Globalization and international trade have provided a great opportunity for Unilever in order to expand its market and to achieve economic effectiveness. As it can be analyzed that Unilever at present operates in more than 190 countries and further can expand to other untapped markets. Also, in terms of the human resource, Unilever has
developed a diverse workforce which has been recruited from different parts of the world, so that their skills can be utilized in order to achieve organizational development and expansion. Such practices and business opportunities have contributed towards ensuring the establishment of Unilever’s position as a leading brand within the international market .
Therefore, it can be analyzed that globalization, as well as international trade, had a great impact on the organization in terms of sales and revenue growth through market expansion. Also, it has contributed towards analyzing and understanding the international market and accordingly the promotion of product innovativeness and technology adoption. As in every nation or society, the customer has different needs and requirements and accordingly the management is able to develop its market effectiveness and to be a competitor. The product range being served by Unilever within the industry, is an effective example of such product effectiveness, as depending upon the needs at the international level, Unilever has introduced brands to attract the customer and to retain organization’s position within the industry.
The key challenge in international trade for Unilever is to ensure that the right product can be made available to the audience at the required place and time. However, operating in an international market requires a lot of research and marketing so that the customer’s interest areas can be identified and accordingly the business practices can be executed. Therefore, the key challenge being faced by Unilever due to globalization is the procurement and retention of talent or human resource. As in absence of a skilled and experienced workforce, the management will not be able to deal with such a competitive and challenging international environment and will ultimately lose its position.
ORGANISATIONAL STRUCTURES OF BUSINESS OPERATING IN THE INTERNATIONAL MARKET
The organizational structure of a company within the market contributes towards defining its effectiveness and further growth opportunities in the international or competitive business environment, as a result, it is required that an effective organizational structure is being established so that the internal effectiveness can be
retained and further development can be ensured. Depending upon the business needs and requirements the management focuses towards developing organizational structures in the international market.
Focusing on Unilever, it can be identified that the management has established a divisional organizational structure in order to conduct business operations in the international environment. Under such a structure, the management develops certain divisions and employees the specific manager and leaders for the particular division and they are being provided with the rights and responsibilities in order to take decisions depending upon the situational requirements and to lead the business. The decisions are being made at the divisional levels and are implemented in the specific department or the division.
Apart from such a form, the organizations also have the organizational structure defined as the centralized structure, under which the head office or the board takes all the decisions and such are being implemented throughout the organization in the international market. Such a type of organizational structure is being adopted by the organizations dealing in standardized products, which does not have a specific need for the localization or the divisional approach. Also, the divisional aspect being adopted by Unilever can be further be defined as product-based division, area-based division or functional-based division within the international market.