It’s our great pleasure to submit you this report on International Business strategy and Development in recent arena of Coca-cola. We have got a great experience while working on this report. We would like to leave this report to your kind consideration for any unintentional mistake that may accuser while doing this report. We are always at your service if you want to ask us anything about this report and it will be a great pleasure to work with you again in future. Sincerely yours Rajib Kundu Id # 2010-2-10-329 Razuan Ahmed Id#2010-2-10-271 EXECUTIVE SUMMARY A fundamental shift is occurring in the world of economy.
We are moving away from a world in which national economics were relatively self confined entities, isolated from each other by barriers to cross border trade and investments; by distance, time distance, and business language, and by national difference in government regulation, culture and business systems. But now a day’s border are more free for trade the goods and services. Transportation has made the international business easier. Government regulation has decreased a fair dell. For those reason countries are now moving more toward international business. COCA-COLA and UNILEAVER is the giant in global market.
Coca-Cola has business in more than 200 countries and Unilever has business in more than 100 countries. In this term paper we have discussed about how this two companies operate in different countries, what strategy they follow for doing business. We have also discussed how they follow government regulation, different culture, values and norms. How they help other nations economic growth. We also try to evaluate how they invest in foreign market. What strategy they follow in investing in other countries, they ways of their global expansion or the ways to enter in other markets.
We also try to find out the development they made in recent arena in global business. INTERNATIONAL BUSINESS AND DEVELOPMENT OF COCA-COLA COMPANY IN RECENT ARENA 1. 0 INTRODUCTION More than a billion times every day, thirsty people around the world reach for beverages for refreshment. All around the world, drinking beverage is like an entertainment for people. The first company that conducted its operation in the soft drink industry was Coca-Cola.  As the world’s largest manufacturer and distributor of non-alcoholic beverages, Coca-Cola is certainly no stranger to global marketing.
Established in the US, Coca-Cola initiated its global expansion in 1919 and now markets to more than 200 countries worldwide. It is one of the most recognizable brands on the planet and also owns a large portfolio of other soft drink brands including Schweppes, Oasis, 5 alive, Kea Oar, Fanta, Lilt, Dr Pepper, Sprite and Powerade. Since its beginning in the spring of 1886, Coca-Cola has grown to become the most recognized trademark in history. It’s world headquarters in Atlanta, Georgia. 1. 1 HISTORICAL EVOLUTION BIRTH OF COCA COLA: Coca cola was invented in city of Atlanta in 1886. scientist named John Pemberton was experiencing with his new recipe. He put some secret ingredients and found it very tasty, so he took that to Jacobs pharmacy mixed it with carbonated water and put it to sale for 5 cent a glass. Thus he invented greatest refreshment of all time BRAND NAME: Pemberton shared this formula with his bookkeeper frank robinson who named it coca cola and made its brand name on his own writing. This word spread around and 9 drinks were sold per day FORMATION OF COMPANY: In 1888,a businessman, Asa candler bought the secret formula and made the coca cola corporation.
He was a marketing genius . by his aggressive marketing coca cola became one of the popular fountain drink in America. For years it served in soda fountain. BOTTLING AGREEMENT: In1899, first bottling agreement was made. Thomas and Joseph obtained the rights of bottling coca cola for a sum of one dollar. But Mr. candler didn’t share the formula of coke. Only concentrated syrup was provided to bottlers, then they mixed ot with water and sweetener and filled it in water. Bottle style of coca cola became very famous. Agreements with bottling partners were made in different countries.
UNIQUE BOTTLE DESIGN: 1n 1916, unique design of counter bottle was made so that no one can imitate it. It became trademark status of US patent office. Today it is one of the most recognized icon in the world. By the end of 1920s bottle sales of coke were more than fountain sales. 1. 2 TOP MANAGEMENT PHILOSOPHY Top management philosophy plays a major role in giving a true picture of purpose of Company, and way of their thinking. Their thoughts and strategies determine in which direction company should go. How they will cope up with the foreign market. Coca-Cola always thinks globally.
So every country they go to doing business, they carry the mission and vision with them. Vision and missions of Coca Cola Company is always fortune in having so committed, visionary and dynamic leadership. VISION STATEMENT: “To maintain our reputation as the leading cola company in the world” No doubt that management is on right track in achieving this vision and coca cola is a well known brand in more than 200 counties. This vision guides coca cola in every aspect of business. MISSION STATEMENT This mission declares coca cola’s purpose as a company. • To Refresh the World… n body, mind, and spirit. • To Inspire Moments of Optimism… through our brands and our actions. • To Create Value and Make a Difference… everywhere we engage. Under this vision and mission umbrella, Coca Cola’s strategies revolve around following key points: People: Motivating employees to become the most valuable asset of company. Portfolio: It includes quality beverages that are according to customer taste and needs Partners: Creating value by maintaining strong networks with suppliers and nurturing long term relationships with customers.
Planet: To ensure safe operations that is environment friendly. Profit: Maximizing long-term return to shareowners while being mindful of our overall responsibilities. 2. 0 Maslow’s Hierarchy of Needs In 1943, Abraham Maslow first published his famous “Hierarchy of Needs” to explain what energizes and directs human behavior. It is no accident that very successful brands, such as Coke, appeal too many of Maslow’s deficiency and growth needs and that these needs are linked to powerful emotions: * Physiological Needs (Coca-Cola quenches thirst and hunger.
It is” delicious”;amp; “refreshing. ”) * Safety/Security Needs (Coca-Cola is safe to drink worldwide. It is unchanging: “Classic Coca-Cola. ”) * Belongingness Needs (You are part of a large group of people who love Coca-Cola. ) * Esteem Needs (Coca-Cola is recognized as a premium soft drink worldwide. It also call to mind memories of “special times and places. ”) * Aesthetic Needs (All Coke ads and designs have a sense of order and beauty. ) * Self-actualization Needs (On the Coca-Cola web site, there are many stories on how
Coca-Cola has deeply affected people’s lives) 3. 0 OPERETING STRUCTURE Orientation: Whether and how much a company and its manager adapt to foreign cultures, depends not only on the conditions within the foreign cultures, but also on the attitudes of the companies and their managers. There are four types of orientation that a company can have Polycentrism, Ethnocentrism, Regiocentrism and Geocentrism. In Polycentric organization, the company believes that business units in different countries should act very much like local companies.
In Ethnocentrism is the belief that one’s own culture is superior to others. Coca Cola thinks globally, that is why they become the number one brand in the world. To operate in different country in different region, Coca-Cola Company has selected the combination or the hybrid of the host country practice, the companies familiarized practices, and some entirely new practices, that is Geocentric. The Company’s operating management structure consists of five geographic groups plus the Minute Maid Company. 1. The North American Group comprises the US and Canada. 2.
The Latin America Group includes the Company’s operations across Central and South America, from Mexico to the tip of Argentina. 3. The Greater Europe Group stretches from Greenland to Russia’s Far East, including some of the most established markets in Western Europe and the rapidly growing nations of East and Central Europe. 4. The Africa and Middle East Group, the Company’s most populated operating group, encompasses the Middle East and the entire continent of Africa. 5. The Asia Pacific Group has operations from India through the Pacific region including China, Japan and Australia.
The Minute Maid Company – the Company’s juice business – is located in Houston, Texas. It is the world’s leading marketer of juices and juice drinks. 4. 0 GLOBAL EXPANTION 1886-1892: Coca cola made its beginning Atlanta in United States. Over the course of three years, 1888-1891, Atlanta businessman Asa Griggs Candler secured rights to the business for a total of about $2,300. Candler would become the Company’s first president, and the first to bring real vision to the business and the brand. 1893-1904: By 1895, Candler had built syrup plants in Chicago, Dallas and Los Angeles.
