Academic Master

Business and Finance

Unilever Case Study – Unilever’s 2020 Stretch Goals

Introduction

Unilever is considered one of the famous companies which are focused on the development of sustainable goals, and its management provides a roadmap and vision for the enhancement and development of sustainability to reduce the impact of the negative social and economic evils prevailing in society. The company has also formulated a number of the goals at global level to improve economic growth, increase employment opportunities, and introduce innovation in business operations. This study will include an analysis of the force field and behaviour and culture prevailing in the business environment of Unilever.

Q1 – Force Field Analysis and Evaluation

An important theory of change management in the form of Lewin’s force field model will be used for the analysis of the response of business operations of Unilever to the environment. This model reflects that change occurs due to the dissatisfaction of management from the present strategies of the business and change can be organized by developing and using better vision and goals of the organization. Change can be managed and implemented by the development of strategies, and resistance to change can be also managed. Force field analysis of the working environment of Unilever will provide an overview of the change problems existing in the company, which can be also tackled for the achievement of business goals and objectives in an effective way. (Bhasin, 2017)

The business environment of Unilever encompasses four different types of forces for the identification of changes which are necessary to be implemented in the business environment of the company. These forces include forces for change, driving forces, restraining forces, and forces resisting change. As Unilever has portrayed a strong image for the development of sustainable business at the global level, its business strategies are challenging and innovative. It is also believed by the management of the company that achievement of the equitable and sustainable economic growth can lead to the creation of long-term valuable relationships with the stakeholders of the company.

There are also an existing number of forces in the business structure of Unilever which can result in the emergence of changes to introduce strategic decision-making for business operations. Internal and external forces also exist in the business environment of the company, which results in the formation of sustainable business development goals and objectives. Driving forces of the company include a policy of the company to achieve sustainable growth of the business and to introduce a balance of power in the operational, tactical, and managerial cores of the business. Management of Unilever has also introduced Unilever’s 2020 super stretch goals, which are aimed at increasing the growth and development of the business at a higher rate and mitigating the impact of the negative factors existing in the economy. These goals are also driving forces of the business as these will result in the implementation of new business strategies and changes.

Forces for the change are in the form of the increasing trend of globalization, urbanization, improvements in the quality of life, and emergence of the developing economies. These forces provide a strong platform to change business strategies of the company by integrating those with the needs of globalization. Internal forces are also present, which provide a background to change business processes and goals according to the changing needs of the business. These forces are existing in the form of goals to increase the profitability of the business along with an increase in its revenue at the global level and introduction of innovation to increase competitiveness and efficiency of the business operations. These also include enhancement of the flexibility in the business structure of the company and increasing the motivation level of the employees. There are also existing needs for changing technological systems of business operations according to the changes in global business trends. There are a large number of external forces which are also the cause of inducing a change in the business operations of the company. These are in the form of globalization, technological changes, changes in the political interests, ethics, and social values, increasing value of social corporate responsibility, changes in tax structure, increasing competition, and changes in the demands of the customers. These forces require an effective change management strategy which can integrate those with the goals and objectives of the company. (Connelly, 2017)

Analysis of the different types of forces identified by the application of Lewin’s Force Field Model shows that there is a need to introduce strategic decision-making processes in the business structure of the company which can implement change and support integration and upgradation of the existing business systems with the new business goals and objectives which are stated in the Unilever’s 2020 Super Stretch Goal. There is a need for business strategies which can double the growth of the company and these can also improve the brand image of the company. Sustainable growth of the business and targets set according to the needs of globalization are needed to improve the situation of the business. The company also needs to introduce a sustainable living plan, which can also enhance positive social impacts. Management of the company is needed to define roles which can help in the optimum utilization and sustainability of the natural resources of the world. Delivery of the value by using a sustainability basis is also required to strengthen relationships with the customers. Value chain management shall be also considered to achieve a sustainable living plan, which can increase the growth of the business and enhance its competitive edge in the market. Stretch goals are also needed to accelerate innovation and set aggressive targets for the business. (CZ, 2016)

Q2 – Behavior and Culture at Unilever

Unilever is considered one of the largest and most renowned consumer goods firms at the global level, and the progress of the company is strongly connected to supported by the behaviour and culture prevailing in the business environment of the company. Policies and activities of the leaders have a great impact on the culture and behaviour of the company. Human resources of the firm, leadership, culture and behaviour prevailing in the organization are integrated with each other, and changes in one of those parts also influence the performance of the other part of the firm. Changes in the business operations and goals also affect the behaviour of the management and working core of the company, and it is managed in a positive way by enhancing effective and efficient communication processes. Leaders of the company are provided a platform to tackle changes with the aim of improving the performance of the company and introducing innovation in its business processes.

Leaders of the company are capable of integrating the aims and objectives of the business with the organizational culture, and the corporate culture of the company has also played a vital role in enhancing the growth and development of the business. The corporate culture of Unilever has also increased the stable performance of the business and it has also played a vital role in improving utilization of the human and other resources of the company. The output of employees is also increased due to the cooperative and supporting organizational culture prevailing in Unilever. The corporate culture of the company has also provided insight into the criteria which is needed to be met by the employees to achieve the output targets of the business. The organizational culture and behaviour of the company encompasses some of the important characteristics like focus on the quality of products and services, focus on performance, and enhancement of efficiency in business operations by using innovation and technology. (Saxena, 2011)

