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|Introduction |
|Organizational Study |
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|About the Company |
|History |
|Company Profile |
|Objective of the Company |
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|Mission and Vision |
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|Principles and Environment Policy |
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|Research Methodology |
|Research Design |
|Types of Data |
|Objective of the Study |
|Limitations of the Study |
|Product & Services |
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|Industrial Analysis |
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|Departments in Unilever |
|Research & Development Department |
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|Key Areas (Analysis of Financial Performance) |
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|Suggestions & Conclusions |
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|Bibliography |
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|Annexure |

Introduction

Organizational Study

This project is on the organisational study of Unilever Arabia; one of the biggest multinational companies, which are a part of Unilever, started its first on-shore operations in the Arabian Peninsula in Dubai, United Arab Emirates in 1992. The Gulf Business Unit encompasses the markets of Bahrain, Kuwait, Oman, Qatar, United Arab Emirates and Yemen. It is an establishment organization with experienced staff, resources & a large number of customers.

This organizational study is for the purpose of learning the various functions of different departments in the organization and also to get more or less the complete picture of the organization.

An organization is a formal group of people with one or more shared goals. Peter Senge defined an organization as human beings cooperating in dynamical systems (as defined in systemics) that are in a state of continuous adaptation and improvement. An organizational study is the study of individual and group dynamics in an organizational setting, as well as the nature of the organizations themselves. Whenever people interact in organizations, many factors come into play. Organizational studies attempts to understand and model these factors.

Organizational studies also includes research efforts to inform the effective management of organizations, and addresses organizational culture, organizational learning and managing change as major factors affecting organizational effectiveness, beyond the basics of organizational structure. An organization or organization is a formal group of people with one or more shared goals. The word itself is derived from the Greek word organon meaning tool. The term is used in both daily and scientific English in multiple ways. In the social sciences, organizations are studied by researchers from several disciplines. Most commonly in sociology, economics, political science, psychology, and management. The broad area is commonly referred to as organizational studies, organizational behaviour or organization analysis. Therefore, a number of different theories and perspectives exist, some of which are compatible, and others that are competing.
• Organization – process-related: an entity is being (re-)organized (organization as task or action).
• Organization – functional: organization as a function of how entities like businesses or state authorities are used (organization as a permanent structure).
• Organization – institutional: an entity is an organization (organization as an actual purposeful structure within a social context)

About the Organization

History Although Unilever wasn't formed until 1930, the companies that joined forces to create the business we know today were already well established before the start of the 20th century. Unilever's founding companies produced products made of oils and fats, principally soap and margarine. At the beginning of the 20th century their expansion nearly outstrips the supply of raw materials. Tough economic conditions and the First World War make trading difficult for everyone, so many businesses form trade associations to protect their shared interests. With businesses expanding fast, companies set up negotiations intending to stop others producing the same types of products. But instead they agree to merge - and so Unilever is created.

Unilever's first decade is no easy ride: it starts with the Great Depression and ends with the Second World War. But while the business rationalizes operations, it also continues to diversify. Unilever's operations around the world begin to fragment, but the business continues to expand further into the foods market and increase investment in research and development. Business booms as new technology and the European Economic Community lead to rising standards of living in the West, while new markets open up in emerging economies around the globe. As the world economy expands, so does Unilever and it sets about developing new products, entering new markets and running a highly ambitious acquisition programme. Today the company is fully multinational with operating companies and factories on every continent and research laboratories at Colworth and Port Sunlight in the United Kingdom; Vlaardingen in the Netherlands; Trumbull, Connecticut, Englewood Cliffs, New Jersey in the United States; Bangalore in India; and Shanghai in China. The US division continued to carry the Lever Brothers name until the 1990s, when it adopted the parent company's moniker. The American unit is now headquartered in New Jersey, and no longer maintains a presence at Lever House, the iconic skyscraper on Park Avenue in New York City. Unilever has recently completed a five year vitality company initiative in which it began to converge the marketing of disparate arms of their business, including personal care, dieting, and consumables into an umbrella function displaying the breadth of their contributions to personal vitality. This plan has been implemented because of the lack of brand recognition that Unilever wields, even despite its ubiquitous presence. Company Profile Unilever Arabia is Middle East’s largest fast moving consumer goods company. Unilever started its first on-shore operations in the Arabian Peninsula in Dubai, United Arab Emirates in 1992. The Gulf Business Unit encompasses the markets of Bahrain, Kuwait, Oman, Qatar, United Arab Emirates and Yemen. The countries have a combined population of over 29 million people with a GDP per capita of over $19,000 (excl. Yemen). Similar to Mashreq and Saudi Arabia, a large portion of the population in the Gulf Business Unit is under 25. The business unit employs over 1000 people and has four distribution centers based in Dubai, Abu Dhabi, Bahrain & Muscat. In addition, the business unit is home of one of the leading tea factories in the world. Unilever Middle East’s head office is located in Dubai, U.A.E. One of the top 20 cash generating businesses in Unilever and the most successful companies in Asia/AMET (Africa, M.E. & Turkey) region. Unilever Arabia employs over 4200 people and work with many prominent and successful local partners like Binzagr, Al Gurg, Thani Murshid and Towell Ltd. Unilever Arabia is also one of the single largest advertisers in the Middle East region. Unilever Arabia earns a profit of $45 to $60 million every month and faces immense competition from P&G.

