UNILEVER

Introduction

To seize opportunities at the bottom and top of the pyramid, companies usually need to refocus their business models to include the appropriate structures, systems, and strategies suited for the existing conditions at the bottom of the pyramid” (Epstein, 2008). There is an old saying; ‘Cream always rises to the top.’ Consider this; the best is always at the bottom not necessarily at the top, so the mindset of those at the top within corporations should be is this; look under all the rubbish of that at the bottom to find the diamonds in the rough. Times are changing and there are new comers at the bottom of the pyramid being brought up by corporation that want to bring brilliant and talented people into their companies and boards. “Working with the poor can also be a setting to develop innovations at low cost that can often be transferred to the developed economies (Epstein, 2008). When companies plan in form of development or branching out to do new innovative marketing for the millennium they must also incorporate the BOP to remain sustainable within these ever changing times. What the corporate world have encountered or forecasted is the Bottom of the Pyramid have say in what they will purchase and what they will not, and they are always asking for better quality products and merchandise. N1 is the ability to outsource to consumers and market your products (meaning) being and staying in touch with the consumer. The ability also means what the corporation can do as far as product and knowledge. RG is the ability to access or the accessibility of the consumer and the corporation to market and have access to the consumer whether it be mobile, in person, globally, or by internet.

Pro/Con Debate

“Firms operating at the bottom-of the pyramid are exploiting poor people by selling them consumer products that they do not need” (Economic Issues, 2015) When you say meeting of the minds to one mindset this is not just the rich, but also the poor included. Supply and demand is necessary for corporation to continue to flourish. Finding out what is needed within poor communities is essential, but there must be some understand that over looking to many poor or bottom of the pyramid people can cause a company to laps in sales and growth by simple negligence. Consumers who have a strong voice can and will be your best advisors on products and services. Remember that networking on all levels works. One of the barriers that I see within corporations is walls that where not always there. People like to know that these CEO’s are in touch with consumers and sometimes personally.

Within innovation the R=G this refers to the approach of understanding the nature of the resource base of large firms. Learning how to access high quality resources at low cost. The N1= this is the speed of creation, and the cycle time. Time is of the essence, so the process time is extremely important in order to implement the needed progress and changes. Passion, courage, humanity and humility (2008, Prahalad, Krishnan). Prahalad and Krishnan’s plan could be implemented within any firm, organization, or infrastructure. (Al-Salahuddin, 2012).

‘Unilever’

(Vision Statement)

A clear direction

The four pillars of our vision set out the long term direction for the company – where we want to go and how we are going to get there:

· We work to create a better future every day.

· We help people feel good, look good and get more out of life with brands and services that are good for them and good for others.

· We will inspire people to take small everyday actions that can add up to a big difference for the world.

· We will develop new ways of doing business with the aim of doubling the size of our company while reducing our environmental impact.

We’ve always believed in the power of our brands to improve the quality of people’s lives and in doing the right thing. As our business grows, so do our responsibilities. We recognize that global challenges such as climate change concern us all. Considering the wider impact of our actions is embedded in our values and is a fundamental part of who we are (Unilever, 2015).

Profit or CSR as the Driver for “For-Profit” Organizations?

Companies Making Money off the Poor the Pros and Cons

The big question is it morally correct for big business or big corporations to make money off the poor, and I would have to say yes, but with moral standards and for the company to have guidelines that up hold policies & procedures that put emphasizes on what is consider morally correct within business conduct.

The Unilever way of doing business is to create a line of affordable products that are of standard quality or above that people at the ‘BOP’ can purchase. Pertaining to Unilever they stated, “Part of the reason for Unilever’s engagement is the potential to enter markets that remain relatively untouched by Western Multinationals. An important incentive, therefore, is to move before the competition. P&G, for example, also sees the potential that these markets offer and is eagerly exploring how to build a business model to appeal to BOP consumers (Unilever, 2015). Unilever is touching bases with second and third world countries to create a system of quality products that are affordable and accessible by all.

