Unilever Strategic Management Assignment

UNILEVER ANALYSIS
Group Members:
Dhaifina Idznitia
Nurul Fithri Sylvani
Amasel A. Swasono
Isradila
Lui Anbar Rhainata

COMPANY PROFILE
PT Unilever Indonesia Tbk is one of Indonesia’s leading Fast
Moving Consumer Goods (FMCG) companies. The Company’s
portfolio of Home and Personal Care as well as Foods and
Refreshment products is distinguished by many of the world’s best
known and most trusted brands, including Wall’s, Lifebouy,
Vaseline, Pepsodent, Lux, Pond’s, Sunlight, Rinso, Blue Band,
Royco, Dove, Rexona, Clear and others.
Line of Business: Manufacturing, marketing and distribution of
consumer goods including soaps, detergents, margarine, dairy
based foods, ice cream, cosmetic products, tea based beverages
and fruit juice
Ownership: Foreign Direct Investment
Date of Establishment: 5 December 1933
Stock Exchange Registration: 11 January 1982
Stock code: UNVR

UNILEVER’S VISION
ELEMENT
To earn the love and respect of Indonesia by touching the lives of every
Indonesian every day .
Focus :
The vision of Unilever is specific directed to Indonesian. It can be seen clearly
that the objective focuses on providing good products for Indonesian.
Flexible :
It can adapt with the things happen everyday
Executable :
The statement of Unilever’s vision is realistic by looking at the words “by
touching the lives of every Indonesian every day.
Easy to communicate :
It is simple vision statement and easy to understand because it stated clearly
that the focus is for Indonesian.

MISSION ELEMENT
MISSION
ELEMENT
PRODUCT
S
MARKET
TECHNOL
OGY
SURVIVAL
GROWTH
PROFIT
PHILOSOPH
Y
SELF
CONCEPT
PUBLIC
IMAGE
EMPLOYEE
CUSTOM
ERS

UNILEVER’S MISSION
ANALYSIS:
We work to create a better future every day
Mission element:
Philosophy: The mission above is about philosophy. Unilever wants
tell consumer that their product is good. With the philosophy, they try
to sell good products that can affect to the customers future.
Public Image: The mission is not only telling about their philosophy
but also public image. Because they want to have their customers’
trust that they can give good product to the customers.

Mission Element :
Customer: Focus the business on satisfying customer needs instead
of spotlighting your product or service, The Unilever focus on brands
and services that are good for their customer, to make them look
good and feel good. That’s what the customer need.
Employee: The Unilever mission statement motivate their employee’s
significant work to serve better and how the mission contributes to
people’s lives.
Technology: The Unilever’s mission is produce brands and services
that are good for their customer and good for others. In fact,
producing good brands and services must use a great technology.
So, in their mission they success to describe that they use great
technology to produce their brands and services.
Public image: Companies also need develop their image. I think the
Unilever success to deliver their image to the consumer because they
We help people feel good, look good and get more out of life with
brands and services that are good for them and good for others.

We will inspire people to take small every day actions that can add
up to a big difference
In unilever mission point 3, they explain their customer, which is
Indonesian people in all of aspect.
Mission element:
Public image: in their mission they success to build an image to their
customer that they can inspire people to take small action that can
make a big different change for the world.
We will develop new ways of doing business that allow us to double
the size of our company while reducing our environmental impact.
According to the mission elements above, the last mission figures
the public image and self-concept, because it does not only mention
about the way and the target of the company, but it also mentioned
the awareness of the environmental aspect as mentioned
“….reducing our environmental impact ”.

FIVE FORCE MODEL BY
PORTER TO DETERMINE
INDUSTRY
ATTRACTIVENESS

DESCRIPTION
Numbers:
1. Highly unattractive
2. Mildly unattractive
3. Neutral
4. Mildly attractive
5. Highly attractive

RIVALRY AMONG
COMPETITOR
Current Future
Number of Quality
balance competitor
2 3
Product Features 4 4
Capacity increase 3 3
Diversity
Competitor
2 2
Overall 11 12

DESCRIPTION
Rivalry among competing firms is usually the most powerful of
the five competitive forces. Rivalry increases when consumers
can switch brands easily; when barriers to leave the market are
high; when fixed costs are high and other reasons.
In this case we can take Unilever Company. Their biggest
competitors are P&G (Procter & Gamble) and Nestlé. Between
them, Unilever is world's third-largest consumer goods
company measured by 2012 revenue.

BARRIERS TO ENTRY
Current Future
Economic of scale Small Large
Product differentiation Little 5 5 Big
Brand identification Low 3 2 High
Switching cost Low 2 3 High
Access to distribution
channels
Ample 2 4 Restricted
Capital requirement Low 4 5 High
Access to latest
technology
Ample 4 5 Restricted
Government
protection
Non existent 4 5 High
Experience effect Unimportant 5 5 Very
Important

DESCRIPTION
The threat of entry in food industry is, however, low. As already
mentioned, Unilever is one of the leading companies in food
business. It already competes with other food giants (Nestlé,
Kraft Foods or Mars Foods). Due to positions of the mentioned
companies, it would be difficult for new companies to enter the
market. Relatively high barriers to entry will have to be
overcome in order to success. Besides restrictive government
policies and the need of large financial resources or
diversification of products, there will be also lack of tradition,
experience and advantages that incumbents already possess. It
is very hard for a new entrant to enter the market because it is
very difficult to set up a business where the costs are too high.
The competition from entrants is thus relatively insignificant.

BARRIER TO EXIT
Current Future
Aspects Specialization 5 5
Cost to exit 5 5
Government & Social
Restrictions
4 4
Overall 14 14

DESCRIPTION
Exit barrier are factors which make it difficult for a
business to contemplate leaving a particular industry or
market. As already mentioned, Unilever is one of the
leading companies in food business. It already competes
with other food giants (Nestlé, Kraft Foods or Mars
Foods). Due to positions of the mentioned companies, it
would be difficult for leaving the market because they
already have high in assets specialization, High in cost to
exit.

AVAILABILITY OF
SUBSTITUTES
Current Future
Availability of close
substitutes
2 3
User’s switching cost 3 3
Substitute producer’s
profitability &
aggressiveness
2 3
Substitute price /
value
3 4
Overall 10 13

DESCRIPTION
In case of Unilever foods, one of the possible substitutes
would be a homemade product. The customers might
use alternates due to various reason, such as the cost of
preparing a homemade pasta sauce will be lower than
actually buying a bertolli pasta sauce. Recently, there is
an increasing trend of eating out. Using service can also
be considered to be substitute to purchasing food. But
the restaurants and caterers can also providing
customers with Unilevers product. In doing so, Unilever
benefits from people’s using services.
It can be thus concluded that the threat of subtitutes to
unilever foods is not high due to the potition of unilever
as the leading compaies in food business.