Objectives of Unilever Arabia

1. Ensure safety of its products and operations for the environment by using standards of environmental safety, which are scientifically sustainable and commonly acceptable.

2. Develop, introduce and maintain environmental management systems across the company to meet the company standards as well as statutory requirements for environment. Verify compliance with these standards through regular auditing.

3. Assess environmental impact of all its activities and set annual improvement objectives and targets and review these to ensure that these are being met at the individual unit and corporate levels.

4. Involve all employees in the implementation of Environmental Policy and provide appropriate training. Provide for dissemination of information to employees on environmental objectives and performance through suitable communication networks.

6. Encourage suppliers and co-packers to develop and employ environmentally superior processes and ingredients and co-operate with other members of the supply chain to improve overall environmental performance.

7. Work in partnership with external bodies and Government agencies to promote environmental care, increase understanding of environmental issues and disseminate good practice.

8. Ensure Health & Safety of the employees at all times due to the increasing accidents while driving and at work place. .All the employees of Unilever Arabia are ensured that they work in a safe and sound environment without any risk to their life.

9. Health & Safety policies are followed at all the units of Unilever Arabia to ensure that their employees are safeguarded.

Mission and Vision:

Mission:

Unilever Arabia's mission is to add vitality to life. They meet everyday needs for nutrition; hygiene and personal care with brands that help people feel good, look good and get more out of life.

Their deep roots in local cultures and markets around the world give them their strong relationship with consumers and are the foundation for their future growth. They will bring their wealth of knowledge and international expertise to the service of local consumers - a truly multi-local multinational.

Their long-term success requires a total commitment to exceptional standards of performance and productivity, to working together effectively, and to a willingness to embrace new ideas and learn continuously. To succeed also requires, they believe, the highest standards of corporate behavior towards everyone they work with, the communities they touch, and the environment on which they have an impact. This is their road to sustainable, profitable growth, creating long-term value for their shareholders, their people, and their business partners.

Vision:

Unilever Arabia enjoys international recognition within Unilever and outside, thanks to its performance in both the domestic and export markets. This has been a major factor in allowing them to tap the global sourcing opportunity. Their engineering design, setup and project management skills have enabled them to set up capital facilities at one-fourth to one-third of costs in developed countries. Their factories’ commitment to quality, reliability and productivity, which has been greatly enhanced by the adoption of TPM, has helped them to deliver ‘world class quality at world scale costs’.

High-quality management talent has not only helped to get business in, but has also sustained it through excellent product & process innovation. Their customer service is supported by excellent IT-based systems and processes. Domestic scale has helped gain significant cost advantages.

Our vision is to continue to be an environmentally responsible organization making continuous improvements in the management of the environmental impact of our operations. We will achieve this through an Integrated Environment Management approach, which focuses on People, Technology and Facilities.

Swot Analysis: A scan of the internal and external environment is an important part of the strategic planning process. Environmental factors internal to the firm usually can be classified as strengths (S) or weaknesses (W), and those external to the firm can be classified as opportunities (O) or threats (T). Such an analysis of the strategic environment is referred to as SWOT analysis.

SWOT Analysis Framework

Environmental Scan

Internal Analysis External Analysis

Strengths Weaknesses Opportunities Threats

SWOT Matrix

The SWOT Matrix of Unilever Arabia is as follows: Strengths:

1. Strong and well differentiated brands with leading share positions. Brand portfolio includes both global Unilever brands and local brands.

2. Consumer understanding and systems for building consumer insight.

3. Strong R&D capability well linked with business.

4. Integrated supply chain and well spread manufacturing units.

5. Distribution structure with wide reach, high quality coverage and ability to leverage scale.

6. Access to Unilever global technology capability and sharing of best practices from other Unilever companies.

7. High quality manpower resources.

Weaknesses:

1. Increased consumer spends on education, consumer durable, entertainment, travel etc resulting in lower share of wallet for FMCG.

2. Limited success in changing eating habits of people.

3. Complex supply chain configuration, unwieldy number of SKU's with dispersed manufacturing locations.

4. Price positioning in some categories allows for low price competition.

5. High Social costs (housing, food grains & firewood, health and other welfare measures) in the business.

Threats:

1. Low priced competition now present in all categories.

2. Grey imports.

3. Spurious/counterfeit products in many areas of the Gulf market.

4. Changes in fiscal benefits.

5. Unfavourable raw material prices in oils, tea commodity etc.

Opportunities:

1. Market and brand growth through increased penetration.

2. Brand growth through increased consumption depth and frequency of usage across all categories.

3. Upgrading consumers through innovation to new levels of quality and performance.

4. Emerging Modern Trade can be effectively used for introduction of more upscale Personal Care products.

5. Growing consumption in Out of Home categories.

6. Position Unilever Arabia as a sourcing hub for Unilever companies in various countries.

7. Leveraging the latest IT technology.

Principles and Environment Policy

Code of Business Principles Unilever has earned a reputation for conducting its business with integrity and with respect for the interests of those our activities can affect. This reputation is an asset, just as real as our people and brands.

Our first priority is to be a successful business and that means investing for growth and balancing short-term and long-term interests. It also means caring about our consumers, employees and shareholders, our business partners and the world in which we live.

