GreenWood Resources Inc. was founded in 1998 by Jeff Nuss, a bio-resources engineer. It was a Portland, Oregon, USA-based investment and asset Management Company with a worldwide focus on high-yield and fast growing tree farms. In spite value proposition of its own global vision and quest of social responsibility and environmental stewardship, GreenWood had fought for almost 10 years to acquire significant investment funds until 2007-2008. Through constant effort, GreenWood constructed the crucial components (resources, individuals and business networks) for a successful endeavor despite the serious early fiscal constraints. GreenWood navigated and entered the Chinese market, deciding to create its China operation with only a fraction of the resources it needed.
Jeff seized the opportunity to organize a US$175 million private equity fund with the lumber investment community through his links to acquire a sizable poplar plantation in Oregon.
Notwithstanding the availability of the capital's accumulative knowledge of the Chinese marketplace and the investment screening and negotiation process in China turned out to be complicated due to the differences in company approaches and culturally embedded mindsets.
In June 2010, Jeff and his team were contemplating the pros and cons of two possible projects. They felt that GreenWood needed to continue carefully to ensure its criteria of sustainable business (regarding economic performance, social responsibility and environmental stewardship) were met in China but also realized the company should show some progress to its essential investor residing in China known as Oriental Timber Fund Limited. Jeff along with his senior team needed to decide whether they should recommend investing in one of both assignments.
PUBLICATION DATE: January 19, 2015 PRODUCT #: NA0310-PDF-ENG
This is just an excerpt. This case is about GLOBAL BUSINESS
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