Running head: BENCHMARK- CASE STUDY PAPER 1 BENCHMARK- CASE STUDY PAPER 2 Benchmark - Case Study Paper In the current age of revolutionary change, an organization is as healthy as its sustainability prowess. Today’s companies, unlike past generations, operate in a complex and fast-paced regulated environment. There is an increased need to satisfy current stakeholders, safeguard future generations, and most favorably use natural resources. It is in this breadth the Purple Cloud Company thirsts to speed up their product development, widen its market share, and seize new opportunities. The company’s sustainability strategy is acquisition and expansion as they aim to increase the value above $100 million and increase the organizations stock price above $71. Acquisition is a strategic measure that allows businesses to increase their market share, expand their geographic reach, and become more significant players in their industries. In an acquisition, a corporation purchases another company to enlarge its operations. Small organizations use this strategy to expand its product line and enter new markets. The Purple Cloud Company implemented an acquisition strategy as a corporate sustainability resolution. The company purchased ABC-Tech, and the acquisition allowed the parent company to intertwine its services with the newly acquired and developed organization. The purchase yielded goodwill for the company’s stakeholders, provided a competitive edge, and reflected positively on the organization's financial bottom line. The acquisition of ABC-Tech, which is a company that offers a pure technology platform, allows the organization to reduce customer support costs from $7,000 to $6,000, increase ABC-Tech revenue from $24 million to $48 million, increase revenue from $70 million to $100 million, and increases the profitability index from 17.2% to 18.7% market share, this will attract talent, and drive innovation. (Spears, 2012). Additionally, the Purple Cloud organization should deploy an expansion strategy. This step will not only expand its market share, especially if the home market is saturated with its products, but also expand its product line, and add new features to increase its sales and profits. The company will continue selling within the existing market. This is an inevitable venture given the prospect of it promoting access to new territories that will boost sales volume, allow diversification thus reducing risk exposure, facilitate access to better talent pools, build strong public relations, bring forth a competitive advantage, and most importantly provide opportunities for direct foreign investment. Management Theories Management theory is a collection of ideas that sets out general rules on how to manage a company or organization. Management theory addresses how managers and supervisors relate to their organizations in knowing their goals, implementing effective ways to ac.

1. Running head: BENCHMARK- CASE STUDY PAPER
1
BENCHMARK- CASE STUDY PAPER
2
Benchmark - Case Study Paper
In the current age of revolutionary change, an organization is as
healthy as its sustainability prowess. Today’s companies, unlike
past generations, operate in a complex and fast-paced regulated
environment. There is an increased need to satisfy current
stakeholders, safeguard future generations, and most favorably
use natural resources. It is in this breadth the Purple Cloud
Company thirsts to speed up their product development, widen
its market share, and seize new opportunities. The company’s
sustainability strategy is acquisition and expansion as they aim
to increase the value above $100 million and increase the
organizations stock price above $71.
Acquisition is a strategic measure that allows businesses to
increase their market share, expand their geographic reach, and
become more significant players in their industries. In an
acquisition, a corporation purchases another company to enlarge
its operations. Small organizations use this strategy to expand
its product line and enter new markets. The Purple Cloud
Company implemented an acquisition strategy as a corporate
sustainability resolution. The company purchased ABC-Tech,
and the acquisition allowed the parent company to intertwine its
services with the newly acquired and developed organization.
The purchase yielded goodwill for the company’s stakeholders,
provided a competitive edge, and reflected positively on the
organization's financial bottom line. The acquisition of ABC-
Tech, which is a company that offers a pure technology

2. platform, allows the organization to reduce customer support
costs from $7,000 to $6,000, increase ABC-Tech revenue from
$24 million to $48 million, increase revenue from $70 million
to $100 million, and increases the profitability index from
17.2% to 18.7% market share, this will attract talent, and drive
innovation. (Spears, 2012).
Additionally, the Purple Cloud organization should deploy an
expansion strategy. This step will not only expand its market
share, especially if the home market is saturated with its
products, but also expand its product line, and add new features
to increase its sales and profits. The company will continue
selling within the existing market. This is an inevitable venture
given the prospect of it promoting access to new territories that
will boost sales volume, allow diversification thus reducing risk
exposure, facilitate access to better talent pools, build strong
public relations, bring forth a competitive advantage, and most
importantly provide opportunities for direct foreign investment.
Management Theories
Management theory is a collection of ideas that sets out general
rules on how to manage a company or organization.
Management theory addresses how managers and supervisors
relate to their organizations in knowing their goals,
implementing effective ways to achieve planned targets, and
how to motivate employees to meet the highest standards.
Today’s organizations are comprised of individuals who manage

