Summary this parts17.1 and 17.2 in this lesson and give one Case study with this lesson.

548 Lext 17 Leadership, Organization, 7 and Corporate Social Responsibility LEARNING OBJECTIVES the companies that have been pioneers in this organizational form. 17-1 Identify the names and nationalities of the chief executives at five global companies discussed in the text. 17-2 Describe the different organiza- tional structures that companies can adopt as they grow and ex- pand globally. 17-4 List some of the lessons regarding corporate social responsibility that global marketers can take away from Starbucks' experience with Global Exchange. 17-3 Discuss the attributes of lean production and identify some of CASE 17-1 A Changing of the Guard at Unilever nilever, the global food and consumer packaged goods powerhouse, markets a brand portfo- Rexona. The company has approximately 167,000 employees and annual sales of almost $59 bil- lion; Unilever can trace its roots, in part, to the northern English town of Port Sunlight on the River Mersey. There, in 1888, Lever Brothers founder William Hesketh Lever created a garden village for the benefit of his employees. Before retiring at the end of 2008, Unilever Group Chief Executive Patrick Cescau wanted to reconnect the company with its heritage of sustainability and concern for the environment (see Exhibit 17-1). These and other values reflect Unilever's philosophy of "doing well by doing good. One example: the "Campaign for Real Beauty," which was launched by managers at the company's Dove brand. To prepare for their first presentation to management, Dove team mem- bers videotaped interviews with teen girls who talked about the pressures they felt to conform to a certain look and body type. The interviewees included Cescau's daughter as well as the daugh- ters of Unilever's directors. Later, when the CEO recalled watching the video, he explained, "It suddenly becomes personal. You realize your own children are impacted by the beauty industry, and how stressed they are by this image of unattainable beauty which is imposed on them every day. The Dove team was given the green light to launch a new advertising campaign based on Exhibit 17-1 Patrick Cescau (left) put corporate social responsibility at the top of his agenda during his tenure as CEO of Unilever. The company's current chief executive, Paul Polman (right), is building on Cescau's initiatives while expanding into key emerging markets. Sources: Unilever/AFP/Newscom and Peter Cavanagh/Alamy This chapter focuses on the integration of each element of the marketing mix into a total plan that addresses opportuni- ties and threats in the global marketing environment. Cescau's achievements as the head of Unilever illustrate some of the chal- lenges facing business leaders in the twenty-first century. They must be able to articulate a coherent global vision and strategy that integrate global efficiency, local responsiveness, and lever- age. The leader is also the architect of an organizational design that is appropriate for the company's strategy. For large global en- terprises such as ABB, GE, Koninklijke Philips, Tesco, Toyota, and Unilever, the leader must ensure that size and scale are assets that can be leveraged rather than encumbrances that slow response times and stifle innovation. Finally, the leader must ensure that the organization takes a proactive approach to corporate social responsibility. 549 this insight in the years since, Dove has won numerous awards and accolades. Cescau's vision of "doing well by doing good" manifested itself in other ways, too. For example, he guided the company's detergent business toward using fewer chemicals and less water, plastic, and packaging. In addition, he recognized that today's "conscience consumers" look to a company's reputation when deciding which brands to purchase. Paul Polman, Cescau's successor, has built on another of the former chief executive's priorities, business opportunities in emerging markets such as India and China. However, Polman also took the top job in the middle of the recent global recession. To find out more about Unilever's commitment to global social responsibility while dealing with tough economic challenges, turn to Case 17-1 at the end of the chapter. (17-1) Leadership Global marketing demands exceptional leadership. As noted throughout this book, the hallmark of a global company is its capacity to formulate and implement global strategies that leverage worldwide learning, respond fully to local needs and wants, and draw on the talent and energy of every member of the organization. This daunting task requires global vision and sensitivity to local needs. Overall, the leader's challenge is to direct the efforts and creativity of everyone in the company toward a global effort that best utilizes organizational resources to exploit global opportunities. As Carly Fiorina, former CEO of Hewlett-Packard, said in her 2002 commence- ment address at the Massachusetts Institute of Technology: Leadership is not about hierarchy or title or status: It is about having influence and master- ing change. Leadership is not about bragging rights or battles or even the accumulation of ND LEADERSHIP IN THE TWENTY-FIRST CENTURY wealth; it's about connecting and engaging at multiple levels. It's about challenging minds and capturing hearts. Leadership in this new era is about empowering others to decide for themselves. Leadership is about empowering others to reach their full potential. Leaders can no longer view strategy and execution as abstract concepts, but must realize that both elements are ultimately about people. An important leadership task is articulating beliefs, values, policies, and the intended geo- graphic scope of a company's activities. Using the mission statement or similar document as a reference and guide, members of each operating unit must address their immediate responsi- bilities and at the same time cooperate with functional, product, and country experts in differ- ent locations. However, it is one thing to spell out a vision and another thing entirely to secure commitment to it throughout the organization. As noted in Chapter 1, global marketing further entails engaging in significant business activities outside the home country. This means an ex- posure to different languages and cultures. In addition, global marketing involves the skillful ap- plication of specific concepts, insights, and strategies. Such endeavors may represent substantial change, especially in U.S. companies with a long tradition of a domestic focus. When the "go global initiative is greeted with skepticism, the CEO must be a change agent who prepares and motivates employees. Former Whirlpool CEO David Whitwam described his own efforts in this regard in the early 1990s after he had approved the acquisition of Royal Philips Electronics' European home appli- ance division: When we announced the Philips acquisition. I talked with our people, explained why it was so important. Most opposed the move. They thought, "We're spending a billion dol- lars on a company that has been losing money for 10 years? We're going to take resources we could use right here and ship them across the Atlantic because we think this is becom- ing a global industry? What the hell does that mean?"2 Jack Welch encountered similar resistance at GE: "The lower you are in the organization, the less clear it is that globalization is great." he said. As Paolo Fresco, a former GE vice chairman, explained: To certain people, globalization is a threat without rewards. You look at the engineer for X-ray in Milwaukee and there is no upside on this one for him. He runs the risk of losing his job, he