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ACKNOWLEDGEMENT

I would like to acknowledge extremely valuable assistance provided by all my teachers for
their great cooperation. They provide the proper guidance and support time to time which
helps me a lot to work in such competitive environment and the timely completion of
assignments. The environment of my study centre is very good.

ABSTRACT

This assignment from the course of Managing Human Resource. My topic is Collective
Bargaining. This ASSIGNMENT is the part of my MBA study. In the specialization MBA,
University sends/asks all the students for prepare these assignments. The program helps the
students to understand the practical conditions of different organization and their cultures,
their values, their policies, marketing and competitive strategies and also their
implementation.
My basic purpose for doing this assignment was to analyze the history and complete process
of collective bargaining with relate to the case study of Unilever Pakistan. During this
assignment program I get practical data from official website of Unilever Pakistan. It is very
important for the student of MBA to get practical skills from any organization. For
completion of this assignment related to my topic I have collected data from different sources
I collect data through discussion with the teachers and my fellows and recommended books
from the university.

COLLECTIVE BARGAINING PROCESS


Introduction:
Collective bargaining is a process whereby trade unions, representing workers, and employers
through their representatives, treat and negotiate with a view to the conclusion of a collective
agreement

or

renewal

thereof

or

the

resolution

of

disputes.

A collective agreement is usually an agreement in writing between an employer and a union,


on behalf of workers employed by the employer. It contains provisions reflecting terms and
conditions of employment of the workers, and conferring to them their rights, privileges and
responsibilities.
Sometimes the terms bargaining and negotiating are used to describe the same process.
Theoretically, the term bargaining is probably better used to describe the economic
interaction between an employer and an employee which is finalized in the individual
contract, whether written or unwritten. When an employer hires a worker, he can demand
labour, and agree on a price for that labour. The offer, acceptance, consideration, and
intention to create a legal relationship constitutes a bargain to which compliance can be
sought in law. When trade unions negotiate a collective agreement with employers, the
process and the outcome are somewhat different. In the first place, trade unions do not sell
labour to employers, unlike individual workers. Likewise, employers do not pay trade unions
for work done..
The process of collective bargaining is in reality a series of negotiations, diplomatic and
political manoeuvres with the influence of economics.
Important sub-topics of Collective Bargaining:
For the purposes of this Convention, the term collective bargaining extends to all
negotiations which take place between an employer, a group of employers or one or more
employers organizations on the one hand, and one or more workers organizations, on the
other, for
1. Determining working conditions and terms of employment; and/ or
2. Regulating relations between employers and workers; and/or

3. Regulating relations between employers or their organizations and a workers organization


or workers organizations. trade union negotiator has to negotiate with his or her principals,
the general membership, as well as with the unions negotiating teams, even as the negatiator
negotiates with the employers. The employers negotiator is often in a similar situation.
Elements of submission:
Negotiators recognize that the submission must encompass various elements. Industrial
relations existed at the workplace before the entry of the union. A pattern of benefits,
conditions, rules and regulations is usually in place. The negotiator must make an assessment
of those provisions that are already adequate and those where improvements can be made.
In terms of wages/salaries and other areas of remuneration, the first agreement is for setting a
schedule in place, and must not be confused with a revision. In a situation where
wages/salaries are very far below the market value in circumstances that cannot be justified,
trade unions can sometimes achieve significant improvements for workers. In some cases,
wages/salaries may already be competitive in the market and the union may focus on
condition and other benefits. Traditionally, the trade union submits a list of changes which
forms the agenda for negotiations. In recent times, the list may be enclosed in a draft
collective agreement which helps to ensure that a collective agreement is signed early after
the closure of ngotiations.With recognition agreed, and proposals submitted, the union will
usually inform the employer of the names of the shop stewards at the workplace, and request
the extension of courtesies in the performance of their functions.
Composition of negotiating Team:
In some instances, union negotiations are led by paid professional staff members and in
others, by shop stewards from the workplace. In many instances, the manager, the human
resources manager, and the financial officer or accountant may lead the managements team.
Many trade union negotiating teams are led by generalists who have to develop expertise on a
wide area of subjects such as compensation practices, benefit schemes, pensions and safety
and health conditions. They must also have some legal training for drafting language in
agreements.