To succeed requires the highest standards of behavior from all of us. The general principles contained in this Code set out those standards. More detailed guidance tailored to the needs of different countries and companies will build on these principles as appropriate, but will not include any standards less rigorous than those contained in this Code.

We want this Code to be more than a collection of high-sounding statements. It must have practical value in our day-to-day business and each one of us must follow these principles in the spirit as well as the letter.

Standard of Conduct

We conduct our operations with honesty, integrity and openness, and with respect for the human rights and interests of our employees.

We shall similarly respect the legitimate interests of those with whom we have relationships.

Obeying the Law

Unilever companies and employees are required to comply with the laws and regulations of the countries in which we operate.

Employees Unilever is committed to diversity in a working environment where there is mutual trust and respect and where everyone feels responsible for the performance and reputation of our company. We will recruit, employ and promote employees on the sole basis of the qualifications and abilities needed for the work to be performed.

We are committed to safe and healthy working conditions for all employees. We will not use any form of forced, compulsory or child labour. We are committed to working with employees to develop and enhance each individual's skills and capabilities. We respect the dignity of the individual and the right of employees to freedom of association. We will maintain good communications with employees through company based information and consultation procedures.

Consumers Unilever is committed to providing branded products and services which consistently offer value in terms of price and quality, and which are safe for their intended use. Products and services will be accurately and properly labeled, advertised and communicated.

Shareholders Unilever will conduct its operations in accordance with internationally accepted principles of good corporate governance. We will provide timely, regular and reliable information on our activities, structure, financial situation and performance to all shareholders.

Business Partners Unilever is committed to establishing mutually beneficial relations with our suppliers, customers and business partners. In our business dealings we expect our partners to adhere to business principles consistent with our own.

Community Involvement Unilever strives to be a trusted corporate citizen and, as an integral part of society, to fulfill our responsibilities to the societies and communities in which we operate.

Public Activities Unilever companies are encouraged to promote and defend their legitimate business interests. Unilever will co-operate with governments and other organizations, both directly and through bodies such as trade associations, in the development of proposed legislation and other regulations, which may affect legitimate business interests. Unilever neither supports political parties nor contributes to the funds of groups whose activities are calculated to promote party interests

Organizational Environment & Health Policy

Safety is a universal principle for us and we apply the same standards to our factories and offices across the world. Unilever is committed to providing uniformly safe working conditions for employees worldwide. Safety at work is a primary business objective and the company's aim is to continually improve its performance in this key area. To achieve that, the concept of safety has to be embedded into the values and practices of everyone, everywhere.

Creating a safe workplace requires dual responsibility — of both the employer and the employee — in order to establish and improve standards. High safety standards are an integral part of Unilever's culture. Our dedicated ''Safety & Environmental Assurance Centre'' plays a central role in providing independent assurance and support for our products and processes. Safety decisions are made independently of commercial considerations. Safety is about making decisions on what risks are acceptable and what are not. Risk Assessment is the core process used to identify hazard, quantify exposure and thereby determine potential risk. Based on Risk Assessment, a risk management decision can be made including any control measures necessary for the safe use of ingredients and processes for new and existing Unilever products. Our team has gained a world-class reputation and plays a key role in developing international methods and approaches in this area. It is people who drive safety policies. Unilever works hard to instil safety as an important goal to which its employees are committed. Knowing that safety is not a finite point, all are encouraged to continually improve safety procedures and drive up the safety targets.

Unilever Arabia is committed to meeting the needs of customers and consumers in an environmentally sound manner, through continuous improvement in environmental performance in all our activities. Management at all levels, jointly with employees, is responsible and will be held accountable for company's environmental performance.

Research Methodology

Research Methodology is a science. It is a method used to solve the research problems. Research Methodology deals with the objective of a research study. The method of defining a research problem, the type of hypothesis formulated the type of data collected, methods used for collecting and analyzing the data. For eg; An Architect prepares a blue print before he approved a construction. An army prepares a strategy before launching an attack. So also a researcher makes a plan his study before he undertakes his research work. This will enable the researcher to save time and resources. Such a plan of study or blue print is called a Research Design or Research Strategy. It gives an outline of the structure and process of the research programme. Without such a plan of study, no scientific study is possible.

3.1 Research Design

A plan for collecting and utilizing data so that desired information can be obtained with sufficient precision or so that a hypothesis can be tested properly. The controlling plan for a marketing research study in which the methods and procedures for collecting and analyzing the information to be collected is specified.

3.2 Types of Data

Primary Data

Primary data is the data collected by the researcher himself for the first time and thus they are original in character. Since they are collected for the first time for the purpose of a study, it is primary in nature. The primary data is attained by means of questionnaires and schedules. In some field primary data is collected through interview and observation methods. The observation method for collecting primary data may be both participant and non-participant. In other words, primary data is the first hand information. Primary data may be useful in knowing the opinion, qualities and attitudes of respondents.

Primary Data Instruments: • Interview Schedule • Direct Observation • Interview

Secondary data:

Secondary data are those data, which have been collected by some other person for their purpose and published. Secondary data are usually in the shape of finished products. Secondary data are attained indirectly. The researcher does not attain them himself or directly. Such data are attained from published or unpublished material. The secondary data are gathered through two types of sources. The first source is the personal documents such as diaries, letters, photographs etc. The other sources are public documents such as books, manuscript records, census reports, reports of surveys by private institutions and various information published in newspapers and magazines.

