IV.

PROBLEM List the top three problems your business, product or service is
addressing.

1. Uncertainty and Sustainability

We live in an uncertain and constantly changing world. All human beings,
but it seems business leaders in particular, find great discomfort in
uncertainty. And it impacts our business significantly in terms of growth, cost
or risk. Uncertainty in the global economy, uncertainty in the credit markets,
uncertainty in how new regulations will affect business, uncertainty about what
competitors are doing, and uncertainty about how new technology will affect
the business—these are just the start of a never-ending list. The bottom line is
that uncertainty leads to a short-term focus. However, Unilever has constantly
championed the business impact of sustainability, not just its social and
environmental impact. But the attempt by Kraft Heinz to buy Unilever in 2017
show it has not fully won that argument (Fleming, 2018). And speaking of
sustainability, Unilever has set itself a tough challenge. Sustainability, it
recognizes, is important to consumers and so it is important to Unilever. But
can this importance be reflected without impacting growth and profitability? As
the company puts it: "Unilever's vision to double the size of our business while
reducing our environmental impact will require more sustainable ways of
doing business. This means increasing the positive social benefits of
Unilever's activities while reducing our environmental impact." To me, the risk
here is around growing the business. In terms of ensuring sustainability, the
company can point to the Unilever Sustainable Living Plan, which sets clear
longterm commitments for environmental impact, underpinned by specific
targets in areas such as sustainable sourcing, water availability and usage,
waste, and greenhouse gases. These, in turn, are monitored by the Unilever
Sustainable Development Group, comprising five external specialists in
corporate responsibility and sustainability. Also, the problem to be solved, is
to balance the need for a more reactive, short-term focus with the need
for informed, long-term strategies. It is important to our stakeholders – such
as investors, society, consumers, customers (retailers), suppliers and our
employees. And lastly, developing better systems-thinking capability so we
can design our business models, processes, products and services in a way
that minimizes unnecessary complexity.

2. Supply Chains
Companies are maintaining lower inventories than ever before due to
demand unpredictability and the necessity to be lean. At the same time,
supply chain planning is more difficult than ever, because to drastically
changing commodity prices, an apparent increase in weather-related
interruptions, and increased competition for raw materials. Unilever is a
multinational company with international supply chains. However, what
happens to profit and revenue when those supply chains
are interrupted? "Our business relies on procuring high-quality supplies,
efficient manufacture, and timely delivery of goods to our clients," according to
Unilever. Our supply chain network is vulnerable to events such as physical
disruptions, environmental and industrial accidents, or the bankruptcy of a
major supplier, all of which might have a negative effect on our ability to
fulfill orders to consumers. What steps are taken to mitigate these risks? By
policies aimed at reducing risk in the first place, as well as contingency plans
for dealing with the aftermath of any interruption that does occur. For
example, such plans are meant to allow the corporation to rapidly source
alternative material suppliers, transfer or share production between
manufacturing facilities, and employ substitute components in product
formulations and recipes. These contingency plans also include the ability to
intervene immediately to assist a major supplier if it is in difficulties or at risk of
negatively affecting a Unilever product for any reason. Another option is to
develop a supply-chain plan that provides the lowest costs while
simultaneously reducing the risk of supply-chain disruptions. Many
businesses are at a disadvantage due to a lack of sophisticated approaches
to data collecting, analysis, and the development of unique insights.

3. Competitors
Other fast-moving consumer goods (FMCG) companies with comparable
structures and sizes are Unilever's main competitors. The consumer products
industry's environment is undoubtedly competitive. Several major corporations
are competing for a share of the global market. For example, Procter &
Gamble, the world's largest consumer goods company, Nestlé, Colgate-
Palmolive, and Johnson & Johnson, all of which are based in the United
States. They are all in fierce competition with Unilever and operate globally,
but they make an effort to understand the needs of customers in each country
where they do operation. In addition to that, in this time of pandemic, most
people are used to thinking about a business that will help them with their
financial problems. And many of them choose to sell and produce products
that could actually be one of the competitors of Unilever. Retailers are putting
more emphasis on own-brand products, and bigger brands are now having to
compete with cheaper rivals. One of the possible solutions to this problem is
to increase cash flow by reducing costs. Unilever’s marketing continues to
engender loyalty among consumers so that they don’t defect to cheaper
options.
V. OPERATION OF THE PROPOSED BUSINESS

