AN ASSIGNMENT

ON
MULTINATIONAL
COMPANIES
[Document subtitle]

BUESNISS ENVIORNMENT
BUS-233
Tasfiha Islam Inny

An Assignment On

Multinational Companies
(Name of ten multinational companies and their product line, a brief description
of two companies from these which opening in Bangladesh)
Submitted to
Tahmina Akter Arzin
Lecturer
Department of Business Administration
Prime University

Submitted by
Name: Tasfiha Islam Inny
ID: 183020101007
Batch: 49th
Department of Business Administration
Prime University
Course Title: Business Environment
Course Code: BUS-233

Date of Submission: 14, July 2020

Table of Contents
Introduction.........................................................................................................3
Multinational Company.....................................................................................3
Example...............................................................................................................3
Unilever Bangladesh Limited............................................................................6
Introduction.........................................................................................................6
Unilever’s Corporate Purpose...........................................................................6

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Unilever At A Glance..........................................................................................7
Nestlé Bangladesh Limited................................................................8
Introduction.........................................................................................................8
Globally recognized brands of Nestlé:..............................................................8
Nestlé in Bangladesh:.........................................................................................9
Objectives:.........................................................................................................10
Business and Functions....................................................................................11
Functions of Nestlé Bangladesh.......................................................................11

Introduction

Multinational Company
A multinational company is a business that operates in many different countries at the same
time. In other words, it’s a company that has business activities in more than one country.
A multinational company that operates in its home country, as well as in other countries
around the world. It maintains a central office located in one country, which coordinates the
management of all its other offices, such as administrative branches or factories. It isn’t
enough to call a company that exports its products to more than one country a multinational
company. They need to maintain actual business operations in other countries and must make
a foreign direct investment there.

Example
The true definition of a multinational company isn’t that it manufactures in other countries,
however; the true meaning is that the business has operations in multiple countries. This can
take form in many different ways besides manufacturing. Take McDonalds for example.
They have almost 35,000 restaurants located in 119 countries around the world. This means

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that not only operate the physical restaurants, they also operate supply chains to deliver the
beef and other products required to keep their locations working properly.
As we can see, operating in another country could be running a supply chain, having physical
store locations or manufacturing plants, or even providing services abroad. The modern
internet age has brought about the ability for individuals and companies to easily
communicate and start multi-national companies easier than ever before in history.

The name of ten Multinational Companies and their Product lines are
given below:

Company names Product line

1. Unilever Bangladesh Limited Product

Household Care, Fabric Cleaning, Skin Cleansing,
Skin Care, Oral Care, Hair Care, Colour Cosmetics,
Deodorant, Tea based Beverages.

Brands:
Wheel, Lux, Lifebuoy, Fair & Lovely, Pond's, Close
Up, Sunsilk, Lipton Taaza, Pepsodent, Clear, Vim,
Surf Excel, Rexona, Dove, Vaseline & Lakme, and
Axe.

2. British American Tobacco Product:

Tobacco products – Smoked and Smokele
(Cigarette)

Brands:
Benson & Hedges, John Player Gold Leaf, Pall Ma
Capstan, Star, Pilot, Derby and Hollywood

3. Bata Shoe Company Bangladesh Product:

Limited Footwear and accessories

Brands:
Bata
North Star (urban shoes)
Weinbrenner (premium outdoor shoes)
Bubble gummers (children's shoes)
Power (athletic shoes)

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4. Marico Bangladesh Limited Product:
Edible Oil, Hair Nourishment, Skin Care, Fabric Care
Healthy Foods, Male Grooming etc.