Secondary data Instruments: • Internet • Magazines • Newspapers • Microsoft Excel, Microsoft Word, PowerPoint

Objectives of the Study

The research helps to study the different departments and their functions and it helps to learn the different methods adopted to increase the sales and to attain the goals by competing each other’s. The study helps to reveal the strengths and weaknesses of the organization. It also helps to know the competitors’ marketing strategies used. The study also helps to:
1. Understand the normal setup of the business.
2. Learn their branches and coordination.
3. Organization structure and business culture.
4. Marketing and promotional strategies.
5. To know the layout on the success of the company.
6. To measure the financial performance.
7. To get an insight into how the financial transactions and work are being outsourced.
8. Implementation of new ERP systems in the organization.

Limitations of the Study

To study an organization it takes at least 2 to 3 week’s time. This time has to be fully utilized in order to complete the project within the time limit. But as I am working; I had lot of limitations while doing the project:
1. The scope of the study was limited to only Unilever Arabia (Gulf)
2. Certain types of respondents such as important officials or executives or people in high income group may not be easily approachable, they may be placed abroad and if personal interview method is used, first hand information cannot be sourced and to that extend the data may prove inadequate.
3. Information that would hinder or publicize company’s uniqueness or trade secrets will not be disclosed by company authorities.

Products & Services

Products & Services of Unilever:
150 million times a day, someone somewhere chooses a Unilever product. From feeding your family to keeping your home clean and fresh, our brands are part of everyday life.
With 400 brands spanning 14 categories of home, personal care and foods products, no other company touches so many people’s lives in so many different ways.
Our brand portfolio has made us leaders in every field in which we work. It ranges from much-loved world favourites including Lipton, Knorr, Dove, Omo, Sunsilk, Axe and other well known brands. From comforting soups to warm a winter's day, to sensuous soaps that make you feel fabulous, our products help people get more out of life.
We're constantly enhancing our brands to deliver more intense, rewarding product experiences. We invest €1 billion every year in cutting edge research and development, and have five laboratories around the world that explore new thinking and techniques to help develop our products.
Consumer research plays a vital role in our brands' development. We're constantly developing new products and developing tried and tested brands to meet changing tastes, lifestyles and expectations. And our strong roots in local markets also mean we can respond to consumers at a local level.
By helping improve people’s diets and daily lives, we can help them keep healthier for longer, look good and give their children the best start in life. We also believe that the very business of conducting business in a responsible way has a positive social impact. We create and share wealth, invest in local economies and develop people's skills – both inside our organization and in the communities around us.
Unilever is committed to the elimination of animal testing for its business. It is equally committed to consumer and customer health and safety, and to the safety of its workforce and the environment.
In pursuit of these goals, Unilever on the one hand applies the strictest internal control procedures to ensure that animal testing is only carried out when no alternatives are available to ensure safety, and on the other hand invests in developing and applying alternative methods and novel approaches that will actually replace animal testing in safety assessments for consumer products.
By adopting this dual approach, we advance the elimination of animal testing and reduce the number of tests to the absolute minimum. We provide transparency in both the use of animals and to the progress in developing alternatives.
The safety of Unilever products is assured by rigorous procedures using data from suppliers, the results of previous assessments, and the most up-to-date information from the scientific literature available in the public domain.
Our product development relies to a great extent on our ability to predict the safety of products. When there is a need to develop new data and information, alternative methods to animal testing and human volunteer testing are used to the maximum extent.
In Unilever, non-animal testing is the rule and animal testing is the exception. Unilever does not undertake animal testing or commission others to do such testing on its behalf unless it is necessary to meet its health, safety and environmental obligations or it is demanded by government regulators or other official bodies.
Unilever’s objective is to ensure that their product and services leave an everlasting impact in the lives of each and every consumer.

Brands of Unilever Arabia

Personal Lux Home& Personal Care Lifebuoy Unilever Care Dove Arabia Vaseline Ponds

Jif Laundry Omo SunDish Wash Comfort Lux Progress

Skin Fair&Lovely Care Pond’s

Hair Sunsilk Care Dove Pepsodent

Oral Signal 2 Care Close-up

Deodrants Axe Rexona

Brooke Bond Foods Beverages Lipton & Beverages Mazola Foods Knorr Unilever products are classified as:-

Home & Personal Care

Personal Care

Under Personal Care we all want to make the most of our free time. That's why making those chores around the home that little bit easier is so important. Let our homecare range help lighten the load. Under Home care we have products which come under the heads personal wash, laundry, skin care, hair care, oral care and deodorants like Axe, Dove, Lifebuoy, Lux, Rexona, Ponds, Signal, Sunsilk and Vaseline. Our personal care brands, including Axe, Dove, Lux, Pond's, Rexona and Sunsilk, are recognized and respected around the world. They help consumers to look good and feel good – and in turn get more out of life. Home Care In many parts of the world we lead the home care market, with brands such as Omo, Surf, Comfort and Cif. It's more than just hygiene – with homes and clothes that are clean and cared for, we help you get more out of life. Foods Unilever is one of the world's leading food companies. Our passion for understanding what people want and need from their food - and what they love about it - makes our brands a popular choice. We are committed to adding vitality to people's lives by ensuring our products taste great and can form part of a healthy balanced diet.

