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On the money: "Iconic" brands will help Kraft battle input costs -
CEO
11 February 2011
Kraft Foods chairman and CEO Irene Rosenfeld has insisted that the US food giant's "very, very
strong, iconic brands" and its marketing plans will help the company convince retailers to
increase prices in the face of rising input costs.
7 February 2011
In what was a record week for just-food in the volume of stories published, the political crisis in
Egypt and its impact on the food sector took centre stage.
4 February 2011
Egypt has dominated headlines around the world this week and the political crisis has had an
impact on the food sector, particularly on multinationals operating in the country. Within the
industry, this week saw the start of the world's largest food makers announce their 2010 results -
Hershey, Unilever and Kellogg were among those reporting. And, today (4 February), Benecol
maker Raisio made another push into the UK with the acquisition of cereal and confectionery
maker Big Bear Group.
4 February 2011
Financial results from the food manufacturers came thick and fast this week, with updates
coming from Kellogg, Unilever and Hershey, among others. Here's the best of what was said this
week.
UPDATE: UK: Unilever's Polk unfazed about commodity pressure
3 February 2011
Unilever will increase its prices at a more "rapid rate" in 2011 as it continues to look to offset
rising commodity costs, concerns over which hit the company's share price today (3 February).
3 February 2011
Unilever today (3 February) booked a jump in annual profits on the back of higher proceeds from
disposals, lower restructuring costs and accelerating underlying sales in the fourth quarter.
Michael Polk, president of Unilever's foods, home and personal care businesses, also noted that
the company had enjoyed its strongest growth in sales volumes for over 30 years. However, this
afternoon, Unilever's shares were down on the London Stock Exchange. Here is a selection of
comments on Unilever's results from key analysts.
3 February 2011
Unilever has posted a 26% jump in annual profits as the consumer goods giant benefited from
lower restructuring costs and proceeds from business disposals - but also from accelerating
underlying sales in the fourth quarter.
2 February 2011
The chief executive of PepsiCo has said that local Egyptian employees are protecting its facilities
in the country as local political protests enter their ninth day.
2 February 2011
Sara Lee's management no doubt hoped the announcement of plans to split the US food group in
two would give the market some clarity over its future but, writes Dean Best, Wall Street
analysts believe the new-look companies will still be potential takeover targets.
2 February 2011
Nestle has closed its three production plants in Egypt - and its local headquarters in Cairo - due
to the political unrest in the African country.
28 January 2011
Sara Lee, the US food group, has this afternoon (28 January) confirmed plans to split itself in
two.
21 January 2011
The news that Wal-Mart Stores is to reformulate thousands of its packaged food products
through the lowering of sodium and sugars has garnered a mix of reactions from industry
watchers, many of whom believe the initiative may now cause a ripple effect throughout the
sector.
21 January 2011
Unilever has named the head of its operations in south-east Asia and Australasia as president of
its business in western Europe.
20 January 2011
Wal-Mart Stores has announced plans to reformulate thousands of its packaged food products
including slashing sodium by 25% and cutting sugars by 10% by 2015.
10 January 2011
Unilever has appointed Paul Nevett as global vice president for of the company's brand as part of
efforts to build the manufacturer's corporate reputation.
6 January 2011
Anglo-Dutch consumer goods giant Unilever has appointed Peter Ernsting as vice president of
customer development for the Netherlands.
The just-food interview - James Lambert, R&R Ice Cream
23 December 2010
The ice cream sector in Europe is dominated by Unilever, the consumer goods giant behind
brands like Wall's, Magnum, Carte d'Or and Ben & Jerry's. However, UK-based R&R Ice Cream
is building a business to be the other major player in the market. In this month's just-food
interview, Dean Best spoke to R&R chief executive James Lambert about the company's
ambitions.
20 December 2010
Kraft Foods' move to buy Cadbury in January failed to spark a burst of M&A activity in the food
industry, as economic conditions continued to dampen attitude to risk. As the year progressed,
however, and confidence returned, the pace of acquisitions picked up. But as Dean Best reports,
the nature and rationale behind the deals has altered significantly.
20 December 2010
There have been over 640 stories in just-food's M&A section since April this year covering
everything from industry-changing mergers to bolt on acquisitions and brand disposals. This
section to the briefing tracks the major moves through the year by looking at all the deals that
were put under scrutiny in our insights section.
20 December 2010
As we headed into September, there was uncertainty about the prospects for M&A activity, with
analysts at KPMG suggesting the value of deals in the food, drink and consumer goods space in
the second quarter stood at just under US$19bn - down from the $49bn of deals recorded in the
first three months of the year. However, the last months of 2010 saw a number of key pieces of
M&A - notably the merger of Greencore and Northern Foods - and deals signed to see PepsiCo
buy Wimm-Bill-Dann and a private-equity consortium by Del Monte Foods.
