Jabwood International

Running Head: JABWOOD INTERNATIONAL INTERNATIONAL CASE STUDY

Jabwood Internationa Ca!e Stud" #re$ared B": Sub%itted To: To: Cour!e Tite: Uni&er!it": A$ri '() *+',

JABWOOD INTERNATIONAL CASE STUDY Answer to the Question # 1

In %" o$inion) -a&ing .on!idered t-e ad&antage! and di!ad&antage! o/ ea.- entr") toget-er wit- Jabwood0! ob1e.ti&e!) %oti&ation and re!our.e! a&aiabe2 e3$orting wi be t-e  be!t o$tion /or it to e3$and to t-e new %ar4et5 Wit- a ow inten!it" o/ in&e!t%ent and -ig.ontro) it i! 1u!t w-at  Jabwood   i! oo4ing /or w-en entering t-e new %ar4et5 6oreo&er) -a&ing t-e abiit" to !-i$ goba order! a%o!t i%%ediate")

 Jabwood 

.an e&erage on t-i! .ore

.o%$eten." to !er&e t-e %ar4et a! !oon a! it enter!5 A! a..ording to #EST Ana"!i! o/ C-ina we /ound t-at t-ere i! Co%%uni!t S"!te% entren.-ed in t-e C-ine!e .uture a!o C-ine!e aw doe! not guarantee re7tran!/er o/ .a$ita) annua tran!/er o/ di&idend!) and tran!/er o/ .a$ita in .a!e o/ ter%ination5 C-ina -a! ra$id" e3$anding5 8or !-ort ter% &iew about C-ina t-e o$eration! !-oud bro4e e3.u!i&it" witTANITA e//e.t! o$$ortunit" and t-e %anageria !tru.ture wi -a&e to be re&iewed5 T-i! e3$an!ion wi $ro&e di//i.ut in t-e !-ort ter% w-ie Jabwood /a.e! t-e e//e.t! o/ a dro$ in !-ort ter% &iew5 8or a ong ter% &iew it !-oud e3$and in order to utii!e t-e .ontinuing growt- b" .o%$ro%i!ing on t-eir .urrent %anageria !tru.ture5

In order to in.rea!e re&enue and !ae!) Jabwood Internationa -a! %an" o$tion!5 In %" o$inion) t-e on" /ea!ibe o$tion! woud in.ude e3$anding t-eir bu!ine!! into two .ountrie!: Saudi Arabia and C-ina5

E3$anding into t-e Saudi Arabia %ar4et i! a &er" enti.ing !oution /or %an " rea!on!5 Saudi Arabia doe! not -a&e it! own wood !u$$" and t-ere/ore reie! -ea&i" on ot-er .ountrie! /or t-i! need5 Jabwood -a! -ad o$eration! in Saudi Arabia in t-e $a!t and i! aware o/ t-e .uture) 1

JABWOOD INTERNATIONAL CASE STUDY  bu!ine!! $ra.ti.e!) and $rodu.t need!5 Howe&er) t-e Saudi %ar4et i! t-e bigge!t %ar4et in t-e 6idde Ea!t /or wood $rodu.t! and t-ere/ore i! e3tre%e" .o %$etiti&e5

E3$anding o$eration! to C-ina -a! it! $er4!5 C-ina -a! a &er" arge $o$uation and i! one o/ t-e bigge!t .on!tru.tion %ar4et! in t-e word5 It i! a!o on e o/ t-e /ew .ountrie! to !ur&i&e t-e goba /inan.ia .ri!i!5 At-oug-) %an" C-ine!e are -e!itant to buid wit- wood be.au!e t-e" do not beie&e it wi !ur&i&e di!a!ter5 It woud a!o be di//i.ut /or Jabwood to !u..eed in t-i! %ar4et be.au!e t-e" do not -a&e an" e3$erien.e in t-e C-ine!e bu!ine!! $ra.ti.e!) reguation!) or .utura .u!to%!5

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JABWOOD INTERNATIONAL CASE STUDY Answer to the Question # 2

Jabwood Internationa i! e3$erien.ing a downward trend in re&enue and !ae! and %a" .ontinue t-i! trend i/ .-ange i! not %ade i%%ediate"5 Due to t-e /inan.ia .ri!i! and e.ono%i. downturn a.ro!! t-e word) Lebanon -a! !een an a%o!t /at $er/or%an.e in t-e rea e!tate %ar4et dri&ing down t-e $ri.e! o/ raw %ateria! u!ed in .on!tru.tion !u.- a! wood5 Ad&an.e! in tran!$ortation and te.-noog" -a&e ed to in.rea!ed .o%$etition in t-e ti%ber indu!tr"5

A !ub!idiar" o/ Jabwood ba!ed out o/ Saudi Arabia wa! .o!ed /or non7bu!ine!! reated %atter!5 T-i! !ub!idiar") be/ore .o!ure) .ontributed a%o!t -a/ o/ Jabwood0! !ae!5 Jabwood i! a arge .o%$an" t-at -a! a &er" !tri.t and i%iting bu!ine!! !tru.ture5 Jabwood0! $-"!i.a $re!en.e re%ain! !oe" in Lebanon5 Jabwood reie! -ea&i" on one %a1or !u$$ier /or a$$ro3i%ate" 9+ to (+ $er.ent o/ it! re&enue5 T-i! !u$$ier intend! to o//er t-e o$$ortunit" to !e to ot-er wood w-oe!aer!) ei%inating Jabwood0! e3.u!i&it"5

