Unilever Pakistan

Introduction

Unilever is the biggest branded ice cream manufacturer around the world, selling millions
of ice creams every day in more than 40 countries. Ice creams produced by unilever vary
from country to country, since recipes are tailored to domestic demands, based on taste,
legal and religious requirements. Walls therefore don’t necessarily use the same
ingredients everywhere.

Though Unilever has been selling ice cream globally for years, the Heart brand was
launched globally in 1999. The Heart brand logo is common worldwide and has come to
be synonymous with quality treats.

In Pakistan the Heart brand is called Wall’s and it is one of the most active players in the
market and is striving to offer lighter, healthier products as well as providing old
favorites, hence catering to a variety of diverse tastes.

Unilever has been operating in Pakistan for 60 years. Over this period its brands in
homecare, personal care, foods, beverages, and ice-cream have become market leaders.
Millions of people use them daily because they conform to the highest standards and
provide value for money. As a multinational, multi-local company, it is committed to add
vitality to consumers and the community in a responsible and locally appropriate manner.

Unilever Pakistan’s Mission:

Our mission is to add Vitality to life. We meet everyday needs for nutrition; hygiene and
personal care with brands that help people look good, feel good and get more out of life.

Wall’s Vision:
“We want to be low cost leaders without compromising quality and safety”

Wall’s Mission:
“We are committed to produce high quality products while, using less energy, using
fewer materials and generating less waste”

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 Walls Pakistan
Wall’s positioning:
The Wall’s brand stands for a good time. From affordable treats to premium indulgence,
to hanging out with friends and sharing precious family moments; Wall’s adds to the
simple pleasures in daily life.

Walls Range of Ice creams:

Walls Classic tubs Walls Cartons Walls Cornetto Walls Magnum

Walls Moo Walls Rocket Walls Spin Walls Twister

Organization Configuration

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According to Mintzberg every organization is composed of five parts. When we applied
this model on the walls factory we found the same parts as defined by Mintzberg. These
are illustrated below;

Top Management
Work level 4
Work level 5

Administrative Middle
Support Staff Technical
Management
HR Support Staff
Work level 1
T&D R&D
Work level 2
Marketing
Work level 3
Department

Technical Core
Third-party workers
Permanent staff

1. Technical Core:

Technical core in Walls factory is known as ‘Third party workers’ (TPW) who are
hired either on contract or daily basis. On average TPW are 620 in number.
Permanent Technical core is called Factory Staff in walls factory. Permanent
Technical staff includes production operators, machine operators, cold-store
operators, dry store operators, machine fitters, electrical instrumentation operators,
refrigeration operators. They are 88 in number.

2. Technical Support Staff:

Technical support staff at walls includes R&D staff and marketing staff.

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 3. Administrative Support:
Administrative support staff includes Human resource staff, training and development
staff.

4. Middle Management:
Middle management includes three work levels. This hierarchical level constitutes 42
managers.
• Work level 1 includes, assistant managers
• Work level 2 includes Departmental managers
• Work level 3 includes work managers
5. Top Management:
Top management includes work level 4 and 5.
• Work level 4 includes directors.
• Work level 5 includes chairman.

Dimensions of Organization Design

Structural Dimensions

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1. Formalization:
In walls formalization does exist, which includes documentation of activities, policy
manuals, and job descriptions etc. but to the extent that it prevents red-tapism to creep
in.

2. Specialization:
Specialization in Walls factory is extensive. There is a predefined set of tasks that
each employee has to perform. For instance at wall assembly line consists of
following activities,
• Cleaning-In-Place (CIP) Plant for the cleaning of machinery and
equipment
• Hot Water Plant for ice cream making
• Mixing area
• Cone baking area
• Production Hall
• Cold Storage
• Dry Storage
These set of tasks are performed by different workers at their respective place.

3. Hierarchy Of Authority:
Span of control is narrow at walls because each manager has to supervise a small
number of employees which results in a tall hierarchy.

4. Centralization:
Decision making at walls is done at parent organization i.e. Unilever at managerial
level 4 and 5. And then decisions are communicated downwards to different factories.