26 November 2010
The launch last week of Unilever’s Sustainable Living Plan sees the Anglo-Dutch food-to-
deodorants group once more setting the pace on corporate sustainability. Ben Cooper spoke with
Karen Hamilton, Unilever’s vice president for sustainability, about the new strategy and how its
ambitious targets set the plan apart from corporate rhetoric.
26 November 2010
This week had a couple of key interviews this week, with Associated British Foods' finance
director speaking to just-food about commodity costs and restructuring in the group's grocery
division, while we spoke to Gu founder James Averdieck about what the company has been
doing since its sale to Noble Foods earlier this year. Meanwhile Ireland announced a series of
austerity measures in the country which look set to impact the retail sector and Campbell Soup
Co continued to post disappointing results. Here's the best of what was said this week:
26 November 2010
As Ireland's economic crisis dominated the business pages, data on the country's grocery retail
sector suggested it was returning to growth after months in the doldrums. However, will Dublin's
IMF-backed austerity package stall that growth? Elsewhere, management at Del Monte Foods
said yes to a US$5.3bn private-equity takeover, Danone snapped up US yoghurt-maker YoCream
International and Campbell Soup Co. and Hormel Foods revealed differing fortunes to the
market.
24 November 2010
The chief executive of Northern Foods has stepped down to take up a senior role at foodservice
supplier Brakes Group, just a week after Northern announced plans to merge with Irish ready-
meals supplier Greencore.
19 November 2010
The merger between Greencore and Northern Foods, the race to own Yoplait, reform of Europe's
farm policy and Unilever's new push on sustainability all got people talking this week. Here is
the best of who said what.
19 November 2010
In the week that just-food kicked off its Open House period, the food sector saw a merger with
implications on both sides of the Atlantic with the deal between Greencore and Northern Foods.
In the US, Heinz, JM Smucker and Wal-Mart Stores reported their latest numbers to Wall Street.
And, in Europe, the battle for yoghurt brand Yoplait intensified when Lactalis tabled a
EUR1.4bn (US$1.91bn) - that was swiftly rejected - while the EU launched plans to reform farm
policy.
19 November 2010
The head of Europe's leading consumer watchdog has said mandatory EU labelling information
has become so complex and detailed even she cannot understand it.
18 November 2010
The UK's Office of Fair Trading has dropped its investigation into allegations of price fixing
between the country's biggest supermarket chains and consumer goods firms.
17 November 2010
Knorr soups-maker Unilever said it will increase prices on some of its products in a bid to recoup
higher commodity costs.
15 November 2010
Unilever said it needs to attract "the right investors" as it today (15 November) set out plans to
halve the environmental footprint of its products.
One is a lonely number, unless you're Unilever. A top maker of packaged consumer goods worldwide,
Unilever products are sold in more than 170 countries throughout Africa, Asia, Latin America, the Middle
East, North America, and Western Europe. The company's offerings span several categories, including
savory, dressings, and spreads; ice cream and beverages; personal care; and home care. Unilever's vast
portfolio includes 11 brands that ring up more than $1 billion each annually. The best sellers include
Hellmann's (mayonnaise), Knorr (soups), Lipton (tea), Dove and Lux (soaps), and Sure and Degree
(antiperspirants). Unilever is the operating arm of Netherlands-based Unilever N.V. and UK-based
Unilever PLC.
Contact Information
Address: Unilever House, 100 Victoria Embankment
London EC4Y 0YD, United Kingdom
Phone: +44-20-7822-5252 begin_of_the_skype_highlighting +44-20-7822-
5252 end_of_the_skype_highlighting
Fax: +44-20-7822-5951
Financial Highlights
Fiscal Year End: December
Revenue (2009): 57074.30 M
Revenue Growth (1 yr): (-0.10%)
Employees (2009): 163,000
Employee Growth (1 yr): (-6.30%)
Key People
Industry Information
Top Competitors
Unilever is a British-Dutch multinational corporation that owns many of the world's consumer
product brands in foods, beverages, cleaning agents and personal care products.
Unilever's main international competitors include Nestlé and Procter & Gamble. They also face
competition in local markets or product ranges from companies such as ConAgra, Danone,
General Mills, Henkel, Kraft Foods, Mars, Inc., Pepsico, Reckitt Benckiser, Sara Lee and S. C.
Johnson & Son.
Contents
[hide]
• 1 History
• 2 Products
• 3 Advertising
• 4 Corporate governance
• 5 Corporate image
o 5.1 Environmental issues
o 5.2 Social issues
• 6 See also
• 7 References
• 8 External links
[edit] History
Unilever was created in 1930 by the amalgamation of the operations of British soapmaker Lever
Brothers and Dutch margarine producer Margarine Unie, a merger as palm oil was a major raw
material for both margarines and soaps and could be imported more efficiently in larger
quantities.
In the 1930s the Unilever business grew and new ventures were launched in Latin America. In
1972 Unilever purchased A&W Restaurants' Canadian division but sold its shares through a
management buyout to former A&W Food Services of Canada CEO Jefferson J. Mooney in July
1996.[3] By 1980 soap and edible fats contributed just 40% of profits, compared with an original
90%. In 1984 the company bought the brand Brooke Bond (maker of PG Tips tea).