There is a growing tendency for specialists to sit on negotiating teams. Thus one person will
deal with pension issues, another with health care and so on. In large companies with human
resources management structures, there are officers who specialize in different areas of
industrial relations such as counselling, training, safety and health, negotiations, benefits,
managements and personal matters.
Key concepts:
Collective Bargaining involves three interrelated processes: research and preparation,
negotiation, and contract administration and evaluation
Research and preparation:
There are at least two things to prepare prior to negotiation: the research component, which
provides objective and tangible information necessary in the negotiation; and the definition of
basic negotiation strategies based on the analysis of the people, structure and context of the
negotiation.
Content of Research:
Collective bargaining proposals are based on the following indicators:
Standard of living The ideal standard of living is specifically how much an average family
should earn to reasonably live a decent human life. It is also use to determine the effect of
prices on the real value of wage. Ability to pay The financial ability of the company to
satisfy union demands, it indicates whether the company is gaining or losing. Comparativenorm principle The assumption that the economics of a particular bargaining relationship
should neither fall substantially behind nor be greatly superior to that of other employerunion relationships. Generally, it is good practice to keep up with the crowd, or to lead it if
necessary.
Sources of data
The Companys accounting department
As of companies in the same industry
National Census and |Statistics Office

Wage Commission
Foods and Nutrition Research Center
Central Bank
National Economic and Development Authority
Center for Research and Communication
Securities and Exchange Commission
Department of Labour and Employment
U.P. School of Labour and Industrial Relations
Ebon Foundation
Data gathering:
Data for Collective Bargaining purposes can be classified into primary and secondary.
Primary data:
These are facts gathered by the union directly from its members. They pertain to income,
expenditures, size of family and other similar information. Interviews and questionnaires can
be administered to gather this information.
Secondary data:
These are data gathered by agencies and published in periodicals or statistical bulletins.
Data analysis:
After gathering data, the union analyzes them in relation to the other elements of the
negotiation: communication, relationships, commitments, criteria, option, alternatives and
interests. Data analysis complements the determination and crafting of the Best Alternative
To Negotiated Agreements (BATNA) and the negotiation strategies.
Theoretical Framework Collective bargaining is a long, complex, and emotional-rational
process, the outcome of which depends on the balance of power between the union and
management and their bargaining stances (Ballot, 1992). It is defined by Byars and Rue
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(1991) as a process that involves the negotiation, drafting, administration, and interpretation
of a written agreement between an employer and a union for a specific period of time. This
process therefore involves proposals and counter-proposals, demands and counter-demands
wherein each party tries to obtain for itself the best or most favorable terms and conditions.
It also involves constant communication between the union and the management during the
effectivity of the written contract in order to avoid disputes in the interpretation and
implementation of its provisions. By the same token, Baldoz (1995) explained that collective
bargaining, which is basically a wage-setting and dispute settlement system, is the
centerpiece of the industrial relations in the Philippines. It is a procedure whose end result is
the making of collective agreements between employer and accredited representatives of
employees concerning political and economic issues of employment. It requires both parties
to deal with each other with open and fair minds, and to sincerely endeavor to overcome
obstacles existing between them to the end that industrial relations may be successful,
peaceful, and beneficial to both parties. However, collective bargaining does not end with the
execution of an agreement. It is a continuous process and involves a continuing legal duty.
As indicated, the end result of the collective bargaining process is a contract which is called
the Collective Bargaining Agreement or simply CBA. The CBA

