Unilever

MODULE ASSIGNMENT COST MANAGEMENT
PREFACE
First of all I would like to thank to God, because of his blessings that I can finish our
Module Assignment. This module assignment is presented to fulfill one of the requirements
in accomplishing final test that given by the lecturer. This paper is also compiled by the writer
in order to complete the duty in Cost Management.
It is very difficult for the writers to complete this module assignment without the help
and guidance of the various parties who have helped us to complete this module assignment.
On this occasion the writing team would like to thank as much as possible to:
1. The God Almighty for all the grace and guidance given to the writing team so that
the writing team can complete this module assignment. The amount of overflow
gifts that have been given by The God Almighty made the writers are always
grateful and always strive for better.
2. Google, which the source for my Module Assignment is www.unilever.com, those
provided me with information needed to finish my Module Assignment.
3. Dr. Yvonne Augustine Ak, MM as my lecturer in Cost Management that has been
taking her time to help writer to completed this module assignment
4. All of the writing teams friends in Trisakti Accounting Excellent Class whom
give spirit, feedback and motivation to the writing team on completing this
module assignment.
We realize that we put this paper is far from perfect, we therefore expect criticism and
suggestions that would be able to make this paper better. Hopefully this paper can be useful
for the reader.
Jakarta, 3th December 2015
Writer
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TABLE OF CONTENT
COVER
PREFACE .............................................................................................................................. 1
TABLE OF CONTENT ........................................................................................................ 2
CHAPTER I BASIC THEORY
1.1 Developing a Competitive Strategy ............................................................................................... 4
1.2 The Balanced Scorecard (BSC) ....................................................................................................... 4
1.3 The Value Chain .............................................................................................................................. 5
1.4 Activity Base Costing ...................................................................................................................... 5
1.5 Quality Management ....................................................................................................................... 6
1.6 Strength, Weakness, Opportunities, Threat ..................................................................................... 6
1.7 Supply Chain ................................................................................................................................... 6
1.8 Just in Time ...................................................................................................................................... 7
1.9 Corporate Social Responbility ......................................................................................................... 7
1.10 Triple Bottom Line ........................................................................................................................ 7
CHAPTER II COMPANY PROFILE

2.1 Brief History .................................................................................................................................... 8
2.2 Life Patners ...................................................................................................................................... 9
2.3 Vission .......................................................................................................................................... 10
2.4 Mission .......................................................................................................................................... 10
2.5 Brands ........................................................................................................................................... 10
CHAPTER III ANALYSIS

3.1 Strategy of Unilever ...................................................................................................................... 12
3.2 Competitor of Unilever ................................................................................................................. 13
3.3 Balanced Scorecard of Unilever .................................................................................................... 15
3.4 Value Chain of Unilever ................................................................................................................ 18
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3.5 SWOT of Unilever ......................................................................................................................... 22
3.6 Unilever Market Share .................................................................................................................. 24
3.7 Accounting Based Costing of Unilever ......................................................................................... 25
3.8 Unilever Production Process ......................................................................................................... 26
3.9 Quality Management of Unilever .................................................................................................. 28
3.9.1 Cost of Quality ............................................................................................................... 30
3.9.2 ISO 14001 ...................................................................................................................... 32
3.10 Supply Chain System of Unilever ................................................................................................ 33
3.11 Just In Time of Unilever .............................................................................................................. 35
3.12 CSR System on Unilever ............................................................................................................. 36
3.12.1 Example CSR OF Unilever ......................................................................................... 38
3.13Enviromental Accounting on Unilever ......................................................................................... 40
3.13.1 Benefit use Enviromental Accounting ......................................................................... 42
3.14 TBL on Unilever .......................................................................................................................... 43
CHAPTER IV CONCLUSION AND SUGGESTION .............................................. 48

REFERENCES ................................................................................................... ................. 49
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CHAPTER I
BASIC THEORY
1.1 Developing a Competitive Strategy
In developing a sustainable competitive position, each firm purposefully or as a result of
market forces arrives at one of the two competitive strategies: cost leadership or
differentiation.
Cost leadership is a strategy in which a firm outperforms competitors in producing products
or services at the lowest cost. The cost leader makes sustainable profits at lower prices,
thereby limiting the growth of competition in the industry through its success at reducing
price and undermining the profitability of competitors, which must meet the firms low price.
The cost leader normally has a relatively large market share and tends to avoid niche or
segment markets by using the price advantage to attract a large portion of the broad market.
The differentiation strategy is implemented by creating a product or service that is unique in
some important way, usually higher quality, customer service product features, or innovation.
Sometimes a differentiation strategy is called product leadership to refer to the innovation
and features in the product. In other cases the strategy might be called a customer-focused or
customer-solution strategy, to indicate that the organization succeeds on some dimension(s)
of customer service.
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1.2 The Balanced Scorecard (BSC)

Strategic information using critical success factors provides a road map for the firm to use to
chart its competitive course and serves as a benchmark for competitive success. Financial
measures such as profitability reflect only a partial, and frequently only a short-term, measure
of the firms progress. Without strategic information, the firm is likely to stray from its
competitive course and to make strategically wrong product decisions, for example, choosing
the wrong products or the wrong marketing and distribution methods. To emphasize the
importance of using strategic information, both financial and nonfinancial, accounting
reports of a firms performance are now often based on critical success factors in four
different perspectives. One perspective is financial; the other three are nonfinancial:
1. Financial performance. Measures of profitability and market value, among others, as
indicators of how well the firm satisfies its owners and shareholders.
2. Customer satisfaction. Measures of quality, service, and low cost, among others, as
indicators of how well the firm satisfies its customers.
3. Internal processes. Measures of the efficiency and effectiveness with which the firm
produces the product or service.
4. Learning and growth. Measures of the firms ability to develop and utilize human
resources to meet its strategic goals now and into the future.
1.3 The Value Chain
The value chain is an analysis tool organizations use to identify the specific steps required
to provide a competitive product or service to the customer. In particular, an analysis of the
firms value chain helps management discover which steps or activities are not competitive,
where costs can be reduced, or which activity should be outsourced. Also, management can
use the analysis to find ways to increase value for the customer at one or more steps of the
value chain.
1.4 Activity-based costing (ABC)

Activity-based costing (ABC) is a costing methodology that identifies activities in an
organization and assigns the cost of each activity with resources to all products and services
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according to the actual consumption by each. This model assigns more indirect
costs (overhead) into direct costs compared to conventional costing.
In a business organization, the ABC methodology assigns an organization's
resource costs through activities to the products and services provided to its customers. ABC
is generally used as a tool for understanding product and customer cost and profitability
based on the production or performing processes.
1.5 Quality Management
For purposes of discussion we define the term quality to mean the total level of customer
satisfaction with the organizations product or service. Defined in this manner, we can
decompose quality into two broad components: features and performance. The former
component refers to the extent to which product/service design is consistent with customer
expectations (in terms of product/service characteristics, attributes, or functionality)in
short, design quality. Outputs that fail to meet such expectations result in quality-of-design
failure costs.
1.6 Strengths, Weaknesses, Opportunities, Threats
SWOT analysis is a systematic procedure for identifying a firms critical success factors: its
internal strengths and weaknesses and its external opportunities and threats. Strengths are
skills and resources that the firm has more abundantly than other firms. Skills or
competencies that the firm employs especially well are called core competencies. The
concept of core competencies is important because it points to areas of significant
competitive advantage for the firm; core competencies can be used as the building blocks of
the firms overall strategy. In contrast, weaknesses represent a lack of important skills or
competencies relative to the presence of those resources in competing firms. Opportunities
and threats are identified by looking outside the firm. Opportunities are important favorable
situations in the firms environment. Demographic trends, changes in regulatory matters, and
technological changes in the industry might provide significant advantages or disadvantages
for the firm.
1.7 Supply Chain
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A supply chain is a system of organizations, people, activities, information, and resources

involved in moving a product or service from supplier to customer. Supply chain
activities involve the transformation of natural resources, raw materials, and components
into a finished product that is delivered to the end customer Importantly, it also includes
coordination and collaboration with channel partners, which can be suppliers, intermediaries,
third-party service providers, and customers. In essence, supply chain management integrates
supply and demand management within and across companies.
1.8 Just-in-Time Systems

