Unilever 2011 Annual Report Download - page 32

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29
Description of risk What we are doing to manage the risk
Competition
The activities of our competitors may adversely impact our
business.
Unilever operates globally in competitive markets where other local,
regional and global companies are targeting the same consumer
base.
Our retail customers frequently compete with us through private
label offerings.
Industry consolidation amongst our direct competitors and in the
retail trade can bring about significant shifts in the competitive
landscape.
Our strategy focuses on investing in markets and segments which we
identify as attractive because we have already built, or are confident
that we can build, competitive advantage.
We continue to monitor developments in our markets across the
world and to direct our resources accordingly to respond to
competitive threats and opportunities.
Portfolio Management
Unilever’s strategic investment choices will determine the long-
term growth and profits of our business.
Unilever’s growth and profitability are determined by our portfolio of
categories, geographies and channels and how these evolve over
time.
Our Compass strategy and our business plans are designed to ensure
that resources are prioritised towards those categories and markets
having the greatest long term potential for Unilever.
Our acquisition activity is driven by our portfolio strategy with a clear,
defined evaluation process.
Sustainability
The success of our business depends on finding sustainable
solutions to support long-term growth.
Unilever’s vision to double the size of our business while reducing
our environmental impact will require more sustainable ways of
doing business. This means increasing the positive social benefits of
Unilever’s activities while reducing our environmental impact.
The Unilever Sustainable Living Plan sets clear long-term
commitments for health and well-being, environmental impact and
enhancing livelihoods. These are underpinned by specific targets in
areas such as sustainable sourcing, water availability and usage,
waste and greenhouse gases.
The Unilever Sustainable Development Group, comprising five
external specialists in corporate responsibility and sustainability,
monitors the execution of this strategy.
Progress towards the Unilever Sustainable Living Plan ismonitored
by the Unilever Leadership Executive and the Boards.
Customer Relationships
Successful customer relationships are vital to our business and
continued growth.
Maintaining strong relationships with our customers is necessary
for our brands to be well presented to our consumers and available
for purchase at all times.
The strength of our customer relationships also affects our ability to
obtain pricing and secure favourable trade terms.
We build and maintain trading relationships across a broad spectrum
of channels ranging from centrally managed multinational customers
through to small traders accessed via distributors in many developing
countries.
We develop joint business plans with all our key customers that
include detailed investment plans and customer service objectives
and we regularly monitor progress.
We have developed capabilities for customer sales and outlet design
which enable us to find new ways to improve customer performance
and enhance our customer relationships.
People
A skilled workforce is essential for the continued success of our
business.
Our ability to attract, develop and retain the right number of
appropriately qualified people is critical if we are to effectively
compete and grow.
This is especially true in our key emerging markets where there can
be a high level of competition for a limited talent pool.
Resource committees have been established and implemented
throughout our business. These committees have responsibility for
identifying future skills and capability needs, developing career paths
and identifying the key talent and leaders of the future.
We have an integrated management development process which
includes regular performance reviews underpinned by a common set
of leadership behaviours, skills and competencies.
We have targeted programmes to attract and retain top talent and we
actively monitor our performance in retaining talent within Unilever.
Unilever Annual Report and Accounts 2011
Report of the Directors About Unilever