STGMNT 71, 74, 25 PDF
STGMNT 71, 74, 25 PDF
STGMNT 71, 74, 25 PDF
Unilever Bangladesh Ltd.
Course Name: Strategic Management
Course Code: MGT 4802
Submitted by
Khizir Mohammad B4170B025 BBA‐4 Section: A 8th Semester
Julkifil Muheet
Tania Sultana B4170B071 BBA‐4 Section: A 8th Semester
Ereeka Huq B4170B074 BBA‐4 Section: A 8th Semester
Course Teacher
Murshida Rahman
Lecturer
Bachelor of Business Administration
Army Institute of Business Administration
Savar Cantonment, Savar, Dhaka
Date of Submission: 22th November, 2020
LETTER OF TRANSMITTAL
November 10th 2020
Murshida Rahman,
Lecturer
Army Institute of Business Administration,
Savar Cantonment, Dhaka.
Subject: Submission of a Report on Strategic Management Policies and Practices in Unilever
Bangladesh Ltd.
Dear Ma’am,
Here is my report on “Strategic Management Policies and Practices in Unilever Bangladesh Ltd.
”that you have assigned me to submit as a partial requirement for the course –“Strategic
Management” Course Code‐MGT 4802. While preparing this report, I have taken help from
internet and relevant sources.
Though I have tried best yet it may contain some unintentional errors. I hope, this report will
come up with your expectation.
I shall be glad to answer any kind of question related to this report and I shall be glad to provide
further clarification if needed.
Yours faithfully,
Ereeka Huq
ID: B4170B074
Tania Sultana
ID: B4170B071
Khizir Mohammad Julkifil Muheet
ID: B4170B025
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ACKNOWLEDGEMENT
We sincerely acknowledge our debt to our course Lecturer Murshida Rahman, Army Institute of
Business Administration for her valuable counseling towards the improvement of the report.
Without his encouragement, this would have never been possible. We are overwhelmed with
gratitude to our course lecturer as she helped us in terms of propulsion and completing this term
paper impeccably. The report is prepared only to meet academic purpose not for any other
reason.
Ereeka Huq
ID: B4170B074
Tania Sultana
ID: B4170B071
Khizir Mohammad Julkifil Muheet
ID: B4170B025
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DECLARATION
We hereby declare this term paper has been written by our self and has not been previously
submitted to any other University/ Institution/ Journal/ Organization. Some data are copied from
sources which are mentioned in reference. The work does not breach any copyright.
Ereeka Huq
ID: B4170B074
Tania Sultana
ID: B4170B071
Khizir Mohammad Julkifil Muheet
ID: B4170B025
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SUPERVISOR’S CERTIFICATE
This is to certify that the work embodied in the accompanying report entitled “Strategic
Management” has been carried out entirely by the students as a research scholar under my
direct supervision and guideline and the students have fulfilled the requirements of the
regulations laid down for the 8th Semester examination of Army Institute of Business
Administration.
Murshida Rahman
Lecturer
Army Institute of Business Administration,
Savar Cantonment, Dhaka.
22th November, 2020
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ABSTRACT
This paper represents the topic Strategic Management Policies and Practices in
Unilever Bangladesh Ltd. In the beginning it discusses with the introduction and
objectives of the study. As well as the scope of the study and limitation of the study.
Further it discusses with the literature review which is based on the topic. Then we
discussed the main body that include Company product, data collecting, mission,
vision, target customer, and make conclusion and recommendation about the
study on ecosystem and energy flow. Next part of the term paper discusses with
the project description where there are some data about the details of Strategy
formulation, implementation, environment policy etc. And last part of the term
paper discusses with the conclusion, findings and recommendations, references of
the study.
