Running Head: PROJECT

Senior Strategic Business Case Project

Grace Howrigon
Siena Heights University

Introduction
In China, golf was seen as a game played by the elite. In the early 1900s, few
investors were interested in building golf courses and focused more on building and
operating manufacturing businesses. The golf industry in China began to blossom with
the efforts of Dr. David Chu, founder and late chairman of Mission Hills. Dr. Chu
partnered with a few investors in the early 1990s to start the Mission Hills brand in
China. Although Dr. Chu did so with little experience in the golf business, his
conscientiousness of China's growing need for both high-quality and business-related
entertainment steered him in a direction of success. Mission Hills, which previously stood
as swampland grounds in a small fishing village in Shenzhen, were two among the first
golf courses in China. The key profit centers at Mission Hills were golf, food and
beverage, and the luxury hotel which was built to serve overnight guests from Hong
Kong. Dr. David Chu continued to monitor these areas throughout the take-off of his
business and upgrade them as needed. Chu was looking to expand both geographically
and horizontally into new service categories such as commercial and retail properties
development and golf management services, but still wanted to keep the key focus on the
customer service experience. In 1997, Dr. Chu set a goal for Mission Hills to become the
largest golf course facility in the world, which soon was accomplished.
Mission Statement
1. Customers - Recreational golfers in China, tourists, pro golfers, people in need of
housing (hotels), spa demographic.
2. Products or services - Golf resort, spa, conference and hotel facilities as well as
residential property development.
3. Markets - All resorts based in China thus far.
4. Technology - Technologically current, top of the line facilities, spas, hotels.

5. Concern for survival, growth, and profitability - Constant concern for growth and
profitability; have expanded Mission Hills from 2 to 12 resorts.
6. Philosophy - Quality customer service is the main philosophy; aim for five-star
service and do so through extensive Human Resources role-play training and
constant management and evaluation of staff.
7. Self-concept - Largest Golf Course in the World: always looking to expand
while doing so with five-star customer service mindset.
8. Concern for public image - Conscious concern for environment; careful to expand
onto non-arable land, mostly swamp and rocky hills, to reduce the golf courses
impact on local agriculture.
9. Concern for employees - Want employees to be top of the line in customer service
and assertive yet courteous with golf members. Constant training of employees to
prepare them to handle any situation thrown at them.
Vision Statement
Mission Hills, the worlds largest golf course, is committed to continuous growth
and expansion both geographically and horizontally while providing a top of the line golf
and hospitality experience and also maintaining their key focus of the customer service
experience.
Core Ideology
Core Values

Leadership
Working together
Customer service (5 Star Service)
Individual / collaborative growth in employees

Core Purpose - To provide top of the line entertainment and services to people in the golf
industry while continually expanding as the worlds largest golf resort.
Envisioned Future
BHAG - Become and maintain being the largest golf course facility in the world.
Vivid description - We will continue at our pace of rapid expansion so that we remain the
worlds largest golf course facility. We will expand our brand by creating a partnership
with the United States of America and placing a facility there. After we place a new
facility we will continue to expand geographically in order to receive more global
recognition. Our current offerings in golf, resort, spa, conference and hotel facilities, as
well as residential property development will continue to be updated and the best of the
best. Fifty years from now, our brand will be the most well known golf brand in the
world and customers will be eager to experience Mission Hills in all its glory.
Critical Milestones

1990s Survived the Asian Financial Crisis

1995 Chu began working across all major departments within Mission Hills:
guest relations department, food and beverages department, addressed different

requests from members and guests

1997 Chu's began to increase the scale of operations, aiming for Mission Hills

to become the world's largest golf and resort destination

1997 Employment in the low hundreds
2000 Employment to 4,000
2003 Survived the severe acute respiratory syndrome crisis
2007 Employment more than 7,000
2007 Mission Hills committed to developing a Hainan resort
2010 580,000 rounds were played in Mission Hills' Shenzhen and Dongguan
facilities

