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Essay / Analysis of Unilever's Business Strategy and Sustainability
Table of ContentsUnilever Sustainable Living PlanSustainability ChallengesDeforestation and Climate ChangeValue Creation and Sustainability IntegrationAssessing the Concept of Value CreationThe Definition of Value CreationThe Framework sustainable value1+7 levels of strategic directionEvaluate the construction of integrating sustainabilityThere are more than 400 Unilever brands that offer customers a wide range of choices in people's lives in 190 countries. Consumers appreciate lower-calorie foods with a healthier balance of nutrients or affordable soaps with strong sterilization, shampoos or household cleaning products with high repurchase rates. Some well-known brands include Lipton, Knorr, Dove, Axe, Hellmann's and Omo. . According to statistics, two billion people use Unilever products and services every day and seven out of ten households own at least one Unilever product worldwide. Say no to plagiarism. Get a tailor-made essay on 'Why violent video games should not be banned'?Get the original essayUnilever Sustainable Living Plan Launched in 2010, it adopted ambitious goals across three dramatic strands: Improving health and wellbeing , reduce environmental impact and improve livelihoods. He recognized that economic growth was causing environmental pollution and massive impoverishment, both of which were inadvisable and commercially unviable. Sustainable growth is the only acceptable model for their business and pursues a continuous vivo sphere to help people improve the quality of life and promote human well-being through access to social protection. Unilever products are sustainable at every stage of their life cycle, the process of product research and development that works with their suppliers, governments, NGOs, consumers and other businesses to help create value. Sustainability Challenges This part will address serious “big” problems of the world which are mainly concerned with deforestation, climate change, air pollution and transferred pollution. The analysis of these factors will be based on a specific case. Deforestation and climate change Today, with the rise of the industrial revolution, scientific technology has reached historic leaps and bounds, production is increasing, and so is the living standard of the people. In addition, economic integration is progressing more quickly. But more and more people realize that they have plundered "false profit" at the cost of massive energy consumption and environmental degradation to accelerate economic growth, with forest destruction playing a role. stronger and stronger. According to statistics from the Food and Agriculture Organization of the United Nations, about 18 million acres (7.3 million hectares) of forest are lost each year, which is roughly the size from the country of Panama. Forest deterioration causes between 6 percent and 12 percent. percent of annual global carbon dioxide emissions while oxygen in the air decreases. This pie chart illustrates six main reasons for deforestation. Overall, deforestation, including land available for agriculture, industrial sites, urbanization, and livestock ranches, is the largest contributor to agriculture, and it accounted for 64% of tropical forests. . It has been reduced. To make room for crops, farmers can get additional income. The second largest proportion is the forestry industry, with 18%, fuelwood and cattle ranches accounted for10% and 8% respectively. Due to human activities, excessive deforestation and fires will produce large amounts of carbon dioxide. Additionally, producers of consumer goods will seize opportunities that the use of trees creates commercial value and potential, such as paper, furniture and homes, or extract ingredients like valuable medicinal herbs or process them into easily absorbable products, such as palm oil. or from agal wood spices. Overall, people often cut down a significant forest in order to make land available to others just for their own short-term profit, however, deforestation is the permanent destruction of forests. Carpet manufacturing causes air pollution There is a specific case in order to analyze and discuss sustainability challenges. Most carpet manufacturing is not an environmentally sound industry, as the majority of carpets are derived from petroleum. Additionally, carpet manufacturing factories are a heavy industry, their waste produced during the process contains many toxins and heavy metals, as well as large amounts of CO2 emissions. In practice, rugs are also made from nylon-based products that are not recycled and are therefore usually finished. in landfills. Transferred Pollution A new competitive environment has emerged, producers of consumer goods face urgent ecological and social challenges. Some companies in developed countries export their production to developing countries or build heavy industry in emerging economic markets in order to protect their domestic environment and profit on their own. Consumer goods producers such as furniture manufacturing companies, carpet manufacturers, the coal industry and several illegal rare animal trades will cause huge losses. These companies with high levels of greenhouse gas emissions face new and increasing financial risks and contribute to climate change when the value from stakeholders to shareholders in the upper left quadrant of the value transfer in the model of lasting value. Value Creation and Sustainability Integration This part will introduce value creation by its definition, combined with a sustainable value framework and levels 1+7 of strategic model, then discuss the integration of sustainability, including its advantages. Evaluate the Concept of Value Creation The Definition of Value Creation Value creation means that a business entity creates ongoing value for the shareholders of an organization. and stakeholders. “Value creation” is no longer limited to the financial domain. For example, value not only refers to a business generating revenue or return on capital, but also represents intangible factors such as innovation, people, ideas and brand. Organizational objective value creation model based on maximizing “sustainable value”. The Sustainable Value Framework According to the four squares of the Sustainable Value Framework, it is clear to locate any product or business and visualize its development trajectory over time. In this framework, three of the quadrants are fundamentally flawed, as companies deliver shareholder value while destroying stakeholder value. The upper left quadrant and lower right quadrant represent the company's value transfer, the former creates shareholder value through a low-cost strategy and avoids environmental rules while stakeholders suffer.