12295 crore and net profit of 1855 crore in 2006 There are over 15000 employees

12295 crore and net profit of 1855 crore in 2006

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India with total sales of Rs.12,295 crore and net profit of 1855 crore in 2006. There are over 15000 employees, including more than 1300 managers. The present corporate strategy of HUL is to focus on core businesses. These core businesses are in home and personal care and food. There are 20 different consumer categories in these two businesses. For instance, home and personal care is made up of personal wash, laundry, skin care, hair, oral care, deodorants, color cosmetics and ayurvedic personal and health care, while food businesses have tea, coffee, ice creams and processed food brand. Apart from the two product divisions, there are separate departments for specialty exports and new ventures. Strategic management at HUL is the responsibility of the board of directors headed by a chairman. There are five independent and five whole-time directors. The operational management is looked after by a management committee comprising the Vice Chairman, CEO and managing director and executive directors of the two business divisions and functional areas. The divisions have a lot of autonomy with dedicated assets and resources. A divisional committee having the executive director and heads of functions of sales, commercial and manufacturing looks after the business level decision- making. The functional-level management is the 8
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M.B.A. (Sem. – III) Strategic Management responsibility of the functional head. For instance, a marketing manager has a team of brand managers looking after the individual brands. Besides the decentralized divisional structure, HUL has centralized some functions such as finance, human resource management, research, technology, information technology and corporate and legal affairs. Unilever globally and HUL nationally, operate in the highly competitive FMCG products are finicky: it’s difficult to create customers and much more difficult to retain them. Price is often the central concern in a consumer purchase decision requiring producers to be on continual guard against cost increases. Sales and distribution are critical functions organizationally. HUL operates in such a milieu. It has strong competitors such as the multinationals Proctor & Gamble, Nivea or L’Oreal and formidable local companies such as, Amul, Nirma or the Tata FMCG companies to contend with. Rivals have copied HUL’s strategies and tactics, especially in the area of marketing and distribution. Its innovations such as new style packaging or distribution through women entrepreneurs are much valued but also copied relentlessly, hurting its competitive advantage. HUL is identified closely with India. There is a ring of truth to its vision statement: ‘to earn the love and respect of India by making a real difference to every Indian`. It has an impeccable record in corporate social responsibility. There is an element of nostalgia associated with brands like Lifebuoy (introduced in 1895) and Dalda (I937) for senior citizens in India.
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  • Fall '14
  • Ravi Prasad
  • HUL

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