weather hits Unilever's sales, BBC online
News & Events, Oct 16, 2002
Unilever Annual report
Unilever's acquisition, www.personal.psu.edu
Unilever simplifies Portuguese production, Food & Drink europe.com, December 12, 2004
Lean times for Unilever, Business Week Online, June 15, 2004
Cescau washes Unilever whiter, Telegraph, September 13, 2005
European Business, October 2004
www.morningnewbeat.com, March 24, 2005
European Business, October 2004
Dillard’s is an excellent example of what can go wrong when a management model from yesteryear is applied to modern day advancement and technologies. They are not growing with consumer desires or employee needs, and they are becoming an outdated brand. Instead of stressing satisfaction rates, they stress the bottom line profits. While this formula has made the company successful and allowed national growth at the turn of the century, it is also dropping employee morale, which is known to drive down customer attraction and satisfaction rates.
Founded in 1986, Pret A Manger is a fast food chain, which produces freshly prepared, natural food with over 250 stores throughout the United Kingdom, France, Hong-Kong and the United States. Unlike most fast-food chains, Pret is a private company; they do not face the same pressure to grow as a public company does. However there are many factors that affect Pret A Manger’s marketplace such as economy, competition, technology, political environment, and the standard of living. This report evaluates major internal and external factors affecting Pret A Manger using various analytical techniques.
Introduction The purpose of this report is to undertake financial analysis of the position of the three major supermarket chains (Tesco plc, Morrison plc and Sainsbury plc) in the UK, using the financial tools such as Horizontal and Vertical Analysis and Ratio Analysis. The calculations done are considering the figures from the income statement and balance sheet of these three companies for the last 2 years (2008 & 2007). Doing these calculations is an effort to find out the current position and if any forecast on their performance. Tesco Plc *Interpreting the Horizontal and Vertical *Analysis The balance sheet’s horizontal analysis reveals the first worrying statistics about the company- the fact that stock level has increased by 25.84% in the year, even though net assets have increased by only 12.59%. The vertical analysis of the balance sheet again highlights the increase in amount of stock held by the company at the end of 2008 and increase in current assets. Interpreting the Ratio Analysis By looking at the ROCE* ratio it is clear that the business has not generated any higher return in the period 2007-2008. Though there is a marginal decrease in the returns (0.14% from 0.16%), however when compared with returns of other competitors Tesco plc has performed much better. Drop in asset utilisation ratio in the year 2008 indicates that the company did not use its assets efficiently to generate sales. As a result profit margin dropped down to 5.91% in 2008 from 6.21% in the year 2007. The Acid test ratio also doesn’t meet the ‘ideal’ ratio of 1:1. In other words Tesco had only 38p of quickly realisable assets to meet each £1 of current liabilities. Stock turn shows the effect of increased stock at the end of 2008 as it s...
This assignment will attempt to determine why Marks & Spencer nearly collapsed and what they have achieved in terms of success and failure as part of their recovery programme.
Tesco is one of the biggest grocery retailors in the world, it is one of the top five stores, it was founded in early nineties in UK, and now it is well known company around the global and very famous because of their successful strategies in marketing and how they manage any problem that they are facing. However, in recent day Tesco are facing some problems that may threat their career life, and make them loose their market position. This report will cover these problems, how the competitors are doing to take Tesco’s place, and what Tesco are doing to overcome these problems.
The purpose of this project is to show how financially stable the Kraft Foods Group is and demonstrates what its strengths and weaknesses are. The reader can expect to find out what Kraft Food Group is and about their financial history for the last five years. This business participates in the consumer packaged food and beverage industry. The markets that Kraft Food Group sell to are the United States and Canada. Some brands that are included in this company are Kraft, Maxwell House, Oscar Mayer, Planers, Kool-Aid, Velveeta, Capri Sun, and Philadelphia to name just a few. This company was started in 1903 by James Lewis Kraft. Mr. Kraft used a wagon and horse and started selling cheese to businesses in Chicago, Illinois. In 1909,
The P-O-L-C framework, has been a reoccurring topic in these case studies and has been used to describe management processes throughout the book. P-O-L-C stands for, planning, organizing, leading and controlling, which is an exceptional framework for companies to establish themselves and keep them afloat. The discussion in this case, Pret A Manger, involves the teamwork that Pret builds itself on. In 1986, Pret A Manger started planning their company with a vision and mission to provide healthy, inexpensive food while avoiding preservatives and chemicals, as well as establishing a well-oiled team structure. In the organizing section of the framework, Pret designed its company to be able to provide for their customers for a low price, but
“Going forward, the company is well positioned for future growth, and Nigel and his team remain focused on driving franchisee profitability and delivering shareholder value” shares Lead Director Raul Alvar...
