HEC MBA - BEST IN FRANCE CASE STUDY UNILEVER
HEC MBA - BEST IN FRANCE CASE STUDY UNILEVER Jouy en Josas, December 2003 AGENDA Company Overview International Growth Policies Values Adaptation Conclusions 2 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 3 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 4 COMPANY OVERVIEW Regional and Category Highlights Turnover by Region % 2002 Turnover by Category % 2002 1% 19% 11% 16% 25% 40% 13% 18% 7% 9% 15% 26% Europe Asia and Pacific North America Latin America Africa and Middle East Dressings Spreads Health and Beverages Ice Cream & Frozen Foods Home Care Personal Care Other 5 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 6 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 7 AGENDA Company Overview International Growth Policies Values Adaptation Conclusions 8 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 • Home & Personal Care Regions — Home and Personal Care, Asia — Home and Personal Care, Europe — Home and Personal Care, North America Basic Units — HPC Africa & Middle East National Companies — 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 International Innovation Centers / Categories —Unilever Bestfoods North America & Slimfast worldwide —Unilever Bestfoods, Europe • Non Divisional Groups —Africa Regional Group 9 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 Business INTERNATIONAL Specific Potential GROWTH Expertise Special focus on Development of Revenues Growth Innovation Centres 10 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 BUSINESS DRIVERS • Innovation center in Dijon for • Know how, expertise Mustard and Dressings • Production plants and sales offices to distribute HPC and Foods • Volume of business products • Proximity to the consumers 11 INTERNATIONAL MOBILITY POLICY Since Unilever is a global Company, there is a strong international mobility to promote “high potential” career growth and diversity How? Who? • Young Managers, to gain international • Management development process experience early • Specialists, to fill a specific role • Opening job posting • Managers with exceptional potential (Top Management Development) 12 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 INTERNATIONAL MOBILITY POLICY During the last years, there is a strong trend within the company (including France) to go from expatriation to local hiring From Towards Home Home Host Host Home Host Gross Salary Net Policy 14 AGENDA Company Overview International Growth Policies Values Adaptation Conclusions 15 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 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 AGENDA Company Overview International Growth Policies Values Adaptation Conclusions 18 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 multilocal 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 19 ACKNOWLEDGEMENT Special thanks to: • Mr. Patrice Venet – National HR Department (Unilever France) patrice.venet@unilever.com • Mrs. Fernanda S. Sanchez – Data Collection Manager (UBF France) fernanda.sanchez@unilever.com 20 Group D Arnaud Lelache Augusto Accorsi Peter Feddersen Philip Cacouris
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