...Sumra WGB 640 – Dynamic Business Management Financial Analysis Executive Summary Unilever & Proctor and Gamble Unilever Liquidity Understanding Unilever from a liquidity perspective, an investor must realize that both current and quick ratios for Unilever decreased on a year over year comparison (2012, 2013, 2014). Assets during this period remained almost unchanged but liabilities grew over the designated years. This is due to bond maturity as stated in the 2014 annual report, but still a flag as the decrease has been YOY. Efficiency According to the efficiency ratios I calculated, Unilever shifted its strategy towards a less frequent collection cycle. They managed to collect receivables less frequently, showing a more accepting credit policy towards customers. Unilever’s Days Sales Outstanding ratio also increased, signaling it took longer to collect cash from its credit sales – which are apparent from the decrease in accounts receivable turnover ratio. Unilever’s inventory turnover ratio also increased into 2014, eluding that Unilever improved its ability to manage its inventory. In terms of evaluating the working capital ratio, Unilever leverages cash for programs more often – giving them a -22 for days in working capital. This is alarming to an extent, as Unilever could cash its way out of business in case it needs more working capital. Profitability After completing profitability ratios, Unilever financials provided two indications; firstly, it was moderately...
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...Unilever Horizontal Analysis Ratios | | Liquidity | | | 2014 | 2013 | Current Ratio | | | 0,63 | 0,70 | Acid test retio | | | 34,52 | 44,14 | Accounts receivable turnover | | 99,62 | 198,72 | Accounts receivable turnover days | | 4 | 2 | Inventory turnover | | | 6,81 | 7,38 | | | | | | | | | | | Profitability | | | 2014 | 2013 | Profit margin | | | 0,08 | 0,07 | Asset turnover | | | 1,10 | 1,05 | Return on assets | | | 0,09 | 0,08 | Return ordinary shareholders equity | | -31,07 | -25,60 | Earnings per share (EPS) | | | -181,63 | -178,35 | Price-earnings (PE) ratio | | | 3,07 | 3,92 | Payout ratio | | | 0,22 | 0,21 | | | | | | | | | | | Solvency Ratios | | | 2013 | 2014 | Debt to total assets | assets ratio | | 0,28 | 0,16 | Times interest earned | | | -0,02 | -0,01 | Sub-conclusion Unilever: Ratios: The liquidity of Unilever went through a big change between 2013 and 2014. Their accounts receivable turnover decreased dramatically while the accounts receivable turnover days doubled. The current ratio and acid test ratio decreased what is not good for the liquidity. However the acid test ratio is still remarkably high. Examining the profitability we find that the profit margin and return on assets are a bit low but increasing compared to 2013. Furthermore are all profitability ratios slowly increasing except for the payout ratio. That could indicate...
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...Strategic 1 Management Of UNILEVER STRATEGIC ANALYSIS OF THE ISLAMIA UNIVERSITY OF BAHAWALPUR Strategic 2 Management Of UNILEVER Submitted by: Nadia Shoukat (23) MBA, 4th semester, Section A, (M) Submitted to: Sir Shahid Yaqoob MBA Marketing Submittion Date: 22 May, 2010 THE ISLAMIA UNIVERSITY OF BAHAWALPUR Strategic 3 Management Of UNILEVER DEDICATION WE DEDICATE THIS HUMBLE EFFORT TO The Holy Prophet “HAZRAT MUHAMMAD” (P.B.U.H) The greatest Social Worker, Whose every tear was for The Cause of humanity And also dedicated to THE UNFATHOMABLE LOVE, UNFLINCHING SUPPORT UNTIRING MIDNIGHT PRAYERS AND STEADFASTNESS OF “OUR REVERED PARENTS” WHO HAS BEEN A BEACONHOUSE FOR USFOR THE WHOLE OF OUR LIFE, WHO HAS ALWAYS SHOWED US THE RIGHT PATH, THE PATH OF TRUTHFULNESS AND HONESTY AND WHO HAS BEEN ALONG WITH US THROUGHOUT OUR STUDYING CARRIER THE ISLAMIA UNIVERSITY OF BAHAWALPUR Strategic 4 Management Of UNILEVER Acknowledgements God never spoils any effort; every piece of work is rewarded according to the nature of devotion for it. We are extremely thankful to ALLAH ALMIGHTY Who, in spite of numerous difficulties, vicissitudes and acute frustrations enabled us to probe the present study and dissertation. We bow our head to ALLAH ALMIGHTY for the buntings and the blessings that He has bestowed upon us. Who has given us the courage and stamina to come up to the expectations of our revered teachers and ever...
