Global-Management-Individual-Assignment.docx - Hult &...

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Hult & Company - Global Management Individual Written AssignmentAntónio Chagas, 12/11/2012Executive SummaryThe present report analyses the strengths and opportunities related to theexpansion of NATURE LAB in South America. One of the suggested countriesis Colombia. Colombia presents itself as a challenging and growing marketopportunity. It is a fast pace driven economy, with a young and rising middle-income class, and strong predisposal for health care and beauty products.However, there are some possible setbacks that the company should be awareof, which will also be described. Therefore, Hult & Company will draw somerecommendations regarding the expansion market and the most suitablestrategic action.Country OverviewColombia is a rising global economy. With a warm climate, a diversegeography, and a multiethnic population, Colombia is also one of the richestcountries in South America concerning natural resources such as petroleum,coal, coffee and fruit. ‘Services’ is the leading sector, accounting 57% of theGross Domestic Product (GDP) between 2000 and 2005, and Oil is its majorindustry[Car07].In order to analyse the investment opportunity we will use the CAGEframework to compare “distances” between Colombia and NATURE LAB’shome base, France (see Exhibit 1):Page1
Hult & Company - Global Management Individual Written AssignmentAntónio Chagas, 12/11/20121) Cultural Distance:Colombian culture is very different in comparison with France. Besides thelanguage there is also a difference in the way business is done. According tothe Communicaid 2012 Report, three factors guide Colombia’s businessenvironment: family, indirect communication and time. Family is central inColombian society, many companies are family owned. In terms of indirectcommunication, Colombian businesses role in an informal and subtle mater,usually avoiding direct confrontations. Finally, within the Colombian society,punctuality is not a priority and meetings usually last for several hours.Colombia uses the same metric system but different voltage (the voltage is110-120 Volts, same as U.S.).In terms of values, norms and dispositions, there could be some similaritybecause both cultures share their Roman Catholic heritage. But Colombia’sculture also inputs a strong African and Amerindian influence. Administrative Distance:Historically, Colombia shares stronger ties with Spain, its former colonizer,which can be positive, considering its proximity with France.According to the French site ‘France Diplomatie’, the trading relationsbetween France and Colombia have been continuously rising since 2004 but itis not a strong partner (4thexporter in South America). France exports toColombia mainly automobiles, chemicals and pharmaceuticals and importsPage2
Hult & Company - Global Management Individual Written AssignmentAntónio Chagas, 12/11/2012mainly coal, ferro-nickel and agricultural products. But from Colombia’sperspective France is a good financier, accounted as its 4thlargest investor.

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Management, Global Management, Central Intelligence Agency, Individual written assignment, Ant nio Chagas, Management Individual Written, Global Management Individual

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