In 1987 Unilever strengthened its position in the world skin care market by acquiring
Chesebrough-Ponds, the maker of Ragú, Pond's, Aqua-Net, Cutex Nail Polish, and Vaseline. In
1989 Unilever bought Calvin Klein Cosmetics, Fabergé, and Elizabeth Arden, but the latter was
later sold (in 2000) to FFI Fragrances.[4]
In 1996 Unilever purchased Helene Curtis Industries, giving the company "a powerful new
presence in the United States shampoo and deodorant market".[4] The purchase brought Unilever
the Suave and Finesse hair-care product brands and Degree deodorant brand.[5]
Global employment at Unilever 2000-2008
Black represents employment numbers in Europe, light grey represents the
Americas and dark grey represents Asia, Africa, and Middle East. Between 2000 and
2008 Unilever reduced global workforce numbers by 41%, from 295,000 to 174,000.
Note: Europe figures for 2000-2003 are all Europe; from 2004 figures in black are
Western Europe. For 2004-2008 Figures for Asia, Africa and Middle East include
Eastern and Central Europe.
Source: Unilever Annual Reports 2004, 2008
In 2000 the company absorbed the American business Best Foods, strengthening its presence in
North America and extending its portfolio of foods brands. In April 2000 it bought both Ben &
Jerry's and Slim Fast.
The company is multinational with operating companies and factories on every continent (except
Antarctica) and research laboratories at Colworth and Port Sunlight in England; Vlaardingen in
the Netherlands; Trumbull, Connecticut, and Englewood Cliffs, New Jersey in the United States;
Bangalore in India (see also Hindustan Unilever Limited); and Shanghai in China.
The US division carried the Lever Brothers name until the 1990s, when it adopted that of the
parent company. The American unit has headquarters in New Jersey, and no longer maintains a
presence at Lever House, the iconic skyscraper on Park Avenue in New York City.
Unilever's Lipton brand
The company is said to promote sustainability[6] and started a sustainable agriculture programme
in 1998.[7] In May 2007 it became the first tea company to commit to sourcing all its tea in a
sustainable manner,[8] employing the Rainforest Alliance, an international environmental NGO,
to certify its tea estates in East Africa, as well as third-party suppliers in Africa and other parts of
the world.[9] It declared its aim to have all Lipton Yellow Label and PG Tips tea bags sold in
Western Europe certified by 2010, followed by all Lipton tea bags globally by 2015.[10]
Covalence, an ethical reputation ranking agency, placed Unilever at the top of its ranking based
on positive versus negative news coverage for 2007.[11]
In 2008 Unilever was honoured at the 59th Annual Technology & Engineering Emmy Awards
for "Outstanding Achievement in Advanced Media Technology for Creation and Distribution of
Interactive Commercial Advertising Delivered Through Digital Set Top Boxes" for its program
Axe: Boost Your ESP.[12]
On August 9, 2010, Unilever signed an asset purchase agreement with the Norwegian dairy
group TINE, to acquire the activities of Diplom-Is in Denmark, as of 30 September 2010.
On September 24, 2010, Unilever announced that it has entered into a definitive agreement to
sell its consumer tomato products business in Brazil to Cargill
On September 27, 2010, Unilever purchased Alberto-Culver, the maker of personal care and
household products such as VO5, Nexxus, TRESemmé, and Mrs. Dash for $US3.7 billion.[13]
On September 28, 2010, Unilever and EVGA announced that they have signed an agreement
under which Unilever will acquire EVGA’s ice cream brands (amongst others, Scandal, Variete
and Karabola) and distribution network in Greece, for an undisclosed amount.
[edit] Products
For a full list of billion dollar brands, see List of Unilever brands.
Unilever owns more than 400 brands as a result of acquisitions, however, the company focuses
on what are called the "billion-dollar brands", 13 brands, each of which achieve annual sales in
excess of €1 billion. Unilever's top 25 brands account for more than 70% of sales.[14] The brands
fall almost entirely into two categories: Food and Beverages, and Home and Personal Care.
• Aviance • Lipton
• Axe/Lynx • Lux (soap)
• Blue Band[15] • Omo/Surf (detergent)
• Dove • Rexona/Sure
• Flora/Becel • Sunsilk
• Heartbrand
• Hellmann's
• TIGI (haircare)[16][17]
• Knorr
[edit] Advertising
A freezer in Queens, NY filled with Strauss ice cream from Israel with the Heartbrand
• Lynx/Axe click advert with Nick Lachey (US only) and Ben Affleck (Non-US
only)
• PG Tips Monkey and Al
• Knorr Chicken Tonight, 'I feel like chicken tonight'
• Flora London Marathon
• Knorr global brand
• Dove Campaign for Real Beauty, including Evolution
• Calve Pindakaas (peanut butter) in the Netherlands
• Comfort Pure recommended by mothercare
• Clear Anti-Dandruff shampoo and conditioner with the entertainer Rain
• Clear Anti-Dandruff shampoo and conditioner with the entertainer Nicole
Scherzinger
• Clear Soft and Shiny shampoo and conditioner with the actress Sandra Dewi
Unilever's highest executive body is called the Unilever Executive which is led by the Group
Chief Executive (Paul Polman). It is responsible for delivering profit and growth across the
company.