stipulates the joint understanding of the union and management concerning wages, hours of
work, and all other terms and conditions of employment within the bargaining unit, including
mandatory provisions for grievance and arbitration machinery (BLES, 1998). In the USA,
about 2.4 million workers are under major collective bargaining agreements (those covering
1,000 workers or more) which are scheduled to expire or be reopened in 1996. These
workers constitute about 30 percent of the 8.2 million employees under such agreements in
private industry and State and local governments (Monthly Labor Review, 1996). In the
Philippines, 683,000 workers or 23.8% of the total 2.865 million workforce of 6,540
establishments were reported to be covered by collective bargaining agreements (CBAs) in
1997. The said companies with CBAs represented 15.1% of the total number of 43,358 firms
in the country in 1997. Per type of industry, the manufacturing sector, which constituted the
bulk of establishments, only had 18.3% of such firms with CBAs; while the financing,
insurance real estate and business services had 33.1% of such firms covered by CBAs making
it the industry with the biggest slice of companies with CBAs (BLES, 1998). Refer to
Appendix 1 for details. It can also be noted that the collective bargaining process seems to
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differ more in style than in substance. Scarth (1994) in his study identified two styles,
namely: (1) the adversarial and (2) the cooperative. The adversarial style involves a high
degree of animosity and antagonism between the union and management during the
negotiation, while the cooperative style is more of a collaborative effort between the union
and management to arrive at an agreement. Power (1996) added a new contract negotiation
style called target-specific bargaining. This model is a team- based, interactive process
which helps one organization and its bargaining unit/s bury old tensions and sign long-term
agreements.
Viewing collective bargaining as a dynamic and complex process of encounter between the
management and the union, whose respective goals differ from one another, the above
diagram summarizes the collective bargaining framework of the study. Using the inputoutput model of Kast and Rosenweig (1974), the collective bargaining process is considered
as the input, while the collective bargaining agreement which stipulates the economic and
political issues negotiated is the output. The factors of success and the problems encountered
are then considered to be the conversion variables. The input-output process is then assumed
to be affected by both the internal environment represented by the union and company
situations and the external environment the most important factors of which are the economic
and political scenarios.
Formulation and submission of proposals:
The union formulates two studies:
1. Collective Bargaining proposals for submission to management
2. Arguments supporting the demands for the negotiators to master or to present to the
Department of Labor in case of deadlock. These arguments will be used to respond to the
objection posed by management. In case of deadlock, they can also serve as exhibits worthy
of consideration as the arbiter decides over the merits or demerits of the case. Before
submission to management, the proposals are reviewed by the unions executive board, which
in turn presents them to the general membership for approval.
Negotiation:
Our usual assumption of negotiation is that it is a win/lose game, where in cases of conflict,
negotiating strategies at the table should be focused on outwitting and overpowering the other
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party. The objective of the other party is to force the other to give in. This notion of opposing
positions often pervades in collective bargaining deadlocks. The win-lose assumption
compels the parties to choose the strategy of either capitulation (soft style) or confrontational
(hard style) or a combination of both. It becomes a rigodon of hard and soft bargaining
between the parties.
Do you want it hard or soft?
Hard negotiation and soft negotiation are usually associated with the basic win/lose
assumption of positional bargaining. Either party can resort to hard negotiation when the
other takes the soft strategy, or both parties can meet head on, clash and reach an impasse.
Hard or soft positional bargaining usually feels illegitimate and may not meet partys interest.
A party that uses this techniques:
Gives value to the relationship and may not be able to separate the issues from the persons
Has reaching an agreement as its primary goal
Is soft on people and on problem, to the extent that it makes concessions in favor of the
relationship
Makes offers and changes positions easily
Accepts one-sided losses just so an agreement can be reached
Searches for even a single acceptable position
Avoids contest of will and yields easily to pressure
A party that uses this techniques:
Considers the other party as an adversary
Requires concessions as a condition of the relationship
Has victory as its primary goal
Is hard on people and on the problem Makes threats and is critical of the other partys
positions