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Table of Content
Details Topics Pages
LETTER OF TRANSMITTAL I
ACKNOWLEDGEMENT II
DECLARATION III
SUPERVISOR’S CERTIFICATE IV
ABSTRACT V
Chapter One Introduction 1
1.1. Objectives of the study 1
1.2. Scope of the study 1
1.3. Limitations 1
Chapter Two Company Overview 2
2.1. Unilever Global 2
2.2. History of Unilever 2
2.3. Unilever Bangladesh LTD 2
2.4. Mission 3
2.5. Vision 3
2.6. Goals 3
2.7. Unilever’s Contribution 3
Chapter Three Methodology 4
Chapter Four Data Analysis & Findings 5
4.1. Unilever’s Contribution 5
4.2. Manufacturing of Unilever 5
4.3. Strategies followed by the company 5
4.4. Organizational Structure 7
4.5. Unilever Brands 7
4.6. Reducing environmental impact 8
4.7. UNILEVER’S ENVIRONMENTAL POLICY 9
4.8. Unilever announces Covid‐19 actions for 10
all employees
Chapter Five Conclusion 11
References 12
Chapter One: Introduction
Unilever is an Anglo‐Dutch multinational consumer goods company, headquartered in London
and Rotterdam. Unilever products include food, candy, energy drinks, baby food, soft drinks,
cheese, ice cream, tea, cleaning agents, coffee, pet food, bottled water, toothpaste, chewing
gum, frozen pizza, pregnancy tests, juice, beauty products, personal care, breakfast cereals and
consumer healthcare products. Unilever is the largest producer of soap in the world. It is one of
the oldest multinational companies and its products are available in around 190 countries.
Unilever owns over 400 brands, with a turnover in 2017 of 53.7 billion euros, and thirteen brands
with sales of over one billion euros such as Axe/Lynx, Dove, Omo, Heart brand ice creams,
Hellmann's, Knorr, Lipton, Lux, Magnum, Rexona/Degree, Sunsilk and Surf.
1.1. Objective of the study:
This study had been carried out to achieve some predetermined objectives. They are given
below‐
To know about the company background
To know about the mission, vision goals of a company
To know about the strategies that followed by the company
To know about the organizational structure of a company
1.2. Limitation of the research:
The report was made with maximum effort to make it a successful outcome. But still I
suffered from few unavoidable limitations that obstructed on the way of building it. The
major one’s are:
I. Secrecy of management: The authority of the organizations that I surveyed did not
disclose much information for keeping the organization confidential. So, some data
could not have collected for confidentiality or secrecy of management.
II. Lack of information: In the website, information of in several companies was limited.
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Chapter Two: Company Overview
2.1. Unilever Global:
Unilever is an Anglo‐Dutch company, with a history of colonial exploitation, on which it has
gradually built its capital. Today it owns more than 400 of the world's consumer product
brands in food, beverages, cleaning agents and personal care products. Unilever employs
more than 174,000 people and had worldwide revenue of €49.800 billion in 2013. Unilever
has two parent companies: Unilever NV in Rotterdam, Netherlands, and Unilever PLC in
London, United Kingdom. This arrangement is similar to that of Reed Elsevier, and that of
Royal Dutch Shell prior to their unified structure. Both Unilever companies have the same
directors and effectively operate as a single business. The current nonexecutive Chairman of
Unilever N.V. and PLC is Michael Treschow (May 2007) while Paul Polman (January 2009) is
Chief Executive Officer. Unilever's major competitors include Nestlé and Procter & Gamble.
2.2. History of Unilever:
William Hesketh Lever founded Lever Brothers in 1885. Lever established soap factories
around the world. In 1917, he began to diversify into foods, acquiring fish, ice cream and
canned foods businesses. In the Thirties, Unilever introduced improved technology to the
business. The business grew and new ventures were launched in Latin America. The
entrepreneurial spirit of the founders and their caring approach to their employees and their
communities remain at the heart of Unilever's business today. Unilever was formed in 1930
when the Dutch margarine company Margarine Unie merged with British soap maker Lever
Brothers. Companies were competing for the same raw materials, both were involved in
large‐scale marketing of household products and both used similar distribution channels.
Between them, they had operations in over 40 countries. Margarine Unie grew through
mergers with other margarine companies in the 1920s. In a history that now crosses three
centuries, Unilever's 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 they've 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. Through this timeline you'll see how UBL
brand portfolio has evolved. At the beginning of the 21st century, path to Growth strategy
focused us on global high‐potential brands and Vitality mission is taking us into a new phase
of development. More than ever, how brands are helping people 'feel good, look good and
get more out of life' – a sentiment close to Lord Lever Hulme's heart over a hundred years
ago.
2.3. Unilever Bangladesh LTD:
The history Unilever Bangladesh Ltd is one of the world’s most successful fast moving
consumer goods manufacturing companies with local manufacturing facilities, reporting to
regional business groups for innovation and business results. Lever Brothers Bangladesh Ltd.
as a subsidiary of Unilever is leading the home care, personal care and food product market
of Bangladesh. On 25th February 1964 the eastern plant of Lever Brothers Pakistan Ltd. was
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inaugurated at Kalurghat, Chittagong with a soap production capacity of approximately 485
metric tons. It was a private limited company with 55% share held by Unilever and the rest
by the Government of Pakistan. After independence the eastern plant was declared
abandoned. But on 5th July 1973 it was registered under the name of Lever Brothers
Bangladesh Ltd. as a joint venture company of Unilever PLC and the Govt. of Bangladesh with
a share arrangement of 60.75% to Unilever and 39.25% to the Bangladesh Govt.