Inevitably, the soda’s popularity led to a demand for it to be enjoyed in new ways. In 1894, a Mississippi businessman named Joseph Biedenharn became the first to put Coca-Cola in bottles. 1905-1918: The Coca-Cola Company grew rapidly, moving into Canada, Panama, Cuba, Puerto Rico, France, and other countries and U. S. territories. In 1900, there were two bottlers of Coca-Cola; by 1920, there would be about 1,000. 1919-1940: The expansion of Coca-Cola overseas and in 1928 coca cola was introduced to the Olympic Games for the first time when Coca-Cola traveled with the U.
S. team to the 1928 Amsterdam Olympics. 1941-1959: In 1941, America entered World War II. Thousands of men and women were sent overseas. The country, and Coca-Cola, rallied behind them. President of company ordered that “Every man in uniform gets a bottle of Coca-Cola for 5 cents, wherever he is, and whatever it costs the Company”. 1960-1981: After 70 years of success with one brand, Coca-Cola, the Company decided to expand with new flavors: Fanta, originally developed in the 1940s and introduced in the 1950s; Sprite® followed in 1961, with TAB in 1963 and Fresca in 1966.
In 1960, The Coca-Cola Company acquired The Minute Maid Company, adding an entirely new line of business juices to the Company. 1982-1989: Many innovations occur. Diet coke was introduced in 1985. 1990-1999: Many new markets and brands were introduced. Association with different sports was created. Olympic Games, FIFA World Cup, football (soccer), Rugby World Cup and the National Basketball Association. 2000-now: Coca Cola is touching local communities with the customers preferences and cultural priorities at the top of mind.
It has portfolio of about 500 brands 5. 0 ENTRIY STRATEGY The coca cola company is a pure global enterprise. it has made its expansion possible throughout the world. 5. 1. Export: coca cola has divided its world market in 6 big regions i. e. north America, Latin America, Asia, Africa Europe . different countries within each region export products to each other Coca Cola used Hartsfield Jackson International Airport to transport goods to other countries in the world.
Coca Cola used the Interstate Highway System to transport products across America. They used Coca Cola trucks and made deliveries to places everywhere. Coca Cola used Deepwater Ports to ship cargo filled with Coca Cola products to other countries. 5. 2 Franchising: Coca-Cola Company is a franchise system. It’s bottlers are primarily local. In Bangladesh, for example, it has a Bangladeshi bottler. So the effectiveness of the company depends on the effectiveness of relationships with the bottlers and the Company.
To manage franchise relationships, Coca-Cola has to have a geographic orientation. Therefore the organization is primarily geographic. Coca cola has franchising agreements with its 3oo bottlers throughout the world. In such agreements bottling plants are wholly owned by the host country. Franchisee just import concentrate from Coca Cola Company. Coca cola company has no managements right in franchisees. 5. 3. Joint venture: To get the management right of bottling plant, Coca cola begin to expand by joint ventures with local bottling companies.
For example it entered Chinese market with franchising mode of entry but then penetrated market through joint ventures. 6. 0 HOW COCA-COLA MANAGES 90 EMERGING MARKET The world’s largest beverage company has delegated major decision making to individual markets, but it maintains its global brand strategy through collaborative practices. Ahmet C. Bozer, president of the Coca-Cola Company’s Eurasia and Africa Group, has spent his career demonstrating how a large international company can build a strategy and structure itself to compete in emerging markets.
Coca-Cola is one of the most globally active international companies, deriving 80 percent of its sales from outside the U. S. , and it is therefore one of the most experienced in tackling emerging markets, including Egypt and Pakistan, where political tension renders the business environment uncertain and Coca-Cola’s strategy has proven resilient. Bozer, who was born and raised in Turkey, has worked for Coca-Cola since 1990 in various capacities, including operations and finance, as well as leading the Coca-Cola bottling company in Turkey.
He is currently based in Istanbul, where he oversees 90 markets, ranging geographically from India and South Asia through the Middle East and all of Africa, across Turkey and the Caucasus into the countries of the former Soviet Union. This territory accounted for 16 percent of Coke’s sales last year, for a retail value of US$10 billion, and Bozer expects that number to grow rapidly during the next decade. Like four other regional presidents, Bozer reports directly to Coca-Cola Chairman and CEO Muhtar Kent in Atlanta, Ga.
Bozer sat down with a Business Newspaper at the Coca-Cola offices in New York. S+B: Your late CEO Roberto Goizueta charged the company to “think global, act local” in its strategy. How do you accomplish this? BOZER: I wish it was as easy as repeating the slogan. The key for international companies is finding the right mix of global and local in their operations. The Coca-Cola brand is global, but it must be locally relevant. We may be giving the same happiness message, the same brand architecture may be communicated, but it has to be done differently in each country.
S+B: Your structure has strong regional managers such as yourself, but headquarters in Atlanta maintains global responsibility for sales, finance, and marketing — and for specific product lines like water or juices. How do you manage this? BOZER: We are a franchise system. Our bottlers are primarily local. In Turkey, for example, we have a Turkish bottler. So the effectiveness of our company depends on the effectiveness of our relationships with the bottlers and our brands. To manage franchise relationships, you have to have a geographic orientation.
Therefore our organization is primarily geographic. Globally, we have five operating groups: North America, Latin America, Europe, Eurasia and Africa, and Pacific. At the same time, the juice business requires a different organizational structure than the sparkling beverages business. The raw material costs are high and fluctuate a lot, and there are opportunities to innovate more quickly; we may introduce four or five new variants of a juice in a given year. Thus, there is a matrix. A functional group in Atlanta is in charge of juices worldwide, but they work through the geographic organizations.
We are still evolving in finding the best local and global combination that works for us. When it comes to franchise relations with the bottlers, that is local. We have to make decisions in the local context with the right speed. Quality standards are both local (we adhere to all local government safety regulations) and global (we have our own global, rigorous, quality control standards). But we take advantage of our global properties and collaborate as a global team, bringing the best resources to bear on a specific issue. S+B: How do you manage disagreements between the field and headquarters?
BOZER: We have been working on it for many years. We all understand that nothing is as black-and-white as we’d like. Let’s say I’m hiring a function leader. I am the ultimate decision maker, but I know that any function leader must operate as part of the global team. He or she must be able to collaborate globally, and the global organization has to be comfortable with that candidate. This is where maturity is important. We emphasize a collaborative process because it makes the decision better. But our culture is purely focused on making the right choice, rather than defining my turf versus your turf.
That allows us to make these decisions quickly. 7. 0 BEING LOCALLY RESPONSIVE One of The Coca-Cola Company’s greatest strength lies in the ability to conduct business on a global scale while maintaining a local approach. By contract with The Coca-Cola Company or its local subsidiaries, local businesses are authorized to bottle and sell Company soft drinks within certain territorial boundaries and under conditions that ensure the highest standards of quality and uniformity. The Company takes pride in being a world-wide business that is always local.
Bottling plants are, with some exceptions, locally owned and operated by independent business people who are native to the nations in which they are located. Bottlers provide the required capital for investments in land, buildings, machinery, equipment, trucks, bottles and cases. Most supplies are purchased from local sources, often creating new supply industries and areas of employment within local economies. The Company supplies the concentrates and beverage bases used to make its products and provide management assistance to help its bottlers ensure the profitable growth of their businesses.
Product manufacturing, quality control, plant and equipment design, marketing and personnel training are just a few of the areas in which the Company shares its expertise. 8. 0 ENVIRONMENTAL ANALYSIS Environment of a business can be divided into two categories micro environment and macro environment. Coca cola company interacts with environment for both getting resources and offering products MICRO ENVIRONMENT: These are the forces that company can control it includes the following: Company: the employees of company. coa cola takes its employees as valuable assets.