3. the employee pool based on the science of humanistic
approaches, which has evolved from the authoritarian mindset
of the past generation. Purple Cloud has benefited from various
visionary methods of operating sustainable companies,
commonly referred to as management theories. A primary
management theory is classical theory. The use of data and
measurements allows the Purple Cloud management team to
observe and evaluate business functions in numerical terms. The
quantitative focus on the operations, and the production of
services allows the company to achieve informed decision-
making, and effective profitability.
Domestically, the company has a larger market share, and this
motivates the organization to locate emerging markets
internationally. The company employs capable personnel,
including a consultant to improve the standards of operations,
and their market share (Spears, 2012). Moreover, the company
develops toys that carry embedded software for device spying,
providing a competitive advantage in different markets. In a
nutshell, the company has increased revenues, increased profits,
and recorded flat hosting costs and marginal increase in
operational costs.
Additionally, the organization is implementing the modern
management theory. This is an ideal theory given its holistic,
integrated, and well-balanced approach to organizational goals.
The theory appreciates the fact there should be cohesion
between various functions. Its efficacy is embedded in the
recognition and leverage on unique patterns of the
organization's flow of operations. This management theory
makes it possible for the Purple Cloud management team to
analyze quantitative data, and foresee their future in resource
availability (Spears, 2012).
The improvement of technology allows the company to catch

4. the market and penetrate in different regions within and without
operating in those countries. Financial statements aid in
determining and providing informed decisions about the
economic future of the organization. In fact, the proper use of
the management theories allows the Purple Cloud company to
experience rapid growth in its market share, an increase in
sales, and the company’s stock position.
Leadership Theories
An organization’s progress is equally based on its leadership
theories. The Purple Cloud Company needs leaders who stand
out among the masses. Defining leadership is categorized
commonly as an aspect of leadership theories. The Purple Cloud
organization employs transformational leadership and trait
leadership theories. Transformational theory is evident when
different interactions between individuals within the company
leads to solid relationships. Relationships bore heightened trust
that increased motivations intrinsically and extrinsically for
both leadership theories (Denning, 2017). Transformational
leadership allows individuals who join the organization to build
a relationship that ensures growth, and success of the
organization. From the CEO to new recruits, the company has
dedicated personnel who has transformed the organization into a
strong and promising venture to compete favorably beyond the
local market. Organizational leadership is concerned with the
future of the organization, and how to improve daily operations.
Trait leadership theory focuses on mental, physical, and social
paradigms. The leaders of the organization have different traits
ranging from intellect, sense of creativity, and responsibility to

5. other admirable values. The trait leadership theory is
implemented by the organization to ensure the growth of
prospects. The company posts leadership profiles to showcase
their market potential based on their experience and their ability
to deliver growth for the company. Leadership professionals
smoothly operate company activity and display confidence
based on the outcome of the process (Spears, 2012).
Additionally, the company personnel are comprised of
individuals from diverse backgrounds. As an example, the
company’s Chief Information Officer (CIO) is Thomson
Thunder, who has prominent experience in technology, which
assist with the company’s rapid growth, and improvement of
services. Thomson’s technological expertise and knowledge has
created a team dynamic within the company. Technology is used
to guard financial information, confidential managerial
assessments, and other records that result in competitive pros.
Technology assist enterprises to keep their ideas, thoughts, and
plans away from competition. An organization equipped with
technological abilities to explore new opportunities remain a
step ahead of oppositional challenges. An organization
continues to exist by growth and obtaining new prospective
clients.
Discussion
Sustainability is a cardinal focus for organizations that aim to
safeguard their footprints beyond generations. To make
operations successful today, and preserve future interests, an

