Introducing Unilever

No matter who you are, or where in the world you are, the chances are that our products are a familiar part of your daily routine. Every day, around the world, people reach for Unilever products.

Unilever today

Our brands are trusted everywhere and, by listening to the people who buy them, we've grown into one of the world's most successful consumer goods companies. In fact, 150 million times a day, someone somewhere chooses a Unilever product.

Look in your fridge, or on the bathroom shelf, and you're bound to see one of our well-known brands. We create, market and distribute the products that people choose to feed their families and keep themselves and their homes clean and fresh. 

People's lives are changing fast. As the way we all live and work evolves, our needs and tastes change too. At Unilever we aim to help people in their daily lives. So we keep developing new products, improving tried and tested brands and promoting better, more efficient ways of working.

We 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 our 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.                    

Focusing on performance and productivity, we encourage our people to develop new ideas and put fresh approaches into practice. Hand in hand with this is a strong sense of responsibility to the communities we serve. We don't only measure success in financial terms; how we achieve results is important too. We work hard to conduct our business with integrity - respecting our employees, our consumers and the environment around us.

Unilever is one of the world's leading suppliers of fast-moving consumer goods. Here are some recent highlights from our three global divisions - Foods, home care and personal care.

Foods:-

The acquisition of Bestfoods in 2000 brought us leadership in the culinary category. Knorr is now our biggest brand, with €2.3 billion sales in over 100 countries and a product range covering soups, bouillons, sauces, noodles and complete meals.

We are the number one producer of frozen foods in Europe, under the Findus brand in Italy, Birds Eye in the UK and Iglo in other European countries.

We are the category leader in margarine and spreads in most European countries and North America, with brands such as Becel (the Netherlands), Flora (UK) and Take Control (US). We have met consumer demand for healthy foods by launching pro.active, a spread which contains ingredients that can help reduce cholesterol levels.

In the branded olive oil category we are a leader, the most important brand being Bertolli. Appealing to consumers' taste for Mediterranean food, we have launched Bertolli pasta sauces and dressings.

We are the world's leading ice cream producer, with brands such as Algida and Wall's in Europe, and Ben & Jerry's in the United States. Innovations such as Magnum snack-sizes and Cornetto miniature and multi-packs have sparked progress.

We are the largest seller of packet tea in the world through our Lipton and Brooke Bond brands.                    

Home & personal care:-

We lead the home care market in much of the world, which includes cleansing and hygiene products.

Many of our home care products are market leaders including Brilhante, Cif, Comfort, Domestos, Omo, Skip and Snuggle.

Within the personal care market, we are global leaders in products for skin cleansing, deodorants and antiperspirants.

Our global core brands in the personal care market are Axe, Dove, Lux, Pond's, Rexona and Sunsilk.

HISTORY

Unilever was formed in 1930 when the Dutch Margarine Company Margarine Uni 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 used similar distribution

channels. Between them, they had operations in over 40 countries.

Margarine Unie grew through mergers with other margarine companies in the 1920s. 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 NV and Unilever PLC are the parent companies of what is today one of the largest

consumer goods businesses in the world. Since 1930, the two companies have operated as one, linked

by a series of agreements and shareholders that participate in the prosperity of the whole business.

Unilever's corporate centers are London and Rotterdam.

Margarine Uni and Lever is taken for Unilever. Its head quarter was established at

England and Rotterdam. Unilever has 500 operating companies in 100 countries. It has 0.3 million

employees and turnover of sales in 23000 million pounds. The global business proportion is 60%

in Europe, 20% in North America and 20% in Rest of the world. An identical board of directors

controls the activities of subsidiary companies throughout the world.

Unilever Pakistan history

In the world of consumer products Unilever Pakistan has created an indelible name for itself with brands such as Lifebuoy, Lux, Surf and Walls.

Unilever Pakistan Limited needs no introduction 

By far the largest consumer products company in Pakistan, UPL is a part of the consumer products giant Unilever. 

UPL was established some fifty years ago in the then newly created Pakistan. The town of Rahim Yar

Khan was the site chosen for setting up a vegetable oil factory in 1958 and that is where the first UPL

manufacturing facility developed. 

