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Introduction:
Unilever is one of the worlds largest suppliers of fast moving consumer goods across foods,
home and personal product categories. Unilevers portfolio includes some of the worlds best
known and most loved brands.
Today, Unilever still believes that success means acting with the highest standards of corporate
behavior towards its employees, consumers and the societies and world in which we live. Over
the years it has launched or participated in an ever-growing range of initiatives to source
sustainable supplies of raw materials, protect environments, support local communities and much
more.
Through this timeline youll see how its brand portfolio has evolved. At the beginning of the
21st century, Unilevers Path to Growth strategy focused us on global high-potential brands and
Unilevers Vitality mission is taking us into a new phase of development. More than ever, our
brands are helping people feel good, look good and get more out of life a sentiment close to
Lord Leverhulmes heart over a hundred years ago.
1.2. Background of the Study:
In preparing my term paper and make it successful.We had take help and guidance of some
Bonaire person. First of all, We would like to offer our deep gratitude, complements and heartfelt
thanks and regard to our respective supervisor Mr. Mahbub Parvez, Senior Lecturer, Daffodil
InternationalUniversity. We express our profound indebtedness and gratitude to our other
classmates for their valuable advice that helped in preparing this term paper.
We have collected data and informations from the website of Unilever of Bangladesh,
Internet, media, and newspaper to preparing our term paper.
1.3. Significance of the study:
The purpose of my preparing term-paper is to know practically know the organizational
practices of the company Unilever Bangladesh Ltd. and become familiar with their activities.
1.3. Methodology:
Necessary documents are prepared by the Web Site. All datas and information are collected from
secondary sources.
1.4. Limitation of the study:
The term-paper was about the changes of the financial condition of the company, but as the
company is not listed with Dhaka Stock Exchange, proper financial data has not been found. I
could not get remarkable information related my topic. Even no article was received in that way
from Internet.
2. Analysis of Unilever Bangladesh:
2.1. Introducing Unilever:
150 million times a day, someone somewhere chooses a Unilever product. From feeding your
family to keeping your home clean and fresh, our brands are part of everyday life.
2.2. Life partner:
With 400 brands spanning 14 categories of home, personal care and foods products, no other
company touches so many peoples lives in so many different ways.
Its brand portfolio has made us leaders in every field in which we work. It ranges from muchloved world favorites including Lipton, Knorr, Dove and Omo, to trusted local brands such as
Blue Band and Suave.
From comforting soups to warm a winters day, to sensuous soaps that make you feel fabulous,
our products help people get more out of life.
Were constantly enhancing our brands to deliver more intense, rewarding product experiences.
We invest 1 billion every year in cutting edge research and development, and have five
laboratories around the world that explore new thinking and techniques to help develop our
products.
2.3. Continuous development:
Consumer research plays a vital role in our brands development. Were constantly developing
new products and developing tried and tested brands to meet changing tastes, lifestyles and
expectations. And our strong roots in local markets also mean we can respond to consumers at a
local level.
By helping improve peoples diets and daily lives, we can help them keep healthier for longer,
look good and give their children the best start in life.
We also believe that the very business of conducting business in a responsible way has a positive
social impact. We create and share wealth, invest in local economies and develop peoples skills
both inside our organization and in the communities around us.
Today Unilever employs 223 000 people in 100 countries worldwide, and supports the jobs of
many thousands of distributors, contractors and suppliers.
First launched in France in 1983, our leading male grooming brand, Axe, now gives guys
the edge in the mating game in over 60 countries
Our oral care brands Mentadent, Peposodent and Signal have teamed up with the worlds
largest dental federation, the FDI, which represents over 750,000 dentists around the
world
Lux became the first mass-marketed soap when it launched in 1924. Today it achieves
annual global sales of over 1 billion
Hindustan Lever in India has launched a hand-wash product, Surf Excel Quick Wash,
with a low foaming formulation, reducing the amount of water needed for rinsing by up
to two buckets per wash
2.5. Foods:
Knorr is our biggest food brand with a strong presence in over 80 countries and a product
range including soups, sauces, bouillons, noodles and complete meals
Theyre the worlds largest ice cream manufacturer, thanks to the success of our Heart
brand which includes Magnum, Cornetto, Carte dOr and Solero, and Ben & Jerrys and
Brayers in the US.
