Pearson

About Us: Pearson Plc.is the world's largest education company that has headquarter in
London, United Kingdom. At present it has over 35,000 employees working in more than 70
countries providing wide variety of educational products and services to various institutions,
governments and individual learners with the aim of helping people to aim higher and fulfill
their true potential.

Revenue:€4.552 billion– FY 2016

SWOT Analysis:

The SWOT analysis for Unilever is presented below:

Strengths Weakness
1. 1. Decline in Grocery Segment
2. Strong Popular Brands 2. Dependence on Distributors and
3. Evolving Portfolio and Developing Retailers
Channels
4. Substantial Strategic Investments to
Drive Growth
5. R&D Focus and Integrated Supply
Chain
Opportunities Threats
1. Collaboration with Microsoft 1. Global and Regional Competitors
2. Growing Demand for Premium and 2. Private Label Brands from Retailers
Specialized High-End Products in 3. Divergent Global Market Environment
Skin Care Segment
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Strengths

1. Colloration with Microsoft: In October 2016, Microsoft has partnered with global
education company Pearson, to work on integration of 3-D and mixed reality into its
secondary and university level curriculum. Both the companies are planning to transform
HoloLens into various learning tools including online tutoring and coaching. By the
school year 2018, Pearson will offer curriculum in health, commerce, history and
science, technology, engineering and mathematics (STEM) on Windows Mixed Reality
devices.

As the current generation of students is well-versed with laptops, i-pads, and smartphones,
these innovative methods of teaching guarantee more participation from students. To cater
to the school students’ needs, education providers such as Educomp, Tata Class
Edge, Pearson, and TeachNext have been coming up with interactive software to aid
teachers in classroom teaching. However, usage of digital technologies in institutes of higher
education is still in its nascent stages and efforts are being made to fine-tune these
technologies to adapt to the needs of University students

The same quality of education is not maintained in tier-3 schools and universities in both
rural and urban areas. For this reason, IIT has introduced the National Programme on
Technology Enhanced Learning (NPTEL), a government funded initiative,

Schools across the country are using technology seamlessly to engage with students and
achieve desired results through well-planned learning methods. Most schools utilize digital
tools such as smartboards, LCD screens, audio-visual videos, digital recordings of older
lectures and so on to teach children difficult as well as easy concepts.

There is a long way to go for digital education to gain momentum in India, as the majority of
India lacks the required digital bandwidth. A few of the roadblocks faced are infrastructure
issues and digital literacy. Moreover, the course content is fragmented, as it is taught in
many languages and not available on any single vendor platform.

However he contends that there are other on-the ground challenges that universities have to
deal with. “There is very unrealistic teacher-student ratio. The University Grants Commission
(UGC) should release funds to implement these digital services. With the ever increasing
teacher student ratio, it becomes very unrealistic for a teacher to give complete attention to
his students. For example, to teach the subject of ‘Commerce’, sometimes, there is one
teacher who is probably teaching nearly 400 students in a year. Monitoring this kind of
exchange will be very difficult and all colleges and schools should upgrade their technology.”
Another problem is of reluctance on the teacher’s part to get trained and adopt digital
technologies. The primary teachers have been forthcoming in using these tools, but a few
senior teachers from high school are of the impression that these disruptive technologies are
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out to replace them permanently. Added to this is the frequent problem of power cuts and
voltage fluctuations causing network issues.
Digital Education in India Frost Perspectives Information & Communication Tech. 28 Apr
2016

Pearson’s commercial LMS solutions work with educators to design, build, and support
online courses.
They provide on-demand software services such as course management, virtual campuses,
assessment,
reporting, and retention monitoring tools and support services. Pearson’s solutions are also
somewhat
positioned around its content. Apart from these, OpenClass is an open source offering from
Pearson that
is completely free and easy to use. Pearson’s LMS solutions have over 10 Million end users.

In the LMS Space Blackboard is the market leader with 63.6% market share whereas Pearson
currently has 6.1%..

