Executive Summary of Unilever

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Unilever a leading multinational corporation has multifarious brands that inherent consumer products on a large scale and involve in manufacturing gigantic operating in hundred countries all over the world. Unilever’s has been moved by the significant circumstances of the day like economic boom, rapid change in technology, depression, people’s lifestyle, and recession.

Unilever was original established in 1930 by the consolidation of soap maker Lever Brothers and margarine maker. In 1930 the Unilever business propagate and new enterprise were inaugurated in Latin America. They are invariably increasing their products to provide more intense, extraordinary development. Unilever’s have five laboratories all over the world, which scrutinize new techniques to make more improve. Unilever’s purpose is to set the highest standards of organizational behaviour including everyone they work with.

Proposing Change:

The proposed change will be consist of ethical values and develop a new design considering diversity. Unilever should establish open communication with the employees and also take their decisions into consideration. They should come up with a slogan that will not affect ethical value of any employee in an organization but come up with such slogan that will motivate their employees. This will create stability in the environment, and employees will also demonstrate completeness in their work and in organization. The rationale of the decision will be based globally, as Unilever has such a diverse workforce which refers that the members are classify and distinguishable on the basis of religion, gender, age group, and several other barriers in dealing with diversity with respecting the morale of the workforce.

A description of your chosen organization (including its size, structure, market, products, aims and objectives and recent history).

Organization size:

The industry is consisting of consumer goods, and the size of the company is approximately 10,001+ employees. The current status of the Unilever is in operating. The type of Unilever is public company. The ratio of male is 56% and female is 44%. The common job titles are Brand Manager 5%, Manager 4%, and Finance Manager 2%.

Organizational structure:

Unilever is the leading corporation having numerous consumer products manages its divergence in organization having vertical axis which represents the level of global combination, and therefore of central, the horizontal axis which represents the level harmonious combination or function of national difference, and subsequent influence of strategic and operational reconciliation. Unilever represents another approach to improve communication to avail opportunities and benefits from the resources that easily available to them. This type of structure is said to be a Hybrid form that manipulate with three ramification territories, two product divisions, and five operative sections. Unilever bring out the capabilities and implemented this organization structure for its company.

Organization Market:

Unilever is one of the preeminent food companies. They know their consumer and having good understanding of their consumer needs of food product. They always look forward what their consumer love about it and make their brands a most accessible choice in their consumer’s mind. Unilever make sure about the ingredients of the same product in the different regions. Unilever products are daily basis meals, and they also incline local in order to attract their local market by introducing new flavors according to the consumer of the product. They have the culture and knowledge to move consistently within countries and their cuisines. They know how to move globally, and locally. They are commitment to make sure and certain measures to form healthy balanced nourishment. Unilever having kind of food product you can trust, their target is to fulfill whatever consumers love about food product. Unilever disseminate and make their product in such a way which is advantageous for them.

Organization product:

Food brand
Home care brands
Personal care brands
Nutrition
Health, hygiene and beauty
Our advertising
Unilever Food solution

Unilever Aim and Objectives:

Unilever caters approximately 2 billion consumers each day. They have clear and realistic objectives which consist of four pillars.

Unilever emphasize in creating a better future each day by fulfilling the consumer need on the daily basis. They care about their consumers by facilitating them to provide healthy diets so that people will be healthier for the long time.

Unilever’s ultimate vision is to facilitate consumers by make them feel good, look good, and achieve more out of life. They are consistently moving with the lifestyle of the consumers and variability in consumer’s taste which is now-a-days rapidly increasing.

Unilever vision is to galvanize its consumers to take a small part in daily action so that will add a big difference for the world.

They are intensifying new ways to improve their business and having objective to double the size of its organization, and by bringing down the environmental impact.

Unilever believe in the quality of their brand and consistently moving with the diversity and other technological changes in order to improve their business and quality of their product. They know how to face the challenges concerning all the probability with respect to the internal and external changes in the organization. The value what consumers want and keep in mind that they are.