Recommendation and Action Steps

At t-i! ti%e) Jabwood Internationa !-oud e3$and and $enetrate t-e Saudi Arabian %ar4et on"5 T-e C-ine!e %ar4et woud be a great o$$ortunit" /or Jabwood to grow) but not an o$tion t-at i! /ea!ibe at t-i! ti%e5 T-e /inan.ia return /or !etting u$ in C-ina woud not be enoug- to .ounterbaan.e t-e e3$en!e it woud ta4e Jabwood to e!tabi!- a re$re!entati&e o//i.e or t-e ti%e in&e!t%ent reuired5 8or Jabwood to be !u..e!!/u in t-e C-ine!e %ar4et) it woud reuire !etting u$ a re$re!entati&e o//i.e in Hong ;ong5 Howe&er) Jabwood on" -a! two !e.ond7 generation %e%ber! a&aiabe wit- t-e e3$erti!e and t-e 4nowedge to ta4e o&er new %anage%ent $o!ition!5 Jabwood -a! i%ited t-eir !e&e! b" on" aowing /a%i" %e%ber! to

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JABWOOD INTERNATIONAL CASE STUDY ta4e on %anageria $o!ition!5 I/ Jabwood wa! abe to .o%%it to a %ore ong7ter% !oution) I woud !ugge!t training u$ non7/a%i" %anage%ent5 Howe&er) Jabwood i! in need o/ an i%%ediate !oution) w-i.- i! w-" I !ugge!t e3$anding in Saudi Arabia5

Jabwood i! aread" /a%iiar wit- Saudi Arabia0! .uture) bu!ine!! $ra.ti.e!) and $rodu.t de%and5 Jabwood i! aware o/ t-e re&enue $otentia a! t-eir Saudi !ub!idiar" u!ed to .o ntribute a%o!t -a/ o/ t-eir !ae!5 Jabwood -a! t-e re!our.e! to !u$$ " Saudi Arabia wit- a arge $ortion o/ t-eir reuired wood5 Saudi Arabia -a! +< /ore!t area and t-ere/ore %u!t i%$ort wood5 Ha&ing aread" done bu!ine!! wit- Jabwood) I .oud !ee -ow Saudi Arabia woud aread" -a&e t-e .on/iden.e in Jabwood to be a great !u$$ier5

8ro% e3-ibit = in t-e .a!e !tud") Jabwood woud !ee -ig-er return b " $enetrating t-e Saudi Arabia %ar4et be.au!e it i! a /a%iiar %ar4et5 Saudi Arabia a!o .urrent" -a ! an i%$ort ta3 e3e%$tion on $ro.e!!ed wood $rodu.t!) w-i.- i! w-at Jabwood woud be i%$orting in Saudi Arabia5 T-e ti%e to i%$ort $rodu.t into Saudi Arabia i! a%o!t a wee4 e!! t-at C-ina5 In t-e !a%e regard) it on" ta4e! , da"! to !tart a bu!ine!! in Saudi Arabia) a! o$$o!ed to >= da"! in C-ina5

T-e /ir!t !te$ to $enetrating t-e Saudi Arabia %ar4et woud be to regi!ter a !ub!idiar" dire.t" in Saudi Arabia5 A! t-e .a!e !tud" !tate!) t-e indire.t bu!ine!! %ode did not !ee% to wor45 On.e e!tabi!-ed) t-e two a&aiabe /a%i" %e%ber! t-at -a&e t-e e3$erti!e and 4nowedge to ta4e o&er new $o!ition! !-oud begin a!!u%ing %anageria roe! in Jabwood0! .urrent o.ation in Lebanon5 T-ere/ore) e3$erien.ed %anage%ent .oud be tran!/erred to t-e o.ation in Saudi Arabia to e!tabi!- t-eir .u!to%er ba!i!5 T-i! %anage%ent !-oud !.-edue

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JABWOOD INTERNATIONAL CASE STUDY %eeting! wit- a .urrent and /or%er .u!to%er! o.ated in Saudi Arabia to di!.u!! a $otentia reation!-i$!5

A bu!ine!! out o/ t-e Saudi Arabia !ub!idiar" !-oud be .o!e" %onitored and e&auated on a .on!tant ba!i! to /ore!ee an" i!!ue! in rai!ing !ae! to an a..e$tabe e&e5 A..e$tabe !ae! e&e! woud -a&e to at ea!t %at.- t-e reuired !ae! &ou%e /or t-e . ontra.t Jabwood -a! /or e3.u!i&it" o/ TANITA !ae! in t-e 6idde Ea!t5 On.e !ae! &ou%e i! -igenoug-) Jabwood !-oud %eet wit- t-eir %ain wood !u$$ier /or TANITA and re7e!tabi!e3.u!i&it"5

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JABWOOD INTERNATIONAL CASE STUDY References

E.ono%i. Indi.ator! ?*+'*@) In&e!t%ent De&eo$%ent Aut-orit" o/ Lebanon) #re!iden." o/ t-e Coun.i o/ 6ini!ter!) www5ida5.o%5b) a..e!!ed Augu!t ) *+'*5 Re$ubi. o/ Lebanon) 6ini!tr" o/ E.ono%" and Trade) uarter" E.ono%i. Buetin) *+'') www5e.ono%"5go&5b) a..e!!ed Augu!t ) *+'*5 Internationa 8inan.e Cor$oration) Doing Bu!ine!!) T-e Word Ban4) *+'+) www5doingbu!ine!!5orgdatae3$oreto$i.!$a"ing7ta3e!) a..e!!ed Augu!t =) *+'*5 65 ;i!irwani ?*+'*@) T-e Re-abiitation and Re.on!tru.tion o/ Lebanon) Re%a4ing t-e 6idde Ea!t) -tt$:dd.5aub5edu5b) a..e!!ed Augu!t '+) *+'*5 Lebanon) Word De&eo$%ent Indi.ator!) *+'') -tt$:data5wordban45org) a..e!!ed Ju" *,) *+'*5

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