2011 Mission Hills had invested $1.5 billion into Shenzhen and Dongguan

facilities
2020 China would have more than 20 million golfers

Previous Strategies
1. Increased scale of operations; always expanding Diversification

Expansion of Mission Hills was carried out after consultation with local and

provincial government officials

Wanted to see the area develop leisure and entertainment services to support its

growing manufacturing base

Chus self-financed expansion of Mission Hills from two to 12 courses
Accredited by Guinness World Record as the worlds largest golf resort

2. Opportunity in living standards Conglomerate Diversification

Mission Hills developed and sold houses situated around the golf courses but the
project moved slowly due to the lack of financing

3. Infrastructure development Horizontal integration

Local government officials developed infrastructure; higher-quality roads leading to

Mission Hills
Understood the potential benefits to the region of hosting international events

4. Use of golf superstars Market penetration

Chus enlisted help of golf superstars across five continents to design exclusive course

layouts that would bear their names

Jack Nicklaus, Greg Norman, Annika Sorenstam, Nick Faldo, Vijay Singh, David
Duval, David Leadbetter, Jumbo Ozaki, Ernie Els, Jose Maria Olazabal, Pete Dye and
Zhang Lian Wei

5. Partnerships Market penetration

Mission Hills partnered with high-end foreign firms such as Lexus, Audi, Lenovo,

Cisco and Nike to launch or promote their products on site

Such sponsorship not only enabled promotion of the foreign firms brands and
products but also enabled cross-promotion for Mission Hills

Current Strategies
1. Collaborative working style Differentiation strategy

Younger Chu realized greater success could be achieved if each team member

contributed to the outcome

Realized team members with complementary skills had the ability to address issues

from different angles, which could reduce the risks of project failures
Focused on details and had a hands-on approach to projects, without being a micro-

manager
Wanted team members to continue to develop their skills and not remain only
functional experts

2. Five-star service Differentiation strategy

Employees need to be attentive to members needs, anticipate their requests and be

creative in how they tackle challenges that fall outside-the-box

Human Resources launched a series of ole play training for existing and new officers
and supervisors to help them both to deal with difficult situations and to show
initiative in solving problems

3. Promote and develop golf in China Market development

Mission Hills held numerous clinics for junior golfers and an annual Golfathon that

attracted 5,000 players and their families

All of these events were usually covered by national and international media
Resulting publicity from these tournaments led to an increase in demand for Mission
Hills golf memberships and real estate

SWOT Analysis
Strengths

Experienced Staff
Well trained (five-star) staff in customer service
Hosted more than 100 international events
Golf superstars enlisted with Mission Hills to aid in
designed courses fitting for respected names in golf
world
Partnered with high-end foreign firms such as Lexus,
Audi, Lenovo, Cisco and Nike
Leadership
Collaborative working environment
Employees always held accountable
Higher quality roads leading to Mission Hills
Accredited as worlds largest golf course
Human Resources launch of role-play training for
current and new employees
Resulting publicity from international tournaments
led to increase in demand for golf memberships
Offerings in golf, resort, spa, conference and hotel
facilities as well as residential property development
Turnover estimated at 1.7 percent per month at all
levels; lower than the industry average
Threats

Weaknesses

Lack of assertive yet courteous employees

Staffing bilingual employees
Numerous investments into facilities
Consistent and effective management of employees
at all resorts
Rapid expansion - could fold
Attracting sufficient members of entry staff with
right mix of attitude and potential to deliver five-star
service

Opportunities

Game played by the elite, moneyed classes

Product/Brand differentiation
International chains entering market
Affordable entertainment, housing, memberships
Weather seasonal sport

Non arable land

Living standard rising
Potential sites in China
Significant untapped demand - China had
approximately 4 million golfers
Social game
Tourism