Firms use the just-in-time (JIT) method to minimize inventory and improve quality by
carefully coordinating the receipt of raw materials and the delivery of product with the
manufacturing processes in the plant. The goal is to have little or no raw material, work-inprocess, or finished goods inventory in the plant. This saves costs that arise from holding
inventory, including the risk of damage, theft, loss, or failure to find a customer for the
finished product. Since inventory is minimal in an effective JIT system, there is no need for a
system such as process costing to determine equivalent units and to account for production
costs in work-in-process and finished goods.
1.9 Corporate Social Responsibility
Corporate Social Responsibility is a management concept whereby companies integrate
social and environmental concerns in their business operations and interactions with their
stakeholders. CSR is generally understood as being the way through which a company
achieves a balance of economic, environmental and social imperatives), while at the same
time addressing the expectations of shareholders and stakeholders. Even though the latter can
also make a valuable contribution to poverty reduction, will directly enhance the reputation of
a company and strengthen its brand, the concept of CSR clearly goes beyond that.
1.10 Environmental Accounting

Environmental accounting is a subset of accounting proper, its target being to incorporate
both economic and environmental information. Environmental accounting is a field that
identifies resource use, measures and communicates costs of a companys or national
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economic
impact
on
the
environment.
Costs
include
costs
to
clean
up
or remediate contaminated sites, environmental fines, penalties and taxes, purchase of

pollution prevention technologies and waste management costs.
1.11 Triple Bottom Line
Triple bottom line (abbreviated as TBL or 3BL) is an accounting framework with three parts:
social, environmental (or ecological) and financial. These three divisions are also called the
three. Ps: people, planet and profit, or the "three pillars of sustainability". Interest in triple
bottom line accounting has been growing in both for-profit, nonprofit and government
sectors. Many organizations have adopted the TBL framework to evaluate their performance
in a broader context.
CHAPTER II
COMPANY PROFILE
2.1 BRIEF HISTORY

Unilever is a British-Dutch multinational consumer goods company co-headquartered in
Rotterdam, Netherlands, andLondon, United Kingdom. Its products include food, beverages,
cleaning agents and personal care products.
Unilever owns over 400 brands, but focuses on 14 brands with sales of over 1 billion euros
Axe/Lynx, Dove, Omo,Becel/Flora, Heartbrand ice creams, Hellmanns, Knorr, Lipton, Lux,
Magnum, Rama, Rexona, Sunsilk and Surf. It is a dual-listed company consisting of Unilever
N.V., based in Rotterdam, and Unilever plc, based in London. The two companies operate as
a single business, with a common board of directors.
Unilever is organised into four main divisions: Personal Care (production and sale of skin
care and hair care products, deodorants and oral care products); Foods (production and sale of
soups, bouillons, sauces, snacks, mayonnaise, salad dressings, margarines and spreads);
Refreshment (production and sale of ice cream, tea-based beverages, weight-management
products and nutritionally enhanced staples sold in developing markets); and Home Care
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(production and sale of home care products including powders, liquids and capsules, soap
bars and other cleaning products).In the financial year ended 31 December 2013, Unilever
had a total turnover of 49.797 billion of which 36% was from Personal Care, 27% from
Foods, 19% from Refreshment and 18% from Home Care. Unilever invested a total of 1.04
billion in research and development in 2013.
Unilever is one of the largest media buyers in the world, and invested around 6 billion
(US$8 billion) in advertising and promotion in 2010.
Unilever has been in business since the 1880s. Our unique heritage shapes the way we do
business today. Unilevers corporate vision helping people to look good, feel good and get
more out of life shows how clearly the business understands 21st century-consumers and
their lives. But the spirit of this mission forms a thread that runs throughout their history.
In the 1890s, William Hesketh Lever, founder of Lever Bros, wrote down his ideas for
Sunlight Soap his revolutionary new product that helped popularise cleanliness and hygiene
in Victorian England.
It was to make cleanliness commonplace; to lessen work for women; to foster health and
contribute to personal attractiveness, that life may be more enjoyable and rewarding for the
people who use our products.
This was long before the phrase Corporate Mission had been invented, but these ideas have
stayed at the heart of our business. Even if their language and the notion of only women
doing housework has become outdated.
1.2 LIFE PARTENRS

With more than 400 brands focused on health and wellbeing, no company touches so many
peoples lives in so many different ways.
The portfolio ranges from nutritionally balanced foods to indulgent ice creams, affordable
soaps, luxurious shampoos and everyday household care products. Unilever produce worldleading brands including Lipton, Knorr, Dove, Axe, Hellmanns and Omo, alongside trusted
local names such as Blue Band, Pureit and Suave.
2.3 VISION
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Work to create a better future every day, with brands and services that help people feel good,
look good, and get more out of life.
2.4 MISSION
We work to create a better future every day.
We help people feel good, look good and get more out of life with brands and services
that are good for them and good for others.
We will inspire people to take small every day actions that can add up to a big
difference for the world
We will develop new ways of doing business that will allow us to double the size of
our company while reducing our environmental impact
2.5 BRANDS
From long-established names like Lifebuoy, Sunlight and Ponds to new innovations such as
the Pureit affordable water purifier, our range of brands is as diverse as our worldwide
consumer base.
Unilever is organised into four main divisions, there are :
1. Foods
From the best of Indonesias culinary traditions to new and exciting taste experiences, these
13 brands are delighting consumers with convenient high-quality, nutritious Foods and
Refreshment options. Convenient and great-tasting food. For example: SariWANGI,
BANGO, Blue Band, Royco,etc
2. Refreshment
Unilever also make some refreshment for costumer in the world. The product such as:
Buavita, Cornetto, WALLS, MAGNUM, Paddle pop, etc
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3. Personal Care
Personal Care is Unilevers largest division, having overtaken the Foods division in 2011 to
take the top spot. In 2014, Personal Care accounted for 37% of its total revenues, followed by
the Foods division with a 26% revenue share. This gap in revenue share is set to get wider, as
Unilever intends to consolidate its position in the personal care industry by making
acquisitions in the premium personal care segment. The products are : Citra, Dove, Clear,
TRESemme, LUX, Closeup, sunslik, SURF, Zwitsal, PONDS, etc
4. Home Care Product
Innovation is the driving force behind the 26 brands in Unilever Home and Personal Care
portfolio: from premium brands to cost-conscious options, they are all designed to help
consumers get more out of their everyday lives, such as: Molto, Rinso, Cif, Sunlight,
WipoL,etc
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REFRESHMENT BRANDS
CHAPTER III
ANALYSIS
3.1 STRATEGY
Unilever built a strategy to help us achieve our purpose of making sustainable living
commonplace. We aim to double the size of our business whilst reducing our environmental
footprint and increasing our positive social impact.
Unilever are use both strategy, that are cost leadership and differentiation. Because in cost
leadership Unilever compete for a wide range of customers based on price. Its products prices
are based on internal efficiency to obtain a margin that allows it to sustain its business above
average profit or returns and cost to the customers. Based on this cost and return analysis that
determine the price, make customers to purchase a particular product. This strategy works
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well when the product or service is standardize, have generic qualities, fulfill customer needs
and offer lowest price with best quality. In order to become a cost leader a business should
keep an eye on the price strategy followed by its competitors and its continuous efforts to
keep its prices low relative to its competitors. This can include:
Lower cost products with best quality

Building efficient production facilities
Maintain tight control over production and overhead costs
Minimize cost of sales, R&D, and service
Focusing on primary and support activities to reduce cost related to these activities
Configuring the value chain
But Unilever seems like usually use differentation stategy to providing value to its customers
through unique features and characteristics of its products. This is done through high quality,
features, high customer service, rapid product innovation, advanced technological features,
image management, etc Unilever creates value by:
Lowering buyers costs with higher quality and quicker response to problems.
Sustainability
Higher quality products
Creating barriers by perceptions of uniqueness and reputation
Creating high switching costs through differentiation and uniqueness
Efficient customer service and focus on customers need
3.2 COMPETITOR
Unilever is a top maker of packaged consumer goods worldwide, Unilever products are sold
in more than 190 countries throughout Africa, Asia, Latin America, the Middle East, North
America, and Western Europe. The company's offerings span several categories, including
savory, dressings, and spreads; ice cream and beverages; personal care; and home care.
Unilever's portfolio boasts a dozen brands that each ring up more than 1 billion annually.
Best sellers include Hellmann's (mayonnaise), Knorr (soups), Lipton (tea), Dove and Lux
(soaps), and Sunsilk (hair care). Unilever is the operating arm of Netherlands-based Unilever
N.V. and UK-based Unilever PLC. But, every company excatly have some competitor, same
as Unilever have competitors to, such as:
Unilever competes with Procter & Gamble
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The Procter & Gamble Company is focused on providing branded consumer goods.
The Company had six business segments under United States Generally Accepted
Accounting Principles (GAAP) such as: Beauty; Grooming; Health Care; Snacks,
Coffee and Pet Care; Fabric Care and Home Care, and Baby Care and Family Care.
The products of P&G are head&shoulders, olay, pantene, Oral-B, VICKS, Downy,
Pampers,etc.
Unilever competes with Revlon