Recent History of Unilever:

The recent history of the Unilever is how they successful leading in recent years until now the committee has provided a proper way to collect the data and how to measure performance, but most of the management left to the country units. Recently they layoff many of their employees in order to cut the cost but this scenario has taken place in some of the countries who are facing recessionary period which greatly affected their product cost, supply cost, and other cost as well. As a result Unilever had faced high competition in the business, and they manage successfully in the difficult time, they didn’t compromise in giving quality product in order to satisfy their consumers, and will be manage successfully in the subsequent years.

Recently new hires take place in Unilever:

Alexander Eboli has promoted as a vice president of logistics in America, he was the vice President of the SC capabilities in America.
Rob Cowan has promoted as a vice president of service development and control, and he was the Global IT service Delivery director.
Fernando llado has promoted as a Planning and information management Chief, and he was the customer development finance channels chief.
Alok Joshi has promoted as a vice president, Engineering services, he was the Category supply chain director, Deodorants.
Kevin McNair has promoted as a Global Vp family goodness, and he was the senior brand development director, dressings North America.

3. The external factors effecting change your chosen organization (Economic and market factors, competition, legislative factors, population factors, organizational factors, environmental factors).

PEST ANALYSIS:

(P)olitical:

As Unilever manipulates in developed and in developing countries extensively where the political circumstances in different countries is sustainable that revitalize more investments. Judiciary of these countries also support free market economy and having little governmental intervention.

(E)conomical:

Most of the economic condition is not sustainable in the recent time because recession is greatly taking its position in many countries. The European market has been shifted to a single market therefore; it is growing rapidly the market for Unilever products. In most of the countries’ inflation and exchanges rates has been immutable hence not even contriving the prices of its products or any subsequent investment.

(S)ociological:

Unilever has good understanding of society and their market globally and locally. They try to cope with the changes occur in the products like many of the people have different product needs such as slimming food, nutritional food, carbohydrate free food, and many other changes which takes place due the rapid change in consumer lifestyle. Unilever take care of its society and also involve in the societal benefits through its different products according to the society need.

(T)echnological:

Unilever is consistently moving with the technology and having uncompromised behaviour in giving quality product. Their objective is not only maximizing the profits but they are greatly anticipating their customers with loyalty, trust, good response, and content changes according to the consumer lifestyle.

They are also focusing on the research and development in order to meet the requirements, the advance technology , and effortlessly introducing modified products so that is how their stakeholders will also satisfied.

A description of your proposed change including a summary of your proposal, a rationale for it, a summary of the economic and organizational benefits of your proposal, the potential costs associated with it, and a completed cost benefits analysis.

The proposed change will be consist of ethical values and develop a new design considering diversity. The rationale of the decision will be based globally, as Unilever has such a diverse workforce which refers that the members are classify and distinguishable on the basis of religion, gender, age group, and several other barriers in dealing with diversity with respecting the morale of the workforce. Most of the economic condition is not sustainable in the recent time because recession is greatly taking its position in many countries. The European market has been shifted to a single market therefore; it is growing rapidly the market for Unilever products. In most of the countries’ inflation and exchanges rates has been immutable hence not even contriving the prices of its products or any subsequent investment.

Unilever should establish open communication with the employees and also take their decisions into consideration. They should come up with a slogan that will not affect ethical value of any employee in an organization but come up with such slogan that will motivate their employees. This will create stability in the environment, and employees will also demonstrate completeness in their work and in organization.

(S)trengths:

As Unilever perceived good reputation as a global company having strong brand portfolio, and successful in maintain strong relationship with retailers. Unilever’s strength is its resources, standardization, and quality by which they maintain all the operations regarding its process that helps organization development the competitive advantage to survive in the market in long-term planning. Their major strength is their patent products and strong brand name of daily life products that also satisfy their target market, and having good reputation among consumer, suppliers, and retailer. The other major areas of strength is cost of every single unit of their product mix due to the wide range of daily use product and have a exclusive access of high grade natural resources to meet the requirements, and have a favorable access to distribution networks, wide distribution channels, maintain a quality of their products with quality skilled labour and management which causes the magnanimous quality and satisfaction.