Internet of Things (IoT) in education crossed $11,806 Million in revenue in 2015. The IoT in
education market is characterized by the need for a connected learning ecosystem to
measure learning outcomes across digital learning solutions to improve graduation rates,
improve faculty effectiveness, and minimize operational inefficiencies.

Major trends in IoT in the education market include increased integration across digital
learning solutions in the education ecosystem, utilization of Big Data Analytics to impact
student learning outcomes, hyper-connectivity to bridge the global digital divide, and an
increase in lifelong learners.
• In an extremely competitive market, customers value an easy to use, seamless user
experience across digital learning solutions and devices, analytics that are actionable and
ongoing professional development for faculty and administration, training support for IT
teams, and an attentive customer support.

Append the list for Queries 1) Do we have to fill up NMIMS details in the fields specified for
Post Graduation Details or is it just for those who have done PG prior to joining NM?

2) What are the requirements of casual photograph?

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References

1. UnileverAnnual Report
2015:https://www.unilever.com/Images/annual_report_and_accounts_ar15_tcm244-
478426_en.pdf

2. Unilever Investor Presentation Nov 2016: https://www.unilever.com/Images/2016-

unilever-investor-event-graeme-pitkethly-unlocking-value_tcm244-496165_en.pdf

3. Why is Unilever Rushing Towards Premium Personal Care Brands?:

http://www.forbes.com/sites/greatspeculations/2015/08/18/why-is-unilever-rushing-
towards-premium-personal-care-brands/#28db0de4688d

4. Size of the global skin care market from 2012 to 2021:

https://www.statista.com/statistics/254612/global-skin-care-market-size/

5. Skin Care Products Market Size Is Projected To Reach USD 196.67 Billion By 2024:
Grand View Research, Inc: https://globenewswire.com/news-
release/2016/07/11/854902/0/en/Skin-Care-Products-Market-Size-Is-Projected-To-
Reach-USD-196-67-Billion-By-2024-Grand-View-Research-Inc.html
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PESTLE Analysis:
The PESTLE analysis for Unilever is presented below:
Political Economic
1. Trade protectionist policies of Trump
1. Conflict with distributors over product price
administration rise due to currency impact of Brexit
2. Sharp fluctuations in currency markets
Social Technological
1. Growing demand for premium skin- 1. Implementation of integrated supply chain
care products in emerging markets with Ultralogistik
2. Leveraging ‘People Data Centres’ to
understand consumer behaviour
Legal Environmental
1. Regulatory approvals delay decision 1. Actionable steps to address climate
making and business growth change within the value chain
2. Change in tax laws and regulations
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Political

1. Trade protectionist policies of Trump administration: Increased protectionism

policies impacts global trade and more often than not these are influenced by political
factors and issues. Unilever being a European company may find difficult market
conditions for operating in the U.S as new regulations are likely to be introduced
affecting foreign companies. Trump administration has already withdrawn from Trans-
Pacific Partnership trade agreement and is expected to take many more administrative
changes to trade deals and partnerships.

Economic

1. Conflict with distributors over product price rise due to currency impact of Brexit:
Post-Brexit the GBP depreciated significantly which resulted in Unilever increases its
product prices in UK markets.Unilevermajorly depends on distributors and retailers who
are part of its supply chain and help in reaching the products to the end-consumer. Any
conflict with the distributors or retailers can impact its sales in the market. A recent
instance of the above was the dispute with UK retailer Tesco in October 2016 over the
pricing of some brands including Marmite and Ben & Jerry’s due to the currency impact.
Tesco had apparently refused to hike up the prices of Unilever’s brands by 10% as
directed by the company. This had affected supply of Unilever’s products across Tesco’s
stores across UK and Irish markets.

2. Sharp fluctuations in currency markets: The increased political and economic

certainty globally has caused sharp fluctuations in the currency market. Unilever
consolidates and reports its financial statements in euros, it is subject to translation risks
of its assets and earnings of foreign subsidiaries. The UK's decision to leave EU caused
major depreciation of the GPB in 2016, which impacted Unilever's UK market sales.
These fluctuations cannot always be passed on to the end-consumer through price
increases thus impacting the company's margins.

