Unilever Group PLC
“Unilever is one of the world’s leading suppliers of fast moving consumer goods. We aim to meet everyday consumer needs for nutrition, hygiene and personal care with brands and services that help people to feel good, look good and get more out of life” (Unilever, Director's Report, p. 17). It generates revenues through four main business segments: savoury, dressings and spreads, personal care, ice cream and beverages and home care.
Vision & Mission Statement
A company´s mission can be defined as “the overriding purpose in line with the values or expectations of stakeholders” (Johnson & Scholes, 2005, p.13).
“We work to create a better future every day. We help people feel good, look good and get more out of life with brands and services that are good for them and good for others. We will inspire people to take small everyday actions that can add up to a big difference for the world. We will develop new ways of doing business with the aim of doubling the size of our company while reducing our environmental impact“.
Unilever's legal business form
Commonly, there are three types of business organisations; sole traders, partnerships, limited companies. Unilever is a “Public Limited Company” (PLC) which means that it is permitted to advertise its shares to the public on the stock exchange market and which is registered as a public limited company (Companies Act 2006, 58 (1)). “Public companies are aimed at securing investment from the general public” (Lowry et al., 2006, p.9). A public company cannot commence business or lend any capital unless it has been issued an “S 117 Certificate” and has a registered office (Companies Act 2006, 86). Such a certificate is issued when the Registrar identified that the nominal value of the company's share capital is not less than the authorised £50,000 (Companies Act 2006, 761 (1)). A public company is either limited by shares or by guarantee with a share capital and must have at least 2 directors (Companies Act 2006, 154).
Major Duties of a corporation
Since Unilever is a PLC it has major duties to fulfil. It must publish a prospectus giving a detailed and accurate description of the company’s plans. Consequently, Unilever's directors have the duty to prepare a directors' report for every financial year of the company, to keep their accounting books and records, (Companies Act 2006, 386) prepare annual accounts and hold an Annual General Meeting.
Table of Contents
1. Introduction
1.1 Company Background – Unilever Group PLC
2. Part I – Legal Form
2.1 Unilever's legal business form
2.1.1 Major Duties of a corporation
2.1.2 Corporate Crime
2.1.3 Ethics and Finance
2.2 Corporate Governance
2.3 Unilever's Stakeholders
2.3.1 Responsibilities towards Stakeholders
3. Part II - Financial Analysis
3.1 Consolidated Profit and Loss Account
3.2 Horizontal Analysis
3.2.1 Turnover
3.2.2 Operating Costs
3.2.3 Operating Profit
3.2.4 Operating Profit Margin
3.1.1 Financial Ratios – Profitability
3.1.2 Efficiency
3.1.3 Liquidity
3.1.4 Gearing
4. Part III - Business Strategy
4.1 Strategic Analysis
4.2 Value Chain
4.3 Budgetary Control
4.4 Balanced Scorecard
4.5 Conclusion
Objective & Themes
This report aims to analyze Unilever's legal business structure and its financial performance in 2009 to provide strategic recommendations that enhance long-term business sustainability and shareholder value.
- Legal structure and corporate governance frameworks
- Comprehensive financial performance assessment and benchmarking
- Stakeholder interaction and ethical responsibility management
- Application of strategic business tools like the Balanced Scorecard
- Budgetary control and optimization of operating costs
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2.1.1 Major Duties of a corporation
Since Unilever is a PLC it has major duties to fulfil. It must publish a prospectus giving a detailed and accurate description of the company’s plans. Consequently, Unilever's directors have the duty to prepare a directors' report for every financial year of the company, to keep their accounting books and records, (Companies Act 2006, 386) prepare annual accounts and hold an Annual General Meeting since the public will expect to be informed of developments within the company. Unilever must promote the business' success by acting in the benefit of its owners (Companies Act 2006, 172) and to provide information about key decisions taken by the company and its officers as well as publish annual, mid-year, or quarterly results which aim at keeping the shareholders informed about any details that are likely to have an impact on the company's share price.
The directors of the company must prepare a consolidated report which outlines its undertakings. Unilever is accountable to its stakeholders and must be aware at any point that the public performance and reputation of its operations can have an impact, not only on future requests for finance, but as well on customer loyalty and employees' work motivation. Therefore, the leader and its management team of a public company is required to balance the business' needs with the expectations of the financial markets (Keenan, D., Bisacre,J., 2005, p.9). It is a director's duty to act in accordance with the company's constitution (Companies Act 2006, 171).
Summary of Chapters
1. Introduction: Provides background on the Unilever Group PLC, its business segments, and its core vision and mission statement regarding consumer needs.
2. Part I – Legal Form: Explores Unilever's legal standing as a Public Limited Company, detailing corporate duties, governance frameworks, and the importance of stakeholder management.
3. Part II - Financial Analysis: Evaluates the financial health of the company through horizontal analysis, profitability ratios, and efficiency metrics, benchmarked against Nestlé SA.
4. Part III - Business Strategy: Offers strategic implementation methods, including SWOT analysis, value chain optimization, budgetary control, and the Balanced Scorecard framework.
Keywords
Unilever, Public Limited Company, Corporate Governance, Stakeholder Theory, Financial Analysis, Profitability Ratios, Strategic Management, Balanced Scorecard, Budgetary Control, Turnover, Operating Profit, Corporate Social Responsibility, Value Chain, Market Penetration, Business Strategy
Frequently Asked Questions
What is the primary focus of this report?
The report provides a financial and strategic assessment of Unilever, focusing on its legal business form, financial performance, and effective stakeholder management.
What are the central themes discussed in the work?
The core themes include corporate legal compliance, financial ratio analysis, strategic planning, and the implementation of business frameworks like the Balanced Scorecard.
What is the ultimate goal of the research?
The goal is to analyze Unilever's 2009 performance to provide actionable recommendations for improving profitability and maintaining a competitive advantage.
Which scientific methods are applied?
The study utilizes financial ratio analysis, SWOT analysis, value chain analysis, Mendelow’s Framework for stakeholder mapping, and the Balanced Scorecard methodology.
What content is covered in the main section of the paper?
The main part covers the legal obligations of a PLC, detailed financial assessments including liquidity and gearing, and strategic recommendations for market expansion and cost control.
Which keywords best describe this study?
The study is characterized by terms such as Corporate Governance, Financial Analysis, Strategic Management, Balanced Scorecard, and Stakeholder Theory.
How does Unilever manage its corporate governance?
Unilever employs a corporate governance framework that reconciles conflicting stakeholder interests and ensures that financial results are transparently communicated to investors.
Why is the Balanced Scorecard considered useful in this context?
The Balanced Scorecard is used because it complements quantitative financial data with qualitative operational measures, allowing a comprehensive view of the business performance.
- Arbeit zitieren
- Letizia Zisa (Autor:in), 2010, An analysis of Unilever's legal form, financial performance and business strategy, München, GRIN Verlag, https://www.hausarbeiten.de/document/171351