IFE Internal Factor Evaluation

Key Internal Factors
Internal Strengths
1. Partnered with high-end foreign
firms such as Lexus, Audi,
Lenovo, Cisco and Nike
2. Well trained (five-star) staff in
customer service
3. Human Resources launch of
role-play training for current and
new employees
4. Hosted more than 100
international events
5. Accredited as worlds largest
golf course
6. Offerings in golf, resort, spa,
conference and hotel facilities as
well as residential property
development
7. Turnover estimated at 1.7
percent per month at all levels;
lower than the industry average
8. Collaborative working
environment
9. Golf superstars enlisted with
Mission Hills to aid in designed
courses fitting for respected names

Weight

Rating

.10

Weighted Score
.30

3
.15

.60
4

.05

.20
4

.05

.15
3

.05

.15
3

.05

.15
3

.05

.20
4

.05

.15
3

.05

.15
3

in golf world
10. Leadership

Internal Weaknesses
1. Numerous investments into
facilities
2. Attracting entry staff with right
mix of attitude and potential to
deliver five-star service
3. Staffing bilingual employees
4. Assertive yet courteous
employees
5. Consistent and effective
management at all resorts
TOTAL

.05

.15

.10

.10

.10

.10

.05
.05

2
2

.10
.10

.05

.05

1.00

2.4

EFE External Factor Evaluation

Key External Factors

Opportunities
1. Living standard rising
2. Non-arable land
3. Potential sites in China
4. Tourism
5. Three Ps profit, people and
planet
6. Social game
7. Significant untapped demand
4 million golfers in China
Threats
1. Game played by the elite,
moneyed classes
2. Weather
3. Product differentiation
4. Rapid expansion could fold
5. Affordable entertainment,
housing, memberships
TOTAL

Weight

Rating

Weighted Score

.10
.05
.05
.05
.10

4
3
3
3
4

.40
.15
.15
.15
.40

.05
.10

3
3

.15
.30

.15

.30

.05
.10
.10
.10

3
4
2
3

.15
.40
.20
.30

1.00

3.05

Competitive Analysis
Potential development of substitute products Yes there are substitute products; potential substitutes include cheaper, more affordable
golf memberships, recreational golf, put putt golf, and driving ranges.
Potential entry of new competition Barriers are high for new entry into the golf industry due to finances necessary to start a
golf company, established clientele, established distributors, and selling memberships.
Bargaining power of suppliers Suppliers have high power because there in the game of golf there are few big time
suppliers: Nike, Callaway, Titleist, and Dunlop to name a few. Due to the low number of
quality suppliers, the power lies with them. In order to play the game you need the
supplies.

Bargaining power of consumers High power because they have options; the switching cost for consumers is low because
when it comes to potential golf sites the options are vast, giving the power to the
consumer.
Rivalry among competing firms The rivalry in the golf industry is intense. There are thousands upon thousands of
different golf firms all competing for total memberships annually and revenue.

TOWS Matrix
Opportunity
1. O1 - Living standard
rising
2. O2 - Social game
3. O3 - Significant
untapped demand
4. O4 - Tourism

Strengths
1.
S1 - Five-star staff in customer
service
2.
S2 - Offerings in golf resort, spa,
conference and hotel facilities as well as
residential property development
3.
S3 - Hosted more than 100
international events
4.
S4 - Accredited as worlds largest
golf course

1. (S2, O3) - "First

timer package" - for the
untapped demand/golfers
in China, offer a package
with golf, spa, and hotel all
incorporated at a
discounted price - Market
Penetration
2. (S3, O4) "International Day" - invite
pro golfers from all around
the world for a golf outing.
The winner gets free
membership to Mission
Hills for a year;

Threats
1. T1 - Game played by the elite,
moneyed classes
2. T2 - Affordable entertainment,
housing, memberships
3. T3 - International chains entering
market
4. T4 - Product/brand differentiation