Unilever is leading in multifarious food products such as culinary category, soups, packet tea, spreads, margarine, ice cream, olive oil, home care products for example cleansing, hygiene products, and frozen food in Europe. They are famous for best seller of various brands. Unilever has the ability to modify products according to the consumer demands. They have the good understanding of its diverse market and they are consistently engage in innovation of the products for each of the market segment. They have the kind of culture that they also listening to the consumer demands and catering them in an efficient manner. Unilever is also focusing on social responsibility to shareholders and their employees. They are constantly growing and concentrating on the core brand. They are also demonstrating the power of rapid growth in Italy and Britain. Their market shares are successfully increasing in Africa, Middle East, and Turkey. They are giving their best on the large range of brand by considering variations in its consumers.

(W)eaknesses:

Unilever one of the weakness is reduction in the R& D budget, their incompetency to maximize remuneration, and the inefficient management of products. Absence of certain strength in the company viewed as a weakness. Their high cost structure affects due to the import of raw material, advance technology, and which also create frequent fluctuation in foreign current. They are recently facing weak distribution channels in some countries which cause low customer retention and their inefficient management giving unsatisfactory services which have direct impact on effectiveness and unavailability of products. Unilever is facing decline demand from America. The reputed perfume, frozen food and other products is not performing up to the mark while the benchmark target is 5%. Decline in sales is due to the inflation. The organizational structure is not suitable for them. They are also facing competition from Marks & Spencer, and Sainsbury also started high quality of eatable items.

(O)pportunities

As Unilever make changes according to the consumer preferences, and also involve in increasing the quality of healthy products. The external environmental analysis may reveal certain new opportunities for profit and growth in mainly input cost reduction for lower personal taxes at which they have more opportunity to import new technologies and keep upgrading their manufacturing system with removal of major international trade barriers. The advance techniques for distribution channels also have positive effect and reputation of unbranded product goes high with major related products with changing taste of individuals, time by time, liberalization of market and competency also give an opportunity to produce better and for consumer point of view. Unilever has an advantage of changing its market segment by taking into consideration the specific health conscious group and young generation who can easily manage to buy the products. Unilever is growing rapidly in the developing countries, and also involve in getting innovative position or favors. Their market share is increasing in Africa, Middle East and Turkey.

(T)hreats

Unilever is facing decrease in the revenues due to the strong competition. Their store brands is increasing which is threat for the company, and the business climate is getting tougher as Marks & Spencer, and Sainsbury also started high quality of eatable items. Changes in the external environmental also may present threats to the firm closely related to the government variation and their policies at which they directly targeted to the taxes because it is the major revenue generator for the country not for the company, which may effect on to their small markets and hopelessly of geographic market and their targeted consumer may change their taste and way of using it. Increasing trade barriers, variation on foreign currency also differ, and evolution of substitute products. Their customer is losing confidence and trust in their products and most of the consumers switching to reduced-fat product. Retailers are also failing to make sales by not stocking enough stock.

Cost benefits analysis:

The financial position of the Unilever is another important aspect of the internal analysis which also include my proposing change which will incur low cost and work more effective if they design such management system in its organization. The strengths and weaknesses of the organization have been taken into consideration because its financial objectives will illustrate the extent to which the organization will meet the requirement and some of the key targets to achieve. It will also instruct management to participate efficiently in operations and in decision making so together everyone will achieve more.

TASK # 2

Outline the contributions of the classical/traditional school of management theorists to understanding organisations.

Classical scientific school

FEDRICK TAYLOR:

Commence with the Fedrick Taylor in 1878 midvale steel company hired taylor. Taylor developed that production and wage were inefficient and waste were accustomed. The most companies had greatly useless potential. He discovered that the management system is not in choatic manner, no research, and they have to analize the efficient means of production existed.