6. organization must integrate policies and processes into planning
and measurement systems. This method allows the paradigm
shift from conventional management practice to sustainable
approach inevitable. There is no one-size-fits-all approach.
However, there is a trade-off based on what management wants
to do and what leaders must do to sustain the financial growth
of the organization (Denning, 2017).
Strategic alliance is a method the Purple Cloud Company should
use to enter international new markets. Through this entry
method, the company forms a partnership with an existing
company in the nation they want to operate and work with the
organization for a certain amount of time to set a foundation in
that country. This prevents the company from being treated as a
foreign entity, especially for purposes of import tariffs, and
other duties levied on imported products (Denning, 2017). As an
alternative, organizations adopt the Greenfield Venture; which
is a market entry approach of establishing a new organization in
a foreign country. The Greenfield Venture allows the Purple
Cloud Company to enter new markets without the assistance of
another established company in the country. The process of
creating a Greenfield venture is expensive and complicated, but
the company is provided with maximum control of operations,
products and services. In fact, this method allows the
company’s scheme to be built into the structure from the
beginning.
Therefore, the Purple Cloud Company will have full control
over its Greenfield business operations. The associated costs
and risks are increased, because to establish a new business
venture in a foreign country, the company must acquire local
market knowledge and expertise, and develop relationships with
stakeholders, which increases expenses, costs, and risks
company exposure.

7. Purple Cloud Company also minimizes organizational exposure
to political risks in the foreign country it wants to invest in.
Company’s in alliance with the Purple Cloud Company will
have the experience and understanding of local laws, customs,
and cultural climate of the target country. This partnership
works best when both portfolios complement one another, and
do not display a competitive niche. Strategic alliances offer
other benefits, including access to new technology, intellectual
property rights, product and service diversification, improved
material flow and product lifecycle, streamlining operations,
and reducing overall costs.
Purple Cloud can operate in new countries as a multinational
company, customizing their products and services to the needs
of each country of operation. The organization must comply
with the quality demands of the state in which they operate and
provide consumer needs. Mexico and India are prominent
choices the company should consider, because they exercise
democracy, provide diverse production processes, and
international investors. The countries also have favorable
restrictive regulations for foreign businesses, including foreign
ownership of business property and taxation, import tariffs,
quotas, and export restrictions.
Ethical Implications
Ethics are essential in determining the success or
collapse of an organization. Ethical implications influence a
company’s reputation and assist to identify a business model

8. that will prosper despite challenges. Incorporating ethical
strategic measures add considerable value to a brand, while the
inability to do the right thing causes social, economic, and
environmental damage, which has negative long-term effects on
an organization. Once a company adopts ethical approaches to
conducting business, they obtain the benefits of demonstrating
high ethical standards (Wallace & Sheldon, 2015).
The ethical implications and tone begin at the epicenter of the
organization. Management information on social,
environmental, and high-quality ethical performance is vital to
monitor the social and ecological impacts of a company and
linked to compiling reports that show how effective their
governance arrangements are (Smart, Barman, & Gunasekera
(2010). Corporate communications and sustainability reports
must do more than just pay for direct attention. They should
provide substantial evidence of the positive impact on society,
and the strategic returns to the company, and how the adverse
effects are being addressed (Smart, Barman, & Gunasekera
(2010). Management accountants have an ethical responsibility
to promote an ethical culture that does not allow unlawful
practices. Throughout Purple Cloud’s development, the
company must consider the ethical approach in its
organizational strategy and decision-making processes. By
doing so, it will improve the company’s mission, vision, and
core values.
Conclusion
Organizations are as sound as the sustainability methods they

