UNILEVER COMPANY.

BRIEF HISTORY The company was founded in 1872 with the production of their first brand which was margarine. The factory was situated in the Netherlands. Between the period of 1884 1889 the company ventured into the production of sunlight and Knorr. The company also opened a new factory in Germany and Liverpool so as to expand its market and increase its production respectively. Between the years of 1904-1909 the company introduced a new product called Vim which was one of the first scouring powders and the company becomes incorporated in South Africa. The company at this time had a thriving export trade and factories in three European countries including factories in Canada, Australia and the United States of America. In the 1910-1919 the company buys its first company in the West Africa so as to have continuous supply of palm oil. The company also increases its supply of margarine with the launch of Planters while increasing its business operations in the South American front while its American counterpart begins to enjoy profits. In I920-1929 the company gains control of the Niger Company and it later becomes part of the United Africa Company. In September 1929 Lever Brothers and Margarine unite to create Unilever. In 1930 the companys largest competitor Proctor and Gamble enter the market. The company adds vitamins A and D to the production of margarine to levels that equal those found in margarine. During the war the company is unable to move profits out of Germany and is forced to invest their profits in industry that are not related to oils and fats including public utilities. After the war around 1940-1949 the company launches the lifebuoy soap in London and goes round with hot showers, soaps and towels visiting bomb struck areas to offer mobile washing services. In 1943 the company acquires the majority shareholding in Frosted foods which owns Birds Eye and the United Kingdom rights to a method of food preservation new to mass markets which was deep freezing. Around the same time the company acquires Batchelor which specializes in freeze dried vegetables and canned goods. Around 1946 Bird Eye launches the first frozen peas to the United Kingdom Market and frozen foods sales account for only 9% of the companys sales.

In 1954 the company launches Sunsilk shampoo in the United Kingdom market which becomes a leading product in 18 countries. On September 1955, Unilever launches its first advertisement in the United Kingdom commercial television channels. The advertisement was for Gibbs SR toothpaste. The company then launches fish fingers into the United Kingdom and a decade later the Company sales account for 10% of the countrys fish consumption. In the same year the company launches Dove soap in the United States market. In 1956 the company expands into the frozen foods and ice-cream market with the acquisition of Vita NY which later became the Iglo Mora group. In 1959 the company relaunches its margarine in a tub instead of the traditional packaging of greaseproof paper. The launch is done in Blauband in Germany followed by Flora in Britain. In 1970 the company acquires Zwanenbergs at OSS and it later becomes Unilevers meat group UVS. It also goes ahead and acquires Lipton international which becomes one of the largest in the world. The company also launches a deodorant named impulse in the South African economy which is later sold in 30 countries. In Australia it launches a revolutionary health gum brand called Mentadent. In 1973 its United States subsidiary becomes UAC international having expanded since its inception to trading in 43 countries. By 1977 Unilever has employed a record 177,000 people in 200 offices and factories. In 1982 the company launches viennetta ice-cream gateaux in Britain as a Christmas specialty. The company launches body spray for men in the United Kingdom (lynx) and in France (Axe). The company acquires Brooke Bond in its first ever hostile take over. In 1985 Unipath launches the first home pregnancy kit Clearblue which is made available in pharmacies. In 1986 the company acquires Naarden which doubles the companys sales in fragrances and food flavors. Its United States subsidiary acquires Chesebrough which owns Vaseline and Ponds. In the 1987 Dove is relaunched starting in Europe and then in Italy. In 1989 the company acquires Calvin Klein and Elizabeth Arden/ Faberge while magnum icecream is launched in Germany. In the 1992 the company entered the Czech Republic and Hungary and establishes UniRus in Russia. The company later on then acquired Breyers ice-cream company in the United States and then launched an organic shampoo in Thailand by 1995 the shampoo was being sold in 40 countries.

ORGANIZATION STRUCTURE The organization is structured from in the following manner;

THE EXECUTIVE DIRECTORS These are directors who are members of the Unilever Executive and are inclusive of the group chief executive officer. Apart from been executive directors they are also directors of Unilever. The directors are the chief executive officer and the chief financial officer. NON-EXECUTIVE DIRECTORS. These are directors who are independent of Unilevers governance. UNILEVER EXECUTIVE This is the arm of the organization that is responsible for managing profit and loss and delivering growth across the regions categories and functions. It includes; the chief executive officer, the chief human resource officer, the chief research and development officer, chief financial officer, president Americas, president Asia-Africa , president global foods and home and personal care, chief supply chain officer, chief marketing and communication officer, president Unilever Western Europe. SENIOR CORPORATE OFFICERS The officials at this level are tasked with ensuring that all board meetings and board committee meetings are supplied with the necessary information needed. They include; chief legal officer and group secretary and the group controller. DESCRIPTION OF ONE PRODUCT The product our group chose to describe is Blue Band margarine which is consumed in the local market.

TARGET MARKET. The target market for the product is majorly the young and growing children as well as -Target market

OPERATING ENVIRONMENT In regard to competition, the organization operates on an international level. Despite this fact their competitors vary from those with a regional or local focus to those with an international focus. In the distribution channel the organization the organization sells its products through its own sales officers as well as by use of independent brokers and agents who supply to wholesalers, and grocery stores among others. The goods are physically distributed through a well developed supply network. Some of the products produced by Unilever are seasonal so the sales fluctuate according to the seasonal demand of the product. The organization deals with the threat of seasonal fluctuation of demand by operating globally in different regions. This ensures that since the regions experience different season at the same time demand is able to be stabilized. The raw materials used in the production of the goods are affected by the factors of production. In the recent past the organization has been faced with the increase in fuel prices which made production more expensive. Therefore the environment facing the cost of production can be very unpredictable as it relies on elements such as the climate, the economic and political situation of the area which is exporting the product.

SUPPLY CHAIN STRATEGY The major function of the companys supply chain is to provide the organization with a global understanding of the supply chain and its sub-processes. The supply chain provides a common language that connects all the subsidiaries if the global group and allows the identification and implementation of synergies. The key functions include the identification of key performance indicators and the assessment of the supply chain performance. The company uses E-Procuring so as to be able to have a world class supply chain and also to be able to simplify the supply process. It has therefore increased productivity and reduced the transaction costs for the supply chain.

The following represents the supply chain for the International Region;

PHASE I Manufacturing Imported from USA and Europe

PHASE II Storage/Warehousin g Stock Keeping Units (SKUs) Distribution Centers

PHASE 111 Distribution/Retail Customer Distribution Centers Independent Brokers Agents and Distributors to chain Wholesale, cooperative and independent grocery accounts Food service distributors

Company owned manufacturing units 3RD Party manufacturers

Satellite Warehouses Company operated and public storage facilities. Depots/Facilities

QUESTION TWO

Based in the article Unilever is majorly an organization that deals with functional goods. This means therefore that the organization should concentrate on an efficient supply chain. This means that the major focus will be on the cost or production, transportation and inventory cost. The organization can use forecasting to determine the future demand for the goods since most of the products sold by the organization enjoy stable and predictable demand. This will ensure that the company is able to plan for any future resources that will be needed.