Multinational Firm

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[Name of Institute]

Multinational Firm

Introduction

Unilever- everyday two billion people use Unilever product around the world. These products help them to look good, feel good, and get facilitate in routine life. With over 400 brands, Unilever touches many people lives in different ways. The company manufactures health care, home-care and, food products. Unilever established in the year 1890. Since the establishment, Unilever engages corporate in social responsibility. 167000 employee works at Unilever in different 22 regions and nationalities (Wilson, p.p.254).

Unilever enjoys market in 180 countries. Unilever spends $ 1.4 billion on R&D department every year. Unilever wins trust of consumers. With the help of R&D Unilever manufactures new and better products across the globe. Strong firsthand knowledge of local market and culture made diversity possible. Unilever focuses on productivity and performance. They encourage people to communicate innovative ideas and made them into practice. Unilever believes in integrity with their customers, employees, suppliers, and other stakeholders. (Unilever, 2011).

Financial Analysis

Profitability Ratios

12/31/2011

12/31/2010

12/31/2009

12/31/2008

12/31/2007

ROA % (Net)

9.59

10.86

9.21

13.65

10.46

ROE % (Net)

29.55

31.97

30.62

44.89

32.93

ROI % (Operating)

24.73

27.53

23.25

33.1

25.06

EBITDA Margin %

14.34

14.69

13.25

18.51

13.9

Calculated Tax Rate %

26.45

25.48

26.18

26.35

22.42

Liquidity Ratios

12/31/2011

12/31/2010

12/31/2009

12/31/2008

12/31/2007

Quick Ratio

0.53

0.51

0.61

0.51

0.41

Current Ratio

0.8

0.92

0.93

0.81

0.73

Net Current Assets % TA

(7.66)

(2.73)

(2.13)

(7.26)

(9.73)

Debt Management

12/31/2011

12/31/2010

12/31/2009

12/31/2008

12/31/2007

LT Debt to Equity

0.55

0.5

0.64

0.64

0.44

Total Debt to Equity

0.96

0.66

0.83

1.13

0.78

Interest Coverage

12.11

13.23

10.55

14.28

9.45

Asset Management

12/31/2011

12/31/2010

12/31/2009

12/31/2008

12/31/2007

Total Asset Turnover

1.05

1.13

1.09

1.1

1.08

Receivables Turnover

10.75

11.7

10.98

10.08

9.47

Inventory Turnover

6.27

5.85

5.51

5.48

5.35

Accounts Payable Turnover

7.27

8.85

10.14

10.69

10.68

Accrued Expenses Turnover

12.48

11.7

11.53

12.62

12.42

Property Plant & Equip Turnover

5.59

6.11

6.32

6.6

6.4

Cash & Equivalents Turnover

16.02

17.85

15.31

22.09

37.61

Per Share

12/31/2011

12/31/2010

12/31/2009

12/31/2008

12/31/2007

Cash Flow per Share

1.94

1.95

2.06

1.37

1.35

Book Value per Share

10.91

11.06

9.21

7.59

9.54

Economic Environment

The environment in which Unilever is working has become highly competitive because there are a number of competitors arise in the market for example if we take the example of Indian market, they have made the competition tough for MNC's to operate in the region. Unilever is stressing on expanding their market globally this globalization

Product

It includes complete features and is comprised of goods and the related services that a particular company offers its customers. The product strategy and policy is of prime importance to an organization and all the decision taken related to product shows the direction and scope of that particular company. If we see Unilever, it has launched a number of products and has gained full confidence of their customer by producing the best of the products which would help in enhancing people's life. They have always thought about building up compelling and exciting visions for their brands.

Pricing

It is basically setting up a specific price of a product or service that is being provided by the company. Normally it is considered that a low price will attract more customer, though it not a valid argument as customer have different criteria of responding.

As far as Unilever is concerned, their pricing strategy has always been competitive with the market. As their products contain high quality so they charge a higher price but they do change their prices according to the norms of the global economy.



Placement

Placement of products involves the strategy according to which the company is about to provide the product and make it available in the market.

Unilever uses a number of retailers and distributors for the supply of its products in all the markets where the customer are expected to look for it. Its aim is to ...