9. employ within the balance of the company, and external factors
that threaten organizational growth. The Purple Cloud Company
is on the path of improving the productivity of resources, as
long-term growth viewpoints are considered. The company is
implementing vibrant management theories, such as classical
and modern management theories, matched with professional
leadership theories, trait, and transformational theories. These
are essential in attaining organizational sustainability poised to
increase market share, lower costs and expenses, increase sales,
build brand loyalty, drive innovation, improve talent
acquisition, and provide the organization with a competitive
advantage. Purple Cloud Company must make philosophical
adjustments not only to enhance the company’s income and
profit rate, but also accomplish the mission of providing quality
protection products, the vision of safe cloud movement for
applications, and the organizations core values.
Reference
Denning, S. (2017). The Age of Agile: How Smart Companies
Are Transforming the Way Work Gets Done. Amacom.
Spears, U. (2012). Coaching Leadership Families: Using the
Leadership Family Model to Coach, Mentor and Multiply
Healthy Families. Bloomington, IN: Xlibris Corporation.
Spears, U. (2012). Managing People and Organizations: Peter
Drucker's Legacy. West Yorkshire, England: Emerald Group
Publishing.
Wallace, M., & Sheldon, N. (2015). Business research ethics:
Participant observer perspectives. Journal of Business Ethics,
128(2), 267-277.
Smart, V., Barman, T., Gunasekera, N. (2010). Incorporating
ethics into strategy: developing sustainable business models.
Retrieved from, https://www.cimaglobal.com

10. Rubic_Print_FormatCourse CodeClass CodeAssignment
TitleTotal PointsDBA-835DBA-835-O500Benchmark - Case
Study Presentation230.0CriteriaPercentageUnsatisfactory
(0.00%)Less Than Satisfactory (73.00%)Satisfactory
(82.00%)Good (91.00%)Excellent (100.00%)CommentsPoints
EarnedContent70.0%Summary of the Business Issue10.0%A
summary of the business issue is not presented.A summary of
the business issue is included, but is inaccurate or incomplete.A
summary of the business issue is presented, but does not focus
on the financial concerns of the case.A summary of the business
issue is presented and focuses on the financial concerns of the
case.A summary of the business issue is thoroughly presented
and strongly focuses on the financial concerns of the case
offering rich detail.Overview of at Least Two Viable Potential
Resolutions20.0%An overview of at least two potential
resolutions is not presented.An overview of at least two
potential resolutions is presented, but resolutions are ill-
conceived and illogical. No research or financial analysis
support is offered.An overview of at least two potential
resolutions is presented, but is cursory and lacking in depth.
Resolutions may be viable, but appear hastily conceived and
lack depth of thought. Research and financial analysis support
are limited and from dated resources.An overview of at least
two potential resolutions is presented, is logical, and is
thorough. Resolutions are viable, appear moderately well-
conceived, and are logical. Research and financial analysis
support are limited, but from current resources.An overview of
at least two potential resolutions is thoroughly presented with
clear logic and rich detail. Resolutions are viable and well-
conceived and display exceptional depth of thought. Research
and financial analysis support are thorough and from current
resources.Overview of the Ethical Implications of Each Option
and the Influence From the Mission, Vision, and Core Values of
Purple Cloud20.0%An overview of the ethical implications of
each option and the influence from the mission, vision, and core
values of ABCTech is not presented.An overview of the ethical

11. implications of one option is presented, but is inaccurate or
illogical. The influence from the mission, vision, and core
values of ABCTech is vaguely addressed. No research support is
offered.An overview of the ethical implications of each option
and the influence from the mission, vision, and core values of
ABCTech is presented, but is cursory and lacking in depth.
Research support is limited and from dated resources.An
overview of the ethical implications of each option and the
influence from the mission, vision, and core values of ABCTech
is presented and thorough. Research support is limited, but from
current resources.An overview of the ethical implications of
each option and the influence from the mission, vision, and core
values of ABCTech is thoroughly presented with rich detail.
Research support is thorough and from current
resources.Overview of and Rationale for Proposed
Resolution20.0%An overview of and rationale for the proposed
resolution are not presented.An overview of and rationale for
the proposed resolution are presented, but the resolution is
illogical. No information of how the resolution influences the
profit and loss statement and/or other financial criteria and
statements is given and the rationale is illogical. The overview
is overly detailed.An overview of and rationale for the proposed
resolution are presented and include information of how the
resolution influences the profit and loss statement and/or other
financial criteria and statements. The resolution and rationale
appear hastily conceived and lack depth of thought. The
overview is not concise.An overview of and rationale for the
proposed resolution are presented, logical, and moderately well-
conceived and well justified. Information of how the resolution
influences the profit and loss statement and/or other financial
criteria and statements is given and appears relatively well-
conceived. The overview is relatively concise.An overview of
and rationale for the proposed resolution are concisely
presented with clear logic and appropriate detail including well-
conceived and well justified information of how the resolution
influences the profit and loss statement and/or other financial

