International strategic management
Questions on Natura:
1. The geographical location of Natura has potencial advantages. Indeed the brazilian natural ressources are innumerable especially in the amazone region. the use of brazilian hugebiodiversity and the "know how" of local communities offer large opportunities to benefit from this nature. Scientist studies on ingredients found in plants, demonstrate the ability for an industrial utilization, and also means that there are still a enormous parts of unknown active ingredients in this country (22% of the earth’s species were in Brazil, only 1% had been catalogued,only 8% of thefew catalogued had been studied for phytotherapeutic use). With an investment on the research and the development the firm could be creativ, innovativ and anticipate the needs,even find a "niche" which is a performance lever and leads to profits.So this is a return on investment because as the author of the innovation, natura could have a "monopoly", advantages on others firms which are notcreativ and on a specific type of customer. Futhermore this type of market is very competitiv, and by developing a product with biologic properties gives a competitiv differenciation, by creating his own market in a context were the demand is becoming more and more specific.In this situation you can choose you price policy, and make a lot of profits.
Another source of profit is the"internationalization" of natura's product in Europe and in the United State.First the infactuation for the sustainable product is a criteria for the buyer in these type of country, second Brazil's biodiversity is recognise as high quality, high performance product and has a marketing attractivness through this ethical propaganda. So because of the origin of the product, European will buy natura product rather thanothers. for example french and english consumer prefer to buy an effective product and pay attention to the reputation. Especially In a context were consumer pay attention to the beauty, also it would works in a emerging market because wearing cosmetics is a sign of wealth.
These new potencial sources of profit relate positively the government, employees, communities and trade union becausethis is a smart way to produce, and as they want social corparate responsability from Natura, this sources are a sustainable growth. Employees and local communities get better living conditions are treated well and the regulation from the government are respected and this is a social improvement, for the customer the product is quality and focuse on the welfare. But these sources relate in adifferent way for the creditor because the research need a lot of investment and the result is not always there, this is risky creditor have to trust the company it take times to get the dividende and results because this is a long term and creditor want short term results. The suppliers get pressure to produce in a sustainable way.Also be green corporate is generally associated with a reduction incompetitiveness. Moreover these new sources of profit could actually improve de reputation of the firm gives an image of "prestige".
They are differents challenges working with local communities, like "Cultural" challenges: the firm must protect and not to break their way of living and their traditions, also the firms need to protect their enviroment while responding to the market law. Also by tryingto not make them dependant from the firm, and not sow disorder among the community. That's why local communities can't have the same type of manager, management as we can find in cities, this must be a specialist, ONGs, partners who knows and understand their culture and can approach them more easily, because without that, communication could be hard. But the major challenge is to educate them...