Great taste

Our brands help make everyday meals special. And they’re often a passport to world cuisine, turning local dishes into appealing new products. We have the heritage and knowledge to move effortlessly between cuisines and countries.

Flexibility

For people wanting to conjure up a meal in minutes, we make cooking and eating a pleasure. Our solutions, give people everywhere more time to enjoy with friends and family. Meanwhile our Food solutions team is there behind the scenes when people eat out, working with chefs and caterers to create culinary masterpieces.

Healthy choices

Our success is based on making healthy food the easy and enjoyable choice. World-class nutrition and health expertise enables us to provide options that can help you stay healthy – and you’ll look good and feel good all at the same time.

Natural & fresh

Everything in our frozen foods range uses the best-quality, fresh ingredients, which are rapidly frozen. ‘Fresh freezing’ locks in all the nutritional value and taste, without artificial colorings, flavourings or preservatives. It’s all part of our aim to help consumers feel good and get more out of life.

Fun, indulgent & refreshing

We put more fun into a healthy balanced diet with the Lipton range of tea and soft drinks bring refreshment with natural vitality.

Industry Analysis Unilever was arguably the world's first packaged goods manufacturer, and is still one of its biggest companies. "Meeting the everyday needs of people everywhere" is how the group describes itself. It is the world no.1 in personal wash, prestige fragrances and deodorants, with brands including Dove, Omo and Axe. Unilever's foods business is the world's third largest after Nestle and Kraft. It is a global leader in culinary foods and tea-based beverages. Brands include Knorr and Lipton.

Competitors of Unilever Arabia

❖ Proctor&Gamble ❖ Clorox ❖ Colgate-Pamolive ❖ Nestle ❖ Nivea ❖ Henkel ❖ S.C Johnson & Sons Proctor & Gamble William Procter, a candle maker, and James Gamble, a soap maker, formed the company known as Procter & Gamble in 1837. The two men, immigrants from England and Ireland respectively, who had settled earlier in Cincinnati, might never have met had they not married sisters, Olivia and Elizabeth Norris, whose father convinced his new sons-in-law to become business partners. On October 31, 1837, as a result of Alexander Norris' suggestion, a new enterprise was born: Procter & Gamble. P&G is the parent company of companies such as Clairol, and more recently, shaving supply company Global Gillette. P&G brands in more than 160 countries around the world include: Pampers®, Tide®, Ariel®, Always®, Whisper®, Pantene®, Bounty®, Pringles®, Folgers®, Charmin®, Downy®, Lenor®, Iams®, Crest®, Actonel®, Olay® and Clairol Nice ‘n Easy® Clorox The Clorox Company is a manufacturer of various food and chemical products based in Oakland, California, which is best known for its bleach product, Clorox. The product and the company date to May 3, 1913, when five entrepreneurs invested $100 apiece to set up the first commercial-scale liquid bleach factory in the United States, on the east side of San Francisco Bay. In 1957, Clorox was bought by Procter & Gamble, a purchase challenged by the Federal Trade Commission, which feared it would stifle competition in the household products market. The FTC won, and in 1969 Clorox again was made independent. The Clorox Company now owns a number of other well-known household and professional brands across a wide variety of products. Colgate - Palmolive Colgate-Palmolive Company is a multinational corporation in the business of the provision of products such as soaps, detergents, and oral hygiene products such as toothpaste and toothbrushes. Under its "Hill's" brand, it is also a manufacturer of veterinary products. In 2006, Colgate-Palmolive announced the intended acquisition of Tom's of Maine, a leading maker of natural toothpaste, for US$100M. Tom's of Maine was founded by Tom Chappell in 1970. This announcement has received both praise and criticism, with many questioning why a company with a 'No animal testing' policy would sell themselves to a company that does test on animals when not required to by law. However, since Colgate focuses on research and improvement, testing may be necessary for continued innovative development, as it ensures that developed products are safe for human use.

Nestle Switzerland-based Nestle S.A. manufactures a wide variety of food products from chocolate to frozen dinners to pet food. In addition, Nestle is one of the most prominent bottled water companies in the world, and also produces personal and health care products.Nestlé S.A., with headquarters in Vevey, Switzerland, is the world's biggest food and beverage company. Nestlé's existing products extend from mineral waters to baby food to coffee and dairy products. Its main rival is Schweppes. Some people in the English-speaking countries pronounce Nestlé's, matching the English verb nestle. This was the pronunciation used in company merchandising for much of the 20th century (for example, in Nestlé's Milky bar). Nivea NIVEA is a large global skin- and body-care brand, owned by German company Beiersdorf. The company began in 1911 when Beiersdorf developed a water-in-oil emulsifier as a skin cream with Eucerit, the first stable emulsion of its kind. The company's owner, Oskar Troplowitz, named it NIVEA, from the Latin word nivius (meaning snow-white).During the 1930s; Beiersdorf began producing products such as suntan lotions, shaving creams, shampoo and facial toners. NIVEA was expropriated in many countries following WWII. Beiersdorf completed buying back the confiscated trademark rights in 1997. Internationalisation during the 1980s propelled the NIVEA brand to a wider global market. Henkel Henkel KGaA is an international household products company headquartered in Düsseldorf, Germany.

