Unilever 联合利华 SWOT 2010

UnileverCompany ProfilePublication Date: 19 Mar 2010AmericasEurope, Middle East & AfricaAsia Pacific245 5th Avenue119 Farringdon RoadLevel 46London4th Floor2 Park StreetEC1R 3DASydney, NSW 2000New Y ork, NY 10016United KingdomUSAAustraliat: +1 212 686 7400t: +44 20 7551 9000t: +61 2 8705 6900f: +1 212 686 2626f: +44 20 7551 9090f: +61 2 8088 7405e: euroinfo@e: apinfo@e: usinfo@ABOUT DATAMONITORDatamonitor is a leading business information company specializing in industry analysis.Through its proprietary databases and wealth of expertise, Datamonitor provides clients with unbiased expert analysis and in depth forecasts for six industry sectors: Healthcare, Technology, Automotive, Energy, Consumer Markets, and Financial Services.The company also advises clients on the impact that new technology and eCommerce will have on their businesses. 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Please note that the findings, conclusions and recommendations that Datamonitor delivers will be based on information gathered in good faith from both primary and secondary sources, whose accuracy we are not always in a position to guarantee. As such Datamonitor can accept no liability whatever for actions taken based on any information that may subsequently prove to be incorrect. Unilever Page 2TABLE OF CONTENTSCompany Overview (4)Key Facts (4)SWOT Analysis.....................................................................................................5UnileverPage 3T ABLE OF CONTENTSCOMPANY OVERVIEWUnilever is one of the world's leading fast moving consumer goods companies. It offers products across foods, home and personal care categories.The group primarily operates in Europe, the Americas, Asia and Africa. It is headquartered in London, the UK, and employs about 163,000people.The group recorded revenues of E39,823 million ($55,538.4 million) during the financial year ended December 2009 (FY2009), a decrease of 1.7% compared to FY2008.The operating profit of the group was E5,020 million ($7,001 million) during FY2009, a decrease of 30% compared to FY2008.The net profit was E3,370 million ($4,699.9 million) in FY2009, a decrease of 33% compared to FY2008.KEY FACTSUnileverHead Office Unilever House100 Victoria EmbankmentLondon EC4Y 0DYGBR44 20 7822 5252Phone 44 20 7822 5951Fax Web Address39,823.0Revenue / turnover (EUR Mn)December Financial Year End163,000EmployeesUL New York TickerULNew York Ticker UnileverPage 4Company OverviewSWOT ANAL YSISUnilever manufactures and markets fast-moving consumer goods.The group operates through subsidiaries in Europe, the Americas, Asia and Africa. Unilever has a strong portfolio of over 400 global brands spanning across 14 categories of home, personal care and foods products.The large scale operations provide Unilever with cost advantages along with operational efficiencies. However, increasing competition and weak economic situation could adversely affect the group's market share and margins.StrengthsWeaknessesDiversified revenue streamsWeak liquidity positionLarge scale of operationsUnfunded employee post retirement benefitsStrong portfolio of brandsWeak performance in Western EuropeStrong focus R&D activitiesFocus on sustainabilityOpportunitiesThreatsFocus on developing and emergingDampened consumer demandeconomies Intense competitionDivesture of non-core business activities Government regulationsGrowing out of home eating marketStrengthsDiversified revenue streamsThe group has diversified revenue streams, both in terms of its product portfolio and geographical reach. Unilever generates revenues through four product categories: savory dressings and spreads; ice creams and beverages; personal care; and home care and other operations. In FY2009, savory, dressings and spreads contributed 33.3% of total revenues; personal care (29.7%); ice cream and beverages 19.5%; and homecare and other operations 17.5%.Moreover, the group generates revenues from markets in over 170 countries. In FY2009, the group reported 15.9% of its revenue from the US; 8.5% from the Netherlands/United Kingdom; and 49% from emerging markets like Brazil, India, Indonesia, Turkey, South Africa, China, Mexico and Russia; and the remaining 26.6% from all other countries across the world. A diversified product portfolio and revenue stream not only shields the group against uncertain economic climate in a specific market or demand fluctuations in certain product categories (by dispersing its business risks), but also enables it to tap opportunities available in new as well as existing markets.Unilever Page 5Large scale of operationsUnilever operates with large scale of operations. It is a leading FMCG company operating 270 manufacturing facilities across six continents. Its products are sold under 400 brand names across 14 