hindustan unilever ppt

Bindu.Y.V.

MBAK-1104.

HOME & PERSONAL CAREFOODSEXPORTSOTHERS(CHEMICALS, WATER)

16.2%

7.3%

2.2%

Strength Weakness

Opportunity Threat

Internal Environment

External Environment

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.

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”.

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.

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 short-term and long-term interests.2. Caring about consumers, employees and shareholders, business partners and the worldin which we live.3. To succeed requires the highest standards of behaviour from all of us.

PRODUCT PORTFOLIO Kwallity Wall’s icecream Lifebuoy Lux Breeze Liril Rexona Hamam Moti soaps Lipton tea Pure it water purified Bru coffee Brooke bond tea Pepsodent and close up toothpaste and brushes Surf

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 Dove shampoo Vim dishwash Ala bleach Domex disinfectant

COMPETITORS

KRAFT P & G ITC NESTLE DABUR LO’REAL

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.

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.

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.

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.

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.

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.

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 unemployment, high spending power and high stakeholder confidence.

A successful organization will respond to economic conditions and stakeholder behavior. Furthermore organisations will need to review the impact economic conditions are having on their competitors and respond accordingly.

In this global business world organisations are affected by economies throughout the world and not just the countries in which they are based or operate from. For example: a global credit crunch originating in the USA contributed towards the credit crunch in the UK in 2007/08.

Cheaper labour in developing countries affects the competitiveness of products from developed countries. An increase in interest rates in the USA will affect the share price of UK stocks or adverse weather conditions in India may affect the price of tea bought in an English café.

A truly global player has to be aware of economic conditions across all borders and needs to ensure that it employs strategies that protect and promote its business through economic conditions throughout the world.

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.

Population changes also have a direct impact on organisations. Changes in the structure of a population will affect the supply and demand of goods and services within an economy. Falling birth rates will result in decreased demand and greater competition as the number of consumers fall. Conversely an increase in the global population and world food shortage predictions are currently leading to calls for greater investment in food production. Due to food shortages African countries such as Uganda are now reconsidering their rejection of genetically modified foods.

In summary organisations must be able to offer products and services that aim to complement and benefit people’s lifestyle and behavior. If organisations do not respond to changes in society they will lose market share and demand for their product or service.

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.

BALANCE SHEET

Inventories has increased in 2011 compare to previous years , so company inventory management is not that much good.

Mar '11 Mar '10 Mar '09 Dec '07 Dec '060.00%

20.00%

40.00%

60.00%

80.00%

100.00%

120.00%

Inventories/total assets

Inventories/total assets

Receivables are high in 2011 compare to other years , so it is the bad for the company.


5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

35.00%

40.00%

Sundry debtors/total assets

Sundry debtors/total assets


2.00%

4.00%

6.00%

8.00%

10.00%

12.00%

Cash and bank balance/total assets

Cash and bank balance/total assets

Current assets has increased in 2011 compare to previous years .


20.00%

40.00%

60.00%

80.00%

100.00%

120.00%

140.00%

160.00%

180.00%

Total current assets/Total assets

Total current assets/Total assets


10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

Raw materials/Sales

raw materials/sales

Rupee spent on raw materials has decreased in 2011 compare to 2009 , so it is good company.


0.20%

0.40%

0.60%

0.80%

1.00%

1.20%

1.40%

1.60%

Power and Fuel Cost/Sales

power and fuel cost/sales

Rupee spent on power and fuel cost is decreasing compare to previous years.


1.00%

2.00%

3.00%

4.00%

5.00%

6.00%

Employee Cost/Sales

employee cost/sales

Rupee spent on employee cost has decreased in 2011 compare to previous years


0.02%

0.04%

0.06%

0.08%

0.10%

0.12%

0.14%

Interest/Sales

interest/sales


10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%

80.00%

90.00%

100.00% NET INCOME/EQUITY

NET INCOME/EQUITY

Thank you for your time....

hindustan unilever ppt

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