The company has four business sectors operating in three strategic areas: Home Care (with household cleaning products such as laundry detergent and dishwashing liquid), Personal Care (with beauty and oral care products such as shampoo, toothpaste, hair colorants and shower gel), and Adhesives, Sealants & Surface Treatment for consumer and industrial purposes. With presence in 125 countries on five continents, Henkel engages in the majority of their business within Europe and North America. S. C. Johnson & Son S. C. Johnson & Son, Inc., previously known as S. C. Johnson Wax, is a global manufacturer of household cleaning supplies and other consumer chemicals based in Racine, Wisconsin. It has operations in nearly 70 countries and its brands are sold in over 110. It is the largest component of the Johnson Family Enterprises, which also includes the Johnson Financial Group, JohnsonDiversey, Inc. (formerly Johnson Wax Professional and the acquisition of DiverseyLever, comprising primarily the former Dubois Chemical), and Johnson Outdoors. In 2004 S. C. Johnson & Son employed approximately 9,500 and had estimated sales of $6.5 billion.

Departments of Unilever Departmental analysis involves the study of various work and activities related to various departments in a particular concern. A deep analysis of the departments helps us to study the various functions and also gives a clear picture of how each department in the organization works.There are four main departments in the Unilever Arabia where all the departments have equal importance
1. Finance & IT Department
2. Human Resource Department
3. Logistics Department
4. Marketing Department
5. Sales Department [pic]

Research & Development Department R&D activities are conducted by specialized units or centers belonging to companies, universities and state agencies. In the context of commerce, "research and development" normally refers to future-oriented, longer-term activities in science or technology, using similar techniques to scientific research without predetermined outcomes and with broad forecasts of commercial yield. Statistics on organizations devoted to "R&D" may express the state of an industry, the degree of competition or the lure of progress. Some common measures include: budgets, numbers of patents or on rates of peer-reviewed publications. Bank ratios are one of the best measures, because they are continuously maintained, public and reflect risk. In the U.S., a typical ratio of research and development for an industrial company is about 3.5% of revenues. A high technology company such as a computer manufacturer might spend 7%. Although Allergan (a biotech company) tops the spending table 43.4% investment, anything over 15% is remarkable and usually gains a reputation for being a high technology company. Companies in this category include Big Pharma, such as Merck & Co. (14.1%) or Novartis (15.1%), and engineering companies like Ericsson (24.9%).[1] Such companies are often seen as poor credit risks because their spending ratios are so unusual. Generally such firms prosper only in markets whose customers have extreme needs, such as medicine, scientific instruments, safety-critical mechanisms (aircraft) or high technology military armaments. The extreme needs justify the high risk of failure and consequently high gross margins from 60% to 90% of revenues. That is, gross profits will be as much as 90% of the sales cost, with manufacturing costing only 10% of the product price, because so many individual projects yield no exploitable product. Most industrial companies get only 40% revenues. Generally the largest technology companies not only have the largest technical staffs, but also manage them most effectively. On a technical level, high tech organizations explore ways to re-purpose and repackage advanced technologies as a way of amortizing the high overhead. They often reuse advanced manufacturing processes, expensive safety certifications, specialized embedded software, computer-aided design software, electronic designs and mechanical subsystems. Our R&D teams help make brands bigger, bolder and more exciting. They promote innovation across every aspect of brand development.

Inspiration from consumers

R&D teams make brands come to life – they promote innovation across every aspect of their development. Based in six research centers across three continents, your work with them will make our brands bigger, bolder, and more exciting. R&D draws inspiration from consumers and the market to lead research and idea generation and contribute to product design. There will be times when you'll need to work to tight deadlines, but you'll be given the opportunity to step back and explore an exciting new idea. You could be involved in patent protection, regulatory compliance or ensuring that our activities have the lowest possible impact on the environment. Allied with this, championing product design or implementing best-practice quality and hygiene systems are all crucial functions of the R&D sphere.

Our R&D teams are known as some of the world's best, participating in professional networks and teaming up with leading external experts. As part of one, you'll enjoy a working environment that's challenging, creative, and intellectually stimulating, as well as experiencing many different areas of our business.

For research & development you need

• A degree, MSc or PhD in chemistry, engineering, biology, physical science, behavioural science or design or any other relevant technical area.
• A passion for innovation and the determination to bring new ideas to consumers.
• Creativity, as well as the ability to make things happen on time.
• Excellent interpersonal, teamwork and leadership skills. The following products owe their success to innovative science from Port Sunlight:
• Comfort Fast Dry – our fastest drying fabric conditioner.
• Sure Crystal – the deodorant that doesn’t leave white marks on clothes.
• Dove – the deodorant that reduces the irritation that may be caused by shaving. • Domestos active gel – our WC active gel, with unbeatable lime scale removal, hygiene and freshness.

Key Area
Analysis of Financial Performance

Financial performance

Financial performance is a subjective measure of how well a firm can use assets from its primary mode of business and generate revenues. This term is also used as a general measure of a firm's overall financial health over a given period of time, and can be used to compare similar firms across the same industry or to compare industries or sectors in aggregation.

There are many different ways to measure financial performance, but all measures should be taken in aggregation. Line items such as revenue from operations, operating income or cash flow from operations can be used, as well as total unit sales. Furthermore, the analyst or investor may wish to look deeper into financial statements and seek out margin growth rates or any declining debt.

