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GREENWOOD RESOURCES: A GLOBAL SUSTAINABLE VENTURE 2
GreenWood’s decided to enter China in 2005 because of the limited scale of opportunity
in the US. As such, there was a need to seek for opportunities in the other parts of the world.
China became the most preferred as it had potential in a fast-growing, high-yield plantations and
a highly promising poplar tree farming, which was crucial for the growth of GreenWood.
The entry of GreenWood in China took place in two parts. The first method was through
strategic alliance where the company collaborated with local tree growing companies. This entry
GreenWood. However, the disadvantage is the issue of sharing management with a new group
that is likely to create challenges of integration and management styles. The second entry mode
is a wholly owned subsidiary, which is advantageous in the sense that GreenWood was expected
to be in full control of the company's management. However, the disadvantage can be on the
Taking more than five years investigating the viability of entering China may appear to
be costly, as more time and resources had to be used throughout the period. However, business
with long-term strategy is expected to take time researching before rushing into investing in a
different market. It is highly likely that the company managed to make the right decision after
The Luxi and Dongji project is desirable from an economic perspective as it was
expected to accrue higher average return higher than that of the investment in the US.
Additionally, the project is anticipated to enhance the required ecological environment in China.
The Luxi and Dongji project promotes social and economic development in the individual local
community. Consequently, Jeff and his management should consider pursuing the project.