Now a force to be reckoned with

Today, Unilever Pakistan is a force to reckon with. Its contribution to Pakistan's economic development cannot be overestimated. Now operating six factories at different locations around the country, the company contributes a significant proportion of the country's taxes. It employs a large number of local managers and workers. It provides a pool of well-trained and highly motivated manpower to other segments and has introduced new and innovative technologies into the country. 

The UPL Head Office was shifted to Karachi from the Rahim Yar Khan site in the mid 60's. By this time the once dusty and sleepy village was the hub of activities for UPL. A residential estate situated near the factory is the home of UPL employees at Rahim Yar Khan.

Introduction of Rahim Yar Khan FactoryRahim Yar Khan Factory is situated on Shahbaz Pur road Rahim Yar Khan (Punjab). It is the

largest production unit of Unilever in Pakistan. At the time of establishment of Unilever Pakistan the

head office of the company was in Rahim Yar Khan. Subsequently in 1966 the head office was shifted

to Karachi. Production of ghee was started in R.F but now ghee is not produced in R.F due to certain

reasons.

DEPARTMENTS IN R.F:-

The company has employed approximately 525 persons including management & non-management

staff. Following departments are in operation in R.F Main Office.

Buying department

Human Resource Department

Planning department

Costing department

Finance department

Payment department

Cash office

Wages & salaries department

Business Support Department

Administration department

Unilever Pakistan Ltd is a wholly owned subsidiary of Unilever Overseas Holding, UK,

Unilever PLC (a company incorporated in the United Kingdom)

The company is incorporated in Pakistan and listed on the Karachi, Lahore and Islamabad stock

exchanges. It manufactures and markets foods, beverages, detergents and personal products.

AUDIT COMMITTEE

Mr. Fatehali W. VellaniChairman

Mr. Zaffar A. KhanMember

Mr. Omar H. KarimMember

Mr. Ayub VohraHead of Internal Audit & Secretary

AUDITORS

A.F. Ferguson & Co.

State Life Building No. 1-C

I.I. Chundrigar Road

Karachi.

REGISTERED OFFICE

Avari Plaza

Fatima Jinnah Road

Karachi - 75530

Telephones: +92-21-5660062-9

Facsimile: +92-21-5681705

SHARE REGISTRATION OFFICE

C/o. Ferguson Associates (Pvt.) Ltd.

State Life Building No. 1-A

I.I. Chundrigar Road

Karachi.

WEBSITE ADDRESS

www.unileverpakistan.com.pk

COMPANY BANKS

Abn –Amro bank Karachi

Grindllays bank ltd. Karachi

Grindllays bank ltd. Lahore

Muslim commercial bank Rahim Yar Khan

National bank of Pakistan ltd. Rahim Yar Khan

PRODUCTION UNITS OF UNILEVER IN PAKISTAN

UNITS LOCATION

HPC Factory Rahim Yar Khan (RF)

Tea Factory Karachi (KTF)

Tea Factory Khanewal (KHWTF)

Ice cream Factory Lahore (ICF)

Unilever Pakistan Best foods Limited Faisalabad (UPFL)

BRANCH OFFICE S

Ice cream metropole Lahore

Consumer interaction center Karachi (Lever Raabta)

Branch office shafic court Karachi

Branch office Islamabad

Branch office Lahore

Branch office Multan

Organizational Chart Of HPC FactoryRahim Yar Khan

Fundamentals of Organization

We often begin to describe a firms Structure by looking at its Organization Chart.Organizational Chart:-

The reporting structure and division of labor in an organization is called Organizational Chart. The above chart provides a picture of reporting structure (who reports to whom) and the various activities that are carried out by different individuals. Note that organizational chart give various kinds of information that are conveyed in a very simple way:

1. The boxes represent different work.2. The titles in the boxes show the work perform by each unit.3. Reporting and authority relation ship are indicated by solid lines showing superior-subordinate

connections.

HPC HeadShahab Muhammad Ali

4. Levels of management are indicated by horizontal layers in the chart. All the persons or units

that are of the same ranks and report to same person are on one level. 5. The solid lines are called functional lines and they report to works manager and the doted lines

are called operational lines and they report to their own head. This would be someone in an organization.

There are two fundamental concepts around which organization is structured is differentiation and integration.