12. criteria and statements. The overview conveys a thorough
understanding of the interconnected nature of business
events.Integration of Instructor Feedback10.0%Integration of
instructor feedback is either missing or not evident to the
reader.Integration of instructor feedback is vaguely attempted,
but does not address the majority of instructor comments and
suggestions.Integration of instructor feedback is evident though
it appears as a disjointed, cursory addition. Most of the
instructor comments and suggestions are addressed.Integration
of instructor feedback is evident and relatively well
incorporated into the natural flow of the paper. All instructor
comments and suggestions are addressed.Integration of
instructor feedback is evident and meaningful. It is seamlessly
incorporated into the flow of the paper. All instructor comments
and suggestions are addressed.Organization and
Effectiveness10.0%Thesis Development and Purpose
Benchmarks C3.5: Produce concise business-oriented
writing.10.0%Presentation lacks any discernible overall purpose
or organizing claim.Thesis and/or main claim are insufficiently
developed and/or vague; purpose is not clear.Thesis and/or main
claim are apparent and appropriate to purpose.Thesis and/or
main claim are clear and forecast the development of the
presentation. They are descriptive and reflective of the
arguments and appropriate to the purpose.Thesis and/or main
claim are clear and comprehensive; the essence of the
presentation is contained within the
thesis.Format10.0%Mechanics of Writing5.0%Mechanical errors
are pervasive enough that they impede communication of
meaning. Inappropriate word choice and/or sentence
construction are used.Frequent and repetitive mechanical errors
distract the reader. Inconsistencies in language choice
(register), sentence structure, and/or word choice are
present.Some mechanical errors or typos are present, but are not
overly distracting to the reader. Correct sentence structure and
audience-appropriate language are used.Prose is largely free of
mechanical errors, although a few may be present. A variety of

13. sentence structures and effective figures of speech are
used.Writer is clearly in command of standard, written,
academic English.Layout5.0%The layout is cluttered, confusing,
and does not use spacing, headings, and subheadings to enhance
the readability. The text is extremely difficult to read with long
blocks of text, small point size for fonts, and inappropriate
contrasting colors. Poor use of headings, subheadings,
indentations, or bold formatting is evident.The layout shows
some structure, but appears cluttered and busy or distracting
with large gaps of white space or a distracting background.
Overall readability is difficult due to lengthy paragraphs, too
many different fonts, dark or busy background, overuse of bold,
or lack of appropriate indentations of text.The layout uses
horizontal and vertical white space appropriately. Sometimes
the fonts are easy to read, but in a few places the use of fonts,
italics, bold, long paragraphs, color, or busy background
detracts and does not enhance readability.The layout
background and text complement each other and enable the
content to be easily read. The fonts are easy to read and point
size varies appropriately for headings and text.The layout is
visually pleasing and contributes to the overall message with
appropriate use of headings, subheadings, and white space. Text
is appropriate in length for the target audience and to the point.
The background and colors enhance the readability of the
text.Total Weightage100%
College of Doctoral Studies
DBA-835 Integrated Case Study
In this course, you will interact with Part III of a multi-year,
integrated case study experience. This part of the case study
focuses on economic issues and related ethical decisions.
The Case
Purple Cloud was founded 15 years ago and has grown from a
start-up security company to a small, but well-respected

14. competitor in the rapidly growing security sector. The founder,
A. Nathan Tecnoti, is a visionary leader who forecasted the
need to develop robust software products that protected both
individuals and companies. As the Internet grew, so did
Tecnoti’s business. He innovated rapidly, but Tecnoti could not
keep up with the ever-changing technologies and was often
outmaneuvered by larger companies who had larger and more
proficient technical staffs and marketing budgets. Tecnoti began
seeking a way to accelerate product development so he could
increase market share and take advantage of new market
opportunities. It is for this reason that Tecnoti developed an
acquisition strategy to rapidly acquire companies that offered
promising security technologies.
Invoking that strategy, Purple Cloud acquired ABCTech during
a positive economic outlook. Video press coverage of this event
can be viewed at https://lc.gcumedia.com/mgt805/business-
acquisition-press-release-video/v1.1/. The ABCTech product
acquired by Purple Cloud was completely different than any
other software security application offered in the market. The
product offered an elegant solution implemented with a single
update to the user's computer operating system thereby
bypassing the need to distribute daily updates to address new
security threats. The simplicity of the solution circumvented
both the necessity to acquire capital to build or acquire
extensive infrastructure and the requisite addition of high-
priced support staff. Nonetheless, the company now has
approximately 200 employees, about 40% of which are full-
time.
Purple Cloud has survived the economic downturn of a few
years ago and, in fact, experienced a resurgence on the
cybersecurity front since many people feared the vulnerability
of personal information located online. Despite transforming
this $40 million company into a $100 million organization with
a current stock price of 71, the executives still feel it is
necessary to safeguard their long-term investment as they look
toward a more sustainable future. The uncertainty surrounding