POWER OF BUYER
Current Future
Number important buyers Few 5 5 Many
Buyer switching cost Low 1 1 High
Buyer threat of backward integration High 2 2 Low
Buyer threat of forward integration Low 2 2 High
Contribution to quality or service of
buyers product
Small 3 3 Large
Buyers profitability Low 3 3 High
Overall 16 16

DESCRIPTION
With regards to all the Unilever’s competitors, a customer has a
wide range of products to choose from. It is to be acknowledged
that although one customer might stay loyal to one particular
product or brand, the buyer’s costs of switching from one product
to another is not high. This is, however, relative since for Unilever
supplies with food retailers such as Tesco’s or Carrefour, such
distributors risk losing their customers (thus decrease in profits)
by not providing Unilever food products.
In many cases, the importance of the buyers’ price sensitivity
needs to be emphasized. Given that a consumer is offered two
similar products of the same quality but different prices, there is a
higher possibility that the cheaper product will be chosen. Even
though one might stay loyal to the brand, the other can incline to
try a rival product. The power of buyers is therefore of high
importance.

POWER OF SUPPLIER
Current Future
Number important suppliers Few 4 4 Many
Availability of substitute for
supplier product
Low 3 4 High
Differentiation or switching cost of
suppliers’ product
High 4 4 Low
Supplier contribute to quality or
service of the industry product
Low 4 4 High
Importance of the industry to
suppliers profit
Small 5 5 Large
Overall 22 21

DESCRIPTION
It can be stated that in terms of food production there is
a wide range of raw materials providers that Unilever can
choose from. Unilever has a policy of local buying and
local manufacturing. Which provides itself an edge to
brake power of its suppliers and make them weaker to
negotiate at its own terms. This strategy help to prevent
supplier’s from switching to other competitors and
charge higher rates. Also Unilever treat its supplier’s
fairly so as to create more loyalty among them like
customers.

OVERALL ASSESSMENT
Current Future
Barriers to entry 29 34
Barriers to exit 14 14
Rivalry among
competitors
11 12
Power of buyer 16 16
Power of supplier 22 21
Availability of
substitutes
10 13
Current Future
Overall Industry
Assessment
102 110

CONCLUSION
In the future the attractiveness of this industry can be
stable or even stronger. The product life cycle withstand
because people use their products in their daily life

INTERNAL
ASSESSMENT
Unilever SWOT,
IFE and Value
Chain Analysis

STRENGTH
1.Contribution of home and personal care to net sales is 72.9%
2.Marketing and selling expenses increased by 12.5% to Rp6.6 trillion
3.Strong portfolio of brands and diversified product range
4.Contribution to Total Turnover is 27% in 2013
5.Holding 15% shares of total in Indonesian Stock Exchange
6.Cash position in 2013 increased by 13.7% or Rp31.5 billion
7.Unilever operates in nearly 190 countries around the world and
hence, has a global footprint combined with top of the mind brand
recall among consumers worldwide.
8.Unilever has a distinct competitive advantage over its nearest
competitor, Proctor and Gamble because of its flexible pricing and
expertise in distribution channels that manage to reach the nook and
the corner of the globe.

WEAKNESS :
1.Finance income decreased by 61.5% to Rp14.5 billion
2.Sales growth for the year was 12.7%, lower than previous
year growth of 16.3%
3.The Company’s collection period weakened from 30 days
in 2012 to 33 days in 2013
4.No direct connecting with customer
5.Excellent in R&D lead to high in price
6.Employ 6,719 employees in 2013
7.The biggest weakness that Unilever faces is that it operates
in an uber competitive market where the other global giants
like P&G and Nestle in addition to a host of local players
challenge its dominance at every turn and raise the stakes
in the Trillion Dollar FMCG (Fast Moving Consumer Goods)
space.

Opportunities :
1.The diversity of
Unilever’s competitor is
low
2.Unilever Indonesia goes
into 2014 on the back of
market share gains and
robust growth in almost
all categories
3.Keeping with product
innovation based on
consumer expectation
4.The high customer
satisfaction can be seen
from the title of prime
index of consumer
satisfaction.
5.Since 1982, PT.
Unilever Indonesia, Tbk
has been listed on the
Indonesia Stock
Threats :
1.Substitute products in the
market
2.The company sells its
products through a network
of about 370 independent
distributors covering
outlets throughout
Indonesia
3.In the second half of the
year, the Indonesian macro
economy experienced
another test with high
inflation (post fuel subsidy
cut), increased interest rate
and weakening of the
Rupiah
4.Government laws and
regulation quite
challenging
5.Many smuggling of

INTERNAL FACTOR
EVALUATION
Strengths
Weigh
t
Ratin
g
Weighted
Score
1.
Contribution of home and personal care
to net sales is 72.9%
0.12 4 0.48
2.
Marketing and selling expenses
increased by 12.5% to Rp6.6 trillion
0.08 2 0.16
3.
Strong portfolio of brands and
diversified product range
0.09 3 0.27
4.
Contribution to Total Turnover is 27% in
2013 0.08 3 0.24
5.
Holding 15% shares of total in
Indonesian Stock Exchange
0.11 4 0.44
6.
Cash position in 2013 increased by
13.7%
or Rp31.5 billion
0.09 4 0.36

Weaknesses Weight Rating
Weighted
Score
1.
Finance income decreased by 61.5%
to Rp14.5 billion
0.11 4 0.44
2.
Sales growth for the year was 12.7%,
lower than previous year growth of
16.3%
0.05 2 0.10
3.
The Company’s collection period
weakened from 30 days in 2012 to
33 days in 2013
0.06 3 0.18
4. No direct connecting with customer 0.08 4 0.32
5.
Excellent in R&D lead to high in
price
0.06 3 0.18
6. Employ 6,719 employees in 2013 0.07 2 0.14
Total 1.00 3.31

Inbound Logistics
Unilever works with the agriculture industry to get the raw materials
Raw materials enter the manufacturing site
Production and Operation
Raw materials are processed to add more value
End products are packaged. Ready to be shipped
Outbound Logistics
Products are shipped to distributors
Marketing and Sales
The product is promoted through different media such as television,
social media, magazine, etc
Service
•They’re collecting complaints from customers or distributors.
Primary activities:

SUPPORT ACTIVITIES:
Procurement
•Unilever works with the agriculture industry to get the raw
materials
Technology Development
They spent a lot of capital on Research and Development to reduce
environmental impact.
Human Resources Development
Because they are in manufacturing industry, they rely on machine
and their employees. That’s why they have so many employees and
take care of their employees.
Firm Infrastructure
The good management of Unilever planning and financing also add
values for their customers and stakeholders.

