Banchuria and Balonia (A)

In 1959, Unilever was one of the world’s most internationally established companies, and its products had gained substantial market share in the consumer goods segment. Unilever was prepared to make a capital investment outside its home market of Europe, and considered entering one of two developing economies (disguised in these documents). The (A) case relates to the decision in 1959, whereas the (B) case revisits the same decision in 1969. Balonia and Banchuria were two of the world’s poorest areas, and both had begun to emerge from their post-colonial ties to adopt policies and establish institutions in an effort to spur economic growth. Unilever’s strategic planning group needed to weigh the data on these economies and make an entry recommendation as to which location provided the better investment environment. See supplemental case 9B16M113.