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Natura &Co: Sustainability at Scale

Subject

Economics, Strategy and Entrepreneurship

Authors / Editors

Turconi S;Singh P;Wang R

Biographies

Publication Year

2021

Abstract

Established in 1969 as a cosmetics lab in the city of São Paulo, Natura grew briskly over the ensuing decades and by 2004 it had become Brazil’s largest beauty company. Unlike its competitors, Natura was built on the principle of reconciling socioecological sustainability with value creation. During the 2010s, Natura evolved from a strong regional player focused on a single brand and direct sales to a multinational, multi-brand, multi-channel group and renamed itself Natura &Co. Its three business units, Natura, Aēsop and The Body Shop, operated independently, with decision-making autonomy and their own CEOs and executive teams. Each unit continued to grow and operate sustainably, but group profitability plummeted. In May 2019 Natura &Co announced that it had agreed to acquire mass-market beauty company Avon in a transaction worth $3.7 billion. The takeover would present several challenges, from turning around underperforming Avon to developing a coherent corporate strategy without betraying Natura’s sustainability ethos. Learning objectives Analysing the nature of the trade-off between sustainability and growth. Exploring ways in which companies can embed sustainability into their business models. Identifying the compounding effects of strategy execution in generating long-term profitable growth. Clarifying the relationship between business unit and corporate strategy. Understanding the role of corporate headquarters in developing and leveraging resources and capabilities across business units.

LBS Case Number

CS-21-003

Available on ECCH

No


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