EXTERNAL
ASSESSMENT
Unilever EFE &
CPM Analysis

EXTERNAL FACTOR EVALUATION FOR UNILEVER
Opportunities Weight Rating Wt.Score
1. The diversity of Unilever’s competitor is
low
0.06 2 0.12
2. Unilever Indonesia goes into 2014 on the
back of market share gains and robust
growth in almost all categories
0.10 3 0.30
3. Keeping with product innovation based on
consumer expectation
0.08 3 0.24
4. The high customer satisfaction can be
seen from the title of prime index of
consumer satisfaction
0.13 4 0.52
5. Since 1982, PT. Unilever Indonesia, Tbk
has been listed on the Indonesia Stock
Exchange
0.12 4 0.48

THREATS WEIGH
T
RATING WT.SC
ORE
6. Substitute products in the market 0.15 4 0.60
7. The company sells its products
through a network of about 370
independent distributors covering
outlets throughout Indonesia
0.06 3 0.18
8. In the second half of the year, the
Indonesian macro economy
experienced another test with high
inflation (post fuel subsidy cut),
increased interest rate and
weakening of the Rupiah
0.10 3 0.30
9. Government laws and regulation
quite challenging
0.12 3 0.36
10. Many smuggling of product from
Cina
0.08 3 0.24
Total 1.00 3.34

COMPETITIVE PROFILE
MATRIX (CPM)
Unilever Nestlé
Critical Success
Factors
Weight Rating Score Rating Score
Advertising 0.10 3 0.30 2 0.2
Product Quality 0.20 4 0.80 4 0.8
Price
Competitiveness
0.15 3 0.45
4
0.6
Management 0.10 4 0.40 3 0.3
Financial Position 0.15 4 0.60 4 0.6
Customer Loyalty 0.05 2 0.10 3 0.15
Global Expansion 0.20 4 0.80 3 0.6
Market Share 0.05 4 0.20 3 0.15
Total 1.00 3.65 3.4

STRATEGIES IN
ACTION
Unilever Company
Analysis

LONG-TERM OBJECTIVES
Sourcing 100 percent of agricultural raw materials sustainably by 2015,
including 100 percent sustainable palm oil. Unilever buys 3 percent of
the world's annual supply of palm oil.
Change the hygiene habits of 1 billion people in Asia, Africa and Latin
America to help reduce diarrhea -- the word's second biggest cause of
infant mortality. Unilever will push sales of its Lifebuoy soap brand and
teach consumers when to wash their hands to achieve this aim.
Make drinking water safer in developing countries by extending sales of
its Pureit home water purifier.
Improve standards of living by working with agencies such as Oxfam
and the Rainforest Alliance to link 500,000 smallholders and small-scale
distributors to the Unilever supply chain.
Unilever also intends to improve the nutritional quality of its food
products -- with cuts in salt, saturated fats, sugar and calories -- and
link more than 500,000 smallholder farmers and small scale distributors
in developing countries to its supply chain
Earlier this year, Unilever announced a plan to use 100 percent
sustainably sourced paper for packaging by 2020, and the company has
ranked at the top of its sector for sustainability in separate rankings
developed by Two Tomorrows and Climate Counts.

DEFINITION OF STRATEGIES
Definition
1. A method or plan chosen to bring about a desired future, such
as achievement of a goal or solution to a problem.
2. The art and science of planning and marshaling resources for
their most efficient and effective use. The term is derived from the
Greek word for generalship or leading an army.

CONCEPT OF STRATEGIES
Strategy as action, inclusive of objective setting.
With this concept, three types of actions involved in strategy:
a) Determination of long term goals and objectives
b) Adoption of courses of action
c) Allocation of resources
Strategy as action, exclusive of objective setting.
It states that strategy is a way in which the firm, reacting to its
environment, deploys its principal resources and marshals its
efforts in pursuit of its purpose. The people who believe this
version of the definition call strategy a unified, comprehensive and
integrated plan relating to the strategic advantages of the firm to
the challenges of the environment.

VARIOUS STRATEGIES THAT
HAS BEEN IMPLEMENTED
1. Winning with brand and innovation is about development on new
product, such as hair product, male grooming product, home and
personal product and also food and beverages.
2. Winning with market place. Unilever Indonesia promoting their
goods by selling directly to the public with evidence of quality in
real condition. Besides that, Unilever Indonesia also boost the
volume growth in the islands outside Java.
3. Winning with continous improvement. Unilever Indonesia supports
the plan Program Master Plan for the Acceleration and Expansion
of Indonesian Economic Development (MP3I) with pioneering
oleochemichal plant in Seimangkei, North Sumatra. The project
will run in the period 2013-2014, with an investment of Rp 1.45
trillion.
4. Winning with people. Unilever focuses in perfecting management
trainee program (MT) is strong because Employees (people) is the
most important element in business continuity Unilever.

VERTICAL INTEGRATION
Backward Integration
As a multi-national company,
their Procurement team is
purchasing from tens of
thousands of suppliers
worldwide. They control their
supplier by using this strategic
decision called Supplier
Qualification System (USQS).
Their procurement
organization first selects their
suppliers, then those selected
are invited to register in USQS
and this system is how they
qualify those suppliers to do
Forward Integration
Unilever has PT Technopia
Lever, a 51% owned subsidiary
that engages in distribution,
export, and import of goods
under the Domestos Nomos
trademark. They also sold their
product through a network of
about 500 independent
distributors covering hundreds
of thousands of outlets
throughout Indonesia. Products
are distributed through its own
central distribution centers,
satellite warehouses, depots

INTENSIVE STRATEGIES
1. Market Penetration. To improve the market penetration, Dove
have a unique strategy. Dove send its representative to different
market segments and give them a task to identify the needs and
wants of the different market segments. The most famous
technique used for this is sampling.
2. Market Development. Unilever is extending the practicality of its
market development strategy by stimulating the product
innovation and research and development sector for the new
product development. As the market development for any
company becomes more integrated with the company’s
expansion, acquisitions and partnerships, therefore Unilever is
also focusing on all these respects.
3. Product Development. The best example of the improvements in
the process was the development of a new laundry detergent
formula that allowed for more concentration and less packaging
fitting the needs of today’s eco-friendly and mobile customers

DIVERSIFICATION
Unilever exhibits a related linked corporate diversification
strategy, which means that related linked diversification exists
when “the different businesses that a single firm pursues are
linked on only a couple dimensions, or if different sets of
businesses are linked along very different dimensions.” For
example, it may follow that Unilever’s:
•Home and personal care businesses share similar production
technology and customers
•Food and refreshments businesses share similar suppliers
•Home care and food businesses have no common attributes
Unilever’s successful implementation of this strategy helps it to
sustain its market leadership.

DEFENSIVE
Retrenchment. The crisis forced some companies to stop
production and laying off employees. However, what is done by PT
Unilever Indonesia is the opposite. In a crisis situation, they instead
do business expansion by building a new plant which can absorb
approximately 1,000 workers which is located in Cikarang,
Indonesia.
Source: http://www.kemenperin.go.id/artikel/1858/Unilever-
Bangun-Pabrik-Rp-500-M
Divestiture. Unilever successfully divested its frozen food
businesses in the past few years. As a part of a five-year program,
the company targeted to reduce its number of the brands from
1,600 to only 400. Unilever has been divesting its business to
focus its resources on the core food portfolio
Liquidation. Unilever did liquidation for personal care product
manufacturing facility in 2012. Not only personal care product
facility, Unilever Tea Facility liquidated in 2014

COST LEADERSHIP - PORTER'S 5
FORCES MODEL
For cost leader businesses like Unilever a cost leadership strategy may
help to remain profitable even with:
•Rivalry. Unilever competes on the basis of its prices since the low cost
products of Unilever and its broad range of products allow it to enjoy a
big family of customers. It is because of its diversified product line
that allows it to enjoy above average profit and allow it to maintain low
cost advantage over its competitors in the market.
•Customers. As it’s a part of Unilever’s competitive advantage that it
offer low prices that help it to retain its customers and to earn profit.
•Suppliers. Unilever as a Cost leader is able to absorb greater price
increases before it must raise price to customers.
•Entrants. Unilever creates barriers to market entry through its
continuous focus on efficiency and reducing costs and because of its
economies of scale.
•Substitutes. As there are many substitutes available in the market to
Unilever’s products so for Unilever its more likely to lower costs to
attract customers to stay with their product, invest to develop
substitutes, purchase patents and invest in R&D.

