Unilever continues to restructure its operations, but to truly revive, it must focus on market shares
The company had announced plans to do away with a whopping 20,000 jobs in August last year. Even emerging markets, long touted as a saving grace are facing the flak, evident from recent news of Hindustan Unilever Ltd. (HUL) doing away with 50 managerial positions. Comments K. Sudarshan, Managing Partner, EMA Partners India, “Earlier, HUL was insulated from the global parent and the company was designed for the high growth era.” He adds at the rates of growth prevalent at that time, they could carry non-performers.
Now the parent company is taking up more control, and redundancies are being created for jobs particularly in category innovation, manufacturing and even HR functions in India. The power brand strategy created further pressure. The bulge is mainly in the upper middle management, or 3A & 3B category. Also, it is no longer the top employer of choice in India’s key business schools.
With such tidings in one of Unilever’s key markets, it’s quite apparent that these are trying times for the company. More than restructuring and cost cutting, it’s important to get its brands back in the reckoning as far as market shares go. Perhaps that should be the most credible starting point to bring some vitality to this Anglo-Dutch behemoth.
The company had announced plans to do away with a whopping 20,000 jobs in August last year. Even emerging markets, long touted as a saving grace are facing the flak, evident from recent news of Hindustan Unilever Ltd. (HUL) doing away with 50 managerial positions. Comments K. Sudarshan, Managing Partner, EMA Partners India, “Earlier, HUL was insulated from the global parent and the company was designed for the high growth era.” He adds at the rates of growth prevalent at that time, they could carry non-performers.
Now the parent company is taking up more control, and redundancies are being created for jobs particularly in category innovation, manufacturing and even HR functions in India. The power brand strategy created further pressure. The bulge is mainly in the upper middle management, or 3A & 3B category. Also, it is no longer the top employer of choice in India’s key business schools.
With such tidings in one of Unilever’s key markets, it’s quite apparent that these are trying times for the company. More than restructuring and cost cutting, it’s important to get its brands back in the reckoning as far as market shares go. Perhaps that should be the most credible starting point to bring some vitality to this Anglo-Dutch behemoth.
Source : IIPM Editorial, 2012.
An Initiative of IIPM, Malay Chaudhuri
and Arindam Chaudhuri (Renowned Management Guru and Economist).
and Arindam Chaudhuri (Renowned Management Guru and Economist).
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