CAPS794 Presentation Rubric Learning Outcome: Assess the leadership, human resources and organizational development needs associated with a firm’s strategic goals. Presentation Content: Your presentation is based on Greenwood Resources, Case #8 and should include: · A Power Point presentation MUST also be included in conjunction with your Video · An introduction and conclusion/recommendations must be included · A brief overview of the case · Applying concepts from Chapter 7 analyze their international strategy (reason for international expansion, entry mode, international strategy, etc.) · Integrating concepts from chapter 8 discuss how Greenwood Resources adopted entrepreneurial strategies in its quest for growth. · Must include references and citations when the thoughts or ideas are not your own APA format Add recording notes in the note section of the powerpoint below each slide, explaining in detail what the slide is explain. This is not just SLIDES…. There has to be details that I will read on video explaining the context.. and it should flow as if you were giving a presentation in person Levels of Achievement Criteria Does Not Meet Expectations or Missing Needs Improvement Meets Expectations Demonstrates Mastery Introduction and Conclusion Weight 5% 0 to 72% Introduction or Conclusion were missing. 73 to 79% Failed to introduce self or purpose. Abrupt ending with no referencing. 80 to 93% Introduced topic, purpose and self. General summary with appropriate referencing. 94 to 100% Introduced topic, purpose and self along with an effective attention getter. Conclusion reinforced main points, appropriate referencing. Body of the Presentation Weight 50.00% 0 to 72 % Several content areas are missing OR content areas are not addressed at the level of detail required. 73 to 79 % A required content area may be missing OR some content demonstrates weak understanding of concepts being assessed and could be expanded upon. 80 to 93 % Adequately addresses all required content areas (case overview, international strategies, and entrepreneurial strategies) in detail demonstrating a basic understanding of the concepts being assessed. 94 to 100 % Addresses all required content areas (case overview, international strategies, and entrepreneurial strategies) in great detail demonstrating a strong understanding of the concepts being assessed. Presentation Design Weight 15% 0 to 72 % Several content areas are not supported with information from the sim or textbook 73 to 79 % Information from the simulation or the text is barely used or not used appropriately. 80 to 93% Information from the simulation and the textbooks is used appropriately to support discussion and decisions. 94 to 100 % Information from the simulation and the textbook is always used appropriately to support discussion and decisions with a high level of application to sim results. Organization and Flow Weight 10% 0 to 72 % Information is not organized in a cl.

1. CAPS794 Presentation Rubric
Learning Outcome: Assess the leadership, human resources and
organizational development needs associated with a firm’s
strategic goals.
Presentation Content:
Your presentation is based on Greenwood Resources, Case #8
and should include:
· A Power Point presentation MUST also be included in
conjunction with your Video
· An introduction and conclusion/recommendations must be
included
· A brief overview of the case
· Applying concepts from Chapter 7 analyze their international
strategy (reason for international expansion, entry mode,
international strategy, etc.)
· Integrating concepts from chapter 8 discuss how Greenwood
Resources adopted entrepreneurial strategies in its quest for
growth.
· Must include references and citations when the thoughts or
ideas are not your own
APA format
Add recording notes in the note section of the powerpoint below
each slide, explaining in detail what the slide is explain.
This is not just SLIDES…. There has to be details that I will

2. read on video explaining the context.. and it should flow as if
you were giving a presentation in person
Levels of Achievement
Criteria
Does Not Meet Expectations or Missing
Needs Improvement
Meets Expectations
Demonstrates Mastery
Introduction and Conclusion
Weight 5%
0 to 72%
Introduction or Conclusion were missing.
73 to 79%
Failed to introduce self or purpose. Abrupt ending with no
referencing.
80 to 93%
Introduced topic, purpose and self. General summary with
appropriate referencing.
94 to 100%
Introduced topic, purpose and self along with an effective
attention getter. Conclusion reinforced main points, appropriate
referencing.
Body of the Presentation
Weight 50.00%
0 to 72 %
Several content areas are missing OR content areas are not
addressed at the level of detail required.
73 to 79 %
A required content area may be missing OR some content

3. demonstrates weak understanding of concepts being assessed
and could be expanded upon.
80 to 93 %
Adequately addresses all required content areas (case overview,
international strategies, and entrepreneurial strategies) in detail
demonstrating a basic understanding of the concepts being
assessed.
94 to 100 %
Addresses all required content areas (case overview,
international strategies, and entrepreneurial strategies) in great
detail demonstrating a strong understanding of the concepts
being assessed.
Presentation Design
Weight
15%
0 to 72 %
Several content areas are not supported with information from
the sim or textbook
73 to 79 %
Information from the simulation or the text is barely used or not
used appropriately.
80 to 93%
Information from the simulation and the textbooks is used
appropriately to support discussion and decisions.
94 to 100 %
Information from the simulation and the textbook is always used
appropriately to support discussion and decisions with a high
level of application to sim results.

