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Unilever case study

1. What are the chief elements of Unilever’s diversification strategy? Is Unilever pursuing a multicountry or a global strategy? What aspects of the strategy do you like? What aspects of the strategy are you skeptical about and why?

In September 1999 Unilever announced its intention to focus on fewer, stronger brands to promote faster growth. The company is whittling its brands down to 400 (from 1,600) including familiar brands such as Dove, Lux, Lipton, Magnum and Calvin Klein fragrances.

The concentration on innovation and brand development on a focused portfolio of 400 leading brands is part of Unilever’s latest growth strategy, called ‘The Path to Growth’, designed to accelerate top line growth and step up the rate of margin improvement in five years time. In February 2000 the company announced a series of linked initiatives (organizational changes, restructuring) to align the entire organization behind these growth ambitions.

http://www.corporatewatch.org./unilever

2. Did Unilever pay too much to acquire Slim Fast? Is there any reason to believe that Slim Fast might be a better performer as part of Unilever than it would be as a standalone enterprise?

Explain. Is Slim Fast a good strategic fit—there are


Since the Best Foods acquisition, the unit has been winnowing brands in line with parent Unilever's plan to narrow its roster of 1,600 brands to 400. The food division has divested nine brands so far, including Gorton's seafood and Entenmann's baked goods. Mazola oil is on the block, and the fates of another six brands-including Skippy peanut butter, Lawry's spices and marinades, and Promise, Imperial, Take Control and Brummel & Brown spreads-are being evaluated. The goal is to cut the Unilever Best foods North America lineup to a maximum of 12 brands, from 26.

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Approximate Word count = 1294
Approximate Pages = 5 (250 words per page double spaced)


  

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