Briefly Outline Unilever’s Commitment and (BOP)

(Unilever Commitment Statement)

Sustainable Sourcing

At Unilever we have set industry leading benchmarks for responsible sourcing to deliver on our commitment to sustainable growth, it’s important to have you, our suppliers, with us on our journey. To find out more on how Unilever intends to deliver on our commitments and help you deliver on yours, click on the Responsible and Sustainable Sourcing brochure on the right. This standards guide for our supply partners outlines:

· The standards we set for ourselves

· What we expect from our partners

· Achieving our sustainability goals

The sourcing of our agricultural raw materials is a big contributor to our environmental footprint, so working in close alliance with supplier partners who share our values and want to grow sustainable businesses with us is vital.

In the Unilever Sustainable Living Plan, we commit to three significant outcomes by 2020:

· To help more than one billion people take action to improve their health and well-being.

· To halve the environmental footprint of the making and use of our products.

· To source 100% of our agricultural raw materials sustainably.

Together, we aim to first focus our efforts on our top ten agricultural raw material groups which account for around two-thirds of our agricultural raw material volumes. At the end of 2011 we sourced 24% of our agricultural raw materials sustainably. Under our sustainable sourcing roadmap to 2020, we will source 30% of them sustainably by 2012, 50% by 2015 and 100% by 2020.

Our sustainable sourcing programme will either use external certification where possible or self-assessment and verification against the Unilever Sustainable Agriculture Code where no international standard exists. The Code is applicable to all our agricultural raw materials, it details the standards we ask you to adopt and indicates the need for improvement over time. For those of you who already have a sustainability standard in place, we would look to assess this against our Code and agree improvement plans only if necessary.

Additionally, we have now produced scheme rules (Link opens in a new window) (870KB) to define whether a raw material will contribute to our sustainable sourcing metric. Find out more about our Sustainable Living Plan.

(Unilever, 2015)

This commitment statement that Unilever has created has gone global and other countries are also taking on the commitment to create a fair BOP that will allow consumers the equal standards at the Bottom of the Pyramid. Money has no color or boundaries within the consumer market and the BOP make up the majority of the consumers in today’s market. What many corporations have noticed is the majority rules in some way or another within the retail industry and they too do massive networking and word of mouth advertising. Having a clear understanding that the money is green at the bottom as well as the top.

Explain Whether Unilever’s Plan and Strategy Works

Unilever’s plan of action is brilliant not just because I grew up on many of the products, but because they do create excellent products. One of the many items that are on Unilever’s consumer list is ‘Dove Soap’ a product that my Grandmother use to use and I do as well. The commitment for ‘Unilever’ to keep their standards of quality products and include the BOP creates a climate of raising the bar for other for profit corporations to follow by. Unilever stated, “The highest standards of corporate behavior towards everyone we work with, the communities we touch, and the environment on which we have an impact” (Unilever, 2015). Unilever did not just plan on being the sole proprietor on a commitment to develop viable products for the BOP, but they asked other players within the corporate world to team up with Unilever to develop a plan of action to deliver quality products and services on a global bases.

Conclusion

Prahalad and Krishnan the creators of the N=1 R=G formulary that creates an economic consumer ecosystem for the BOP is exceptional for those whom do live at the BOP considering those whom live and work at the top of the pyramid also utilize the same products as well. The formulation of ability and access that incorporates the ‘The Bottom of The Pyramid’ is the new commitment that the millennium brings to all walks of life. Unilever is making a commitment on all levels with their go-green policy and campaign to reach out to third world countries to ensure that consumers receive quality products and services. Unilever has not only included excellent CSR they included excellent CSR for the poor at the BOP along with the well to do at the top of the pyramid.

Reference

Al-Salahuddin, T. (2013, November 23). The Rise of a Structure (BOP). Retrieved February 12, 2015, from https://esteemmotivational.wordpress.com/2013/11/23/the-rise-of-a-structure- bop/

Our vision. (2015). In A clear direction. Englewood Cliffs, NJ: Unilever USA.

Prahalad, C. K. (2008). New Age of Innovation: Driving Cocreated Value through Global Networks. New York, NY, USA: McGraw-Hill Professional Publishing,http://site.ebrary.com/lib/capella/Doc?id=10221901&ppg=245

Sustainable Sourcing. Retrieved February 12, 2015, from http://www.unilever.com/aboutus/supplier/sustainablesourcing/

Vachhrajani, D. H. (2006-2012). N=1 the case for grounded theory research in innovation Retrieved from http://www.triz-journal.com/content/c100705a.asp Zenger, J., & Folkman, J. (2007). The handbook for leaders. New York, NY: McGraw Hill.