4. Organization and Flow
Weight 10%
0 to 72 %
Information is not organized in a clear, logical way. It is easy to
not easy to anticipate the next slide, there are no transitions OR
the presentation is less than 8 minutes or greater than 10
minutes.
73 to 79 %
Information is somewhat organized in a clear, logical way.
There are some transitions, and presentation is 8-10 minutes.
80 to 93 %
Information is organized in a clear, logical way. It is easy to
anticipate the next slide, good use of transitions, and
presentation is 8-10 minutes.
94 to 100 %
Information is extremely well organized. It is easy to anticipate
the next slide, excellent use of transitions, and presentation is
8-10 minutes.
Communication
Weight 20%
0 to 72%
Does not communicate effectively. Show little or no knowledge
of written, interpersonal, and oral communication with targeted
audience
73 to 79%

5. Communicates somewhat effectively demonstrating some
knowledge of written, interpersonal, and oral communication
with targeted audience.
80 to 93%
Communicates effectively demonstrating knowledge of written,
interpersonal, and oral communication with targeted audience
94 to 100%
Communicates effectively demonstrating mastery of written,
interpersonal, and oral communication with targeted audience
CASES
CASE 8
GREENWOOD RESOURCES: A GLOBAL SUSTAINABLE
VENTURE IN THE MAKING*
“Money still grows on trees.”
—Larry Light, Deputy Editor for Personal Finance, Wall Street
Journal1
“The answer to some of the world’s most pressing concerns
(global warming, alternative energy, sustainable forestry) lies in
one of the earth’s most renewable resources—trees.”
—GreenWood Resources, Inc.2
Jeff Nuss and other senior managers of GreenWood Resources,
Inc., emerged after a long deliberation from the conference
room in their headquarters in Portland, Oregon, in June 2010.
On the one hand, they were inspired by their global vision to
build “a resource that lasts forever” and their belief the
company, with nearly 70 employees, was finally taking off after
almost 10 years of persistent efforts in building the key
elements (opportunity, people, resources, and business
networks) for a successful tree plantation venture. On the other
hand, they had just finished a grueling meeting during which
they found it hard to reach a consensus on how to proceed with

6. two strategic investment alternatives in rural China.
Since 2000, Jeff and several other senior managers had traveled
to China on numerous occasions. The process of making a deal
in the Chinese forest industry had proven to be more time-
consuming than anticipated. Complex ownership structures,
underdeveloped farming systems, and emerging, sometimes
equivocal and unpredictable, government policies characterized
the forest industry in China. Chinese farmers who embraced
business models and management styles far different than those
in the United States posed additional complications.
By March 2009, GreenWood had assessed some 20 potential
investment projects in China. The Luxi and Dongji projects
passed the initial phase of screening and became the company’s
top priorities. The due diligence on these two projects had been
extensive, lasting over a year, but both projects still faced
considerable obstacles and even potential deadlock. In June
2010, Jeff and his senior management team were still weighing
the pros and cons of the two projects, which had been the
subject of their last management meeting. They felt that
GreenWood needed to proceed carefully to ensure the
company’s sustainable business criteria (rather than its financial
return per se) were met in China but also realized the company
needed to show some progress to its major investor in China,
Oriental Timber Fund Limited. Jeff needed to bring a
recommendation from his senior management team to the
investment committee comprising himself and two
representatives from Oriental. The decision deadline was
approaching. Jeff anticipated that the next senior management
meeting would result in a recommendation. Should GreenWood
choose one of the two projects?
GreenWood Resources, Inc.
Founding of the Venture
In 1998, after 12 years of experience with CH2M Hill3 as a
bioresources engineer, Jeff Nuss, a native Oregonian, decided to
start his own venture, GreenWood Resources, Inc., specializing
in the development and management of high-yield, fast-growing