Unilever claims that corporate social responsibility is at the heart of its business.[18] However, the
transition to a responsible and sustainable company is ongoing and Unilever has attracted a
variety of criticisms from political, environmental and human rights activists on not achieving
the high aims it communicates on a number of topics.[19]
Phosphate
Unilever is still using Phosphate [20] in the products like OMO & SKIP in South America
sometimes overpassing the law and competing with all the local brands which are Phosphate
free.
Palm oil
Unilever has been criticised by Greenpeace for causing deforestation,[21] Unilever was targeted in
2008 by Greenpeace UK,[22] which criticised the company for buying palm oil from suppliers that
are damaging Indonesia's rainforests. Unilever, as a founding member of the Roundtable on
Sustainable Palm Oil (RSPO), responded by publicizing its plan to obtain its palm oil from
sources that are certified as sustainable by 2015.[23]
In Côte d'Ivoire, one of Unilever's palm oil suppliers was accused of clearing forest for
plantations, an activity that threatens a primate species, Miss Waldron's Red Colobus. Unilever
intervened to halt the clearances pending the results of an environmental assessment.[24]
On 4 July 2010, Unilever announced that it has secured enough GreenPalm certificates of
sustainable palm oil to cover the requirements of its European, Australia, and New Zealand
business.[citation needed] GreenPalm is a certificate trading programme, endorsed by the RSPO, which
is designed to tackle the environmental and social problems created by the production of palm
oil.
Rainforest Alliance
Unilever has committed to purchase all its tea from sustainable, ethical sources.[citation needed] It has
asked the international environmental NGO, Rainforest Alliance, to start by certifying tea farms
in Africa.
Lipton and PG Tips will be the first brands to contain certified tea. The company aims to have all
Lipton Yellow Label and PG Tips tea bags sold in Western Europe certified by 2010 and all
Lipton tea bags sold globally by 2015.
Animal testing
Unilever states it is committed to the elimination of animal testing, and where it is a legal
requirement in some countries, it tries to convince the local authorities to change the law.[25]
Some activists[who?] argue that this is little more than an effort to gain good publicity and Unilever
continue to use animal experimentation such as the LD50 poisoning test.
The Austrian branch of Unilever (Eskimo) is producing and marketing an ice-cream under the
name Mohr im Hemd. "Mohr" (moor), is a colonial German word for African or black people,
has a heavily colonialist and racist connotation.,[27][28] "Mohr im Hemd" (moor in the shirt) is a
traditional Austrian chocolate speciality which refers to naked, "wild" Africans. Unilever refutes
any racist intentions and claims that it has tested the name in broad market studies in Austria
without any critical feedback.
Sexism in advertisements
The Campaign for a Commercial-Free Childhood criticized Unilever for the 2007 Axe marketing
campaign, which they considered sexist.[29] Unilever's response is that the Axe campaign is
intended as a spoof and "not meant to be taken literally".[30]
Unilever has launched the Dove "Real Beauty" marketing campaign, which encouraged women
to reject the underfed and hyper-sexualized images of modern advertising in 2007.[31]
Child labour
In 2003 Hindustan Unilever was accused of making use of child labour,[32] among others.
Netherlands
portal
Companies
portal
[edit] References
• Official website
• Sustainable Living Plan
• Foodservice website
• Lady Lever Art Gallery
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- Provides all the crucial information on Unilever required for business and
competitor intelligence needs
- Contains a study of the major internal and external factors affecting
Unilever in the form of a SWOT analysis as well as a breakdown and
examination of leading product revenue streams of Unilever
-Data is supplemented with details on Unilever history, key executives,
business description, locations and subsidiaries as well as a list of products
and services and the latest available statement from Unilever
Reasons to Purchase
Unilever
Nestlé SA
Product innovations
We use our knowledge and imagination to translate science into products that meet
a range of consumer needs. In this section you can find examples of this work.
The secret of taking care of your skin lies in getting moisture to all its layers – and
keeping it there.
Every so often great innovations are discovered more by chance than by design.
The development of Cif Shield Technology started with just such an accidental
observation: one that unlocked the secret to superior cleaning.
Woman washing
Rinsing clothes is the most water- and time-consuming part of hand washing. How
are we helping?
There’s a good reason why Sunsilk is the number one hair care brand in Asia, Latin
American and the Middle East, and the fastest-growing in Europe - tip-targeting
technology.
Intelligent deodorant
Knorr helps home-cooks provide natural and nutritious meals for their families in a
convenient way. This story describes the transformation of one of Knorr’s iconic
products: the bouillon cube becomes the Stock Pot.