Objectives of the Study

Financial analysis is helpful in assessing the financial position and profitability of the concern. The analysis is also done to assess

1. The present and future earning capacity or profitability of the concern.

2. To measure the operational efficiency of the organization with the help of production cost, supply cost and media advertising costs.

3. Analysis of the sales turnover of the organization.

Tools used to collect this data

The data collected was wholly secondary data i.e. from magazines, internet and from people i.e. accountants and managers related to the work in finance.

Sample Size

The sample size is taken for the analysis of financial performance of the organization for the last 8 years i.e. 1999 to 2006.

Limitations of the study:

To conduct a study on the financial performance of the organization took at least 2 to 3 week’s time. I had to face a lot of difficulties in collecting data for the financial performance of Unilever Arabia since

1. It is difficult to get accurate data to conduct the study as it was confidential. 2. Due to the inaccuracy in data, a correct or clear picture of the financial situation could not be derived. 3. Time was limited and all the data couldn’t be gathered at the right point of time.

Analysis of Financial performance of Unilever

Sales Analysis

Table 1: Net Sales Value for the last 8 years

|Years |NSV ( in $) |
|1999 |401,079 |
|2000 |408,690 |
|2001 |428,005 |
|2002 |451,729 |
|2003 |475,827 |
|2004 |467,051 |
|2005 |528,129 |
|2006 |561,977 |
|Total |3,722,487 |

Interpretation Unilever, the second- biggest maker of food and detergent after Procter & Gamble. The chief executive spent more on advertising to spur sales growth, which has trailed Procter & Gamble, its prime competitor, for at least four years. Sales excluding asset sales and currency effects topped estimates as hot summer temperatures in Middle East spurred demand for Magnum ice cream and Lipton iced tea. From the last eight years the Net Profit Sales of Unilever Arabia has increased. It is noted that for the past 8 years the Sales Values of Unilever Arabia has been increasing. There was drop in the sales value during the year 2004 because of the huge competition from Procter and Gamble. Unilever hence, regained their sales value in 2005 and 2006 with the relaunch of their products like Sunsilk, Knorr and Dove products which captured the Arabia market.

Figure 1

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Gross Profit Analysis

Table 2: Gross Profit for the last 8 years

|Years |GP (in $) |
|1999 |170,477 |
|2000 |183,213 |
|2001 |199,134 |
|2002 |223,936 |
|2003 |241,191 |
|2004 |238,572 |
|2005 |242,649 |
|2006 |265,930 |
|Total |1,765,102 |

Interpretation: Gross Profit is calculated as sales minus all costs directly related to those sales. These costs can include manufacturing expenses, raw materials, labor, selling, marketing and other expenses. It is also total company income minus the depreciation cost of units on rent or disposed before general expenses have been deducted and Gross Profit equals Revenue minus Cost of Goods Sold. It identifies the amount available to cover other operating expenses. Unilever’s gross profit has been increasing from 1999 to 2003 and there was a constant rate of gross profit for 3 years i.e. 2003 to 2005. The gross profit increased for the year 2006.

Figure 2

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Product Cost Analysis

Table 3: Product Cost for the last 8 years

|Years |Product Cost(in $) |
|1999 |182,787 |
|2000 |170,638 |
|2001 |165,909 |
|2002 |165,831 |
|2003 |173,982 |
|2004 |166,813 |
|2005 |191,916 |
|2006 |198,249 |
|Total |1,416,125 |

Interpretation In microeconomics, production is the act of making things; in particular the act of making products that will be traded or sold commercially. Production decisions concentrate on what goods to produce, how to produce them, the costs of producing them, and optimizing the mix of resource inputs used in their production. This production information can then be combined with market information (like demand and marginal revenue) to determine the quantity of products to produce and the optimum pricing. Expenses incurred by production include both fixed and variable costs of production. Unilever has spent a lot on innovating their products during the last 2 years. The product costs had fallen during 2004 due to the lack of innovation for the products which led to a drastic fall in the sales. Then during the year 2005, Unilever decided to add more innovation to their products and this inturn increased the cost of products and brought about a hike in sales. Products like Dove, Knorr, Signal 2 and Sunsilk have boosted up the sales due to their break through in brand innovation.

Figure 3

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Supply Cost Analysis

Table 4: Product Cost for the last 8 years

|Years |Supply Cost (in $) |
|1999 |14,343 |
|2000 |15,616 |
|2001 |17,128 |
|2002 |21,227 |
|2003 |18,344 |
|2004 |17,566 |
|2005 |23,459 |
|2006 |23,214 |
|Total |150,897 |

Interpretation

Supply costs are the portion of your service for which you can shop for an alternate energy supplier, or energy service company. The services below show our costs for supply service. We encourage you to shop and compare other available supplier costs and services.

Unilever showed an increase in their supply costs during the year 2002 when there was increase in the price of raw materials and huge demand for the products. Later that year i.e. 2003 and 2004, there was a drastic fall in the demand for Unilever products due to immense competition and this also lead to fall in the supply costs.

But with the introduction of new lines of products and re-launch of the existing products have created demand for Unilever products, this has inturn led to increase in supply costs.