runs the risk of losing authority-he might find his boss is a guy who does not even know how to speak his language. In addition to "selling" their visions, top management at Whirlpool, GE, Nokia, Boeing, Tata Group, and other companies face the formidable task of building a cadre of globally oriented managers. Similar challenges face corporate leaders in all parts of the world. For example, Uichiro Niwa, former president of Japan's ITOCHU Corp., took steps to ensure that more of the trading company's $115 billion in annual transactions were conducted online. He also radically changed the way he communicated with employees and began relying more on e-mail, a practice that until recently was virtually unknown in Japan. He also convened face-to- face meetings and conferences with employees to solicit suggestions and to hear complaints. This too represented a dramatic change in the way some Japanese companies were being led; traditionally, low-level employees were expected to accept the edicts of top management with- out questioning them. Carleton "Carly S. Fiorina, Commencement Address, Massachusetts Institute of Technology, Cambridge, MA, June 2, 2002. See also "It's Death If You Stop Trying New Things," Financial Times (November 20, 2003), p. 8. William C. Taylor and Alan M. Webber, Going Global: Four Entrepreneurs Map the New World Marketplace (New York: Penguin Books USA, 1996), p. 12. Noel M. Tichy and Stratford Sherman, Control Your Destiny or Someone Else Will (New York: HarperBusiness, 1994), P. 227. Robert Guth, "Facing a Web Revolution, a Mighty Japanese Trader Reinvents Itself. The Wall Street Journal (March 27, 2000), p. Bl. 4 55 CHAPTER 17 LEADERSHIP, ORGANIZATION, AND CORPORATE SOCIAL RESPONSIBILITY Top Management Nationality Many globally minded companies realize that the best person for a top management job or board position is not necessarily someone born in the home country. Speaking of U.S. companies. Christopher Bartlett of the Harvard Business School has noted: Companies are realizing that they have a portfolio of human resources worldwide, that their brightest technical person might come from Germany, or their best financial manager from England. They are starting to tap their worldwide human resources. And as they do, it will not be surprising to see non-Americans rise to the top. 5 The ability to speak foreign languages is one difference between managers born and raised in the United States and those born and raised elsewhere. For example, the U.S. Department of Education has reported that 200 million Chinese children are studying English; by contrast, only 24,000 American children are studying Chinese! Fluency in English is a prerequisite for managerial success in many global organizations, irrespective of the language of the headquar- ters country. For example, Yong Nam, CEO of LG, recently stipulated that English would be required throughout the company. He explained: English is essential. The speed of innovation that is required to compete in the world man- dates that we must have seamless communication. We cannot depend on a small group of people who are holding the key to all communication throughout the world. That really impedes information sharing and decision making. I want everybody's wisdom instead of just a few Sigismundus W. W. Lubsen, the former president and CEO of Quaker Chemical Corporation, is a good example of today's cosmopolitan executive. Born in the Netherlands and educated in Rotterdam as well as New York, Lubsen speaks Dutch, English, French, and German. He recalled, "I was lucky to be born in a place where if you drove for an hour in any direction, you were in a different country, speaking a different language. It made me very comfortable travel- ing in different cultures." PepsiCo's Indra Nooyi is also bilingual (see Exhibit 17-2). Table 17-1 shows additional examples of corporate leaders who are not native to the headquarters country. OPEPSI Thokana Exhibit 17-2 Indra Nooyi, chair and chief executive of PepsiCo, is faced with rising commodity prices and weak demand for carbonated soft drinks in the United States. Despite these threats, Nooyi believes the snack-and- beverage giants current strategy is on track. In recent quarters, the strongest results have come from PepsiCo's fast- growing international division. Snack sales are particularly strong in Mexico and Russia, international sales volume for beverage brands is also increas- ing, particularly in the Middle East, Argentina, China, and Brazil, Source: Manish Swarup/AP Images A Read aloud TAdd text Page view 552 PART 5 STRATEGY AND LEADERSHIP IN THE TWENTY-FIRST CENTURY TABLE 17-1 Who's in Charge? Executives of 2015 Company (Headquarters Country) Executive/Nationality Position 3M (United States) Inge G. Thulin (Sweden) CEO ABB (Switzerland) Joe Hogan (United States) CEO Chrysler (United States) Sergio Marchionne (Italy) CEO CEO Dow Chemical (United States) Eastman Kodak (United States) Electrolux (Sweden) Andrew Liveris (Australia) Antonio Perez (Spain) Chairman and CEO CEO Keith McLoughlin (United States) Amy Nelson-Bennett (United States) Hugh Grant (United Kingdom-Scotland) Molton Brown (Great Britain) Monsanto (United States) Nippon Sheet Glass (Japan) CEO Chairman, CEO, and President Craig Naylor (United States) President and CEO Nissan Motor (Japan) Carlos Ghosn (Brazil) Chairman, President, and CEO PepsiCo (United States) Indra K. Nooyi (India) CEO Rakesh Kapoor (India) CEO Reckitt Benckiser (Great Britain) Sony (Japan) Chairman Howard Stringer (United Kingdom-Wales) Nancy McKinstry (United States) Wolters Kluwer NV (Netherlands) Chairman and CEO Generally speaking, Japanese companies have been reluctant to place non-Japanese nation- als in top positions. For years, only Sony, Mazda, and Mitsubishi had foreigners on their boards. Recently, some Japanese companies have made hiring and promotion decisions aimed at in- creasing the diversity of top-management ranks. For example, Didier Leroy recently became the most-senior non-Japanese executive at Toyota: an American, Julie Hamp, is the company's first Western female senior executive. Similarly, after Renault SA bought a 36.8 percent stake in Nissan Motor, the French company installed a Brazilian, Carlos Ghosn, as president. An outsider, Ghosn moved aggressively to cut costs and make drastic changes in Nissan's structure. He also introduced two new words into Nissan's lexicon: speed and commitment. Ghosn's turnaround effort was so successful that his life story and exploits have been celebrated in Big Comic Story, a comic that is popular with Japan's salarymen. Leadership and Core Competence Core competence, a concept developed by global strategy experts C. K. Prahalad and Gary Hamel, was introduced in Chapter 16. In the 1980s, many business executives were assessed on their ability to reorganize their corporations. In the 1990s, Prahalad and Hamel believed instead that executives would be better judged on their abilities to identify, nurture, and exploit the core competencies that make growth possible. Simply put, core competence is something that an organization can do better than its competitors. Prahalad and Hamel note that a core competence has three characteristics: It provides potential access to a wide variety of markets. It makes a significant contribution to perceived customer benefits. . It is difficult for competitors to imitate. Few companies are likely to build world leadership in more than five or six fundamental competencies. In the long run, an organization derives its global competitiveness from its abil- ity to bring high-quality, low-cost products to market faster than its competitors. To do this, an organization must