Euro Based Financial Reporting

Impact of Brexit on Unilever

There are different views on the probable effects of Brexit on Unilever. A report by Forbes reports that Brexit`s impact on Unilever which is one of the leading manufacturers of consumer products is expected to be limited in the long run (Forbes, 2016). Unilever enjoys a presence in up to 130 countries in the globe today, with the majority of its products being manufactured locally. Unilever`s efforts to localize manufacturing were aimed at hedging against current fluctuations and also cut on costs of transportation. As such, the impact of the hovering uncertainty around the UK`s and European Union's trade agreement is likely to be limited. Even in the event that the UK market became inaccessible, Unilever could still have other markets to operate in.

Additionally, Unilever financial reports are in Euro`s which have continued to fare rather well than the Great Britain Pound (Xe, 2019). Even if the dollar was to keep growing stronger against the Euro, it could only benefit the revenue Unilever gets from the United States as a result of the impact of translation. Unilever could only get worried if more countries decided to leave the European Union because that would with no doubt weaken the Euro.

There is however still a possibility that the consumer goods giant would be severely affected in the event the UK voted to exit the EU. There is a possibility that the uncertainty about Brexit`s knock-on effects on the economy of the UK would change behavioral patterns in business (Schoof et al., 2015). A statement from Unilever said that there was no way the company could predict Brexit`s consequences on the UK economy and its subsequent impacts on their operations. In a letter sent to the 7,500 employees of Unilever in the UK, the company’s bosses admitted that a considerable portion of the success the company enjoyed was a result of their access to UK European market which is made up of more than 500 million consumers (Hipwell, 2018). Even with this uncertainty, Unilever was seen to support a vote to leave the European Union. It is worth noting that even with the Brexit, Unilever plans to continue with its existing UK operations undeterred, even though Brexit would deter the way the company is run (Hills, 2018). It is as such not easy to predict the actual effects Brexit will have on Unilever.

Unilever`s Portfolio of Companies

Over the years, Unilever has grown to be considered as one of the leading transnational companies. At Unilever today, while major product groups are responsible for profits in North America and Europe, elsewhere, regional groups like Lipton are responsible elsewhere. Lipton, which is a brand of Unilever is well known in places like Cambodia and Albania countries, where Unilever is not in operation. Today, Unilever does business in more than 130 countries through the different operating companies they have acquired (Jansen, 2018).

Unilever owns up to 400 brands with its turnover in 2017 having stood at 53.7 billion euros and thirteen brands which had sales of over one billion euros. Unilever is mainly organized into four main divisions namely; Beauty & Personal Care, Refreshments, Foods and Home Care (Unilever, 2019). The company has made quite a number of corporate acquisitions, and its portfolio is made up of companies like Alberto-Culver, Pukka Herbs, Dollar Shave Club, Chesebrough-Ponds, Best Foods, Brooke Bond, Lipton and Ben & Jerry`s.

The acquisition and partnering with different companies have also helped Unilever build successful businesses in categories of products that are new (Cross et al., 2017). Unilever has over the years acquired ferry companies, paper manufacturers and companies that decorate homes. For example, Unilever`s portfolio of company`s has helped it create a global business in tea. In terms that are geographical, Unilever relies on the knowledge of their operating companies to judge the product expertise they could use in their local markets. What that means is that Unilever is now more united and even in a better position to utilize the many different opportunities that come with diversity.

Cross-postings are quite frequent in Unilever for they help foster the unity in the company, an understanding of the different attitudes and behaviors in different countries and a sense of purpose that is common. These kinds of postings could either be across product lines or to different countries. Such a type of exposure to different environments improves the know-how of personnel. Unilever`s transnational way of doing business has helped it maintain standards of behavior that are common even in its units that are far flung over the years (Jones and Miskell, 2007).

Ben & Jerry`s

Of the different Unilever`s subsidiaries, Ben & Jerry`s is the unique one. That is because, unlike the other subsidiaries, Ben & Jerry`s does not spend any time or coin on positioning itself, or branding or hard-selling the products it offers. Ben & Jerry`s Homemade Holdings Inc., is an American company founded in 1978 that is best known for manufacture of ice cream even though it manufactures other items like sorbet and frozen yoghurt. Unilever acquired the company in 2000. The company uses the inside-out approach instead of the common outside-in approach to test what would resonate well with consumers for purposes of making decisions on messaging and strategy (Bourgeois et al., 2017). Ben & Jerry`s works out what it stands for and what it`s different employees want it to stand for, and that is communicated mostly through guerrilla marketing and events whose focus is never on the product but other political, environmental and social issues (Wang and Zhang, 2017). The acquisition of Ben & Jerry`s by Unilever did not change the marketing recipe. Haagen-Dazs which is the closest rival of Ben & Jerry`s has been observed to spend more money in marketing over the years, but still, the amounts of ice cream sold by Ben & Jerry`s in the US in 2017 beat those sold by Haagen-Dazs (The Anatomy of Brand Positioning: Häagen Dazs Vs. Ben & Jerry’s, 2013).