15. how Purple Cloud will approach sustainability has led Chris
Christianson, one of the co-founders of ABCTech, to have his
company shares bought out stating that he is uncomfortable with
the current forecasting. When asked about his departure,
Christianson said,
It has been a long time coming. I was new to running a
business, and as long as I was able to see where the company
was going and growing, I was willing to stay. Recently, it just
was not fun for me anymore. So, I am stepping down to allow
the Purple Cloud leadership to replace me with someone who
can help take them to the next level.
Tecnoti, the CEO of Purple Cloud, and Thunder Thompson, co-
founder of ABCTech and newly appointed chief information
officer (CIO), released this joint statement:
We are saddened by the loss of our colleague, though we know
he is going to move on and do what he loves to do. We know he
will still be watching as we work on a more sustainable future.
In its quest for sustainability, Purple Cloud is interested in
expanding its operations. It currently is doing well in both
domestic and international sales. In essence, it is acting like an
international organization, exporting its product solely via
computer downloads. However, customer service costs are
rising in the United States as the increased need for 24/7/365
support is needed to serve its global clientele. The addition of
the second and third shifts is impacting profits.
Concerns exist in the cybersecurity market as well. First, there
is increased speculation that a company has developed toys with
embedded learning software that can be used as spying devices
for companies to gain a competitive advantage. However, given
Purple Cloud's acquisition strategy, this may provide an
opportunity for Purple Cloud to acquire a cyber security
software and then use its existing technologies necessary to
implant the software. This would allow them to become the
leader of cyber security products that detect this type of spying
and ultimately put the world at ease from cyber spying while
remaining true to its strategy and using its existing technology.

16. The second concern is the current flux of United States
international policies. For decades, the United States has played
the role of world police force, but there is a current trend to
focus more on national versus international concerns. Trade
agreements such as NAFTA which have been in place for
decades are being questioned, and higher tariffs may be on the
horizon in order to bring manufacturing jobs back to the United
States from countries such as China and India.
However, corporate tax rates in the United States are currently
in flux and could turn favorably for Purple Cloud. Thus, Purple
Cloud's leaders are considering whether this is enough to
support the desired growth rate or whether going international is
the right option.
With the desire for continued growth, Purple Cloud needs to
review its options, and the executives have hired a global
consultant to provide them with potential global growth
scenarios. Purple Cloud is advised it first needs to determine
whether to remain just an exporter or to explore other
international modes. The consultant, utilizing the work of Hitt,
Ireland, & Hoskisson (2013), is providing the following modes
of entry as a reference:
· Licensing - An agreement is formed that allows a foreign
company to purchase the right to manufacture and sell a firm’s
products within a host country’s market or a set of host
countries’ markets.
· Strategic Alliance - A firm collaborating with another
company in a different setting in order to enter one or more
international markets.
· Cross-Border Acquisition - A firm from one country acquires a
stake in or purchases all of a firm located in another country. A
related strategy, domestic acquisition, was used earlier in
Purple Cloud’s development.
· Greenfield Venture - A firm invests directly in another
country or market by establishing a new wholly owned
subsidiary, which is 100% owned by the parent company.
Second, the consultant worked drew on the work of Iwan (2007)

