International Response Week 4 # 2
Shannon’s Post
The competitive environment for Unilever changed because the world was increasingly becoming more global. Unilever had to change from a decentralized structure to become more efficient and competitive to build their brand. As the world became more aware of global brands, companies had to consolidate their policies and management styles to improve their profitability.
Some of the Changes Unilever made included internal restructuring, “alliances, mergers, and acquisitions” (Peng, 2023, p. 446). Other ways they improved their global brand was through using corporate social responsibility to appeal to consumers. Some other forms of restructuring included change in management and branding a memorable logo (Solley, 2004). Their managment changes had to consider the size of their company and the expanse over many locations throughout the globe. "By creating a group of three directors, we maintained the flat organizational structure and diversity we value so highly; and by letting these directors work as one group on product strategy, we achieved the unity that had been missing in our previous organization" (Malijers, 1992, para. 16).
The new corporate identity did well for the company. Appealing to consumers as an ethical company was a good step, since it has only become more important to consumers as the years have progressed. Their prior strategy was localization, where they did not have specifics across each country, instead opting to “stand-alone” based on each location of operation. This method was too expensive to continue, which led Unilever to become transnational. Their strategy to “capture the best of both worlds by endeavoring to be both cost efficient and locally responsive" (Peng, 2023, p. 425, para. 4 ), is effective in a globally competitive business.
References:
Maljers, F. A. (1992). Inside Unilever: The Evolving Transnational Company. Harvard Business Review. Retrieved April 5, 2023, from https://hbr.org/1992/09/inside- unilever-the-evolving-transnational-company
Peng, M. W. (2023). Global business (5th ed.). Cengage Learning.
Solley, S. (2004, Feb 19). Unilever in radical identity overhaul. Marketing, , 1. https://www.proquest.com/magazines/unilever-radical-identity- overhaul/docview/214976752/se-2Links to an external site.
Krystian’s Post
What changes did Unilever make in its strategy and structure to compete effectively in the new environment?
Unilever changed their name and their logo to be more globally fitting so that each of their subsidiaries could adopt the same branding and image. Unilever also changed their organizational structure in the 1990s to better fit a global strategy. The company had a decentralized strategy where each location was only responsible for their location and their functions, which led to many inefficiencies (Peng, 2023). To create a more united company, Unilever created a board of directors that make decisions on all areas of the company, not just certain segments (HUL, n.d).
Does the new corporate identity of HLL fit the new strategy and environment?
The new identity does fit Unilever’s new strategy because it is more unifying and creates a recognizable brand across several countries. In addition, there is now a centralized strategy that helps when making decisions for the company as a whole and working towards a common goal in each market.
Is Unilever pursuing a global standardization strategy or a localization strategy?
Unilever is pursuing a localization strategy. It has several locations in different countries, and they have created individual business plans based on each region (Unilever, 2023). Although the organizational structure has become more centralized, the company is still focused on addressing the needs of each individual market that they compete within.
References
Peng, M. W. (2023). Global business (5th ed.). Cengage Learning.
HUL (n.d.). HUL History. HUL. Retrieved from https://www.hul.co.in/our-company/hul- history/
Unilever (2023). Inside our markets: Unilever in India. Unilever. Retrieved from https://www.unilever.com/news/news-search/2023/inside-our-markets-unilever-in- india/