Task 1 (not more than 1200 words, maximum)

Sub-section 1: Learning and willingness to learn from new market’s culture. How is the new market? How are the new customers? You’re learning from the experience and introduce it into your products.

1. Willingness to learn: what different things did they (Natura) learn in the new market? Did they introduce new products? Did they hire local employees? Did they provide some sort of different systems for the customers to buy their products?

So what is the different system that they have changed? If they changed, give examples.

2. High level of energy and commitment:

You remember we have talked about some markets that need more work to be done because they are not developed yet, they’re under developed. So what do you do? You provide more resources in there, you look after the market in order to mature the market. So give example, something like, when they (Natura) enter Russia market, how they commit to that market? Are they trying to provide extra credits to the manufacturers, or wholesalers in the market? Are they try to give extra offers to the customers? That’s commitment.

3. Control and effective monitoring:

Have they decentralized their control in new markets? Or they centralize their control?

Sort of control: how much they centralize/decentralized their control? What sort of activities they centralize or decentralize?

First part of Task 1 can be breakdown into 3-4 paragraphs to talk about these 3-4 different things with examples to each of them.

Sub section 2 - Competitive positioning: you may give examples of the new product portfolio that they may have introduced in there.

This 2nd part is talking about competitve positioning, so if you go back to your STP lecture and look at it and see how companies creat competitive positioning.

Here, what we need is you can discuss, giving only 2 examples, I don’t want more than that. For example, they went into France, however, they come across local competitors, right. What happened then? And how they re-introduce their competitve positioning in the market. Information is given in the case study when they struggle with the competition. So apply that example, 1-2 examples are more than enough here.

DO GIVE EXAMPLES (in the case study only), OTHERWISE WE DON’T KNOW IF YOU UNDERSTOOD IT!

TASK 2 - Uppsala model and EPRG framework

UPPSALA: You can discuss the model If you want but not in description. … Everyone knows the model, and what I want to know is how Natura has followed anthing on these models when they internationalized since 1982. To answer this question, I would suggest you to do a draft (graph) first in a piece of paper. Just put it this way, Uppsala is incremental stage, yea, put 1982 here and see which year they entered different markets, what part of Uppsala have they followed, if they have followed, and discuss that part here. You don’t have to put the graph here (in your assignment), but if you want to, it’s fine. It’s just for you, as the draft, to support your discussion. It is not compulsary to put this graph in this one. One thing, DECORATIONS don’t get mark for me. If you have colourful paintings, I don’t give marks for that. I give marks for discussions.

This question is 30 marks, you can’t lose it. Your task is about 4500 words, and this is nearly 30% of the task. So for this one, at least about 1300 words. Anything between 1300-1500 would be pass.

EPRG: Draw a draft graph of EPRG and see (company doesn’t know they are applying EPRG, they might know but they don’t know at the moment, yea). You are researcher yourself. You see if they have applied Ethnocentric, put an example here; Polycentric, put an example there; and then discuss that examples. If you really interested, I suggest one thing, put your draft graph into your appendix. It is not compulsary, but it shows that you’ve done it properly.

Assess to what extend Natura apply Uppsala/EPRG? Discuss the examples will give the answer. For Uppsala model, do they centralize/decentralize their control and how much, or full of increment that they are using Uppsala. For EPRG, to what extend? Have they gone to Polycentric and they left it but they haven’t gone to Regionocentric then straight to Globe(centric). And if you use Global(centric), you use transnational framwork rather than customization. That’s what you discuss to what extend they have done. In some examples, you can see they only joint venture or colloboration. So what they do? If you look at intermediary aspect, they use their R&D, they use their production, but marketing, sales and services they use somebody else, in the local market. So that’s what you discuss to what extend these models are applied in Natura’s internationalization since 1982.

There’s no need to go from every 1 year up until now. You can break it down, let say, in 5 years bloc, and see what they have done.

Questions: (unclear)…

Answer: We are not asking your opinion. We’re asking the actual apply, this is truth, this is what they have done. We’re asking your understanding to what extend they apply the models. You are not giving your opinion here, this is reality.)

