This case describes the development and international expansion of Natura, a Brazilian cosmetics company. The company was founded in 1969, and developed products using environmentally sustainable practices, and that were distributed using a direct sales model. The company was highly successful in the Brazil, despite the challenging Brazilian economy. Natura had successfully entered the Mexican and French markets. In 2008, it considered entering the U.S. market. The case describes the company's growth, its principles of environmental and social responsibility, its culture and organization, and its international expansion to 2008. It describes the U.S. market, and the challenges and opportunities that Natura would face if it tried to expand into the U.S.

The Federal Republic of Nigeria was the most populous country in Africa. According to a July 2009 estimate, it was also the world's 8th largest nation. With land area roughly twice the size of California, Nigeria was rich in natural resources, especially oil. However, the country seemed to have mineral wealth in equal measure to its economic, social, and political troubles. For decades, the country had grappled with tumultuous military rule, religious and ethnic unrest, as well as a highly unequal allocation of resources. Nevertheless, recent reforms and developments in key sectors had boosted economic growth and spurred a sense of optimism for the country's future. The question was whether or not Nigeria could sustain this momentum, overcome its key challenges, and create a business environment that would allow it to compete on an international level. This paper provides a brief history of Nigeria and explores its current position in the global economy.

In 2006, Samsung Electronics semiconductor business was the world's largest supplier of flash memory components. The company, however, did not originally invent flash technology and entered the market in the early 1990s behind technology leader Toshiba Corporation of Japan. This case explains how Samsung became a leader in the global market for flash memory over the following fifteen years. Readers are asked how they would make investment decisions to maintain this leadership position going forward.

In 2009, the Federative Republic of Brazil was the 5th largest country in the world in terms of its geographic area and population. At 3,290,000 square miles, its territory comprised nearly half of South America. It was also the most populous nation on the continent, with more than 190 million people. In economic terms, Brazil had grown to be the tenth largest global economy, with a 2008 GDP estimated at $1.99 trillion. When the global financial crisis erupted, Brazil's president vocally and repeatedly asserted that Brazil would be able to "decouple" itself from the slowdown. However, in early 2009, it became clear that Brazil could not isolate itself entirely from events in the rest of the world. The country's 2008 fourth quarter economic results were the worst in a decade. As analysts downgraded their 2009 growth forecasts into negative territory, it remained to be seen when (and if) Brazil would ever be able to realize its full potential. This paper provides a brief history of Brazil and explores its current position in the global economy.

The Russian Federation (Russia) was the largest of the 15 geopolitical entities that emerged in 1991 from the Soviet Union. Despite a series of reforms initiated in 1992 to help the country transition from its centrally planned economy, Russia plunged into a deep recession that was exacerbated by a financial crisis in 1998. It was not until 1999, following eight years of turmoil, macroeconomic stabilization and economic restructuring, that the economy slowly began to grow again. When Vladimir Vladimirovich Putin became president on December 31, 1999, Russia was the world's tenth-largest economy and its foreign reserves stood at $8.5 billion. By 2007, the country's economy had become the world's eighth-biggest, with reserves of $407.5 billion. In May 2008, when Russia's new president, Dmitry Medvedev, was inaugurated and Putin assumed the role of prime minister, western companies with interests in Russia faced great uncertainty. Would Putin's hand-picked successor, under Putin's powerful and watchful eye, continue to enact policies and take actions that would make the business environment increasingly unfavorable to foreign investment? Or, would the new regime chart a more liberal and democratic course for Russia that would enable the country to improve its global competitiveness and allow outside investors to participate in its prosperity? Russia had made great strides to improve its position in the world since the dissolution of the Soviet Union. Yet, it remained to be seen whether the country, particularly under its current circumstances, could create and sustain lasting international competitive advantage, which many western critics believed would require a more democratic political regime. This paper provides a brief overview of the country and explores the status of China's competitive advantage through the framework of Michael Porter's Competitive Advantage of Nations.

An abstract is not available for this product.

Dougal Simpson, an experienced Australian manager who had 20 years of experience with Industrial Products AG (IPAG), a large Swiss-based company in the field of industrial chemicals and plastics, accepted the position of managing director, Southeast Asia. Simpson, who had spent many years living abroad, moved himself and his family to Thailand. Describes his first meeting with his chauffeur and Simpson's resulting dissatisfaction.

Gives a thorough overview of the furniture market, focusing primarily on the American market; provides a general background, starting with market size, industry organization, and trends; and discusses manufacturers, production and value chain, and sales and distribution. Concludes with a future outlook and small sections on the European and Asian furniture markets.

Based in Charlotte, North Carolina, American Colonial Heritage, Inc. (ACH) was a top 10 U.S. furniture manufacturer focused on the upper end of the indoor home furniture market. The head of the International Division had just asked Alexandra Jones to join the International Expansion Team. Jones had joined ACH almost a year earlier after graduating from a top business school. She worked in the International Business Division on several projects related to the company's limited sales abroad, primarily to Canada. During those first months at headquarters, she learned the basics of ACH's operations, both in the U.S. and its limited business abroad. She followed the company's initial discussions about international expansion and expressed her interest in getting involved in the project as soon as it started. Details what Jones needed to consider and how she approached her first assignment--to recommend the country into which ACH should expand first. (Note: The company, characters, and quotations, unless otherwise stated, are fictional and were created by its authors. No reference is intended to any person.)