be viewed as a portfolio of competencies rather than as a portfolio of busi- nesses. In some instances, a company has the technical resources to build competencies, but key "Kana Inagaki, "Rise of Leroy Signals Toyota's Global Goals, Financial Times (June 19, 2015), p. 17. "Norihiko Shirouzu, "U-Turn: A Revival at Nissan Shows There's Hope for Ailing Japan Inc." The Wall Street Journal (November 16, 2000), pp. A1, A10. See also Todd Zaun. "Look! Up in the Sky! It's Nissan's Chief Executive!" The Wall Street Journal (December 27, 2001), p. BI. C GO Chinese ... CD Page view TABLE 17-2 Responsibility for Global Marketing Company (Headquarters Country) Executive Amway (United States) Apple (United States) Candace Matthews Greg Joswiak Joseph Tripodi Stephen Odell Coca-Cola (United States) Ford (United States) General Motors (United States) Tim Mahoney Rebecca Van Dyck Levi's (United States) L'Oral (France) Mare Menesguen McDonald's (United States) Kevin Newell Procter & Gamble (United States) Marc Pritchard SAP AG (Germany) Martin Homlish Starbucks (United States) Annie Young-Scrivner John Reid Warner Music (United States) Yum! Brands (United States) Muktesh Pant executives lack the vision to do so. Sometimes the vision is present, but is rigidly focused on existing competencies even as market conditions are changing rapidly. For example, in the early 2000s Jorma Ollila, then chairman of Finland's Nokia, noted. "Design is a fundamental building block of the [Nokia] brand. It is central to our product creation and is a core competence integrated into the entire company. 10 The chairman was right-10 years ago. Design did help Nokia secure its position as the worldwide leader in hand- set sales. However, Apple's introduction of the game-changing iPhone in 2007 caught Nokia off guard. Nokia clung to its proprietary Symbian operating system even as smartphones running Google's Android operating system exploded in popularity. Nokia responded by launching new, mid-priced smartphone models; in addition, new CEO Steven Elop announced an alliance with Microsoft to develop new phones using Windows OS. Despite such changes, however, by early 2011 Nokia was issuing profit warnings. In 2014, Microsoft acquired Nokia's handset business and Elop was named executive vice president of the newly formed Devices Group. Nokia's reversal of fortune at the hands of Apple and Google underscores the fact that today's executives must rethink the concept of the corporation if they wish to operationalize the concept of core competencies. In addition, the task of management must be viewed as building both compe- tencies and the administrative means for assembling resources spread across multiple businesses. Table 17-2 lists some of the individuals responsible for global marketing at select companies. 17-2) Organizing for Global Marketing The goal in organizing for global marketing is to find a structure that enables the company to respond to relevant market environment differences while ensuring the diffusion of corporate knowledge and experience from national markets throughout the entire corporate system. The struggle between the value of centralized knowledge and coordination and the need for individu- alized response to the local situation creates a constant tension in the global marketing organi- zation. A key issue in global organization is how to achieve a balance between autonomy and integration. Subsidiaries need autonomy to adapt to their local environments, but the business as a whole needs to be integrated in order to implement global strategy. 12 Neil McCartney. "Squaring Up to Usability at Nokia," Financial Times-IT Review Telecom World (October 13, 2003), p. 4 CK Prahalad and Gary Hamel, "The Core Competence of the Corporation," Harvard Business Review 68, no. 3 (May-June 1990). pp. 79-86 George & Yip. Total Global Strategy (Upper Saddle River, NJ: Prentice Hall, 1992), p. 179. avorites 2 Individual Case Pre... A Read aloud | TAdd text CHAPTER 17 LEADERSHIP, ORGANIZATION, AND CORPORATE SOCIAL RESPONSIBILITY Position/Title Global Chief Marketing Officer Vice President of Worldwide iPod Product Marketing Chief Marketing and Commercial Officer Executive Vice President-Global Marketing Global GM Marketing Operations Leader Global Chief Marketing Officer Global Chief Marketing Officer Global Chief Brand Officer Global Marketing Officer Global Chief Marketing Officer Global Chief Marketing Officer Executive Vice President. Warner Music International Worldwide Chief Marketing Officer Chapter 5--Plannin... 1 Dr. 553 AND LEADERSHIP IN THE TWENTY-FIRST CENTURY When management at a domestic company decides to pursue international expansion, the is- sue of how to organize arises immediately. Who should be responsible for this expansion? Should product divisions operate independently or should an international division be established? Should individual countries' subsidiaries report directly to the company president or should a special corporate officer be appointed to take full-time responsibility for international activities? After the decision of how to organize initial international operations has been reached, a growing company is faced with a number of reappraisal points during the development of its international busi- ness activities. Should a company abandon its international division, and, if so, what alternative structure should be adopted? Should it form an area or regional headquarters? What should be the relationship among staff executives at corporate, regional, and subsidiary offices? Specifically, how should the company organize the marketing function? To what extent should regional and corporate marketing executives become involved in subsidiary marketing management? Even companies with years of experience competing around the globe find it necessary to adjust their organizational designs in response to environmental changes. It is perhaps not surprising that, during his tenure at Quaker Chemical, Sigismundus Lubsen favored a global approach to organizational design over a domestic/international approach. He advised Peter A. Benoliel, his predecessor CEO, to have units in Holland, France, Italy, Spain, and England re- port to a regional vice president in Europe. "I saw that it would not be a big deal to put all of the European units under one common denominator," Lubsen recalled. 13 As markets globalize and as Japan opens its own market to more competition from overseas, more Japanese companies are likely to break from traditional organization patterns. Many of the Japanese companies discussed in this text qualify as global or transnational companies because they serve world markets, source globally, or do both. Typically, however, knowledge is created at headquarters in Japan and then transferred to other country units. For example, Canon enjoys a strong reputation for world-class, innovative imaging products such as bubble-jet printers and laser printers. In the past two decades, Canon has shifted more control to subsidiaries, hired more non-Japanese staff and management personnel, and assimilated more innovations that were not developed in Japan. In 1996, for example, research and development (R&D) respon- sibility for software was shifted from Tokyo to the United States, responsibility for telecom- munication products to France, and computer-language translation to Great Britain. As Canon president Fujio Mitarai explained, "The Tokyo headquarters cannot know everything. Its job should be to provide low-cost capital, to move top management between regions, and come up with investment initiatives. Beyond that, the local subsidiaries must assume total responsibility for management. We are not there yet, but we are moving step by step in that direction." Toru Takahashi, director of R&D, shared this view: "We used to think that we should keep research and development in Japan, but that has changed." he said. Despite these changes, Canon's board of directors includes only Japanese nationals. 