Companies all over the world varies but yet shares a common challenge, that is to solve problem not only effectively and efficiently but also creatively. The P-O-L-C framework which stands for Planning, Organising, Leading and Controlling plays a major role in both the company’s survivability and success. The SWOT analysis looks at both internal and external factors that can affect the Starbucks’s performance. The purpose of this report is to define and analyse how Starbucks respond and should have respond to the change of its external environment on the cofee market,This report will also identify and disscuss how The P-O-L-C framework and can help starbucks to compete and reduce the loss of their failing peformance in the Australian market and how SWOT analysis helps to define some externalities that can be a threat to Starbucks.
The main external threats to Cadbury-Schweppes are competition from Coca-Cola and Pepsi and changing consumer tastes. External opportunities include increasing sales internationally and development of new products. Cadbury-Schweppes has many internal strengths and weaknesses in its organizational, marketing, operational, and financial activities. These characteristics along with economic analysis will be used to provide the answers needed in order to survive and thrive in the CSD industry.
However a continuous rise in globalisation could be presented as a challenge for Sainsbury’s. One of the biggest economic factors is the rising costs of fuel which will impact right through the supply chain of Sainsbury’s leading to increase of its products. Social factors to consider due to increase in trend in healthy foods, so for Sainsbury’s to keep up with trends, it would be something to consider. The use of technology for great retailers such as Sainsbury’s is an important factor, persistent upgrading of technologies such as self-checkouts, computerised stock control etc., means less room for human errors. Concerning environmental, reducing carbon footprint is emphasised to big companies. “Companies like Sainsbury’s can contribute a lot of impact on the environment. To do this Sainsbury’s would have to put in more towards the green issue” (UK Essay 2014) Legally, Sainsbury’s would have to make sure to follow policies concerning label and packaging which could be an added financial load to Sainsbury’s. Sainsbury’s should act on its threats, to achieve its goals and
Unilever is a multinational company which ranks third globally in fast moving consumer goods. They have an excellent value chain which is one of the factors that has resulted in them to be among top consumer goods company globally. Their merger and acquisitions have led them to expand their company in different sectors of the consumer goods. They have 400 brands and sell their products across 190 countries. They have to work on some areas of the value chain to work even better than how they are working now. Also, there are many opportunities that will help Unilever to overcome their shortcomings and make them a successful Consumer goods
Review of: Olson, Matthew S., Van Bever, Derek ,Verry, Seth. 2008. When Growth Stalls. Harvard Business Review, 51-62.
Unilever is a multinational consumer goods company, which includes products like food, beverages, cleaning agents and personal care products. Unilever is the world third largest customer goods company. The brands of Unilever are trustworthy worldwide and because of the feedbacks given by the people, Unilever is stated as one of the most successful customer goods/products companies. Unilever have more than 400 brands which focuses on health and wellbeing, and this is the reason why Unilever has touched so many people lives in many different ways. Unilever collection of varieties varies from nutritionally composed foods to permissive ice creams, inexpensive soaps, comfortable shampoos and everyday domestic care products and goods. Unilever also produces world-leading brands such as Lipton, Knorr, Dove soap, Axe, Blue Band and many more. Unilever is a responsible business as their supportable living strategy sets out to decouple their development from their environmental influence, and at the same time growing their social encouraging influence as well. Their plan has three main aims to achieve by 2020 which are as follows:
No company that falls behind the competition is guilty of standing completely still. But sometimes our efforts fail because of the level of commitment to change.