Competes with Colgate competes with Revlon and LOreal. Revlon, Inc.
Revlon Consumer Products Corporation manufactures, markets and sells an array of
cosmetics,
womens
hair
color,
beauty
tools,
fragrances,
skincare,
anti-
perspirants/deodorants and personal care products.
Unilever competes with Nestle

With instant coffee, baby food, and bottled water in the mix, Nestl crunches more
than just chocolate. The world's number one in food and drinks company in terms of
sales, Nestl is also the world leader in coffee (Nescaf). Its most well-known global
food brands include Oreo, Toblerone, Tropicana, Ovaltine, Cadburry, Cocacola and
Kit Kat.
Unilever compets with Reckitt Benckiser

Reckitt Benckiser Group is a multinational consumer goods company headquartered in
Slough, England. It is a producer of health, hygiene and home products RB's brands
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include French's Mustard, the antiseptic brand Dettol, the sore throat medicine
Strepsils, the hair removal brand Veet, the air freshener Air Wick, Calgon, Clearasil,
Cillit Bang, Durex, Lysol, Mycil and Vanish.
3.3 BALANCED SCORECARD
Improvement in trade ROI (return

FINANCIAL
on investment
Consumer Voice
Protecting
Consumers of fake
CUSTOMER
product
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Improve Work
brand to
health
and a
alignment
create
futuremeasures
around keybetter
brand-health
everyday, with brands
and service that can
help fell good, and
look good
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Unilever business strategy is

INTERNAL
called theBUSINESS
Compass
PROCESS
FINANCIAL
BUSSINES IN
PROCESS
LEARNING &
GROWTH
Financial
To build a compelling vision that all finance team members globally which is a team with
only nine global members. The team includes vice presidents of finance and finance
directors from different Unilever businesses around the world.
This team was developed to bring financial strategy life. This is accomplished by:
Stimulating and facilitating best-practice creation and sharing,

Providing learning opportunities,
Identifying necessary financial competencies and skills.
TOOLS FOR FINANCE BUSINESS PARTNERS :

Tool
This method provides the finance team
Result
This method drove significant improvement
within customer development with tips on
in trade ROI (return on investment), which
structure, resources to stay abreast of retail
fueled increases in advertising
trends, and a framework for assessing
and share growth.
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customers and channels based on opportunity

and risk using financial and nonfinancial
metrics.
Customer
1. CONSUMER VOICE: HEAR AND LEARNING FROM CONSUMER

Through their commitment in the field of consumer services, the so-called "Voice of
Customer" (Consumer Voice), Unilever Indonesia establish a good relationship with
consumers. Consumer voice provide rapid response to complaints and inquiries about the
product, as well as improve customer satisfaction of the product. Consumer voice is
dedication Company against aspects of consumer services, where Unilever staff serve
customers during the five days a week during business hours. Consumers are encouraged
to use Consumer Services path to convey advice, express satisfaction and grievances or
question. Feedback will be handled and responded quickly through a strict protocol by
Consumer Complaints Service agent (Consumer Advisory Service-CAS). Complaints will
be included in the category normal, high priority or emergency. If the Agent CAS can not
give an answer, then the issue will be brought to the relevant department or division
through designated contacts.
2. PROTECTING CONSUMERS OF FAKE PRODUCTS
Nowadays, many circulating fakea products on behalf of the brands of Unilever Indonesia,
such as Pond's products and image. These counterfeit products still are found in many
markets in Indonesia. Product is likely to contain hazardous substances, or no benefit, to
the detriment of consumers. Unilever follow these counterfeit products seriously and take
the measures required to fix this problem. Through a salesperson in various regions
throughout Indonesia, Unilever regularly monitor the state of the market. When products
false use Unilever name was found in some stores, we will send a warning letter for
shopkeepers to pull the product proficiency level and stop selling it. If they are found stil
`continue selling fake products, so our party authorities (local police) will conduct raids
and confiscated their false
Business in Process
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Unilever business strategy is called the Compass. First developed in 2009, it sets out
their ambitious vision to double the size of the business, whilst reducing our
environmental footprint and increasing their positive social impact and their purpose
of making sustainability commonplace. The Compass also defines four nonnegotiable commitments within the business that Unilever believe will help them
achieve their purpose and vision, such as:
winning with brands and innovation;
winning in the market place;
winning through continuous improvement; and
winning with people, because developing and retaining the right quantity,
quality and diversity of people is crucial to our growth strategy
Learning and Growth
Unilever embraced innovative business partnering to maximize the value of finance to

build brand value and drive growth. As one of the five thrusts, Innovative Business
Partners helps Unilever achieve its goal of delivering top one-third total shareholder
return among its peer group and the growth it promised to shareholders, this involved
identifying competencies required to deliver the companys overall strategy with:
Better measurement (consistent, external, brand health focus),

Improved return on brand/customer investment,
Better planning (brand and customer orientation, value-creation focus), and
Improved innovation success rate through better analysis.
Tool
This tool aims to improve brand health by
Result
Dove Real Beauty CampaignThis tool
ensuring visibility and alignment around key
supported a global marketing campaign to
brand-health measures
celebrate the natural physical variation all

women embody and inspire them to have the
confidence to be comfortable with
themselves
3.4 VALUE CHAIN

Unilevers value chain the process by which Unilever create brands, products and
ultimately shareholder value begins with acquiring insight into consumers needs, which
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vary considerably between developed and emerging markets. Insight requires close
engagement with consumers, often over prolonged periods, and allows us to identify future
trends to gain a competitive edge. That knowledge helps us to target our subsequent R&D
activities and Unilever investments in innovation. Unilever has filed more than 200 new
patent applications in 2014 and our Partner To Win 2020 programme, also launched in 2014,
creates a new platform for us to work with our suppliers in the development of product and
packaging innovations that capture consumers interest and attention. Bringing these
innovations to market as physical products is a core function of Unilevers supply chain,
which employs about 110,000 of our 172,000 people. It also involves working with suppliers
around the world. Unilever itself manufactures the majority of its products and we maintain
an international network of 240 manufacturing sites. In sourcing large amounts of raw
materials we also have a direct impact on the environment. By sourcing sustainably, we can
protect scarce resources, ensure security of supply for our business and reduce price volatility
while protecting the environment and enhancing peoples lives, which is at the heart of our
Unilever Sustainable Living Plan (USLP). By the time manufacturing is under way
Unilevers marketing teams have worked with our category experts to define the complete
marketing mix, including communications, that makes our brands come alive.
Communicating the benefits of our products and brands to consumers is increasingly
complex, with digital communications and social media creating new and more direct ways to
engage alongside traditional media. Our logistics operations move Unilever products to
retailers and our go-to-market teams ensure that we get enough of the right products in the
right price bracket in the right sales channels for consumers to buy, be they stores or the fastgrowing e-commerce channel.
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1. CONSUMERS
4. SOURCING
INSIGHTS FOR INNOVATION
SUSTAINABLE SOURCING
A fundamental requirement at
Unilever is to understand our
consumers. We use focus groups
and quantitative studies and spend
time with consumers in stores and
in their homes to find out what is
important to them as citizens as
well as consumers so unilever can
create products they need and
want. Unilever carelines are also a
rich source of information. Digital
communications and social media
mean unilever can engage with
large
numbers
of
people
consistently over long periods of
time so unilever can immerse
ourselves in their day-to-day lives.
Unilever can use online search data
to identify and anticipate future
2.consumer
INNOVATIONtrends and gain a
competitive edge
TECHNOLOGY AT WORK R&D
is an engine of sustainable growth;
Unilever spends around 1 billion
on R&D annually. Our 6,000 R&D
professionals are responsible for
building brands through benefit-led
innovation, which is unlocked
through science and technology.
This includes looking at long-term
emerging science and transforming
scienceUNILEVER
into technologies which are
used to design branded products.
A dedicated team is responsible for