DIFFERENTIATION - PORTER'S
5 FORCES MODEL
Effective differentiators can remain profitable even when the five
forces appear unattractive. Analysis of Unilever’s differentiation
strategy porter’s five forces is as follows:
•Rivalry. Brand loyalty is the strongest point for Unilever to have its
competitive advantage. It means that customers will be less
sensitive to price increases, as long as the firm can satisfy the
needs of its customers. As Unilever always strive to satisfy the
needs of its customers so intense rivalry for Unilever is not a
threat
•Suppliers. Because differentiators charge a premium price they can
more afford to absorb higher costs and customers are willing to
pay extra too so bargaining power of suppliers is low here that
give a competitive edge to Unilever.
•Entrants. Brand Loyalty provides a difficult barrier to overcome

FOCUS
Unilever focus more on the demographic features of population, it
targets all age groups and offer a wide variety of products to the
people of all ages. It also focus on the emerging markets like a
few years ago it started to focus more on India because its an
emerging market. Apart from that its wide variety of products
more and its attention to its value chain make it capture a big
market share. It focuses on customer needs and customer
satisfaction. It focuses on innovation, quality and R&D. It also
focus on its low cost and has a wide base of customers so all
these factors together give it a competitive advantage over others
in the same industry.

SWOT MATRIXPT. UNILEVER INDONESIA, TBK.

SO Strategy
Strength : Contribution of home and personal care to net sales is
72.9%
Opportunity : Unilever Indonesia goes into 2014 on the back of
market share gains and robust growth in almost all categories
Strategy : Develop more distribution channels
WO Strategy
Weakness : No direct connecting with customer
Opportunity : Unilever Indonesia goes into 2014 on the back of
market share gains and robust growth in almost all categories
Strategy :
1. Increase the marketing to get close with the customer in
introducing the products
2. Improve the customer care service to know customers’ needs and
wants

ST Strategy
Strength : Contribution of home and personal care to net
sales is 72.9%
Threat : Substitute products in the market
Strategy : Improve R & D to take competitive advantage
according to product diversification
WT Strategy
Weakness : Sales growth for the year was 12.7%, lower
than previous year growth of 16.3%
Threat : The company sells its products through a network
of about 370 independent distributors covering outlets
throughout Indonesia
Strategy : Pursue vertical integration by owning subsidiary
that engage in distribution, export, and import.

SPACE MATRIX PT. UNILEVER
INDONESIA, Tbk.

FINANCIAL STRENGTH RATING AVERAGE
Net profit (net income) increased by 12.7% to
30,757,435 million dollars
5
Net cash flow from operating activities in 2013 was
Rp6,241,679million, up from Rp5,191,646 million
years ago.
4
Working Capital which began to decline from year to
year
2
EPS increased from 546 to 634 at December 31, 2013 5
TOTAL 16 4

INDUSTRY POSITION RATING AVERAGE
Community needs and high dependence on consumer
goods
4
Increased sales of consumer goods in Indonesia is
rated third, after China and India
4
Market growth products daily necessities pretty good 4
Household goods industry and consumer goods is one
industry will still prevail in times of crisis
5
17 4,25

STABILITY POSITION RATING AVERAGE
Macroeconomic stability was maintained as indicated
by the decline in interest rates and inflation (although
there will be a bit of turmoil)
-2
The issue of the use of formaldehyde in several
industries including consumer goods in industry
-4
The decline in average income community (the
possibility of a global crisis)
-3
-9 -3

COMPETITIVE POSITION RATING AVERAGE
Funds huge ad campaign -1
Awards for the products of Unilever and ICA
(Indonesian CSR Award) which indicates consumer
satisfaction
-2
Strong Distribution Network -2
Branding -2
TOTAL -7 -1,75

CONCLUSION
FP Average is 4,00
IP Average is 4,25
SP Average is -3,00
CP Average is -1,75
Directional Vector Coordinates:
x-axis (CP + IP) : -1,75 + (+4,25) = +2,50
y-axis (SP + FP) : -3,00 + (+4,00) = +1,00
Koordinat xy
{(2,50 ),( 1,00)}

MATRI
X
1
1 2
2
CONSERVATIVE AGGRESIVE
COMPETITIVEDEFENSIVE
CP
FP
IP
SP

Based on the Strategic Position and Action
Evaluation (SPACE) Matrix it can be concluded that PT.
Unilever Indonesia, Tbk. located in Aggressive directional
vector of Profiles.
Strategies that can be taken :
* Integration Strategies (forward, backward, and
horizontal integration)
* Intensive Strategies (market penetration, market
development, and product development)
* Diversification strategy or combination

BCG MATRIX
PT. UNILEVER INDONESIA, TBK.

PT. UNILEVER INDONESIA, Tbk. Has 2 division, which is
home & personal care and food & ice cream.
Home & personal care has the biggest contribution up to
78% of the total revenue and 22% of growth rate.
Food & ice cream contibution to 22% of total revenue and
19% of growth rate.

FOOD
&
ICE CREAM
MARKET SHAREMARKETGROWTH

IE MATRIX PT. UNILEVER
INDONESIA, Tbk.

I II III
IV V VI
VII VIII IX
THE IFE TOTAL WEIGHTED SCORES
Strong
3.0 to 4.0
Average
2.0 to 2.99
Weak
1.00 to 1.994.0 3.0 2.
0
1.0
THE EFE
TOTAL
WEIGHTED
SCORES
High
3.0 to
4.0
Medium
2.0 to
2.99
Low
1.00 to
1.99
3.
0
2.
0
1.
0

EXPLANATION
The IFE total weighted score for Unilever is 3.31
and the EFE total weighted score is 3.34.
Therefore, our IE matrix falls more around ‘I’ cell.
The company should adopt Grow and Build
Strategies. We recommend Market Development
and Product Development for UNILEVER.
UNILEVER can introduce existing products to new
geographical area that are rural markets and
markets of developing nations. On the other
hand UNILEVER can also modifying its existing
products and introduce variants in order raise its
market share

GRAND STRATEGY
MATRIX
PT. UNILEVER
INDONESIA, Tbk.

The grand matrix helps us to determine the strategy that
firm must pursue, based on its competitive position and
market growth. UNILEVER lies in Q1 which represents
excellent strategic position
of company. For these firms, continued concentration of
current market
and products is an appropriate strategy. UNILEVER has
abundant resources so backward, forward and horizontal
integration may also prove effective.

QSPM PT. UNILEVER
INDONESIA, Tbk.

