What are the chief elements of Unilever's diversification strategy? Is Unilever pursuing a multicountry or a global strategy? What aspects of the strategy do you like? What aspects of the strategy are you skeptical about and why?.
In September 1999 Unilever announced its intention to focus on fewer, stronger brands to promote faster growth. The company is whittling its brands down to 400 (from 1,600) including familiar brands such as Dove, Lux, Lipton, Magnum and Calvin Klein fragrances.
The concentration on innovation and brand development on a focused portfolio of 400 leading brands is part of Unilever's latest growth strategy, called The Path to Growth', designed to accelerate top line growth and step up the rate of margin improvement in five years time. In February 2000 the company announced a series of linked initiatives (organizational changes, restructuring) to align the entire organization behind these growth ambitions. .
http://www.corporatewatch.org./unilever.
2. Did Unilever pay too much to acquire Slim Fast? Is there any reason to believe that Slim Fast might be a better performer as part of Unilever than it would be as a standalone enterprise?.
Explain. Is Slim Fast a good strategic fit "there are no other diet products in Unilever's product/brand portfolio?.
Slim-Fast gives Unilever a strong brand name in which to compete in the health conscious foods market.
Slim-Fast fits flawlessly into Unilevers image for the development of their foods business. It brings us a world-class brand and a product range growing at over 20 percent per annum."".
Slim-Fast had operating profits of $125 million on sales of $611 million in the year ended November 1999.
www.abcnews.go.com/sections/business/unilever.
3. Did Unilever pay too much to acquire Ben & Jerry's? Is there any reason to believe that Ben & Jerry's might be a better performer as part of Unilever than it would be a standalone enterprise? Explain.