17. and advised Purple Cloud executives of three possible types of
global organizations Purple Cloud could become including the
following:
· Multinational companies have investments in other countries
but do not have coordinated product offerings in each country.
These companies tend to be focused on adapting their products
and service to each individual local market.
· Global companies have invested in and are present in many
countries. They market their products through the use of the
same coordinated image/brand in all markets. Generally, one
corporate office is responsible for designing and implementing
a global strategy that tends to emphasize volume, cost
management, and efficiency.
· Transnational companies are much more complex
organizations. They have invested in foreign operations and
have a central corporate facility, but they delegate decision-
making, research and development, and marketing powers to
each individual foreign market.
Given the goals of Purple Cloud, the consultant has presented
the following three expansion countries for the executives to
review further:
· China - China is an autocratic regime following export
oriented growth strategy. China has the biggest military budget
in the world. Together with India, China did $73 billion in trade
last year. China has become known as a leader in
manufacturing, and pride itself on quality at a good price.
· India - India is a democracy following inclusive growth
strategy. India is nonaligned and is a self-reliant nation. No
third country, directions, or orders influence India’s behavior.
They have been known previously for customer service
contracts and software development.
· Mexico - Mexico is up-and-coming. They have signed 44 free
trade agreements, more than any other country in the world.
This is more than twice as many free trade agreements as China

18. and 4 times more than Brazil. Mexico has increased the number
of engineers and skilled laborers graduating from its schools.
Today, Mexico is exporting more manufactured products then
the rest of Latin America combined. For example, Mexico is a
base to supply some Fiat 500s to the Chinese market. There are
also several technology start-ups emerging up in Mexico. As the
population continues to shift, language needs are also shifting.
As a tool for researching, the consultant has recommended that
Purple Cloud executives access globalEdge at
https://globaledge.msu.edu/. This is a free database of
international business information, and the consultant has
indicated that this is an excellent resource for executives
considering the types of decisions currently faced by Purple
Cloud.
The consultant has also mentioned the need for Purple Cloud to
explore its current corporate social responsibility policy and
consider a change of philosophy to more closely align with the
notion of conscious capitalism.
References
Hitt, M. A., Ireland, R. D., & Hoskisson, R. E. (2013). Strategic
management: Competitiveness & globalization (10th edition).
Mason, OH: South-Western.
Iwan, L. (2007, June 18). Differences between a global,
transnational, international, and multinational company [Web
log comment]. Retrieved from
https://leeiwan.wordpress.com/2007/06/18/difference-between-
a-global-transnational-international-and-multinational-company/
Questions to Consider
What mode of entry and organizational type should Purple
Cloud adopt to assure its future sustainability if it decides to
move to become a global corporation? Why?
Into which country or countries should Purple Cloud pursue
expanding its operations? Why?
What ethical considerations arise from the response options
described? How should Purple Cloud leaders manage those

19. considerations?
Background Information
Mission, Vision, Core Values
Mission
Purple Cloud exists to provide quality protection products to
ensure client online security.
Vision
Safe movement in the cloud for all applications.
Core Values
Security
Honesty
Reliability
Teamwork
Efficiency
Member Biographies
Purple Cloud
A. Nathan Tecnoti, Founder and CEO
Tecnoti is a visionary. He started his company to help protect
the privacy of individuals and small companies. With this focus,
he has built a successful small business. However, with just
$50M in revenue, he is often out-maneuvered by larger
companies who have the marketing resources and technology to
block his expansion into this market. Tecnoti’s experience with
previous organizations allowed him to establish quick responses
to market situations, improve customer relevance, and create
better partnerships in the digital industry, especially in cloud-
based models.
With a B.S. in business and an M.S in information technology,
Tecnoti brings to the company significant experience working
globally as well as a strong IT background. In addition, Tecnoti
has extensive experience in the industry prior to Purple Cloud
where he worked in the roles of senior vice president of
technology for two other large corporations. He was responsible

