The discussion on the consequences of illegal business on the tax collection and on the competition process has arisen intensively in the business context, rather than in the academy. Once the understanding of how the phenomenon takes place is granted, this study investigates, based on a case study, the actions developed by Souza Cruz S.A., the Brazilian leading tobacco company to face the illegal market - one subject of unfair competition. The organization develops two-level actions: in the first level, the management actions, to improve the performance as for the problem and the consequent learning process. The second level actions are those exerted, both directly and indirectly, on the government, which is the legitimate part to struggle the informality. These actions include information exchange with government agencies and actions on the public opinion, as ways to gain public support and bolster the need for law enforcement.
tobacco industry; smuggling; counterfeiting; illegal business
