Task: Identify the role each subsidiary plays within Unilever’s global network using White & Poynter’s typology. Explain the reasoning behind each classification based on market scope, product scope, and value-added activities described in the case.

Case Study: Unilever’s Differentiated Subsidiary Operations

Unilever operates through a network of subsidiaries that each play distinct roles shaped by local markets, product responsibilities, and the degree of autonomy granted by headquarters. The following five country operations illustrate how Unilever tailors its global strategy through varied subsidiary configurations.

In India, Unilever runs a subsidiary that mirrors most of the core functions of the parent organization while still tailoring its activities to the domestic market. Its operations span product development, manufacturing, marketing, and local research. Many of the products offered in India were conceived specifically for local consumers—skincare lines formulated for regional skin concerns and detergent brands designed for budget-conscious households, for example. Because this subsidiary handles its own R&D, production plants, and marketing campaigns, it can operate with considerable independence, adjusting products and strategies to the needs of a vast and diverse population.

Unilever’s Italian subsidiary mainly focuses on the commercial side of operations. Most of the products it sells come from production sites located elsewhere in Europe. Its primary responsibility is to market, distribute, and promote these products within the Italian market. Although it does not have local manufacturing facilities or product development units, it invests heavily in adapting global brands to align with Italian cultural preferences—particularly in food categories such as ice cream—ensuring that brand messaging resonates with local consumers.

Unilever’s unit in Mexico functions as a key production hub for specific product categories distributed throughout North and Central America. It concentrates on manufacturing select items such as soaps and detergents that are then supplied across several neighboring markets. By leveraging the country’s cost-efficient labor and favorable trade conditions, this subsidiary plays an important role in regional supply-chain optimization. However, strategic marketing and product decisions for these categories are largely guided by higher-level regional or global teams, leaving the local operation focused primarily on efficient production and distribution.

Unilever’s German operation is dedicated to a specific global product line. Equipped with specialized R&D teams and advanced manufacturing capabilities, it oversees innovation, recipe development, and production for a flagship food brand sold worldwide. Although it collaborates with other Unilever units for global distribution and local marketing, this subsidiary has broad authority in shaping the future of its product line—from developing new formats to enhancing product quality for international markets.

Operating with wide strategic freedom, Unilever’s subsidiary in China is responsible for developing, producing, and marketing a broad range of products for both domestic consumers and others across the Asia-Pacific region. It has launched region-specific versions of international brands, including beverages and personal care products tailored to local tastes and emerging trends.

These subsidiary functions almost like a semi-independent business unit: it controls product design, manages its own supply chain, and runs its own marketing operations. Headquarters provides support, but day-to-day decision-making remains largely within the local unit so it can quickly respond to fast-changing consumer behaviors in the region.