This case study is concerned with the challenges posed for companies in emerging markets that seek to expand their operations beyond their borders, while maintaining leadership in their industry. The case deals with Arcor, an Argentine-based manufacturer of confectionery, chocolate, cookies and crackers. A companion reading, The Confectionery Industry: Latin America and the Global Market in 2006, Stanford GSB IB-65, provides background to Arcor's industry. Founded in 1951 in Cordoba, Argentina, Arcor has evolved from being a local player selling candy in cities in Argentina to become the world largest candy manufacturer, the main confectionery exporter of Argentina, Brazil and Chile and one of the leading chocolate manufacturers in Latin America. As Arcor grew, it expanded regionally and internationally to become an important actor in the global confectionery industry. The case sheds light on the key factors that enabled Arcor to escape the destiny of most of the industrial sector in Argentina, to become a leader in its industry. Students are encouraged to consider how the firm's strengths in Argentina both enhance and inhibit its foreign expansion and how the company can implement its strategy for future expansion into new foreign markets. Finally, the case considers the challenges that Arcor faces in operating 35 manufacturing facilities in four countries and the organizational consequences of managing affiliates throughout America, Europe and Africa.

When India regained its independence in 1947, the country's political, social, and economic fate was in its own hands for the first time in almost 90 years. The country embarked on a journey to establish a democracy and representative government, define a plan for economic development, and build a society within which its large, diverse, and fragmented population could prosper. More than five decades later, however, opinions differed as to whether or not India had realized the greater triumphs and achievements which Nehru anticipated. With 17% of the world's population, India generated only 2% of global GDP. Per capita income was less than $3,000 per year, with 25% of the country's one billion people living below the poverty line. India needed to sustain double-digit annual GDP growth, but realized only 6.9% growth for fiscal 2004/2005. Yet, the country had become the world's 12th largest economy (and the 3rd largest in Asia behind Japan and China). India had made significant progress toward establishing a competitive position in the global economy. Its services sector had demonstrated the country's capacity to be a pioneer. Would India capitalize on this success by addressing obstacles to growth?

China is one of the oldest continuous civilizations in the world, with organized society existing for more than 10,000 years. Although the country has a complex and dynamic past, the scope and pace of change in China within the past 25 years have been unprecedented in the nation's long history. Since 1979, when China's reform era began, the country reduced the number of its citizens living in poverty by 200 million and achieved a sixfold increase in per capita income. China accounted for nearly 4% of the worldwide gross domestic product in 2004 and had become the sixth-largest economy and the leading recipient of foreign direct investment. While these results are impressive, this is only the beginning for China. As the most populous nation in the world, China needs to create 100 million new jobs by 2013 and quadruple its GDP by 2020 to achieve and sustain a reasonable standard of living for its people. To do so, the country must further open itself to foreign investment, trade, and the market-oriented ideas that will stimulate domestic productivity and build its competitiveness as a nation. As Michael Porter asserts, "National prosperity is created, not inherited. It does not grow out of a country's natural endowments, its labor pool, its interest rates, or its currency value. A nation's competitiveness depends on the capacity of its industry to innovate and upgrade." Over the last two and a half decades, China has proven its ability to capitalize on its innate advantages and make meaningful reforms. Whether the country can build on these successes to create a lasting competitive advantage under competition remains to be seen.

This note provides an overview of China's IT industry, using Michael's Porter's "Diamond of National Advantage" framework. Specifically, it assesses how China uses its factor conditions, demand conditions, related and supporting industries, and the context for firm strategy, structure, and rivalry to achieve a competitive position in IT. The note was developed as a companion to "The Competitive Advantage of China" (GSB No. IB-57), which provides a more detailed analysis of China's political, economic, and social history, as well as an evaluation of the country's national competitiveness using the Porter framework.

In March 2002, Singapore Airlines (SIA), recognized internationally for quality, profitability, and management, was facing difficult operating conditions. Dr. Cheong Choong Kong, deputy chairman and CEO, considered how he and his management committee would respond to the forces of globalization, regulatory adjustment, and the impact of terrorist attacks in America on the airline and the industry. Their challenge: to position the airline for continued growth in a globalizing industry while maintaining the airline's loss-free record. The airline's continuing challenges would stretch SIA's people far beyond the demands of its previous history. Was the company's strategy right for the more turbulent times ahead, and was the organization durable and flexible enough to ensure its success?

On November 17, 1997, Jon T. Elsasser, then vice-president of The Timken Co. bearings business for Europe, Africa, and West Asia, reviewed the company's proposal to the Romanian government for the acquisition of Rulmenti Grei, S.A., an industrial bearings plant being privatized through the Romanian State Ownership Fund. Elsasser reflected on the significance of the acquisition and its potential impact on Timken's global bearings business. Although Rulmenti Grei offered needed production capacity and an improved cost structure, Timken remained wary of Romania's political instability and the numerous operational challenges of integrating the plant into Timken's global organization. Importantly, the investment also represented a marked shift in corporate culture and objectives. Rulmenti Grei produced a variety of bearings types, whereas Timken remained focused on tapered roller bearings, driven by corporate history and pride as a specialist manufacturer. European customer demand required that Timken consider expanding its product offering. Rulmenti Grei had the potential to drive change in a century-old corporate culture.

Dozier Industries was a U.S. manufacturer of electronic security systems. In 1994, it received a large order from the United Kingdom, which stipulated payment in British pounds. The company received a deposit, with the balance expected to be paid in 90 days. The contract provided a slim profit margin, which could be easily eliminated by an unfavorable change in exchange rates. The chief financial officer had to decide whether to accept the foreign exchange risk or to hedge the exposure.

This case is accompanied by a Video Short that can be shown in class or included in a digital coursepack. Instructors should consider the timing of making the video available to students, as it may reveal key case details.