Unilever Indonesia

Unilever Indonesia is a promising company to invest as we can see from the analysis. The high return always in line with the higher risk, as we can see in the standard deviation, the standard deviation of the Unilever Indonesia is higher than the standard deviation from the IHSG. It means that the Unilever has a higher risk but has a higher return also. The positive return of the Unilever Indonesia is good for the company and for the sustainability advantage for the company, and investors will trust to the Unilever Indonesia. However, risk still can be measure by the fluctuations of overall stock market.
Beta or coefficient measures the correlation between an investment value and movements in the overall market. A high beta implies a stock price grows dramatically when the market is up, and falls dramatically when the market goes down, and vice versa. In Unilever Indonesia, the Beta is 0,794724572. It has a positive result that it means have a positive impact. However, it can classify as defensive stock. Unilever Indonesia’s stocks is relatively unaffected by the swings in the overall market. The returns of these stocks vary less than one-for-one with market returns. Therefore, Unilever Indonesia has a stable stock. The low level of Beta can make the risk in Unilever Indonesia also lower. However the lower risk also make the return is not as higher as the other.
Factor that influence the fluctuation of the stock return and market return can classified into 2 categories, there are internal factor and external factor. Internal factor such as the company economic condition and the company strategy may affect the fluctuation of the market and stock return. The examples of external factors are interest rate, inflation, terrorism and even the natural disaster.
The BCG Matrix can be used to determine what priorities should be given in the product portfolio of a business unit. To ensure long-term value creation, a company should have a portfolio of products that contains both high-growth products in need of cash inputs and low growth products that generate many cash. The Boston Consulting Group Matrix has 2 dimensions: market share and market growth. For the products categories that Unilever Indonesia has, Home and Personal Care has a Stars point. It is because of the Home and Personal Care sections have big contribution in their sales. In addition, they have a huge market share. Food and Ice cream division consider as a Cash Cows because the level of sales growth are low but have a big market share. In Stars position, Unilever can use strategies like market penetration, market development, product development, etc. In Cash Cows position, Unilever Indonesia can use strategies such as product development or concentric diversification.