HRM / Organizational behaviour Case Study

Hindustan Lever Limited: The Organisational Restructuring

OR

Abstract:
Hindustan Lever Limited (HLL), the largest FMCG (Fast Moving Consumer Goods) company in India, was struggling to increase its business by the late 1990s. To kick-start growth, HLL trimmed its brand portfolio of 110 brands to 30, initiated new business ventures and relaunched all its brands. But being caught up in price wars with its arch rival Procter & Gamble negated the gains it achieved. In March 2004, HLL announced a major top management reshuffle and reorganised its business portfolio under two divisions. The company officials maintained that the strategy was to provide a sharper focus on key brands and categories and to simplify the organisational structure.

Pedagogical Objectives:

• To discuss the organisational restructuring at HLL and whether HLL would eventually pull itself out of the growth rut.

Keywords : Hindustan Lever Limited (HLL); Unilever; FMCG (Fast Moving Consumer Goods); Restructuring / Turnaround Strategies Case Study; Organisational restructuring; Organisational structure; Project millennium; e-Tailing; Power brands; Competition; Rural marketing; Personal care business; Business strategy; Malvinder Singh Banga; CK Prahalad; New business initiatives

Contents:

• Introduction
• Background
• Project millennium
• Focus on power brands
• Organisational restructuring – in line with Unilever’s structure
• The future