14 15 No single correct organizational structure exists for global marketing. Even within a par- ticular industry, worldwide companies have developed different strategic and organizational responses to changes in their environments. Still, it is possible to make some generalizations. Leading-edge global competitors share one key organizational design characteristic: Their corporate structure is flat and simple, rather than tall and complex. The message is clear: The world is complicated enough, so there is no need to add to the confusion with complex internal structuring. Simple structures increase the speed and clarity of communication and allow for the concentration of organizational energy and valuable resources on learning, rather than on con- trolling, mo ring, and reporting. According to David Whitwam, former CEO of Whirlpool, "You must create an organization whose people are adept at exchanging ideas, processes, and systems across borders, people who are absolutely free of the not-invented-here syndrome, 16 Kerry Peckter, The Foreigners Are Coming." International Business (September 1993), p. 58. 14William Dawkins, "Time to Pull Back the Screen," Financial Times (November 18, 1996), p. 12. See also Sumantra Ghoshal and Christopher A. Bartlett, The Individualized Corporation (New York: Harper Perennial. 1999), pp. 179-181. Christopher Bartlett and Sumantra Ghoshal, Managing Across Borders: The Transnational Solution (Boston: Harvard Business School Press, 1989), p. 3. 16Vladimir Pucik, "Globalization and Human Resource Management in V. Pucik, N. Tichy, and C. Barnett (eds.). Globalizing Management: Creating and Leading the Competitive Organization (New York: J. Wiley & Sons, 1992), p. 70. Page view people who are constantly working together to identify the best global opportunities and the big- gest global problems facing the organization."17 A geographically dispersed company cannot limit its knowledge to product, function, and the home territory. Company personnel must acquire knowledge of the complex set of social, political, economic, and institutional arrangements that exist within each international market. Many com- panies start with ad hoc arrangements such as having all foreign subsidiaries report to a designated vice president or to the president. Eventually, such companies establish an international division to manage their geographically dispersed new businesses. It is clear, however, that the international division in the multiproduct company is an unstable organizational arrangement. As a company grows, this initial organizational structure frequently gives way to various alternative structures. In the fast-changing, competitive global environment of the twenty-first century, corpora- tions will have to find new, more creative ways to organize. New forms of flexibility, efficiency, and responsiveness are required to meet the demands of globalizing markets. The need to be cost-effective, to be customer driven, to deliver the best quality, and to deliver that quality quickly are some of today's global realities. Recently, several authors have described new orga- nizational designs that represent responses to today's competitive environment. These designs acknowledge the need to find more responsive and flexible structures, to flatten the organiza- tion, and to employ teams. There is also the recognition of the need to develop networks, to develop stronger relationships among participants, and to exploit technology. These designs reflect an evolution in approaches to organizational effectiveness. Early in the twentieth century. Frederick Taylor claimed that all managers had to see the world the same way. Then came the contingency theorists, who said that effective organizations design themselves to match their conditions. These two basic theories are reflected in today's popular management writings. As Henry Mintzberg observed, "To Michael Porter, effectiveness resides in strategy, while to Tom Peters it is the operations that count-executing any strategy with excellence."18 Kenichi Ohmae has written extensively on the implications of globalization on organiza- tion design. He recommends a type of "global superstructure" at the highest level that provides a view of the world as a single unit. The staff members at this level are responsible for ensuring that work is performed in the best location and coordinating efficient movement of information and products across borders. Below this level. Ohmae envisions organizational units assigned to regions "governed by economies of service and economies of scale in information." In Ohmae's view of the world, there are 30 regions with populations ranging from 5 million to 20 million people. For example, China would be viewed as several distinct regions; the same would be true of the United States. The first task of the CEO in such an organization is to become oriented to the single unit that is the borderless business sphere, much as an astronaut might view the earth from space. Then, zooming in, the CEO attempts to identify differences. As Ohmae explained: A CEO has to look at the entire global economy and then put the company's resources where they will capture the biggest market share of the most attractive regions. Perhaps as you draw closer from outer space you see a region around the Pacific Northwest, near Puget Sound, that is vibrant and prosperous... In parts of New England you will see regions that are strong centers for health care and biotechnology. As a CEO, that's where you put your resources and shift your emphasis.19 Your authors believe that successful companies, the real global winners, must have both good strategies and good execution. Patterns of International Organizational Development Organizations vary in terms of the size and potential of targeted global markets and local man- agement competence in different country markets. Conflicting pressures may arise from the need for product and technical knowledge; functional expertise in marketing, finance, and operations; Regina Fazio Maruca, "The Right Way to Go Global: An Interview with Whirlpool CEO David Whitwam." Harvard Business Review 72, no. 2 (March-April 1994), p. 137. Henry Mintzberg, "The Effective Organization: Forces and Forms," Sloan Management Review 32, no. 2 (Winter 1991), pp. 54-55. William C. Taylor and Alan M. Webber, Going Global: Four Entrepreneurs Map the New World Marketplace (New York Penguin, 1996), pp. 48-58. A Read aloud Add text CHAPTER 17 LEADERSHIP, ORGANIZATION, AND CORPORATE SOCIAL RESP Read aloud Add text Page View PART 5 STRATEGY AND LEADERSHIP IN THE TWENTY-FIRST CENTURY THE CULTURAL CONTEXT Can New Leaders Reinvent Sony, the "Apple of the 1980s," in the Twenty-First Century? Sony Corporation is a legend in the global consumer electronics indus- try. Its reputation for innovation and engineering has made it the envy of rivals. For decades, quality- conscious consumers paid premium prices for the company's Trinitron color televisions. In 1979, Sony cre- ated the personal stereo category with its iconic Walkman. Cost cutting was only part of the story. Boosting revenues with new prod- ucts was also crucial to Sony's recovery. Sir Howard was convinced that Sony's TV business would recover, thanks in part to the new Bravia line of HDTVs. As it turned out, however, the television business con- tinued to lose money. The company also launched an e-book reader