Emerging Challenges Of Unilever

Unilever, For More Sustainable Growth by Overcoming Challenges in Emerging Markets

Introduction

Since 2009, Paul Polman, CEO of Unilever, has led the world’s 3rd largest consumer goods company, Unilever, and has doubled operating revenue, relative to previous years (See Table 1). Table 1 Evolution of a key variable: Operating revenue (Turnover) (2006 - 2015)

Under his leadership, the three key factors for success are: The Sustainable Living Plan, significant growth in emerging markets, and trust with shareholders based on high profit return with a long-term view. Despite competitors such as Procter & Gamble achieving 37% of their sales target, and Nestlé 43% of theirs, for emerging markets, Paul Polman set an ambitiously high target

These increased costs will likely inflate prices and inevitably lower competitiveness in the market.  Accessibility - it is not easy to find HC gases in certain regions and their quality and quantity will invariably differ by location. Finding the right balance will likely exceed expectations for timing.  Time– contrary to developed markets, adapting and implementing sustainable infrastructure is a highly variable process that needs to take place under specific conditions that differ by location. This affects timing and developing of technologies in emerging markets.  Competitors – comparing Unilever to its major food & refreshment competitors, suggests that it does not have to be a pioneer of this movement. As Unilever has primarily focused on personal and home care products, other major food and refreshment companies such as Danone, Kellogg’s or Nestlé are more likely to pursue this course of

This would suggest, as far as consumer pricing goes, a greater likelihood to pay a little bit extra for products that are more sustainable. [9] Therefore, it is crucial to have an ongoing sustainability strategy to project the brand image in the minds of consumers as a ‘sustainable company’ in emerging markets.

Lastly, in regard to complexity theory, it is imperative to have an open and integrated culture in which everyone can understand Unilever’s mission. This promotes collaboration and team work and promotes Unilever’s strength through the whole, rather than the sum of its parts. To implement the theory, every stakeholder needs to be aligned with the sustainable strategy for value creation and a common goal to promote synergy to be able to achieve Unilever’s long-term mission and be a competitive leader in the