They hire those individuals that are passionate and self motivated. Proper training is given to employees to work in the organization Suppliers: it includes suppliers of raw material and bottlers of coca cola. there are some companies which provide it ingredients, Packaging and machinery. it has franchise system with its bottlers and they are considered to be its partners. Coca cola company only produces syrup which then send to bottlers throughout the world to make finish product. coca cola has some rules and regulations which all suppliers have to follow. ).
These include: compliance with laws and standards, laws and regulations, freedom of association and collective bargaining, forced and child labor, abuse of labor, discrimination, wages and benefits, work hours and overtime, health and safety, environment, and demonstration of compliance (Coca Cola 2006). Intermediaries: It includes distributers, whole sellers and retailers. It works directly with intermediaries to maximize sales. It gives significant margins to retailers for shelf space. Customers: coca cola is always striving to create value for its customers.
It provides high quality products which are readily available to everyone, everywhere. Competitors: coca cola’s major competitor in market is Pepsi-cola. Coke objective is to produce better products than its competitors and to attract more customers. Coke is successful in doing so by its strong brand image and creative advertising. Publics: Coca cola always provide relevant information to public. Its press releases, speeches and company statement are relatively available. On its website it gives a lot of information . MACRO ENVIRONMENT: The distant forces that company cannot control.
It includes the following: Demographics: It includes study of population on basis of age, gender etc. The change in individual leads to different preferences of brand or taste. Fanta is mostly preferred by children and ladies while youngsters prefer energy drinks. Diet coke is for diet conscious people. Coca cola has assigned employees to constantly observe change in population. Economic factors: coca cola studies consumer spending habits and then accordingly price product. Natural forces: coca cola tries to be good cooperate citizen. It also emphasis on care of natural environment.
Coca cola has developed a foundation for the preservation of polar bears, it has largest bottle recycling plant, they have energy saving cola drink equipment. Technological forces: The new technology of internet and television has made the marketing more effective. Introduction of cans and new bottles have made to carry it more easily and it has increased companies sales. As the technology is advancing there has been introduction of new machineries and new packaging styles Political forces: All businesses have to abide by the rules and regulation of govt. Coca cola follows these rules.
It includes taxation requirements, environmental laws, political relations wit different countries and restriction on ability to transfer capital across border. Cultural forces: As coca cola operates in different countries it must be aware of the cultural needs of its employees and customers coca cola has continued changing, improving and developing new drinks that appeal to local tastes. For example coke do not appeal so much to Japanese consumers so coke offered 30 new drinks for Japanese market that include Asian tea, English tea, coffee and fermented-milk drink. . 0 DIFFRENCES IN GLOBAL AND NATIONAL ENVIRONMENT FOR COCA COLA COMPANY: Industry for coca cola is globally standardized i. e in every country coca cola is made up of same ingredients and all bottlers follow standardized rules of bottling but markets of coca cola are localized i. e packaging, branding and advertisement is different in different countries because of their cultural and linguistic reasons. 10. 0 OPERATING STRATEGY IN DIFFERENT COUNTRY In this section we will discuss about Coca-Cola and its global business strategies.
According to the article Coca-Cola is consumed all over the world, and its strength has been its ability to supersaturate first world markets and to break into foreign markets, providing rough competition to established foreign brands. They use great strategies such as their unique ad campaigns and their ways of helping the community. A questions that I have is does Coca-Cola have set strategies in case they start declining in sales. If this would happen I think they could suggest new advertisements or try to expand the number of places Coca-Cola is being sold.
Coca-Cola has a business strategy that has been taking place for the last 115 years. There strategy is quite simple- “to get the familiar red and white logo firmly imprinted in people’s minds all across the globe”. There strategy has been very successful; Coke is sold in over 200 countries. 10. 1 OPERATIONS IN INDIA: The Coca-Cola Company re-entered India through its wholly owned subsidiary, Coca-Cola India Private Limited and re-launched Coca-Cola in 1993 after the opening up of the Indian economy to foreign investments in 1991.
Since then its operations have grown rapidly through a model that supports bottling operations, both company owned as well as locally owned and includes over 7,000 Indian distributors and more than 1. 3 million retailers. The Coca-Cola Company’s brands in India include Coca-Cola, Fanta Orange, Fanta Apple, Limca, Sprite, Thums Up, Burn, Kinley, Maaza, Maaza Milky Delite, Minute Maid Pulpy Orange, Minute Maid Nimbu Fresh and Nestea Iced tea, the Georgia Gold range of teas and coffees and Vitingo (a beverage fortified with micro-nutrients).
In India, the Coca-Cola system comprises of a wholly owned subsidiary of The Coca-Cola Company namely Coca-Cola India Pvt Ltd which manufactures and sells concentrate and beverage bases and powdered beverage mixes, a Company-owned bottling entity, namely, Hindustan Coca-Cola Beverages Pvt Ltd; thirteen authorized bottling partners of The Coca-Cola Company, who are authorized to prepare, package, sell and distribute beverages under certain specified trademarks of The Coca-Cola Company; and an extensive distribution system comprising of the customers, distributors and retailers.
These authorized bottlers independently develop local markets and distribute beverages to grocers, small retailers, supermarkets, restaurants and numerous other businesses. In turn, these customers make these beverages available to consumers across India. Helping Indian People & Economy : * Foreign Investment: The Coca-Cola Company has invested nearly USD 1. 1 billion in its operations in India since its re-entry back into India in 1992. * Giving Employment: The Coca-Cola system in India directly employs over 25,000 people including those on contract.
The system has created indirect employment for more than 1,50,000 people in related industries through its vast procurement, supply and distribution system. We strive to ensure that our work environment is safe and inclusive and that there are plentiful opportunities for our people in India and across the world. * Economic Growth: The beverage industry is a major driver of economic growth. A National Council of Applied Economic Research (NCAER) study on the carbonated soft-drink industry indicates that this industry has an output multiplier effect of 2. 1.
This means that if one unit of output of beverage is increased, the direct and indirect effect on the economy will be twice of that. In terms of employment, the NCAER study notes that “an extra production of 1000 cases generates an extra employment of 410 man days. ” * Buyer of Agricultural product: Coca-Cola in India is amongst the largest domestic buyers of certain agricultural products. As an industry which has strong backward and forward linkages, operations catalysis growth in demand for products like glass, plastic, refrigeration, transportation, and Industrial and agricultural products. Company’s operations also lead to incremental growth for enterprises engaged in post production activities like merchandising, marketing and sales. In addition, it share best practices and technological advancements with our suppliers, vendors and allied industries which often lead to improvement in the overall standards of quality across industries. * Value on good citizenship:The Coca-Cola Company has always placed high value on good citizenship. Company’s basic proposition entails that our Company’s business should refresh the market; enrich the workplace; protect and preserve the environment; and strengthen the community. Education and Health: The Company leverage their unique strengths to actively support and respond to local needs — be it the need for education, health, water or nutrition. * Disaster Relief : They have used their distribution network for disaster relief, use their marketing prowess to raise awareness on issues such as PET recycling, and our presence in communities to improve access to education and potable water. * The Coca-Cola India Foundation is now taking forward in the community at large, projects and programs of social relevance to carry forward the message of inclusive growth and development. 10. 2 OPERATION IN AFRICA:
Coke is focusing a lot of its attention on promoting itself in less-developed markets and Africa. Africa has served as a model of branding success in the third world for Coca-Cola. It has helped compare the sales to the Asia-Pacific Group. Asia’s target group is about 3. 2 billion potential customers whereas Africa’s is 1. 2 billion. The average African drinks two servings of the company’s products per month, twice as much as the average Asian. Despite the poverty in Africa, raging civil wars and major health problems, Coke is sold throughout the continent with the exception of Libya, Morocco and the Sudan.