Liptons tea-based drinks include the international Lipton Iced Tea range, the Lipton
range in North America and Lipton Yellow Label, the worlds favourite tea brand
Becel / Flora pro-active products have been recognized as the most significant
advancement in the dietary management of cholesterol in 40 years
in the mid 1990s we led the industry with our programmed to eliminate almost all trans
fat from our margarine.
Ads, our soy-based fruit drink, has been growing at the impressive rate of 35% since its
launch in 1997 in Latin America.
Unilevers corporate mission to add vitality to 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 its history.
In the 1890s, William Hesketh Lever, founder of Lever Bros, wrote down his ideas for Sunlight
Soap his revolutionary new product that helped popularizes 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 unilevers products.
This was long before the phrase Corporate Mission had been invented, but these ideas have
stayed at the heart of unilevers business. Even if their language and the notion of only women
doing housework has become outdated.
In a history that now crosses three centuries, Unilevers success has been influenced by the major
events of the day economic boom, depression, world wars, changing consumer lifestyles and
advances in technology. And throughout unilever has been created products that help people get
more out of life cutting the time spent on household chores, improving nutrition, enabling
people to enjoy food and take care of their homes, their clothes and themselves.
2.10. Social Responsibility of Unilever Bangladesh Ltd:
The Unilever Bangladesh Ltd. is a well known business organization in our country. The
business of Unilever is very old in Bangladesh. It has many products in local and world market.
They have also good relationship with Bangladeshi general people by their social work. They are
trying to involve many types of social responsibility. Like as:
Close Up 1 Contest.
Floating hospital
Education
a. Close up 1 Contest:
In this year close up 1 is a well known contesting program in NTV. First it was arranged by
Unilever in 2005. Now it is the second time to find out the best new singer in 2006.
The
contesters will be 15 to 30 years old. Nolok Babu was the champion of close up 1 2005. For the
contest of 2006 registration is running. The media partner of this contest in NTV, web partner is
Bangladesh info.com and call centre partner is City cell.
This contest is helpful to find out our national assets. So it is too good social work to find out our
assets. At last we can say that it is very helpful to our society. So we should help them and try to
welcome this kind of social work.
b. Floating hospital:
Aklima now has one of the biggest smiles in her class. She wasnt always so cheerful. Born with
a cleft lip, Aklima used to feel self-conscious and shy when smiling in front of her classmates.
That was before the LifebuoyFriendshipHospital pulled up on her stretch of remote sandbank on
the River Brahmaptura in Bangladesh. Aklima is one of over 172 000 people to have been helped
by the Unilever-sponsored hospital ship since it set sail four years ago.
None of my friends calls me cleft lip anymore after my operation at the
LifebuoyFriendshipHospital, she beams.
c. Balancing profit with corporate behaviors:
In the late 19th century the businesses that would later become Unilever were among the most
philanthropic of their time. They set up projects to improve the lot of their workers and created
products with a positive social impact, making hygiene and personal care commonplace and
improving nutrition through adding vitamins to foods that were already daily staples.
Today, Unilever still believes that success means acting with the highest standards of corporate
behavior towards our employees, consumers and the societies and world in which we live. Over
the years weve launched or participated in an ever-growing range of initiatives to source
sustainable supplies of raw materials, protect environments, support local communities and much
more.