Leaders of the company possess behaviour which is supporting a culture of quality and performance and it also induces drivers of effective and efficient performance to deal with the business activities. There is market-based management and result-based management in the business structure of the company, which is aimed at changing management tactics and ways for the achievement of desired outcomes according to the vision and mission of the business. Management tactics also facilitate business productivity and high quality of consumer goods. Managerial approaches of the business also support a motivational culture at the workplace. Polman is also considered an important contributor to the enhancement of a strong and integrated working culture in the company. He has played a vital role in the integration of global business trends with the goals and objectives of the company and promoted social equity for the achievement of corporate responsibility goals of the company. A culture of performance is prevailing in Unilever, and collaborative efforts of the leaders of the company integrated the performance of different departments of the company. Such a type of culture of the company is also able to accommodate vast diversity which helps in the achievement of goals of globalization and adoption of globalized business trends. (GREGORY, 2017)

Q3 – Polman as a Leader

Paul Polman has been CEO of Unilever since 2009, and he is a leader with an ambitious vision to improve growth of the business and the achievement of environmental sustainability by using the Unilever Sustainable Living Plan. He has also worked as a chairman of the World Business Council for Sustainable Development, and he is also a member of the International Business Council of the World Economic Forum. Polman is also considered a “Heroes of Conscious Capitalism” due to his contributions to the world of business and the enhancement of business sustainability. He has provided a challenging status quo for the business and established a strong environment for the entrepreneurs for the achievement of business goals and objectives. His sustainable living plan for Unilever shows that growth and sustainability are equally important for an organization, and both of these must be integrated for the achievement of business goals and objectives. Polman has guided Unilever in such a way that the efficiency of the business has grown tremendously, and it has also led to the enhancement of growth at an exceptional rate. (Pickering, 2017)

Polman has also provided such a type of policy which increased and improved employee engagement and retention at the workplace. Eco-efficiency measures are also introduced in the factories of the company which helped in reducing costs of manufacturing and led to the enhancement of a strong portfolio for the sustainable living brands. Polman is a successful social entrepreneur of the world and he possesses optimistic views about the management of resources and human nature. His leadership style is capable of influencing the management of the company in a positive so that the utilization of the resources of the business would be carried out at an optimal level along with the achievement of cost-benefit goals. Capital optimization is also one of the important goals of the leader, and his management style contributes to the setting of long-term and short-term business goals which can achieve business sustainability and growth. (Walker, 2015)

Polman is considered a man of mission, and he is aimed at shifting business growth objectives from the management of abundance resources to scarce resources. He is also promoting social equity for the growth of the company. He has also provided a strong platform to meet the demands of the increasing population of the world by focusing on the resources of the business in an innovative way. He has also suggested reframing the capitalist techniques. He is also supporting the enhancement of balance between biodiversity and ecosystems. Management incentives are also supported by him and he has also suggested that changes in the business policy shall be aligned with the changes in the behaviour of employees so that targets of the change would be achieved in an effective way. He has also considered brands, operations, people, and sustainable living as important parts of the business growth. His sustainable living plan is also aimed at creating a positive image in the social sector and improving the core competencies of the business. He is also capable of managing strategic changes in the business operating according to the needs of technological advancement and innovation, along with increasing the performance of the business operations. (Schawbel, 2017)

Q4 – Recommendations

This case study has provided insight into the introduction of sustainability achievement plans in the business environment of the Unilever and achievement of those to improve business growth and support environmental sustainability. Unilever’s super stretch goals and introduction of the Unilever sustainable living plan are some of the important challenges that need to be managed. So change will be instilled in the business process and change management in a positive way to embed sustainability objectives in the goals of the business.

It is recommended to the management of the company to change the mindset and behaviour of the people working in the business environment of the company to achieve the goals of the sustainable living plan in an effective way. Lewin’s change management model can be beneficial for the achievement of those objectives, and its stages of unfreezing, change and refreezing will help in the inducement of change gradually in the business operations of the company, and it will be also easily adopted by the employees of the company. Such a type of change management strategy will be able to integrate existing business goals and objectives with future plans, and it will also allow new processes to merge with the existing ones in the form of chunks which can be easily managed by the task force. And it will be also helpful in changing the reaction of the employees to the change in a positive way. This strategy will be also helpful in the achievement of successful organizational change. (Mulholland, 2017)

Communication of the goals of the sustainable living plan and the importance of Unilever’s Stretch Goals in an effective and impressive way is another recommended technique for the achievement of sustainability goals of the business. Successful communication is considered an integral part of the management of change in an effective way, and it provides insight into the needs of change and how can it be helpful in the achievement of the sustainability goals of the business. It is necessary for the management of the company to communicate consistently and clearly about the changes which are needed to be implemented in the company so that the mindset of the people would be prepared to accept change and manage it by putting best efforts. Change sponsors shall also organize training sessions which would introduce beneficial aspects of the change and how can it be integrated with the goals and objectives of the business. So the Sustainable Living Plan of the company can be implemented in a successful way by using change management strategies in such a way that these would integrate the whole working environment of the company. (HEATHFIELD, 2018)

Conclusion

This study is aimed at the analysis of Unilever’s 2020 Super Stretch Goal and Sustainable Living Plan. Force Field analysis is used for the identification of different types of forces which can induce changes in the sustainability goals of the business. The performance-based corporate culture of the company and behaviour of the leaders and employees of the company are also assessed, and it is found that sustainability goals can be achieved in an effective and efficient way in the business environment of the company. The role of Polman in improving the core competencies of the business and its growth and management of the change according to the sustainability requirements are also highlighted in the study.

References

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KZ, 2016. Unilever: Takes on Climate Change by Selling “Sustainability”. [Online]
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Walker, B., 2015. PAUL POLMAN: UNILEVER’S CLEAN WINNER IN LEADERSHIP. [Online]
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