International Business Management and Strategies - Project of Semester 1 2013-2014 - Mélanie sanz
1. Mélanie
SANZ
ERASMUS
Student
2013/2014
1
Bachelor
Economy
and
IT
University
Southern
Denmark
Campus
Slagelse
International Business Management and Strategies:
Love & Green is exporting
2. Mélanie
SANZ
ERASMUS
Student
2013/2014
2
Table
of
content:
1. Introduction
p3-‐4
a. Problem
formulation
and
sub-‐question
p3
b. Delimitation
p3
c. Angel
of
view
p4
2. Choice
of
models
and
theory
p5-‐6
a. Strategy
Analysis
p5
i. Portfolio
ii.
SWOT
analysis:
disposable
nappies
iii. Corporate
vision
b.
Cultural
Analysis
p5
i. Hofstede’s
value
dimension
ii. Hall
cultural’s
factor
c. Implementing
Analysis
p6
i. Strategic
alliances
definition
ii. 4
different
strategic
alliances
3. Analysis
p7-‐9
a. A
product
made
especially
for
Denmark
p7
i. Portfolio
ii. Composition
of
Love
&
Green
disposable
nappies
iii.
SWOT
analysis:
disposable
nappies
iv. Vision
b.
A
specific
negotiation
p8
i. Hofstede’s
value
dimension
ii. Interpretations
iii. Hall
culture’s
factor
in
Denmark
c. An
introduction
step
by
step
p9
i.
Convince
the
Danish
Government
ii. Find
the
perfect
partner
iii. Have
different
channels
of
distribution
iv. Implement
a
communication
brand
v. Create
a
relationship
when
everything
is
in
order
Conclusion
p10
Few
recommendations
p11
Perspectives
p12
Opening
about
p13
Bibliography
p14
3. Mélanie
SANZ
ERASMUS
Student
2013/2014
3
1.
Introduction
a. Problem
field
Created
in
2011
by
Gabriel
Augusto
(President)
and
Céline
Couteau
(General
director),
Love
&
Green
a
French
company
on
the
hygiene
sector
sells
different
ecological
products.
In
2012,
the
brand
Pampers
finds
alone
on
the
French
nappy
market
after
the
withdrawal
from
Huggies
on
the
disposable
nappy.
Love
&
Green
offers
as
headlight
the
ecological
nappies
with
good
quality
at
a
reasonably
priced.
Theses
nappies
are
composed
to
60%
of
natural
and
renewable
material.
Partner
of
WWF
(Love
&
Green
put
back
a
part
of
the
price
to
WWF),
in
February
2013,
the
company
succeed
to
raised
1
million
€
to
develop
his
communication.
Today
Love
&
Green
is
present
on
500
outlets
in
France
(like
Leclerc,
SuperU,
Intermarché,
…)
and
50
privative
and
public
nurseries
in
France
as
partner.
They
flow
to
5
billons
unit
per
year
in
France.
Moreover
the
company
is
also
exporting
in
Belgium
and
in
Swiss.
One
of
Love
&
Green’s
objectives
is
to
gain
5
to
10%
of
French
and
Swiss
nurseries
market
to
2015.
Furthermore
Love
&
Green
was
contact
by
China
and
Brazil,
two
emerging
markets.
Theses
projects
could
be
huge
by
the
important
demand
that
should
procure
by
the
population,
but
also
by
a
tactful
negotiation
with
countries
that
have
a
totally
different
culture.
That’s
why
it’s
maybe
easier
to
continue
to
convince
countries
with
a
closer
culture
and
expectations.
b. Problem
definition
Love
&
Green
are
launched
to
the
race
of
internationalization.
Even
if
they
are
motivate
to
export,
this
a
new
and
small
company
that
has
to
find
the
appropriate
place
where
settle
there
and
also
understand
how
they
can
insert.
To
answer
to
this
problematic
we
can
use
two
sub
questions:
1. What
kind
of
mindset
the
exportation
place
has
to
have?
2. What
kind
of
introduction
do
we
have
to
implement?
4. Mélanie
SANZ
ERASMUS
Student
2013/2014
4
c. Delimitation
Thought
this
synopsis
we
will
focus
on
a
possible
exportation
of
Love
&Green
in
Denmark.
First
we
will
try
to
find
the
commons
values
between
the
brand
and
the
country.