and, in 2006, the PlayStation 3 (PS3) game console. By the early 2000s, however, Sony's vaunted innovation. and marketing machine was faltering. The company had not anticipated the rapid consumer acceptance of flat-panel, wide- screen TV sets, and the Sony Walkman was eclipsed by Apple's iPod and iTunes Music Store. In 2005, tumbling stock prices resulted in the resignation of chairman and CEO Nobuyuki Idei. Sir Howard Stringer, a Welsh-born American who had been knighted in 2000, was named as Idei's replacement. After seven years, it was clear that Sir Howard's turnaround effort was still a work in progress. He had successfully negotiated Sony's withdrawal from a smartphone partnership with Sweden's Ericsson. He had restructured the TV business and ended an expensive LCD screen partnership with Samsung Sony's Blu-ray DVD format had gained widespread acceptance. However, Sony, Sharp, Panasonic, and other Japanese manufacturers were all experiencing declin- ing sales of traditional electronics products. Meanwhile, Apple and Samsung had risen to prominence in the competitive landscape once dominated by the Japanese. One of Stringer's first priorities was to bridge the divide be- tween Sony's media businesses, which included music, games, and motion pictures, and its hardware businesses. As Stringer himself declared, "We've got to get the relationship between content and devices seamlessly managed." In 2012, Sir Howard relinquished the chief executive role to Kazuo Hirai (see Exhibit 17-3). In 2013, Hirai presided over the launch of the Xperia Z smartphone, an event that provided tangible evidence of a reduction in divisional rivalries. New CFO Kenichiro Yoshida is try- ing to return the company to profitability by infusing employees with entrepreneurial spirit while trimming the bureaucracy and speeding up decision making. Management writers often use terms like silos, stovepipes, or chimneys to describe an organization in which autonomous business units operate with their own agendas and a minimum of horizontal interdependence. This was the situation at Sony, where the internal rivalries between different engineering units the PC and Walkman groups, for example were ingrained in the corporate cul- ture and regarded as healthy. As Osamu Katayama, author of several books about Sony, notes, "Instead of working together, the manag- ers of the different businesses fought to keep their independence. " Because Sony's consumer products businesses have historically accounted for a significant proportion of Sony's worldwide sales, breathing new life into the home entertainment and mobile products units was important. To do this, Sir Howard developed a restructuring plan: He cut 28,000 jobs, reduced the number of manufacturing sites, and eliminated some unprofitable products. Sources: Eric Pfanner and Takashi Mochizuki, "Sony Pares Down Before Rebuilding. The Wall Street Journal (November 17, 2014), pp. 81, 84, Daisuke Wakabayashi, Japan's Electronics Under Siege, The Wall Street Journal (May 15, 2013), pp. B1, B4, Andrew Edgecliffe-Johnson and Jonathan Soble, "Channels to Choose, Financial Times (February 28, 2012), p. 9, Soble, "Sony Chief Looks to Secure Legacy. Financial Times (May 23, 2011) Yukan Iwatani Kane, Sony Expects to Trim PS3 Losses, Plans More Games, Online Features, The Wall Street Journal (May 18, 2007), p. 84; Phred Dvarak, "Sony Aims to Cut Costs, Workers to Revive Its Electronics Business, The Wall Street Journal (September 23, 2005), p A5; Dvorak, "Out of Tune: At Sony, Rivalries Were Encouraged, Then Came iPod," The Wall Street Journal (June 29, 2005), pp. A1, A6, Lomne Manly and Andrew Ross Sorkin, "Choice of Stringer Aims to Prevent Further Setbacks, The New York Times (March 8, 2005), pp. C1, C8. Exhibit 17-3 in 2012, Kazuo Hirai was named president and CEO of Sony Corporation, Sir Howard Stringer was chairman. The new boss faced many challenges, as Japan's once-vaunted elec- tronics industry had fallen behind i the fast-changing tech world. For example, Sony had lost its lead in in flat-panel televi- sion technology to Samsung, mean- while, the one-two punch of Apple's iPod/iTunes combination had upstaged Sony's Walkman personal stereo brand. Part of Sony's problem was that different divisions-eg. Home Entertainment and Sound, Mobile Products and Communication, and Entertainment- did not work well together Source Hajime Takashiiana Press ZUMAPRESS.comAlamy 556 MyMarketingLab SYNC THINK. LEARN 3 SONY ASUS VivoBook A Read aloud TAdd text V CHAPTER 17 LEADERSHIP, ORGANIZATION, AND CORPORATE SOCIAL RESPONSIBILITY Exhibit 17-4 With more than 7 million U.S. subscribers, Better Homes and Gardens is the flagship publication of Des Moines, lowa-based Meredith Corporation. Meredith licenses BH&G and other titles in numerous international markets, including Europe, the Middle East, and Asia. At left is the Chinese edition of the magazine, published under license by SEEC Media. Source: November 2012 Better Homes and Gardens Magazine China edition. Photography by Edmund Barr. Photo courtesy of Meredith Corporation 2012. All rights reserved. CD Page view and area and country knowledge. Because the constellation of pressures that shape organizations is never exactly the same, no two organizations pass through organizational stages in exactly the same way, nor do they arrive at precisely the same organizational pattern. Nevertheless, some general patterns hold. A company engaging in limited export activities often has a small in-house export department as a separate functional area. Most domestically oriented companies undertake initial foreign expansion by means of foreign sales offices or subsidiaries that report directly to the company president or other designated company officer. This person carries out his or her responsibilities without assistance from a headquarters staff group. Many other design options are available to companies that seek to extend their reach internationally without creating separate divisions. For example, Des Moines, Iowa-based Meredith Corporation participates in international markets by means of licensing agreements developed and managed by the Corporate Development group, and further supported by various operating departments within the company (see Exhibit 17-4). Better Homes & Gardens F1902 E! 134 etter Goh Cadans ngmag.com.cn N78-2012 11AM AMM 2015 30 and Gardens. 17 BID & 60'S Plain & Nature Lifestyle ISSN 1673-9626 GO Chinese ##... CD Page view A Read aloud STRATEGY AND LEADERSHIP IN THE TWENTY-FIRST CENTURY porate mestic ff Division Marketing Manufacturing Marketing Manufacturing Planning Personnel Country Subsidiaries INTERNATIONAL DIVISION STRUCTURE As a company's international business grows, the com- plexity of coordinating and directing this activity extends beyond the scope of a single person. Pressure is created to assemble a staff that will have responsibility for coordination and direc- tion of the growing international activities of the organization. Eventually, this process leads to the creation of the international division, as illustrated in Figure 17-1. Best Buy, Hershey, Levi Strauss, Under Armour, Walmart, and Walt Disney are some examples of companies whose structures include international divisions. When Hershey announced the creation of its international division in 2005, J. P. Bilbrey. the division's senior vice president, noted that Hershey would no longer utilize the extension strategy of exporting its chocolate products from the United States. Instead, the company would tailor products to local markets and also manufacture locally. As Bilbrey explained, "We're changing our business model in Asia. The product was not locally relevant and