Question: (Mr.DoanKhanhTai, as always) ……. unclear

Answer: How do you explain to what extend … OK. If you say to me, that they apply Polycentric approach. Let’s have an example, In 1995, they went to Argentina and they appled Polycentric approach. So the domestic market is Brazilian market, and the next market - international market, Argentina. How do you discuss that. So Evaluation and Discussion, yea. You’re discussing the progress of internationalization. Evaluation is when you say this approach really works for them, or don’t work for them. That’s not the question. Question is to what extend they applied it (the model). Even it did work in 1995 then you can do nothing now. Here we are talking about Discussion, not evaluation.

(Task 3: 25 marks, 1100-1200 words),

Let’s do different approach. In 5-10 minutes, look back on what I’ve told you and your notes that you’ve taken and see if you have any questions. If don’t, then I’ll go to Task no.3.

… Deadline is June 9, Saturday. According to UK time, you have 6 hours late. You have to submit it on time, thru X-tream and hard copy as well. So follow your time, midnight Saturday Vietnam time in June 9)… As soon as you upload your assignment onto X-tream, you can e-mail me that you have already uploaded it, then I can confirm that for you...

When you give examples of a market on their internationalization, DONOT just give it in 1 sentence, that the mode they are using that. What you need is a good turnkey paragraph, about actually they have done when they move from 1 market to other market. And when they internationalized, discuss it in details rather than in 2 sentences.

… If you give an example, let’s say from Brazil to Argentina, from Brazil to France, or from Brazil to UK, whatever it is, yea. It may not Brazil, it may whatever. What you do here is you don’t just say that they go into the market. You have to actually discuss how they’ve gone, to what extend they’ve gone to the market, what they are doing in the market, … yea. Discuss in details … OK, moving on…

Task 3: Market entry mode

Lecture of market entry mode discusses all relevant modes and strategies that can be used. Remember 1 thing, this question is asking you currently Natura is using that model. That’s what they do, OK. They apply sales and distribution all the times when they enter different markets. What you do is you start with a very brief paragraph that Natura currently applies that, and what does that mean. OK, briefly.

Again this task is 25 marks, so we are looking at something not rather than 1200 words.

So firstly, discuss briefly what they are doing, sales and distribution, and how they are doing it, briefly. And then straight away, your job here is actually suggest, yea, what recommended, a new market entry mode. So once you discuss that, then tell us, accordingly that looking at other modes, this may not be appropriate in other markets. For example, Western Europe, UK and France, this may not appropriate. However, they can enter using joint ventures or hierachical modes. Remember 1 thing, this company is retailer, and I gave you a clue last time, that retailer DONOT export. So you’re smart enough to understand what I say.

You can suggest one mode to enter UK or France, or you can suggest a mixture of mode. So you might say they can go using joint ventures or they can go using franchising, or they can go using wholly-owned subsidiaries. Joint ventures, franchises, wholly-owned subsidiaries, these are just examples. You may come up with something else as well, anything between intermediary mode and hierachical mode. Or a mixture of these modes. Can somebody remember 1 thing I said last time, Rules typology, (lecture Topic 6, page 3) remember that. Anyone remember? I am not reminding it now, I’ve told it 10 times. When do you apply Rules typology? What is it about? … Naive Rule, Pragmatic Rule, Strategy Rules, … OK. Now what we do with this? Let’s suppose you discuss that sales and distribution that they followed, then you can say when you’re suggesting or recommending, before that you can tell them that actually this company can apply Rules typology that discusses these 3 keys ways of entry or deciding a market entry. So Natura can apply Pragmatic Rule or Strategy Rule. Give me the reason as well. And then say because they apply Strategy Rule, they can then go and apply joint ventures because there is a room to … and acquire the market or they can apply subsidiaries because there is nobody in the market and they can acquire the whole market, or acquisition. This can actually give good justification to your market entry mode. You can break this task down into 3 sub sections. First, what they’ve been doing. Second, discussing that, justify. And 3rd , actual recommending market entry mode to enter Western Europe, i.e, UK or France. Now, 1 more thing, it is not compulsary that you come up with only 1 market entry mode. You can give us a recommendation of the joint like 2 or 3 if you want, it is your choice. But definitely 1 recommendation is required. Or a mixture, you can do whatever you want. You can say, for first year, you may enter using franchises or licensing, however, from 2nd year when they have understood the market, they may do acquisition after licensing, like Ralph Polo, they do it.