2.4. Mission:
Unilever's mission is to add Vitality to life. They meet every day needs for nutrition; hygiene
and personal care with brands that help people feel good, look good and get more out of
life.
2.5. Vision:
To make cleanliness a commonplace; to lessen work for women; to foster health and
contribute to personal attractiveness, in order that life may be more enjoyable and
rewarding for the people who use the products.
2.6. Goals:
The goals of UBL are:
To manufacture high‐standard products.
Promoting products to the highest extent
Producing large volume to achieve production cost economies.
Enabling quality products to be sold out at obtainable prices.
2.7. Unilever’s Contribution:
Unilever Making a positive contribution to society through their brands, the commercial
operations and relationships, their voluntary contributions to the community and through
their wider engagement with Bangladeshi society. 72% of the company’s value addition is
distributed to the Government of Bangladesh. UBL operations provide employment to over
10000 people.
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Chapter Three: Methodology
I. Planning: To start working for this term paper at first, the author plan about how they
will work for it.
II. Data collecting: After planning the author start working for this term paper and start
collecting data. There is no primary data. They only collect data from secondary source.
Here they used internet for gathering the information on the topic. As this is a research
work on make a secured business using computer, they took the references from various
website. All the information provided on this term paper is from secondary sources, such
as various links, web pages and some books.
III. Data analyzing: After collecting data the author start analyzing those data. They eliminate
and process those data for analyzing.
IV. Make a conclusion: After analyzing data the author tries to make a proper conclusion of
this term paper based on data analyzing.
V. Providing recommendations: Then the author provide some recommendations to make
secured business using computer.
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Chapter Four: Data Analysis & Findings
4.1. Unilever’s Contribution:
Unilever making a positive contribution to society through their brands, the commercial
operations and relationships, their voluntary contributions to the community and through
their wider engagement with Bangladeshi society. 72% of the company’s value addition is
distributed to the Government of Bangladesh. UBL operations provide employment to over
10000 people.
4.2. Manufacturing of Unilever
Facilities: The Company has a Soap Manufacturing factory and a Personal Products
Factory located in Chittagong. Besides these, there is a tea packaging operation in
Chittagong and three manufacturing units in Dhaka, which are owned and run by third
parties exclusively dedicated to Unilever Bangladesh.
Employees: Unilever Operations in Bangladesh provide employment to over 10,000
people directly and through its dedicated suppliers, distributors and service providers.
99.5% of UBL employees are locals and they have equal number of Bangladeshis
working abroad in other Unilever companies as expatriates.
4.3. Strategies followed by the company
a) Functional Level Strategies: Unilever Bangladesh Ltd follows different functional level
strategies to gain competitive advantages and sustain it in the long run in the matured
industries.
They increase their efficiency through exploiting economies of scale and learning
effects. For example, 808,720 bars of soaps, 1,023,810 packets of detergent
powders, 154,430 toothpaste tubes and sachets, 329, 530 bottles and sachets of
shampoo, 156,910 tubes, jars, bottles and sachets of creams and lotions, and
35,000 packets of tea are produced in one day in Bangladesh by Unilever.
They adopt flexible manufacturing technologies, upgrade the skills of employees
through training and perform research and development function to design
products that are easy to manufacture.
They have higher customer responsiveness rate. They carry out extensive research
to innovate new products and modify the existing products to better satisfy the
consumers.
They continuously innovate products, promotional activities, packaging and
distribution. This way they can respond quickly to customer demands.
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b) Business‐Level Strategies: Unilever’s strategic managers adopt different business
level strategies to use the company’s resources and distinctive competencies to
gain competitive advantage over its rivals. These are:
They follow cost‐leadership strategy as they have intermittent over capacity and
the ability to gain economies of scale. This way they can produce cost effective
products and yet be profitable.
They also follow differentiation strategy for some products to meet the needs of
the consumers in a unique way.