Today, Ben & Jerry has grown and enjoys a presence in Thailand, Brazil, Singapore, Japan, and Australia. At times, the company is seen to make some few tweaks in its flavors and marketing, but that is only in exceptional instances. That sees some countries get ice cream flavors that are unique and that are not found in the US; a good example is the Minter Wonderland flavor found in Ireland and the UK (Steimer, 2017). Even in the different countries, however, what fans see in the freezers and scoop shops stays true to the hippie and funky culture of the company which began way back in 1978.

The stance taken by Ben & Jerry which is quite strong is some sort of a loyalty program which creates a hard-core group of heavy users who are always seeking out the products it offers. At one point, the former CEO of the company, Walt Freese said that customers who are loyal are always the most profitable because nothing is spent to acquire them. The stances of Ben & Jerry`s are deeply embedded in its DNA and in everything it undertakes whether it opens a scoop shop, the way it treats its different employees or where it gets its ingredients from. All these are factors that give the approach taken by Ben & Jerry`s longevity and authenticity (Bloom, 2005).

Unilever and Ben & Jerry`s are consumer goods companies which are mostly affected the consumer preferences and dynamics, brand, and marketing effectiveness, the intensity of competition, environmental sustainability, new technologies and competitors that are disruptive, and retailer consolidation and power. Stakeholder analysis could be useful in dealing with some of the problems that are related to the stakeholders of the company`s. These include issues like consumer dynamics and preferences and brand and marketing effectiveness. The stakeholders of Unilever and Ben & Jerry include suppliers, suppliers, customers, creditors, shareholders, and it`s employees and the society. All these stakeholders have expectations that they place on the companies. Suppliers expect their partnership with the companies to be long-term and also to be beneficial mutually.

Stakeholder analysis is one important technique used for identification of stakeholders and further analysis of their needs. With a proper stakeholder analysis, a company can identify all the key stakeholders, both primary and secondary who have vested interests in the company. The process of stakeholder analysis usually is aimed at developing a strategic view of the institutional and human landscape, and the existing relations between the different stakeholders and those issues they care about most. Once stakeholders have been identified, it is necessary to prioritize them according to their interest in the company and the powers they have over your company. That will help map out the key stakeholders — those whose opinions and actions matter most to the company.

There are quite a number of ways through which stakeholder analysis can help both Unilever and Ben & Jerry. A stakeholder-based approach would help get any company into shape. The opinions of the most relevant and powerful stakeholders could be used to define any company. A stakeholder analysis will also aid in the development of market strategies, which will be used to give careful consideration to customers who form a stakeholder group that is critical (projectmanagement.com, 2018). Gaining the support of the most resourceful stakeholders will help the company more resources, such as money, time and people. That will with no doubt go a long way in making the company a success. For example, in the case of Unilever, accurate understanding of the customer group of stakeholders would help obtain their views about Unilever`s products and such opinions could be used to develop products in line with the preferences of the customers.

Additionally, through communication with stakeholders, from time to time, they get to understand your activities fully and also gain a good understanding of the benefits they could accrue from your organization (Bourne, 2016). That implies that they can, in a more active way offer support whenever required. Also, having a good understanding of the stakeholders puts a company in a better position to anticipate and predict what their reactions would be to the different situations your company may be faced with. With that, it is easier to plan such actions that could easily win their support.

References

• Bloom, J. (2005). Ben & jerry's secret formula for marketing: no apologies. [online] Ad Age. Available at: [Accessed 13 Feb. 2019].
• Bourgeois III, L.J., Mariani, E., Yu, V.J., Bourgeois III, L.J., Mariani, E. and Yu, V.J., 2017. Ben & Jerry's and Unilever: The Bohemian and the Behemoth. Darden Business Publishing Cases, pp.1-11.
• Bourne, L., 2016. Stakeholder relationship management: a maturity model for organizational implementation. Routledge.
• Cross, G., Vanhaverbeke, W., Roijakkers, N. and Pop, O., 2017. How Unilever Realises Its Mission Of Making Sustainable Living Commonplace Through Partnering.
• Hills, J. (2018). Unilever believes Brexit will make Britain 'stronger and more united' [Accessed 13 Feb. 2019].
• Hipwell, D. (2018). They say not, but Unilever’s move is about Brexit. [online] THE TIMES. Available
• Jansen, K., 2018. Unilever–Sustainable Living Plan. Retrieved May, 2. Jones, G. and Miskell, P. (2007). Acquisitions and firm growth: Creating Unilever's ice cream and tea business. Routledge, [online] 49(1). Available at:
• Schoof, U., Petersen, T., Aichele, R. and Felbermayr, G., 2015. Brexit–potential economic consequences if the UK exits the EU. Future Social Market Economy Policy Brief, 5. Statista. (2019). Top ice cream brands of the United States in 2017, based on sales (in million U.S. dollars).
• [Accessed 14 Feb. 2019]. Steimer, S. (2017). How Ben & Jerry’s Took Both Its Ice Cream and Mission Global. [online] AMA.
• Wang, J.J. and Zhang, C., 2017. The impact of value congruence on marketing channel relationship. Industrial Marketing Management, 62, pp.118-127. Xe. (2019). XE Currency Charts: GBP to EUR. [online] Available at:

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