20. for growth, marketing, and the companies’ office operations.
Tecnoti also has experience in licensing of software and
managing sales in the United States and Europe for previous
corporations.
Thunder Thompson, Chief Information Officer (CIO)
Thompson is co-founder of ABCTech. As the CEO of ABCTech,
Thompson focuses on the company’s growth and technology
strategy. Thompson has a B.S. degree in computer programming
and a passion for creating safe data products and applications.
He brings more than 10 years of experience in enterprise IT
software, data analytics, security, and knowledge of cybercrime.
Thompson also has experience in technical operations and cloud
and data platforms. He is new to being an entrepreneur, but is
excited at the prospects of making a difference in the
technology world with his company’s safe data products.
Thompson believes in ABCTech’s vision: A world protected
from cybercrime and personal security breaches.
Maria Preston, Chief Operational Officer (COO)
Preston is responsible for driving profitable growth and creating
operational excellence. She has an excellent track record of
innovation and creating excellence in the operational division.
Preston oversees the national and global supply chain of the
company. Her innovative approach to problem solving has put
her at the top of her industry in her previous organizations and
now with Purple Cloud where she is charge with innovating
operational processes for maximum efficiency.
Preston’s previous experience shows she has held leadership
roles in IT and manufacturing. She has worked with a variety of
companies in Silicon Valley and is known for creating
partnerships that reshape and create cross-functionality for the
organization. Preston holds a B.A. in economics and an M.B.A.
in business administration.
Will Taylor, Chief Financial Officer (CFO)
Taylor comes to Purple Cloud with an abundance of experience
in the financial strategy and operations of IT companies. He is

21. tasked with creating value for shareholders, upholding a
balanced portfolio, and leading the growth initiatives of the
company. He believes integrity is critical in creating a
successful financial strategy.
Taylor's previous experience comes from working in business,
technology, operations, and finance for companies in Silicon
Valley. He has had experience partnering with organizations to
focus on long-range strategic planning, forecasting, and
working with budgets as high as $50M. Taylor has a B.S. in
finance and an M.S. in business with a specialization in finance.
He also has extensive experience in mergers and acquisitions,
financial planning, and profit and loss.
Herbert VanderLugt, Marketing Director
VanderLugt has extensive experience in marketing. Before
joining ABCTech, he worked in Silicon Valley as head of
marketing operations for a large tech firm. VanderLugt has a
B.A. in business as well as an M.B.A from a prestigious
business school. He is also fluent both in writing code and in
website design. These skills complement his understanding of
ABCTech and its marketing needs within the tech industry.
Tom Englewood, Director of Customer and Techical Support
Englewood provides oversite of all the customer support and
technology issues for ABCTech. He has both a B.S. and an M.S.
in computer science. Englewood brings 30 years of experience
in the field of technology and customer service both at the
university level and in the corporate setting. He has experience
in enterprise applications, teaching, research and learning, user
support information security, infrastructure, and
communications.
Organizational Charts
Purple Cloud Structure
Financial Statements

22. Purple Cloud Projected Income Statement*
* Notes:
The decrease in revenue from subscription software and the
increase in the revenue from the ABC product line reflects the
company's strategy to shift resources to ABC. The ABC product
line provides a better solution for the customer and a greater
return to the company.
Implementation of the company's strategy to shift resources to
the ABC product line also resulted in a decrease in the cost of
customer support and allowed hosting expenses to remain flat.
While product development remains important, the company's
acquisition strategy will be the primary avenue through which
new products will be integrated into the company's offerings.
The tax rate is subject to change. Current projections are that
the rate may drop to approximately 20%.
© 2018. Grand Canyon University. All Rights Reserved.
Purple Cloud
Income Statement
For Year Ending December 31, 20XX
Previous PeriodCurrent Period
Revenue
Subscription Software Revenue35,000,000$ 30,000,000$
ABC Product Line24,000,000 48,000,000$
Professional Services11,000,000 22,000,000$
Total Revenue$70,000,000$100,000,000
Cost of Goods
Customer Support$7,000,000$6,000,000
Hosting Expense$800,000$800,000
Professional Services$8,800,000$17,600,000
Total Cost of Goods Sold$16,600,000$24,400,000
Gross Profit$53,400,000$75,600,000
Gross Margin76%76%
Operating Expenses
Sales$18,000,000$25,000,000

23. Marketing$14,000,000$18,000,000
Product Development$1,200,000$2,000,000
General Administrative$3,000,000$3,862,000
Total Operating Expenses$36,200,000$48,862,000
Net Income$17,200,000$26,738,000
Tax @ 30%$5,160,000$8,021,400
Profit$12,040,000$18,716,600
Profit % / sales17.2%18.7%