7. tree plantations. Having looked into other potential businesses
such as a golf course and a winery, he was eventually
convinced, based on his education and years of experience
working with poplar tree farms, that investments in tree
plantations held great promise for the future (see Appendix 1
for background industry information).
Jeff’s plan was to help institutional investors (pension funds,
endowments, insurance companies, etc.) and wealthy
individuals invest in professionally managed high-yield, short-
rotation tree farms (Exhibit 1 illustrates tree rotation length and
yield of several representative tree species). He wanted to
operate farms in accordance with Forest Stewardship Council
(FSC) certification. FSC’s objective was to conserve biological
diversity and enhance the long-term social and economic well-
being of forest workers and local communities (see Exhibit 2).
Firms with FSC certificates were rare because the standards
were stringent, often leading to higher operating costs. For
example, FSC required the use of less toxic pesticides and
herbicides, which were more expensive. It prohibited the use of
genetically modified trees. It also demanded that 10 percent of
tree farms be reserved for native habitats. At the same time,
however, the economic benefits were uncertain because most
end users of wood products were not necessarily willing to pay
a premium price for FSC-certified products. Nevertheless, Jeff
felt it was the right thing to do. “At the end of the day, we do
what we believe (is right).”
page C33
EXHIBIT 1 Tree Rotation Length and Yield
The figure shows that eucalyptus and hybrid poplar ripen for
harvest much faster than other species.
Source: GreenWood’s brochure.
EXHIBIT 2 Forest Stewardship Council (FSC) Principles and
Criteria for Forest Management

8. 1 Compliance with laws and FSC principles and criteria. Forest
management shall respect all applicable laws of the country in
which they occur, and international treaties and agreements to
which the country is a signatory, and comply with all FSC
principles and criteria.
2 Tenure and use rights and responsibilities. Long-term tenure
and use rights to the land and forest resources shall be clearly
defined, documented, and legally established.
3 Indigenous people’s rights. The legal and customary rights of
indigenous people to own, use, and manage their lands,
territories, and resources shall be recognized and respected.
4 Community relations and workers’ rights. Forest management
operations shall maintain or enhance the long-term social and
economic well-being of forest workers and local communities.
5 Benefits from the forest. Forest management operations shall
encourage the efficient use of the forest’s multiple products and
services to ensure economic viability and a wide range of
environmental and social benefits.
6 Environmental impact. Forest management shall conserve
biological diversity and its associated value, water resources,
soil, and unique and fragile ecosystems and landscapes, and, by
so doing, maintain the ecological functions and the integrity of
the forest.
7 Management plan. A management plan—appropriate to the
scale and intensity of the operations—shall be written,
implemented, and kept up to date. The long-term objectives of
management, and the means of achieving them, shall be clearly
stated.
8 Monitoring and assessment. Monitoring shall be conducted—
appropriate to the scale and intensity of forest management—to
assess the condition of the forest, yields of forest products,
chain of custody, management activities, and their social and
environmental impact.
9 Maintenance of high-conservation-value forests. Management
activities in high-conservation-value forests shall maintain or
enhance the attributes which define such forests. Decisions

9. regarding high-conservation-value forests shall always be
considered in the context of a precautionary approach.
10 Plantations. Plantations shall be planned and managed in
accordance with Principles and Criteria 1–9, and Principle 10
and its Criteria. While plantations can provide an array of social
and economic benefits, and can contribute to satisfying the
world’s needs for forest products, they should complement the
management of, reduce pressures on, and promote the
restoration and conservation of natural forests.
Source: Austin and Reficco 2006.4
page C34
Key Milestones: Building Research Expertise and the
Management Team
Looking back, Jeff recalled several key milestones for
GreenWood. Having founded GreenWood with his limited
personal wealth, Jeff’s first milestone occurred when he
convinced a large Oregon family office5 to acquire an existing
poplar plantation. As a result of this acquisition, GreenWood
not only earned a steady fee through managing the poplar
plantation assets for the family office but also inherited a group
of staff experienced in plantation management. The head of this
group was Dr. Brian Stanton, a renowned expert in poplar
hybridization and genetic improvement. Over the years, Dr.
Stanton’s research team had developed dozens of poplar
varieties characterized by high growth rate, strong pest
resistance, high wood density, and broad site adaptability.
The second milestone came in 2002. On behalf of the family
office, GreenWood helped sell the poplar plantation to GMO
Renewable Resources, a large timber investment management
organization (TIMO). Despite the ownership change,
GreenWood remained the management company, taking care of
the plantation assets. This enhanced the company’s credibility
and stature and helped initiate a business model which
integrated tree improvement, nurseries, tree farm operations,