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...Global Branding of Unilever and Nestle | Report Analysis | ] | Global Branding of Unilever and Nestle | Report Analysis | | 1. Executive summary 4 2. Introduction 4 3. Overview of Unilever and Nestle 4 3.1. Company Facts-Vision and Mission 5 3.2. Company Facts-Core Business Sectors 5 3.3. Company Facts- Business Strategy 5 4. Global branding 6 4.1. Standardization vs. regional adaptation 6 4.1.1. Language 6 4.1.2. Cultural differences 7 4.2. Advertisement 8 4.2.1. Religious issues ...
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...Analysis of Unilever Financial Reporting Introduction Annual report is an exhaustive report which has involved a firm’s activities throughout the last year. It purposes to show the corporate activities and financial performance to both the shareholder and those people who are interesting in their corporation. However, it is crucial for the stock watcher doing their due diligence every year from the analysis of a corporate annual report. Not only the growth rate they concerned, but also the prospect of their stocks, the investor need to consider it carefully before doing their decisions. The following content would give the analysis of Unilever’s annual report in 2009. It would give detailed information in relevant with the companies activities, financial performance and future prospects. The company’s activity Types of product & service Unilever is an Anglo-Dutch multinational corporation that owns many of the world's consumer product brands in foods, beverages, cleaning agents and personal care products. (Wikipedia) It provides fast-moving consumer goods in the world, mainly focus on three categories of products: nutritional foods, household and personal care. With a slogan “creating a better future every day”, this company always pays attention to innovation as well as effects of brands for their products. Unilever owns more than 400 brands as a result of acquisitions, however, the company focuses on what are called the "billion-dollar brands", 13 brands, each...
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...------------------------------------------------- Table of Contents CHAPTER: ONE INTRODUCTION OF THE PROJECT………………………….1-4 CHAPTER: TWO INTRODUCTION OF THE ORGANIZATION……..…………5-9 CHAPTER: THREE CAPITAL STRUCTURE ANALYSIS………………………….10-15 Fixed Assets……………………………………………………….10-12 Inventories…………………………………………………………12-15 CHAPTER: FOUR ANALYSIS OF ASSETS…………………………………………..16-18 CHAPTER: FIVE CASH FLOW ANALYSIS………..………………………………19-26 CHAPTER: SIX FINANCIAL RATIO ANALYSIS…...............................27-28 CHAPTER: SEVEN SUMMARY AND CONCLUSION……………………… CHAPTER: ONE INTRODUCTION OF THE PROJECT Theory is just limited to knowledge, but practical approach gives the platform for applicability. Learning only on theoretical basis limits our knowledge horizon and keeps us far from real world. So, in order to have enough understanding on the accounting process, this project aims at applying theory into practice. The annual report project in the first term of our accounting course in MBA is assigned to us to make us learn everything we can about one company using its annual report, the internet, the press, stock market and contract with company officials. Thus, this annual report project on Unilever Nepal Limited (UNL) is prepared as a part of learning practical applicability of accounting processes. Objectives of the report Every report has objectives. It is on the basis of these objectives that report is directed in a fixed path and contains...
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...Introduction: company profile Unilever is a world leader in Fast Moving Consumer Goods,with its products being bought 160 million times a day and used 2 billion times a day in nearly over half(nearly 55%) of the households on the planet. Unilever has dual headquarters in Rotterdam and London. This was after the merger in 1930 of Margarine Unie(Rotterdam) and Lever Brothers(London). Unilever has more than 400 brands, 12 of which generate sales in excess of €1 billion a year. Its top brands include Dove, Knorr, Magnum ice-cream, Lipton tea, Axe/Lynx deodorant, Hellman’s mayonnaise and Omo, Persil and Surf. In 2011 Unilever worldwide turnover was €46.5 billion, with the underlying sales growth of 6.5%. The mission of Unilever is to help people everywhere increase the quality of their life without increasing their environmental footprint. As a result, Unilever has set out an ambitious plan to help more than a billion people to improve their health and well-being, to halve the environmental impact of its production activities and to improve the livelihoods of half a million people in the supply chain by 2020. Unilever’s human resource is its key asset. Census reports of 2010 indicate that the employees were 171,000 who composed of a cultural diversity such as the markets that the company operates in. The company operates in 180 countries; the map indicates the presence of Unilever. Of these employees top leadership consists of representatives from 22 nationalities. In 2010...