The major place Coke is sold is Rwanda, Burundi, Angola and Zimbabwe. Coke has been very successful in Africa. It has been successful because * It is a much admired brand name. People walk miles down dirt roads to reach a place to buy Coke. * The reason it is admired and successful is because of its advertising as well as its involvement in community life. Coke has helped the community by initiating sports scholarships, sports development, entrepreneurial development, scholarships and education projects. Coca-Cola has found many ways to get its products trucked into even the most remote corners of Africa and has cultivated reputation for corporate honesty and openness that has won the respect of African business people from Cape Town to Madagascar. “If Coke can succeed here, Asia ought to be a snap. ” * Coke has been very successful with its local advertising campaigns which is a great business strategy since it is linking its products to people’s aspirations and passions. For example, Coke did an advertisement that was linked to Soccer (a great African obsession).
These great advertising strategies have helped Coke become an “enduring” Symbol of Africa and its number one brand. They also prevented Coke’s rival, Pepsi, from gaining any market share in South Africa at all. 10. 3 OPERATION IN CHINA: The Coca-Cola Company has been refreshing China for eight decades. We opened our first bottling plants in Tianjin and Shanghai in 1927, and by 1948, Shanghai was the first market outside of the United States to post annual sales of more than one million cases of Coca-Cola®.
When The Coca-Cola Company re-entered China in 1979, it was the first international consumer company to grasp the opportunities offered by the open-door policy. Since opening our Beijing bottling plant in 1981, the Coca-Cola system has spread across the country by way of our 35 bottling plants. Today, The Coca-Cola Company is proud to be China’s leading beverage manufacturer. In 2004, Coca-Cola China celebrated an incredible manufacturing milestone — the production of its 100 billionth bottle of Coca-Cola Company product. It’s a landmark that highlights the hard work, growth and success of The Coca-Cola
Company in China and underlines our commitment to a strong long-term future here. Coca-Cola China has witnessed double digit growth in recent years as brand Coca-Cola and Sprite® have become the top two sparkling soft drinks in the country. Helping the china economy: Not only does The Coca-Cola Company provide a wide variety of quality beverages to China’s consumers, it also contributes significantly to the local economy. At Coca-Cola China, 100% of the concentrate used is locally produced and over 95% of the raw materials used are sourced locally. 10. OPERATIONS IN SINGAPORE: Singapore is represented by Coca-Cola Singapore which handles marketing, innovation and relationship building aspects of the business. Bottling partner in Singapore is Coca-Cola Singapore Beverages, a fully-owned entity by The Coca-Cola Company which is headquartered in Atlanta, Georgia (USA). The Coca-Cola Company has been refreshing Singapore for almost seven decades. Coca-Cola was first produced and bottled in Singapore by Fraser and Neave under franchise in 1936. Within half a century, Coca-Cola became the most popular soft drink in Singapore.
In late July 1999, Fraser and Neave Limited sold their 75% ownership of F&N Coca-Cola Pte Ltd to The Coca-Cola Company. Today, Coca-Cola Singapore Beverages, a bottling operation fully owned by The Coca-Cola Company continues to serve the Singapore market by producing, marketing and distributing a total beverage portfolio. As a total system together with Coca-Cola Singapore, the Company employs over 600 staff, mostly of who are Singaporeans. 10. 5 OPERATIONS IN PAKISTAN: IN 1950s coca cola started its operation in Pakistan.
In 1996 coca cola took over business itself and build first production plant in Karachi. Now it has 6 production and 11 distribution units in Pakistan. 11. 0 OPERATIONS IN BANGLADESH 10. 1 History: Even before our independence of Bangladesh the Coca-Cola Company has started its operation in Bangladesh. Coca-Cola started its operation under a franchise agreement. In Bangladesh there are two franchisees conducting operation on behalf of Coca-Cola Company. One is Tabani Beverages Company Ltd and the other Abul Monem Ltd. Tabani Beverage was established in 1963 at 257, Tejgaon, Dhaka.
It had a rated capacity of 50 BPM on an acre land area. After independence, in 1972, the plant was handed over to Bangladesh. Freedom fighter welfare trust under the ministry of industry with the increase of gradual market demand in 1985 transferred and newly installed the plant with an increased capacity of 250 BPM at Mirpur on seven acre land area. In 1993 a new plant with 500 BPM capacities was established just beside the previous plant. Tabani beverage used to produces 175 ml, 250 ml, 50 ml and 1000 ml glass bottle. They used to supply Coca-Cola drinks to Dhaka and Rajshahi divisions.
But now due to differences between the two companies on quality issues and Tabani’s inability to increase capacity, Coca Cola finally terminated the contract in 2008. With this new plant, the company would finally be able to remove its dependency on Tabani. Other than Tabani beverage the other franchisee of Coca-Cola Company is Abul Monem company ltd. In 1982 Abul Monem started their operation after they acquired the plant of K. Rahman & Company. In 1987 the company made an aggressive move to expand their market. They installed new H & K bottling line along with and installed capacity of 450 BPM at Comilla.
Furthermore they company established another plant Chittagong. The state of the art bottling plant with an installed capacity 600 BPM is the most modern plant in the country and is equipped with the straight-line-technology from KHS German. Abul Monem produces the PET Bottles, CANS and GLASS Bottles of a newly introduced product. Coca Cola has had presence in Bangladesh since 1965, before the independence. Its initial agreement was with Tabani Beverages under which Coca Cola would sell the liquid concentrate to Tabani who would distribute and market it.
Due to differences between the two companies on quality issues and Tabani’s inability to increase capacity, Coca Cola finally terminated the contract in 2008. With this new plant, the company would finally be able to remove its dependency on Tabani. 10. 2 Plant in Bangladesh Soft drinks brand Coca-Cola announced plans to start its own sales and distribution operations in Bangladesh. The company earlier submitted a proposal to the government for setting up a manufacturing plant in the country. Coca-Cola products have been prepared, packaged and sold in Bangladesh for around 50 years.
But it has been marketing its products through local representatives. Now the company will directly market its flagship products — Coca-Cola, Sprite and Fanta. Coca-Cola was expecting a positive response shortly to its proposal for setting up the plant jointly with the government. The operations will be launched soon in Dhaka and Rajshahi, said a statement of the company. “The launch of our operations in the districts is a reaffirmation of the commitment,” said Debashish Deb, country manager for Coca-Cola Far East Ltd. The latest move is also expected to generate direct and indirect employment for over 2,500 people. The plant will take almost 3 years to be built, and the company will be able to produce its namesake brand Coca-Cola, Fanta, Sprite, juice-based drinks and packaged drinking water. Once started, the output will be in excess of 220 million bottles, worth BDT9 billion ($109 million) a year. 10. 3 Political Influence In Bangladesh hartal is a part of our life. Like all other third world counties we have political problems too. The marketing manager of Coca-Cola Company generally sells Coca-Cola 8,000 cases (1 case = 24 bottles) per day but during hartal time the company faces a great loss as they cannot transport their products to the market.
Other than hartals they seem to have lesser problems regarding the political condition of Bangladesh. 10. 4 Relation with Government Coca-Cola has been in business in Bangladesh for a long time but still today there is no record of the company being in any conflict with the government. Coca-Cola always tries to follow the government rules and regulation and they always pays the government the taxes and tariffs while bringing in their raw materials from their Parent Company. 10. 5Coca-Cola and Bangladeshi Culture Relationship Building Effort:
As the world’s largest bottler of liquid, nonalcoholic refreshment, Coca Cola operate in markets with dramatically different consumer preferences, product delivery systems, economic conditions, and marketplace opportunities. In Bangladesh, Coca-Cola Enterprises meets the needs of local customers and communities with a strong commitment to local, community-based marketing and superior marketplace execution. These concepts, combined with the firms belief in a decentralized operating structure that places responsibility and accountability as close as possible to the customer, clearly distinguishes Coca-Cola Enterprises from other bottlers.