10. product (i.e., log, lumber, chips) sales, and trading and
ecosystem services (i.e., monetizing carbon credits, biodiversity
credits, water quality, and renewable energy credits and
managing land for total ecosystem value).
Other milestones included the formation of a seasoned
management team and the development of a series of strategic
relationships. In the course of formulating a viable global
business plan and raising capital, Jeff was able to successfully
put together what he believed was a highly competent
management team (see Exhibit 3 for management team
biographies and Exhibit 4 for the organizational structure). For
example, Hunter Brown, a veteran operational manager with
experience in Asia, joined GreenWood as the chief operating
officer. Brian Liu, a Chinese American with years of experience
working for the Oregon State Department of Agriculture
(responsible for the forest industry), was recruited to lead the
company’s China operations. Brian had supported GreenWood’s
endeavors while visiting China as a state government official,
and he had been convinced to leave his stable government
position to join GreenWood in 2005. In reflecting on his success
in recruiting people, Jeff said:
EXHIBIT 3 Executive Management Team Biographies, 2010
Jeff Nuss is the founder, chairman, and CEO of GreenWood
Resources, Inc., and its subsidiaries and is directly responsible
for the leadership and strategic direction of the company. He is
a leading industry spokesman and advocate for novel methods
of sustainable timber production and serves on the boards of the
World Forestry Center, Agribusiness Council, and Western
Hardwood Council. He received a BS in bioresource engineering
and an MS in resource management and policy within the Civil
Engineering Department of Oregon State University.
Hunter Brown is chief operating officer of GreenWood
Resources, Inc. Prior to joining GreenWood, he was executive
vice president for PACCESS, a global supply chain services
management firm. He has extensive business experience in Asia.
Hunter received a BS in forestry from the University of the

11. South and an MS in forestry from Duke University, and he
completed the Executive Program at the Darden School of
Business at the University of Virginia.
Lincoln Bach is corporate controller of GreenWood Resources,
Inc. Prior to joining GreenWood, he was corporate controller
for an international family-wealth-management firm. He had
previously served as an audit manager at Deloitte & Touche. He
received a BS in accounting from Linfield College and is a CPA
and CFP professional.
Brian Stanton is managing director of Tree Improvement Group
& Nurseries at GreenWood Resources, Inc. For 20 years, he has
overseen the technological developments for poplar on
commercial tree farms in the U.S. where he has produced over
40,000 varieties of hybrid poplar that have been tested
throughout Chile, China, Europe, and the United States. Brian is
the chair of the Poplar and Willow Working Party for the
International Union of Forest Research Organizations. He
received a BS in biology from West Chester State College, an
MS in forestry from the University of Maine, and a PhD in
forest resources from Pennsylvania State University.
Don Rice is managing director of Resource Management Group
at GreenWood Resources, Inc. Previously, Don was the Oregon
poplar resource and manufacturing manager for Potlatch
Corporation. Don has a degree in agricultural engineering from
Washington State University.
Jake Eaton is managing director of resource planning and
acquisitions at GreenWood Resources. He worked for 21 years
with Potlatch Corporation. Jake has extensive global experience
in short-rotation tree farm silviculture. He holds a BS in forest
management from Oregon State University and an MS in
silviculture and genetics from University of Montana.
Brian Liu is vice president and general manager of GreenWood
Resources, Inc.’s China Operations. Previously, as an
international trade representative for the State of Oregon
Department of Agriculture, he successfully led the U.S.
negotiation teams in opening the Chinese market for Oregon

12. agricultural products. Brian was born and raised in Guangdong,
China, and moved to the U.S. at the age of 14. He holds a BS in
finance and an MBA in international management from Portland
State University. He is fluent in English, Mandarin, and
Cantonese.
Source: GreenWood Resources, Inc.
Chapter
8
Entrepreneurial Strategy and Competitive Dynamics
After reading this chapter, you should have a good
understanding of the following learning objectives:
LO 8-1
The role of opportunities, resources, and entrepreneurs in
successfully pursuing new ventures.
LO 8-2
Three types of entry strategies—pioneering, imitative, and
adaptive—commonly used to launch a new venture.
LO 8-3
How the generic strategies of overall cost leadership,
differentiation, and focus are used by new ventures and small
businesses.
LO 8-4

