Knowledge Management of Natura & Co. - Desklib

Running head: KNOWLEDGE MANAGEMENT OF A MULTINATIONAL COMPANY
Knowlwdge Management of Natura & Co.
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1KNOWLWDGE MANAGEMENT OF NATURA & CO.
The purpose of this essay is to concentrate on a multinational company, which has
adopted social media in order to improve the process of knowledge sharing, building social
capital and to solve the issues of raising funds for future investment. Urban life is incomplete
without social media. Most of the regular tasks are dependent on internet these days and it
helps the business organisations to make a global approach. The demand of international
brands are increasing as the potential customers can easily compare all the specifications of
each brand over the internet. Therefore, this essay will shed light on the significance of
Facebook, Twitter, and Linked-In and other social platform’s role in knowledge development
and creating brand image of a particular multinational company (Dunning, John 2013). The
chosen organisation for this study is Natura & Co. (Sutter et al. 2015), which is a Brazilian
manufacturer and retailer of beauty and personal care products. The contemporary business
environment has evolved on a large scale and it is more competitive than ever before (Sinan,
Dellarocas, and Godes 2013). With the help of technological advancement, how the company
can improve its business functions is going to be the agenda of this essay. Throughout this
essay, an argument will be raised whether social media plays a positive role or not to improve
multiple business concerns of this Brazilian company and the motto is to establish an
affirmative approach.
Natura & Co. is a prominent name in cosmetic industry, though it is originated in
Brazil, the company sells their product through representatives in numerous stores of more
than seventy countries ( Dalmarco et al. 2015). They deals with beauty and cosmetic products
strictly produced from natural ingredients. In the year of 1969, the company introduced itself
and it is needless to say that they have been following unique marketing strategies to sustain
in the market and retain the competitive advantage. Since 1974, the company had been
practicing the business model of direct sales and in between 2006 and 2007, it started to
dominate the sales of other existing cosmetic and personal care ranges like an American

2KNOWLWDGE MANAGEMENT OF NATURA & CO.
company, Avon. After realising the importance of the globalisation (Dunning, John 2014),
the cosmetic company felt necessary needs to change their business strategy as the whole
scenario of business execution was on the verge of transformation.
In order to explore the opportunities of knowledge management in the case of chosen
organisation, Natura & Co., it is essential to develop a concept of KM firstly and how it
works to achieve organization’s goals and objectives (Chua, YK, and Banerjee 2013).
Knowledge management refers to framing of effective plans, motivating and controlling the
resources and making them organised according to the organizational need. The management
ensures that their knowledge related departments have been improved and employed for the
betterment of company. The knowledge management process deals with creation, storage and
utilization of the acquired knowledge. Knowledge management activity of an organisation
(Ford, Dianne P., and Mason 2013) is the key to process and operate the system and to
develop new methods as well as encourage the employees to participate in the process. The
objectives of KM is to establish a set of knowledgeable employees with better practice of
sharing information and with that better business decisions can be taken. Eventually, these
events will lead to improved organizational behaviour along with an improved performance
of the entire organisation. Globalization and the technological advancement have a strong
influence on marketing scenario and the marketing strategies of multinational companies.
Internet is the only variable in a world of technology based business programmes. The
popularity of internet enables the business organisations to circulate knowledge globally,
which makes them believe in internet as a trusted medium to implement international
marketing strategies. Social networks allow the users to share their views and knowledge
over various products, as they have the power to evaluate the brands by rating and reviews,
company can understand the opinion of public regarding any product. These social platforms
have changed (Qureshi, Sajda 2013) the process of business communications entirely.