And
then
we
will
choose
a
way
to
introduce
the
disposable
nappies
market
in
Denmark.
This
company
being
especially
small
and
young,
the
entire
propositions
will
be
hypothetical.
5. Mélanie
SANZ
ERASMUS
Student
2013/2014
5
2. Choice
of
models
&
Theory
a. Strategic
Analysis:
Portfolio:
The
portfolio
is
the
group
of
all
the
products
and
the
services
that
a
company
offer.
SWOT
analysis:
Disposable
nappies
from
Love
&
Green
A
SWOT
analysis
pushes
the
Strengths,
the
Weaknesses,
the
Opportunities
and
the
Threats
of
a
company.
That
can
be
specialize
in
some
area
or
be
global.
Strengths
Weaknesses
•
•
Opportunities
Threats
•
•
Definition
of
a
corporate
vision:
A
corporate
vision
is
a
visualisation
of
the
desirable
state
of
the
company
in
the
future.
b. Cultural
Analysis:
Hofstede:
-‐ Definition
of
culture
by
Hofstede:
“A
set
of
shared
values,
understandings,
assumptions,
and
goals
that
are
learned
from
earlier
generations
imposed
by
present
members
of
society,
and
passed
on
to
succeeding
generations.”
-‐ Hofstede’s
value
dimension:
Masculinity:
This
dimension
measures
the
emotional
role
depending
on
sex.
For
some
countries
the
man
has
to
be
successful,
focus
on
their
job,
hell-‐raiser,
…
and
on
the
other
hand
the
woman
has
to
be
concern
by
the
quality
of
the
life
reserve,
fragile,
…
Power
distance:
This
dimension
measures
how
people
react
in
front
of
the
hierarchy.
Some
countries
use
the
equity
and
advocate
expression
of
person
and
on
the
opposite
some
countries
do
not
accept
Individualism:
This
dimension
measures
the
link
between
people.
If
they
can
or
not
count
on
people
or
they
have
to
count
only
on
them
self.
Long
term
orientation:
This
dimension
measures
the
orientation
trough
to
the
future
with
the
value
of
tradition,
tenacity,
social
obligations
6. Mélanie
SANZ
ERASMUS
Student
2013/2014
6
Uncertainty
avoidance:
This
dimension
measures
how
people
are
afraid
about
ambiguous
or
unknown
event.
Hall:
-‐ Definition
of
culture
by
Edward
T.
Hall:
«
...man's
medium;
there
is
not
one
aspect
of
human
life
that
is
not
touched
and
altered
by
culture.
»
-‐ Hall
culture’s
factor:
High
/
Low
context:
High
context
culture
use
a
diversify
communication
system,
with
oral,
non-‐oral,
sign,
…
While
low
context
culture
is
only
based
on
formal
communication,
written
and
rules.
Monochromic
/
Polychromic
time:
Monochromic
culture
means
to
be
able
to
do
only
one
thing
at
a
time,
in
opposite
polychromic
culture
means
to
be
able
to
do
many
two
or
ore
things
at
a
time.
High
/
Low
space:
This
is
the
distance
that
people
are
taking
when
they
communicate
depending
on
culture.
c. Implementing
Analysis:
Strategic
alliance:
«
Partnerships
between
two
or
more
firms
that
combine
financial,
managerial,
and
technological
resources
and
their
distinctive
competitive
advantages
to
pursue
mutual
goals
»
There
exist
4
different
strategic
alliances:
-‐ Joint
Ventures:
When
two
independent
entities
create
together
other
independent
entitie.
-‐ Equity
Strategic
Alliances:
When
PLUSIEURS
partner
share
a
new
venture
-‐ Non-‐equity
Strategic
Alliances:
It’s
a
kind
of
agreement,
contract
about
a
sharing,
“often
with
suppliers,
distributors,
or
manufacturers”
-‐ Global
strategic
Alliances:
It’s
a
global
“partnership
between
two
or
more
companies
across
national
boundaries
and/or
industries.”
7. Mélanie
SANZ
ERASMUS
Student
2013/2014
7
3.
Analysis
a. A
product
made
especially
for
Denmark:
Love
&
Green
portfolio:
Love
&
Green
sells
different
ecological
products:
-‐ Ecological
disposable
nappies
-‐ Ecological
sensitive
Wipes
-‐ Ecological
shower
gel
We
will
focus
on
disposable
nappies.