Brands:
Male grooming – Set Wet
Hair Care – Parachute, Parachute Advance
Nihar Naturals, Nihar Naturals Uttam, Hair
Care Fruit Oils, Mediker, Livon
Edible Oils – Saffola
Skin Care – Parachute Advansed Body Lotion
Fabric Care – Revive
Healthy Foods – Saffola Masala Oats &
Saffola Fittify

5. Nestle Bangladesh Limited Product:

Culinary, Confectionary, Breakfast Cereals, Dairy,
Baby cereals, Beverages

Brands:
Culinary- Maggi noodles, Maggi Shad-e-
Magic, Maggi soup
Confectionary- Nestlé Munch Rolls
Breakfast Cereal- Nestlé Koko Crunch, Hone
Gold Flakes, Corn Flakes
Dairy- Nido
Baby cereals- Lactogen, NAN, Cerelac

Beverages- Nescafe, Nescafe 3 in 1, Coffee

Mate

6. Samsung Electronics Co. Ltd. Product: Electronic devices, Appliances &

Accessories (PHONES TV, REFRIGERATOR
WASHING MACHINE, MICROWAVE, AIR
CONDITIONERS, SAMSUNG DRYER, AIR
PURIFIERS, VACUUM CLEANERS, KITCHEN,
APPLIANCES, PERSONAL CARE & STYLER,
MOBILE ACCESSORIES, WEARABLE AND
SMART WATCH)

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7. Reckitt Benckiser Bangladesh Ltd. Product:
Health, Hygiene and Home products.

Brands:
Dettol, Harpic, Mortein, Lizol, Veet, Disprin, Vanish,
Trix

Product:
8. PEPSICO Bangladesh Food and Beverage

Brands:
Pepsi, Diet Pepsi, Mountain Dew, Lay's, Gatorade,
Tropicana, 7 Up, Doritos, Brisk, Quaker Foods, Cheetos,
Mirinda, Ruffles, Aquafina, Starbucks (ready to Drink
Beverages), Pepsi Max, Tostitos, Sierra Mist, Fritos, and
Walkers.

9. TELENOR GROUP Product:

(Grameenphone) Mobile Telephony, EDGE, GSM, GPRS, UMTS,
HSDPA, HSUPA, HSPA, HSPA+, FDD-LTE

Brands:
Xplore, Smile, djuice, Flexiload, MyGP, Wowbox,
Bioscope, Skitto

10. GlaxoSmithKline – GSK Product:

Bangladesh Pharmaceuticals, vaccines, oral healthcare, nutritional
products, over-the-counter medicines

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Now the description of Two Multinational Companies from the upper
ones are given below:

Unilever Bangladesh Limited

Introduction
Unilever is a multinational corporation, formed of British and Dutch parentage, that owns
many of the world’s consumer product brands in foods, beverages, cleaning agents and
personal care products. Unilever employed 174,000 people and had worldwide revenue of
€40.5 billion in 2008. Unilever is a dual-listed company consisting of Unilever NV in
Rotterdam, The Netherlands and Unilever PLC in London, United Kingdom. This
arrangement is similar to that of Reed Elsevier, and that of Royal Dutch Shell prior to their
unified structure. Both Unilever companies have the same directors and effectively operate as
a single business. The current non-executive Chairman of Unilever N.V. and PLC is Michael
Treschow while Paul Polman is Group Chief Executive.
Unilever Bangladesh Ltd. is one of the world’s most successful fast moving consumer goods
manufacturing companies with local manufacturing facilities, reporting to regional business
groups for innovation and business results.
Lever Brothers Bangladesh Ltd. as a subsidiary of Unilever is leading the home care,
personal care and food product market of Bangladesh. On 25th February 1964 the eastern
plant of Lever Brothers Pakistan Ltd. was inaugurated at Kalurghat, Chittagong with a soap
production capacity of approximately 485 metric tons. It was a private limited company with
55% share held by Unilever and the rest by the Government of Pakistan. After independence
the eastern plant was declared abandoned. But on 5th July 1973 it was registered under the
name of Lever Brothers Bangladesh Ltd. as a joint venture company of Unilever PLC and the
Govt. of Bangladesh with a share arrangement of 60.75% to Unilever and 39.25% to the
Bangladesh Govt.

