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Unilever Bestfoods in France. Best in France Case Study December 15, 2003. Patricio Aylwin, Nicolas Chabut, Matthew Nolan and Björn Seidel. Overview. Unilever & Unilever Bestfoods General presentation Organization Values Reasons for an division in France
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Unilever Bestfoods in France Best in France Case Study December 15, 2003 Patricio Aylwin, Nicolas Chabut, Matthew Nolan and Björn Seidel
Overview Unilever & Unilever Bestfoods • General presentation • Organization • Values • Reasons for an division in France The French subsidiary of Unilever Bestfoods • Characteristics • Work process The specific aspects and an adaptation to France • Specific activities • The French constraints • The French advantages
Unilever & Unilever BestfoodsGeneral presentation • Created in 1930 by the merger of a British soap-maker, “Lever Brothers’’ (founded in 1885) and a Dutch margarine producer, “Margarine Unie’’ (which grew through mergers in the 1920s) • Unilever’s business : • Food • Home and personal care • Main food brands : Becel, Blue Band, Bertolli, Ben & Jerry’s, Flora, Knorr, Magnum, Lipton, Maille, Amora, …
Unilever & Unilever BestfoodsGeneral presentation • Few key figures : • Worldwide turnover in 2002 : €48 760 million • Number of employees : 247,000 people, with 90% of managers locally recruited and trained • Every day, 150 million people choose Unilever brands to feed their families and to clean their homes • Over half of all sales are generated by the foods division brands • Unilever Bestfoods : • Created in 2000 by acquisition of Bestfoods gathering Bestfoods and Unilever’s food division
Unilever & Unilever BestfoodsOrganization • UNILEVER BESTFOODS REGIONS • Foods North Africa, Middle East and Turkey • Ice Cream and Frozen Foods • Unilever Bestfoods Asia • Unilever Bestfoods Latin America • Unilever Bestfoods North America & Slimfast Worldwide • Unilever Bestfoods, Europe
Unilever & Unilever BestfoodsUnilever Bestfoods Europe • HQ : Rotterdam (The Netherlands). • Local offices in almost all European countries. • European customer base of some 650 million people. • A wide cross section of consumers, incorporating people in both the developed markets of western Europe and the developing markets of former Eastern block countries.
Unilever & Unilever BestfoodsCompany values • The core values of the company expressed through a Code of Business Principles : • These values are not negotiable and applicable to the whole world, including France. • Standard of Conduct • Obeying the Law • Employees • Consumers • Shareholders • Business Partners • Community involvement • Public activities • The Environment • Innovation • Competition • Business Integrity • Conflicts of Interests • Compliance, Monitoring, Reporting
Unilever & Unilever BestfoodsReasons for an installation in France • Conquest of the market • Proximity of the market • Adaptation to local habits • Development of the products (A branch of the European HQ in France) • Existing in European and French installations at merger
The French subsidiary of UBFCharacteristics • Production and commercialization • HQ in Rueil-Malmaison • 11 Factories in France
The French subsidiary of UBFCharacteristics • 2 types of status : • Local workers • Expatriates • Presence of a branch of the European HQ
French subsidiary of UnileverFew 2002 key figures • Sales of Unilever France • € 3.875 billion of which € 555 million are exports • 5250 Employees • € 420 million in advertising
The French subsidiary of UBFWork process • A strong guideline given by the European HQ : • Recruitment • Compensation • Planning • Evaluation and assessment • Training • A free local implementation • The example of Bestfoods acquisition
An adaptation to FranceSpecific activities • A complex business in France • The strategic axes of Unilever
An adaptation to FranceConstraints • Social laws • Benchmarking as a consequence • Example of an economic gathering
An adaptation to FranceAdvantages • A firm adapted to the market • UBF seems not to benefit from ‘’the French advantages’’
Conclusion • First reason for being in France : • To be close to the market • It seems inconvenient to sell without producing in France. • Second reason : • Management of existing structures But beware to the benchmark to capture future installations !
We Thank • HR Director of the French branch : Mrs. Andrée Bosset 01 41 96 50 56 Andree.bosset@unilever.com • Commercial Manager of Foodsolutions France: Mrs. Barbara Campos 01 41 96 51 18 barbara.campos@unilever.com 23 Rue Francois Jacob 92500 Rueil-Malmaison France
References • Web sites : www.unilever.com www.you-unilever.com • Questionnaire
Our Team • Members : • Patricio Aylwin • Nicolas Chabut • Matthew Nolan • Björn Seidel • Address : MBA / HEC 78351 JOUY-EN-JOSAS CEDEX