it also got there at an unattractive cost."20 Currently, international sales make up only 15 percent of Hershey's sales; the company's strategic goal is to boost that figure to 25 percent by 2017. China is the world's fastest-growing candy market, so it is no surprise that Hershey is ramping up efforts to penetrate the Middle Kingdom. Until recently, Hershey had only about a 2.2 percent share of China's chocolate market; by contrast, Mars commands 43 percent with its M&M's and Dove brands. In 2013, Hershey rolled out a new line of condensed-milk candies specifically targeting China's premium candy segment. Lancaster (as in "Lancaster, Pennsylvania," the company's hometown) is the English-language name; in Chinese, the brand is Yo-man (see Exhibit 17-5). Hershey has opened its second-largest R&D facility, Asia Innovation Center, in Shanghai.1 Several factors contribute to the establishment of an international division. First, top man- agement's commitment to global operations has increased enough to justify an organizational unit headed by a senior manager. Second, the complexity of international operations requires a single organizational unit whose management has sufficient authority to make its own determinations on important issues such as which market-entry strategy to employ. Third, an 20Jeremy Grant, "Hershey Chews Over Growth Strategy," Financial Timex (December 14, 2005), p. 23. 21 Colum Murphy and Laurie Burkitt, "Hershey Launches New Brand in China, The Wall Street Journal (May 21, 2013). p. B8. Individual Case Pre... President Corporate Staff Research Finance Vice President (T) Add text Planning International International Division Staff Finance Research Division Chapter 5--Plannin... Personnel Dr A Read aloud Add text CD Page view CHAPTER 17 LEADERSHIP, ORGANIZATION, AND CORPORATE SOCIAL RESPONSIE Exhibit 17-5 Hershey new Lancaster brand in include Original Pure Na Bei filled with Rich Nai B Nai Bei with Strawberry. refers to a slow-cooking imported milk. A Lancaster Lancaster Lancaster Lancaster is the first c new brand launched outs United States in Hershey's 23 history. Source: The Hershey Compan *** WE 72 international division is frequently formed when the firm has recognized the need for internal specialists to deal with the special demands of global operations. A fourth contributing factor is management's recognition of the importance of strategically scanning the global horizon for opportunities and aligning them with company resources rather than simply responding on an ad hoc basis to opportunities as they arise. REGIONAL MANAGEMENT CENTERS When business is conducted in a single region that is char- acterized by similarities in economic, social, geographical, and political conditions, there is both justification and need for a management center. Thus, another stage of organizational evolu- tion is the emergence of an area or regional headquarters as a management layer between the country organization and the international division headquarters. The increasing importance of the European Union (EU) as a regional market has prompted a number of companies to change their organizational structures by setting up regional headquarters there. In the mid-1990s, for example, Quaker Oats established its European headquarters in Brussels, Electrolux, the Swedish home appliance company, has also regionalized its European operations. In 2012, Procter & Gamble (P&G) began to shift its global skin, cosmetics, and personal-care unit from Cincinnati to Singapore; Asia-Pacific countries account for about half of the $100 billion global skin-care market. A regional center typically coordinates decisions on pricing, sourcing, and other matters. Executives at the regional center also participate in the planning and control of each country's operations with an eye toward applying company knowledge on a regional basis and optimally utilizing corporate resources on a regional basis. This organizational design is il- lustrated in Figure 17-2. Regional management can offer a company several advantages. First, many regional manag- ers agree that an on-the-scene regional management unit makes sense where there is a real need for coordinated, pan-regional decision making. Coordinated regional planning and control are becoming necessary as the national subsidiary continues to lose its relevance as an independent operating unit. Regional management can probably achieve the best balance of geographical, product, and functional considerations required to implement corporate objectives effectively. By shifting operations and decision making to the region, the company is better able to maintain an insider advantage.24 However, a major disadvantage of a regional center is its cost. The cost of a two-person of- fice can be as much as half a million dollars per year. The scale of regional management must 22... And Other Ways to Peel the Onion." The Economist (January 7, 1995), pp. 52-53. Emily Glazer, "P&G Unit Bids Goodbye to Cincinnati, Hello to Asia." The Wall Street Journal (May 11, 2012), p. B1. Allen J. Morrison, David A. Ricks, and Kendall Roth, "Globalization Versus Regionalization: Which Way for the Multinational Organizational Dynamics (Winter 1991), pp. 17-29. ASUS VivoBook Page view A Read aloud AND LEADERSHIP IN THE TWENTY-FIRST CENTURY Marketing Manufacturing Manufacturing President Corporate Staff Marketing Research Finance Vice President TAdd text Planning Divisi international International Division Staff Research Finance Area Manager Europe Area Manager Latin America Area Manager Middle East and Africa Area Manager Far East Area Staff Area Staff Area Staff Area Staff Country Subsidiaries Country Subsidiaries Country Subsidiaries Country Subsidiaries be in line with the scale of operations in a region. A regional headquarters is inappropriate if the size of the operations it manages is inadequate to cover the costs of the additional layer of management. The basic issue with regard to the regional headquarters is "Does it contribute enough to organizational effectiveness to justify its cost and the complexity of another layer of management?" GEOGRAPHICAL AND PRODUCT DIVISION STRUCTURES As a company becomes more global, management frequently faces the dilemma of whether to organize by geography or by product lines. The geographically organized structure involves the assignment of operational responsi- bility for geographic areas of the world to line managers. The corporate headquarters retains responsibility for worldwide planning and control, and each area of the world including the "home" or base market is organizationally equal. For the company with French origins, for example, France is simply another geographic market under this organizational arrangement. This structure is most common in companies with closely related product lines that are sold in similar end-use markets around the world. For example, the major international oil companies utilize the geographical structure, which is illustrated in Figure 17-3. McDonald's organizational design integrates the international division and geographical structures. McDonald's U.S. has three geographical operating divisions, and McDonald's International has three. When an organization assigns regional or worldwide product responsibility to its product divisions, manufacturing standardization can result in significant economies. For example, Whirlpool recently reorganized its European operations, switching from a geographic or country orientation to one based on product lines. One potential disadvantage of the product approach is that local input from individual country managers may be ignored, with the result that products will not be sufficiently