Hence in response, taylor discovered another approach to management, which is said to be scientific management. This idea vindicate the implimentation of scientific methods to determine work and to demonstrate how to complete production goal effectively.

Taylor discovered four principles of scientific management:

management should established a punctilious, scientific appraoch for every element of one’s work to replace general guidliness.
Management should carefully select, train, teach, and analyze every worker so that the right person will get the right job.
Management should corporate with empoyees to make sure that job match plans and principles,
Management should make sure a perfect dissimination of work and develop sense of responsibility between managers and worker.

In order to apply these principles Taylor used techniques e.g : time-and-motion studies. In these techniques the task was divided into its initial movements, and find different ways to determine the time in order to complete the task effectively and efficiently.

The best way to idenfied to perform the task Taylor intensify the significant of hiring and training teh proper work to do that job. Taylor advocated the chaotic tools, and use cards to instruct the worker, and break to eradicate fatigue.

Another important element of Taylor’s approach was the differential. Piecerate system and its uses. The Taylor developed the thought that the workers were motivated by reward and that is money.

Hence, he developed a wage system in which the employees recieved additional pay when they increased a standard level of output for each task.

Classical administrative school

HENRI FAYOL:

Henri fayol introduced five functions and fourteen principles of management. Fayol discovered these five rules as a universal truth for management, fayol basically wanted them to implement these priciples flexibly.These principles support today’s world managers that how to supervise and organize the departments in the chaotic manner.Though later on this idea has created controversied on few of the principles. The principles consist of division of work that is the worker should be divided into specialized tasks ans assigns responsibilties to specific individual. The authority and reponsibility based on giving the power to the right person who perfectly fits the job, and the authority will be base on personality,intelligence,and experience of the individual who has sense of resposibiility. Discipline illustrate that respecting individual in the organization play an important role. Perfect discipline in the organization need to have a god manager so that he will implement when morale of the individual violated. The unity of command ascertain that the worker will get orders from only supervisor which means only the superior authority could instruct its workers. The unity of direction designates that the organization structure will be based on centralization that have only one action plan. The subordinate of individual interest to general interest determine that the interest of employees should be meet with the interest of the organizational goal. Compensation of personnel illustrates that employees should recieve the fair pay which provide them job satisfaction to them and lead them towards job commitment. He believe that the centralization is an ideal implementation of personnel. The scalar chain demonstrate the pyramide type of structure which start from the upper level and ends with the lower level. Organizational command to each employee who perfectly fits the job is essential for organizational function and operations. Equity is the conjunction of generosity and fair play.Treat equally each of the employee in the organization. Stability of tenure of personnel is important to get maximum production of personnel, there should be firmness in the position of the organization. Initiaitve illustrates to think out of the box and motivate good decisioin makers give them zeal and boost them up at higher lever. Esprit de corps ascertain teamwork which paly an important part in every organization and encourages effective communication within a teams in the workplace

Classical administrative school

MAX WEBER:

According to the weber bureaucracy is the most ideal approach of management. The concept of weber was that bureaucratic structure eradicate the variability that conclude managers in the same corporation having different skills, abilities, knowledge,experience, and objectives. Weber advocated that the task themselves be benchmark so that the personnel variation would not disrupt the organization. Weber focus on a well structured, formal network of relationahsips among specialized positions in the corporation.Make rules and regulations set benchmark of behaviour, and authority resides in position, rather than in individual.

Classical scientific school

Frank and Lillian Gilbreth:

Frank was basically interested in standardization and method study. Frank exposed that every bricklayer have a different design of movement to lay bricks. Frank investigated that the initial movements is essential to do the task and eradicate useless motions. Worker had increased their productive output from 1000 to 2700 bricks per day. This was the elementary motion study configurate to confine the best possible technique to performing a given task.They developed new benchmark techniques to do the task. They bring out the inspiration towards work and collaboration between employees and management to make sure that the employees are following the policies and procedures. They also proposed that the task should be divided equally between the worker and the management.

