The Hindu Business Line : 3-dimensional changes

THE announcements of the changes at the top of Unilever have at least three dimensions. The first of them is organisational: It is certainly being streamlined and made more of `one company', and not a double-headed Anglo Dutch company.

The real boss will be the Group CEO who will be the undisputed Numero Uno. His team is at once integrated along all the three dimensions — regional and business groups and key functions of money and people; a difficult act indeed. In most cases one or the other will get priority. In this case it is likely to be in my view the brand which will rule.

The second is the competitive environment: Unilever's situation is unenviable. It is fighting battles worldwide on several fronts together and all of them with giants like Colgate-Palmolive, Nestle, Heinz and P&G. The last named has been further strengthened with the addition of Gillette.

Over the past four years Unilever has been struggling to meet the challenge of top line growth and made strenuous attempts to reduce the number of brands, exit businesses and try to make the lumbering elephant a a bit smarter and faster, if not actually dance.

Thirdly, marketing in particular will be strengthened because worldwide there is reportedly an attempt implemented to sharply divide brand development away from brand building. The former will be centralised and housed in innovation centres, which will ensure a uniform philosophy and personality. The brand building through execution within these guidelines will be in the hands of the business chiefs, such as Mr Arun Adhikari, within the country. Over and above all of this is the element of individual careers.

I had said during the last restructuring of HLL a few months ago that the cynics who said Mr Banga was being kicked upstairs in view of the flat sales growth in the Indian market and the fall in share prices are drawing wrong inferences. It needs to be seen whether they were completely off the mark or merely speaking too soon!

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3-dimensional changes