P3-9. Identify the basic organization design issues at Unilever. Unilever is one of the world’s largest packaged consumer goods companies, trailing only Proctor & Gamble. In 2012 the firm has over 170,000 employees and annual revenues of around $60 billion. Among its best-known brand names are Lipton, Dove, Helene Curtis, Vaseline, and Q-tips. As the firm has grown, Unilever occasionally has set up other businesses to support its consumer products operations.

For example, the firm once established a chemical unit to process the oils it uses to make margarine. At the time managers believed this route provided them with a predictable and controllable source of materials. Fragrances and food flavorings operations were created for the same reason. In similar fashion Unilever often has grown by acquiring other consumer products businesses, many of which had supporting operations as well.