categories of home, personal care and foods products. Unilever's global scale of operation has enabled it to achieve leadership positions, typically number one or number two, across product categories, in several markets. For example, in Foods, it holds the global number one position in savory and dressings, spreads, tea-based beverages and ice cream. In home care, it holds the global number two position in laundry, with a number one position in many developing and emerging markets. In personal care, it holds the global number one position in mass skin care and deodorants, and the number two position in hair care.Further, the company is dependent on the regional and global supply chains for the procurement of raw materials and for the manufacture, distribution and delivery of its products. Following different style of supply chain methods depending upon the situation would provide the company with economies of scales. Moreover, large scale provides Unilever with cost advantages along with operational efficiencies.Strong portfolio of brandsUnilever has an extensive portfolio of 400 strong brands spanning across 14 categories of home, personal care and food products.Thirteen of its brands have accounted for a global turnover in excess of E23,000 million ($32,076.5 million).These are Axe/Lynx, Blue Band, Dove, Flora/Becel, Heartbrand, Hellmann’s, Knorr, Lipton, Lux, Omo, Rexona, Sunsilk and Surf. Further, the top 25 brands account for over 70% of the group’s total sales.Most of Unilever's brands are global leaders in their respective segments. In the food segment, Knorr is its biggest brand with a strong presence in over 80 countries. It is Unilever's leading brand with annual sales of over E3,000 million ($4,414 million). Unilever is the world's largest ice cream manufacturer, and owns brands like Magnum, Cornetto, Carte d'Or and Solero, and Ben & Jerry's and Breyers in the US.The brands strength of the company is vindicated from the fact that more than 2 billion consumers worldwide use the company’s products on any day. Unilever is also the second biggest advertiser in the world. Strong portfolio of well-established brands positioned to meet the needs of its consumers across a variety of price points, which allows it to compete effectively in its key categories and countries.Strong focus on research and development (R&D) activitiesUnilever has a strong orientation towards research and development process.The group has combined its R&D on foods, home and personal care into a single research organization in 2008. Further, the group invests significant amount of its resources on R&D activities.The R&D expenditure of Unilever stood at E891 million (approximately $1,242.6 million), and E927 million (approximately $1,292.8 million) for the financial year 2009 and 2008 respectively.The group spent around 2.3% of its revenue on R&D for the past five year period. As a result, the group was able to concentrate on bigger innovations and rolled them out faster around the world. For instance, in 2009, the group Unilever Page 6launched Dove Minimising Deodorant in 37 markets; Signal White Now in 21 markets and Knorr Stockpots in 12 markets; Clear shampoo is now in 35 markets. In the same year, Unilever also released a new deodorant product (form of roll on and spray) in the UK. A strong orientation towards R&D activities enables the group to launch new products frequently and also introduce variants of existing products.Focus on sustainabilityUnilever maintains strong focus on environmental related issues.The strong focus on sustainable issue helped the group to maintain its sector leading position on the Dow Jones Sustainability Indexes for the previous 11 year period.The group has been reducing the environmental impact of its own factories and supporting its agricultural suppliers. For instance by 2008, Unilever achieved a 41% reduction in CO2 emission from its factories since 1995.The group sources all its key agricultural raw materials (which form 50% of its raw materials) on a sustainable basis.Through its Sustainable Agriculture Program, the group plans to cover criteria such as reducing fertilizer and pesticide use, conserving water, promoting biodiversity and using less energy. Unilever also started using palm oil in both food and home and personal care products. For this, Unilever has already purchased GreenPalm certificates covering 185,000 tons of palm oil, accounting for around 15% of its total needs.The strong focus on environmental issues would foster strong relationships with its suppliers and also improves its brand image.WeaknessesWeak liquidity positionThe group has recorded a weak liquidity position in the previous financial year. For FY2009, the group’s current assets stood at E10,811 million ($15,077.4 million) as compared to the current