Considers one-sided gains as the end result of the agreement


Searches for even a singly acceptable position
Tries to win a contest of will and will apply pressure
People:
In negotiations, it is important to make an analysis of the persons involved and affected by
the negotiations. Two related levels of behavioral assessment are important: individual and
social (or collective) It is important to understand that people have different histories, values,
experiences, and motivations, interest and style. Recognition of individual biases and
perspective helps you understand people and their approach in the negotiations. Socially, in
terms of culture or race or when, for example, in informal sector negotiations involving
different individuals and groups, it is important to note a variety of socio- cultural and
psychological dynamics that influences the process and outcome of negotiation.
Context:
The context defines the situation that shapes the negotiation and defines the expectations on
how it should be approached. For example, negotiation for project and technical cooperation
between formal sector groups and funding agencies may be approached within the context of
collaboration and confidence-building initiatives, with the end in view of establishing good
relationships. There are at least three important interrelated elements of negotiations that need
to be considered: communications, relationships and commitments.
The context of the negotiation defines decisions on the systems of communication between
the parties, on whether the negotiations should be creating a one-shot during negotiation
relationship or long term, on whether the result should be written or should be verbal
commitments.
1The Collective bargaining process comprises of five core steps:
1. Prepare:
This phase involves composition of a negotiation team. The negotiation team should consist
of representatives of both the parties with adequate knowledge and skills for negotiation. In
this phase both the employers representatives and the union examine their own situation in
order to develop the issues that they believe will be most important. The first thing to be done
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is to determine whether there is actually any reason to negotiate at all. A correct


understanding of the main issues to be covered and intimate knowledge of operations,
working conditions, production norms and other relevant conditions is required.
2. Discuss: Here, the parties decide the ground rules that will guide the negotiations. A
process well begun is half done and this is no less true in case of collective bargaining. An
environment of mutual trust and understanding is also created so that the collective
bargaining agreement would be reached.
3. Propose: This phase involves the initial opening statements and the possible options that
exist to resolve them. In a word, this phase could be described as brainstorming. The
exchange of messages takes place and opinion of both the parties is sought.
4. Bargain: negotiations are easy if a problem solving attitude is adopted. This stage
comprises the time when what ifs and supposals are set forth and the drafting of
agreements take place.
5. Settlement: Once the parties are through with the bargaining process, a consensual
agreement is reached upon wherein both the parties agree to a common decision regarding the
problem or the issue. This stage is described as consisting of effective joint implementation of
the agreement through shared visions, strategic planning and negotiated change.

Conclusion:
Although the Philippine Labor Code guarantees the right to collective bargaining to workers
through their trade unions, and stipulates the procedures for the administration of collective
bargaining agreements, the collective bargaining process remains to be a time-consuming and
complicated encounter between management and union.

It becomes time-consuming

because of the length involved in preparing the proposals and counter proposals, the long
hours spent during negotiations which is stretched over an average of nine (9) months, and
the monitoring of the implementation of the CBA which is for a period of three-five years. It
is complicated because of the varying strategies and tactics used by both parties in the prenegotiation and actual negotiation stages of the collective bargaining process.

The

composition of the respective panels of negotiators add to the complexity of the process,
particularly the presence of a lawyer which makes it even more legalistic. The differing
attitudes and goals of the panel members might have dictated the number and types of
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specific strategies each party employ in the entire process of the bargaining.

Since the

negotiating parties are in the distributive bargaining strategy framework, they encountered
several problems during the negotiations.

The union expressed more difficulties than

management and the most prevalent concern was the lack of skills for negotiations while
management cited the lack to willingness of the union to compromise. However, the type of
industry to which the company belongs, and the unions membership in a federation, have no
correlation with the numbers of strategies and success factors identified by both union and
management. These two realities also did not lead to any significant differences in the
number of strategies employed by the parties and the member of success factors experienced
by both panel of negotiation..