Recently they advertise Coke with SAKIB ALL HASAN and TAMIM IQBUL. Those two are the cricket hero of Bangladesh. By doing this they give the feelings in Bangladeshi people mind that we understand your fashion towards cricket. Building Values Coca Cola is very efficient in building values in different countries. That is why this company is able to operate globally. In Bangladesh they also operate in same method. They believe that, people of Coca-Cola Enterprises are the heart and soul of their business, building relationships with the customers and the consumers in the communities they serve.
By putting people first, Coca-Cola hope to create value for everyone touched with the Company. The Company strive for an atmosphere in which all employees are comfortable being themselves -offering ideas, making suggestions, expressing views, and appreciating our shared and unshared differences- regardless of their age, race, gender, nationality, ethnicity, religion or sexual orientation. For this reason work in this company is a dream of the people. 10. 6 Competitors in Bangladesh Pepsi is a very powerful brand name and is one of the biggest competitors of Coca-Cola.
They compete with Coca-Cola throughout the world and it is no different in Bangladesh. At the current moment RC- Cola is a very big brand name in Bangladesh and is the greatest rival for Coca-Cola in Bangladesh. Mountain Dew is a new brand and is a threat for Coca-Cola. RC beverages with the brand image that Partex holds in this country RC beverage easily became a big competitor for Coca-Cola. RC’s market share is increasing which in not a good sign for Coca-Cola. Mineral water such as Mum, Fresh, ACME also a competitor of Coca-Cola. Different kinds of Juice also compete with soft drinks. 0. 7 Helping Bangladeshi People & Economy: * Giving Employment: The Coca-Cola system in Bangladesh directly employs over 7,000 people including those on contract. The system has created indirect employment for more than 50,000 people in related industries through its vast procurement, supply and distribution system. They strive to ensure that their work environment is safe and inclusive and that there are plentiful opportunities for people in Bangladesh and across the world. * Economic Growth: The beverage industry is a major driver of economic growth.
This means that if one unit of output of beverage is increased, the direct and indirect effect on the economy will be twice of that. In terms of employment, “an extra production of 1000 cases generates an extra employment of 410 man days. ” * Buyer of Agricultural product: Coca-Cola in India is amongst the largest domestic buyers of certain agricultural products. As an industry which has strong backward and forward linkages, operations catalysis growth in demand for products like glass, plastic, refrigeration, transportation, and Industrial and agricultural products. Company’s operations also lead to incremental growth for enterprises engaged in post production activities like merchandising, marketing and sales. In addition, it share best practices and technological advancements with our suppliers, vendors and allied industries which often lead to improvement in the overall standards of quality across industries. * Value on good citizenship: The Coca-Cola Company has always placed high value on good citizenship. Company’s basic proposition entails that our Company’s business should refresh the market; enrich the workplace; protect and preserve the environment; and strengthen the community. Education and Health: The Company leverage their unique strengths to actively support and respond to local needs — be it the need for education, health, water or nutrition. * Disaster Relief: They have used their distribution network for disaster relief, use their marketing prowess to raise awareness on issues such as PET recycling, and our presence in communities to improve access to education and potable water. 12. 0 New Foreign Direct investment As Coca-Cola Company is operating in more than 200 countries in the world, there foreign direct investment is huge.
This Company is investing in other countries by franchising business. There is No doubt that why Coca-Cola has invested this huge amount of money, reasons includes: to increase their sales, to make foot hold in economic blog, to create a brand name, to become the global leader in beverage industry, to take advantage of cheaper wages in the country, special investment privileges such as tax exemptions offered by the country as an incentive to gain tariff-free access to the markets of the country or the region. In this section we will try to focus on some of the recent foreign investment that is made by the Coca-Cola Company.
Emerging markets with the fastest-growing economies seem to hold the golden egg for stock investors looking to maintain stability in their portfolio. Coca-Cola has established itself as a leading contender in overseas markets and has a well thought-out foreign investment plan. Increased demand for consumer goods overseas will result in a solid pay off for patient investors. Coke acknowledges the importance of global direct investment in countries, especially emerging markets that hold a golden future of expansion.
Coca-Cola recently invested $160 million in a production plant in Liaoning, China. Over the next three years, Coke plans to increase its position to $4 billion in an effort to establish a long-term sustainable growth pattern in China. The investment in the 42-acre Liaoning plant will open the door to serving up 5 billion Coke beverages, including Sprite and Minute Maid, annually. Locally the factory will open up job opportunities for 500 people at the plant and a possible 5,000 opportunities in related industries.
Coca-Cola has already invested over $2 billion in India over the last 18 years and is confident about its continued Indian operations growing and influencing that part of the world. Coca-Cola will invest over $20 billion in Africa, Mexico and Russia. Coca-Cola is investing $50 million in Bangladesh to set up its first bottling plant in the country. Bangladesh is an important market for carbonated soft drink makers as it has a population of about 150 million, almost half of that of the U. S. with a low soft drink penetration rate.
Company has invested more than $ 60 million in in Tanzania, Kenya and Uganda last year for launching Minute Maid in Tanzania, Kenya and Uganda last year. The company will also invest $3 billion in the U. S. this year with a greater focus on non-CSD segment. 13. 0 CRITISISM In the first part of the term paper we analyzed the overall strategy of the Coca-Cola Company, which has ensured its success and made it the most well-known brand in the world. However, the situation is not so promising everywhere. The Coca-Cola Company has faced many setbacks during the last years. 3. 1 IN EUROPE: First of all, the Company was shocked by the poison scandal in Europe, due to what part of the production had to be removed from sales. Besides that a group of black employees filed a lawsuit against the Company because of the racial discrimination. In addition to that there is also a range of smaller litigations with the bureaucracy in Europe. To emphasise some problem areas the Company faces, we would like to bring out its current situation in Estonia. The world’s leading brand Coca-Cola is doing poorly in Estonia.
The profit of the Coca-Cola Estonia has decreased continuously during the last two years and at the end of the last fiscal year the profit had turned into a 20 million loss (EEK). This was a 40 million kickback in comparison with the year 1998 . 13. 2 IN INDIA: Coca-Cola’s operations in India have come under intense scrutiny as many communities are experiencing severe water shortages as well as contaminated groundwater and soil that some assert  are a result of Coca-Cola’s bottling operations. A massive movement has emerged across India to hold The Coca-Cola Company accountable for its actions.
The state of Kerala imposed a ban of colas from the state only to be quashed by Coca-Cola; the matter is pending in the Supreme Court. The Plachimada plant in Kerala state, one of Coca-Cola’s largest bottling facilities in India, has remained shut for 17 months now because the village council has refused to renew its license, blaming the company for causing water shortages and pollution. In Sivaganga District of Tamil Nadu state there were several protests and rallies opposing the proposed Coca-Cola bottling plant in fear of water depletion and contamination.
The president of the Gangaikondan panchayat, Mr. V. Kamson died under mysterious circumstances, two days after going back and forth in his resentment against the upcoming Coca-Cola bottling plant in the village. When asked about the conflicting statements, he said: “I am under immense pressure from the public, police and other quarters. So I have issued this statement. Five other Indian states have announced partial bans on the drinks in schools, colleges and hospitals. UNILEVER INTERNATIONAL BUSINESS AND DEVELOPMENT IN RECENT ARENA 14. 0 UNILEVER GLOBAL Background of the Company:
Unilever is an Anglo-Dutch company, with a history of colonial exploitation, on which it has gradually built its capital. Today it owns most of the world’s consumer product brands in food, beverages, cleaning agents and personal care products. Unilever employs more than247,000 people and had worldwide revenue of €48 760 million in 2002. Unilever has two parent companies: Unilever NV in Rotterdam, Netherlands, and Unilever PLC in London, United Kingdom. This arrangement is similar to that of Reed Elsevier, and that of Royal Dutch Shell prior to their unified structure.