Through this timeline youll see how our brand portfolio has evolved. At the beginning of the
21st century, our Path to Growth strategy focused us on global high-potential brands and our
Vitality mission is taking us into a new phase of development. More than ever, our brands are
helping people feel good, look good and get more out of life a sentiment close to Lord
Leverhulmes heart over a hundred years ago.
d. Education:
i. Promoting equal opportunities:
Faria Lara Foundation is a voluntary organization working in the remote village of Halta
Dawatala in Bamna Upozila, Barguna District, in the south of the country. FAL Foundation
came forward to work with this organization to assist semi-urban female students to acquire
spoken/written English and basic Computer skills after their SSC Exam and help them to
compete with their urban peers.
In the scholarship program FAL Foundation provided a scholarship worth Taka 25,000 to 200
female students (who have passed their HSC Exams in 2003) to pursue 4 year under-graduate
studies in the fields of Arts, Commerce, Science , Engineering, Higher AgroScience, and
Medicine. More than 2000 applications were received.
After a rigorous need and merit assessment and a final interview conducted by renowned
professionals from various fields, the final 200 were selected and awarded at a grand event at
Hotel Sheraton in Dhaka in June. The scholarships are disbursed in installments following
submission of academic records showing good performance every year by each awardee.
3. Company structure:
In this section I can find out how the business is organized and details of our corporate
strategy and Vitality mission.Unilevers new organization provides single point accountability
and has fewer management layers to deliver faster decisions and faster execution.
3.1.Unilever challenges:
Here are a few examples of the everyday challenges we face. Theyre why we need highly
creative people who want to make a difference and work with some truly exceptional brands.
i) Toothpaste tubes into tables:
At Unilever, we know that visionaries are as valuable as magicians. If you could look at the
waste from a toothpaste factory in Brazil and see an opportunity to make chairs, tables, floor tiles
and even roofing sheets, you might fit right in (99% of all solid waste generated at the factory is
re-cycled).
ii) A crocodile in the sump:
When the manager of our Ponds skincare plant in Central Africa got to work one morning, he
found a rather large problem with the drains: a crocodile in the sump, no less. But he saved the
day (and the crocodile) and got the plant running again. Then again, we expect our people to rise
to any challenge even if theyre not all as scary as this one.
iii) Iodine deficiency:
Could you solve a nations problem by thinking very small? Iodine deficiency in India is serious,
particularly among children, as it is detrimental to their development. Our solution was a small
but clever one: refined iodized salt sold in small, affordable sachets that would not last long
enough to degrade in the sun.
iv) Yellowstone Park:
Were looking for people who believe this is the best place to dump four million plastic detergent
bottles.
v) Striving to be number one:
When your business is striving to be number one, you need people who cant bear coming
second.
vi) Egg yolks & oil:
Unilever produces 101 new things to do with egg yolks and oil?
vii) Dirt is good:
We believe dirt is good. Not surprisingly were looking for people who arent afraid to get their
hands dirty.
3.2. Overview of Unilever Ltd:
Every day, 150 million people choose its brands to feed their families and to clean
themselves and their homes.
Over half of its sales are generated by our Foods brands, which include Knorr,
Flora/Becel, Hellmanns, Lipton, Igloo / Birdseye / Findus, Rama / Blue Band, Slim Fast,
Bertolli and the ice cream heart brand.
In many parts of the world it leads the home care market with brands such as Omo, Surf,
Skip, CIF and Comfort.
Its leading personal care brands include Dove, Lux, Sunsilk, Ponds, Axe/Lynx and
Rexona.
In 2003 it spent 1,065 million on research and development 2.5% of its turnover.
At the end of 2003, it was buying more than half our fish from sustainable sources.
Strong roots in local markets and first-hand knowledge of the local culture.
Focusing on performance and productivity, it encourages its people to develop new ideas and put
fresh approaches into practice. Hand in hand with this is a strong sense of responsibility to the
communities it serves. Unilever dont only measure success in financial terms; how it achieve
results is important too. It works hard to conduct its business with integrity respecting our
employees, our consumers and the environment around it.
Unilever is one of the worlds leading suppliers of fast-moving consumer goods. Here are some
recent highlights from our three global divisions Foods, home care and personal care.