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Unilever today
Unilever brands are trusted everywhere and, by listening to the people who buy them, they’ve
grown into one of the world’s most successful consumer goods companies. In fact, 150
million times a day, someone somewhere chooses a Unilever product. UBL is the market
leader in 7 of the 8 categories it operates in, with 20 brands spanning across Home Care,
Personal Care and Foods.
UBL have a portfolio of brands that are popular across the globe – as well as regional
products and local varieties of famous-name goods. This diversity comes from two of their
key strengths:
 Strong roots in local markets and first-hand knowledge of the local culture.
 World class business expertise applied internationally to serve consumers everywhere.

Unilever’s Corporate Purpose

UBL’s purpose is to meet the everyday needs of people everywhere, to anticipate the
aspirations of the consumers and customers and to respond creatively and competitively with
branded products and services which raise the quality of life. At the heart of the corporate
purpose, which guides UBL in its approach to doing business, is the drive to serve consumers
in a unique and effective way.
This is Unilever’s road to sustainable, profitable, growth for their business and long-term
value creation for their shareholders and employees.

Unilever At A Glance
Over the last four decades, Unilever Bangladesh has been constantly bringing new and world-class
products for the Bangladeshi people to remove the daily drudgery of life. Over 90% of the country’s
households use one or more of our products.

Type of business
Fast Moving Consumer Goods Company with local manufacturing facilities, reporting to
regional business groups for innovation and business results.

Operations:
Home and Personal Care, Foods

Constitution:
Unilever - 60.75% shares, Government of Bangladesh - 39.25%

Product categories:
Household Care, Fabric Cleaning, Skin Cleansing, Skin Care, Oral Care, Hair Care, Color
Cosmetics, Deodorant, Tea based Beverages.

Brands:
Wheel, Lux, Lifebuoy, Fair & Lovely, Pond's, Close Up, Sunsilk, Lipton Taaza, Pepsodent,
Clear, Vim, Surf Excel, Rexona, Dove, Vaseline & Lakme, and Axe.

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Manufacturing Facilities:
The company has a soap manufacturing factory and a personal products factory located in
Chittagong. Besides these, there is a tea packaging operation in Chittagong and three
manufacturing units in Dhaka, which are owned and run by third parties exclusively
dedicated to Unilever Bangladesh.

Employees:
Unilever Operations in Bangladesh provide employment to over 10,000 people directly and
indirectly through its dedicated suppliers, distributors and service providers. 99.5% of UBL
employees are locals and there are equal numbers of Bangladeshis working abroad in other
Unilever companies as expatriates.

Nestlé Bangladesh Limited

Introduction
In 1867 Henry Nestle, a chemist from Frankfurt who had settled in Vevey, became interested
in infant feeding. To satisfy a clear need, he developed and produced a milk-based food for
babies whose mothers could not nurse them. The new product soon became well-known
worldwide under the name of “Farine Lactee Nestle (Nestle Milk Food)”. In order to expand
into a broader category and meet more people’s needs, the Nestle Company’s first
diversification occurred in 1905 when it merged with the Anglo- Swiss Condensed Milk
Company (1866). Today, processing milk food is still the company’s chief activity together
with the other products of Nestle family such as chocolates, instant milk-based drinks
culinary products, frozen foods, ice cream, dairy products and infant foods. Nestle is still
primarily concerned with the field of nutrition, but it has also acquired interest in
pharmaceuticals and cosmetics industries. As a result of the company’s initiative and bold
activity, it has grown into a huge organization, employing almost 230,000 people in nearly
500 factories worldwide. Nestle products are now widely distributed on all continents and
sold in more than 100 countries.