Both Unilever companies have the same directors and effectively operate as a single business. The current non-executive Chairman of Unilever N. V. and PLC is Antony Burg mans while Patrick Cescau is Group Chief Executive. Unilever’s major competitors include Nestle and Procter ;amp; Gamble. Key facts: * In 2008 Unilever’s worldwide turnover was €40. 5 billion * They employ 174 000 people in around 100 countries worldwide * Every day, 160 million people choose their brands to feed their families and to clean themselves and their homes. Their strong portfolio of foods, home and personal care brands is trusted by consumers the world over. Among them, the top 25 brands account for over 70% of sales. * In 2008 they invested €927 million in research and development. * They are the global market leader in all the Food categories in which they operate: Savoury and Dressings, Spreads, Weight Management, Tea, and Ice Cream * They are also global market leader in Skin and Deodorants, and have very strong positions in other Home and Personal Care categories. HISTORY OF UNILEVER: Lever Brothers was founded in 1885 by William Hesketh Lever.
Lever established soap factories around the world. In 1917, he began to diversify into foods, acquiring fish, ice cream and canned foods businesses. In the Thirties, Unilever introduced improved technology to the business. The business grew and new ventures were launched in Latin America. The entrepreneurial spirit of the founders and their caring approach to their employees and their communities remain at the heart of Unilever’s business today. Unilever was formed in 1930 when the Dutch margarine company Margarine Unie merged with British soap maker Lever Brothers.
Companies were competing for the same raw materials, both were involved in large-scale marketing of household products and both use dsimilar distribution channels. Between them, they had operations in over 40 countries. Margarine Unie grew through mergers with other margarine companies in the 1920s. In a history that now crosses three centuries, Unilever’s success has been influenced by the major events of the day – economic boom, depression, world wars, changing consumer lifestyles and advances in technology. And throughout they’ve created products that help people get more out of life – cutting the ime spent on household chores, improving nutrition ,enabling people to enjoy food and take care of their homes, their clothes and themselves. Through this timeline you’ll see how UBL brand portfolio has evolved. At the beginning of the 21st century, path to Growth strategy focused us on global high-potential brands and vitality mission is taking us into a new phase of development. More than ever, how brand sare helping people ‘feel good, look good and get more out of life’ – a sentiment close to Lord Leverhulme’s heart over a hundred years ago Timeline19th century:
Although Unilever wasn’t formed until 1930, the companies that joined forces to create the business we know today were already well established before the start of the 20th century. 1900s: Unilever’s founding companies produced products made of oils and fats, principally soap and margarine. At the beginning of the 20th century their expansion nearly outstrips the supply of raw materials. 1910s: Tough economic conditions and the First World War make trading difficult for everyone, so many businesses form trade associations to protect their shared interests. 1920s:
With businesses expanding fast, companies set up negotiations intending to stop others producing the same types of products. But instead they agree to merge – and so Unilever is created. 1930s: Unilever’s first decade is no easy ride: it starts with the Great Depression and ends with the Second World War. But while the business rationalizes operations, it also continues to diversify. 1940s: Unilever’s operations around the world begin to fragment, but the business continues to expand further into the foods market and increase investment in research and development. 1950s:
Business booms as new technology and the European Economic Community lead to rising standards of living in the West, while new markets open up in emerging economies around the globe. 1960s: As the world economy expands so does Unilever and it sets about developing new products, entering new markets and running a highly ambitious acquisition program. 1970s: Hard economic conditions and high inflation make the 70s a tough time for everyone, but things are particularly difficult in the fast-moving consumer goods (FMCG) sector as the big retailers start to flex their muscles. 980s: The business expands into Central and Eastern Europe and further sharpens its focus on fewer product categories, leading to the sale or withdrawal of two-thirds of its brands. 1990s: The business expands into Central and Eastern Europe and further sharpens its focus on fewer product categories, leading to the sale or withdrawal of two-thirds of its brands. The 21st Centuries: The decade starts with the launch of Path to Growth, a five-year strategic plan, and in 2004 further sharpens its focus on the needs of 21stcentury consumers with its Vitality mission. MISSION
Unilever’s mission is to add Vitality to life. They meet everyday needs for nutrition; hygiene and personal care with brands that help people feel good, look good and get more out of life. VISION To make cleanliness a commonplace; to lessen work for women; to foster health and contribute to personal attractiveness, in order that life may be more enjoyable and rewarding for the people who use the products. GOALS The goals of UBL are: * To manufacture high-standard products. * Promoting products to the highest extent * Producing large volume to achieve production cost economies. Enabling quality products to be sold out at obtainable prices. 15. 0 UNILEVER’S CONTRIBUTION Unilever Making a positive contribution to society through their brands, the commercial operations and relationships, their voluntary contributions to the community and through their wider engagement with Bangladeshi society. 72% of the company’s value addition is distributed to the Government of Bangladesh. UBL operations provide employment to over 10000 people. 16. 0 INTERNATIONAL STRATEGIES FOLLOWED BY THE COMPANY 16. 1 Functional Level Strategies:
Unilever Bangladesh Ltd follows different functional level strategies to gain competitive advantages and sustain it in the long run in the matured industries. * They increase their efficiency through exploiting economies of scale and learning effects. For example, 808,720 bars of soaps, 1,023,810 packets of detergent powders,154, 430 toothpaste tubes and sachets,329, 530 bottles and sachets of shampoo, 156,910 tubes, jars, bottles and sachets of creams and lotions, and 35, 000 packets of tea are produced in one day in Bangladesh by Unilever. They adopt flexible manufacturing technologies, upgrade the skills of employees through training and perform research and development function to design products that are easy to manufacture. * They have higher customer responsiveness rate. They carry out extensive research to innovate new products and modify the existing products to better satisfy the consumers. * They continuously innovate products, promotional activities, packaging and distribution. This way they can respond quickly to customer demands. 16. Business-Level Strategies: Unilever’s strategic managers adopt different business level strategies to use the company’s resources and distinctive competencies to gain competitive advantage over its rivals. These are: * They follow cost-leadership strategy as they have intermittent over capacity and the ability to gain economies of scale. This way they can produce cost effective products and yet be profitable. * They also follow differentiation strategy for some products to meet the needs of the consumers in a unique way. They also target different market segments with different products to have broad product line. By product proliferation they reduce the threat of entry and expand the range of products they make to fill a wide variety of niches. 16. 3 Strategy in the Global Environment: Unilever Bangladesh Ltd. is registered under Unilever. As a part of a global company it follows some generalized strategies and principals of Unilever. However, they also modify different strategies based on the national conditions. The different strategies that they follow in the global environment are stated below: As a worldwide famous company and comprising internationally renowned brands gives them unique strengths that allow a company to achieve superior efficiency, quality, innovation, or customer responsiveness. The different policies and strategies Unilever follows and their experience is transferred to Unilever Bangladesh Ltd. * They import the raw materials from the places where it is less costly, thus achieve location economy. * They are locally responsive. They are always ready to improve and modify their products to meet the needs of the local customers. UBL follows a multi domestic strategy where the companies extensively customize both their product offering and marketing strategy to different national conditions. 16. 4 Corporate strategy: UBL carries out the following corporate level strategies: * They involve in short term contracts and competitive bidding for the supply of raw materials . * They have a diversified business. UBL has both related and unrelated diversification. They compete in nine different industries with various products from home care, personal care and even food products.
They have economies of scope as most of the products can share the same manufacturing facilities, inputs and specially the distribution channels. 17. 0 ENVIRONMENTAL ANALYSIS Unilever Making a positive contribution to society through their brands, the commercial operations and relationships, their voluntary contributions to the community and through their wider engagement with Bangladeshi society. 72% of the company’s value addition is distributed to the Government of Bangladesh. UBL operations provide employment to over 10000 people. 18. 0 LINKING CULTURE TO STRATEGY Unilever’s cultural and leadership practices began in 2001.