13. How competitive actions, such as the entry of new competitors
into a marketplace, may launch a cycle of actions and reactions
among close competitors.
LO 8-5
The components of competitive dynamics analysis—new
competitive action, threat analysis, motivation and capability to
respond, types of competitive actions, and likelihood of
competitive reaction.
©Anatoli Styf/Shutterstock
page 237
LEARNING FROM MISTAKES
The disappearing photo app, Snapchat, experienced a meteoric
rise. Started by a set of Stanford undergraduate students in
2011, the app had a user base in excess of 150 million and had
reached 10 billion daily video views by 2016. As the app grew
in popularity, CEO Evan Spiegel and CTO Bobby Murphy found
themselves in a long-term battle with Reggie Brown, a Kappa
Sigma fraternity brother of theirs who claimed he was the
original creator of Snapchat. According to Brown, he shared his
idea for an app that would allow users to share photos that
would quickly self-destruct with Spiegel. They then recruited
Murphy to do computer programming for the app. That first app,
Picaboo, evolved into the widely used Snapchat. While the app
became a success, the collaboration did not. Spiegel apparently
decided that Brown wasn’t adding much to the team. He and
Murphy locked Brown out of the company’s system and
disavowed any claims that Brown was one of the firm’s

14. founders or had any ownership rights to the company. In 2013,
Brown sued, leading to an eventual confidential settlement in
2014. By that time, the overall firm was valued at about $20
billion. While the financial details of the settlement were never
made public, Spiegel publicly admitted that Brown was central
to the creation of the app, saying, “We acknowledge Reggie’s
contribution to the creation of Snapchat and appreciate his work
in getting the application off the ground.”
The Snapchat experience is not at all uncommon. Facebook,
Twitter, Tinder, Beats Electronics, and others faced internal
drama about who was responsible for the firms’ start and who
should reap the substantial financial rewards of their success.
Why is this so common? Entrepreneurial teams are often
composed of friends and family, leading the participants to
expect that they can trust their partners and have no need for a
written contract or statement of ownership. Luan Tran, the
attorney for Brown, put it this way, “You don’t think not to
trust people you know a lot, and you don’t think they are going
to screw you. It’s good to trust, but it’s much better to
memorialize your trust in a document.” Amir Hassanabadi,
another attorney who regularly works with start-up firms,
recommends the following for founders on day one of their
venture, “Go out to dinner. Settle who’s who and what’s what.
Then put it in writing.”1
Discussion Questions
1 Why do you think that so many start-up firms have these
disputes?
2 Why do founders often fail to work up formal written
contracts about ownership and credit?
3 Would you feel comfortable having that conversation early on
with a partner in a new business? How would you initiate that
conversation?

15. The Snapchat case illustrates how important it is for start-up
firms to formalize the roles of founders and set up formal
contracts that lay out responsibilities and ownership rights if
they want to avoid later drama.
In this chapter we address entrepreneurial strategies. The
previous three chapters have focused primarily on the business-
level, corporate-level, and international strategies of incumbent
firms. Here we ask: What about the strategies of those entering
into a market or industry for the first time? In this chapter, we
focus on strategic entrepreneurship—the actions firms take to
create new ventures in markets. In Chapter 12, we focus on a
related issue—how established firms can build or reinforce an
entrepreneurial mindset as they strive to be innovative in
markets in which the firm already competes.
page 238
Companies wishing to launch new ventures must also be aware
that, consistent with the five-forces model in Chapter 2, new
entrants are a threat to existing firms in an industry. Entry into
a new market arena is intensely competitive from the
perspective of incumbents in that arena. Therefore, new entrants
can nearly always expect a competitive response from other
companies in the industry they are entering. Knowledge of the
competitive dynamics that are at work in the business
environment is an aspect of entrepreneurial new entry that will
be addressed later in this chapter.
Before moving on, it is important to highlight the role that
entrepreneurial start-ups and small businesses play in
entrepreneurial value creation. Small businesses, those defined
as having 500 employees or fewer, create about 65 percent of
all new jobs in the United States and also generate 13 times as