liabilities of E11,599 million ($16,176.3 million), resulting in a current asset ratio of 93.2%, indicating less amount of resource to cover its short term liabilities. Further, the group’s cash and cash equivalents stood at E2,642 million ($3,684.6 million), which is sufficient to cover only its short term borrowings of E2,279 million ($3,178.4 million), leaving no cash for other working capital needs. Further, the majority of the current assets of the group are tied up in inventories and current receivables, which forms 70% of its total current assets, which will take comparatively higher time to liquidate.This all indicates that the group’s liquidity position is significantly weak, which could result in improper working capital management and negatively impact the group's operational efficiency and its growth initiatives.Unfunded employee post retirement benefitsThe group provides pension benefits and other post-retirement health and life insurance benefits to employees. During FY2009, the group incurred a total of E1,204 million ($1,679.1 million) for the Unilever Page 7pension and post retirement benefit expenses.The group also paid a total of E1,367 million (approximately $1,906.5 million) for the pension and post retirement benefit plans during FY2008.At the end of December 2009, the group's projected pension and post-retirement benefit obligations stood at E16,995 million ($23,701.7 million) as compared to the planned assets of E14,413 million (approximately $20,100 million), resulting in an unfunded status of E2,582 million (approximately $3,600.9 million), representing 77% of the group’s net profit in FY2009. Sizeable unfunded post retirement benefits would force the group to make periodic cash contributions towards bridging the gap, which would reduce cash available for growth plans.Weak performance in Western EuropeUnilever has registered weak performance in Western Europe.The revenues and operating profit of the group from this region has shown significant decline in the previous financial year. In FY2009, revenues from Western Europe declined at a rate of 6.1% to reach E12,076 million ($16,841.6 million).The operating profit declined significantly, in spite of significant income received from business disposals in 2008.The operating profit fell by 50.4% from E2,521 million ($3,515.9 million) in 2008 to E1,250 million ($1,743.3 million) in 2009.The underlying performance of the group in Western Europe could put additional pressure on its performance in other regions. OpportunitiesFocus on developing and emerging economiesUnilever has been active in D&E economies through its subsidiaries in Asia-Pacific, Africa, the Middle East, Turkey, and Latin America region.These regions currently contribute approximately 49% to Unilever's turnover in 2009. Further, the group expects to increase its revenue form D&E economies. Moreover, in 2008, the group also decided to shift a large chunk of its innovation and R&D resources to Asia including India and China.The move is expected to create competitive global research centers in Asian countries to expand its business operations in the D&E economies.D&E economies are expected to account for 90% of the world's population by 2010, and this is expected to drive demand for fast moving consumer goods. For instance, the Indian FMCG sector is expected to grow 4-fold from $25 billion sales in 2008 to $95 billion by 2018.The growth would be attributable to the rising income and increasing demand. Similarly, the Chinese FMCG market is also expected to growth at a rate of 15% a year in the next five year period (2009–13).With strong presence and leadership position across these markets, Unilever could exploit the growing market conditions.Divesture of non-core business activitiesUnilever divested its interest in many of the non core business areas. For example, in December 2008, Unilever sold its edible oil business and oil palm plantations, Palmci and PHCI, in Cote d'Ivoire. Unilever Page 8These divestments are part of Unilever's plans to dispose of non-strategic business operations. Further in October 2009, the group announced to reduce its equity interest in JohnsonDiversey (a leading provider of commercial cleaning, sanitation and hygiene solutions) from 33% to 4%. In December 2009, Unilever sold its media planning and buying business for Greater China to PHD, part of the Omnicom Media Group.With the proceeds of these divestments, the group plans to increase its focus on the consumer business. Further, the divesture of non-core businesses will enable the group to concentrate on activities such as research, innovation, sales and marketing, and increase their energies on matters that directly affect their competitive positioning.This strategic action would fulfill the group's aim of delivering consistent