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Discussion of Business model of Unilever Corporation

Describe about the Business model , Issues of stakeholders and Personal opinion about investing of Unilever Corporation?

This report contains some discussion of Unilever Corporation that mainly delivers its business operation by maintaining the society and environment. Unilever Corporation is a global company and the sales growth is very higher than any other companies of the competitive sector. It mainly is associated with producing consumer goods. It is the multinational company of consumer goods. It owns 400 brands of product. It operates its business by merging with some other company. This company delivers products like, food, cleaning and personal care products.

Figure 1: Business model of Unilever Corporation

(Source: www.unilever.com, 2015)

Unilever Corporation has designed its business model in order to deliver sustainable growth to the business process. They accept business model of sustainable and equitable growth.  People, brands and business operation are three major parts of business model of Unilever Corporation. Therefore, the outputs of this business model are divided into three parts, like sustainable growth, positive social impact and lower environment impact. These three elements are also the part of the vision statement of Unilever (Unilever.com, 2010).

Therefore, business model of this company focuses upon the brands of the company. They focus upon the brand equity and connections between the customers and the company. This company offers strong brand equity in order to create efficiencies among the customers. This company seeks to the diverse business operation by utilizing motivated and leadership quality people. This company delivers products to 2 billion customers. However, Unilever is trying to increase this number in order to develop more innovative and sustainable products (Ifama.org, 2015).

This company use global scale for delivering profitable growth of products. This company adds value to its supply chain by enhancing the quality of the products and service of customers within the competitive market sector. Innovation and development of product are the main motto of his company in order to operate sustainable and profitable growth of the business within the competitive market sector. Unilever Corporation tries to reduce the costs that help to improve margins. Moreover, the goals of the business model of Unilever is to improve the health and well being of the people as well as reduce the environmental impact and enhance the livelihoods of the people (Unilever.com, 2010).

Unilever Corporation conducts USLP (Unilever Sustainable Living Plan) that helps to improve the well being and livelihood of people by delivering products. This company promotes many programs of social responsibility among many countries. This company also tries to reduce green house gas in respect of the producing their products. Unilever generally measures its manufacturing progress per tone of production. It also uses lifecycle approach by calculating the results of environmental impact of its products. Therefore, every country including the home country of the author also needs this type of company that helps to grow its business by delivering sustainable growth to the business operation.

Figure 2: factors, effects and techniques of multi-stakeholder engagement of Unilever Corporation

Explaining whether Unilever’s model engages stakeholders or not

(Source: Ifama.org, 2015).

This model describes different style and techniques of stakeholder management. Here in this model individual factors are the attendance of mangers in various types of international events that has been arranged for stakeholders of many values, backgrounds and objectives. This also includes the ability of interactions with different stakeholders to the employees of the organization. Effective interaction with multiple stakeholders is also included in the stakeholder engagement process (Dara¡kuviena and Bendoraitiena, 2013).

Here in this model, Eskerod and Jepsen (2013) described that,  the organizational factors involve mainly the organizational culture, reward system in order to promote innovation. Employees and managers are always encouraged in order to propose new program. Every project of this company is made by considering the fact of environment and society. Innovation and proper development of the product always engage different knowledgeable employees. On the other hand, there is cross functional collaboration among the team of marketing, procurement and production (Spencer, 2013)

The strategic factors are involved in the background of information exchange process with the stakeholders of this company. Strong relationship with suppliers boosts the innovation process of manufacturing (Wu, 2013).

Therefore, this company takes the activity of engagements with multi stakeholders. This company undertakes actions on the process of sustainability with different activities of NGOs. This company also maintains the rules and regulations of the government of operating country. This also secures the supply of strategic resources (Reed, 2013).

Therefore, it can be analyzed that Unilever Corporation takes several activities in order to maintain the management of different stakeholders. Social and environmental impact of this company therefore helps in order to engage with different stakeholders.

According to Fraser (2013), Social and environmental impact causes no issue to the farmers of several developing countries of world. Stakeholder engagement includes in the corporate culture of this company. Extensive research and development process is also be done by this company. Cross functional process of this company helps to maintain effective relation with multi group of stakeholders of different choices and preferences (Fang et al. 2013).

According to Liu et al. (2014), Unilever has faced some issues and critical moments. Recent market share of Unilever Corporation has been decreased. Unilever Corporation has made a strong position among the group of investors who mainly focus upon the long term sustainability and the social and environment impact of a business company. However, Macagno (2013) argued that, mainstream investors often make interest on the short term profit of company. However, this issue should be considered by the company as because it has to make plan about its target of sustainable business (McGeorge et al. 2013).