They also target different market segments with different products to have broad
product line. By product proliferation they reduce the threat of entry and expand
the range of products they make to fill a wide variety of niches.
c) Strategy in the Global Environment: Unilever Bangladesh Ltd. is registered under
Unilever. As a part of a global company it follows some generalized strategies and
principals of Unilever. However, they also modify different strategies based on the
national conditions. The different strategies that they follow in the global environment
are stated below: As a worldwide famous company and comprising internationally
renowned brands gives them unique strengths that allow a company to achieve superior
efficiency, quality, innovation, or customer responsiveness. The different policies and
strategies Unilever follows and their experience is transferred to Unilever Bangladesh
Ltd.
They import the raw materials from the places where it is less costly, thus achieve
location economy.
They are locally responsive. They are always ready to improve and modify their
products to meet the needs of the local customers.
UBL follows a multi domestic strategy where the companies extensively customize
both their product offering and marketing strategy to different national conditions.
d) Corporate strategy: UBL carries out the following corporate level strategies:
They involve in short term contracts and competitive bidding for the supply of raw
materials.
They have a diversified business. UBL has both related and unrelated
diversification. They compete in nine different industries with various products
from home care, personal care and even food products. They have economies of
scope as most of the products can share the same manufacturing facilities, inputs
and specially the distribution channels.
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4.4. Organizational Structure:
In terms of Unilever, they have two chairmen leading the company worldwide. They have
seven top directors leading seven different departments. They have divided their
worldwide business into different region and have different business groups to manage
them. Unilever Bangladesh limited falls under the Southeast Asian region. On a more micro
scale, Unilever Bangladesh ltd is monitored by Hindustan lever Ltd. Which oversees
operation in Bangladesh, India, Pakistan and Sri Lanka. The chairman of Unilever Bangladesh
Limited is known as the managing director. The management staff of the company consists
of six layers, starting from junior manager (who are local managers) to manager grade 5 (who
are Unilever managers). Apart from this the company also hires many non‐management staff
as well as operatives to work in the factories.
Unilever Bangladesh Limited structured in the following manner: Unilever Bangladesh
Limited has five departments to carry out all the organizational functions. Respective
director’s head to head of all departments.
These departments are:
Customer Development Department Headed by Customer Development Director
(CDD)
Brands & Development Department headed by the Brands and Development Director
(B&DD)
Supply Chain Department headed by the Supply Chain Director (SCD)
Finance Department headed by Finance Director (FD)
Human Resources Department headed by the Human Resources Director (HRD)
4.5. Unilever Brands:
Unilever has a portfolio of about 400 brands globally. However, many of these are local that
can only be found in certain countries, e.g. Fair & Lovely. In Bangladesh the number of UBL’s
existing brands is 18 which are categorized in different sections. The brands fall almost
entirely in two categories:
Food and beverages
Home and personal care brands
In Bangladesh the company operates in four distinct product categories. These are‐
1. Fabric Wash
Wheel Laundry Soap
Wheel Washing Powder
Wheel Power White
Surf Excel
2. Household Care
Vim Powder
Vim Bar
Vim Liquid
3. Personal Care
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International Lux
Lifebuoy Total
Dove bar
Lifebuoy Liquid soap
4. Skin Care
Fair & Lovely Multivitamins
Fair & Lovely Body Fairness Milk
Fair & Lovely Ayurvedic
Fair & Lovely Menz Active
Pond’s Age Miracle range
Pond’s Daily Face Wash range
Pond’s Cold Cream
Ponds Dream Flower Talc
5. Hair Care
Sun Silk Shampoo
All Clear Shampoo
Lifebuoy Shampoo
Dove shampoo
All Clear Hair Shampoo
6. Oral Care
Close‐up Toothpaste
Pepsodent Toothpaste
Pepsodent Toothpowder
Pepsodent Tooth brush
7. Deodorant
Rexona
Axe
8. Foods
Lipton Taaza Danadar
Lipton Taaza strong
Lipton Taaza Teabag.
4.6. Reducing environmental impact
a) Decoupling growth from our environmental impact:
Part of our Vision is to grow our business whilst decoupling our environmental impact
from our growth. We consider the reduction of our greenhouse gas (GHG), water and
waste impacts across our value chain, from sourcing our raw materials to within our
own manufacturing and operations and consumer use. We also aim to source our
agricultural raw materials sustainably.