tailored to local markets. The essence of the Ford 2000 reorganization Personnel Personnel Planning Dra Marketing DPage view Manufacturing A Read aloud TAdd text V CHAPTER 17 LEADERSHIP, ORGANIZATION, AND CORPORATE SOCIAL RESPONSIBILITY FIGURE 17-3 President Geographic Corporate Structure, World Corporate Staff Orientation, Area Divisions Worldwide Corporate Staff Planning Personnel Research Finance North America Europe Latin America Middle East and Africa Far East Area Staff Area Staff Area Staff Area Staff Area Staff Country Subsidiaries Country Subsidiaries Country Subsidiaries Country Subsidiaries Country Subsidiaries initiated in 1995 was to integrate North American and European operations. Over a three-year period, the company saved $5 billion in development costs. However, by 2000, Ford's European market share had slipped nearly 5 percent. In a shift back toward the geographic model, then CEO Jacques Nasser returned to regional executives some of the authority they had lost.25 The challenges associated with devising the structure that is best suited to improving global sales can be seen in Procter & Gamble's ambitious Organization 2005 plan. Initiated by then CEO Durk Jager in 1999, this reorganization entailed replacing separate country organizations with five global business units for key product categories such as paper products and feminine hygiene. A number of executives were reassigned; in Europe alone, 1,000 staff members were transferred to Geneva. Many managers, upset about the transfers and news that P&G intended to cut 15,000 jobs worldwide, quit the company; the resulting upheaval cost Jager his job. To appease middle managers, new CEO A. G. Lafley restored some of the company's previous geographic focus. 26 THE MATRIX DESIGN In the fully developed large-scale global company, product or business, function, area, and customer know-how are simultaneously focused on the organization's worldwide marketing objectives. This type of total competence is a matrix organization. Management's task in the matrix organization is to achieve an organizational balance that brings together different perspectives and skills to accomplish the organization's objectives. In 1998, both Gillette and Ericsson announced plans to reorganize into matrix organizations. Ericsson's matrix is focused on three customer segments: network operators, private consumers, and com- mercial enterprises. 28 Gillette's matrix structure separates product-line management from geo- graphical sales and marketing responsibility. Likewise, Boeing has reorganized its commercial transport design and manufacturing engineers into a matrix organization built around five plat- form or aircraft model-specific groups. Previously, Boeing was organized along functional lines: the new design was expected to lower costs and quicken updates and problem solving. It was also 25 Joann S. Lublin, "Division Problem: Place vs. Product: It's Tough to Choose a Management Model, The Wall Street Journal (June 27, 2001), pp. A1, A4. Emily Nelson, "Rallying the Troops at P&G: New CEO Lafley Aims to End Upheaval by Revamping Program of Globalization, The Wall Street Journal (August 31, 2000), pp. B1, B4. Claudia Deutsch, "At Home in the World." The New York Times (February 14, 2008), p. CL. Ericsson to Simplify Business Structure," Financial Times (September 29, 1998), p. 21. Mark Maremont, "Gillette to Shut 14 of Its Plants, Lay Off 4,700," The Wall Street Journal (September 29, 1998). pp. A3, A15. ASUS VIVOR "GE is managing its worldwide organization as a network, not a centralized hub with foreign appendages."27 Christopher A. Bartlett TEGY AND LEADERSHIP IN THE TWENTY-FIRST CENTURY expected to unite essential design, engineering, and manufacturing processes between Boeing's commercial transport factories and component plants, enhancing product consistency. 30 Why are executives at these and other companies implementing matrix designs? The matrix form of organization is well suited to global companies because it can be used to establish a multi- ple-command structure that gives equal emphasis to functional and geographical departments. Professor John Hunt of the London Business School has suggested four considerations regarding the matrix organizational design. First, the matrix is appropriate when the market is demanding and dynamic. Second, employees must accept higher levels of ambiguity and under- stand that policy manuals cannot cover every eventuality. Third, in country markets where the command-and-control model persists, it is best to overlay matrices on only small portions of the workforce. Finally, management must be able to clearly state what each axis of the matrix can and cannot do. However, this must be accomplished without creating a bureaucracy. 31 Having established that the matrix is appropriate, management can expect the matrix to inte- grate four basic competencies on a worldwide basis: 1. Geographic knowledge. An understanding of the basic economic, social, cultural, political, and governmental market and competitive dimensions of a country is essential. The coun- try subsidiary is the major structural device employed today to enable the corporation to acquire geographical knowledge. 2. Product knowledge and know-how. Product managers with a worldwide responsibility can achieve this level of competence on a global basis. Another way of achieving global prod- uct competence is simply to duplicate product management organizations in domestic and international divisions, achieving high competence in both organizational units. 3. Functional competence in such fields as finance, production, and, especially, marketing. Corporate functional staff with worldwide responsibility contributes to the development of functional competence on a global basis. In some companies, the corporate functional manager, who is responsible for the development of his or her functional activity on a global basis, reviews the appointment of country subsidiary functional managers. 4. A knowledge of the customer or industry and its needs. Certain large and extremely sophisticated global companies have staff with the responsibility for serving industries on a global basis to assist the line managers in the country organizations in their efforts to penetrate specific customer markets. Under this arrangement, instead of designating national organizations or product divisions as profit centers, both are responsible for profitability the national organization for country profits and the product divisions for national and worldwide product profitability. Figure 17-4 illustrates the matrix organization. This organizational chart starts with a bot- tom section that represents a single-country responsibility level, moves to representing the area or international level, and finally moves to representing global responsibility from the product divisions, to the corporate staff, to the chief executive at the top of the structure. At Whirlpool, North American operations are organized in matrix form. Former CEO David Whitwam expected to extend this structure into Europe and other regional markets. Whirlpool managers from traditional functions such as operations, marketing, and finance also work in teams devoted to specific products, such as dishwashers or ovens. To encourage interdependence and integration, the cross-functional teams are headed by "brand czars, such as the brand chief for Whirlpool or Kenmore. As Whitwam explained, "The Whirlpool-brand czar still worries about the Whirlpool name. But he also worries about all the refrigerator brands that we make because he heads that product team. It takes a different mind-set."32 The key to successful matrix management is ensuring that managers are able to resolve conflicts and achieve integration of organization programs and plans. The mere adoption of a matrix design or structure does not create a matrix organization. The matrix organization requires fundamental changes in management behavior, organizational culture, and technical systems. In a matrix, influence is based on technical competence and interpersonal sensitivity, Paul Proctor, "Boeing Shifts to 'Platform Teams."" Aviation Week & Space Technology (May 17, 1999), pp. 63-64 John W. Hunt, "Is Matrix Management a Recipe for Chaos? Financial Times (January 12, 1998), p. 10. 