Unilevers
annual
35
billion
procurement
programme,
including
agricultural raw materials. In 2014
unilever rolled out our Responsible
Sourcing Policy (RSP) as part of our
commitment to business integrity,
openness, respect for universal human
rights and core labour principles.
Unilever are also targeting our broader
supplier base to secure continuous
improvement across the board. By the
end of 2014 all palm oil directly sourced
for Unilevers European Foods business
was close to 100% traceable and
certified sustainable (over 98% in
December 2014 and on track to be
100% by the end of March 2015). By
leading the industrys efforts to make
sustainable palm oil ubiquitous we help
to halt deforestation and mitigate the
risk
of rising commodity costs
3. COLLABORATION
PARTNER TO WIN
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To meet Unilever Vision unilever

know they must work in partnership
with others, such as suppliers,
agencies, universities, governments
and NGOs. The big development for
2014 has been the launch of our
Partner To Win 2020 programme to
create a supplier ecosystem where
partners work with unilever and each
other to create breakthroughs in
products or packaging to deliver the
8. SALES
5. MANUFACTURING
GLOBAL SCALE, LOCAL AGILITY
Unilever make the majority of what
they sell through a network of more
than 240 manufacturing sites
around the world. Unilever have
invested
significantly
in
our
factories in recent years to create
an efficient, reliable and more
sustainable network. Unilever are
now able to maximise the global
scale of our operations, while
having the agility to meet local
demands.
More
eco-efficient
production is helping them meet
the USLP targets, so by the end of
January 2015, for instance, all
factories had achieved zero nonhazardous
waste
to
landfill,
producing 140,000 tonnes less
waste.
6. LOGISTICS
CENTRALISED LOGISTICS EXPERTISE
How Unilever move products from
factories to customers is the role of
our logistics operation. Unilever are
now rolling out unilever global
network of logistics centres that
organise
movement of
goods
centrally and more efficiently,
delivering savings, reduced stocks,
reduced carbon emissions and
improved customer service. These
operational
hubs now allow us to
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centralise
other
services
too,
including monitoring orders from
customers through to payment.
GO-TO-MARKET EXPERTISE
Unilever work closely with retailers
to win in the market place and
make sure that their brands are
always available, properly displayed
and in the right price bracket.
Unilever go-to-market capability
ensures that Unilever become the
supplier of choice for customers
and trade partners, through strong
joint business planning and in-store
execution
via
Perfect
Store
programmes,
to
help
deliver
sustainable sales growth. This is
essential for they to be able to add
premium brand extensions to our
product
ranges,
land
product
innovations on the shelves, enter
new geographies and markets, and
ttheir distribution strength to
7. build
MARKETING
reach new consumers.
GENERATING CONSUMER-LED GROWTH
Unilever spend about 7 billion
annually
on
marketing,
making
unilever one of the worlds biggest
advertisers. This ensures that our
brands and products are consumers
first choice. They use multiple media to
achieve cut-through in a highly
competitive and busy world. Traditional
media channels continue to play a big
part but digital communications have
revolutionised the way marketing
Page 21engages with people, creating entirely
new sales and marketing opportunities.
They create our own entertainment
content,
including
Unileverbrand
3.5 SWOT (STRENGTHS, WEAKNESS, OPPORTUNITIES, THREATS)

Unilever is a company that serves in almost all the continents and over 190 countries of the
world. It has a wide variety of products serving the people of all ages. Based on its core
competencies and strategic outlook its strengths are :
Strengths
Unilever operates in nearly 190 countries around the world and hence, has a
global footprint combined with top of the mind brand recall among consumers
worldwide.
It has a deep and broad portfolio of brands and a diversified product range, which
makes it uniquely, positioned to tap into the changing consumer preferences
across the world.
Its Research and Development initiatives are heavily funded and manage to bring
to the market innovative and cutting edge products in tune and in line with
consumer preferences.
Unilever has a distinct competitive advantage over its nearest competitor, Proctor
and Gamble because of its flexible pricing and expertise in distribution channels
that manage to reach the nook and the corner of the globe.
The company finds its strengths in leveraging the economies of scale arising from
its breadth of operations as well as synergies between its many manufacturing
facilities, which totaled 270 locations around the world at last count.
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Unilever combines global thinking with local execution, which means that it
pursues Global strategies that let it win the hearts and minds of consumers who
would like to use its products that are globally famous yet retain a distinct local
flavor.
Weaknesses
The biggest weakness that Unilever faces is that it operates in an uber competitive
market where the other global giants like P&G and Nestle in addition to a host of
local players challenge its dominance at every turn and raise the stakes in the
Trillion Dollar FMCG (Fast Moving Consumer Goods) space.
The other weakness is that its products can easily be replaced with substitutes
especially in the emerging markets in Africa and Asia where the rural consumers
in the hinterland often use traditional and natural alternatives to the products that
Unilever markets.
Opportunities
With the advent of globalization and the proliferation of global media, consumers
in the emerging markets are aspiring to western lifestyles and this means that
Unilever has a tremendous opportunity waiting for it as it taps into this large and
diversified consumer base that wants to join the league of westerners in taste and
preferences for consumer goods.
Apart from that, capturing the Newly Affluent Trillion Dollar Consumers in
China and India means that it has a golden opportunity to leverage this huge and
growing consumer base, which often tries to imitate and mimic the consumerist
preferences of the material west.
The emergence of the health conscious consumer in the developed world means
that Unilever can seize the opportunity to market to this segment with its existing
and yet to be launched product range that is specially geared for the health
conscious consumer.
UNILEVER
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Unilever has a good track record of social and environment responsibility and
with the emergence of the ethical chic consumer who like to buy and consume
products and brands that are responsibly made and sustainably complete
Threats
The ongoing global economic crisis has severely dented the profitability of many
FMCG companies and Unilever is no exception. With the shrinking of the
disposable incomes of the global consumer, they are buying less and insisting on
more value for their money or more bang for the buck. This means that Unilever
faces the threat of diminished revenues and increasing costs, which is like a
Double Whammy to its top-line, and bottom-line.
The increased awareness among the global consumers has turned the harsh glare
into each and every strategic move that the company makes. Some practices of the
company have been criticized which means that Unilever has to ensure that it
sustains and maintains its focus especially when the spotlight is on it.
As mentioned earlier, Unilever operates in a market segment where local products

and alternatives to its brands proliferate especially in the emerging markets and
hence, it faces a threat from smaller and more nimble local upstarts who can
provide more value for lesser money without the associated costs that global
giants like Unilever
3.6 UNILEVER MARKET SHARE

Unilever is a multi-national consumer goods company that produces food, beverages,
cleaning agents and personal care products. In 2014, the Unilever Group had a global revenue
that amounted to about 48.44 billion euros. The largest product segment of the Unilever
Group is their personal care segment, which accounted for 37 percent of the companies
global revenue share and generated approximately 17.74 billion euros in 2014.
This is some values that Unilever get from market :
Overview
Revenue of Unilever Group worldwide
Projected revenue of Unilever Group worldwide by 2020
European revenue share of Unilever Group
Operating profit of Unilever Group worldwide
UNILEVER
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Values
48,436m
$87bn
27%
7,980m
Unilever by Product Segment

Global revenue of Unilever Group in personal care segment
Global operating profit of Unilever Group in food segment
Unilever's skin care and hair care market share worldwide
Unilever's grocery market share worldwide
Unilever Brands
Brand value of Clinique
Brand value of Dove
Values
17,739bn
3,607m
12.9%
50.1%
Values
$5,986m
$5,821m
This is share of sales from emergung markets :
3.7 ACTIVITY BASED COSTING

Unilever not use activity based costing more because when Unilever first acquired the
Gloucester factory - along with three former Birds Eye Wall's frozen food sites - there was an
old system was hugely manually-intensive and all it did was produce paper-based reports, the
main purpose of which was to capture whether people had attended work or not. The
allocation of staff costs against specific products lines was a complex manual process
involving four full-time clerks and a HR department administrator.The costs were accrued
UNILEVER
Page 25
against each unique stock keeping unit (SKU) code although this was problematical due to
many obsolete product variants.
Now, Unilever UK Ice Cream then decided to replace the legacy system and switch to a timebased activity management solution. It has helped the company to cut administrative costs,
reduce absence, and gain a new insight into production activities. Unilever UK Ice Cream
owns the Wall's ice cream factory in Gloucester. Employing 486 people, there are ten ice
cream production lines making around three million ice cream products a day.Wall's-branded
products include Cornetto, Magnum, and Viennetta
This would extend the analysis capabilities from the simple categories such as 'production' or
'training' to more detailed activity codes.These would show which production line or officebased task was involved. Unilever wanted to get everybody to clock including the site
manager, their business drivers were about simplification and moving to an activity-based
costing model.
3.8 UNILEVER PRODUCTION PROCESS