Reducing the environmental impact of how consumers use our products continues to
prove difficult, as our performance on reducing GHG and Water impact per consumer
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use demonstrates. However, in those areas where we have control over our impacts –
such as our own manufacturing ‐ we are making excellent progress.
b) Our performance: GHG, water, waste & sustainable sourcing:
Our environmental targets for GHG, water and waste are expressed on a ‘per consumer
use’ basis. This means a single use, portion or serving of a product, such as the impact
of one load of laundry. Our performance is measured against a baseline of 2010.
4.7. UNILEVER’S ENVIRONMENTAL POLICY
Unilever is committed to reducing our impact on the natural environment and taking action
on climate change. We believe that growth that takes account of our environmental impacts
is the only way to deliver sustainable returns, as encapsulated in our vision to: grow our
business, whilst decoupling our environmental footprint from our growth and increasing our
positive social impact. We are committed to making continuous improvements in the
management of our environmental impacts. We work in partnership with others to promote
environmental stewardship across our value chain, increase understanding of environmental
issues amongst our stakeholders and disseminate good practice with other companies. We
comply with applicable environmental legislation and regulations and with Unilever global
Environmental Standards, applying more stringent criteria than those required by law when
we believe this to be appropriate. Everyone at Unilever has a role to play – this
Environmental Policy outlines our individual and shared responsibilities to the environment
and is implemented through the environmental pillars of the Unilever Sustainable Living Plan
which is governed by a Steering Team of representatives from the Unilever Leadership
Executive.
a) This Environmental Policy commits us to:
Embed environmental risks into our wider risk identification and mitigation
processes.
Refresh our materiality assessment periodically, which includes considering current
and future environmental issues.
Audit our compliance with legislation and Unilever Standards, and investigate all
environmental incidents in order to prevent recurrence.
Set targets for continuous improvement and put in place environmental safety and
sustainability programs.
b) Innovation
Use lifecycle assessment in new product design and on existing products to help us
understand the impacts of our products on the environment and identify
opportunities to reduce this impact.
Work to identify opportunities to minimize the potential environmental impacts of
Unilever products or activities.
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c) Sourcing
Engage with our suppliers to reduce environmental impact (see Responsible
Sourcing Policy for more details).
Engage with our suppliers and farmers through our Sustainable Agriculture Code
2017, a set of rigorous standards designed to spur on improvements in our supply
chain, including legal compliance, no deforestation, soil and water management,
pollution and biodiversity.
d) Manufacturing
Develop our environmental management systems and processes to improve our
environmental performance during manufacturing.
e) Logistics
Focus on continually increasing fleet efficiency and reducing emissions from the
distribution of our products.
f) Marketing, sales and consumer use of products (including end‐of‐life)
Use risk assessments to determine any adverse environmental effects arising from
the use and disposal of our products.
Rethink how we design our products using our Design for Recyclability guidelines.
Provide relevant information and advice e.g. to our consumers and customers on
the environmental impacts of our products.
Work with governments to create an environment that enables the creation of a
circular economy, including the necessary infrastructure to collect and recycle
materials.
g) Corporate functions
Ensure that employees are aware of Unilever’s Environmental Policy and
motivated to apply it and that they are aware of their own responsibilities and
given the necessary training and support.
Externally report our environmental performance annually, including
independently assured progress against relevant USLP targets.
Work in partnership with others to scale up action on environmental issues
around the world through private sector groups and coalitions.
4.8. Unilever announces Covid‐19 actions for all employees
As a pandemic is announced by the World Health Organization, we are putting global
measures into place to protect our employees and their families. The CEO Alan Jope
announced a new set of measures to help protect our people from coronavirus (Covid‐19).
They have received several requests from many of our stakeholders to share our updated
approach with them, and so are publishing his email to all our employees.
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Chapter Five: Conclusion
It is evident that Unilever’s pioneering position in regards to sustainability is firmly rooted in our
innovative application of, and commitment to, environmental sustainability science. This has
helped inform and shape the company’s thinking on sustainability and we will continue to use
science to help us address future challenges. Currently, systems thinking remains in the margins
of scientific development, but increasingly this needs to be brought to the fore so that large
companies such as Unilever, as well as governments, are better equipped to make choices that
can drive transformational change. This implies even more intensive cross disciplinary activity,
merging elements from Environmental Sustainability Science, LCA, Earth Systems Science,
Resilience Science and Economics for more holistic insights and business/policy relevant
assessment tools. The emerging developments in big data, informatics, and the deployment of
imaging technologies and information systems to visualize earth systems will facilitate the move
towards a more holistic understanding of environmental impacts and the sustainable
management of Earth’s resources.
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