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Management article
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Reference no. 92506
Published by: Harvard Business Publishing
Published in: "Harvard Business Review", 1992

Abstract

Unilever, the Dutch-British company with operations in some 75 countries, is often described as one of the foremost transnationals. The company''s fast-moving product portfolio of consumer goods requires proximity to local markets, although economies of scale in certain functions justify some centralized control. At the same time, a flexible matrix of individual managers around the world share a common understanding of corporate strategy. Co-chairman Floris Maljers provides an inside look at Unilever''s evolution since its founding in 1930. For example, the company''s core product group, the foods business, has weathered two major reorganizations in just the last 30 years. Through all of the changes, many based on trial and error, the company has maintained two consistent practices: developing high-quality managers and linking decentralized units through the "Unileverization" of those same managers.

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Abstract

Unilever, the Dutch-British company with operations in some 75 countries, is often described as one of the foremost transnationals. The company''s fast-moving product portfolio of consumer goods requires proximity to local markets, although economies of scale in certain functions justify some centralized control. At the same time, a flexible matrix of individual managers around the world share a common understanding of corporate strategy. Co-chairman Floris Maljers provides an inside look at Unilever''s evolution since its founding in 1930. For example, the company''s core product group, the foods business, has weathered two major reorganizations in just the last 30 years. Through all of the changes, many based on trial and error, the company has maintained two consistent practices: developing high-quality managers and linking decentralized units through the "Unileverization" of those same managers.

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