The production process is concerned with transforming a range of inputs into outputs
Reviews those that are required by the market. It is the process production from one type of
product produced by Unilever, detergent surf.
Detergent Raw Material Preparation:
1. Active Ingredients.
The active ingredient must be present in the manufacture of detergents as a core material of
detergent. Chemically these chemicals may include sodium lauryl ether sulfate (SLES). SLES
is known by several trade names with the name texapone, cottoclarin, or ultra SLES. This
material serves to enhance the net, during use of these active ingredients have a lot of foam,
and gel translucent (pasta). Besides SLES, the active ingredient of the soap powder is salt
Linear Alkyl Benzene Sulfonate (LAS), forms a gel / paste light yellow. LAS function as
Ultra SLES, as the main cleaning agent manufacture of soap powder, with LAS, the soap
powder will be more easily rinsed / abrasive.
2. Materials production volume enhancer.
UNILEVER
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In its consumer, this material serves as a filler of the total raw materials. Provision of filler
material is intended to increase or raise the volume. Certain additives production volume here
using Sodium Sulfate (Na2SO4).
3. Supporting Materials
We can use the supporting material of soda ash (Na2CO3) in the form of a white powder. The
supporting material serves as a clean boost. The existence of these materials in the detergent
should not be too much, because it can cause heat effects on the hands when washing clothes.
4. Additive (additive)
Adirif prevents dirt back into clothes, this additional material should not actually exist in the
manufacture of detergents. One example of this additional material is Enzymes AR-shaped
white powder.
5. Materials deodorizer / Seed Perfume
One advantage of the presence of these fragrance materials is that a detergent with good
quality, Perfume is usually used for detergent shaped yellowish liquid. Selection of perfume
is very important, because usually consumers always feel the first fragrance of items to be
purchased, a new attempt to use the product.
Mix all the raw material to the equipment
Sodium Sulfate (Na2SO4).
SLES
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Page 27
NA2CO3
Enzymes AR
Parfume Seed
Process into a powder detergent

Raw
Material
Mixing
The hot
liquid
condensed
Raw
Material
(Liquid)
Packaging
UNILEVER
Crushing
Page 28
Powder
agglomera
te
The hot
liquid
condensed
3.9 QUALITY MANAGEMENT OF UNILEVER
The Quality Concept
Unilever thoroughly believeif they want to sustain stay in this market and maintain
product cycle follow the Six Sigma method . They do several things to maintain quality.
1.Uniliver research discovery system (Define and Measure)
UNILEVER
Page 29
They have made good research teams in varies countries to find data and information
of their product related things. Though that they apply additional stuffs to improve
their quality of products.
Stone Age diet may hold key to optimum nutrition
Unilever research is looking at what mans distant ancestors ate to see how it
could enhance modern-day nutrition.
How the brain shapes the taste of food
Unilever R&D partnered the University of Manchester in a project to understand

how a persons brain shapes the taste of their food, and how consumers make and
maintain healthy food choices.
Sound can change our perception of food
Background sound played during a meal can significantly affect how food
tastes, according toresearch conducted by Unilever R&D in collaboration with
the University of Manchester.
Is it possible to age more healthily?
Unilever is studying the relationship between genes and ageing to develop

technologies that
when translated into products
will help people remain healthy in their mid and later years.
2. Reducing environmental impact (Analyze)
Climate change is having an increase on the planet. Unilever aim is to make their own
activities more sustainable and encourage our consumers, suppliers and others to do
the same. Their aim is to double the size of our business, but to do this in a way that
reduces their total environmental impact. They have studied the lifecycle of their
products, from how they source raw materials to how consumers use and dispose of
the products and have identified the most significant environmental impacts. As part
of their Sustainable Living Plan, they have set ourselves a target to halve the
UNILEVER
Page 30
environmental footprint from the making and use of their products as Unilever grow
their business.
3.Health & well-being (Improve)
Unilever's unique portfolio of food, home and personal care products can make a
difference to the health and well-being of people everywhere. Every day people all
around the world use Unilever products from their first cup of tea in the morning,to
when they brush their teeth at night before going to bed. Many of Unilever products
have clear health benefits: eating margarine instead of butter can help reduce your
daily intake of saturatedfats while using fluoridated toothpaste can help protect teeth
from decay. As part of Unilever Sustainable Living Plan,Unilever have set ourselves a
bold new target for improving health and well-being: By 2020, they will help more
than a billion people take action to improve their health and well-being
4.Quality work force (Control)
It is vital, Unilever have people with the right talent, skills and creativity to support
our growth ambitions. To ensure our long-term prosperity, they want everyone to be
healthy, motivated andcommitted. As part of Sustainable Living Plan, they have set
ourselves new targets for creatinga better workplace. These include reducing
workplace injuries and accidents and improving employee health and nutrition
3.9.1 Cost of Quality
Unilever follow strictly the rules of the Japan Institute of Plant Maintenance, the name is
Total Productive Maintenance (TPM) is a business process improvement method,
developed from the perspective of maintenance management. TPM concentrates on
productivity improvement, primarily by way of maximizing the availability of equipment.
In the European Union, Unilever is one of the biggest propagandists of TPM. This food
multinational has used this improvement method for over 15 years, during which it has
grown into an overarching process management system. So, the implementation in
Unilever is done pillar-by-pillar. There are more then hundred steps, but Unilever do not
experience that as bureaucratic
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Total Productive Maintenance: the jargon

1. 5S
This refers to the five Japanese words seiri, seiton, seison, seiketsu, shitsuke. These
represent guidelines to organize and manage the workspace in such a way, that a visual
controlled and efficient production becomes possible. The key target of 5S is to keep the
workplaces clean and organized.
2. Dojo
Strictly speaking this is a sports centre for Japanese martial arts!. Within the framework of
TPM, a Dojo is however an internal training facility to practise this improvement method.
3. First time right
This expression emphasizes the importance of doing things correct the first time. After all,
rework will reduce the Overall Equipment Effectiveness!
4. Gemba
Gemba is a Japanese term for place where it happens, here this is the manufacturing
floor. The saying go to the gemba" means that managers should visit their shopfloor
frequently to discover problems and to help to realize improvements (go and see).
5. Kaizen
Literally this means adjusting a process (kai) to become good (zen). However, Kaizen also
stands for implementing small improvements, step-by-step.
6. Model machine
During the implementation of TPM, this machine is ahead of the other equipment
regarding optimization and standardization (by rolling out the TPM pillars)
7. Pillar
The goal of the management pillars is to improve low OEE-values in a targeted way. TPM
embraces at least eight management pillars, or areas of special interest. These are:
UNILEVER
Continuous (focused) improvement - kobetsu kaizen

Page 32
Autonomous maintenance - jishu hozen ('maintenance is a task of everyone)
Planned (preventive) maintenance
Training (with the aim to standardize the work)
Early (equipment) management: maintenance is taken into consideration when

new equipment is purchased. Another aim can be the optimal design of a new
production line, so that it intrinsically has a high OEE.
Quality management
TPM in the office: the optimization of administrative processes.
Safety and environment
8. SGA or Small Group Activity

A multi-disciplinary improvement group, with for example engineers, operators and
quality inspectors, tries to solve one specific problem that is responsible for a low OEEvalue.
Because of Unilever Bangladesh use TPM to their system production. Unilever
Bangladeshs manufacturing site at Kalurghat, Chittagong has been awarded the coveted
TPM Excellence Award by Japan Institute of Plant Maintenance (JIPM) - a subsidiary of
the Japan Management Association.
3.9.2 ISO 14001
Unilever environmental management systems are designed to achieve continuous
improvement. They are based on, and compatible with, ISO 14001. A diagram showing the
various elements of the environmental management system is given below.
UNILEVER
Page 33
All of Unilever manufacturing sites have implemented their Environmental Care