Social

1. Growing demand for premium skin-care products in emerging markets: Disposable

consumer income is increasing across developing and emerging markets. These
markets also have a high percentage of young population which is also leading to
expansion in the middle class segment. In developing and emerging markets like the
Indian-subcontinent and Middle East, demand for premium personal care products is set
to increase according to Trefis Research as there is growing disposable income and
greater awareness. Further the natural skin care segment is expected to grow by a
CAGR of 10% through 2019. Thus premium skin and personal care segment has good
potential for Unilever, a segment in which it already has a strong footprint
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Technological

1. Implementation of integrated supply chain with Ultralogistik: Unilever’s integrated

supply chain is one of the best across FMCG companies globally. Unilever has over 300
factories as of 2015 and has significantly invested in efficiency and eco-production. Its
UltraLogistik network helps it to reduce costs and emissions impact of its supply chain on
the environment. It also gives the company benefits of economies of scale, gives real
time visibility and reporting and helps to implement best practices across a region.

2. Leveraging ‘People Data Centres’ to understand consumer behaviour: Consumer

and Market Insights (CMI) group division has created a data analytics unit, ‘‘People Data
Centres’ which analyses data from social media, consumer carelines and digital
marketing platforms which are turned into actionable business decisions which help in
sales and revenue growth.Unilever also maps consumer purchase journeys in digital
channels which helps in better segmentation and understanding online behavioral
patterns.
Legal

1. Change in tax laws and regulations: Changes to tax laws and regulations can have a
major impact on Unilever's business. This area is particularly in focus after major political
and administrative changes globally, mainly the Brexit referendum and election of
Donald Trump as U.S. president. Tax laws and their interpretations are frequently
changing which may lead Unilever at the risk of unexpected tax exposures.

2. Amnesty allegations regarding child labor: Unilever along with other companies is
facing allegations from Amnesty International regarding usage of child labor in palm oil
which is used by the company. Amnesty reported in 2016 that it has traced the palm oil
used by Unilever as produced by Wilmar International. The allegations further
substantiate that children do back-breaking physical labor on Wilmar's refineries in
Indonesia. The allegations if proved may cause legal issues for Unilever in many
markets and also lead to consumer boycott.
Environmental

1. Actionable steps to address climate change within the value chain: Unilever aims to
address sustainability in each of its operations and has integrated addressing climate
change initiatives within its value chain. The company has committed to being carbon
positive in its operations by 2030 with complete usage of electricity from renewable
sources. Also Unilever aims to eliminate usage of coal from its energy mix by 2020.
Amongst other initiatives Unilever is addressing consumer disposal and recycling,
deforestation, water recycling and sustainable packaging of products. Unilever is one of
the few organizations globally which has been named a leader of the Household &
Personal Products Industry Group in the Dow Jones Sustainability Index (DJSI).
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References

1. Unilever Annual Report

2015:https://www.unilever.com/Images/annual_report_and_accounts_ar15_tcm244-
478426_en.pdf

2. Unilever Investor Presentation Nov 2016: https://www.unilever.com/Images/2016-

unilever-investor-event-graeme-pitkethly-unlocking-value_tcm244-496165_en.pdf

3. Why is Unilever Rushing Towards Premium Personal Care Brands?:

http://www.forbes.com/sites/greatspeculations/2015/08/18/why-is-unilever-rushing-
towards-premium-personal-care-brands/#28db0de4688d

4. Size of the global skin care market from 2012 to 2021:

https://www.statista.com/statistics/254612/global-skin-care-market-size/

5. Skin Care Products Market Size Is Projected To Reach USD 196.67 Billion By 2024:
Grand View Research, Inc: https://globenewswire.com/news-
release/2016/07/11/854902/0/en/Skin-Care-Products-Market-Size-Is-Projected-To-
Reach-USD-196-67-Billion-By-2024-Grand-View-Research-Inc.html