Magnum icecream
Since its launch in Europe in the early 90s, Magnum has grown to be one of
Unilever’s biggest brands, bringing real chocolate indulgenI think we’ve all seen the
Dove Campaign for Real Beauty or the Dove Self Esteem Fund. This seems like an
honourable cause, and for a while I was pleased to see a change in attitude being
led by a big company! Finally!
Then I learned more about Dove, their campaign, and their parent company, and
now I find myself boycotting Dove (among other products), and listing for you some
of the many reasons why.
First I’d like to acknowledge a few things that may occur to readers.
3)There are other issues with Unilever, some I may go into briefly, but many are not
relevant to my argument. There are issues with outsourcing labour, animal testing,
and products marketed in countries such as India and Malaysia which are
considered racist (search Fair & Lovely on youtube, you will be amazed). I will be
focusing on issues relating to Unilever’s hypocritical sexism, as well as a handful of
issues I have with the advertising campaigns for both Dove and Lynx (both Unilever
products).
I’ll start with Dove. Their aim (apart from selling their product) is to “make women
feel beautiful every day by widening the definition of beauty and inspiring them to
take great care of themselves”. Ok, sounds good (maybe apart from the “inspiring
them to take great care of themselves” part which to me sounds like “wash with
dove soap”) but why don’t we take a closer look. Dove aims to “widen the definition
of beauty” – so rather than “beautiful” meaning a tall, blonde, thin model with big
boobs, Dove encourage us to consider other women as being beautiful too – they
use images of larger women, older women, freckly women, darker women, etc in
their advertisements. This is in itself an admirable task, but is it really feminist?
Dove still places value on beauty – being beautiful is the aim of this campaign, even
if beauty has been redefined, it is still something we are expected to strive towards.
In an effort to tackle the self-esteem issues of teenage girls, Dove suggests we “Tell
her she’s beautiful”. Why not “tell her she’s intelligent”, “tell her she’s kind”, “tell
her she’s valuable”, “tell her she’s loved”. Granted, Dove is only a beauty company,
but as mentioned before, by tackling this issue of female self-esteem, they must
either do it right or not do it at all. If beauty is the only thing we have to strive for,
where does this leave women who don’t fit in to Dove’s expanded definition of
beauty? There are no images of morbidly obese women in Dove campaigns, no
burns victims, no amputees, no albinos, no dwarves... yes I’m taking it a bit far
here, but only in an effort to demonstrate that Dove’s broadened definition of
beauty can serve to further marginalise those who don’t fit in to it. Not only has
patriarchal society deemed them ugly, but even Dove has conveniently ignored
them. The message that Dove fails to send to women is that beauty isn’t
everything, and there is no reason why women can’t be valuable, visible members
of society if they’re ugly. Not everyone’s beautiful, but everyone’s valuable.
Even if you don’t agree with these points, there is one thing you may agree with me
on, once you have read on. The Dove Campaign for Real Beauty is completely null
and void, absolutely hypocritical and ineffective when we take into account the fact
that its fellow Unilever company Lynx (or Axe in the US) circulates (clever)
advertising like this:
- A campaign where censored images of lingerie models are printed, the missing
pieces only available to those who text a number after 9pm and receive and MMS
with the missing bits. Also billboards which light up at night to reveal the models’
bodies: http://www.barryhand.ie/blog/axe-day-night-sms-engagement/
- A casting competition for Australia’s hottest groupies to use in the next Lynx
campaign: http://lynxeffect.com.au/casting/
- A cheeky and creative game, the aim of which is to get with a hot lingerie model
(she gets bored so easily that the player has to keep “twisting” or changing his
personality, occupation, interests etc to keep her interested and eventually “get
with” her [use your imagination]) This in itself is sending a questionable message to
teenage boys: Hot girls are lingerie models. Girls won’t like you for who you are,
keep them interested by changing your personality. Hmm...:
http://lynxeffect.com.au/keepingkeeley/
May I be the first to say – sorry what are we buying here? Are we buying deodorant
or porn? Shower gel or prostitutes? I am mighty confused.
What confuses me even more than how and why these images are even allowed
into the mass media. No matter how clever or funny they may be, they not only
objectify women (we can’t really argue this because it’s what they are intended to
do) but they NORMALISE the objectification of women – so because these images
surround us in all types of media and in many forms, we accept them as being
normal representations of women – physically, sexually and behaviourally. This is
not ok. I don’t want to one day raise a son who is conditioned by this advertising to
think that success is not one but two groupies in bikinis spraying him with
deodorant, body spray and shower gel (advertised as a “threesome”) and I do not
want to raise a daughter who thinks that her body is her passport to success, love
and value.
There are a number of things wrong with Lynx’s advertising campaigns. Sexism is
just one of them. These ads serve to destroy the self esteem of both boys and girls –
so how can both Dove and Lynx be owned by the same company? Their aims seem
to be majorly conflicting – while Dove apparently pours money into helping all girls
think they’re beautiful no matter what, Lynx appears to be helping them think that
boys are only interested in girls who emulate the Page 3 girls and soft porn models
featured in their successful campaigns.