A. Organization. This is the part of the business plan that describes the
following:

1. Type of ownership and rationale;

Partnership
A partnership (or general partnership) is a business owned jointly by two or
more people.
The Partnership Agreement
The impact of disputes can be lessened if the partners have executed a well-
planned partnership agreement that specifies everyone’s rights and
responsibilities. The agreement might provide such details as the following:
Amount of cash and other contributions to be made by each partner
• Division of partnership income (or loss)
• Partner responsibilities—who does what
• Conditions under which a partner can sell an interest in the company
• Conditions for dissolving the partnership
• Conditions for settling disputes

2. Start-up steps to form the business;

• Conduct market research

Market research will tell if there’s an opportunity to turn our idea into a
successful business. It’s a way to gather information about potential
customers and businesses already operating in the area. We use that
information to find a competitive advantage for our business.

• Writing business plan

The business plan is the foundation of the business. It’s a road map for how to
structure, run, and grow the business. We’ll use it to convince people that
working with us — or investing in our company — is a smart choice.

• Funding business
The business plan will help us figure out how much money we’ll need to start
our business.

• Picking business location

Business location is one of the most important decisions we’ll make. The
choices we make could affect our taxes, legal requirements, and revenue.
• Registering the business
To make it legal and protect the brand.

• Apply for licenses and permits

Keeping the business running smoothly by staying legally compliant. The
licenses and permits that need for the business will vary by industry, state,
location, and other factors.

• Open a business bank account

A business checking account can help handle legal, tax, and day-to-day
issues.

3. Personnel (or functional) needs;

• Operations manager. This individual is the leader for the operation and has
overall responsibility for the financial success of the business. The operations
manager handles external relations with lenders, community leaders and
vendors. Frequently, this individual also is in charge of either production or
marketing for the business. This person will set in motion the vision, strategic
plan and goals for the business.

• Quality control, safety, environmental manager. This is a key function in any

industry and, in particular, one that deals in food products. In a small
business, one person generally will be responsible for handling OSHA
compliance, EPA compliance, monitoring air and water quality, product
quality, training of employees in each of these areas and filing all necessary
monthly, quarterly and yearly reports.

• Accountant, bookkeeper, controller. This is another key function. The

individual filling this role has the responsibility for monthly income statements
and balance sheets, collection of receivables, payroll and managing the cash.
The key aspect here is managing the cash.

• Foreperson, supervisor, lead person. This individual is the second-in-

command in the shop and will oversee production in the absence of the
owner, general manager or president. This position usually will have an
overall understanding of all aspects of the business and also will handle
working with new employees, including setting up training and schedules.
• Marketing manager. If finances permit, a marketing manager may be on staff
to handle all aspects related to promoting and selling the product.

• Shipping and receiving person or manager. This may not be a full-time

position in a start-up business. Someone, however, needs to be assigned the
task of packaging, ordering transportation for delivery, receiving incoming
material and warehousing of finished goods and stock.

4. Proposed staffing to handle managerial, financial, marketing, legal,

production functions; proposed organizational chart;

5. Brief job descriptions

B. Product/Service. This section should include the following information:

1. Product/service details include potential suppliers, manufacturing plans,

and inventory policies.

• Unilever products include food, condiments, ice cream, wellbeing vitamins,

minerals and supplements, tea, coffee, breakfast cereal, cleaning agents,
water and air purifiers, pet food, toothpaste, beauty products, and personal
care.
• Unilever is the largest producer of soap in the world.
• Unilever's products are available in around 190 countries.
• Unilever owns over 400 brands.
• Unilever is organized into three main divisions: Foods and Refreshments;
Home Care; and Beauty & Personal Care.

To become a Unilever potential supplier any individual, business, or

organization wanting to partner with us needs to go through our Unilever
Supplier Qualification System (USQS).