Therefore, Muthuveloo (2013) argued that, long term investors often show interest upon the sustainability as well as long term growth of the particular company. It also relies upon the reputation and image of the company within the competitive market sector of business. However, I think that, Unilever Corporation should not sacrifice the commitments of social and environment cause as because it gives a different perspective of business within the competitive market sector. This can help in order to build an effective image and reputation within the market. This can also help in building trust among the customers. Strong brand equity also has been made by the implication of this type of strategy that impact upon the society and environment as well as the people.

Issues of stakeholders of Unilever Corporation

According to Missonier and Loufrani-Fedida, (2014), short term profit can be realized from the assets within the life span of a year or two year. Short term profit or short term investment often avoids risk for future and broad consequences of business. It often does not include social and environmental outcomes. It also does not retain the customers.

On the other hand, Tazhitdinov (2013) stated that, long term investing always impact upon long term success and sustainability of the company within the business sector of competitive market. Long term investment also impact upon the social and environmental cause.

I would always prefer to invest in that type of company that believes in the long term growth or sustainability expect than short term profit. I will go with the brand image or reputation of the company before investing in it. Long term investing will impact upon the social and environmental cause that will also satisfy the customers of the organization. Therefore, I will definitely go for a company that invests for long term success of the particular company.

As stated by Treharne (2008), every business company should maintain an effective task of corporate social responsibility along with making profit by providing products or service. Many companies take several initiatives by organizing some program on education, awareness. Some companies produce products those are harmless for the environment. Unilever Corporation is like a company who manufactures product of consumer goods those are very effective in order to impact upon the society and environment (De et al. 2014).

Government should involve these types of companies who sell products those are socially responsible and impact upon the environment. This type of company always impact upon different types of stakeholders of the organization. Long term implication also satisfies the loyal as well as potential customers and new customers also (Treharne, 2008).

Conclusion:

This report has dealt with effective business model of Unilever Corporation that helps to attract stakeholders of various groups. This report also has discussed about some issues of stakeholder engagement of Unilever Corporation. This also has discussed long term effect of environmental and societal effect of several companies. This company also has described the factor, process and types of stakeholder management within the company.

Reference list

De Brucker, K., Wiethoff, M., Marchau, V. and Macharis, C. (2014). Strategic analysis of stakeholder preferences regarding the design of ITS-based road safety measures. IET Intelligent Transport Systems.

Eskerod, P. and Jepsen, A. (2013). Project stakeholder management. Farnham, Surrey, England: Gower.

Fraser, C. (2013). Business statistics for competitive advantage with Excel 2013. New York: Springer.

McGeorge, W., Zou, P. and Palmer, A. (2013). Construction management. Chichester, West Sussex, U.K.: John Wiley & Sons Inc.

Spencer, B. (2013). Business model design and learning. [New York, N.Y.] (222 East 46th Street, New York, NY 10017): Business Expert Press.

Darškuvienė, V. and Bendoraitienė, E. (2013). The stakeholder concept analysis. MOSR, 68(68), pp.41-52.

Fang, H., Randolph, R., Chrisman, J. and Barnett, T. (2013). Firm religiosity, bounded stakeholder salience, and stakeholder relationships in family firms. Journal of Management, Spirituality & Religion, 10(3), pp.253-270.

Liu, R., Wu, Y. and Li, R. (2014). Stakeholder Analysis of EV Spread in China. AMM, 599-601, pp.2168-2172.

Macagno, T. (2013). A Model for Managing Corporate Sustainability. Business and Society Review, 118(2), pp.223-252.

Missonier, S. and Loufrani-Fedida, S. (2014). Stakeholder analysis and engagement in projects: From stakeholder relational perspective to stakeholder relational ontology. International Journal of Project Management, 32(7), pp.1108-1122.

Muthuveloo, (2013). ACHIEVING BUSINESS SUSTAINABILITY VIA I-TOP MODEL. American Journal of Economics and Business Administration, 5(1), pp.15-21.

Reed, R. (2013). Sustainability: a business phenomenon. American Journal of Business, 28(2).

Tazhitdinov, I. (2013). The applying stakeholder approach to strategic management of territories development. EoR, pp.17-27.

Treharne, R. (2008). Abstract of "The Ethics of Profit". J Long Term Eff Med Implants, 18(1), p.32.

Wagner, B. and Svensson, G. (2014). A framework to navigate sustainability in business networks. European Business Review, 26(4), pp.340-367.

Wu, M. (2013). Towards a Stakeholder Perspective on Competitive Advantage. IJBM, 8(4).

Ifama.org, (2015) International Food and Agribusiness Management Association - International Food and Agribusiness Association [online] Available at: https://www.ifama.org [Accessed 22 Feb. 2015].

Unilever.com, (2010). Unilever global company website | Unilever Global [online] Available at: https://www.unilever.com [Accessed 22 Feb. 2015]

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