Unilever 2011 Annual Report Download - page 12

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BUSINESS MODEL
Our aim is to deliver growth. But not growth at
any cost – rather a new sustainable and equitable
form of growth. Strong business performance
is driven by our brands, people, and sustainability
– which is increasingly giving us a true
competitive advantage. We will invest in
strengthening our brands so that they drive
profitable growth as part of a sustainable
business model: the more we sell, the
more efficiently we can operate and,
at the same time, by reducing the
cost of running our business we
can invest more in our brands,
innovations, and advertising
and promotions. This, in turn,
enables us to sell more.
As a FMCG (fast-moving consumer goods) company, our
business model centres on building GREAT BRANDS
which consumers know, trust, like, and buy in
conscious preference to competitors’ products. Our
brands command loyalty and affinity and deliver
superior performance. They help consumers to
perform simple but essential everyday tasks.
Innovation is nourishment for our brands. It
helps to deliver superiority, increases our
competitiveness and allows us to appeal
to the widest range of consumers.
Increasingly, our innovations are
designed to enable sustainable living.
As a major employer, our business model is rooted in our
people. We have a distinctive set of values and they attract
people who bring a sense of purpose to their work. We
reward in line with performance and create a climate where
people are incentivised to excel. We develop leadership
capabilities early and place priority on building tomorrow’s
leaders today. All this combines to build a business of
GREAT PEOPLE.
A further element of our business model is SUSTAINABLE
LIVING. External factors will move it from being the choice
of a concerned few to a new norm for billions in this decade.
Companies who move quickly to enable it can seize major
competitive advantage by doing so. Our aim is to help
people move to a more sustainable way of using our
products and reduce the current rate of consumption of
scarce resources.
Our business model is designed to deliver SUSTAINABLE GROWTH, where sustainable means four things:
• it is consistent;
• it is competitive;
• it is profitable; and
• it meets major social and environmental needs.
Report of the Directors About Unilever
Unilever Annual Report and Accounts 2011
BUSINESS
STRATEGY
Our vision and other elements of our
business strategy are articulated in ‘the
Compass’, which was developed in 2009
and has remained a constant guide and
touchstone for all our employees. Key
elements of it are elaborated on in the
following pages.
OUR VISION IN ACTION
MEANS THAT, IN FUTURE,
EVERY TIME CONSUMERS
CHOOSE A UNILEVER
PRODUCT, IT IMPROVES
THEIR LIFE, THEIR
COMMUNITY AND THE
WORLD WE ALL SHARE.
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