Figure 4

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Media Advertising Cost Analysis

Table 5: Advertising Cost for the last 8 years
|Years |Media Advt.Costs(in $) |
|1999 |25,506 |
|2000 |27,233 |
|2001 |28,691 |
|2002 |34,548 |
|2003 |33,247 |
|2004 |30,838 |
|2005 |31,764 |
|2006 |30,118 |
|Total |241,945 |

Interpretation

The various mass media that can be employed to carry advertising messages to potential audiences or target markets for products, services, organizations, or ideas. These media include newspapers, magazines, direct mail advertising, Yellow Pages, radio, broadcast television, cable television, outdoor advertising, transit advertising, and specialty advertising. The advertising agency function that involves the determination of advertising objectives, advertising strategies, and advertising tactics relating to the advertising media to be used by specific clients. A media plan includes a statement of objectives, target market definition, types of advertising media to be used, and the amount of resources to be allocated to each (the media mix), and a specific time schedule for the use of each media vehicle.

Unilever has always showed no compromise when it comes to spending money on advertising. The advertising costs have always been higher over the years especially during the year 2002.Presently they have cut down on advertising due to increase in expenses.

Figure 5

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Suggestions & Conclusions

Suggestions

Unilever Arabia is a FMCG company and rely on continued demand for its brands and products. To achieve business goals, Unilever Arabia must develop and sell products that appeal to consumers and retail trade customers. Unilever’s continued success is dependent on leading-edge innovation, with respect to both products and operations. This means they must be able to obtain patents and respond to technological advances and patents granted to competition. Unilever’s success is also dependent on effective sales, advertising and marketing programs in an increasingly fragmented media environment.

Support employees, shareholders and the communities in which they operate in their long-term success and future at Unilever Arabia.

Through multiple acquisitions, a growing number of employees have joined Unilever Arabia with previous work experience at other companies (like Wella, Iams, and Clairol etc) has sometimes played a critical role in their on-boarding and success. Therefore Unilever employees should make every effort to welcome people at Unilever. The personal attention and sensitivity will go a long way toward helping them overcome feeling like a stranger.

With the global spread of its customers, Unilever Arabia should reduce its high recurring costs in running global business process transactions such as vendor payables in multiple languages and currencies. At the same time, a fiercely competitive environment and razor-thin margins in the consumer goods industry will prompt the company to further reduce the cost of operations.

Conclusions

A Company like Unilever can attract the attention of anyone in the whole world. It made and still makes the lives if every individual much easier by providing them with reliable products that they appreciate for their superiority and their safety. In every home, one or more products are found.

Unilever’s business is focused on providing branded products of superior quality and value to improve the lives of the world’s consumers. Unilever believe that this will result in leadership sales, profits and value creation, allowing employees, shareholders and the communities in which they operate to prosper.

Unilever’s purpose as a Company is clear; they create and develop brands that make consumer’s lives little better, brands that make consumer’s lives everyday. This simple purpose has guided Unilever Arabia throughout the Company’s history, from its early years as a small soap business to its position today as one of the leading Branded Consumer Products Companies in the world. Unilever Arabia has a responsibility beyond today’s brand and beyond today’s business, to be responsible corporate citizens, to be good neighbors and to improve the communities in which they live and work, to build a strong foundation to improve the lives of future generations. Unilever brands will continue to improve lives and will continue to grow.

Unilever does not see the sales de-growth as so much of a cause for concern since the management is committed to improving the quality of the growth in bottom-line through cost efficiencies and better sales mix, all of which is visible. Finally, when the economy does pick up Unilever Arabia would be best positioned to exploit the opportunities with a sharply improved cost structure and even sharper management focus.

Bibliography

❖ Kothari, C.R, (2004), “Research Methodology, methods and techniques”, Second Edition, published by New Age International Publishers. ❖ Prasanna Chandra, (2006), “Financial Management”, Sixth Edition, published by Tata McGraw-Hill Publishing Company Limited. ❖ S.P.Jain & K.L.Narang, (2004), “Corporate Accounting”, Sixth Edition, published by Kalyani Publishers. ❖ http://www.ameinfo.com ❖ http://www.marketingpower.com ❖ http://www.unileverme.com ❖ http://www.netmba.com/marketing/pricing ❖ http://www.sap.com ❖ http://www.brs-inc.com/porter.asp ❖ http://www.wikipedia.org ❖ http://www.financialexpress.com/fe_full_story.php?content ❖ http://www.hll.com/mediacentre/07Sep_Indigo_HLL_Capgemini_partnership.doc

Annexure

Making a contribution to society

Unilever has continuously progressed to achieve its corporate responsibility goals: to manage and grow our business successfully around the world as a trusted corporate citizen, respected for the values and standards we represent and that guide our actions & behavior.
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Unilever Middle East's community activities include:
Hosting summer camps to provide practical sales training for high school graduates. The camps aim to teach students, who did not achieve university diplomas, the skills they need for a career in sales.
We offer a great deal of support to local schools by:
Increasing the level of health care and personal hygiene awareness among the children through interactive workshops; leveraging on Unilever’s business skills to enhance the learning experience for students; and organizing dental (Signal) programs for students.

Boosting children’s creativity through an Art Competition. This competition is part of the global Unilever campaign to develop creativity & potential in children.

Unilever Arabia’s Official Web Site

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