Strategic International Management

Running head: STRATEGIC INTERNATIONAL BUSINESS MANAGEMENT
Strategic International Management

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Table of Contents
Introduction.................................................................................................................................................3
TASK 1:......................................................................................................................................................3
The company’s core business and the industry to which it belongs.........................................................3
Cosmetic industry in Brazil.....................................................................................................................3
Identify and explain the general criteria used by the company to select these countries to expand.........4
TASK 2:......................................................................................................................................................5
Using the company’s country selection criteria as identified in Task 1c, Identify a country that the
company does not currently operate in....................................................................................................6
TASK 3:......................................................................................................................................................8
5-Forces model to critically analyze the competitive intensity of the industrial environment of the
company in your chosen country market.................................................................................................8
TASK 4: Application of the VRIO framework..........................................................................................10
Task 5:.......................................................................................................................................................11
Modes of entry available to the company and recommend – with justification based on the findings of
your analyses in Tasks 2, 3 & 4.............................................................................................................11
The most suitable mode of entry that will enable this strategic international expansion to be a success
for the company.....................................................................................................................................13
References.................................................................................................................................................14

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Introduction
This report will assess modes of entry available to the company. It also demonstrates the suitable
mode of entry that would enable this strategic international expansion and success for the
company. This report also illustrates the company’s core business and the industry to which it
belongs. It also explains the general criteria used by the company to select these countries to
expand. This report also assess 5-Forces model to critically analyze the competitive intensity of
the industrial environment of the company in Bangladesh.
TASK 1:
The company’s core business and the industry to which it belongs
Natura Brasil is the one of leading manufacturer of a cosmetic and prominent leader in the direct
sales field. It has employed more than 7000 workforces in seven nations such as France,
Argentina, Peru, Mexico and Chile, and Colombia. The sustainable development has been
guiding the principle of the company since it was developed in the year of 1969. An enthusiasm
for customer relations may lead the corporation for adopting the direct sales because it is the key
commercial approach. In current times, there are over 1,421,000 consultants in which 1,175,000
consultants from Brazil and 246,000 are from abroad. It promotes the value of the company and
products to the consumers (Natura., 2018).
Cosmetic industry in Brazil
The utilization of cosmetics in Brazil per capita is very nearest to what Natura see in places like
the Argentina and Australian. The Brazilian people are very modern, however, market saturation
and inflation will begin to affect the industry strongly in the near future. Moreover, Brazilian has
a great interest in personal care products and beauty. The outlay in innovation with new products
in sale and marketing should assurance a favorable growth over the next few time periods

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(Natural cosmetic industry trend, 2018).
The company’s position in its domestic market
Natura arrives at over 100 millions of consumers and is available in 58.5% of Brazilian homes.
In current time, Natura is the largest corporation in the perfumery, personal hygiene and
cosmetic industry in Brazil. The brand is the leader in preference of consumers with 44%. In the
previous five years, sales network of the company has expanded with net revenues that grow an
average of 13% a year (Natural cosmetic industry trend, 2018).
The other countries in which Natura currently operates
Countries Mode of entry Years
Brazil Joint venture 1969
Chile Joint venture 1982
Argentina Joint venture 1994
Mexico Joint venture 2005
France Joint venture 2012
Colombia Joint venture 2015
Peru Joint venture 2017
Identify and explain the general criteria used by the company to select these countries to
expand
Under the condition, Natura goes international via an agreement with the independent distributor
in Chile in 1982. As per the traditional marketing strategy, the company can audit their resources
that have core capability and offer distinctive competitive benefits. All the resources related to
Natura like financial, research and development skills, experiences, knowledge, and sales and