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...Mary and her husband, Dimitri lived in a tiny village in southern Greece. One of Mary’s prize possessions was a little white lamb which her husband had given her. She kept it tied to a tree in a field to a tree in a field during the day and went to fetch it evening. One evening how, the lamb was missing. The rope had been cut, so it was obvious that the lamp had been stolen. When Dimitri came in from the fields, his wife told him what had happened. Dimitri at once set out to find the thief. He knew it would not prove difficult in such a small village. After telling several of his friends about the theft, Dimitri found out that his neighbor, Aleko had suddenly acquired a new lamb. Aleko denied taking it and led dimitri into his backyard. It was true he had just bought a lamb; he explained, but his lamb was black. Ashamed of having acted so rashly, Dimitri apologized to aleko for having accused him. While they were talking, it began to rain and Dimitri stayed in Aleko’s house until the rain stopped. When he went outside half and hour later, he was astonished to find that the little black lamb was almost white. Its wool, whick had been dyed black, had been washed clean by the rain. Question: (a) What happened one evening when Dimitri was away from home? (b) What did Dimitri do when he came to know that the lamb was...
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...A proposal On An analysis on how customer loyalty affects the growth and profitability of the FMCG organization: a case study of Unilever Table of Contents 1. Introduction 1 2. Rationale for the Chosen Topic 1 3. Aim of the research 2 4. Research objectives 2 5. Research questions 3 6. Literature Review 3 7. Research Paradigm 5 8. Research Methodology 5 8.1 Research Philosophy 5 8.2 Research Approach 6 8.3 Research Strategy 6 8.4 Data collection Techniques 7 8.5 Sampling 7 Figure: Sampling Technique Classification 7 Source: Parasuraman, 2001 7 8.6 Data analysis tools and techniques: 8 8.7 Limitations of the study 8 9. Ethical Considerations 8 10. Time framework 8 11. List of references 9 1. 2. Introduction Customer loyalty and brand equity are the issues of high concentration by the twenty first century marketers for ensuring sustainable growth and profitability of business. The real asset of business in recent times is its customers. The cornerstone of assuring growth and profitability of business is the smooth operation of business (Hallowell, 2008). Strategies driven for obtaining customer loyalty are being adopted today by many successful organizations. For achieving high customer loyalty, no stone has been remained unturned in today’s highly competitive business world by business organizations (Zeithaml et al., 2011). The effect of profitability and growth on the basis of customer loyalty of the FMCG firms...
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...Unilever�s growth strategy Critical Analysis of the Performance of Unilever since 2006 In 1999, Unilever implemented what they considered to be an ambitious strategy named 'Path to Growth' which they believed achieved a lot in terms of 'brand focus, global buying, operating margins and capital efficiency' (Cescau & Rivers, 2007b). However, according to the then Group Chief Executive Patrick Cescau, the 'strategy failed to transform growth performance' (Cescau & Rivers, 2007b, 1). Consequently, adjustments were made to the strategy between 2005 and 2006, aimed at reorganizing and streamlining Unilever's organization and to increase awareness of the Unilever brand (Johnson & Scholes, 2006). The changes improved Unilever overall between 2006 and 2009 despite the economic downturn which was to occur during the course of the strategy implementation. Between this time period Unilever primarily focused on four areas: innovation, disciplined execution of strategy, focused cost cutting and driving a performance culture (Unilever, 2009a). In terms of innovation, Unilever delivered 'bigger and better innovations, rolled out faster and to more markets' (Unilever, 2009, 5). The tremendous success in fast and effective rollout of innovations was enhanced greatly by the one organizational structure (One Unilever) introduced into the business as a result of the adjustments made to Path to Growth (Unilever, 2009a). For example, the Dove Minimising Deodorant has been rolled out across...
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...Industry Analysis (unilever) The Philippines subsidiary company of Anglo- Dutch multinational company is planning to invest 5.37 billion pesos in the country. The expansion will increase with a capacity of 33% in the country or an equivalent of another 100,000 tons. The investments is set to be completed in year 2020 and expected to boost Unilever’s asset base in the Philippines, including the purchase of additional 129 assets. Unilever will also introduce pioneering technology in all categories of operations for food, personal and home care. With its initiatives, it helps the country to have sustainable living and contribute to poverty reduction by providing 10, 000 jobs indirectly that include distributors and suppliers. Also Unilever Philippines and its parent firm are exploring for a possibility of the country to supply edible oil requirements for both local and global business. Currently, there are about 500 farming beneficiaries as it sources tamarind and purple yam from local farmers. http://www.rappler.com/business/industries/75251-unilever-investments-philippines-expansion SWOT Analysis Strengths * Strong emotional touch * Usage of social media to reach teenagers and promote the campaign * Unilever facebook page has over 2 million likes * Relate on the campaign because it tackles about their issues as a teenager * The camp will start during summer break where teenagers have a lot of free time * Provides website to give young generation information...