EXTERNAL FACTOR EVALUATION FOR
UNILEVER
Opportunities Weight Ratin
g
Wt.Scor
e
1. The diversity of Unilever’s competitor
is low
0.06 2 0.12
2. Unilever Indonesia goes into 2014 on
the back of market share gains and
robust growth in almost all
categories
0.10 3 0.30
3. Keeping with product innovation
based on consumer expectation
0.08 3 0.24
4. The high customer satisfaction can
be seen from the title of prime index
of consumer satisfaction
0.13 4 0.52
5. Since 1982, PT. Unilever Indonesia,
Tbk has been listed on the Indonesia
Stock Exchange
0.12 4 0.48

COMPETITIVE ADVANTAGE
EXTERNAL AND INTERNAL
ANALYSIS

INTERNAL
Intimate relationship with suppliers and distributors.
Unilever treat its supplier’s fairly in purpose to create
loyalty among them like customers
Unilever has extensive distribution channel, spread
across the country. Therefore for rural area in Indonesia,
Unilever could deliver its products.
Unilever divide their customers based on their product
division such as Personal Care, Foods, Refreshment and
Home Care. Most of their customers can be from any
ages and different demographic because they provide
many range of product to all ages.

EXTERNAL
Market potential is quite large; approximately 250
million people live in Indonesia. These people are
attractive target market for consumer goods product
High satisfaction of consumers, proved by Indonesia
Customer Satisfaction Award (ICSA) 2010 and Indonesia
Most Trusted Company Award 2010, both from SWA
Sembada Magazine.
High dependance of consumer on some consumer goods
brands. This is reflected on consumer loyalty on some
brands consumer goods products such as Pepsodent and
Sariwangi.

GENERIC STRATEGY
STRUCTURE
PRODUCT
DIFFERENTIATION
PRODUCT
INNOVATION
PRODUCT DESIGN
HIGHER PRODUCT
QUALITY
UNIQUE PRODUCT
COMPETITIVE
ADVANTAGE
SALES GROWTH /
HIGHER MARKET

EXPLANATION
The generic strategies as developed by Porte (1980;
1985) for achieving a competitive advantage position by
an organization are: product differentiation and cost
leadership. Product differentiation being the most
commonly used one of these two strategic typologies.
A differentiation strategy involves the firm creating a
product/service, which is considered unique in some
aspect that the customer values because the customer’s
needs are satisfied. On the other hand, cost leadership
strategy emphasizes low cost relative to that of the
competitors.

UNILEVER GENERIC
STRATEGY
We can conclude from our research study, it can be
established that that manufacturing organizations/
Unilever Company must pay greater attention to the
products the manufacture in terms of quality design,
innovations and unique features. It is safe to suggest that
executive management needs to make sure that they
provide adequate satisfaction to their customers. Which
means that management should put additional emphasis
and pay more attention to product differentiation as it is
an important instrument for achieving competitive
advantage which leads to greater organizational
performance which translates to higher profits.

STRATEGY REVIEW,
EVALUATION, AND
CONTROL
PT. UNILEVER INDONESIA

REVISED EFE MATRIX
Opportunities Weight Rating Wt.Score
1. The diversity of Unilever’s
competitor is low
0.06 2 0.12
2. Unilever Indonesia goes into 2016
on the back of market share gains
and robust growth in almost all
categories
0.10 3 0.30
3. Keeping with product innovation
based on consumer expectation
0.08 3 0.24
4. The high customer satisfaction can
be seen from the title of prime
index of consumer satisfaction
0.13 4 0.52
5. They innovate eco-friendly products 0.12 4 0.48

THREATS WEIGHT RATING WT.SCO
RE
6. Substitute products in the market 0.15 4 0.60
7. According to the inflation in recent year, it
threats Unilever to change their pricing
strategy
0.06 3 0.18
8. In the second half of the year, the
Indonesian macro economy experienced
another test with high inflation (post fuel
subsidy cut), increased interest rate and
weakening of the Rupiah
0.10 3 0.30
9. Government laws and regulation quite
challenging
0.12 3 0.36
10. Many smuggling of product from Cina 0.08 3 0.24
Total 1.00 3.34

REVISED IFE MATRIX
Strengths
Weigh
t
Ratin
g
Weighted
Score
1.
Contribution of home and personal care
to net sales is 72.9%
0.12 4 0.48
2.
Marketing and selling expenses
increased by 12.5% to Rp6.6 trillion
0.08 2 0.16
3.
Strong portfolio of brands and
diversified product range
0.09 3 0.27
4.
Contribution to Total Turnover is 27% in
2013 0.08 3 0.24
5.
Holding 15% shares of total in
Indonesian Stock Exchange
0.11 4 0.44
6. Cash position in 2016 increased 0.09 4 0.36

SOURCE : HTTP://WWW.4-TRADERS.COM/UNILEVER-
6290/FINANCIALS/
Weaknesses Weight Rating
Weighted
Score
1.
Finance income decreased by 61.5% to
Rp14.5 billion
0.11 4 0.44
2. Sales growth predicted is only 4.4% 0.05 2 0.10
3.
The Company’s collection period
weakened from 30 days in 2012 to 33
days in 2013
0.06 3 0.18
4. No direct connecting with customer 0.08 4 0.32
5. Excellent in R&D lead to high in price 0.06 3 0.18
6. Number of employee increased in 2016 0.07 2 0.14
Total 1.00 3.31

STRATEGY EVALUATION ASSESSMENT
MATRIX
Have Major
Changes
Occurred in the
Firm
Internal Strategic
Position?
Have Major
Changes
Occurred in the
Firm
External Strategic
Position?
Has the Firm
Progressed
Satisfactorily
Toward
Achieving Its Stated
Objectives?
Result
Yes Yes Yes Take corrective
actions

REVISED STRATEGY
Based on the changes in internal and external
environment, Unilever can take corrective actions such as
raise capital with stock or debt and allocate resources
differently, because there is a change in EFE that Unilever
innovate eco-friendly products, which means Unilever
need a new resource and enhance their technology to
produce that products.

MARKETING PT. UNILEVER
INDONESIA Tbk

SUNLIGHT
HIGH PRICELOW PRICE
HIGH QUALITY
LOW QUALITY
MAMA LIME
SUNLIGHT
SABUN COLEK SLEEK

POND’S
HIGH PRICELOW PRICE
HIGH QUALITY
LOW QUALITY
KIEHL’S
MAYBELLINE
CITRA
THE BODY SHOP
THE FACE SHOP
REVLON
POND’S
GARNIER
NIVEA
ACNES
THE FUK

WALL’S
HIGH PRICELOW PRICE
GOOD TASTE
BAD TASTE
HAAGEN DASCH
ES LILIN
BASKIN ROBBINS
DAIRY QUEENWALLS
CAMPINA
DIAMOND
ES KADO
ES DUNG2

CAPITAL
Net Working Capital
-3000
-2500
-2000
-1500
-1000
-500
0
500
2009 2010 2011 2012 2013
Series 1 Column1 Column2

 Net working capital is used in various other financial
formulas that deal with cash flows
 An increase in net working capital is considered a
negative cash flow and not available for equity
NET WORKING CAPITAL = CURRENT ASSETS – CURRENT
LIABILITIES