3.4. Other operations:
To support its consumers brands, it has invested tea plantation in India and Africa and palm oil
plantation in Africa.
In 2004 Unilever reviewed the purpose of its venturing activities and decided to increase the
funds available for investment to 250 million and to extend the period to five years (20022006). These funds are invested in venturing activities to build business interests in Foods and
Home and Personal Care. Up to 120 million will be invested over the five years, in two venture
funds of its own, Unilever Ventures and Unilever Technology Ventures. As at 31 st December
2004 it has invested 100 million in all its ventures activities.
b. Technology and innovation:
In 2004 Unilever spent 1040 million on research and development, representing 2.6% of its
turnover. Its R&D groups respond to emerging consumer insights-and supply a stream of
innovation.
Corporate Research and Unilever Technology Ventures search out and identify new technology,
which is fed through to the divisional R&D programs.
Foods and HPC also use external scientists who are at the forefront of their own fields to review
their R&D programs and ensure that they are at the leading edge of scientific excellence.
In Home Care, it continued to roll out new technologies under the Omo brand, including laundry
bars optimized for great cleaning performance in Africa and Asia.
The Radiant brand launched new formulation to improve fabric color protection in South Africa.
In Personal Care, there have been important global initiatives. Dove has been freelanced with
new graphics and packaging across skin, hair and deodorants. Lax launched a new range of bars,
with step change in sensorial benefits, together with outstanding fragrances and new packaging.
Axe deodorant in North America now offers longer-lasting fragrances, while in other regions 247 and the new Touch variant have been launched.
4. Findings:
We have mention earlier that, due to the company is not listed with the Dhaka Stock Exchange
market, so we could not produce the actual financial data of the company to find out the cost
efficiency. But after collecting some economic information, our logical thinking has come out
with this concept that, the company has reduced its cost tremendously during last four years. It
has reduced its cost by its supply chain management and now it is become a very important
department of the company. In every steps of its supply chin management it is reducing its costs,
which brought high profits to the company. We can explain the fact by emphasizing its supply
chain factors and the negotiations of the company with its suppliers of raw materials.
5. Results:
It is obvious that, Unilever Bangladesh has reduced its cost by its supply chain management. If
we look at the inflation rate of the country from the financial year 2000 to 2004, we can easily
understand why prices of the products increased. The following chat shows the inflation rate of
Bangladesh.
Inflation rate of Bangladesh:
YEAR
INFLATION RATE
2000
2.8%
2001
1.9%
2002
2.8%
2003
4.4%
2004
5.8%
From the above mention chat, we can see that inflation rate has been increased gradually. It is
obvious that the price of the product in the year 2000 has increased in the year 2004. That means,
suppose in the year 2000 we could buy one kilogram of rice by 15/-tk, but in the year 2004 we
cannot buy the same quantity of rice with the same price. Because the value of money has
devalued, which means the worth of money is not the same as before. We cannot buy same
product which we used to buy with the same amount of money earlier. As the exchange rate has
also been rose during last couples of years, the inflation rate is also the same. Due to inflation
rate, the price of any product will increase and if the raw materials are to be brought from
abroad, it will cost much more because side by side, exchange rate has also been increased.
Considering the above facts, the products of Unilever should have increased which would be an
obvious matter. But the amazing part is that, it has kept the same price level during the last five
years. As we all know, that Lux Beauty Soap is a well known and popular product of Unilever.
If we recall five year back, we will see the price of the soap was at the same price level, in which
level it is still now.
Secrete of this miraculous activity of Unilever Bangladesh Ltd is its effective supply chain
management. It has managed its supply chain in such an efficient manner that it has able to keep
its price level of its products at the same level throughout last five years. So, we can say that,
supply chain management has put a great effect on reducing the cost of the company.
8. Conclusion:
Unilever Bangladesh Ltd. is very popular organization of Bangladesh. They are trying to social
work for Bangladeshis people. In my opinion they are doing some important work for this
society. And they will also improve in future.