HISTORY OF THE BUSINESS

In the 1890s, William Hesketh Lever, founder of Lever Brothers, wrote down his
ideas for Sunlight Soap – his revolutionary new product that helped popularize cleanliness
and hygiene in Victorian England. It was “to make cleanliness commonplace; to lessen
work for women; to foster health and contribute to personal attractiveness, that life may
be more enjoyable and rewarding for the people who use our products”. That sense of
purpose and mission has always been part of Unilever’s culture. In the 21st century, we’re
still helping people to look good, feel good and get more out of life – and our purpose as
a business is ‘making sustainable living commonplace’.

Unilever Philippines, Inc. was established in 1927. Known until 1993 as Philippine
Refining Company (PRC), it started as an oil milling business which at its peak produced
nearly 100,000 tons of coconut oil annually. The company has been introducing new
technologies into the country since the early days of its existence - margarine production
in the 1930s, non-soap detergents, shampoos and toothpaste in the 1960s and 1970s
and sulphonation technology and cogeneration power plant in the 1980s. The nineties
has seen the company focusing on several improvements in the Environment front one
of which was the introduction of the first 100% biodegradable detergent bar in the
Philippines.

BUSINESS PRODUCT PORTFOLIO

Unilever makes and sells products under more than 400 brand names worldwide.
Two billion people use them on any given day.
ORGANIZATIONAL STRUCTURE
INDUSTRY ANALYSIS
A. Economic Environment
They deliver consistency in underlying sales growth, core operating margin and
free cash flow by continuously investing in their supply chain, their brands and
marketing, their people and IT.
They seek continuous improvement in their world-class manufacturing to drive
cost savings and higher returns, providing extra fuel for growth as cash is
redeployed in new strategic opportunities.
There's no significant or immediate improvement in the overall health of the world
economy.
Many emerging markets were hit by local currency devaluations, driving up the
cost of consumer goods faster than wage growth. A number of these economies
export commodities and have also been hit by slowing global demand.
In response to devaluations, interest rates in many countries remained relatively
high, further squeezing incomes.

B. Legal/Political Environment
They work with governments, NGOs and other stakeholders to drive change that’s good for society
and good for business, and we work with partners in our supply chain, to create innovations in
products and packaging.

C. Social Environment
Growth that’s responsible involves having a positive social impact and reduced
environmental footprint, which is the essence of the USLP and is essential in
protecting and enhancing our reputation.
Such change mirrors social upheaval with societies becoming more complex,
accommodating rapidly changing ways of living.

D. Technological Environment
By investing in innovation, they can grow their market share while also seeking to
enter new markets and new segments.
They actively manage their brand portfolio to focus it on more attractive segments
where they can apply global scale and local strength.
The impact of digital technology continues and has now become a mainstream
factor determining success in everything from manufacturing to marketing. The
industry is rapidly adjusting to consumers operating in a mobile-connected world-
able it through fragmented media.
They need to improve their innovation cycle times to ensure they roll out
innovations faster and to more markets.

E. Competitive Environment
a. Intensity of Rivalry
 Local competitors remain vibrant presence with innovations and consumer offers to
rival those of global players.
There has also been significant deconstruction and refocusing with competitors selling
brand portfolios to achieve efficiency gains.
b. Entry Barriers
It needs to make its brand name stronger in order to make sure they don't go
unnoticed.
c. Bargaining power of suppliers
Unilever operates in more than 190 countries and is present in 7 out of 10 households
globally.
d. Bargaining power of consumers
Sharpening their execution with improved distribution, customer service levels and
on-shelf availability are urgent priorities.
Consumer demand remained weak with market growth continuing to be subdued in
emerging markets while showing some signs of low level growth.
e. Threat of Substitute Products
Younger generations of millennials have new expectations, from authenticity and
quality of products yo standards of corporate behavior.
Focus should be given to maintain a common standard for all units.

STRENGTHS

They have a €35 billion annual procurement programme including agricultural raw
materials, 60% of which are sustainably sourced.

They work closely with retailers to win in the market place, making sure their brands are
always available and properly displayed, in all channels from supermarkets to e-commerce.

Strong portfolio of brands

Diversified product range

Being a global company, it needs to operate according to local preferences.

WEAKNESSES

Prices of Unilever brands are generally higher than its competitors

Slow sales growth compared with competitors

Low cash flow, high operational cost

OPPORTUNITIES

High market share

Move operations to developing countries

Enhances their presence in the faster growing premium sectors of the market

Focus towards improving margins rather than sales growth

High concentration on emerging markets

Increasing need for healthy products

Opportunities through intensive research and development efforts

Many have identified emerging markets as a majot growth opportunity in the years to come

THREATS

Strong competitors

Company's image has been destroyed

Increasing store fraud.