To those seven we would add a most important eighth criterion. Does it embrace the present and
future potential of information, and especially Internet technology? That is indispensable in
implementing the seven: portraying reality, connecting with customers, interpreting markets,
achieving specific and practical results, envisioning the future and applying measurements in real
time. The new IT adds a dimension all its own: creating a new business system, uniting the
business, the suppliers and the customers in a new and vibrant marketplace.
New is the key word. For some of the strategic schools examined by Silver, sheer old age
explains the fading of the message. The Boston matrix is especially hoary. It divided operations
into stars (for backing), cows (for milking), question marks (for possible stardom) and dogs (for
killing) according to their market share and market growth. As Silver points out, that says
nothing whatsoever about strategy. It's a guide to investment, not to creating a better business.
Even as an investment guide, it's fallible, because of self-fulfilling prophecy. Dogs and cows get
treated like dogs or cows, and that's the end of that - and them.
The book gives its highest rating to the 'three value disciplines' promoted by Michael Treacy and
Fred Wiersema. Their theory attributes market leadership to a choice between operational
excellence, product leadership or customer intimacy. This thesis, though, offends against the
principle that you have to do everything. You get nowhere with operational excellence which
results in products that don't lead the market or rejoice the customer. Since none of the three can
stand on its own, the model falls down.
All seven strategic models, anyway, share the same weakness. IT is ancillary at best in the
thought of their proponents. Yet embracing the new technology and using it to revolutionise the
business model is as important as what Silver isolates as the key factors in 'committment':
Silver adds that one of these two elements without the other won't work: they 'go hand-in-hand;
identifying future goals and opportunities must be born out of totally rigorous, deep-rooted
market immersion'. His example is Microsoft, which was heading into possible oblivion with a
strategy that ignored the Internet. Bill Gates turned the company on a dime, switching R&D
spending dramatically, forming key alliances, buying Net start-ups and striving to drive Netscape
out of the browser market (with tactics to which US anti-trust regulators and the courts took great
exception).
Microsoft has always been fond of that form of commitment which, in the words of Brian
Arthur, a Stanford professor, 'discourages competitors from taking on a potentially dominant
rival'. One traditional weapon to this end is price. British Airways, for example, was accused of
'predatory pricing' when its tactics helped to drive Laker Airways out of business. In Silver's
lexicon, though, pricing strategy is not just about 'low price'. In some cases, price-
competitiveness may well be fundamental. In other cases, there are other key ingredients: value
for money, quality and service.
That observation leads straight back to the all-or-nothing principle: 'all three forms of potential
advantage need to work harmoniously together to provide and sustain...lasting and successful
market position'. That position is also dependent on what the book calls 'emotion'. A power
brand harnesses people's powerful feelings - whether they are buying shirts or Intel
microprocessors.
The crucial aid is service, which 'is no longer enough' without 'Hustle', defined by Silver as
'going beyond customers' expectations and creating levels of service that had not been imagined'.
In case that sounds too vague, it's spelt out. The Hustle service is...
As Book Six shows, all five of these aims are far more easily achieved by the use of IT - indeed,
their realisation is often only possible because of IT. People who see IP technology as the
platform for growth are indispensable members of what Warren Bennis, writing with Patricia
Ward Biederman, calls a 'Great Group'. Their book, Organising Genius, argues that Great Groups
have replaced great men as the driving forces for organisational breakthroughs. The authors'
recipe is...
1. Gather the ablest people you can find to lead the revolution
2. Place them under a highly effective leader
3. Continue to recruit talent as a key activity
4. Form and share a powerful vision and mission
5. Set up a separate revolutionary HQ
6. Focus revolution on a chosen opponent: 'The Enemy'
7. Pick the right person for every job
8. Leave creative people free to create
9. Insist on delivery against objectives
Intel's domination of micro-circuitry exemplifies all nine steps. It tackles recruitment so seriously
that half-a-dozen people may interview a single candidate intensively. One interviewer even
refused to take a call from Robert Noyce, the chairman of the board, because 'I have a candidate.'
As Silver's Market Commitment Model recognises, strategy revolves around people and their
enlistment in the cause.
People-based strategy uses IT as platform and cement for the nine-step regime . The steps create
exactly what Riding the Revolution requires: a group of dedicated, optimistic people who believe
that they can accomplish anything; who won't rest on their achievements; and who see strategy,
animated by its powers of information and communication, as a living, breathing force.
Massacre in Maguindanao
Down with Martial Law – U.S. Forces Get Out – Defend the Bangsamoro!
For a Trotskyist Party to Fight for Workers Revolution!
(Pilipino) Warlord, Clan Wars at Kapitalistang Paghahari sa Pilipinas (Disyembre 2009)
MANILA/NEW YORK, December 20 – On November 23, some 57 people including women and journalists were
massacred in Barangay Saniag, in the province of Maguindanao on the southern Philippines island of Mindanao.
