Managing Hindustan Unilever Strategically

Introduction
Hindustan Unilever Limited (HUL) is India's largest fast moving consumer goods company, with leadership in Home & Personal Care and Foods & Beverages. HUL's mission to bring vitality to life and to meet everyday needs for nutrition, hygiene, and personal care with brands that help people feel good, look good and get more out of life. HUL operates in more than 100 countries has a turnover of 39.6 billion and net profit of 3.685 billion in 2006 and derives 41 per cent of its income from developing and emerging economies

History
Hindustan Unilever Limited (HUL) earlier Unilever, In 1888 exports soap (sunlight) to India. Three Indian subsidiaries came into existence in the period 1931 1935 that merged to form Hindustan Unilever Limited (HUL) in 1956. Mergers and acquisition of Lipton in 1972, Brooke Bond in 1984,Ponds in 1986 and so on results in restructured of business over year.

Managerial Problems
The decision making power of subsidiary is shifted to head Quarters of U.K. Unilever Formulated a new global realignment under which it develop brands and stream Line product offering a cross the world and subsidiaries will sell the products. India CEO replaced by British CEO, hence focus only on international products rather than Local products.

Contd
Hold on Niche market (soap and detergents) becomes weaker hence competitor got advantage. HUL emphasis on premium priced, high end products sold through modern retail outlets.

Key Finding
The Corporate strategy is of focusing on core businesses of food, home care and personal care. Home and personal care consist of personal wash, Laundry, skin care, hair care ,oral care, color cosmetics. While Food businesses have Tea, Coffee, Ice Creams and processed Food brands. The operational management is looking after a management committee comprising the vice chairman, CEO and managing director.

Contd
HUL has centralised some functions such as Finance, Information Technology, Human Resource management , Research and corporate and Legal affairs. HUL strong Competitors such as the multinationals proctor & Gamble, Nivea or L'Oreal and formidable Local Companies such as Amul, Nirma or Tata FMCG Companies. HUL introduce new style of packaging and distribution through women enterpreneurs.

Contd .
HUL has experimented with new ideas suited to the Local market, HUL has prove in rural marketing, effective distribution systems and human resource development. The strategic decision making from India is shifted to Head quarters of U.K. Indian CEO is replaced by British CEO Leads to change focus on Large range of Local brands to the Limited number of international brands. The name Hindustan Lever is changed to Hindustan Unilever.

Contd .
HUL focuses only on 30 power brands in 2002 and causes HUL suffer in the niche market of soap and detergent, Competitors quickly took advantages of this opportunity. HUL latest sales, Net profit is down, Input cost increased and new product introduced in market is yet to famous.

Suggestions
HUL must stick on the principle of Local roots with Global scale aimed at becoming a MultiLocal multi-national. HUL should drop the Unilever global strategy of focusing on a Limited number of products, concentrate on Large number of Local brands. HUL should Lower the prices of Products. The subsidiary (India) must have the freedom to take strategic decision on its own.