Framework Standards. These require Unilever operations to establish a formal environmental
management system. The framework is based on the ISO 14001 management systems
standard and is applicable to all parts of the business. Around 60% of our manufacturing
production volume is ISO 14001 certified. The remainder of Unilever sites are required to
comply with the Unilever Environmental Care Framework Standards, which are also based
on the ISO 14001 standard. These sites are audited either by a third party or by Unilever
personnel independent of the site being audited.
3.10 SUPPLY CHAIN SYSTEM

More people work in Unilevers global Supply Chain than any other function. Thats because
it encompasses a huge range of diverse roles that bring our products to consumers. From
sourcing raw materials from around the world, to manufacturing our products. It continues
all the way through to delivering our products through our logistics network to our retail
customers where our products can reach shoppers every day. And thats just part of what the
supply chain does
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Page 34
Broadly, Unilever splits our supply chain into four main areas:
Supply Management
UNILEVER
Planning
Page 35
Logistics & Customer Service (Retail)
Manufacturing
Supply Management Strategically deciding where Unilever should purchase their

materials (mainly ingredients and packaging materials) and working closely with their
suppliers to ensure they win together. Their Supply Management teams build strong
relationships with their suppliers to work together to improve cost and quality through
joint investment projects. These guys play a key role every day in ensuring our
factories have the materials they need both now, and for future innovations.
Planning This is at the heart of our supply chain and it starts with the consumer.
First Unilever have to predict what products their consumers will be buying both
tomorrow and in two years time. This forecast is the foundation for everything else
it shapes which factories produce which products around Europe; it guides exactly
what their factories plan to produce everyday and the deliveries that they need from
our suppliers just in time to support that production plan; and it allows us to plan how
much of each product we need to move to each country around Europe before it is
ordered by the retailers in that country.
Manufacturing Here Unilever convert all our raw and packaging materials into the
products our consumers love. Not only that, their factories have to respond to the
UNILEVER
Page 36
increases and decreases in demand that occur every day in the marketplace. The
main responsibilities for manufacturing are improving efficiencies, ensuring product
quality and reaching the correct output at the right costs. Theres a real breadth of
roles here, not just engineering type jobs, but plenty of roles where leadership of our
factory teams makes all the difference.
Logistics & Customer Service (Retail) This is the moment of truth can they
deliver the product a consumer wants to the right supermarket shelf? If this goes
wrong, then all the effort put in so far is for nothing. We work at the interface
between Unilever and their retail customers, working together to plan exactly what to
deliver and when to every single shop. Then it boils down to having the right
stock in our warehouses from our factories and having the transportation in place to
deliver that stock exactly on time to the retailer warehouse every day. Unilever also
work closely with the retailers to improve how reliably our products make it from
their warehouses all the way to the shelf
3.11 JIT SYSTEM
Unilever using just-in-time delivery system products. For example, when Unilever
send products to Carrefour. Carrefour will periodically count using sampling method
regarding what Unilever products are sold every day, (even more focused when the
weekend). And asks Unilever to deliver the amount of product that Carrefour need.
Therefore, it is certain Unilever send the products to the Carrefour in a timely manner
according to the situation of goods stock in Carrefour, because of that Unilever hpe
that customer are satisfied with the Unilever products.
3.12 CSR ACTIVITIES THAT ALREADY DONE BY UNILEVER
The Unilever Sustainable Living Plan is our blueprint for achieving our vision to
double the size of the business, whilst reducing our environmental footprint and
increasing our positive social impact.
Faced with the challenge of climate change and the need for human development, we
want to move towards a world where everyone can live well and within the natural
limits of the planet. Thats why their purpose is to make sustainable living
commonplace
UNILEVER
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Unilever ambition is to double the size of their business, whilst reducing their overall
environmental impact (including sourcing, consumer use and disposal). Unilever are
also committed to doing what we can to improve health, nutrition and hygiene, with a
target to help more than a billion people take action to improve their health and wellbeing, as well as sourcing all their agricultural raw materials sustainably by 2020. All
of these goals are itemised in around 50 time-based commitments in our Unilever
Sustainable Living Plan
CSR Press Releases, Events & Reports Comments

Type
Press Release
Press Release
Press Release
Event
Unilever Sees Sustainability Supporting

Growth
Securing a Sustainable Future for Tea
Unilever Expands Sustainable Living
Ambition
Making Progress, Driving Change: Unilever
to Host Live Webinar to Discuss its
Sustainable Living Plan
Press Release
Unilever Launches Breakthrough Packaging

Technology That Uses 15% Less Plastic
Press Release
Over 75% of Unilever's Factories Achieve

Zero Non-hazardous Waste to Landfill
Press Release
Unilever Lifebuoy Campaign Reduces

Diarrhoea from 36% to 5%
HRH The Prince of Wales Presents the First
HRH The Prince of Wales Young
Sustainability Entrepreneur Prize
Press Release
Press Release
Press Release
UNILEVER
Submission Title
Unilever, Symrise and GIZ Join Forces to

Support Vanilla Farmers99
Unilever Launches Project Sunlight - A New
Initiative to Motivate People to Live More
Sustainably
Page 38
Press Release
Press Release
100% of Palm Oil Bought Will Be Traceable

to Known Sources by End 2014
Press Release
Hygiene MUST be Recognised As Key

Intervention to Reduce Child Mortality
Press Release
Unilever Looks to Young Entrepreneurs to

Help Make Sustainable Living Commonplace
Report
Press Release
Press Release
Press Release
Unilever Sustainable Living Plan Progress

Report 2012
Unilever Sustainable Living Plan Helping to
Drive Growth
Unilever Factories and Logistics Reduce
CO2 by 1 Million Tonnes
Unilever Sources Over 1/3 of Agricultural
Raw Materials Sustainably While Growing
Business
Press Release
Unilever Reduces Waste By One Million

Household Bins Whilst Growing Business
Press Release
Unilever's Hygiene Brand Domestos To

Break Taboo Of The Loo
Press Release
Press Release
Press Release
UNILEVER
We Can't Wait - Governments, Civil Society

and Business Should Work Together to
Tackle Sanitation for Women's Health; Say
United Nations Organisation, Unilever and
WaterAid
Unilever Announces New Initiative in

Progress to Helping 1 Billion People Improve
Their Health and Wellbeing
Unilever Employees Spearhead Volunteer
Day On Statue Of Liberty National
Monument - Ellis Island
Unilever and the National Park Foundation
Announce $240,000 in Grants to National
Parks
Page 39
3.12.1 This is one example of CSR events that happened at Unilever :

Unilever Lifebuoy Campaign Reduces Diarrhoea from 36% to 5%
Unilevers health soap Lifebuoy has announced the results of its Help A Child Reach 5
handwashing programmes launched in Thesgora, India, noting an overwhelming drop in the
incidence of diarrhoea: from 36% to 5%
The decrease in diarrhoea in this village known for having one of the highest rates in India
of this deadly yet preventable disease was observed over the period of Lifebuoys
intervention in an independent evaluation of 1485 households with children aged below 12
years, conducted by Nielsen in September 2013.
Lifebuoys Help A Child Reach 5 campaign aims to eradicate preventable deaths from
diseases like diarrhoea through teaching lifesaving handwashing habits. The campaign was
launched with an award winning film Gondappa (www.youtube.com/helpachildreach5) and
handwashing initiatives in Thesgora, a village in Madhya Pradesh.
The results achieved show that handwashing programmes have significant positive impact on
both the handwashing behaviours and the health of a community. Lifebuoys handwashing
programmes are now being rolled out to villages across 14 countries (Bangladesh, Brazil,
Egypt, Ghana, India, Indonesia, Kenya, Malaysia, Nigeria, Pakistan, South Africa, Sudan,
Uganda and Vietnam) and scaled up in India to reach 45 million people.
Samir Singh, Lifebuoys Global Brand Vice President, explains, Lifebuoys Help A Child
Reach 5 campaign has demonstrated excellent results in Thesgora and we will now be
scaling up this campaign globally. To date, Lifebuoy has impacted the handwashing
behaviours of 183 million people in 14 countries and the results of our efforts so far prove
that when a social mission is embedded into a successful brands core values, significant and
indeed lifesaving change can happen fast.
Worldwide, one child dies from diarrhoea or pneumonia every 15 seconds, amounting to 2.1
million deaths each year. Handwashing with soap is the most cost-effective way to prevent
child deaths and contribute to Millennium Development Goal 4 (MDG4) towards reducing
UNILEVER
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child mortality. Put simply, the simple but lifesaving act of handwashing with soap could help
many more children reach the age of five.
More than 2.5 billion people still lack effective sanitation, good hygiene and safe drinking
water. Tackling these issues can achieve a big impact on the diseases that cause ill health and
cost lives. To achieve better health outcomes and lower costs Unilever will try to address all
three together. Unilever has leading brands Lifebuoy, Pureit and Domestos that can make
a difference in these three areas.
Next to the 183 million people reached by Lifebuoys handwashing programmes, Pureit is
providing safe drinking water to 55 million people. Both brands have worked closely with
others such as PSI, a Unilever Foundation partner. Domestos and the Unilever Foundation are
partnering with UNICEF to scale up its Community Approaches to Total Sanitation
programme.
This adds to the ambitious goal of Unilever to help more than a billion people improve their
hygiene habits by 2015. On 28 April this year, the Unilever Sustainable Living Report 2013
will be published, and it will confirm that Unilever has reached around 303 million people
through its programmes of handwashing, safe drinking water, oral health and self-esteem.
Unilevers health soap brand, Lifebuoy, puts its social purpose at the heart of its innovation
and engagement with consumers. The Lifebuoys handwashing programmes are not only
helping to change habits to combat disease expert studies have shown that washing hands
with soap at critical moments during the day can dramatically cut the incidence of lifethreatening diseases like diarrhoea. They are also driving volume growth in key markets.
Lifebuoy has achieved three years of double-digit growth to become the worlds number one
anti-bacterial brand.
3.13 ENVIRONMENTAL ACCOUNTING
Environmental accounting is a field that identifies resource use, measures and communicates
costs of a companys or national economic impact on the environment. Costs include costs to
clean up or remediate contaminated sites, environmental fines, penalties and taxes, purchase
of pollution prevention technologies and waste management costs. And this is an
enviromental accounting from Unilever :
Emissions & Energy
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The company's aim is to reduce the carbon intensity of manufacturing operations by