Differentiation:-Differentiation is created through division of labor and job specialization. Division of labor

means that the work of the organization is subdivided into smaller task. Various individuals and units through out the organization perform different tasks. e.g. Repair and maintenance department further divided into sub department which are engineering store, area engineer personal wash, area engineer personal product, engg. Planning, projects. They all have assigned different task under the repair and maintenance department. Specialization is a process in which different individuals and units perform different tasks. e.g. The Buying department of unilever has a specific task which purchasing inventory or raw material.

Integration:-The degree to which differentiated work units work together and coordinate their efforts.

As Unilever differentiate their structures, managers must simultaneously consider the issues of integration. All the specialized in Unilever cannot be performed completely independently. Because the Unilever is a larger organization and it has different units, some degree of communication and cooperation must exist among them. Integration and its related concept, coordination, refer to the procedure that link the various part of Unilever to achieve the Unilever overall mission. e.g. the finance department, buying department and marketing department link together to achieve overall mission.

First we will discuss vertical differentiation within Unilever organizational structure. This include issues pertaining to authority within an organization, the board of directors, the chief executive officer and hierarchical levels, as well as issues pertaining to delegation and decentralization.

Vertical Structure:-Vertical structure is also called Reporting structure which tells about the hierarchy of an

organization an chain of command.

This is Hierarchical Levels

Top Level

Middle Level

Lower Level

Unilever top level managers are:

Chairman UPl (Ehsan Maalik) Supply Chain Director(M.Qayser Alam)HPC head(Shahab Mohammad Ali) WM-RF(Shahid Rafique) Service Eng( Fayyaz H. shah) Operation Mgr PP (Irfan bhatti) R&ME (Talha Kidwai) HR Manager (Mohsin Nishat) HPC Controller(Ismail Tahir)

Middle Level managers:

Soap making (Hassan Abbas) Soap Finishing (M.Zaheer)AM Distribution (Sohail A.Malik) AM Stores (M. Nazir)Planners PW & PP (Ashfaq Ahmad, Abdullah Aslam)TPM (Co-ordinator) Environmental Co-ordinator (Abdullah Javed)Safety Co-ordinator (Sohail Zahid) FMO (Dr. Hafeez)Q.A Lab. (M. Idrees)

Lower Level:

Services & Utilities PP FinishingPP Process PW-Soap MakingPW- Finishing Engineering Store Area Engineer PW Area Engineer PPEngg. Planning ProjectsUnilever Estate Admin & SecurityHuman Resource Dept. Estate First Aid CenterFactory Medical Center Business service Dept.Account payableVource/Costing Packaging & Raw Mat.Quality Assurance Buying

Authority in Unilever:-Authority means the legitimate right to make decision and to tell other people what to do.

In Unilever authority resides in positions rather than in people. Thus the job of CEO of particular division has the authority over that division, regardless of how many people come and go in that position and who currently holds it .

The Board of Directors:-In Unilever owner are the stockholders. Stockholders elect the BOD to over see the

organization. Board perform at least three major set of duties,1. Selecting, Assessing, Rewarding and perhaps replacing the CEO2. Determining the firms strategic direction and reviewing financial performance3. Assuring ethical, Socially responsible and legal conduct.

The Unilever BOD are Mr. Ehsan A. Malik

Chairman & Chief ExecutiveMr. Peter I. Harvey

CFO & Executive Director

Mr. M. Qaysar AlamExecutive Director

Mr. Syed Babar AliNon-Executive Director

Mr. Fatehali W. VellaniNon-Executive Director

Mr. Omar H. KarimNon-Executive Director

Mr. Zaffar A. KhanNon-Executive Director

Mr. Zarrar HaiderNon-Executive Director

Mr. Syed Hashim Raza ZaidiNon-Executive Director

Mr. Amar NaseerCompany Secretary

Executive directors

Patrick Cescau -  Group Chief Executive Kees van der Graaf - President Europe

Non-Executive directors

Michael Treschow

The Rt. Hon. The Lord Brittan of Spennithorne, QC

Professor Geneviève Berger

Wim Dik

Mr Charles E Golden N. R. Narayana Murthy

Hixonia Nyasulu The Lord Simon of Highbury, CBE

Unilever executive (UEX)

Manvinder Singh (Vindi) Banga - President Foods Harish Manwani - President, Asia Africa

Sandy Ogg - Chief HR Officer Michael B. Polk - President, Americas

Chief Executive Officer:-The authority officially vested in the board of directors is assigned to CEO, who occupies the

top of the organizational pyramid. CEO is personally accountable to the board and to the owners for the organization performance.

