The case concerns the sale of Mae Terra, one of Brazil's leading brands for packaged organic foods, to the consumer goods giant Unilever in 2017. Working with Unilever management, Mae Terra’s CEO Alexandre Borges must determine whether and how to keep Mae Terra's B Certification, which attests to its commitment to having a positive social and environmental impact, and what internal governance mechanisms will enable MaeTerra to maintain its mission, values, and practices even as it is integrated into a large volume-driven multinational whose governance follows standard listed company principles.
Unilever is making strides to integrate the operations of Mae Terra—one of Brazil's leading brands for packaged organic foods—into its own structures, after acquiring the company in 2017. Mae Terra’s CEO, Alexandre Borges, must decide whether to implement his original plan as written into the purchase and sales agreement to create an advisory board to help ensure that the company maintain its mission, values and practices as part of a volume-driven multinational like Unilever—and, if so, how the board will operate and who its members will be. Some executives believe that such a board is not necessary given Unilever's own culture and commitments.
This article engages in a methodological experiment by using historical evidence to challenge a common misperception about internalization theory. The theory has often been criticized for maintaining that it assumes a hierarchically organized MNE based on knowledge flowing from the home country. This is not an accurate description of how global firms operate in recent decades, but this article shows it has never been true historically. Using longitudinal data on individual firms from the nineteenth century onwards, it reveals evidence of how entrepreneurs and firms with multinational activity faced by market imperfections changed the design of their headquarters and their organizational structures.
See more research
Maria Fernanda Miguel joined Harvard Business School in 2013 as Executive Director for the Latin America Research Center (LARC). Her responsibilities include leading research activities for Spanish speaking countries in LATAM, and providing programmatic support to different areas of HBS including admissions, executive education, and immersion programs. Fernanda is based in Buenos Aires, Argentina.
Prior to join Harvard Business School, Fernanda was a Senior Director and Leader for LATAM Business Development at Merck and senior consultant at McKinsey & Co., serving as global Practice Manager for the Business Technology Office Health Care Practice.
Fernanda holds a degree in economics from the Argentine Catholic University, an MBA from Harvard Business School, and a Master of Research from University of Bath.
Fernanda has been very active in non-profit activities, including fund rising at the Fundación Acción Hemato-oncologica – Argentine National Academy of Medicine, and acting as advisor to the Board of Directors of the Hospital Garrahan.