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...Networks and Innovation of Unilever Company 3 1. Introduction 3 2. Internationalization strategy 3 3. Visualization and interpretation of the parent-subsidiary network 4 3.1 Betweenness Centrality 5 3.1 Density of Network 7 3.3 Degree Centrality 8 4. Analysis of the organization’s Network 8 4.1 Locational aspects 8 4.2 Activity aspects 9 4.3 Size aspects 9 5. Implications for the innovation strategy of Unilever 9 5.1 Meeting consumer needs 10 5.2 Introduction of new products 10 5.3 Sustainable Innovation 11 6. Conclusion 11 References 12 Global Networks and Innovation of Unilever Company 1. Introduction Unilever is one of the best companies with its headquarters in London, UK that focus on the wellbeing and health of people by providing products such as affordable soaps, ice creams, household care products and luxurious shampoos (Weingardt, 2007). Unilever has been recognized as a leading provider of brands such as Omo, Knorr, Lipton, Hellmann’s and other trusted local names such as Suave, Pureit, and Blue band. The company has presence all over the world and increased sales gave accounted to increased turnover that hit €53.3 billion in 2015. There are more than 172,000 workers who work for Unilever, and the company has been selected as number one as the fast-moving consumer goods employer, according to the selection of students in 26 countries (Wolf, 2011). 2. Internationalization strategy Unilever being one of the strongest...
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...EXECUTIVE SUMMARY Unilever is an Anglo-Dutch company, with a history of grand operation, Today it owns most of the world's consumer product brands in food, beverages, cleaning agents and personal care products. Unilever Bangladesh Ltd is one of the world’s most successful consumer goods manufacturing companies with local manufacturing facilities. Unilever brands are trusted everywhere and, by listening to the people who buy them, they've grown into one of the world's most successful consumer goods companies. In fact, 150 million times a day, in over 190 countries, someone somewhere chooses a Unilever product. Unilever Bangladesh Limited has five departments to carry out all their organizational functions. This report is designed in six chapters. Initially the opening words about the report were described in the first segment titled “Introduction”. The next segment “Overview of Unilever” contains the history of Unilever, Unilever Bangladesh Ltd, and Organizational structure. The next chapters are on firm organizing, Industry Analysis, CSR Activities, Innovative Managerial Practices And at last is the conclusion of this report Table of Contents Contents | page | 1. Introduction…………… | | 1.1. Unilever Global | 1 | 1.2. History of Unilever | 1-2 | 1.3. Unilever Bangladesh Limited | 2 | 1.4. Unilever Today | 2-3 | 1.5. Mission | 3 | 1.6. Vision | 3 | 1.7. Strategies followed by Unilever | 3-5 | 1.8. Consumers | 5-6 | 1.9. Products offered | 7-9 | | | 2. Firm...
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...have been asked by the Marketing Director of Unilever Company to advice on how and why they should strategically plan their future marketing plans. Unilever is world’s top Fast Moving Consumer Goods Company with a heritage of over 122 years.Unilever Limited is a leading consumer goods manufacturer it s product used in 190 countries. The company is committed to provide a range of diversity in the products as its consumer base. It targeting the emerging market with a low price LUX bath soap at the same time it target the high class customers with the Pears soap, which have comparative high price. Unilever deals in more than 400 brands, and 12 of which are responsible for approx £1 billion sales figure each product. According to a company survey and analyzing the turnover it estimated that more than 1 billion people use the Unilever product on daily basis to provide natural solution healthy and holistic lifestyle (www.unilever.com accessed on 12 august 2012). Most of the products are herbal based and very friendly to the health without any adverse effects. The company is manufacturing a variety of products and marketing in order to keep the loyalty of customers worldwide. Through research and development facilities the products are developed as per the emerging demands of the customers. In current, Unilever spend £1 billion on regular year program spend in research and development of the products. Innovation is the main key of Unilever success, it help the company in enhancing...
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...MGT 6170-Marketing, Unilever in Brazil Case Study Table of Contents 1. INTRODUCTION ............................................................................................................... 2 1.1. 2. Aim of the report .................................................................................................. 2 CONSUMER BEHAVIOUR ON PURCHASE OF DETERGENTS IN BRAZIL ................. 2 2.1. 2.2. Consumer decision Process ................................................................................. 2 Influences on consumer decision making ............................................................ 2 3. MAIN PLAYERS AND THEIR CURRENT STRATEGIES .................................................. 3 3.1. 3.2. Unilever and their current strategies ................................................................... 3 P&G and their current strategies ........................................................................ 4 4. 5. SWOT ANALYSIS ............................................................................................................... 4 STRATEGIES FOR UNILEVER ......................................................................................... 5 5.1. 5.2. Growth Strategies ................................................................................................ 5 Market Penetration Strategy ................................................................................ 6 6. 7. CONCLUSION ...........................
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