25% by 2012 (measured as tonnes CO2 per tonne of production against a 2004
baseline).
In 2008, the company reduced CO2 emissions by 1.6% per tonne of production
compared to 2007.
Unilever has reduced the carbon intensity of its energy use by 39% between 1995
and 2008. This represents a 43% reduction in absolute terms.
The company is investing in more efficient power and steam generation technology
and the development of less energy intensive manufacturing processes. For example:
In Europe, Unilever has at least three CHP plants which use waste steam and hot
water to generate electricity.
The Cu Chi factory in Vietnam uses solar panels to preheat water for steam
generation.
2m point-of-sale ice cream freezer cabinets are being replaced with energyefficient HC alternatives.
The company plans to reduce indirect impacts by working with customers and
suppliers to address wider impacts. For example, Ben & Jerry's has a Lick Global
Warming campaign and an ice cream flavour called Fossil Fuel.
Around 4m tonnes of CO2 are produced each year because of Unilever's transport
and product distribution requirements
Water
Unilever relies on water for:

Sourcing: the cultivation of agricultural raw material
Manufacturing operations: cleaning, cooling, as an ingredient
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Consumers: use of home care and personal products
Unilever aims to:

Reduce water in manufacturing
Work with suppliers on issues such as crop irrigation
Innovation on product design
Since 1995, Unilever has reduced the amount of water used per tonne of production
by 63% by minimising water use and maximising water recycling.
During 2008, there was a 3% reduction in water intensity compared to 2007 from
3.05 m3 to 2.96 m3 per tonne of production.
The water intensity of food production has dropped from 5.27 m3 in 2003 to 4.23
m3 in 2007 per tonne of production.
Products aimed at reduced consumer water consumption include the One Rinse
Comfort fabric conditioner. In Vietnam, One Rinse Comfort reduces the water needed
by two-thirds and sales rose by nearly 30% in 2008.
Waste
Waste intensity has reduced by 68% per tonnes of production between 1995 and
2008, despite a 4.3% increase in the last year (7.56 kg/tonnes in 2007 to 7.89
kg/tonne).
The company says this increase was due to:

Legislative changes
Under-capacity in effluent treatment
Planned disposal of accumulated and inherited hazardous waste
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Changing packaging design is one of the ways in which the company wants to use to
reduce waste impacts.
The PVC policy commits to replacing PVC in all packaging by the end of 2010,
where there are viable alternatives.
Resources
Agricultural and forestry crops make up around half by volume of raw materials used
by Unilever.
Unilever established guidelines for good agricultural practice based on 11 indicators

including water, energy, pesticide use and animal welfare. Growers and third-party
suppliers are encouraged to comply.
Following a public challenge by Greenpeace, Unilever has agreed to draw all their
palm oil from certified sustainable sources by 2015.
Unilever have also agreed to support a moratorium on further deforestation in SouthEast Asia.
At the end of 2009 around 80% of Lipton Yellow Label and PG tips tea sold in
Western Europe came from Rainforest Alliance Certified farms
Unilever also uses paper and board, plastic, glass, aluminium, steel and mixed
material laminates (for sachets and pouches) in its manufacturing processes.
3.13.1 Benefit for Unilever that applied environmental cost

Cost savings and reduced environmental impact through lower energy and water
consumption
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A Unilever plant in Ontario, Canada, has an ongoing

campaign to improve energy efficiency to help manage rising and unpredictable energy
prices. The plant produces margarine and other vegetable oil products expenditure on
energy represents 15% of all production costs. To meet an aggressive goal of reducing energy
consumption by at least 6% per year, the plants energy team has implemented, and carefully
documented, 120 projects since 1999, saving more than $4.2m in costs (based on 2006
prices), and avoiding about 23,000 tonnes of greenhouse gases.
By 2003, the energy team had exhausted many of the more obvious ways for reducing energy
consumption, so needed to find more innovative ways to meet the ongoing goal of 6%
reductions per year. One of the solutions was to invest in new technology a reverse osmosis
(RO) system that would enable significant, measurable improvements in the efficiency of the
steam plant operations.
In the first year of operation, Unilever calculated that the project would lead to net savings of
$378,166 (based on 2006 prices), even after accounting for the full cost of operating and
maintaining the RO system. It is expected that the technology will pay for itself in less than
16 months.
By converting to the RO system, the plant is consuming 13 million gallons less municipal
water, with an associated cost saving of $68,000; and 8% less natural gas, saving $299,000.
The plant is also saving nearly $25,000 in boiler and softening chemicals, releasing 240,000
less pounds of chemicals into the sanitary sewer. As a result of consuming fewer chemicals,
the environmental impact of producing and transporting them was reduced too. There were
other benefits, such as savings in labour and storage costs and less back breaking work for
employees. The RO system qualified the plant for a $50,000 incentive grant from the city of
Toronto for decreased water consumption and a $14,000 incentive grant from the local gas
utility. According to Unilever, the project was easily justified by the direct financial benefit
to Unilever, but we are also proud of the environmental benefits. The project has lead to the
company reducing carbon dioxide emissions by 1.6 million tonnes as well as cutting other
greenhouse gases.
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13.14 TBL (TRIPLE BOTTOM LINE) OF UNILEVER

A surging global population, diminishing natural resources and poor land management
together threaten both the planets and businesses long-term viability. In recent years more
companies have focused more on environmental, economic and social issues, but compliance,
not sustainability, has been the main driver. But a shift in attitudes is occurring:
Environmental degradation, reports of human rights abuses and the 2008 global financial
crisis shattered consumers confidence in companies and their brands. And in an age in which
social media influences consumer behavior more than traditional advertising, it is now the
customers, not companies and their advertising agencies, who drive the conversation. Within
that conversation, customers and stakeholders are demanding companies to become more
transparent, socially conscious and environmentally responsible. Sustainability can both
rebuild consumer trust in companies and lay the foundation for their long-term financial
success in a volatile and resourced-stressed world.
But it is not enough for companies to create a sustainability or corporate social responsibility
(CSR) program and treat such initiatives as a separate function from finance, marketing,
human resources or legal. The drive towards a more sustainable company requires an
integrated strategy in which sustainability is embedded, not compartmentalized in a silo
within a companys organizational structure. A companys brands can help launch such a new
approach because the loyalty, affinity, trust and reputation they engendered among consumers
can become a force for environmental stewardship, social good and economic development.
Unilever, the multinational $60 billion consumer products company that is home to iconic
brands including Dove, Lipton and Ben & Jerrys, is a leading example of how brands, rather
than a CSR department, can lead this new business paradigm and inspire social innovation,
encourage more sustainable behaviors and improve the lives of people loyal to those brands.
This is a Triple Bottom Line of Unilever :
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1. Environmental
We want to play our part in tackling climate change and the depletion of natural resources. It
makes business sense to reduce our risk by securing sustainable sources of supply for raw
materials, to cut costs through reducing packaging materials and higher manufacturing
efficiencies, and to appeal to more consumers with sustainable brands.
On the planet level, Unilever is doing a lot of environmental based initiatives with reducing
energy and water consumption, recycling, reducing waste, carbon emissions, reduced
packaging and more. Unilever focus on enviromental, which is :
Tackling climate change by eliminating deforestation

Developing sustainable agriculture and smallholder farmers
Helping consumers use less water, less energy and recycle more
Making manufacturing and distribution more eco-efficient
Advocating for public policy to tackle climate change.
This are that Unilever perfomance do for enviromental around the world :
Since 2010 it claims to have reduced greenhouse emissions per customer by 6%
(defined as the making and use of products).