Composition
of
Love
&
Green
disposable
nappies:
-‐ Composed
with
more
than
50%
natural
materials
&
renewable
(ie
2
to
3
times
more
than
conventional
diapers)
-‐ Cellulose
pad
FSC
(forest
officials)
certified
-‐ External
envelope
of
plant
starch
certified
GMO
-‐ Packaging
plant
starch,
biodegradable,
compostable
and
printed
with
vegetable
inks!
Love
&
Green
SWOT:
Strengths
Weaknesses
• Quality
(control
test)
• Certified
FSC
(Forest
Stewardship
Council)
• Trust
of
customer
• Supply
chain
of
quality
• Free
sample
• Made
in
France
(Local
production)
• Eco-‐friendly
• Partner
with
WWF
(donate
a
part
of
the
price)
• Difficulty
to
find
everywhere
• Price
justification
• Low
brand
image
due
to
lack
of
communication
and
novelty
Opportunities
Threats
• Creation
of
a
new
market:
ecological
view
• Facility
to
persuade
authority
for
local
production,
quality
and
ecological
objectives
• Mindset
parents
• New
possible
entrances
• Power
of
substitute:
cloth
diaper
8. Mélanie
SANZ
ERASMUS
Student
2013/2014
8
Vision:
«
Il
reste
encore
40
%
de
produits
d'origine
pétrochimique,
dont
les
substituts
naturels
n'existent
pas
encore
pour
une
performance
égale.
Nous
visons
à
terme
de
les
éliminer
jusqu'à
90
%.
»
file:///Users/melaniesanz/Desktop/PROJECT%20IBMS/Love%20&%20Green%20mise%20sur%20la%20couche%20écologique.w
ebarchive
b. A
specific
negotiation:
Hofstede’s
value
dimension:
Interpretation:
-‐ Masculinity:
Denmark
has
one
of
the
lowest
Masculinity
Index
of
the
world.
In
COMPARAISON
with
France,
Denmark
is
a
country
where
the
work
of
the
woman
is
more
equal
to
the
man.
So
when
French
has
to
negotiate
with
Danes,
it’s
important
to
considerate
woman
as
the
same
level
then
a
man
as
a
manager,
director,
…
-‐ Power
distance:
Denmark
has
one
of
the
lowest
Power
Distance
Index
of
the
world.
“Danes
do
not
lead,
they
coach
and
employee
autonomy
is
required”.
This
is
a
huge
difference
with
French
people.
-‐ Individualism:
Danish
people
are
more
independent
and
directness.
It’s
easy
to
start
to
make
business
in
Denmark.
The
relationship
is
not
the
first
step;
they
prefer
to
go
directly
to
the
benefit
of
your
business.
They
are
close
to
French.
-‐ Long
term
orientation:
Danish
are
in
short
term
orientation
culture,
that
means
that
they
are
making
business
with
what’s
happen
now,
that
also
means
that
they
have
to
be
reactive.
On
this
dimension
they
are
close
to
France
too.
9. Mélanie
SANZ
ERASMUS
Student
2013/2014
9
-‐ Uncertainty
avoidance:
Denmark
has
one
of
the
lowest
Uncertainty
Avoidance
Index
of
the
world.
They
don’t
need
to
have
plan,
they
are
able
to
change
at
any
time.
That’s
why
they
are
famous
for
creativity,
innovation
and
design
(for
example
with:
Bang
&
Olufsen).
They
are
confidante
in
all
situations
even
if
somebody
tell
you
that
they
don’t
have
the
answer
for
now.
This
is
also
a
huge
difference
that
Danish
have
with
French.
Who
need
to
have
fixed
plan.
Hall
culture’s
factor
in
Denmark:
-‐ Low
context
culture:
Denmark
is
an
open
country,
where
the
honesty
is
important
and
where
people
use
a
direct
style
of
communication.
-‐ Monochronic
culture:
They
are
traditional,
concentrate
on
their
job
and
with
their
low
context
culture
need
to
have
information.
That’s
why
they
do
one
thing
at
a
time.
-‐ High
space:
Danish
people
need
to
have
space
when
they
negotiate.
c. An
introduction
step
by
step:
-‐ Convince
the
Danish
Government:
The
French
strategy
to
find
a
place
close
to
families
was
to
contact
on
the
first
hand
the
nurseries
to
build
a
relationship
with
trust.
