Unilever Org Structure

Unilever has undergone various organizational structure changes since its inception. It initially started with a decentralized structure from 1950- 1980. Decentralization gave the company an advantage as they had the flexibility to change according to local consumer demand. They appointed managers who were local to that place so that the company had a good understanding of local market. The local managers were responsible for everything from marketing, sales and distribution.

But Decentralization led Unilever to not have any common corporate culture or vision. It also led them to duplication of products, resulting in high costs. Moreover, they had less focus on globalization and couldn’t create global brands. In 1990 the company changed its structure based on business groups. The company became more centralized. They streamlined their operations so that they could get the products onto the market quickly. This structure too failed as they were no coordination between head office, regional and national groups.

The decisions were made by regional heads and local managers had no power to change them to suit to local markets. Finding a right balance between centralization and decentralization was their major problem. In 1999, Unilever decided to adopt a “Path to Growth Strategy”. They realized that they had a broad range of products and never had any focus on ones in which they were one among the top in market. So they switched to a structure based on global product divisions. Unilever was split into two separate global units namely Food and HPC headed by two executive directors.

But they still had problems as the company had 2 separate chairmens in different countries which led them to operate as separate entities (Unilever NV and Unilever PLC. ). In 2005 as part of “one Unilever” Programme they scrapped this management structure by naming Patrick Cescau as single chief executive of Unilever. The company started to operate with matrix structure with multiple lines of authority based on product, regional and functional divisions. The company currently has 4 product divisions namely Foods, Personal Care, Home care and Refreshments headed by 4 different people.

They have got 8 leads based on regional splits heading North America, Europe, North Asia, South East Asia and Australasia, South Asia, Latin America, Africa (Central Africa and South Africa) and Russia/North Africa and Middle East. In terms of functional division there is a finance, marketing, R&D and HR departments. This simplified management structure has given all the Unilever top managements greater accountability and better leadership. It has helped them to eliminate duplication, take faster decisions, target on specific products and capture the global and local market.

Related Questions

on Unilever Org Structure

What is Unilever Organisational structure?

Unilever's organizational structure is a matrix structure, which combines elements of both a functional and a divisional structure. This structure allows the company to have a decentralized decision-making process while still maintaining a centralized structure. Unilever's organizational structure is divided into four main divisions: Foods, Refreshment, Home Care, and Personal Care. Each division is further divided into regional and local teams, allowing for a more localized approach to decision-making.

What are the departments in Unilever company?

Unilever is a multinational consumer goods company with a wide range of products and services. The company is divided into four main departments: Home Care, Personal Care, Foods, and Refreshment. Each department is responsible for the production and distribution of different products and services.

What is Unilever business model?

Unilever's business model is based on a portfolio of strong brands that offer quality products and services to meet the everyday needs of consumers. The company focuses on creating value through innovation, brand building, and cost efficiency. Unilever also has a strong commitment to sustainability, which is reflected in its operations and products.

Is Unilever centralized or decentralized?

Unilever is a decentralized organization, meaning that decision-making authority is distributed among different levels of the organization. This allows for more localized decision-making and greater autonomy for individual business units. However, Unilever does have a centralized corporate structure, with a global headquarters that oversees the company's overall strategy and operations.

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Unilever Org Structure. (2016, Aug 07). Retrieved from https://phdessay.com/unilever-org-structure/

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