The actual CBA political and economic provisions are

focused primarily on wages, benefits, and other terms and conditions of employment in the
bargaining unit, including mandatory provisions for grievance. The number of economic
issues negotiated by the union are significantly different according to the type of industry.
The unions in the non-manufacturing sector were able to get more than the manufacturing
industry. On the other hand, number of political issues bargained by the federated unions are
significantly different from the independent unions. They are able to get more than the unions
which are independent. These provisions are related to union leave, union security, and union
assistance. Lastly, both management and union have the same perception on the factors that
will contribute to the success of the collective bargaining process. The foremost of which is
trust between parties.
While so much has been done in recent years to identify and reduce some of the prime
causes of industrial conflict, the future depends on the will of management and trade unions
to resolve issues which may divide them and to develop more constructive relationships.

CASE STUDY
UNILEVER PAKISTAN Ltd
INTRODUCTION
Unilever International Ltd (one of the largest multinational companies) is the member of
Unilever PLC London. Unilever was formed in 1930 when the Dutch Margarine Company
Margarine Unie merged with British soap maker Lever Brothers. Companies were competing
for the same raw materials, both were involved in large-scale marketing of household
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products and both used similar distribution channels. Margarine Unie grew through mergers
with other margarine companies in the 1920s.
Unilever was founded in 1885 by William Hesketh Lever. Unilever established soap factories
around the world. In 1917, he began to diversify into foods, acquiring fish, ice cream and
canned foods businesses. In the Thirties, Unilever introduced improved technology to the
business. The business grew and new ventures were launched in Latin America. The
entrepreneurial spirit of the founders and their caring approach to their employees and their
communities remain at the heart of Unilevers business today. Unilever NV and Unilever
PLC are the parent companies of what is today one of the largest consumer goods businesses
in the world. Since 1930, the two companies have operated as one, linked by a series of
agreements and shareholders that participate in the prosperity of the whole business.

Unilever Pakistan Limited (UPL):


The Unilever Pakistan Limited (UPL), formerly Lever Brothers Pakistan Limited was
established in Pakistan in 1948. The town of Rahim Yar Khan was the site chosen for setting
up a vegetable oil factory. Its earlier headquarter was situated at Rahim Yar Khan. But it was
shifted to Karachi from Rahim Yar Khan Site in the mid 60s. Unilever is now operating six
factories at different locations around the country.
Unilever Pakistan Limited is largest fast moving consumer Products Company in Pakistan.
Unilever Pakistan Limited is a part of Unilever- a global company. Unilever Pakistan Limited
is producing more than 50 brands in Pakistan. Unilever has a long list of brands such as Surf,
Vim, Rin, Lifebuoy, Sunlight, Lux, Rexona, Sunsilk, Close-Up, Blue-Band, Dalda, Planta,
Liptons Yellow Label, Taaza and Richbru, Brook Bonds Supreme and Kenya Mixture etc.
Unilever Pakistan limited is a wholly owned subsidiary of Unilever Overseas Holding, UK,
Unilever PLC (A company incorporated in the United Kingdom). The Company is
incorporated in Pakistan and listed on the Karachi, Lahore, and Islamabad Stock Exchanges.
Operational achievements

Unilever is one of the worlds top three food firms after Nestle and Kraft Foods.
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It is worlds second largest packaged consumer goods company behind Procter &
Gamble

Strong broad-based underlying sales growth of 7.4% across categories

More competitive cost base: 1.1 billion savings from supply chain and organizational
efficiencies

Increased investment behind its brands

Portfolio reshaped through disposals, including North American laundry, Boursin,


Lawrys and Bertolli olive oil

Portfolio strengthened through the acquisition of Inmarko ice cream in Russia and the
planned acquisition of the TIGI hair salon brands

Named International Supplier of the Year by Tesco for the third year running

Brands of Unilever:
Unilever is currently one of the biggest consumer goods company in the world having various
brands. Their leading brands have international appeal because they meet a need or fulfill a
desire that people share, no matter where they live. Some of their major brands available in
Pakistan are:
Planning
Planning is a management function that involves defining goals, establishing strategies,
developing plans to integrate and coordinate activities. In Unilever most of planning is done
by the top management of the company. And they make plans relating to marketing of
products like advertisement of product through different mediums like electronic or print
media.
Upper-managements consist of:

Chairman

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President

Board of directors

Organizing
Organizing means determining what needs to be done, how it will be done and who is to do
it?
Organizing is definitely a very important function performed by a manager. In Unilever
organizing is even more important because of its vast size and multinational status. And they
organize their employees by assigning them appropriate work that is related to their
designation and according to their abilities.
Leading
Leading involves motivating, leading and any other actions involved in dealing with the
people.
Marketing manager in Unilever leads his employees as well. He has to motivate and inspire
them in times of disappointment and guide them in certain matters of work. One such
example is when one of employees was not able to work properly because of some uncertain
reason, in this situation he had to step in and motivate him to concentrate on his work. He
also tries to have good relation with his employees to be able to lead them properly.
Controlling
Controlling means monitoring activities to ensure that they are being accomplished as per the
plan.
In Unilever all employees are expected to avoid personnel activities and financial interests
which could conflict with their responsibilities to the company. Manager tries to make sure
that his department is working according to the instructions assigned to them and they are not
involved in any time wasting activities. He evaluates the results after every certain time to
make sure the goals assigned to him and his department is being achieved as expected. If
there is any ambiguity in work then he informs the employee responsible and guides him in
the matter and takes action according to the circumstances.
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ORGANIZATIONAL COMMUNICATION AND STRUCTURE OF UNILEVER


In Unilever the organizational structure is share structure in nature. As it is multinational
corporation and almost all such type of organizations have decentralized structure. Unilever
also has decentralized structure in most departments but in most of its departments the
structure is combination of centralized and decentralized structure.
Culture
Shared values, traditions and norms of a company and internal behavior of an organization
are known as its culture.
Unilevers Culture
In Unilever, the culture is consumer-oriented and they consider more their customers and also
tried to give their best services.
Unilevers culture varies from country to country. The most important are their high standards
of corporate behavior which are enshrined in our code of business principle. Here at Unilever
we value colleagues as individuals, were friendly towards each other and we are informal in
terms of corporate behavior and, to a large extent, dress code. Finally, we believe in every
ones ability to develop and grow. Whatever our functions, role or level, we all have an equal
right to take advantages of learning opportunities and progress how we want to in our chosen
career.
Environment
The factors and forces in the area in which organization is operating are called its
environment.
External Environment
External environment includes those factors and forces outside the organization that affects
the organization performance. There are basically two types of factors affecting an
organization from external environment.
General Environment
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The general environment includes:

Economical factors

Political factors

Technological factors

Global factors

Socio-cultural factors

Demographic factors

All these factors have an equal impact on Unilever and its operations as does the specific
environment of Unilever. political factor had a huge impact on Unilevers operations in
Pakistan because of instability of this factor in Pakistan. Other than that other general factors
of external environment including technological factor, global factor, socio-cultural factor,
demographic factor and economical factors also have huge impact on the organization.
Structured Problems and Programmed Decisions
Structure problems are regular problems which a manager has to face on frequently. They are
straight forward problems and information for these problems is complete and well defined.
These problems are solved by programmed decision making. Programmed decision making
includes decisions which are repetitive and can be handled using routine approach. they use
MIS system for solving structured problems related to marketing. The three types of
programmed decisions are:

Procedure

Rule

Policy

SWOT ANALYSIS OF UNILEVER


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SWOT analysis, is a strategic planning tool used to evaluate the strengths, weaknesses,
opportunities and threats involved in a project or in a business venture. It involves specifying
the objectives of business venture or project and identifying the internal and external factors
that are favourable and unfavourable to achieving that objective. The SWOT analysis
classifies the internal aspects of the company as strengths and weaknesses and external
situational aspects as opportunities and threats.
Strengths:
Strengths are internal factors to the organization. Unilever is one of worlds leading fast
moving consumer goods (FMCG) companies. In year 2008 its Net profit increased from 4136
Millions to 5285 Millions (euro). Major strengths of Unilever are as following:

The first and most important strength of Unilever is the image of the company itself.