32 William C. Taylor and Alan M. Webber, Going Global: Four Entrepreneurs Map the New World Marketplace (New York: Penguin USA, 1996), p. 25. ASUS VivoBook Favorites ? Corporate Staff Product Divisions Product Division Regional Headquarters Typical Country Umbrella Organizations GO Chinese ##... Page view Marketing Individual Case Pre... Chapter 5--Pla A Read aloud Add text CHAPTER 17 LEADERSHIP, ORGANIZATION, AND CORPORATE SOCIAL RESPONSIBI FIGURE 17-4 Chief Executive Officer The Matrix Strue Production International Umbrella Coordination Production Division 1 Area HO Europe Finance Production Division 2 Area HQ Europe Research Production Division 3 Area HQ Europe President Global S.A. (France) Production Division 4 Area HO Europe Finance Administration Bre Product Manager Division 1 Product Manager Division 2 Product Manager Division 3 Product Manager Division 4 Country Product Markets French Product Market 1 French Product Market 2 French Product Market 3 French Product Market 4 Reporting responsibility - Coordination not on formal authority. In a matrix culture, managers recognize the absolute need to resolve issues and choices at the lowest possible level and do not rely on higher authority. Some companies are moving away from the matrix in response to changing competitive conditions. Heineken and EMI are two examples; ABB is another.33 For nearly a decade, ABB was a matrix organized along regional lines. Local business units-factories that make motors or power generators, for example-reported both to a country manager and to a business area manager who set strategy for the whole world. This structure allowed ABB to execute global strategies while still thriving in local markets. However, in 1998, new chairman Gran Lindahl dissolved the matrix. As the chairman explained in a press release, "This is an aggressive move aimed at greater speed and efficiency by further focusing and flattening the organization. This step is possible now thanks to our strong, decentralized presence in all local and global markets around the world." In January 2001, Lindahl stepped down and his successor, Jorgen Centerman, revamped the organizational structure yet again. The new design was intended to improve the focus on industries and large corporate customers; Centerman wanted to ensure that all of ABB's products Andrew Edgecliffe-Johnson, "Case Study: EMI." Financial Times (September 23, 2011), p. 4. 01_Global Marketing, Global Edition_Warren_J_Keegan, Mark_C.pdf Chinese ... Individual Case Pre... QChapter 5--Plannin... HT Page view A Read aloud | Add text for example reported both to a country manager and to a business area ategy for the whole world. This structure allowed ABB to execute global thriving in local markets. However, in 1998, new chairman Gran Lindahl As the chairman explained in a press release, "This is an aggressive move ed and efficiency by further focusing and flattening the organization. This thanks to our strong, decentralized presence in all local and global markets 1, Lindahl stepped down and his successor, Jorgen Centerman, revamped ructure yet again. The new design was intended to improve the focus on Corporate customers; Centerman wanted to ensure that all of ABB's products son, "Case Study: EMI." Financial Times (September 23, 2011). p. 4. EGY AND LEADERSHIP IN THE TWENTY-FIRST CENTURY were designed to the same systems standards. However, in 2002, with the chief executive under pressure to sell assets, ABB's board replaced Centerman with Jrgen Dorman. Dorman stepped down in 2005 and was succeeded by Fred Kindle. Although ABB returned to profitability under his leadership, Kindle left after three years. The official reason: irreconcilable differences about leading the company. Michel Demar, ABB's chief financial officer, was named interim CEO. Then, in fall 2008, Joe Hogan was selected as ABB's new CEO. Hogan, an American, was a 23-year veteran of GE whose most recent assignment had been running GE Healthcare. ABB's board was impressed by Hogan's performance at the U.S. industrial giant: During his eight years at GE Healthcare, the unit's sales more than doubled, from $7 billion to $18 billion. These re- sults were due, in part, to several major acquisitions engineered by Hogan. 34 In the twenty-first century, an important task of top management is to eliminate a one- dimensional approach to decisions and to encourage the development of multiple management perspectives and an organization that will sense and respond to a complex and fast-changing world. The challenges facing Sony, discussed earlier, are a case in point. By thinking in terms of changing behavior rather than changing structural design, management can free itself from the limitations of the structural chart and focus instead on achieving the best possible results with the available resources. Draw 548 Lext 17 Leadership, Organization, 7 and Corporate Social Responsibility LEARNING OBJECTIVES the companies that have been pioneers in this organizational form. 17-1 Identify the names and nationalities of the chief executives at five global companies discussed in the text. 17-2 Describe the different organiza- tional structures that companies can adopt as they grow and ex- pand globally. 17-4 List some of the lessons regarding corporate social responsibility that global marketers can take away from Starbucks' experience with Global Exchange. 17-3 Discuss the attributes of lean production and identify some of CASE 17-1 A Changing of the Guard at Unilever nilever, the global food and consumer packaged goods powerhouse, markets a brand portfo- Rexona. The company has approximately 167,000 employees and annual sales of almost $59 bil- lion; Unilever can trace its roots, in part, to the northern English town of Port Sunlight on the River Mersey. There, in 1888, Lever Brothers founder William Hesketh Lever created a garden village for the benefit of his employees. Before retiring at the end of 2008, Unilever Group Chief Executive Patrick Cescau wanted to reconnect the company with its heritage of sustainability and concern for the environment (see Exhibit 17-1). These and other values reflect Unilever's philosophy of "doing well by doing good. One example: the "Campaign for Real Beauty," which was launched by managers at the company's Dove brand. To prepare for their first presentation to management, Dove team mem- bers videotaped interviews with teen girls who talked about the pressures they felt to conform to a certain look and body type. The interviewees included Cescau's daughter as well as the daugh- ters of Unilever's directors. Later, when the CEO recalled watching the video, he explained, "It suddenly becomes personal. You realize your own children are impacted by the beauty industry, and how stressed they are by this image of unattainable beauty which is imposed on them every day. The Dove team was given the green light to launch a new advertising campaign based on Exhibit 17-1 Patrick Cescau (left) put corporate social responsibility at the top of his agenda during his tenure as CEO of Unilever. The company's cur