Unilever Span of Control

A span of control is the number of people who report to one manager in a hierarchy. The more people under the control of one manager - the wider the span of control. Less means a narrower span of control.

Unilever has the Narrow span of control but now they are moving to wide span of control by reducing their layers. It is tall organization that has many reporting level. In this the communication is difficult for employees.

Decentralized or Centralized organization?Decentralized mean an organization in which lower level managers make important decisions.

Centralized mean an organization in which high level executives make most decisions and pass them down to lower levels for implementation. Unilever is a centralized organization because most of its decision makes by top level executives but lower level can also gives their views.

Secondly we will discuss the horizontal Structure including issues of decartelization that create functional, divisional, and matrix organization

Horizontal Structure

It is also called division of labor. As the task of Unilever become increasingly complex, the organization in inevitably must be sub divided that is, departmentalized-into smaller unit’s organization departments. One of the first places this can be scene is in the distinction between line and staff departments. Line departments are those units that deal directly with the organization primary good organization services, they make things, sell things, organization provide customers service. In Unilever buying department, Quality assurance, Packaging & Raw material, Business service department, Admin & security, Factory medical center, Estate First aid center, Human resource department, Unilever estate, Area Eng. Personal product (Shampoo, Lotions), Area Eng. Personal wash(Soap), PW finishing, PP finishing, PW soap finishing, and service and Utilities department are the line department.Staff department means units that support line department. e.g. Services engineer support the service & utilities department.

Buying Department

The word “buying” means purchase of any thing or any merchandise or item. This function is performed by buying department in any organization.

Buying or purchase is one of the major functions of any company of organization. Without it no one organization can run successfully in the field of business. So we may say that buying is the soul of company. Without buying all departments of the company will be failed.

Planning Department

Planning is intellectually demanding process. It requires that we consciously determine courses of action and based our decisions on purpose knowledge and considered estimates.

Before planning we set our goals and reach on a certain decision with the help of knowledge and estimates.

Finance Department Following functions are performed by Financial Accounts Department of RF:

Maintenance of fixed assets records including related reports. Calculation of depreciation, Gross Book value (GBV) and Net Book Value (NBV) Capitalization and other schedules on yearly basis Allocation of manpower cost and depreciation to different location on monthly basis Maintenance of medical expenses, Traveling expenses vouchers and their record up to

management staff

Cost DepartmentThis department provides very useful services to the company and is responsible for costing of

the products. This department does the yield calculations of the followings:

Soapery fatty acids Crude glycerin Refined glycerin Edibles

For the calculation of yield, these elements are taken into consideration:

Storage loss/gain Bleaching loss Packing loss/gain Un-accounted loss

Payment Department

Different department of UPL R.F are working under Commercial Department. Payment Department is one of them. Payment Department is also called APV (Accounts Payable Vouchers). The purpose of this department is to make the arrangements for the payments of the factory liabilities.

APV section is further classified into two sections

APV 1 APV 2

APV1

APV 1 is classified into further three sections:

Packing and materials payment section Local payment section Chemicals and engineering stores payment section

APV 2:

APV 2 makes a payment of wages and salaries for the workers of UPL Rahim Yar Khan Factory.

Human Resource DepartmentThe assets of the organization like machinery. According to the Personnel Department of UPL

R.F., there are things which are common between workers and machinery of the organization. For examples:

Machinery requires repair where as workers required training. Both are used for production purposes. Both require improvement. Both become inefficient if proper attention is not given.

Administration DepartmentUnilever Pakistan Limited R.F. has also an administration department that is controlled by the

personal department. Following functions are performed by the Administration Department:

Arrangements for providing for providing transport facility to management staff. Arrangements for the journey of management & non-management staff. Arrangements of stationery and printing.

Distribution Department

Now a day’s business is extended to a great extent. Markets are widening briskly, so there is a great need to meet the requirements of this large market successfully. There should be such a system of distribution that the supply of products to the markets should be according to the needs; this system should be “sales loss proof”.

UPL has a system, which gives maximum results. Supply of product is monitored in such a way that there are minimum chances of shortage in supply.