5. Professionalism:

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Professional is the key strength of Walls both for managerial and factory staff.
Extensive training is given about the company’s operational processes, health and
safety and quality standards. Management is trained by Talent Teams and factory
staff is trained by HR department.
Procedure of training to Third Party Worker:
• Contractors provide lists of Third party workers to HR department.
• HR department shortlists the employees
• At medical Canter their physical health is tested
• Administration briefs Third Party Workers about organization.
• Quality and safety information is given to new employees
• At production Hall, newly hired workers are required to wear a distinct
color cap to distinguish them from experienced workers.
• They are given On-The-job training by mentors and coaches.
• After one week, a report is sent to HR department to finalize the
employees.

6. Personnel Ratio:
Total number of employees in Walls factory is 750. Administrative ratio is 6%,
Factory staff ratio is 12% and third Party workers are 82%.

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 Dimensions of Organization Design
Contextual Dimensions

Size
Size of the organization as reflected in the number of people is 750 and the production
capacity is 35 million liters per year. It’s the only Walls factory in Pakistan producing Ice
cream and some of its production is exported to Afghanistan.

Organizational Technology
Walls ice cream manufacturing assembly line is semi automated and manual workers are
also employed as operators for some of the machines.
In Unilever all the activities revolves around the strategy that is being crafted before the
start of every business year. Unilever has designed a special tool known as SIA (strategy
into action)based on professor Hax’s design, which is a process for mobilizing the whole
organization to achieve is targets.
It is a mechanism for ensuring that plans and actions are aligned and it is a tool to support
their collective drive for value creation. It highlights the most critical priorities of the
business, and it is integrated into the overall business planning cycle.

Environment
Wall’s is not having any significant and close competitor in the business of branded ice
cream. Some local manufactures like igloo, Hico, Yummy, Gourmet (in Lahore) are here
but they are not in the business of branded ice creams.

Organizational strategy and Design

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Porter’s Competitive Strategy

We have identified Wall’s as following the Best Cost Strategy. Where by walls use
differentiation and low cost simultaneously. In its particular situation the two strategies
complement rather than detract each other. Unlike a differentiation, in which the
emphasis is on creating extra value or a low cost strategy that stresses cutting costs; the
low cost strategy gives equal weight to both factors. A review of Walls Vision will
buttress the concept of Best Cost Strategy. Walls Vision statement is a follows;

“We want to be low cost leaders without compromising

quality and safety”

Mile’s & Snow’s Growth Strategy

.According to the mile’s and snow’s walls is using Analyzer Strategy. They are trying to
maintain a stable business while innovating new ideas. Walls seem to lie midway
between prospector and defender. Walls attempts to balance efficient production for
current product line with the creative development of new product lines.

Organizational Structure
Structure

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Provided by the guidelines by our textbook, we identified Walls as having Functional
Structure. We can not isolate the structure of Walls from its parent organization i.e.
Unilever. Let’s glance over the Unilever organogram:

Unilever
G
E
O
America Europe Africa Asia G
R
A
P
H
I

Pakistan Malaysia China C

A
L

D
I
V
Food Home Personal Care I
S
I
O
N
A

Walls L

F
U
N
C
T
I
HRD Marketing R&D Administration O
N
A
L

Learning organization
Walls is a learning organization. Learning is the main strength of walls, as the culture of
walls encourages openness and continuous improvement. Employees in the walls even at
lower level know about the whole system that how every thing fits together. Employees
at walls are given extensive training that’s why they know every thing about the
organization. Innovation is always there that is the main strength of learning organization.
At walls, the emphasis is on treating the employees with care and respect to create a safe
climate to experiment and to take risks.

Organization Life Cycle and Control

Life Cycle

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We studied Walls according to the life cycle stages and we identified that it fits the most
at the Elaboration stage.

Structure
Although the basic structure of the organization is bureaucratic structure having high
degree of formalization, specialization, hierarchy and narrow span of control but Unilever
has brought team work as the solution of red tape crisis: which is the crisis of elaboration
stage.

Products
There are several lines of products in Walls, including Walls Cake Creations, Paddle Pop,
Classic Ice Cream Tubs, Walls Cartons, Magnum, Cornetto and other low priced ice-
creams.