Question: …

Answer: First, what they’ve been doing? Sales and distribution, briefly. Second part, discuss that. Instead of just doing sales and distribution, they can actually apply other market entry mode because they apply one of these. Third part, and biggest part, where you actually recommend, discuss and justify or evaluate your recommendation. So don’t just say they can apply joint venture. Tell us why do you think that is the most beneficial entry mode for Natura in Western Europe. 10-9-8-7.5-7.6.5.4.3.2-1 Good. Let’s move on there.

Task 4

So far, you have already cover 85% of the whole thing. So if you don’t really mass up with it, you already get pass. For me, passing is not important, but getting good marks is important. …. 2 minutes, read question no.4.

Word count is just estimation and it is not something that you have to be always following that. You can reduce 200 words from here and increase 200 words more in the section no.2.

… Outline first, good practice. Please do it. Break questions down, highlight key points and use them as sub section and then it would be the best way of answering any questions/tasks…

Question no.4, it is just a cheating out question. So they are suggesting that by that year, because they are moving out the manufacturing and production outside Brazil, 50% of revenue from Latin America will be generated because of that. However, if you look at this way, it is about image. If you say Natura, it comes from where? Brazil. Natura comes from that part of the world which really has some default … Country of Origin (COO)… if you have heard that word, COO – country of origin effect. Your teacher of Economics, Mr.Hoan – he said to me yesterday that he hates Taiwanese and Chinese products. What is that telling me? That tells me that any product that is made in China I won’t buy it. Any thing that is made in UK, I’ll buy it. And that is country of origin, where products coming from. Sometimes, you buy a product, let’s say shirts, made in Brazil or made in whatever place, you wear it, you buy it because you know it has to be good. Cars! Japanese cars, maybe good. German cars, maybe good. I’ll never buy American cars, never ever, because I had problems for my first 2 cars, terrible cars. German cars, brilliant. I’ll buy a German car, even it is a second hand car.

That’s what I think country of origin is very very important. So when they use all the good for the company that their revenue increase 50% from outside. However, think about consumers. When they found out that the products are not actually produced in Brazil. It is produced somewhere else. What problem is the perception about those products. OK. If they’re not produced in Brazil where they have same atmosphere and environment, they may have effect on actual products. And that may also lead to some negative perception, and reduce consumption. So talk about those things as far as you understand. You can go back to the issues in internationalization in lecture 8 & 9. ISSUES? What can stop internationalization? Misunderstanding the culture? Or the market approach outside production, and things like that. If you can do this 15 marks, try to find out at least 3 issues, and discuss them I 3 paragraphs. That’ll be enough. 2.5 to 3 pages would be fine.

So you can highlight, straight away, 3 issues that makes, or maybe distracts the strong image. You can say because of COO, they have strong brand image. But if they move their products all the times, it may impact on the brand image development, or negative perception. And that’s the key.

3 issues. Maybe ingredients, not appropriate products or channels , may be the cost increase as well. You know because the intermediary increase the cost. Raise 3 issues and then discuss 3 issues that would impact the brand image of the company.

I like you already. No questions. Nothing. Sliding down, cheering out, yea, OK. Fine.

Let’s think about when Trung Nguyen Coffee does not come from Vietnam anymore, but from Cambodia. What do you think? That’s perception about the products.

Finally, 5 marks, free of charge, for presentation and correct format. So please give page number, and executive summary, about half of page, that refects everything that you’ve done. Total assignment is about 15 pages, and executive summary comes in the beginning.

If you intested in giving conclusion, you can do that. And remember to reference your quotation. Always Harvard Referencing style.

Please give Task 1-2-3-4 clearly. Don’t do essay, from beginning to the end. And donot include your outlines/draft in your work./.