Classical scientific school

Henry Gantt : Henry had his contribution of Taylor’s , he developed the Gantt chart, and a bar chart which proportionate the planned and completed task defining each of the stage. His appraoch was dependent on the time rather then the qauntity, volume, or weight.

Classical administrative school

Mary Parker Follett:

Mary parker follett intensify the essential of an organization during establishing its goals and objectives. Moreover she also look forward and actualize the common hierarchical organization where employees will be treated as rebot. She also come up with the comcept of involve employees in decision making, her main focus was on the stressed the importantance of workers instead of techniques.This fundamental goals and objectives established more than 80 years ago.

Classical administrative school

Chester BarnardÂ :

Barnard come up with the idea of the formal organiztional design. Barnard thought that this formal organizations will play an important role in communication function and on the whole organization which also help organization to achieve their targets and objectives. Barnard observered manager should have sense of resposibility or purpose which inspire the organization and innovation takes place. The acceptance theory of management focus on the compliance of workers to acknowledge that the manager have the authority to act.

Barnard has developed four factors influence the eagerness of employees to capitulate the authorityÂ :

Communicate in such a way that employees have clear idea about the goals and objectives.
Organization should implement the formal way to communicate which does not violate morale of any individual.
The performances of the employees will be persistent with the need and desire of the othe employees.
To make employees feel that they are mentally and physically able to perform the task in execute the order from the authority.

Describe the key features of different factors which affect change in organisations in the current economic climate.

The social and cultural factors prominently affect the change in the organizations, corporations should remain productive and lucrative as possible as they can. The recent economic situation is greatly affecting the purchasing power of the consumers and rapid chnage in the buying behaviour of consumers that changes accordingly change in their lifestyle. The enormous changes took place in social and in culture and most of the consumers running towards the healther products.

Give reasons why individuals and organizations tend to resist change.

Our whole society in turning with the change they are facing that is very natural for any individual and organizaiton which move with the variability whether it is the external chnage or internal change. We are moving toward the unhealthy spending. The common list will be implemented to the common situations .

When the objective is not clear the change will takes place. When there is no defining purpose of the organization there will be anxiety creates within an organzaiotn and the corporation will lead downward. It always create confusion and unrest situation. When there is a desire or passion to wokr for honor the organization will not face any unusuall circumstances but in case of any variability in the organzaiton their determination will lead them towards accomplishing their objectives. Organization should make its management feel that how much thry respect its most important assets that is poeple working in the organizaiton. The resistance to variation when there is no specific content of behaviour in the organization. The organization hsould make stardards and keep in mind its norm and morale of the workers in the organization. When there is clumcy process the people get confuse and their productivity lead them towards fitague.

Examine how effectively bureaucratic organizations respond to changing circumstances in the environment.

Bureaucratic organizational structure is no longer undertaking by any organization The new approach that is decentralization is mostly adoptable and flexible for most of the organization now-a-days. Many of the organizations involve in the partnership,mergers, and non- governmental organization which involves diversity and lead the corporations towards the decentralization.

Explain the meaning and nature of the concept of organization development.

Organizational development is a systematic series of planned actions which handle by the upper level in order to increase organizational objectives and goals. Organizational development plann will vary when there is external factors affecting the plann of the organization which they made to achieve the target or objectives.

Organization development having long-term approach that increase the organizational performance and effectiveness.The organizational development emphasizes on the entire system. Organizational development is supported by the upper management to take decisions effectively and efficiently. Organizational development maximize the organization’s health , its fundamental goal is to improve the operations it is involve in and make them more efficient in order to sustain their business in the competative environment by listing their objeectives and by making standards according to the society needs. It also involves in the qaulity management, strategic planning, and buliding team spirit.

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