The decline in demand for paper hit Stora Enso hard. By 2011 the pulp and paper giant — the world’s oldest corporation, dating back to 1288 — had laid off over one-third of its 30,000 employees. The company needed to transform itself into a global renewable materials company.
In 2006, 70% of revenues and 60% of the company’s profits still came from paper; today the new growth businesses contribute 67% of sales and 76% of profits. Since 2011 the share price has more than doubled. The culture is also evolving and improving, as evidenced by an annual survey that tracks the main levers for the transformation, including innovation and sustainability, leadership, team, and engagement.
How the Stora Enso succeeded can be found in this article from HBR.