Among those killed were the wife of the deputy mayor of Buluan, Esmael (Toto) Mangudadatu, as well as several
other female relatives. Supporters and companions of the Mangudadatus were on their way to the Commission on
Elections (Comelec) office to file a Certificate of Candidacy for the deputy mayor to run for provincial governor.
Also among the victims were 18 journalists who were accompanying them. At around 10:30 a.m., they were blocked
at a checkpoint manned by some 100 Maguindanao police and armed civilians allegedly led by Datu Andal
Ampatuan Jr., the mayor of Datu Unsay town and son of Maguindanao’s present governor, Ampal Ampatuan Sr.
The entire cavalcade was kidnapped, and then executed one by one and buried in shallow graves. Even the victims’
vehicles were burned and buried to hide the evidence.
The horrific massacre and pictures of the killing field sent shock waves through the islands. It was the biggest
election-related massacre in the history of the Philippines as well as the largest number of journalists killed in a
single event. That the Ampatuans were responsible was quickly established by an eyewitness and journalists who at
the last moment didn’t go on the caravan. Initially there was resounding silence from Malacañang, the presidential
palace. For several days there were no arrests. The reason why was obvious: the Ampatuan clan were not only
members of President Gloria Macapagal Arroyo’s party, Ampatuan Sr. was a key ally who had delivered vital block
votes that gave Arroyo a spurious majority in the 2004 election she stole. In the infamous “Hello, Garci” phone call
recordings during vote counting that were later leaked to the press, Comelec commissioner Virgilio Garcillano
assured her excellency that they would have no problems in Maguindanao.1 “Garci” was right about that: more than
140,000 of the 1 million vote margin she demanded came from that one province (“The Ampatuans, the Military and
Elections in Maguindanao: The Ties That Bind,” Bulatlat, 14 December). GMA owed the Ampatuans, big time.
As outrage mounted, eventually Ampatuan Jr. turned himself in, in hopes of quieting the uproar. But as politicians
denounced the killers as “monsters,” soon journalists were producing reams of investigative reports on warlordism
in Mindanao. What they showed is that all the national political dynasties were hooked up to all the feuding clans in
the South. Ampatuan Sr. had run the province of Maguindanao with an iron hand since 2001, “as father, grandfather,
uncle, and in-law to at least 10 mayors, vice mayors, and other local officials in the province” (Newsbreak, 26
November). He was first put in office, however, by Arroyo’s reputed liberal predecessor, Corazon Aquino. This
monster was Cory’s man. Moreover, while they were bitter enemies of the Ampatuans, the victimized
Mangudadatus were also allies of Arroyo, who ran the province of Sultan Kudarat next door. Probably because of
that, they figured that if they sent a caravan of women to register Toto Mangudadatu’s candidacy, and if there were
plenty of journalists along to record the event, they would be safe. It was a fatal miscalculation.
Since the controversy wouldn’t die down, on December 5 President Arroyo had Governor Ampatuan Sr. taken into
military custody for “questioning” and the province placed under martial law. This would allow troops to make
arrests without warrants and restore order, according to cabinet secretary Eduardo Ermita, the eminence grise who
runs Malacañang for GMA. Some 4,000 soldiers of the AFP (Armed Forces of the Philippines) flooded
Maguindanao. They discovered an arms cache buried in one of the Ampatuan compounds with enough weapons for
a military brigade. Moreover, the arms bore the markings of the Department of National Defense. What a surprise! It
was well-known that the AFP armed local clan militias to back up its brutal offensive against the Moro Islamic
Liberation Front (MILF) in the area. In particular, the AFP used the Ampatuans against the MILF in the
Autonomous Region of Muslim Mindanao (ARMM). After several years of truce and negotiations, in August 2008
the government suddenly junked a tentative deal recognizing the Muslims “ancestral domain” and relaunched the
war (see “Philippine Government Launches New War on Muslim Groups,” beginning on page 37 of this issue).
In classic Vietnam counterinsurgency style, the military cleared out whole swaths of the countryside, forcing three-
quarters of a million people into refugee camps. More than a year after the army launched its offensive against the
MILF rebels in this historically Muslim region, some 300,000 refugees remain, many of them living in soggy
makeshift huts and under buildings, afraid to go home. Up until the November 25 massacre, the Ampatuans were
Arroyo’s main political ally in holding the Bangsamoro population at bay. Accompanying the AFP on Mindanao
and other southern islands is “an elite, 600-soldier [U.S.] counterinsurgency force that operates in Mindanao
alongside Philippine armed forces,” as the New York Times (23 November) reported from the area only a couple of
days before the Maguindanao massacre. The “visiting forces” agreement for the Joint Special Operations Task Force
Philippines was renewed this year by the new Obama administration in Washington. And as the Philippine Daily
Inquirer (9 August 2008) remarked under a dramatic photo of a U.S. soldier in an armored personnel carrier in
Zamboanga City, with “no sign of leaving after 6 years” (now seven), “it sure is becoming a long visit.” We can also
be sure that the U.S. special forces are linked to the warlords’ militias, as they also are in Afghanistan.