ASSETS
0
5000
10000
15000
2009 2010 2011 2012 2013
Total Assets
Series 1 Column1 Column2

FINANCIAL OBJECTIVES
All our activity combines to deliver the single goal of
creating shareholder value

R & D
Objectives:
a. Perfecting a formulation so that it is
aesthetically pleasing and stable when stored;
b. developing packaging that suits the product
format,
c. delights the consumer and minimizes
environmental impact; and
d. ensuring the product is ready for large scale
factory production

R & D
The company operates in more than 100 countries,
has a R&D budget (€928 million — currently about
$1.3 billion -- worldwide in 2010) and boasts a
dozen brands that each ring up sales of about €1
billion ($1.4 billion) annually

MANAGEMENT
INFORMATION SYSTEM
IN UNILEVER

MIS TECHNOLOGY USED BY
UNILEVER
GDSN (Global Data Synchronization Network)
RFID (Radio Frequency Identification Device)
Ariba
Unilever Private Exchange
ISIS

IMPLEMENTATION OF MIS IN
UNILEVER
Kalido's Master Data Management and
Dynamic Information Warehouse to create
reference data and analyse transaction data
The information is translated into relevant,
actionable data by the new software, so that
executives can take decisions to improve
supply chain efficiency and ensure shops do
not have a shortage of Unilever products

UNILEVER
Unilever also extensively uses SAP's supply chain
management and enterprise resource planning software

UNILEVER
Collect customer information such as name, address,
screed name, profile picture, email address and
telephone number, shopping habits, preferences.

HOW?
Getting personal information when customers registers
for prize draws, sign up to receive information, or fill out
survey
Using cookies or other tools (such as web analytics tools)
to automatically collect information about when you use
Unilever sites

MARKETING FRAUD
Different and contradicting marketing strategies and
messages.
With Dove brand, they use “The Dove Campaign For
Real Beauty” in their advertisement, but with AXE
brand, they send the message that “if you use Axe,
more women will become attracted to you”.
The strategies actually contradict each other in the
message they send and Unilever owns both of these
companies.
They said Unilever is hypocrite because with the
omission lying. They have affect awareness, behavior
and intentions of its customers. They also dishonest
with their customers. It is unethical.

EMPLOYEES EXPLOITATION
Unilever Pakistan has three types of workers;
permanent workers, contract workers and day
laborers.
Their contract workers earned less than minimum
wage. The minimum wage in 2007: 4600 rupees per
month but the workers actually earned: 4000 rupees
per month. And also they get no job protection/
welfare benefits.
Different with the contract workers, their day laborers
get daily wage in 2007: 80 rupees ($1.33). They also
retained employees through third party service
providers. The reason they employed new employees
to work on contract or daily basis because they want
to reduce the number of permanent workers and
reduce associated welfare benefits provided.

PRICE FIXING
On 13 April 2011, Unilever was fined €104 million
by European Commission when it was found guilty
of fixing prices of detergents along with its
competitors (P&G and Henkel) in 8 European
countries
The Scandal:
1. Policy to improve environmental performance
of detergent
2. Shrunk the quantity in each unit and sold at at
same prices
3.Collective increase of prices by them and
competitors later

LOBBYING
Former CEO Niall FitzGerald admitted that
management at regional units in some 90
countries accepted and gave “sweeteners” or
“Facilitation payments” to conclude business
dealings.

RESPONSE ON PRICE FIXING
Unilever's Reaction
Co-operated in investigations with EC and received 25%
rebate on fines
Training managers for better understanding of laws
Improving internal procedures
Aim to improve global compliance program

UNILEVER RESPONSE ON
ANY ETHICAL ISSUES
New CEO (2009) - Paul Polman wants company to be
loved and cleaning unethical acts.
"bad guys" --> "good guys saving the world"
2010 - Unilever's Sustainable Living Plan
By 2020 - double turnover by behaving ethically

SOURCES
https://bizgovsocfive.wordpress.com/2012/11/23/unile
ver-an-ethical-company/
https://prezi.com/hzdc3acupxr0/unilever-ethical-
issues/
Unilever - Overview of controversial business practices in
2007

OUR CSR PROGRAM IS
ALIGNED WITH THE THREE
PILLARS OF THE USLP:
1. Improving Health and Wellbeing in the Community
2. Reducing our Environmental Impact on the Community
3. Enhancing Livelihoods

IMPROVING HEALTH AND
WELLBEING IN THE
COMMUNITYvarious community-led
programmes and
interventions in schools
and communities
The Youth Health
Programme made to get its
messages on reproductive
health, HIV/ AIDS prevention
and personal hygiene out to
more students. The
programme, implemented
by the Unilever Indonesia
Foundation and its partners,
Unilever Indonesia is also
actively involved in building
HIV and AIDS awareness in
the work place in
collaboration with the IBCA
(Indonesia Business
Coalition on AIDS).
focusing on sanitation
and personal hygiene
The School Health
Programme focuses on
embedding good health
and hygiene habits among
primary school children,
such as hand washing with
soap at 5 critical times.
These messages are
reinforced by empowered
students who work with
their peers as ‘little
doctors’. In 2013, the
programme reached 3.5
million children, supported
by 100,000 Little Doctors.

IMPROVING HEALTH AND
WELLBEING IN THE
COMMUNITY
reproductive health and
nutrition.
The Kids’ Program is implemented through trained cadres
who work with mothers and caregivers through Posyandu and
early years education programs to help them and their pre-
school children adopt healthy nutrition and hygiene habits
during the crucial ‘golden age’. The program benefited
208,632 under-fives in 2013, facilitated by 4,510 cadres

REDUCING OUR
ENVIRONMENTAL IMPACT ON
THE COMMUNITY
This is related to the environmental sustainability issues in
the next chapter.

ENHANCING LIVELIHOODS
 One of the USLP goals is to source 100% of our
agricultural raw materials from sustainable sources by
2020. The inputs we are investing behind this goal through
our farmer and community development programs are
already yielding multiple benefits for small-scale farmers
and contributing to the long-term security of our supply
chain.
 This program focuses on three of our key commodities:
black soybean, coconut sugar and tea.

ENHANCING LIVELIHOODS
black soybean
Unilever collaborated with
the Ministry of Agriculture to
initiate the trial of a black
soybean farmers
development program in
Ngawi, East Java. This
involved training the
farmers’ association
(gapoktan) and farmers’
groups to observe and
record how they cultivate
their crops.
coconut
In December 2013, Unilever
Indonesia Foundation held a
Coconut Sapper’s Day at
which the sappers presented
their aspirations and
learnings from the Farmers
Field School. In addition,
through a collaboration with
the Energy Research Centre
of Gadjah Mada University
Unilever are conducting
research to help farmers
reduce energy usage and
costs during the processing
of the coconut sugar by
modifying the stoves that
farmers use at present.

http://www.unilever.com/images/slp_Unilever-Sustainable-Living-Plan-2013_tcm13-
388693.pdf

Unilever is committed to making continuous
improvements in the management of their environmental
impact and to the longer-term goal of developing a
sustainable business. Unilever will work in partnership
with others to promote environmental care, increase
understanding of environmental issues and disseminate
good practice.
Source : Unilever Annual Report 2013

ACTIVITIES
Smarter Greener Living (SGL)
Launched in 2013, it is program to step up the active
participation of all ULI employees in the Unilever
Sustainable Living Plan (USLP), particularly the Reducing
Environmental Impact pillar of the Plan.
 The Green and Clean program
This is a program which concern to the proliferation
of waste. It is a serious challenge to the environment in
urban areas across Indonesia, contributing to health
problems, pollution and even major flooding in large
cities like Jakarta.