16. many new patents per employee as larger firms.2
LO 8-1
The role of opportunities, resources, and entrepreneurs in
successfully pursuing new ventures.
RECOGNIZING ENTREPRENEURIAL OPPORTUNITIES
Defined broadly, entrepreneurship refers to new value creation.
Even though entrepreneurial activity is usually associated with
start-up companies, new value can be created in many different
contexts, including:
entrepreneurship
the creation of new value by an existing organization or new
venture that involves the assumption of risk.
· Start-up ventures
· Major corporations
· Family-owned businesses
· Nonprofit organizations
· Established institutions
For an entrepreneurial venture to create new value, three factors
must be present—an entrepreneurial opportunity, the resources
to pursue the opportunity, and an entrepreneur or
entrepreneurial team willing and able to undertake the
opportunity.3 The entrepreneurial strategy that an organization
uses will depend on these three factors. Thus, beyond merely
identifying a venture concept, the opportunity recognition
process also involves organizing the key people and resources
that are needed to go forward. Exhibit 8.1 depicts the three
factors that are needed to successfully proceed—opportunity,

17. resources, and entrepreneur(s). In the sections that follow, we
address each of these factors.
EXHIBIT 8.1 Opportunity Analysis Framework
Sources: Based on Timmons, J. A. & Spinelli, S. 2004. New
Venture Creation (6th ed.). New York: McGraw-Hill/ Irwin; and
Bygrave, W. D. 1997. The Entrepreneurial Process. In W. D.
Bygrave (Ed.), The Portable MBA in Entrepreneurship (2nd
ed.). New York: Wiley.
Chapter
7
International Strategy
Creating Value in Global Markets
After reading this chapter, you should have a good
understanding of the following learning objectives:
LO7-1
The importance of international expansion as a viable
diversification strategy.
LO7-2
The sources of national advantage; that is, why an industry in a
given country is more (or less) successful than the same
industry in another country.
LO7-3

18. The motivations (or benefits) and the risks associated with
international expansion, including the emerging trend for
greater offshoring and outsourcing activity.
LO7-4
The two opposing forces—cost reduction and adaptation to local
markets—that firms face when entering international markets.
LO7-5
The advantages and disadvantages associated with each of the
four basic strategies: international, global, multidomestic, and
transnational.
LO7-6
The difference between regional companies and truly global
companies.
LO7-7
The four basic types of entry strategies and the relative benefits
and risks associated with each of them.
©Anatoli Styf/Shutterstock
page 203
LEARNING FROM MISTAKES
What was supposed to be one of India’s hottest new shopping
centers didn’t turn out that way. Dreams Mall, located in a

19. Mumbai suburb, was built by Housing Development &
Infrastructure Ltd. (an Indian real estate development company)
to cater to the growing middle class of the world’s second-most
populous nation. But four years after its grand opening, the
“dream” has become, in essence, a retail nightmare. Now, the
mall consists of a smattering of struggling stores on the ground
floor along with a maze of dark hallways with mostly empty
shops. Space that was intended for retailers is used by call
centers. And abandoned corridors are rented out for wedding
receptions.
Across India, many of the country’s more than 300 malls have
suffered weak sales and high vacancy rates. This was not
anticipated. Developers over the past decade have built more
than 250 shopping centers to tap into India’s rapidly expanding
consumer culture. Some analysts had estimated that India’s
middle class would grow to more than 400 million people.
However, only a sliver of them (less than 10 million by
McKinsey & Company’s estimates) have sufficient disposable
income to make them steady mall customers.
India did not get its first mall until the late 1990s. Developers
started building many others after Spencer Plaza in Chennai and
a few others were so successful. Some construction companies
began building three or more malls right next to each other in
some neighborhoods in New Delhi and Mumbai. As noted by
Benu Sehgal, vice president at DLF Ltd., a big developer,
“Everyone jumped into the mall business with little
understanding of who they were actually targeting.” Govind
Shrikhande, chief executive of one of India’s largest retailers,
said, “Everyone was opening malls left, right, and center. The
consumer was never at the center of the planning process.”
Even with high vacancy rates, some Indian malls are doing very
well. For example, Select CITYWALK Mall in South Delhi is
considered “India’s No. 1 mall.” Others that are highly

