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Unilever’s New Global Strategy: Competing through Sustainability2014, Unilever’s sales growth was only 2.9% -- the lowest in a decade. Shrinking demand due to emerging markets – and forecasting predicted little improvements in 2015Unilever was implementing a transformational strategy – Unilever Sustainable Living Plan (USLP) oThe initiative was not fully embraced by some parts of the organization oRequired significant upfront investments that could only be recouped in the longer term USLP was already well off-target on 2 key metrics oGHG impact per consumer increased 4% since 2010oWater use per consumer had fallen by only 2%Until 2014, Unilever was able to deliver BOTH on its financial expectations and its environment/social commitments – but could it continue this delicate balancing act?Unilever’s Rich HistoryUnilever is from 3 family businesses in the late 19thcenturyoNetherlands – 2 butter merchants Jurgens/Van den Berg who expanded into margarineoEngland – inexpensive household soap Lever oBrought together by a common ingredient – PALM OILUnilever was established on 1/1/1930 through the founding belief that a business would only prosper if it operated ethically and responsibility oDoing well by doing goodUnilever’s overseas operating companies (OpsCos) became pretty independent during WWII andit drove Unilever’s growth through the 50’s/60’s. 1990s Unilever struggled to balance the Categories’ quest for global and regional efficiencies with the OpCos’ responsiveness to national markets. After market share/financial performance continued to decline; the first time in Unilever’s history, the board decided to bring an outsider to lead the company in 20092009, Paul Polman became Unilever’s new CEOo“we need to know why we are here. The answer is, for consumers not shareholders”oNoticed the culture was “internally focused and self-serving” – froze salaries and cut overseas travel oReplaced CFO, CMO, Global Heads of Foods, Home, and Personal CareoWithin a year, changed 1/3 of the top 100 executivesCompass VisionoAimed to double the size of Unilever’s business while simultaneously reducing its