ipl-logo

Case Study: How International Business Environment Impacts Unilever

3887 Words16 Pages

C) How International Business Environment Impacts Unilever Unilever faces a very stiff competition among top performing multinational corporations namely P&G, Nestle, Kellogs or Coca-cola just to name a few. They all battle for world domination, in a very crowded competitive environment. Figure: Competitive rivalry in the fast moving consumer goods industry (FMCG) Source: HuffingtonPost.com As these organisations integrate different markets their widening and enlargement of operations often help them increase their profitability, win subsequent market shares due to the strengths of multiple business units ( with their own competitive advantage strategies) subsidiaries, established in a multitude of world local markets. Moreover, Cost saving outsourcing policies also help sustain or solidify their competitive advantage. Nike manufacturing is the perfect example of a global multinational corporations that cut cost through its outsourcing in countries like china Vietnam, Turkey or the Philippines. Ultimately selling products to foreign markets is solving the easy profit equation of globalisation/. Example of Chinese companies that have successfully implemented global policies by expanding in foreign …show more content…

The company’s performance in 2013 and 2014 shows that the results are not as good as expected due to the fact that the company battles with high operating costs to remain afloat. (This Day Live, 2014) According to RTE news (2014), emerging markets, which are the key for Unilever business, have taken a dive in recent months, with Brazil sliding into recession, China facing the worst slowdown in 24 years and Russia dealing with Western sanctions over the crisis in Ukraine. Although the company is exposed to risks in emerging market they also represent.”_(Link:

Show More
Related
3531 Words | 15 Pages

Analysis of Financial Statements Student number: 10221450 Word count: 2993 words Excluding Bibliography Course code: B9AC106 Course title: Financial Analysis Lecturer: Mr. Enda Murphy Company: Whitbread PLC   Table of Contents 1. Whitbread plc 3 Financial Ratio Comparison 6 1.1 Profitability Ratio 6 1.2 Liquidity Ratio 9 1.3 Efficiency Ratio 11 2. Intercontinental hotels group plc and Ratio Comparison with Whitbread 12 3. 10% Stake in Intercontinental Hotels Group PLC 13 Conclusion 16 Market Value and Book Value

Read More
805 Words | 4 Pages

Unit 1: The Business Environment Task 1: Describe the types of business, purpose and ownership of two contrasting businesses. Tesco is a profitable British global company and is the third largest retailer in the world measured by profits. Brockenhurst is a non-profitable local organisation located in the New Forest run by the government. Tesco 's is the grocery market leader in the UK where it has a market share of 27.8%. (Tesco 's was founded in 1919 in London and Jack Cohen bought a plot of land in 1934) since then the supermarket has expanded.

Read More
1823 Words | 8 Pages

Kraft Heinz Case Study Executive Summary Problem Statement The focal problem that Kraft Heinz Company (KHC) faces is the decrease in demand of packaged-foods, while trying to increase revenue. Analysis This analysis studies Kraft Heinz Company’s strategy, competitive position in the market, problems being faced, and the company’s financials.

Read More
1026 Words | 5 Pages

Global strategy is an international strategy that implements by a company which they doing their business in different countries. Internationalization is a process for IKEA expand its business and it was quite important because through the internationalization process, IKEA was able to gain a broader area of marketplace to sales their products, which will lead to profit and revenue increased and new market places existed mean new opportunity for IKEA to improve their product in order to meet the customers’ needs. The first reason that IKEA should go to international level is because the Swedish market is small and no enough for IKEA to expand itself. This is important for IKEA because the small market mean low opportunity, lower profit and

Read More
764 Words | 4 Pages

Porter’s Five Force Model Porter’s five force model is the model that shows the competitive environment of any firm. This model is essential for the Meso analysis. It distinguishes the market attractiveness of the business. This model is invented to determine the market attractiveness, how attractive is the market where all the competitors are in.

Read More
2329 Words | 10 Pages

What is normally suggested is that if a firm is producing, manufacturing or reselling goods that they usually export since it is the easiest and least risky method. The risk that occurs if this type of strategy is used is that the firm depends on the company that will be exporting to and their customers in order for their product to be known. Yet other strategies include a joint-venture, licensing and franchising, foreign direct investment, and strategic alliances which even though they have more risk than just exporting they are more likely to be used than full ownership. These strategies give the firm the opportunity to still have some control, at different levels, of how the product will be managed in the foreign country. An example of this is Kia Motors direct investment in Slovakia in 2004 or Volkswagen’s joint-venture with Skoda for a period of time in 1991.

