HEC MBA - BEST IN FRANCE CASE STUDY UNILEVER

HEC MBA - BEST IN FRANCE CASE
STUDY
UNILEVER
Jouy en Josas, December 2003
AGENDA
Company Overview
International Growth Policies
Values Adaptation
Conclusions
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COMPANY HISTORY
Unilever is one of the world’s leading suppliers of fast-moving consumer goods
• Unilever was created in 1930 when the British soap maker Lever
Brothers merged with the Dutch margarine producer, Margarine Unie
• The owners of the two companies could see that bringing together
complimentary businesses with strong global networks would create
new opportunities
• Employing 247,000 people, Unilever has two parent companies Unilever NV and Unilever PLC – which, despite being separate
businesses, operate as a single unit with the same board of directors
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COMPANY OVERVIEW
Unilever is one of the world’s leading suppliers of fast-moving consumer goods
(cont.)
• Worldwide turnover in 2002 was €48 760 million
• They employ 247,000 people
• Every day, 150 million people choose Unilever’s brands to feed their
families and to clean their homes
•
Over half its sales are generated by their foods division brands
•
Their foods brands include Becel, Bertolli, Blue Band, Flora,
Hellmann’s and Knorr
• Their major home care brands are Brilhante, Comfort, Skip and Omo
• Their top personal care brands include Axe, Dove, Lux and Ponds
• Unilever’s activity is distributed 40% in Europe, 26% in North America
and 34% on other territories
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COMPANY OVERVIEW
Regional and Category Highlights
Turnover by Region %
2002
Turnover by Category %
2002
1%
19%
11%
16%
25%
40%
13%
18%
7%
9%
15%
26%
Europe
Asia and Pacific
North America
Latin America
Africa and Middle East
Dressings
Spreads
Health and Beverages
Ice Cream & Frozen Foods
Home Care
Personal Care
Other
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UNILEVER IN FRANCE
In France, Unilever is structured in two main divisions
• Foods
— Cogesal-Miko, glaces (Carte d'or, Magnum, Miko, Royal Cornetto, Cornetto
Soft, Solero, Viennetta) et surgelés (Iglo et Knorr)
— Unilever Bestfoods France: Amora, Boursin, Fruit d'Or, Knorr, Lipton,
Maille, Planta Fin
— Slimfast France avec ses produits diététiques.
• Home and Personal Care
— Lever Fabergé France
• Home Care: lessives (Coral, Omo et Skip), produits pour lave-vaisselle
(Sun), assouplissants (Cajoline), nettoyants ménagers (Cif, Domestos,
Vigor)
• Personal Care: produits dentaires (Sanogyl, Signal), produits de soin et
d'hygiène de la peau, déodorants et produits capillaires (Axe, Dove,
Organics, Rexona et Timotei)
— Unilever Cosmetics International France
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UNILEVER IN FRANCE
Some key figures of Unilever France
• Employees: 5.250
— 90 French abroad
— 80 foreigners in France
• Sales: € 3 875 million
• Exportation: € 555 million
• 14 industrial plants
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AGENDA
Company Overview
International Growth Policies
Values Adaptation
Conclusions
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INTERNATIONAL STRUCTURE
In spite of having its HQ in London and Rotterdam, the core building block in
Unilever is the local operating company
The “Multi-Local” Structure
•
Home & Personal Care Regions
— Home and Personal Care, Asia
— Home and Personal Care, Europe
— Home and Personal Care, North America
Basic Units
— HPC Africa & Middle East
National Companies
— Latin America: HPC Division
•
Unilever Bestfoods Regions
+
—Foods North Africa, Middle East and Turkey
—Ice Cream and Frozen Foods
— Unilever Bestfoods Asia
—Unilever Bestfoods Latin America
International Innovation Centers / Categories
—Unilever Bestfoods North America &
Slimfast worldwide
—Unilever Bestfoods, Europe
•
Non Divisional Groups
—Africa Regional Group
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COMPANY APPROACH TO INTERNATIONAL GROWTH
Unilever’s international expansion decisions are ALWAYS guided by business
drivers and never for other non business benefits such as taxation
Government assistance,
Taxation, etc.
Non-Business
Benefits
Business
INTERNATIONAL
Specific
Potential
GROWTH
Expertise
Special focus on
Development of
Revenues Growth
Innovation Centres
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ROLE OF UNILEVER FRANCE IN THE GROUP
As in the rest of the world, Unilever operates in France due to the importance of the
market and to specific expertise the country offers
BUSINESS DRIVERS
• Innovation center in Dijon for
• Know how, expertise
Mustard and Dressings
• Production plants and sales offices
to distribute HPC and Foods
• Volume of business
products
• Proximity to the consumers
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INTERNATIONAL MOBILITY POLICY
Since Unilever is a global Company, there is a strong international mobility to
promote “high potential” career growth and diversity
How?
Who?
• Young Managers, to gain international
• Management development process
experience early
• Specialists, to fill a specific role
• Opening job posting
• Managers with exceptional potential
(Top Management Development)
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INTERNATIONAL MOBILITY POLICY
For people coming from other parts of the world, France must apply the
international policies
Conditions
• Local salary / contract
• Standard remuneration regardless country of origin
— Worldwide work levels and pay-scales
— Salary = pay-scales percentages
• Expatriation allowance (from a pre-established matrix)
• Housing allowance
• Initial expenses allowance (15%)
• Education assistance
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INTERNATIONAL MOBILITY POLICY
During the last years, there is a strong trend within the company (including France)
to go from expatriation to local hiring
From
Towards
Home
Home
Host
Host
Home
Host
Gross Salary
Net Policy
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AGENDA
Company Overview
International Growth Policies
Values Adaptation
Conclusions
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VALUES
UNILEVER’s values are all universal or business oriented and are not tied to any
single national culture
UNILEVER’s Main Values
• Honesty
• Integrity
• Openness
• Respect of the Human Rights
• Interest for the employees
• Commitment to provide the consumers with safe product that offer
value in terms of price & quality
• Good corporate governance
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VALUES ADAPTATION
Since company’s values are global ones, there was not a special adaptation to
operate in France
• In France as well as in the rest of the world, there is ONE “Unilever
Culture”
—Same values
—Same language
—Same systems
• Every new tool developed (for every field) is think in a global basis
—Ex.: opinion survey
• There is a small room for local policies
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AGENDA
Company Overview
International Growth Policies
Values Adaptation
Conclusions
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CONCLUSION
As a real global company, Unilever did not developed any specificity linked to the
French culture or environment, applying therefore all its international HR policies
•
Unilever has no single country of origin and expanded worldwide with a multilocal approach
•
The core values of the company are universal and widely accepted
•
The main drivers for investment in a given country are potential local market
and/or specific local expertise
 As a consequence the French facilities of UNILEVER do not present any
specificity linked to the French culture or environment
 Government policies has no direct effect on their investment in France
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ACKNOWLEDGEMENT
Special thanks to:
• Mr. Patrice Venet – National HR Department (Unilever France)
[email protected]
• Mrs. Fernanda S. Sanchez – Data Collection Manager (UBF France)
[email protected]
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Group D
Arnaud Lelache
Augusto Accorsi
Peter Feddersen
Philip Cacouris