Our supplier qualification system:

• Identifies approved partners for the products and services we want to buy
• Allows us to better understand the potential risks of buying products or
services in various geographies
• Helps us identify which partners need our help improving their standards
• Keeps Unilever and our partners accountable when faced with changes to
regulations and legislation, locally or globally.

When it comes to inventory policies, Unilever applies the perpetual method

and periodic method of inventory management.
• Perpetual method - cost of goods sold is calculated and recorded with every
sale.
• Periodic method - cost of goods sold is calculated at the end of the period
only and recorded in one entry.

2. Transportation information: costs, benefits, risks of the transportation

method, documents needed to transport the product.

Benefits
• Transportation is among the more vital economic activities for a business. By
moving goods from locations where they are sourced to locations where they
are demanded, transportation provides the essential service of linking a
company to its suppliers and customers.

Risks of the transportation method

• Regulatory Oversight
Standards and regulations will vary by organization and location, so it’s
important to research specific requirements.
• Cyber Attacks
Cyber liability is probably not the first thing that comes to mind when looking
at the transportation industry, but every industry increasingly faces exposure
to cyber risks. Due to technological advancements in the transportation
industry and their role in automation and supply chains, cyber attacks pose a
large risk. This risk is spread through third parties and partners such as
suppliers and vendors.
System failure can prevent the ability to receive or ship orders, hackers can
tamper with customer travel plans or change destinations, and criminals can
steal PII from third party systems. Within the field of cyber attacks, there are
many risks to account for within each organization. Having a response plan in
place for each scenario and knowing the security requirements for each state
are crucial to minimizing risk.
• Driver Shortages
While this shortage exists, pressure on the existing workforce will
continue to increase as companies push workers to the legal limits
of how many hours they drive per day to meet demand.
• Deteriorating Infrastructure
Outdated and failing infrastructure is increasingly dangerous for vehicles.
These problems range from road destruction (potholes, cracks), construction,
and missing or incorrect signs.
This adds strain to the drivers and on company resources that spend more in
fuel and transportation time.
• Weather
Transportation risk will always include weather conditions, which can affect
the ability and time set to deliver. Temperature and weather conditions can
vary drastically within just a hundred miles, crossing from sunny weather to
blizzard-like conditions or severe rain. Flight, railroad, ship, or driving
conditions can become unsafe and cause unexpected delays.
While its impossible to predict exact weather, incorporating preparedness and
buffer windows into practice and training for various weather will help reduce
the risk that weather causes.

Documents needed to transport the product.

• Bill of Lading (BL or BoL) - a legal document issued by a carrier to a
shipper that details the type, quantity, and destination of the goods being
carried. A bill of lading also serves as a shipment receipt when the carrier
delivers the goods at a predetermined destination.
• A freight bill - referred to as a bill of lading, a legal contract between the
shipper and the carrier. It is used by accounting personnel as support
documentation to justify billing the shipper or the receiver, depending on the
terms of the contract, for the successful delivery of goods.
• Free on Board (FOB) - a shipment term used to indicate whether the seller
or the buyer is liable for goods that are damaged or destroyed during
shipping. "FOB shipping point" or "FOB origin" means the buyer is at risk once
the seller ships the product.

3. Features. What are the top three features of your product/service?

• We offer Foods and Refreshments; Home Care; and Beauty & Personal
Care.
• We meet everyday needs for nutrition, hygiene and personal care with
brands that help people feel good, look good and get more out of life.
• We owns a number of globally known brands, such as Dove soaps and
Knorr food products. Personal Care – including sales of skin care and hair
care products, deodorants and oral care products.
C. Market and Marketing Strategy Plan. This section of the international
plan describes the following:

1. Customer Segments. Who are the target customers? Describe the target
market (age, income level, population estimate, other specific demographic
and economic information), customer buying behavior related to the proposed
product and/or service.
CUSTOMER SEGMENT

GEOGRAPHIC DEMOGRAPHIC PSYCHOGRAPHIC BEHAVIORAL

LOCAL AND - All ages - Experiencers - Complete

INTERNATIONAL - Male and - Believers or care
Female motivated people - Benefits
- Different - Strivers sought
life stages - People who - User
- High and are driven by status
upper quality and - Usage
middle performance rate
income - Regularly updates
groups themselves on
current news/TV
viewers.