Innovation
Wall’s has a well established, separate research and development department for
achieving improved innovation.
Innovation process
• Innovation is based on regions
• Different regions send formula and design of ice cream to main factories.
• Sample is tested in mini machines.
• Feed back is send to regions back
For example, in western countries donuts was with sesame seeds, but in Pakistan it was
launched with peanuts after testing it in Pakistan.

Goals
Unilever states its goals of becoming a complete organization in the following words;
“Our portfolio of brands brings benefits in nutrition hygiene, health and beauty, which
gives us a unique opportunity to add vitality to all of life, inside and outside our bodies, at
home, and in the every day environment.”
Top Management Style
Walls top management philosophy is that “Great Teamwork Spells Growth”. As Mr.
Ehsan put it “if we can win hearts and minds of consumers to achieve market leadership,

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as we have done, surely we can also win hearts and minds of our followers”. Walls top
management simply adopts team based approach to run the organization smoothly.

Characteristics Elaboration stage

Structure Team work with bureaucracy
Products Multiple products e.g. cakes and
low price ice creams.
Reward and Extensive
control system
Goal Reputation as a complete
organization
Top management Team approach
style
Innovation Innovation by R&D department.

Organization Life Cycle and Control

Control

Total Production Management (TPM)

Walls is having a very advanced control system known as Total Production Management
(TPM). TPM more or less looks like Balance ScoreCard Approach.

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According to Ms Tahira Mubbashir (HR Manager), TPM is one step ahead of TQM. The
philosophy of TPM is that “customer is the king”. From very basic to very advanced
stages of production, customers’ opinions are always deemed important.
Some of the salient features of TPM are given below;
 TPM is not just about controlling mechanism, it’s a way of living in organization.
 TPM provides each and every minute detail about product design, systems, man
power, health and safety measures, and advanced customer complaint
mechanisms.
R2P
A sub-part of TPM is R2P. The term R2P reflects that a production process is a result of a
detailed process and presentation. R2P is to ensure that customers’ needs should not be
violated at any cost.

Process Presentation

Result

Clan Control
Walls culture is very strong so Clan control is deemed important. The values of the
culture are not only shared in Walls factory but also across the globe. The culture of
adaptability and innovation is what a learning organization like Wall’s requires. The clan
control is so strong that there is hardly any issue of violence or any breach of trust, ever
heard at walls.

Organization Culture and Ethics

Culture

By our study of Wall’s, we identified its culture as Adaptability Culture.

Adaptability Culture

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As Wall’s is a learning organization its focus is on internal as well as external flexibility.
Its constantly adapts to the changing needs of its customers. Innovation, creativity, risk
taking is valued at Wall’s.
Sub-culture
Mission Culture
The dominate culture of Wall’s is the adaptability culture but there also exists a sub-
culture in organization which we identified as Mission Culture. Its objective is also to
improve productivity and profitability in order to achieve its goals.

Ceremonies
Formal ceremonies are celebrated at the top management level. At Wall’s there is a trend
of attaching greeting cards are on the notice board on different occasions. The birthdays
of the employees are celebrated. Family annual functions are arranged for employees at
all levels and their families are invited on a formal dinner. Apart from these activities, a
sports day is also celebrated in which families of the employees participate.

Dress Code
There is a strict dress code followed in walls and the employees are required to follow the
specified uniform, which is different for all departments.
The different departments for which there is a separate uniform are,
• Cold store
• Production Hall
• Cone Baking
• Electrical
The trainees at Wall’s are required to wear a special cap so that they are identified and to
ensure that they do not visit the dangerous areas.

Ethical values

There are strict ethical standards in Wall’s and the employees are required to abide by the
norms and given standards.
Ethical committee

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Wall’s has an established ethical committee to control the organization’s ethical issues. It
follows a step by step procedure in handling ethical issues. The employees that do not
abide by these ethical values, are first explained the rules and familiarized about the
behavior that is not acceptable by the organization. This process is known as ‘breach’. In
any case if the person does not correct his behavior according to the norms than a letter is
issued to his/her family and still if the behavior of the person continues then a warning
letter is issued and ultimately termination.

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