Unilever Case Study
Ref.No.: FM0001
Unilever Limited: Transforming the Finance ‘Function’
“Top performing businesses have top performing finance functions, but few finance functions are top performing.” – Scott Parker, Head of Financial Management, KPMG LLP (UK)
In an era of globalisation, increasing economic pressures and stringent regulatory norms, the role of finance function is becoming much broader than ever before. With changing times the role of finance manager is becoming concentrated, moreover, Chief Financial Officer (CFO) has become the strategic business partner to CEO and is playing a leading role in company’s decision-making process. In this context, the finance function is all the more important especially in conglomerate and multinational companies. Unilever Ltd. is one such company that has a highly diversified portfolio and wide financial operations.
Role of Finance Function – Interface of Finance Function with other Functional Areas
In the rapidly changing business world, many CEOs are realising that achieving organisational objectives becomes impossible without the active support of finance function. It is obvious that finance function is one of the driving forces of an organisation. Irrespective of a firm’s size and scale, finance forms basis for all economic activities. As it is a scarce resource, optimum utilisation of finance is necessary and any mismanagement of such resources can prove disastrous for the company. The success of an organisation depends on how well it manages its financial resources. The optimum utilisation of finance or financial resources can be possible only by effective finance function. Even the best of the companies and CFOs go out of business, if they fail to utilise the funds effectively or implement improper financial management policies. All other functions such as marketing, production, human resources and accounting are interlinked and inter-connected through a common
This case study was written by Mora Sowjanya
Unilever Limited: Transforming the Finance ‘Function’
“Top performing businesses have top performing finance functions, but few finance functions are top performing.” – Scott Parker, Head of Financial Management, KPMG LLP (UK)
In an era of globalisation, increasing economic pressures and stringent regulatory norms, the role of finance function is becoming much broader than ever before. With changing times the role of finance manager is becoming concentrated, moreover, Chief Financial Officer (CFO) has become the strategic business partner to CEO and is playing a leading role in company’s decision-making process. In this context, the finance function is all the more important especially in conglomerate and multinational companies. Unilever Ltd. is one such company that has a highly diversified portfolio and wide financial operations.
Role of Finance Function – Interface of Finance Function with other Functional Areas
In the rapidly changing business world, many CEOs are realising that achieving organisational objectives becomes impossible without the active support of finance function. It is obvious that finance function is one of the driving forces of an organisation. Irrespective of a firm’s size and scale, finance forms basis for all economic activities. As it is a scarce resource, optimum utilisation of finance is necessary and any mismanagement of such resources can prove disastrous for the company. The success of an organisation depends on how well it manages its financial resources. The optimum utilisation of finance or financial resources can be possible only by effective finance function. Even the best of the companies and CFOs go out of business, if they fail to utilise the funds effectively or implement improper financial management policies. All other functions such as marketing, production, human resources and accounting are interlinked and inter-connected through a common
This case study was written by Mora Sowjanya