Chapter 10: Organizational structure

Unilever was form in 1930 from two companies: the Margarine Unie (Netherland) and the Level Brother (UK). It was a full business merger, operating as a single business entity. Until now, the two separate legal parent companies were remained. They are now called: Unilever NV (Netherland) and Unilever PLC (UK). Unilever N.V., which has its registered and head office in Rotterdam, Netherlands and Unilever PLC, which has its registered office at Port Sunlight in Merseyside, United Kingdom and its head office at Unilever House in London, United Kingdom. [Unilever PLC and Unilever N.V. and their subsidiary companies operate as nearly as practicable as a single economic entity, whilst remaining separate legal entities with different shareholders and separate stock exchange listings.

The two parents companies operate with two separate organizational structures. Each company has its own Board of Director This can create problem for the organization. It is difficult to balance between the two companies interest. It can also lead to lack of co-ordination between the board of directors of the two holding companies and also having two separate masters can confuse followers.