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HEC MBA - BEST IN FRANCE CASE STUDY UNILEVER. Jouy en Josas, December 2003. AGENDA. Company Overview. International Growth Policies. Values Adaptation. Conclusions. COMPANY HISTORY. Unilever is one of the world’s leading suppliers of fast-moving consumer goods .

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HEC MBA - BEST IN FRANCE CASE STUDY UNILEVER

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Hec mba best in france case study unilever l.jpg

HEC MBA - BEST IN FRANCE CASE STUDYUNILEVER

Jouy en Josas, December 2003


Agenda l.jpg

AGENDA

Company Overview

International Growth Policies

Values Adaptation

Conclusions

2


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COMPANY HISTORY

Unilever is one of the world’s leading suppliers of fast-moving consumer goods

  • Unilever was created in 1930 when the British soap maker Lever Brothers merged with the Dutch margarine producer, Margarine Unie

  • The owners of the two companies could see that bringing together complimentary businesses with strong global networks would create new opportunities

  • Employing 247,000 people, Unilever has two parent companies - Unilever NV and Unilever PLC – which, despite being separate businesses, operate as a single unit with the same board of directors

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COMPANY OVERVIEW

Unilever is one of the world’s leading suppliers of fast-moving consumer goods (cont.)

  • Worldwide turnover in 2002 was €48 760 million

  • They employ 247,000 people

  • Every day, 150 million people choose Unilever’s brands to feed their families and to clean their homes

    • Over half its sales are generated by their foods division brands

    • Their foods brands include Becel, Bertolli, Blue Band, Flora, Hellmann’s and Knorr

  • Their major home care brands are Brilhante, Comfort, Skip and Omo

  • Their top personal care brands include Axe, Dove, Lux and Ponds

  • Unilever’s activity is distributed 40% in Europe, 26% in North America and 34% on other territories

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COMPANY OVERVIEW

Regional and Category Highlights

Turnover by Region %

2002

Turnover by Category %

2002

5


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UNILEVER IN FRANCE

In France, Unilever is structured in two main divisions

  • Foods

    • Cogesal-Miko, glaces (Carte d'or, Magnum, Miko, Royal Cornetto, Cornetto Soft, Solero, Viennetta) et surgelés (Iglo et Knorr)

    • Unilever Bestfoods France: Amora, Boursin, Fruit d'Or, Knorr, Lipton, Maille, Planta Fin

    • Slimfast France avec ses produits diététiques.

  • Home and Personal Care

    • Lever Fabergé France

      • Home Care: lessives (Coral, Omo et Skip), produits pour lave-vaisselle (Sun), assouplissants (Cajoline), nettoyants ménagers (Cif, Domestos, Vigor)

      • Personal Care: produits dentaires (Sanogyl, Signal), produits de soin et d'hygiène de la peau, déodorants et produits capillaires (Axe, Dove, Organics, Rexona et Timotei)

    •  Unilever Cosmetics International France

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UNILEVER IN FRANCE

Some key figures of Unilever France

  • Employees: 5.250

    • 90 French abroad

    • 80 foreigners in France

  • Sales: € 3 875 million

  • Exportation: € 555 million

  • 14 industrial plants

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AGENDA

Company Overview

International Growth Policies

Values Adaptation

Conclusions

8


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Home & Personal Care Regions

Home and Personal Care, Asia

Home and Personal Care, Europe

Home and Personal Care, North America

HPC Africa & Middle East

Latin America: HPC Division

Unilever Bestfoods Regions

Foods North Africa, Middle East and Turkey

Ice Cream and Frozen Foods

Unilever Bestfoods Asia

Unilever Bestfoods Latin America

Unilever Bestfoods North America & Slimfast worldwide

Unilever Bestfoods, Europe

Non Divisional Groups

Africa Regional Group

Basic Units

INTERNATIONAL STRUCTURE

In spite of having its HQ in London and Rotterdam, the core building block in Unilever is the local operating company

The “Multi-Local” Structure

National Companies

+

International Innovation Centers / Categories

9


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COMPANY APPROACH TO INTERNATIONAL GROWTH

Unilever’s international expansion decisions are ALWAYS guided by business drivers and never for other non business benefits such as taxation

Government assistance,

Taxation, etc.

Non-Business

Benefits

INTERNATIONAL

GROWTH

Specific

Expertise

Business

Potential

Development of

Innovation Centres

Special focus on

Revenues Growth

10


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ROLE OF UNILEVER FRANCE IN THE GROUP

As in the rest of the world, Unilever operates in France due to the importance of the market and to specific expertise the country offers

11


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INTERNATIONAL MOBILITY POLICY

Since Unilever is a global Company, there is a strong international mobility to promote “high potential” career growth and diversity

  • Young Managers, to gain international experience early

  • Specialists, to fill a specific role

  • Managers with exceptional potential (Top Management Development)

How?

Who?

  • Management development process

  • Opening job posting

12


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INTERNATIONAL MOBILITY POLICY

For people coming from other parts of the world, France must apply the international policies

Conditions

  • Local salary / contract

  • Standard remuneration regardless country of origin

    • Worldwide work levels and pay-scales

    • Salary = pay-scales percentages

  • Expatriation allowance (from a pre-established matrix)

  • Housing allowance

  • Initial expenses allowance (15%)

  • Education assistance

13


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INTERNATIONAL MOBILITY POLICY

During the last years, there is a strong trend within the company (including France) to go from expatriation to local hiring

Towards

From

Home

Home

Host

Host

Host

Home

Gross Salary

Net Policy

14


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AGENDA

Company Overview

International Growth Policies

Values Adaptation

Conclusions

15


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VALUES

UNILEVER’s values are all universal or business oriented and are not tied to any single national culture

UNILEVER’s Main Values

  • Honesty

  • Integrity

  • Openness

  • Respect of the Human Rights

  • Interest for the employees

  • Commitment to provide the consumers with safe product that offer value in terms of price & quality

  • Good corporate governance

16


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VALUES ADAPTATION

Since company’s values are global ones, there was not a special adaptation to operate in France

  • In France as well as in the rest of the world, there is ONE “Unilever Culture”

    • Same values

    • Same language

    • Same systems

  • Every new tool developed (for every field) is think in a global basis

    • Ex.: opinion survey

  • There is a small room for local policies

17


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AGENDA

Company Overview

International Growth Policies

Values Adaptation

Conclusions

18


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CONCLUSION

As a real global company, Unilever did not developed any specificity linked to the French culture or environment, applying therefore all its international HR policies

  • Unilever has no single country of origin and expanded worldwide with a multi-local approach

  • The core values of the company are universal and widely accepted

  • The main drivers for investment in a given country are potential local market and/or specific local expertise

  • As a consequence the French facilities of UNILEVER do not present any specificity linked to the French culture or environment

  • Government policies has no direct effect on their investment in France

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ACKNOWLEDGEMENT

Special thanks to:

  • Mr. Patrice Venet – National HR Department (Unilever France)

    [email protected]

  • Mrs. Fernanda S. Sanchez – Data Collection Manager (UBF France)

    [email protected]

20


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Group D

Arnaud Lelache

Augusto Accorsi

Peter Feddersen

Philip Cacouris


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