2. Flow of goods and services from production to the customer. It might

include inventory or storage of manufactured products, shipping, inventory
control procedures, and customer support services.

➢ In order to achieve high productivity, Unilever focuses on business

procedures that are both effective and efficient. It is in this part that the
locations where Unilever does business with consumers or potential
customers are listed, which reflects the company's extensive reach in the
consumer goods market. The following are the locations where Unilever
distributes its goods. Such as retailers, kiosks, and stores. Unilever's goods
are sold primarily through retail stores. One of the largest merchants in charge
of delivering these consumer items is Walmart. Kiosks are sometimes used by
Unilever for direct new products and personal marketing. These kiosks are
used by the corporation to market a restricted number of items in collaboration
with retail partners. In addition, some of their items are available in stores.
The goals of a location strategy are to maximize productivity and minimize
expenses. In order to reach its target markets, Unilever wants to keep
manufacturing and transportation costs low. The company's operations
management keep its operations close to labor markets, suppliers, and target
customers in order to maximize efficiency. It also avoids places with political
and cultural concerns that have an unfavorable impact on operational
efficiency. This strategy helps Unilever's operations remain productive.
Furthermore, inventory management is to provide the best possible inventory
ordering and holding. In order for Unilever to respond to market changes, the
company has an appropriate supply of consumer products on hand at all
times. The company's inventory, for example, is large enough to meet
unexpected increases in demand. As a result, Unilever's inventory managers
must precisely calculate the amount of materials and completed items
required. These amounts must be enough to support the business'
productivity goals. Unilever uses inventory management techniques such as
the perpetual method and the periodic approach to accomplish this. Inventory
objectives are also fulfilled through just-in-time (JIT) inventory management.
JIT lowers inventory holding time and associated expenses at Unilever. As a
result, Unilever intends to provide distinctive and real customer service that is
peer-to-peer. For Unilever, a 24/7 service approach, in any language, with the
flexibility to flex on-demand to accommodate spikes in question volume is also
a priority. All of this must be accomplished at a reasonable price, with the goal
of reducing waste and increasing profits. By using limitless to discover and
recruit "Ambassadors" of the brand, Unilever has been able to identify and
attract loyal customers. As a result, these Ambassadors will be able to assist
other customers with their queries. Ambassadors from across the world
advocate diversity and inclusiveness, and they assist to supplement traditional
customer service with actual product knowledge and personal experiences.
Oracle Transportation Management's automated transport planning
algorithms, on the other hand, provided insight into Unilever's transport and
logistics planning and decision-making processes. According to Wendy
Herrick, Unilever's digital supply chain vice president in the United States, it is
an internationally recognized system with the versatile flexibility required to
serve a global organization. While Unilever has implemented Oracle
Transportation Management throughout its worldwide logistics network, the
company's road to sustainable business has been helped by the
implementation of Oracle Transportation Management. For just-in-time
delivery, Oracle Transportation Management Cloud's advanced logistics
planning logic helped Unilever minimize the number of trucks required, cut
carbon, and decrease inventory needs.
3. Pricing policies: what currency will be used, costs, markups, markdowns,
relation to competition, factors that could affect the price of the product such
as competition, political conditions, taxes, tariffs, and transportation costs.

4. Promotional program: promotional activities, media availability, costs, and

1-year promotional plan outline.

D. Financials

A. Projected income and expenses (The following items are recommended for
inclusion. You may select the appropriate items for your business.)

1. Projected income statements by month for the first year’s operation (sales,
expenses, profit/loss)

2. Projected cash flow for the first year

3. Projected cash flow by month for the first year’s operation

4. Projected balance sheet, end of first year

5. Projected three-year plan

6. A brief narrative description of the planned growth of the proposed

business, including financial resources and needs

B. Proposed plan to meet capital needs (The following are recommended

items for inclusion. You may select the appropriate items for your business.)

1. Personal and internal sources

2. Earnings, short-term and long-term borrowing, long-term equity

3. External sources

4. Repayment plans

5. Plan to repay borrowed funds or provide return on investment to equity

funds