Strong brand names. Most of Unlivers brand names are leading products in their
particular category e.g. blue band, surf excel etc.

Unilever has got Sound and experienced management with qualified executives
running operations.

Excellent marketing department assisted by a highly regarded marketing research


unit.

Merger with Brooke bond was expected to result in cost saving and spur earnings
growth and its working as per expectations.

Unilever products have good reputation among their customers because of good
product quality.

Diversity of its product line is also a major strength of Unilever.

Weaknesses
Weaknesses are that what the organization cannot do but its competitors can do better than it.

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About 80% of raw material is imported for the manufacturing of the consumer goods.
Raw material constitutes about 85% of manufacturing cost, leaving Levers margin
exposed to rupee devaluation.

Rampant smuggling of tea and detergents has seriously affected levers sale and
earning. Unless the govt. takes serious steps to curb smuggling growth in sales and
earning will continued to be significantly restrained.

One of the weaknesses of Unilever and its products especially when selling in a
developing country like Pakistan is its product prices which are a little if not more
higher than what a regular rural person could afford.

Another weakness for Unilever is what should be its major strength as well. The size
of corporation is so huge that its difficult to manage all the units and their specific
departments. So sometimes some products get more attention and some stay hidden
from sight.

Opportunities
Opportunities are the chances for an organization to do better.

The rapid expanding urban population in Pakistan is the key opportunity for Unilever
to extend its sales.

Awareness growing in rural areas due to education and children with family members
abroad sending foreign income is also potential costumers for Unilever.

Unilever can also stretch their market to African countries where there could be a
large market for their products in the future.

Threats
Threats are the hurdles for an organization to proceed.

Procter & Gamble is the significant multinational company and a major threat with
presences in soap, detergents and personal products.
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Rise in the inflation rate in the world because of economic crisis can also results to
fall in sales of the company due to low purchasing power of consumers. Inflation rate
also affects companies cost of production because rise in prices of raw material

There are many competitors of Unilever in Market including P&G, Nestle and Kraft
Foods who are fighting hard to leave one another behind.

Instability of Pakistani Political system has always been a major threat for companies
operating in Pakistan and its not different for Unilever. Changing political system
affects Pakistani economy as well as organizations operating under it.

There is also a trend of rising small competitors in Pakistan in consumer product


industry recently which can also affect Unilevers sales especially in rural areas.

Conclusion
Unilever is a very strong multinational corporation with a lot of strengths, including its strong
management, to run its operations to the heights of success. There are different types of issues
about collective bargaining with Unilever International at global level that could be easily
resolved by management. Unilever has its different brands in the different countries with
respect to the culture of the country. It also has a few weaknesses but those are very minor
ones that are present with every organization and it also has got the resources and managerial
muscle to cope with those weaknesses and threats. It also has major opportunities to flourish
its business to African continent and to rural areas in developing countries like Pakistan and
India. In the near future with globalization of world continuing Unilever will be even bigger
and stronger.
RECOMMENDATIONS:Whereas in the past negotiations tended to be focused around a union claim, c o m p a n i e s
a d o p t i n g a h u m a n r e s o u r c e s m a n a g e m e n t a p p r o a c h , t e n d t o want to set the
agenda, which in an unionized environment places unions in the position of responding to
management's demands. Congress, in its policy document 'Managing Change' sets down
a strategy for a more participative and non-adversarial style of collective
bargaining within the context of the global competitive environment for business.

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REFERENCES
1. http://education.lokoi.com/unilever-management-report
2. http://www.theofficialboard.com/org-chart/unilever-pakistan
3. Organizational Behavior and Management by John M. Ivancevich (shelved 2 times as
organizational-behavior)
4. www.google.com
5. www.wikipedia.com
6. www.unilever.com

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