20. successful in India’s highly competitive market include DLF
Promenade, Ambience Palladium, Phoenix, Inorbit, and
Marketcity. What makes these malls successful? They win in the
marketplace because they have a sound knowledge of the market
and make informed decisions at the right time. For example,
Select CITYWALK focused on what is considered “premium” in
its positioning in the market: a level lower than affordable
luxury. Today the mall is moving toward the affordable luxury
category. Also, Select CITYWALK has a nice collection of
retailers, such as Zara, Nike, and H&M, a multiplex theater, and
great food. As noted by Yogeshwar Sharma, chief executive of
Select CITYWALK, “Mall operation is one of the easiest things,
given you know the job. Every game has its own rules. If you
follow the rules, you are successful, if you don’t you fail.”
Discussion Questions
1 What lessons can other multinational companies learn from
the boom and bust of shopping centers in India?
2 How can foreign retailers be successful in a country in which
shopping centers are not attracting enough customers?
Sources: Kulshrestha, A. 2016. India may attract $80 million PE
investment in retail real estate, say JLL.
artices.economictimes.indiatimes.com. April 14: np.; Rana, P.
2015. Empty dream at India’s malls. the Wall Street Journal.
June 17: C1, C8; and, Batra, A. 2015. What makes Select
CITYWALK India’s successful mall, reveals Yogeshwar
Sharma. retail.economictimes.indiatimes.com. March 20: np.
page 204
In this chapter we discuss how firms create value and achieve
competitive advantage in the global marketplace. Multinational

21. firms are constantly faced with many important decisions. These
include entry strategies; the dilemma of choosing between local
adaptation (in product offerings, locations, advertising, and
pricing) and global integration; and others. We will address how
firms can avoid pitfalls by developing a better understanding of
the business environments of different countries as illustrated
by the lukewarm response of Indian consumers to the new malls
discussed previously. In addition, we address factors that can
influence a nation’s success in a particular industry. In our
view, this is an important context in determining how well firms
eventually do when they compete beyond their nation’s
boundaries.
LO 7-1
The importance of international expansion as a viable
diversification strategy.
THE GLOBAL ECONOMY: A BRIEF OVERVIEW
Managers face many opportunities and risks when they diversify
abroad.1 The trade among nations has increased dramatically in
recent years, and it is estimated that recently the trade across
nations exceeded the trade within nations. In a variety of
industries such as semiconductors, automobiles, commercial
aircraft, telecommunications, computers, and consumer
electronics, it is almost impossible to survive unless firms scan
the world for competitors, customers, human resources,
suppliers, and technology.2
GE’s wind energy business benefits by tapping into talent
around the world. The firm has built research centers in China,
Germany, India, and the United States “We did it,” says CEO
Jeffrey Immelt, “to access the best brains everywhere in the
world.” All four centers have played a key role in GE’s
development of huge 92-ton turbines:3
· Chinese researchers in Shanghai designed the microprocessors
that control the pitch of the blade.

22. · Mechanical engineers from India (Bangalore) devised
mathematical models to maximize the efficiency of materials in
the turbine.
· Power-systems experts in the United States (Niskayuna, New
York), which has researchers from 55 countries, do the design
work.
· Technicians in Munich, Germany, have created a “smart”
turbine that can calculate wind speeds and signal sensors in
other turbines to produce maximum electricity.
The rise of globalization—meaning the rise of market capitalism
around the world—has undeniably created tremendous business
opportunities for multinational corporations. For example, while
smartphone sales declined in Western Europe in the third
quarter of 2014, they grew at a 50 percent rate in Eastern
Europe, the Middle East, and Africa.4
globalization
a term that has two meanings: (1) the increase in international
exchange, including trade in goods and services as well as
exchange of money, ideas, and information; (2) the growing
similarity of laws, rules, norms, values, and ideas across
countries.
This rapid rise in global capitalism has had dramatic effects on
the growth in different economic zones. For example, Fortune
magazine’s annual list of the world’s 500 biggest companies
included 156 firms from emerging markets in 2015, compared to
only 18 in 1995.5 McKinsey & Company predicts that by 2025
about 45 percent of the Fortune Global 500 will be based in
emerging economies, which are now producing world-class
companies with huge domestic markets and a commitment to
invest in innovation.

23. Over half the world’s output now comes from emerging
markets. This is leading to a convergence of living standards
across the globe and is changing the face of business. One
example of this is the shift in the global automobile market.
China supplanted the United States as the largest market for
automobiles in 2009.
One of the challenges with globalization is determining how to
meet the needs of customers at very different income levels. In
many developing economies, distributions of income remain
much wider than they do in the developed world, leaving many
impoverished even as the economies grow. The challenge for
multinational firms is to tailor their products and services to
meet the needs of the “bottom of the pyramid.” Global
corporations are increasingly changing their product offerings
to meet the needs of the nearly 5 billion poor people in the
world who inhabit developing countries. Collectively, this
represents a very large market with $14 trillion in purchasing
power.