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Popular Nestle brands entered this part of the sub-continent during British rule and the trend
continued during pre-independence days of Bangladesh. After independence in 1971, Nestle
World Trade Corporation, the trading wing of Nestle, sent regular dispatches of Nestle brands
to Bangladesh. By that time some of the brands such as Nespray, Cerelac, Lactogen, Blue
Cross etc. became household names. In the early eighties Transcom Ltd. was appointment the
sole agent of Nestle products in Bangladesh. In 1992 Nestle and Transcom Ltd. acquired the
entire share capital of Vita Rich Foods Ltd. Nestle took 60 percent while Transcom Ltd.
acquired 40 percent. The name of the company was also changed at this time to Nestle
Bangladesh Limited. In 1998 Nestle took over the remaining 40 percent share from Transcom
Limited. Today Nestle Bangladesh Ltd. is a solid based enterprise.

Globally recognized brands of Nestlé:

The brand portfolio delivers the message once again how big Nestlé in the food industry. It is
the trust and effort of the Nestlé professionals which created the win wining scenario. Today
Nestlé covers almost every food and beverage category – giving consumers tastier and
healthier products.
 Baby foods: Cerelac, Lactogen, NAN, Gerber, Gerber Graduates, NaturNes, Nestum
 Bottled water: Nestlé Pure Life, Perrier, Poland Spring, S.Pellegrino
 Cereals: Chocapic, Cini Minis, Cookie Crisp, Estrelitas, Fitness, Nesquik Cereal
 Chocolate & confectionery: Aero, Butterfinger, Cailler, Crunch, Kit Kat, Orion,
Smarties, Wonka
 Coffee: Nescafé, Nescafé 3 in 1, Nescafé Cappuccino, Nescafé Classic, Nescafé
Decaff, Nescafé Dolce Gusto, Nescafé Gold, Nespresso
 Culinary, chilled and frozen food: Buitoni, Herta, Hot Pockets, Lean Cuisine,
Maggi, Stouffer’s, Thomy
 Dairy: Carnation, Coffee-Mate, La Laitière, Nido
 Drinks: Juicy Juice, Milo, Nesquik, Nestea
 Food service: Chef, Chef-Mate, Maggi, Milo, Minor’s, Nescafé, Nestea, Sjora, Lean
Cuisine, Stouffer’s
 Healthcare nutrition: Boost, Nutren Junior, Peptamen, Resource
 Ice cream: Dreyer’s, Extrême, Häagen-Dazs, Mövenpick,
 Petcare: Alpo, Bakers Complete, Beneful, Cat Chow, Chef Michael’s Canine
Creations, Dog Chow, Fancy Feast, Felix, Friskies, Gourmet, Purina, Purina ONE,
Pro Plan
 Sports nutrition: PowerBar

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Nestlé in Bangladesh:
Popular Nestlé brands started entering this part of the sub-continent during the British rule
and the trend continued during the pre-independence days of Bangladesh. After the
independence in 1971, Nestlé World Trade Corporation, the trading wing of Nestlé S.A, sent
regular dispatch of Nestlé brands to Bangladesh through an array of indentures and agents
and some of the brands such as NESCAFE, CERELAC, LACTOGEN, MUNCH ROLLS and
MAGGI became some very common products.
Nestlé Bangladesh Limited started its commercial operation in Bangladesh in 1994. Its
total authorized capital is TK1.5 billion and total paid up capital is TK 1.1 billion. The only
factory of the company in Bangladesh is situated at Sreepur, 55 km north of Dhaka. The
factory produces the instant noodles and cereals and repacks milks, soups, beverages and
infant nutrition products.
Today Nestlé Bangladesh Ltd. is a strongly positioned organization. The Company
is continuously growing through the policy of constant innovation, concentrating on its
core competencies and its commitment to high quality food to the people of
Bangladesh. Since the beginning of Nestlé’s operation in Bangladesh, the chairman of the
company has been Mr. Latifur Rahman, one of the top industrialists of the country, his firm
Transcom used to import the products of Nestlé. His business house Transcom is still
involved in wide range of business like beverage, pharmaceutical, electronics, newspaper, tea
export, fast food franchises etc. Still he remains as an honorary chairman of the company.
In Bangladesh Nestlé’s vision is-to be recognized as the most successful food and
drink Company in Bangladesh, generating sustainable, profitable growth and continuously
improving results to the benefit of shareholders and employees.

