Unilever Essay

As the name suggests Honest tea is a brand that produces 100% organic iced teas, aimed at the health conscious. In this assignment I will attempt to, identify the target market, conduct a situational analysis as well as set SMART communication objectives for the brand.

The purpose of this paper is to compare the sustainability practices of two companies in the same industry. The two companies chosen for comparison are The Hershey Company and Coca-Cola Enterprises, both of which are in the consumer staples industry. These two corporations are ranked sixth and eighth, respectively, on the Newsweek Top Green Companies in the U.S 2015. They have taken pride in creating sustainable product designs, having environmentally sustainable processes and supply chain management.

Operation of Unilever around the world starts fragmenting, but Unilever continues to expand globally and investment made in R&D is increased.

This report aims to analyse the financial position of Unilever PLC within its daily operating activities and it also compares the company’s performance with its key competitor, the Proctor and Gamble Company (P&G). The report also includes background of both the companies and an industry overview. To better understand the performance of both the companies, the segmental analyses have been done for both region and products. Due to the global crisis, Unilever and P&G both are facing price rise and inflation pressures, also instability in the Eurozone. All these factors are strongly impacting their operation activity and long-term growth decision plan. Finally After a careful examination of the financial ratios of both the companies, we recommend Unilever as a good company to invest as compared to P&G .The reasons for the following can be seen in the report below.

5. Since Rogers’ has great credit worthiness and a great borrowing capacity, they could improve their CSR image by using that capacity to acquire its supplier and provide them with organic and fair trade capabilities as well as increase manufacturing technologies. Not only will this help give Rogers’ a better social responsibility image, it will allow Rogers’ to expand their product varieties and qualities even further to adapt to the emerging needs of health-driven “chocaholics”. By creating a wider variety of products, retail, wholesale, and online outlets will be able to satisfy more consumers, thus increasing market share. A 2007 online study conducted by Image Power Green brands about attitudes and behaviors toward the chocolate market has shifted dramatically; virtually 100% of those surveyed express some desire for greener practices, up from 58% a year ago (Kuhn). It also states Endangered Species Chocolates’ growth in the past year has increased 200% in its retail sales mainly due to their focus on

Before viewing the videos, I thought of how Whole Foods Market (WFM) is a model company for corporate social responsibility. I am therefore not surprised that the company was the first to endorse Honest Tea. Seth Goldman, CEO of Honest Tea, echoes some of the very same sentiments that John Mackey, founder of WFM does with regards to the purpose and mission of his company. Per Goldman CRS is the focal point of how Honest Tea is managed and the motivation behind the business is not to see, “how many bottles can we sell to make money but how many bottles can we sell to expand this model of business to make its impact more powerful, creating more than just a business” (Honest Tea Marketing video).

All the factors mentioned above are the reasons why a company like Frito-Lay should make such major moves toward sustainable and ethical sourcing. Having to satisfy one factor might not help the company remain competitive, the company needs to take into consideration of every factor if it wants to stay on the top of the industry. For instance, Since the Frito-Lay is part of PepsiCo, it has to follow PepsiCo’s concept of “performance with purpose”. The meaning behinds this concept is to prove to the consumers that Frito-Lay is a healthy snack, which ties back to the LOHAS

Most coffee growing regions are also home to some of the most delicate ecosystems on earth, therefore it is imperative that the money being profited from this luxurious treat is trickling its way back down to support, not only the workers, but the environment as well. Unfortunately, it has not. In an article titled, “How Green is You Coffee?” writer Michael Jenner clearly depicts just what exactly is happening and how it is hurting our planet earth. “The biggest source of environmental damage where coffee is concerned comes during the production of the beans themselves. The global surge in demand has had a profound effect on the growing methods used with massive implications on sustainability” (2015.) The use of shaded canopy trees allowed the beans to grow naturally and provide a habitat for indigenous species. It also prevented topsoil erosion and erased the need for any use of chemical fertilizer. As soon as market demands grew this organic growing process soon changed to a quicker and more profitable form of agriculture better knows an ‘sun cultivation.’ “Originating in the 1970s, sun-grown coffee is produced in plantations, with no forested canopy, which has resulted in fertilizers becoming a necessity and has had a seriously detrimental effect on biodiversity” (Jenner 2015). WWF recently made the

Additionally, on a socio-cultural level, many consumers feel that restaurants partaking in green initiatives and operations are doing their part to not only help sustain the earth but also to conserving natural resources (Hu, Parsa & Self, 2010). “Going green” is not simply a trend in the food service industry but around the world and in all forms of business. Corporate companies consider “going green” as a sensible business strategy in building recognition for corporate social responsibility among consumers concerned with environmental conservation efforts. Lastly, technological initiatives such as Energy Star appliances (dishwashers, refrigerators, ice machines, etc.) and faucets that use less water must also be analyzed in their ecological conservation capability and weighed against their financial costs (University of Notre Dame, 2014).

The Company was incorporated in the State of West Bengal, India on 14th June 1977 as a public limited company under the provisions of the Companies Act 1956 (Act). Its main objects per Memorandum & Articles of Association are, amongst other things, to grow, cultivate, manufacture, treat, blend, process, buy, sell and deal in tea in various forms, to carry on the business as planters in all its branches, to manufacture, buy, sell and deal in machinery for processing tea and in connection therewith or acquire by amalgamation, purchase, take-over or otherwise the whole or part of the assets, liabilities and undertaking in India or elsewhere of any other company, body corporate, firm, association of person.

Company has well developed future sustainable strategy that they are planning to implement by 2020. Their minimal goal is to ensure 100% sustainable cocoa till 2020 (as shown in figure 5) and go beyond the RSPO norms and contribute to the elimination of child labour or any form of human traffic. As well, it includes:

The second issue was whether and how Unilever could gain market advantage from its move to

As Starbucks continues to expand, more profits and more risks are in store. The corporation’s brand and reputation may be put at risk as the quality of the products supplied by third parties is outside of the company’s control (―Starbucks Corporation Fiscal 2009 Annual Report‖, 20). Partnering with farmers and suppliers meant letting go of control over the quality of certain products. In order to retain customers and protect their brand, Starbucks must establish and maintain effective working relationships with reputable farmers and suppliers, which could increase costs.

Being one of the biggest producers, the company faced the problems associated with mass production, specifically pollution and negative environmental changes. Unilever’s team determined a need for ethical business practices and revised their strategy to create a new strategy for sustainable business with an environmentally conscious approach.

With the support of Rainforest Alliance and 4C, all directly purchased green coffee will be compliant with the internationally recognized 4C sustainability standards by 2015.