The League for the Fourth International calls on the workers movement internationally, and particularly in the
United States, to demand the immediate withdrawal of all U.S. forces and agents from the Philippines. Philippine
workers should take action to force the imperialist forces out, as they did with Clark Air Force Base and Subic
Naval Base which were used as staging areas for the Vietnam War. Defenders of democratic rights should
vigorously oppose the martial law imposed in Maguindanao province. The military will carry out plenty of
warrantless arrests, but that will hardly produce justice. The precedent will be used elsewhere in the country to
impose “security” controls during the 2010 elections, and possibly even to postpone them and prolong Arroyo’s stay
in the presidential palace. There are always plenty of incidents by sinister forces that can be used to justify such
draconian measures, and if not they can be arranged. In addition, Filipino workers should act to force the
withdrawal of the AFP from the contested southern areas, and to defend the Bangsamoro people and their right to
self-determination.
The Communist Party of the Philippines (CPP) and the National Democratic Front (NDF) issued denunciations of
the gruesome massacre and called for opposition to martial law (as did the PLM). They also point to the complicity
of U.S. imperialism. Yet while hoping for an “Oust Gloria” movement to arise from the furor over the massacre, for
the last few months the Stalinist “national democratic” camp has been trying to join up with any “democratic” trapo
it can do a deal with. Last spring, NDF co-founder and current leader of the Bayan Muna party list Satur Ocampo,
and Gabriela women’s party list spokesperson Liza Maza announced the formation of a new Makabayang coalition
for the May 2010 elections. “This is the politics of genuine change … politikang mula sa masa [politics of the
masses],” Maza said in her speech, adding that the coalition stood for patriotism, democracy, people’s rights and
welfare. At the same time, Rep. Jose de Venecia called for “a coalition between the centrist forces and Makabayan”
(“Left-wing groups unveil new party coalition,” Inquirer.net, 16 April).
What this coalition with “centrists” meant was spelled out recently, as Ocampo went shopping for a leading
bourgeois presidential candidate to hook up with. Fellow Bayan Muna Rep. Teodoro Casiño bragged that “we have
a sure base of more or less three million votes” to offer (Philippine Daily Inquirer, 13 November). Ocampo tried to
bargain with Benigno Aquino III, but although they had a common foe in GMA, the issue of Hacienda Luisita was a
sticking point. The Aquino family doesn’t want to give up their estate despite farmers’ demands that it be parceled
out under the agrarian reform law. Then Makbayan turned to Sen. Manuel Villar, the presidential candidate of the
Nacionalista Party (NP). Things seemed to be going alright until Villar signed an alliance with Ilocos Norte Rep.
Ferdinand (Bongbong) Marcos Jr., son of the former dictator (Philippine Daily Inquirer, 22 November). But in spite
of the “delicate position” this presented for Ocampo, he and Maza evidently overcame any qualms and on December
14 the two announced they would be “guest candidates” on the Nacionalistas’ Senate slate, and perhaps sharing in
the NP’s “campaign kitty.”
Political warlordism, clan warfare, trapos and the rest of the distinguishing features of Philippine politics are not
some incidental blemishes or warts that can be smoothed over with a little political Botox or removed with some
democratic cosmetic surgery. They are not anachronistic survivals from the past. They are essential characteristics of
capitalist rule in semi-colonial countries that cannot, in this imperialist epoch, achieve the essential elements of the
classical bourgeois revolutions without overthrowing the rule of the bourgeoisie. Agrarian revolution threatens even
the most liberal of the landlord-capitalists, as the Cojuangco-Aquinos have made clear with the Hacienda Luisita
massacre.2 To talk of democracy after the Maguindanao massacre and when even “progressive” politicians join the
trapos to get some of that vital political cash – is a cruel joke. As for national liberation, you certainly won’t have
that with U.S. special forces traipsing around Mindanao “advising” their Filipino counterparts on how to put down
rebels – like in the Jolo massacre of 1906 when U.S. Marines slaughtered 900 Moros fighting for independence.3 In
the Philippines, massacres tell the story.
All these tasks require that the workers seize power, with the support of impoverished farmers and oppressed
peoples, and proceed to the expropriation of the bourgeoisie and international socialist revolution. This is something
the Stalinists and social democrats cannot and will not fight for as they are buried in forming alliances, coalesce with
any bourgeois party or politician that they can in opposition to the Arroyo regime. It requires the formation of a
revolutionary party of the proletarian vanguard, a Leninist party based on the Trotskyist perspective of permanent
revolution. Such a party, independent of all bourgeois forces, would fight to defeat the warlords, to drive U.S. troops
out of the country and consistently defend the Bangsamoro and their fight for self-determination. This is the
program of the League for the Fourth International. ■