and competitive sales growth and improving its operating margins.Growing out of home eating marketThe global food-services industry is expected to register strong growth in the coming period.The industry is projected to reach $2.2 trillion in revenues by 2015, primarily because of the growing food market outside home. In the US, more than half of food expenditure now happens outside the home. In Europe, this figure is as high as one third and, in Hong Kong, 2.5 meals out of every three are eaten away from home.Unilever Foodsolutions, a food service business of Unilever, operates in 65 countries worldwide. The Unilever Foodsolutions umbrella is home to global Unilever Foods brands like Knorr, Hellmann's, Lipton, Heart, Slim-Fast, Becel and Flora. Unilever Foodsolutions is also focusing on canteens and quick-service restaurants. It started to work with quick-service restaurants by enabling them to provide healthier options for consumers, such as Hellmann's Extra Light Mayonnaise and Becel portions.Therefore, the group with its Unilever Foodsolutions business is well positioned to tap the global out of home eating market.ThreatsDampened consumer demandUnilever’s business is dependent on continuing consumer demand for its products and brands.The economic downturn adversely impacted its business by reducing the demand for some of its products. Further, the current economic climate is forcing shoppers to watch their expense and look for cheaper options of discounted brands or own label merchandise.This is leading to discounters like Aldi, Lidl and Netto taking an increasing proportion of the market from the major supermarkets and stores, which has a direct effect on sales of the major brands.Further, the branded goods suppliers like Unilever is facing pressure from the big retail chains like T esco.These big retailers, for sustaining their revenue growths and margins, are promoting their own-labels.Though, the organization is working hard to handle all these external pressures, the lower consumer spending across the regions would affect its performance. Further, the dent in the Unilever Page 9disposable income of consumers is making it increasingly difficult for branded product manufacturers like Unilever to maintain their sales volume and revenue growth.Intense competitionUnilever operates in the fiercely competitive personal care and home care markets. For example, in mature markets such as the US, France, Germany and the UK, hair care sales are suffering stagnation due to heavy competition, and manufacturers will need to offer value-added attributes in order to gain share. Declining prices, coupled with rising demand for discounts from the trade partners, is putting pressure on margins. In some emerging markets, Unilever is losing the price-advantage it once enjoyed in home and personal care products to companies such as Reckitt & Benckiser and Procter & Gamble. In two other key markets including India and Spain, the company faced intense competition from low-cost local competitors.In the foods segment, Unilever faces stiff competition from Nestle and Groupe Danone in its key markets. Nestle is one of the leading producers of food products in North America and Europe, both key markets for Unilever. Nestle's enlarged Dreyers (ice cream) business poses a serious threat to Unilever's share in the ice cream market.The group primarily faces competition from other major players such as Johnson & Johnson, Colgate Palmolive, L'Oreal, Shiseido, Beiersdorf, Kao Corporation and Clorox. Increasing competition could adversely affect Unilever's market share and margins.Government regulationsSeveral consumer protection groups are voicing concerns over the presence of harmful chemical ingredients in cosmetic products. A recent study showed that about one-third of cosmetic products contain carcinogens. Due to increasing public pressure, the US Food and Drug Administration (FDA) are expected to impose stringent quality norms on cosmetic products. New regulations may delay launch of new products and result in higher product development expenditure.At the European Union level, the European Commission has published a draft regulation for the Registration, Evaluation and Authorization of Chemicals (REACH), along with restrictions applicable to the chemical substances, and has set up a European Chemicals Agency. REACH focuses on the 30,000 chemical substances introduced into the market before 1981 and manufactured or imported in quantities of more than one ton per year, on which hazard information has not been sufficiently well examined by the current system. REACH, which came into effect recently, could impose new liabilities or increase operating expenses, either of which could result in a decline in profitability. 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