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Bindu.Y.V. MBAK-1104.
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Internal Environmen t
External Environmen t
INTRODUCTION In 2007, Hindustan Unilever was rated as the most respected company in India for past 25 years by business world.
HUL is the market leader in Indian consumer products with presence in over 20 consumer categories.
It has over 35 brands.
The company has a distribution channel of 6.3 million outlets.
HUL has the largest number brands in the Most Trusted Brand List.
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HISTORY
Formed in 1933 as the Lever Brothers India Limited.
It came into being in 1956 as Hindustan Lever Limited through a merger of Lever Brothers(Hindustan Vanaspati Mfg .Co. Ltd and United Traders Ltd)
The company was renamed in june 2007 to “Hindustan Unilever Limited”.
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MISSION
Hindustan Unilever’s mission is to add vitality to life.
They meet everyday needs for nutrition, hygiene, personal care with brands that help people feel good, look good and get more out of life.
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VISION To earn the love and respect of India, by making a real difference to every Indian.
GOALS: 1. First priority is to be a successful business and investing for growth and balancing shortterm and long-term interests. 2. Caring about consumers, employees and shareholders, business partners and the world in which we live. 3. To succeed requires the highest standards of behaviour from all of us.
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PRODUCT PORTFOLIO
Kwallity Wall’s icecream
Lifebuoy
Lux
Breeze
Liril
Rexona
Hamam
Moti soaps
Lipton tea
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Axe deosprays
Rin
Wheel laundry detergents
Kissan squashes and jams annapurna salt and atta
Pond’s talcs cream
Vaseline body lotion
Fair and lovely cream
Lakme beauty products
Clinic plus
Clinic all clear
Sunsilk shampoo
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COMPETITORS
KRAFT
P&G
ITC
NESTLE
DABUR
LO’REAL
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STRENGTH
R & D and marketing strategy.
Project SHAKTI- creating brand awareness in rural India
Formidable distribution network.
New division called HLL NETWORK.
New sales organisation called ONE HLL
Growth more than FMCG sector.
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WEAKNESS
Market myopia lead to stagnation of business.
Low raw material cost high priced products.
Lacked the ability to call shots and power pricing.
Inability to transform its strategies at the right time.
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OPPORTUNITY
Expansion of horizon outside Asia.
Export is less compared to production.
Diversify its brand in food products.
Large domestic market over a billion population.
Untapped rural market.
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THREATS
Losing market share due to new entrants.
ITC ltd – is one of the biggest threats.
Mimic of brands.
Removal of import restrictions resulting in replacing of domestic brands.
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PEST ANALYSIS A PEST analysis is used to identify the external forces affecting HUL .This is a analysis of HUL’s Political, Economical, Social and Technological environment. A PEST analysis incorporating legal and environmental factors is called a PESTLE analysis.
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POLITICAL FACTORS The first element of a PEST analysis is a study of political factors. Political factors influence organisations in many ways. Political factors can create advantages and opportunities for organisations. Conversely they can place obligations and duties on organisations. Political factors include the following types of instrument: - Legislation such as the minimum wage or anti discrimination laws. - Voluntary codes and practices - Market regulations - Trade agreements, tariffs or restrictions - Tax levies and tax breaks - Type of government regime eg communist, democratic, dictatorship Non conformance with legislative obligations can lead to sanctions such as fines, adverse publicity and imprisonment. Ineffective voluntary codes and practices will often lead to governments introducing legislation to regulate the activities covered by the codes and practices.
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ECONOMIC FACTORS The second element of a PEST analysis involves a study of economic factors. All businesses are affected by national and global economic factors. National and global interest rate and fiscal policy will be set around economic conditions. The climate of the economy dictates how consumers, suppliers and other organizational stakeholders such as suppliers and creditors behave within society. An economy undergoing recession will have high unemployment, low spending power and low stakeholder confidence. Conversely a “booming” or growing economy will have low
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SOCIAL FACTORS The third aspect of PEST focuses its attention on forces within society such as family, friends, colleagues, neighbours and the media. Social forces affect our attitudes, interest s and opinions. These forces shape who we are as people, the way we behave and ultimately what we purchase. For example within the UK peoples attitudes are changing towards their diet and health. As a result the UK is seeing an increase in the number of people joining fitness clubs and a massive growth for the demand of organic food. Products such as Wii Fit attempt to deal with society’s concern, about children’s lack of exercise.
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PRODUCTS OF COMPANY:
Home CareProducts: Wheel, comfort, cif, rin, sunlight, surf excel, vim, domex.
Personal care products: Axe, Ayush, Breeze, Clinic plus, Close up, Hamam, lakme, Dove, Lux Pond's, Rexona and Sunsilk .
Food brands: 3 roses, knoor kissan, annapurna, kwality walls red label, brooke bond, modern ,lipton.
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BALANCE SHEET
Inventories/total assets 12
10
8
6
4
2
0
Inventories has increased in 2011 compare to previous years , so company inventory management is not that much good.
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Sundry debtors/total assets 12
10
8
6
4
2
0
Receivables are high in 2011 compare to other years , so it is the bad for the company.
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Cash and bank balance/total assets 12
10
8
6
4
2
0
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Current assets has increased in 2011 compare to previous years .
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Rupee spent on raw materials has decreased in 2011 compare to 2009 , so it is good company.
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Rupee spent on power and fuel cost is decreasing compare to previous years.
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Rupee spent on employee cost has decreased in 2011 compare to previous years
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