That’s
why,
to
get
in
the
Danish
market,
Love
&
Green
has
to
start
to
convince
the
Danish
authority.
In
fact
in
Denmark,
the
young
and
the
education
are
really
important
because
if
you
want
a
place
for
your
child
in
nursery
you
have
to
do
a
demand
to
the
Authorities.
-‐ Find
the
perfect
partner:
In
addition
to
the
government,
the
nurseries
could
be
the
first
partner
as
a
non-‐equity
alliance,
like
a
relation
between
supplier
and
distributor.
-‐ Have
different
channels
of
distribution:
The
nurseries
could
be
one
channel
of
distribution.
But
Love
&
Green
needs
to
keep
the
e-‐commerce
as
other
channel
of
distribution.
-‐ Implement
a
communication
brand:
Communicate
about
the
brand
and
in
priority
about
ecological
nature
of
the
concept.
Furthermore
the
quality
is
strength
argument,
and
if
it’s
possible,
a
local
production
should
be
the
best
ecological
and
economic
solution.
-‐ Create
a
relationship
when
everything
is
in
order:
It’s
important
to
create
a
relationship
with
distributors,
partners
and
customers
to
give
attention
and
share
information
of
innovation.
10. Mélanie
SANZ
ERASMUS
Student
2013/2014
10
Conclusion
Denmark
is
an
innovative
country.
The
children
(example:
free
education)
and
the
health
(example:
yellow
card)
are
very
important
for
the
Government
and
Danish
peoples.
They
are
concerned
by
ecology
and
environment
(example:
wind
turbin).
Love
&
Green
a
French
brand
of
ecological
hygiene
product
advocate
theses
values.
That’s
why
this
brand
has
a
good
matching
with
Denmark.
Moreover
Love
&
Green
vision
tends
to
continue
to
innovate
and
reduce
the
usage
of
harmful
products.
The
Government
do
not
put
a
barrier
to
this
company
and
will
certainly
help
this
kind
of
initiative.
In
using
the
same
strategy
to
gain
the
Danish
market
could
be
interesting,
Love
&
Green
has
just
to
be
careful
in
function
of
few
differences
in
culture.
This
company
could
follow
the
same
model
as
Mc
Donald’s,
have
the
same
strategy
of
introduction
while
take
into
account
some
cultural
factors.
Furthermore
this
model
could
give
a
kind
of
dependence
on
the
management
of
the
brand
but
in
the
same
time
adapts.
11. Mélanie
SANZ
ERASMUS
Student
2013/2014
11
Few
recommendations
-‐ Raise
funds
from
Danish
authorities
(hygiene
and
childhood)
-‐ Health,
education
or
even
food
Partner:
financial
partner
-‐ Relationship
of
trust
established
in
the
country
-‐ Provide
free
to
test
-‐ Propose
in
different
outlets
accessible
to
all:
why
not
the
chain
that
holds
the
Bilka
stores,
Netto...
-‐ Build
on
site,
new
fully
independent
team:
Work
on
product
quality
-‐ Why
not
use
a
franchise
or
license
(Example:
c
Donald’s)
-‐ Awareness
=
important
communication
-‐ Continue
on
e-‐commerce:
English
version
to
start
as
usable
everywhere
and
understanding
of
the
language
-‐ Plus:
possibility
of
opening
a
shop
in
the
city-‐center
of
Copenhagen
and
even
see
in
other
large
cities,
as
the
luxurious
product
for
its
quality
and
innovative
could
attract
customers
Copenhagen
12. Mélanie
SANZ
ERASMUS
Student
2013/2014
12
Perspectives
All
this
recommendations
have
to
goal
to
win
a
new
market
and
to
expend
Love
&
Green
brand
around
the
world.
In
using
the
interest
of
Danish
Government
and
using
the
e-‐commerce,
Love
&
Green
can
expect
to
reduce
the
costs.
Moreover
a
local
production
will
provide
a
quality
token
and
create
jobs.
13. Mélanie
SANZ
ERASMUS
Student
2013/2014
13
Opening
about
Does
Love
&
Green
will
be
enough
good
to
gain
the
market
of
nappies
in
internationalize
the
company
or
they
will
loose
against
the
cloth
nappies
market
in
long
future
(10
years)?