Read More
1972 Words | 8 Pages

Introduction The company selected for this research is McDonald’s Australia Holdings, a patented public company in Australia. The company specializes in food and beverage products such as burgers, coffee, sandwiches, McCafe beverages, and soft drinks, among others. The primary activity of the company, which generates most of its revenues from food and beverage services, entails establishing and operating a chain of family restaurants that offer quick services throughout Australia. While the company owns and runs a smaller number of the McDonald’s Australia Holdings’ restaurants, a larger number of the restaurants is owned and ran by franchisees, who shell out the company’s service fees and rent (Buchan, 2012). The 2013 annual revenue of the

Read More
3469 Words | 14 Pages

1) Evaluate how Nestlé 's approach to corporate responsibility was good for their business. Corporate businesses generally have to meet ethical, legal, commercial and public expectations. That is what is expected of the business world today. This is known as the Corporate Social Responsibility (CSR). However, businesses with short-term goal will rarely practice CSR since practicing it does not bring any benefit.

Read More
976 Words | 4 Pages

Firm Infrastructure Unilever is a global company therefore they have a strong financial backup to focus on high quality food solutions with continuous value addition • Helps to invest in premium products and services • Enough funds for continuous innovation Human Resource management Retention of skilled employees through a total rewards system to retain the consistency of quality of products and services • To remain a consistent quality in premium products and service. Technology Using premium technology solution such as SAP ERP to track quality throughout the supply chain. Further to deliver the products on time.

Read More
2155 Words | 9 Pages

Unilever is one of the world’s oldest multinational companies. Its origin dates back to the 19th century when a group of companies, the soap and margarine independently produced. In 1930 the company joined in 1940 to form Unilever diversified into food products through the next five decades, he has developed as a major fast moving consumer goods (FMCG) multinational operation in several companies. In 2004, Unilever has set 2010 strategic plan into action with the order, "vitality, the life" and "to meet the daily nutritional requirements, hygiene and personal care with brands that help people feel good, look good and more

Read More
811 Words | 4 Pages

Like many multinational companies, Unilever has to execute the local, regional and global rules, laws and regulations. They cover in many terms, including product safety, employment health and safety, the environment, taxes... Legal frameworks affect on the ageing of the population (Maestas and Zissimopoulos, 2010).. For example , the age of mandatory retirement was removed in both the UK and the Netherlands , which means that Unilever can no longer force employees to retire when they reach the age of 65. This factor could lead to several threats and opportunities.

Read More
761 Words | 4 Pages

As a result Unilever like a vast majority of other companies have moved away from mass marketing their products and brands in favour of a more targeted approach.

Read More
1424 Words | 6 Pages

In the Present situation IN the present situation the strategy of expansions is very important as world economy tends to globalize and nowadays, multinational companies like Nike which can hardly locate production in one country only but

Read More
806 Words | 4 Pages

Evaluate the positive and negative of globalization on Vietnam Today, there are increasing international brands set their factories in Vietnam such as Columbia Sportswear, L.L.Bean and Nike(DangThu,2011). It is not a secret that globalization is increasing substantially and creating new opportunities for Vietnam. As Wild and Han said, ‘Globalization trend toward greater economic, culture, political, and technological interdependence among national institutions and economic. ’(Wild&Han, 2006:6) However, globalization not only took benefits to Vietnam.

Read More
833 Words | 4 Pages

Multinational corporations had brought numerous opportunity to developing country such as job opportunity, increasing guarantee at employment rate. It is benefited for developing country to improve the economy. According to Management development in international companies in China (Stephen T.K. Li, 1999), China is obtained 10% average annual by multinational companies and foreign companies create over 8 million job opportunity to China people, most importantly, China had a low employment rate before multinational companies enter into China. Consequently, the international companies are benefited to developing economy to developing

Read More

More about Case Study: How International Business Environment Impacts Unilever

Related Topics

Open Document