Unilever: "Path to Growth" strategy II.

The case discusses the five-year long organizational restructuring program undertaken by the lead-in consumer goods company Unilever. It examines in detail the important elements of the restructuring program named the row to growth strategy. The case focuses on the corporate strategy of Unilever and changes brought virtually with respect to organizational structure, brand restructurings, the acquisitions, operational processes, IT and supply mountain range management practices. Finally, it discusses the results of the restructuring program and examines the companys future prospects and reasons for the giant to embark on 2005-2010 strategy.

Problems Appear:

A couple of years ago it was unimaginable that Unilever would hold into any trouble. Under the dual chairmanships of the Fitzgerald and Antony Burgmans, Unilever had completed what many saw as the final stage in a restructuring that had false the group from a potpourri of brands into a fully operate international food and consumer goods company. Unilever came up with the path to growth strategy, which pay back bold targets for earning per share of 5% to 6% per annum, spread everyplace five years. This strategy was loved by financial institutions, scarce is now being blamed for the bind that Unilever is in. At its pump was slimming down Unilevers portfolio from round 1,500 brands to just 400.



Again, this strategy was fêted by analysts and investors, but caused unforeseen and unpredictable problems. Unilever went on a capacious shopping spree in the late 1990s and spent about £17bn ( 24.6bn) and took its debt levels to nearly $20bn ( 29bn). Again the deal stored up problems for the future.

The first signs that the wheels were attack off the Unilever cart emerged about three years ago, when the American doctor, Robert Atkins invented a low carbohydrate diet that led to millions of hoi polloi gorging themselves on steak and...

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