In 2002, in order to test the behavioral profile of Russian management and to better interpret, examine, and enrich the GLOBE results. One of such areas was high scores on Collectivism. Unilever country HR Director positively assessed the ability of Russian managers and employees to work in teams and to follow group norms, to create space to share achievements widely, and to integrate efforts and to build organizational commitment. Unilever has developed a sophisticated system to exploit this factor and motivate the high loyalty of its Russian managers, sometimes pushing them to sacrifice individual interests.
Environment with high Collectivism helps Unilever to combine innovative efforts within the company and target specific groups in the market. The respondent, however, indicated an unusually high influence of trendsetters within collectivist environment. Unilever expatriate manager indicated low Performance Orientation as the other advantageous cultural attribute for the company. Low score on this dimension reflects the heritage of the previous command system and painful realities of current economic transition. They are difficult to change in the short period of time. However country HR Director underlined that dditional performance-oriented rewards and recognition have enormous impact on personnel, and Unilever have been using these motivators effectively. The expatriate HR Director pointed on Russian cultural disadvantages. One such area was low score on Uncertainty Avoidance. Unilever tried to correct the influence of this factor by providing clear corporate guidelines, and by avoiding bureaucratic practices. Low score on Assertiveness was also considered as significant negative factor. The respondent explained this score referring to conformism and lack of leadership initiative.
He also mentioned that assertive expatriates have stronger voice in the Russian subsidiary. To balance the negative impact of this factor, Unilever designed specific programs encouraging initiative and focused on selecting assertive Russian managers for quick promotion. This interview displayed Unilever’s serious consideration of low Future Orientation and high Power Distance, and their impact on company policies. Per interviewee, low Future Orientation was considered as negative factor, but it provided advantage to Unilever.
The company was trying to be more future-oriented and to make this orientation an advantage over less future-oriented competitors. 19. 0 FACTORS THAT LEAD TO THE GLOBAL SUCCESS OF UNILEVER: The biggest factor that leads to the success of Unilever is its quality of brands. These brands have penetrated well into more than 90 countries of the world. The fact that these products are of high quality and in different local markets is one of the major factors of the company’s success. The following are some of the major regions where the company is providing different products for those specific areas. 9. 1 HOME ;amp; PERSONAL CARE REGIONS * Home ;amp; Personal Care, North America: HPCNA was formed in 1977 by integrating Lever Brothers Company, Chesebrough-Pond’s and Helene Curtis. HPCNA hasmajor business and manufacturing facilities across the US and Canada. * Home ;amp; Personal Care, Europe: HPCE combines 2 businesses: Lever Faberge, operating in Western Europe, and Unipath,operating on a global basis. HPCE has its HQ in Waterloo, near Brussels, and operates in16 European countries with 19 factories and 7 development laboratories. Latin America: The Latin America region has well-established operations in all main markets. HPC businesses throughout the region have leading shares in the laundry, personal wash, hair,deodorant, skin and oral categories. * East Asia Pacific: Unilever’s top selling brands in the region are Dove, Sunsilk, Pond’s, Close-UP,Omo/Persil, Rexona, Lynx/Axe, Cornetto, Lipton Yellow Label, Continental. Africa, Middle East ;amp; Turkey. Top brands in the region are Omo, Lipton, Knorr, Royco,Lux, Surf, Sunlight, Dinor, Close-up, Key and Signal. * Central Asia ;amp; China:
Unilever established companies across Central Asia. Top selling brands in this highly populated region including Lux, Wheel, Lifebuoy, Surf, Rin, Omo, Fair;amp;Lovely,Sunsilk, Hazeline, Close-up, Zhonghua and Pepsodent. In foods, Lipton, Brooke Bondand Walls are the best selling brands. 19. 2 UNILEVER BESTFOODS REGIONS Unilever Bestfoods, North America: Unilever Bestfoods, North America combines the Lipton and Bestfoods business of boththe United States and Canada. The group provides consumers with a vast range of products in categories such as tea, salad dressings and margarine and spreads.
Unilever Bestfoods, North America is headquartered in Englewood Cliffs, New Jersey. * Unilever Bestfoods, Europe: Unilever Bestfoods Europe, headquartered in Rotterdam, stretches right across thecontinent incorporating countries from both western and eastern Europe. Unilever’s best- performing categories include Spread, Savoury, Dressings and Leaf Tea. Top-selling brands in Europe include Lipton, Knorr, Bertolli, Flora, Becel, and Amore Maille. * Latin America ;amp; Slim. fast worldwide: The Latin America region has recently invested in new food categories, particularlyspreads, tea and tomato products.
In addition, the region is now also the international base for the Slim*Fast nutritional product and healthy snack foods business, acquired inMay 2000 * East Asia Pacific: The EAP region covers both HPC, and Food Brands. EAP has its regional office inSingapore. Top-selling brands include Dove, Sunsilk, Pond’s, Close-UP, Omo/Persil,Rexona, Lynx/Axe, Cornetto, Lipton Yellow Label, Continental. * Africa, Middle East ;amp; Turkey This region covers both HPC, and Food Brands. Top-selling brands include Omo, Lipton,Knorr, Royco, Lux, Surf, Sunlight, Dinor, Close-up, Key and Signal. Central Asia ;amp; China: The CAC region covers both HPC, and Food Brands. Unilever established companiesacross Central Asia.
Top selling brands in this highly populated region including Lux,Wheel, Lifebuoy, Surf, Rin, Omo, Fair;amp;Lovely, Sunsilk, Hazeline, Close-up, Zhonghuaand Pepsodent. In foods, Lipton, Brooke Bond and Walls are the best selling brands. * Foodservice: Foodservice is a global business concerned with food consumed outside the home – inhospitals, schools, at fast-food restaurants, in work canteens or even from vendingmachines. 0. 0 MAKING THEMSELVES SOCIALLY RESPONSIBLE Unilever considers itself socially responsible for helping out communities throughout the world. They provide “The Nelson Mandela Scholarship”, help and aid provided in different hospitals of different countries including Shaukat Khanam Memorial Cancer Hospital. Helping out in the Tsunami affected areas and distributing different products of Unilever to the affecter’s has also been one of the major steps Unilever took to helphumanity. 21. 0 GLOBAL BRANDS THAT MEET LOCAL NEEDS:
Unilever’s biggest brands have international appeal because they meet a need or fulfill a desire that people share, no matter where they live. Two of its biggest brands, Dove and Knorr 1) Knorr has the expertly tailoring recipes and ingredients for local tastes and making products that fit into people’s lives. 2) Dove delivers real benefit and satisfaction for millions of people around the world, both functionally and emotionally. 22. 0 OPERATION STRATEGY IN DIFFERENT COUNTRIES 22. 1 CHINA: Inspite of major difficulties, Unilever was committed to building and sustaining a successful business in China.
The company therefore adopted several measures like enhanced research and development, modern management systems and large scale organizational restructuring to anticipate and integrate the needs and aspirations of the Chinese customers into its growth plan. In the mid 1980s and 1990s, the large number of joint ventures entered by the company failed to earn profits for the multinational and also proved unsuccessful in integrating Unilever to mainstream Chinese economy. Therefore, in 1999, the company entered into large scale consolidation and integrated its various units under one holding company.
Special localized strategies like hiring of local employees, setting up an R;amp;D unit, and planning for stock market listing were initiated to strengthen the company’s position in China. Unilever China responded to the complex needs of the country’s consumers by developing a portfolio of brands-both local and global, and incorporated traditional Chinese sciences with technological enhancements. The company aimed to identify itself as the brand that was quality conscious and consistently endeavored to meet local needs and tastes.