Objectives:
Nestlé Bangladesh’s leading objectives are:
a) To develop safe and wholesome packaged foods using the most efficient and
appropriate packaging materials available, while, at the same time, satisfying consumer
requirements and expectations.
b) Nestlé Bangladesh seeks packaging solutions that:
• will result in the lowest possible weight and volume of packages
• take into account new packaging materials and processes that reduce the impact on
the environment;
• avoid the use of substances that can adversely impact the environment during
packaging production and disposal
• decrease packaging waste at all stages, including package manufacturing, utilization
and disposal
• increase the use of recycled materials wherever possible; and
• Increase the recyclables and compatibility of its packages with existing waste management
schemes.

Strategies:
Nestlé Bangladesh has these strategically key Success Factors:
• Strong brands / relationships with consumers

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• Research and development
• Innovation and renovation
• Product availability

There are also a few factorial strategies, stated as follows:

External factors
• Social: Nestlé makes an effort to integrate itself as much as possible into the cultural
and social values of the different countries. During operation in Bangladesh Nestlé
has launched products with integration of social & cultural factors. This has been done
to match the taste buds of Bangladeshi consumers.
• Ethical: Although Nestlé faces ethical dilemmas in commercialization of its products,
it does not consider its high price to be an ethical crisis. This is because they are not ready to
compromise their quality in order to make their product widely available to all.

Internal factors
• Marketing structure: Nestlé is more people, product and brand oriented than
system oriented. Nestlé favours long-term successful business development and even to
greater extent, customer life-time value. At the same time Nestlé does not lose sight of
the necessity to improve in terms of quality, price and distribution. However, Nestlé remain
conscious of satisfying the wants needs and demands of its consumers. It is also aware of the
need to generate a sound profit annually.
Nestlé seeks to earn consumer’s confidence, loyalty and preference and anticipate
their demands through innovation and renovations. Therefore, Nestlé is driven by an
acute sense of performance adhering to quality and customer satisfaction Nestlé is
as decentralized as possible within its marketing strategic definitions requiring increasing
flexibility. Nestlé is always committed to the concept of continuous improvement of
its activities and customer satisfaction through market segmentation, positioning and
target marketing.

Business and Functions

Nestlé Bangladesh Limited markets its products throughout the country with the help of
its distributors. Apart from that, Nestlé Professional is a separate function which is
responsible for the institutional sale, though it is breaking out of its threshold and going for a
more aggressive way of selling the products personally in crowded places such as Rabindra
Shorobor.
There are currently 80 distributors of Nestlé Bangladesh products of which 76 are
retail distributors and remaining 4 are Nestlé Professional’s distributors providing products
for the out of home consumptions. The whole country is divided into seven regions:
a) Dhaka North
b) Dhaka South
c) Chittagong

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d) Bogra
e) Khulna
f) Sylhet
g) Barisal

Functions of Nestlé Bangladesh

As shown in the organization structure, Nestlé Bangladesh has 10 functions, among which
the Managing director controls 3 and the rest is controlled by their individual directors. The
General Management take cares of the overall operation of the company, while maintaining
their regular governmental affairs and taking key decisions. The Manufacturing Function is
where some products are made (like Munch, Maggi) and some, like Nido are repacked. The
Human Resources function focuses on the management of employees and organizational
culture, as well as retaining the people, motivating them more with each passing day. Supply
Chain ensures the stable supply of the products according to the demand of the customers.
Marketing looks after the existing brands, market share and product development of the
products. Finance and control deals with the financial transactions and most importantly they
also apply the control mechanism to remain the company complaint financially and
procedurally. The IS/IT17 department falls under the Finance function, hence they also
maintain day to day technicality. Sales and Nestlé Professionals are the revenue generating
departments for the company. The Nutrition function, however, is a separate entity
somewhat, for their orders are usually initiated in India, and they carry out their tasks just as
orders.

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