Sustainable sourcing of agricultural raw materials 55% in 2014 versus 14% in 2010
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Water associated with consumer use of Unilever products down 2% versus 2010
Waste associated with the disposal of Unilever products down 12% versus 2010
In manufacturing, CO2 emissions from energy now 37% below 2008 levels; water
abstraction down 32%; and total waste sent for disposal down 85% (all measured per
tonne of production)
Unilever global factory network achieved zero non-hazardous waste to landfill by end
2014
2. Economic
Unilever had to focus on issues offering opportunities for growth, long-term success in key
markets, continuous innovation and of course for these brands, a strengthening of consumer
trust. The sweet spot for Unilever was where products that benefited society could also spur
the companys continued growth. The conventional approach towards conducting business for
most companies, the pursuit of profits at any environmental or social cost, was no longer
tenable. Nor could the company pursue a quixotic course of doing good while losing money
that was hardly a sustainable course for Unilevers employees and shareholders.
The sweet spot that Unilever implemented in their bussines :
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With this sweet spot Unilever get the sales growth rose 3.7%, the multinational consumer
goods company announced on 24 July 2014
Unilever fell that this is the first half again shows consistent top and bottom line progress
despite significant headwinds. Markets have been challenging and we have experienced a
further show-down in the emerging countries, while developed markets are not yet picking up
Magnum mini varietyIce cream brands performed well. Magnum benefited from a strong
program of activities including its 25th anniversary, the launch of Magnum Infinity in the
United States and Indonesia, and the introduction of Magnum Mini in Brazil.
Ice cream is part of Unilevers refreshment product group, which generated EUR 4.9 billion
in turnover (+5.1% in sales and +3.3% in volume). Receipts in the foods category slipped to
EUR 6.1 billion (-0.5% in sales and -0.9% in volume). Personal care products accounted for
EUR 8.6 billion of revenues (+4.5% and 2.4%, respectively), while home care products
generated EUR 4.5 billion (+6.8% and +3.7%, respectively)
3. Social
This are for the employee :
The makers of Lifebuoy and Lux soaps focused on employee well-being and
security,
With one of its most generous programs being the construction of employee
housing adjacent to its factory.

Employees also benefitted from a fixed work week, enjoyed paid holidays and
enrolled in health and safety programs atypical of that era.
The eventual results, which led to the November 2010 launch of Unilevers Sustainable
Living Plan, ranged from the companys promotion of life-saving behaviors to its funding and
organization of renewed economic opportunities. Examples abound throughout Unilevers
brand portfolio:
Lifebuoy, a decades old brand of soap embedded in our popular culture, has the
potential to teach one billion people how to stop the spread of disease simply by
washing their hands effectively.

Flora and Becel, plant-based margarine products, encourage customers to be proactive
about their heart health.
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Lipton improves the lives of farm workers while improving the land on which they
cultivate the brands tea, through the purchase of more Rainforest AllianceTM-
certified tea.
Suave is tasked with motivating customers to consume less water while using its line
of shampoo and body washes.
Unilever has taken a holistic approach towards sustainability challenges by leveraging the
strengths of brands, not programs, to strive for that triple bottom line of people, planet and
profit. Whether teaching, rewarding or conserving, each Unilever brand now is responsible
for a push to change consumer behavior for the better, increase sales and inspire social good
over the next decade.
CHAPTER IV
CONCLUSION AND SUGGESTION
Conclusion :
By my analysis I have found that, Unilever is globally successful company. They create
brands for specific countries nd regions. Products for example, found in south America will
not found in south Asian countries. Since difference in culture exists worldwide, tthe creation
and supply of brands have to be taken seriously. The Unilever products are able to gain
customer satisfaction and trust. Their production and distribution is expading rapidly.
Unilever is starting to consider how they make Unilevers corporate commitments and
activities more visible and relevant to their consumer
Suggestion :
Unilever has room for further improvement. A recommendation is to improve policies to
accommodate diversity. Higher diversity is inevitable in global business, and the company
must take advantage of it. Also, Unilever can implement improvements in information
technologies. These technologies can support workers in all areas through advanced tools for
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Page 50
market research, customer relations and internal communications. These improvements can
help strengthen the firms organizational culture of performance.
I suggest to Unilever to emphasize again on their product development strategy. Unilever as
the market leader, must innovate and improve product quality them.If Unilever not to
innovate and improve product quality, consumers will feel bored to their products, so that
customer satisfaction will decrease, the red light for Unilever.
REFERENCES
https://www.unilever.com/about/safety-and-enviroment/environmental-safety
https://www.unilever.com/about/safety-and-enviroment/environmental-sustainability/
http://www.crowncomputing.com/wp-content/uploads/2012/04/Unilever.pdf
https://www.unilever.com/investor-relations/annual-reports-and-accounts/
http://www.csrwire.com/members/16348-Unilever
https://www.unilever.com/careers/professionals/supply-chain/
http://www.euromonitor.com/unilever-group-in-beauty-and-personal-care/report
http://www.bloomberg.com/bw/articles/2013-01-03/in-emerging-markets-unilever-finds-apassport-to-profit
http://spiderbook.com/unilever-competitors.html
http://www.academia.edu/3229962/CSR_Practice_and_Reporting_in_PT_Unilever_Indonesi
a_Tbk
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https://www.unilever.com/sustainable-living/the-sustainable-living-plan/reducingenvironmental-impact/eco-efficiency-in-manufacturing/environmental-management-system/
https://www.academia.edu/4179474/Managing_quality_at_Unilever
https://www.unilever.com/about/who-we-are/our-strategy/
https://www.unilever.com/brands/
http://www.csreurope.org/unilever-sustainable-tea-certification-lipton-rainforestalliance#.Vlu_dnYrLIU
UNILEVER
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MODULE ASSIGNMENT COST MANAGEMENT

Jakarta, 3th December 2015

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CHAPTER II COMPANY PROFILE

CHAPTER III ANALYSIS

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CHAPTER IV CONCLUSION AND SUGGESTION .............................................. 48

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1.2 The Balanced Scorecard (BSC)

1.4 Activity-based costing (ABC)

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A supply chain is a system of organizations, people, activities, information, and resources

1.8 Just-in-Time Systems

1.10 Environmental Accounting

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or remediate contaminated sites, environmental fines, penalties and taxes, purchase of

2.1 BRIEF HISTORY

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1.2 LIFE PARTENRS

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We work to create a better future every day.

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Lower cost products with best quality

Unilever competes with Procter & Gamble

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Unilever competes with Revlon

perspirants/deodorants and personal care products.

Unilever competes with Nestle

Unilever compets with Reckitt Benckiser

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3.3 BALANCED SCORECARD

Improvement in trade ROI (return

Unilever business strategy is

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Stimulating and facilitating best-practice creation and sharing,

TOOLS FOR FINANCE BUSINESS PARTNERS :

within customer development with tips on

in trade ROI (return on investment), which

structure, resources to stay abreast of retail

fueled increases in advertising

trends, and a framework for assessing

and share growth.

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customers and channels based on opportunity

1. CONSUMER VOICE: HEAR AND LEARNING FROM CONSUMER

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Learning and Growth

Unilever embraced innovative business partnering to maximize the value of finance to

Better measurement (consistent, external, brand health focus),

ensuring visibility and alignment around key

supported a global marketing campaign to

celebrate the natural physical variation all

3.4 VALUE CHAIN

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INSIGHTS FOR INNOVATION

A dedicated team is responsible for

To meet Unilever Vision unilever

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