GREENHOUSE GAS
FOOTPRINT
Unilever greenhouse
gas impact per
consumer use has
increased by around 5%
since 2010*

ENVIRONMENTAL ISSUES
The impact on the environment from the use of its
products, in terms of water, waste and emissions of
greenhouse gases. It already had all the data relating to
the manufacture, processing and transport of its
products, and has been making good progress in
reducing all those direct impacts over the last 10 years or
more. But those direct impacts turned out to be relatively
insignificant when compared with what happens when
customers actually use these products.http://www.theguardian.com/sustainable-business/blog/unilever-
sustainable-agriculture-plan

(CONT’D)
India Mercury Scandal
Unilever’s Subsidiary Hindustan Lever had a mercury
thermometer production plant in Kodiakanal.
Mercury not properly disposed and exposed to local
nature sanctuary. There was no safety precautions for
workers as a result many were ill and some even died.
When mercury gets into contact with water it becomes
poisonous and kills wildlife.
Soil contamination levels were between 600 – 800
times the legal level

(CONT’D)
Borneo Palm Oil Suppliers
RPSO is a non for profit organization that works with
palm oil suppliers and stakeholders to develop and
implement global standards for sustainable palm oil.
Before 2008 most of Unilever’s suppliers were not
RPSO certified and untraceable. As a result
deforestation has increased in Borneo as uncertified
suppliers expand into the peat lands and rainforest.
Greenhouse gases are the highest globally in Indonesia
from deforestation. Natural habitat of orangutans
getting destroyed as a result the Borneo orangutans
are now endangered.

TARGET FOR REDUCING THE
IMPACTS
For reducing those impacts unleashing an unprecedented
search for innovative solutions across the entire
company. Some of those innovations will require
reformulating the product itself, or completely
redesigning the packaging. Some will require a very
different engagement with the customer, with a view to
'co-creating' the environmental benefit by using the
product in a different way.
http://www.theguardian.com/sustainable-business/blog/unilever-
sustainable-agriculture-plan

RESPONSE ON
India Mercury Scandal
 Unilever's Reaction
Unilever didn’t accept the claims about the mercury
scandal that it affected the environment and
workers health greatly
 Unilever said how the working conditions were
safe when they were clearly not as many were ill
 Only cleaned up its operation two years after the
scandal which shows their lack of social
responsibility for the area

RESPONSE ON
Unilever's Reaction
Pressure from groups like Greenpeace
In 2008 Unilever committed to a sustainable palm oil
plan
By 2015 buy all palm oil from certified sustainable
sources
By 2020 buy all palm oil from traceable certified
sustainable sources
The sustainable palm oil plan is also committed to the
RPSO, working with suppliers to stop deforestation
and to stop illegal plantations on peat lands
Finally becoming more responsible for the
environment more ethical

INTERNATIONAL
BUSINESS STRATEGY

EXPALANATION
Regarding to the data that we found, Unilever has already
expanded in 18 countries around asia pacific include developed
and developing countries.
We think that Unilever no need to expand their product in Asia
Pacific area because they already expand their product to the
profitable market around asia pacific area.
The strategy that Unilever use is Global Strategy. A global
strategy used by the Unilever is preferable to localized
strategies because Unilever can more unify its operation and
focus on establishing a brand image and reputation that is
uniform from country to country. It strategy implies to the
Unilever success in building strong character brand such as
Dove, Sunsilk, Rexona and Lux. Moreover, with global strategy
Unilever should coordinated its marketing, operational, and
distribution worldwide.

STEP 1: MARKET
ATTRACTIVENESS
ASSESSMENT
GDP Growth of Singapore

STEP 2: RISK OF
POLITIC/SECURITY
Political Risk in Singapore is relatively low. In fact
according to the Political and Economic Risk
Consultancy, PERC, Singapore enjoys the lowest
political risk in Asia. Singapore being a democratic
country has elected representatives to rule the
nation. It has since Independence, enjoyed relative
political stability, which has transformed into
better business opportunities for the nation.

Security
The Singapore Government has put in place extensive
measures to combat terrorism and has arrested a
number of terrorist suspects. These measures are on
several levels including military, internal security,
border, infrastructure security and civil defense. To
bolster its preparedness, Singapore participates actively
in international counterterrorism efforts.
Beside that violent crime is rare in Singapore.

STEP 3: BUSINESS INITIATION
EASINESS ASSESSMENT

EASINESS INVESTMENT
PROCEDURE IN SINGAPORE
Singapore is a top transportation hub for sea and air cargo with its busy
container ports hosting 200 shipping lines with links to 600 ports in over
120 countries. Changi International Airport offers over 4,000 weekly flights
into 57 countries.
One Door Integrated services ( one- stop service ) is one of One Form of
Innovation in the Framework Significantly increase the Public Service in the
administration of the Investment Process.
Singapore wear Bizfile ( register their businesses by using the online system
) so as to make the licensing business in Singapore only takes one day , if
all the fittings already meet existing requirements and affordability.
Provisions for recruiting local human resources is not difficult because
Singapura is Asia’s most “network ready” country and is rated to have Asia’s
best business environment. The workforce is the best skilled in Asia Pacific
and the most motivated in the region while labour regulations are the most
business conducive in Asia.
Foreign talent is very welcome and immigration laws are the least restrictive
in the world.

GOVERNMENT SUPPORT
The Government is well known for its pro-business policy
regardless of world economic situations and crisis, while
promoting assets such as integrity, quality, reliability,
productivity, rule of law and enforcement of intellectual
property rights.
Banking services in Singapore prioritizes customer
satisfaction , including interest and taxes are much
cheaper
Who ever wants to borrowed money fast and
straightforward process

CREATIVE ECONOMIC
DEVELOPMENT SINGAPURA
Creative economic development policies in Singapore rests on two sources
, namely the study of the Advisory Council on Culture and the Arts ( ACCA
, 1989) and Renaissance City Plans ( RCP , 2000)
Since it was first launched in 2000 , RCP implementation of the third stage
started in 2008 and is supported by an investment of USD 23:25 million
Currently the arts and cultural sector in Singapore has been growing
rapidly , with an average of 80 events per day . Singapore society is slowly
starting to see arts and cultural activities as a vital part of their lives.
Singapore government seems very serious to develop creative industries ,
starting from forming Ministry of Information and the Arts ( MITA ), which
later became the Ministry of Information and Communication Art ( MICA )
Since this policy was developed , value-added ( VA ) in Singapore's media
industry is growing at a value of approximately S $ 5.5 billion and bring in
revenues of up to approximately S $ 22.4 billion.

