Define Horizontal and Vertical FDI, Choose a Multinational company and analyze its strategy to penetrate global marke

INTERNATION BUSINESS MANAGMTTOPIC 2: Define Horizontal and Vertical FDI, Choose a Multinational company and analyze its strategy to penetrate global market GROUP 2: Trần Tiến Dũng Đoàn

INTERNATION BUSINESS MANAGMT

TOPIC 2: Define Horizontal and Vertical FDI,

Choose a Multinational company and analyze

its strategy to penetrate global market

GROUP 2:

Trần Tiến Dũng

Đoàn Quốc Tài

Horizontal Analysis

• a financial statement that shows changes in the

amounts of corresponding financial statement items over a period of time, which is a helpful tool to assess the trend situations

• From this change analysis can be known source of the use of corporate funds, in addition to the development

of the company from one period to another period

Vertical Analysis

• an income statement show that every income statement amount represented as a

percentage of sales.

• This analysis helps to determine the

relationship with various items appeared in the financial statement

Horizontal Analysis Result

Horizontal analysis is one of two methods that used in this research, this method used to measures the financial performance of PT Unilever Indonesia Tbk, this method assess the financial performance by evaluating a series of financial statement data over a period of time

• The horizontal analysis of income statement show the company having a fluctuation trend it can be seen from the net sales index from 2012 to 2016 The fluctuation trend was also happened in cash flow statement according to

equivalents

Vertical Analysis Result

Vertical Analysis of the Balance Sheet

Vertical Analysis of the Income Statement

Vertical Analysis of Cash Flow

• Based on the figure above vertical analysis of the balance sheet from 2012-2016 PT Unilever

Indonesia Tbk shows the company having the

fluctuation index which means the company

financial performance was not good every analyzing year because the current liabilities index was higher than the current assets index which means the

company was not able to utilize their current assets

to cover the current liabilities

• While for the income statement

can be seen the gross profit item is fluctuated in periods 2012-2016 The cash flow statement the

decreased occurred in net/increase

in cash and cash equivalents in

2013

• Furthermore the financial performance of PT

Unilever Indonesia Tbk based on the vertical analysis

of the cash flow, it is seen in periods 2012-2013 was not optimal because the amount of the total cash inflow is larger than the amount of the total cash

outflow But the last three years periods 2014-2016 the financial performance of PT Unilever Indonesia Tbk was optimal it is seen from the total amount of the cash inflow is larger than the total amount of the cash outflow

UNILEVER'S GLOBAL BUSINESS STRATEGY

Who We Are

As one of the strong and healthy

companies in the world with many

successful brands Supported by

strengths of its four key global brands – Dove, Sunsilk, Rexona and Lux, Unilever firstly entered in foreign market to

compete internationally by entering just one or select few foreign markets.

Marketing Definition

Content Marketing

B O O S T L AY O U T S

The following diagram shows the market

performance of Unilever’s skin care and hair

care market share

All strategies executed by Unilever for competing in foreign market resulting in moderate 5% sales growth

in 2006 – just above market performance – ensured that Unilever kept its position as third largest player in cosmetics and toiletries with a 7% market share

Unilever decision to introduce its product on emerging market such as Asia-Pacific, Latin America and North America implies to the high contribution of Unilever total revenue by 26%, 21% and 16% respectively.

Unilever recognized that its product is commonly used for all people worldwide Therefore, Unilever are

moving rapidly and aggressively to extend their

market reach into all corners of the world.

UNILEVER’S MARKETING STRATEGY FOR COMPETING

IN FOREIGN MARKET

For its marketing strategy Unilever combines its strategy with social project in many countries Educational campaigns have been important tools for raising awareness for Unilever brands such as Close-Up and Dove The company’s partnership with the World Dental Federation has seen it become involved in oral healthcare projects in both developed and emerging nations, including Austria and Brazil In 2006, Unilever developed a low-cost toothbrush, the Pepsodent Fighter, which retails at a price equivalent to just EUR0.20 and is distributed in India and Indonesia.

The company also has more directly brand-related programs,

including Close-Up’s Project Smile in Nigeria and the Dove

Self-Esteem Fund Less directly, a Brazilian recycling partnership with

Pao de Acucar, a major Brazilian retailer not only helped employ

more than 300 people in a local recycling co-operative, but also

gave Unilever’s products greater in-store prominence as well as

raising the profile of brands including Rexona by having their logos

on point-of-sale information and educational materials

• The company’s successful brand innovation program is supported with a high level of marketing and advertising activities including most media As there are many opportunities in the foreign markets but the tendency of threats is also same as opportunities The powerful R&D, diversified and differentiated product line and market analysis are all important factors that make a company enjoy its potential and good market share in foreign market

THANK YOU!