hec mba - best in france case study unilever jouy en josas, december 2003
TRANSCRIPT
HEC MBA - BEST IN FRANCE CASE
STUDY
UNILEVER
Jouy en Josas, December 2003
2
AGENDA
Company Overview
International Growth Policies
Values Adaptation
Conclusions
3
COMPANY HISTORY
• 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
Unilever is one of the world’s leading suppliers of fast-moving consumer goods
4
COMPANY OVERVIEW
• 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
Unilever is one of the world’s leading suppliers of fast-moving consumer goods (cont.)
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COMPANY OVERVIEW
40%
26%
7%
16%
11%
Europe North America Africa and Middle EastAsia and Pacif ic Latin America
Turnover by Region %2002
19%
13%
9%
15%
18%
25%
1%
Dressings Spreads Health and Beverages
Ice Cream & Frozen Foods Home Care Personal Care
Other
Turnover by Category %2002
Regional and Category Highlights
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UNILEVER IN FRANCE
• 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
In France, Unilever is structured in two main divisions
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UNILEVER IN FRANCE
• Employees: 5.250
— 90 French abroad
— 80 foreigners in France
• Sales: € 3 875 million
• Exportation: € 555 million
• 14 industrial plants
Some key figures of Unilever France
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AGENDA
Company Overview
International Growth Policies
Values Adaptation
Conclusions
9
INTERNATIONAL STRUCTURE
• Home & Personal Care Regions— Home and Personal Care, Asia
— Home and Personal Care, Europe
— Home and Personal Care, North America
— HPC Africa & Middle East
— 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
—Unilever Bestfoods North America &
Slimfast worldwide
—Unilever Bestfoods, Europe
• Non Divisional Groups—Africa Regional Group
Basic Units
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
National Companies
+
International Innovation Centers / Categories
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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
INTERNATIONAL
GROWTH
Government assistance,
Taxation, etc.
Business
Potential
Non-Business
Benefits
Specific
Expertise
Development of
Innovation CentresSpecial focus on
Revenues Growth
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ROLE OF UNILEVER FRANCE IN THE GROUP
BUSINESS DRIVERS
• Innovation center in Dijon for
Mustard and Dressings • Know how, expertise
• Production plants and sales offices
to distribute HPC and Foods
products
• Volume of business
• Proximity to the consumers
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
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INTERNATIONAL MOBILITY POLICY
• Young Managers, to gain international
experience early
• Specialists, to fill a specific role
• Managers with exceptional potential
(Top Management Development)
Since Unilever is a global Company, there is a strong international mobility to promote “high potential” career growth and diversity
Who?
• Management development process
• Opening job posting
How?
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INTERNATIONAL MOBILITY POLICY
• 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
For people coming from other parts of the world, France must apply the international policies
Conditions
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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
Host
Home
Home
Host
Host
Gross Salary Net Policy
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AGENDA
Company Overview
International Growth Policies
Values Adaptation
Conclusions
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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
UNILEVER’s values are all universal or business oriented and are not tied to any single national culture
UNILEVER’s Main Values
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VALUES ADAPTATION
• 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
Since company’s values are global ones, there was not a special adaptation to operate in France
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AGENDA
Company Overview
International Growth Policies
Values Adaptation
Conclusions
19
CONCLUSION
• Unilever has no single country of origin and expanded worldwide with a multi-
local 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
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
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ACKNOWLEDGEMENT
• Mr. Patrice Venet – National HR Department (Unilever France)
• Mrs. Fernanda S. Sanchez – Data Collection Manager (UBF France)
Special thanks to:
Group D
Arnaud Lelache
Augusto Accorsi
Peter Feddersen
Philip Cacouris