CONT….
Financing models for creative industries in Singapore
are as follows :
 Government finance actors who develop creative industries in line
with the vision of Singapore . They financed between 30 % -70 % of
the proposals submitted.
 The funds in the form of grants or loans (banking / venture capital)
 Government makes venture capital or provide facilities to establish
a private venture capital
 Cooperation with venture capital principals at least 2 years of a
maximum of 5 years . This cooperation depends on the type of
business . If the use of high technology , cooperation can be
developed over five years
 Profit sharing divided proportionally according to the value of its
investment.
 If the form of loans , the interest that is applied ranges from 4 % -
5 % a year.
 Granted tax relief to not have to pay corporate taxes for new
companies for 2 years .

STEP 4 : INDUSTRY
ATTRACTIVENESS

COMPETITION
There is no doubt that the manufacturing sector has
been pivotal in contributing to Singapore’s economic
success, and continues to drive the nation’s economic
growth. In the 2nd quarter of 2006, the sector registered
a quarter-on-quarter Gross Domestic Product (GDP)
growth of 10.5%, following a strong year-on-year GDP
growth of 9.0% posted in 2005.
According to the 2005 Economic Survey of Singapore
released by the Ministry of Trade and Industry (MTI), the
manufacturing sector attracted $8.5 billion of fixed
assets investment commitments in 2005, surpassing the
$8.3 billion in 2004. This demonstrates Singapore’s
attractiveness and competitiveness as a hub for the full
chain of manufacturing activities.

ACCESS TO END-USERS
Unilever is one of the world’s leading suppliers of fast
moving consumer goods (FMCG) with a presence in more
than 100 countries. With a portfolio that includes some of
the world’s best-known and most loved brands, such as
Lipton, Wall’s, and Dove, Unilever meets the everyday
needs of their customers for nutrition, hygiene and
personal care.
Global functions undertaken by Unilever in Singapore
include: brand development, supply chain management,
customer development, procurement, engineering, HR, IT
and finance. Unilever also manages some of its top global
brands from Singapore.

STEP 5: COUNTRY RANK &
IDENTIFICATION OF KSF
For Singapore, the top five factors in order of
importance are
1. A good customer relationship,
2. Ability to identify and focus on a market niche,
3. A good service and delivery system,
4. Availability of financial resources,
5. A good and responsive management system

STEP VI : SPECIFIC INTERNAL
COMPETITIVENESS
ASSESSMENT

MANAGEMENT CONTROLLING
SYSTEM
Control is defined as the relationship between the procedures
and systems relating to achieve objectives of the company.
The concept of management control provides information on the
performance of managers and business unit or division and
control strategic produce information relating to the financial
performance and the level of competition the company long-
term

ENVIRONMENTAL
MANAGEMENT IN SINGAPORE
For Unilever, if they want to add another factory or
manufacturing unit in Singapore, they should follow the
Environmental Controlling Management. This are a few of
examples that Singapore provide that related to environment.
Singapore faces the following constraints:
Small land area
Densely-populated
No natural resources
No energy sources
Little water resources

EXAMPLE OF CONTROL
ENVIRONMENT
Preventive Controls
1. Judicious siting of industries
2. Development and building plan control
3. Inspection of completed premises

CONT…..
Building Plan Controls:
1. Check building plans of new developments
2. Check pollution control facilities of industrial developments
3. Check completed developments for compliance with pollution control
requirements before occupation and use of developments
Water Quality Monitoring
1. Water in reservoirs remains suitable for treatment for potable use
2. Inland water supports aquatic life
3. Coastal waters remain suitable for recreational use

Management controlling system is not only about control
environment, but also information and communication system,
control activities and monitoring.
Because Singapore has constraints about their land, we think it’s
important to Unilever to think about Singapore constraints if
they want to develop Unilever in Singapore. And beside that,
Singapore has strong policies in controlling and monitoring their
environment.

DEPARTMENT FOR CAREER
OPPORTUNITY
Brands and Development
Supply Chain
Human Resource
Finance
Information Technology
Customer Development

UNILEVER CORE MISSION
“the right people, in the right place at
the right time”

UNILEVER DEVELOPS
CAREERS ACROSS TWO MAIN
PATH :
 As HR Business Partners supporting a local business
unit or group in core areas of talent management,
leadership development, organizational design and
change management
 As Managers within the HR Expertise teams (talent,
learning and reward) defining global HR policies and
processess

RECRUITMENT CHANNEL
 External Recruitment Channel :
1. Walks-in and write-ins
2. Employee referrals
3. Advertising
4. Private placement agencies and Professional search
firms

 Internal Recruitment Channel
Internal organizational policies, such as “Promote from
within wherever possible”, will give priority to individuals
inside the organization. Such a policy will ensure that all
positions except entry level positions will be filled from
within the ranks. Although this is promising once one is
hired, it may reduce the number of applicants.
Current employees are a major source of recruits for all.
In fact for Unilever this short of recruitment is occurred
only with special purpose experienced employee
recruitment.

CORPORATE APPRAISAL
SYSTEM
Condition and productivity of companies affected by the
productivity of each worker . When the productivity of
each worker as a whole increases, the productivity of the
company will increase as well . If the productivity of the
company increased , then the company should increase
wages .
Wage system based on productivity began to be
implemented in Singapore when the country experienced
a recession in 1985-1986 . At that time, employers and
workers faced with two difficult choice , namely dismissal
or cutbacks (PHK ) some workers or a decrease in wages .
To maintain the same wages , business estimates need
to lay off about 10 % of workers . Conversely if the need
to retain all the workers to keep working ( without layoffs
) , wages need to be reduced by about 15% . Finally
workers and employers agreed to choose the second
alternative , namely the 15 % reduction in prorated salary

Flexible Wage System was then developed in SINGAPORE and
is associated with productivity and Based Wage System
Productivity (Productivity - Linked Wage System) . Wage
system based on productivity consists of two groups of
components , namely wages fixed salary component and a
variable wage component . Fixed wage component is always
accepted regardless of the condition of the company .
Granted only if the variable wage worker productivity
increased and the good condition of the company . The
amount of wages variable depending on the condition of the
company and the productivity of each worker .

STEP VII : BUSINESS
STRATEGY FORMULATION

PRELIMINARY INVESTMENT
Unilever invested about $32 million to establish its new
global leadership development centre
Mostly Unilever invested in R&D, it relates to the
Unilever Food Center in Singapore
Unilever Food Center has an eco-friendly environment,
they also invested in current assets, such as building and
infrastructure to support the activities

DEVELOPING VALUE
STRATEGY
Through a mass-market positioning, much of the
company’s growth strategy is to leverage the value of
key brands by cross-sectoral brand extensions, thus
taking advantage of customer brand recognition and
loyalty, and creating marketing efficiencies.

STRATEGY ESTABLISHMENT
 Investment for growth and balancing short term and
long term interests
 Unilever reframed spending by putting in place
mandates according to country and shifting money
toward creating digital assets.
 Unilever enhanced its global planning services and
reframed its use of technology to ensure all of its brands
were operating on the same platforms.

Unilever Strategic Management Assignment

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