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Unilever’s strategy: Path to growth

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  1. Task 1
    1. Company background
    2. SWOT analysis
    3. Resources and capabilities
    4. Conclusion
  2. Task 2
    1. Introduction
    2. Aims and facts of path to growth strategy
    3. Comparison between SWOT analysis and path to growth strategy
  3. Task 3
    1. During the path to growth strategy
    2. Post path to growth strategy
    3. Purpose and principles of Unilever today
    4. Strategy in the year 2007
  4. Task 4
    1. Meaning of strategy
    2. Levels of strategy
    3. Four strategy alternatives to diversified companies
    4. Theory in practice

A company that was founded in 1930 during the merger between Margarine Unie, a Dutch company and Lever Brothers, a British based soap and detergent company. Before the merger both the company were buying raw materials from same suppliers and similar distribution channels. Both the companies were promoting and marketing their household products. After the founding of UNILEVER, it went on acquiring and merging companies and increasing their food and household product range. During the mid 1970s half or more of the profits of the company came from its west African plantations which produced bulk vegetable oils for margarine and washing powders. At regular intervals, the top officials / executives took the initiative to introduced new strategy to give company the much needed focus on marketing its food, household and personal care products. Before the launch of the Path to Growth strategy, the company had 1600 brands altogether and accounted for a total sales of 41.2 billion Euros in 99 with strong operations in 88 countries. Analysts regarded Unilever as a company wherein individuals join the company during or immediately after their college and leave when they have crossed their age for retirement. It was a cradle to grave company.

Tags: Unilever path to growth, Unilever business strategy, Unilever-dove strategy, Business strategy of Unilever, business objectives for dove/ Unilever, Unilever growth strategy

[...] Patrick Cescau said that since the launch of Path to growth strategy, they have made growth as their number one priority. Because he believes that growth is the very most important thing for success and sustainability of any business. Throughout the 1980's and 1990's, Unilever's growth was mere in volume. Hence the path to growth strategy was launched in order to achieve and sustain the required growth rate. Patrick Cescau believes that the five year term plan strategy achieved most of the many things that were listed in its objective sheet. [...]

[...] During Path To Growth Strategy: Inspite of receiving doubts and criticism from analyst, Unilever's two co- chairman went ahead with the plans to put Path to Growth Strategy in action. In the following twelve months of Launching Path to Growth Strategy. Unilever: - Made twenty new acquisitions. Bought some of the best businesses like Best Foods, Slim Fast and Ben & Jerrys Ice Cream. - Reduce the company's Brand Portfolio of 1600 Brands to 970 brands. Company cut loose some brand that were declining in sales and few that were not appropriate for company's future strategy. [...]

[...] Out of the many acquisitions that were made after the launch of PATH TO GROWTH STRATEGY, Slimfast was looking the most promising one due its market dominance in its segment and growth rate in sales of from 1998 to 1999. Market reports also suggested that there is an 89% recognition of the Slimfast products. But during 2003, it showed alarming signs with sales slowing down to in 2002 and then units sold also started falling sharply. RESOURCES AND CAPABILTIES: Late 1970s and early 1980s UNILEVER diversified its product range from food and household products to specialty chemicals. [...]

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