Quality Control Department

Quality is the use of techniques and activities to achieve, sustain and improve quality. It involves integrating the following related techniques and activities:

1. Specification of what are needed.2. Design of the product or service to meet the specifications.3. Production or installation to meet the full intent of the specification.4. Inspection to determine conformance to the specification.5. Review of usage to provide information for the revision of specification if needed.6. Utilization of these activities provides the customer with the best product or service at

lowest cost. The aim should be continuous quality improvement.

Material Store Department

Material Store is place where raw material is store. There are different function of Material Store and stock maintenance. It is consist of two Hangers and one Perfume and Color Store. Total area of each hanger is 256 x 107feet.

The Divisional OrganizationDepartmentalization that groups units around products, customer’s organization geographic

regions.Unilever has groups its units around product, customer, and geographic regions.

Product Division:-How Unilever follow the product division? Because in product division

1. Information needs are managed more easily.2. People have a full-time commitment to a particular product line.3. Task responsibilities are clear.4. People receive broader training.

Customer & Geographic Division:-Unilever made customer based product & they also make geographic division. They make

customer division. Unilever made soap and now they also make toilet soap. By geographic division Unilever is in south asia, Europe, the fast east, west Europe, south America.

The Functional Organization:-

It means that departmentalization which is the basis by which the jobs are grouped together. In

this case there is a unity of command which means’s that all the subordinate would report to one head. In Unilever the job of production department, HRM dept., and marketing dept., are grouped together.

The Matrix Organization

A matrix organization is a hybrid form of organization in which functional and divisional form overlap.Unilever is matrix organization and composed of dual reporting relationship in which some manager’s report to two superiors-a functional manager and a divisional manager.

A Matrix Organization is an organization structure that is matrix-shaped. It has 2 axes, rather than a pyramid-shape. The vertical hierarchy is overlaid by some form of lateral authority, influence, or communication and there are dual lines of authority, responsibility, and accountability that violate the traditional "one-boss" or "Unity of Command" (Fayol) principle of management.

Finance dept.Production

dept.HRM dept. Marketing dept.

Functional Organization

Supply Chain Director

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Planners PW & PP

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EnvironmentalCo-coordinator

SafetyCo-coordinator

AMDistributor

AM Raw Material Stores

Organizational Integration

In this there are several coordination methods in Unilever which are given belowCoordination by Standardization:-

Establishing common rules and procedures that apply uniformly to every one. Standardization means actions and integrates various units by regulating what to do. It consists of standard operating procedure and formalization. In Unilever every person knows what he do and apply standard operating procedure.

Coordination by plan:-Interdependent units are required to meet deadlines and objectives that contribute to a common

goal. e.g. Finance, Buying in marketing department are interdependent units and they have dead lines and objectives that contribute to a common goals. In Unilever the Coordination between interdependent units are by plan.

Coordination by Mutual Adjustment:-Units interact with one another to make a accommodations in order to achieve flexible

coordination. There is a coordination by mutual adjustment between different department in Unilever.

Coordination & Communication:-Unilever has a strong communication between its different departments and they coordinate

through it. They have to ability to handle more information

CONCLUSION

T he Islamia University of Bahawalpur has provided us with the

opportunity to visit Unilever Pakistan Ltd, which is one of the largest multi domestic and multinational company working in Pakistan. we feel proud to represent our department in this MNC well-reputed in Pakistan.

we got a lot of experience from Unilever Pakistan Ltd Rahim Yar khan factory. During our visit we came to know that how different activities take place in a work environment, what are there procedures and processes and how to interact with people at work. Unilever Pakistan Ltd is on the way of progress. It has been earning a healthy profit with a strong financial position and goodwill in the market. The management is professionally qualified and experienced and well competent.

Unilever produces high quality consumer goods in Pakistan. The demand of the Unilever‘s products is increasing with the passage of time.

VISION OF UNILEVERVISION OF UNILEVER

Touching Hearts Touching Hearts

Changing Lives Changing Lives

MISSION STATEMENTMISSION STATEMENT

Our mission is to add Vitality to life. We meet everyday needs for nutrition, hygiene and personal care with brands that help people

Look good, feel good

And get more out of life.

Perfection is not attainable,

But if we chase perfection,

We can catch excellence

(Vince Lambarto)