Subject category:
Strategy and General Management
Published by:
IBS Center for Management Research
Length: 14 pages
Data source: Published sources
Abstract
Inspite of major difficulties, Unilever was committed to building and sustaining a successful business in China. The company therefore adopted several measures like enhanced research and development, modern management systems and large scale organisational restructuring to anticipate and integrate the needs and aspirations of the Chinese customers into its growth plan. In the mid-1980s and 1990s, the large number of joint ventures entered by the company failed to earn profits for the multinational and also proved unsuccessful in integrating Unilever to mainstream Chinese economy. Therefore, in 1999, the company entered into large-scale consolidation and integrated its various units under one holding company. Special localised strategies like hiring of local employees, setting up an R&D unit, and planning for stock market listing were initiated to strengthen the company's position in China. Unilever China responded to the complex needs of the country's consumers by developing a portfolio of brands - both local and global, and incorporated traditional Chinese sciences with technological enhancements. The company aimed to identify itself as the brand that was quality conscious and consistently endeavored to meet local needs and tastes. Global brands - Dove, Lux, Ponds, Lipton - promised international expertise in their formulation and development but had local professionals to manage them to ease communication between the company and its customers. Similarly, local brands such as Hazeline and Lao Cai soy sauce benefitted from Unilever's extensive knowledge and resources, without losing their local character. Thus, Unilever China endeavored to balance global and local needs by developing solutions that satisfied the demands of its target consumer segment.
Teaching and learning
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Abstract
Inspite of major difficulties, Unilever was committed to building and sustaining a successful business in China. The company therefore adopted several measures like enhanced research and development, modern management systems and large scale organisational restructuring to anticipate and integrate the needs and aspirations of the Chinese customers into its growth plan. In the mid-1980s and 1990s, the large number of joint ventures entered by the company failed to earn profits for the multinational and also proved unsuccessful in integrating Unilever to mainstream Chinese economy. Therefore, in 1999, the company entered into large-scale consolidation and integrated its various units under one holding company. Special localised strategies like hiring of local employees, setting up an R&D unit, and planning for stock market listing were initiated to strengthen the company's position in China. Unilever China responded to the complex needs of the country's consumers by developing a portfolio of brands - both local and global, and incorporated traditional Chinese sciences with technological enhancements. The company aimed to identify itself as the brand that was quality conscious and consistently endeavored to meet local needs and tastes. Global brands - Dove, Lux, Ponds, Lipton - promised international expertise in their formulation and development but had local professionals to manage them to ease communication between the company and its customers. Similarly, local brands such as Hazeline and Lao Cai soy sauce benefitted from Unilever's extensive knowledge and resources, without losing their local character. Thus, Unilever China endeavored to balance global and local needs by developing solutions that satisfied the demands of its target consumer segment.

