Unilever Plc

Executive Summary:

This financial report assessment aims to provide an analysis of Unilever’s financial strategy. A company’s financial strategy is crucial in terms of its financial performance in regard to its position in the market. If a company chooses the incorrect financial strategy, it can negatively affect the overall performance of the company and investors will be discouraged to carry on investing in the company. Thus, this consultation reveals, in respective of Unilever’s stage in the Corporate Life Cycle theory and its financial statements, the elements employed to finance the company.

Introduction

2.1) Company Background – Unilever Group Plc

Formed by a Dutch and British companies in a joint venture, Unilever, a multinational corporation, owns 400 brands worldwide and runs operations in 100 countries.

“We work to create a better future everyday, with brands and services that help people feel good, look good, and get more out of life” (Unilever, Introduction to Unilever, p. 4).

Unilevers’ portfolio can be divided into four segments; personal care, foods, refreshment and homecare. Some worldwide leading brands produced by Unilever include Dove, Knorr, Hellmanns and Magnum.

2.2) Vision and Mission statement

Unilever’s ultimate vision is to adhere to consumer needs by “inspiring people to take small everyday actions that can add up to a big difference for the world. We will develop new ways of doing business with the aim of doubling the size of our company while reducing our environmental impact” (Unilever, Directors’ Report, p. 7).

By intensifying new ways to improve the brands and products at Unilever, the objective of doubling the size of the organisation is the main focus of this business.

3.1) Business form

Unilever operates as a plc – public limited company. A plc sells shares to the public; therefore members of the public become shareholders and are entitled to a dividend payment. The financial viability of such a...