Global brands-Dove, Lux, Ponds, Lipton-promised international expertise in their formulation and development but had local professionals to manage them to ease communication between the company and its customers. Similarly, local brands such as Hazeline and Lao Cai soy sauce benefited from Unilever’s extensive knowledge and resources, without losing their local character. Thus, Unilever China endeavored to balance global and local needs by developing solutions that satisfied the demands of its target consumer segment. 2. 2 UNILEVER PHILIPPINE: The campaign to conserve the environment continues to get stronger, especially with the help of top organizations that take the advocacy to heart by implementing concrete, replicable measures. In the business sector, Unilever Philippines has been at the forefront of environmental campaigns, working with other groups to create a lasting “green” impact. In the recent Earth Day celebration, the multinational corporation’s Philippine office was recognized for its green projects.
At the first Zero Basura Olympics—a competition that showcased the best “green” practices—it was one of two companies declared Grandmaster awardees. It was also declared the Green Technology Champion. The recognition came in light of Unilever’s pioneering effort of having shredded plastic packaging recycled into bricks and pavers that help build community homes. “Being a global business means recognizing Unilever’s bigger role in caring for the environment. This is something all of us in Unilever will not compromise,” said Ali Gokcelik, vice president for Supply Chain, Unilever Philippines. Unilever aims to bring vitality to communities with (Unilever’s) products and services…so the environmental agenda is a priority all the time… Unilever commit to ensure that Unilever’s operations do not pollute and (that Unilever’s operations) encourage others in the community to do the same. ” The Zero Basura Olympics aims to inspire more organizations to implement comprehensive programs that will positively impact the environment. It also aims to showcase such efforts so that the public may be aware of greener alternatives and help them make greener decisions.
Following the declaration of winners for the business sector, the organizers will confer awards on local governments and NGOs. The Zero Basura Olympics is a project of the Philippine Business for Social Progress, Philippine Business for the Environment, Earth Day Network Philippines ,Pollution Control Association of the Philippines, Department of Environment and Natural Resources, National Solid Waste Management Commission. The award affirms Unilever’s commitment to caring for the environment through comprehensive, long-range and sustained efforts.
Apart from the plastic sachet project, the company has been showcasing its concern for nature through long-standing multi-sectoral partnerships in various water initiatives . Every contribution is vital in the fight against climate change—this is the idea behind the 10 Million Movement (10MM) which Unilever supports. The advocacy hopes to encourage everyone— individuals and groups alike—to commit to doing something for the environment and register it online. “Unilever really feel that Unilever are running out of time. Unilever cannot be waiting for one project to be fully successful before you launch the other.
The idea is to have a layering of projects which will hopefully address most of these environmental concerns,” said Chito Macapagal, vice president for Corporate Affairs of Unilever Philippines. “Filipinos working together can actually make a difference and all Unilever need is to focus on doing a few key things in a collective manner, regularly. That’s what the 10MM stands for. 22. 3 UNILEVER PAKISTAN: At business level Lever Brothers Pakistan Limited is adopting a very unique and interesting set of strategies. First and foremost strategy they want to follow is the cost leadership.
They wanted to control cost as much as possible and want to reduce cost by every mean. First cost efficiency is achieved through outsourcing operations and stop producing themselves and go for cost efficient subcontracting. Second they want to achieve cost efficiency through responsive and cost efficient supply chain, want to be in touch with suppliers all the time and for that they have connected themselves with the suppliers and to their suppliers as well to minimize cost related to forecasting now they want better forecasting through computer networks so to get the real time information about the inventory, stock, demand and supply.
They are now reducing the inventory as well as average carrying the inventory of only 3 days and getting closer to the concept of just in time except for those products for which they have to brought in raw materials from far flung areas like tea and moreover routings of logistics as well like air routing or ship routing to curtail the costs other than cost efficiency, they have adopted the strategy of consumer connectivity want to stay closer to consumers rather to operations and want to focus all alternations to consumers through more research and customer profiles and demographics and wants to explore new customers and usage of products. 3. 0 UNILEVER BANGLADESH LIMITED 23. 1 The history Unilever Bangladesh Ltd is one of the world’s most successful fast moving consumer goods manufacturing companies with local manufacturing facilities, reporting to regional business groups for innovation and business results. Lever Brothers Bangladesh Ltd. as a subsidiary of Unilever is leading the home care, personal care and food product market of Bangladesh. On 25th February 1964 the eastern plant of Lever Brothers Pakistan Ltd. was inaugurated at Kalurghat, Chittagong with a soap production capacity of approximately 485 metric tons.
It was a private limited company with55% share held by Unilever and the rest by the Government of Pakistan. After independence the eastern plant was declared abandoned. But on 5th July 1973 it was registered under the name of Lever Brothers Bangladesh Ltd. as a joint venture company of Unilever PLC and the Govt. of Bangladesh with a share arrangement of 60. 75% to Unilever and 39. 25% to the Bangladesh Govt. 23. 2 Unilever today Unilever brands are trusted everywhere and, by listening to the people who buy them, they’ve grown into one of the world’s most successful consumer goods companies.
In fact, 150million times a day, someone somewhere chooses a Unilever product. UBL have a portfolio of brands that are popular across the globe – as well as regional products and local varieties of famous-name goods. This diversity comes from two of their key strengths: Strong roots in local markets and first-hand knowledge of the local culture. World class business expertise applied internationally to serve consumers everywhere. 23. 3 UNILEVER AT A GLANCE Type of business: Fast Moving Consumer Goods Company with local manufacturing facilities, reporting to regional business groups for innovation and business results.
Operations: Home and Personal Care, Foods Constitution: Unilever – 60. 75% shares, Government of Bangladesh – 39. 25% Product categories: Household Care, Fabric Cleaning, Skin Cleansing, Skin Care, Oral Care, Hair Care, Personal Grooming, Tea based Beverages. Brands: Wheel, Lux, Lifebuoy, Fair & Lovely, Pond’s, Close Up,Sunsilk, Taaza, Pepsodent, Clear, Vim, Surf Excel, Rexona, Dove, Vaseline ;amp; Lakme. 23. 4 Helping Bangladesh Manufacturing Facilities: The Company has a Soap Manufacturing factory and a Personal Products Factory located in Chittagong.
Besides these, there is a tea packaging operation in Chittagong and three manufacturing units in Dhaka, which are owned and run by third parties exclusively dedicated to Unilever Bangladesh. This manufacturing plant helps the society by giving higher standard of living of the people on those areas. Creating Employment: Unilever Operations in Bangladesh provide employment to over10,000 people directly and through its dedicated suppliers, distributors and service providers. 99. 5% of UBL employees are locals and they have equal number of Bangladeshis working abroad in other Unilever companies as expatriates.
Higher Growth: Multinational Company helps the countries growth. Gives people ample opportunity to learn efficiency in different kinds of activities. Give Tax: Unilever gives a huge amount of tax to the government. Those tax help the country treasury. Use Resources: Unilever buy our resources. Which increase our revenue of the country. 23. 5 TRADE STRUCTURE OF UNILEVER BANGLADESH LTD The trade structure of outlet is divided in two groups. They are- Modern trade: Modern trades are self service independent stores located in urban areas. It started to emerge since the end of 1999.
This channel is growing very fast in number. The cumulative growth of the trade is 40%. These stores are small in number but developing very quickly. Till to date there are 62 stores operating countrywide. The contribution of this trade is 5. 5% in Dhaka ;amp; 1% countrywide. General trade: The rest of the traditional stores that have been running since the beginning are fall under the category of General trade. If the modern trade is contributing 1%, the rest of the 99%contribution comes from general trade. There are 700000 stores outlets under this category operating countrywide.
The breakdowns are: * There are 700000 outlets. * 135000 are directly covered in urban areas. * 1450000 are directly covered in rural areas. * 150000 coverage through pollydut (local agent). 24. 0 CONCUSION From those above discussion we can say that why those two firms are the giant in the international business. We can also find out the development those two countries have made in global market. They become successful because they always think global and they want made themselves as a brand. They increase their sales and improve their image as well as help other nation to take advantage from them.