1.
(S4, T4) - "Tour the world's largest
golf course" - use it to advantage; take
tourists on tours through all the offerings at
Mission Hill's - Concentric Diversification
2.
(S2, T2) - "We Do it Better"
campaign; series of commercials that airs
competing golf courses and Mission Hills
and shows the available packages and why
Mission Hills is superior - Market
Penetration

international media
coverage - Market
Penetration
Weaknesses
1. W1 - Staffing bilingual employees
2. W2 - Numerous investments into
facilities
3. W3 - Rapid expansion (could fold,
hard to sustain)
4. W4 - Lack of assertive yet
courteous employees

1.
(W1, O3) - Hold a
day of interviews for
bilingual people looking
for work; walk them
through role-play training
as well so they know how
to handle situations in both
languages - Horizontal
Diversification
2.
(W2, 04) - Due to
living standard rising more
people need homes - make
more affordable Concentric Diversification

1.
(W2, T3) - Branch out even further;
put a course in United States and other
countries - Market Development
2
(W3, T4) - Expand globally;
differentiate product even further. Aim to
put a facility on every continent. - Market
Development

Recommended Strategy
I believe Mission Hills as an organization possesses many quality strengths that
will allow them to sustain their growth and even further in their growth. In order to
continue to develop as an organization I believe Mission Hills needs to geographically
expand into the United States to get even more International recognition. I believe all of
the most crucial strengths are in tact: brand differentiation, numerous offerings of golf
resort, spa, and hotel facilities, five-star customer service is among the top core value,
and it is credited as the largest golf course in the world. In China they are doing
excellent; now it's time to geographically expand.
Implementation
Chu should define a new grand strategy of continuing Mission Hills pace of rapid
expansion internationally because his organization has the capacity to do so successfully;
this capacity maintained by confident leadership, exponential financial advance and

consumer conscientiousness. In Chus consideration of his companys rapid expansion,

factors which are individual and crucial in nature must be evaluated. These factors
include, but are not limited to: structure, management, finances, legal, systems,
equipment and marketing.
Chu has placed his company on the path of continued success. He has executed
the establishment of his brand. He has served his purpose. In order to progress, he should
introduce his brand to the rest of the world, beginning with the development of a
partnership between Mission Hill and the United States of America. Leadership within
Chus company is exemplified constantly, crucial to his success on a day to day basis.
Employees work to represent 5 Star Quality throughout the resorts and efforts to do so
include the hiring of individuals with attitudes which are both assertive and courteous,
participation in mandatory role-play within the Human Resources department, and the
management and monitoring of all employees at all resorts. Leadership is also expressed
through the Chus consistent search for places to explore, to expand. They work with an
attitude that is never satisfied. They are consistently touring the land in China to find new
geographic locations to place a new resort. Due to these reasons among many more, I
believe they are able to follow through with the strategic decision and tour the United
States soil to place a resort there and get global recognition.
Chu prioritizes his companys ability to expand without compromising focus on
the customer service experience. Moreover, there are risks to Chus business that he must
consider. The competence of Mission Hills is not what it can do, rather what it can do
particularly well. It is not sensible nor beneficial to expand his organization
internationally if the overall quality of his product will be compromised.

Planning
In order to break down the planning that will go into Mission Hill's transition into
the United States, one must consider the companys priorities, the focus of the company's
energy and resources, the types of meetings that must be arranged and the people who
will participate, and the guarantee that employees are working toward common goals.
The company needs to focus their planning around the cultural environment
created at the resorts in China. In order to create a genuine representation of their
company they should attempt to mirror the original. Customer service must remain a top
priority as well as hiring, since one of the tools most crucial in the implementation of
Mission Hill's five star environment is the selection of employees. Other important tools
include the acquisition of membership totals and the marketing of the new facility to the
surrounding and extended areas.
In the early stages when the new facility opens, it is important that daily meetings
be conducted between management teams in order to ensure all employees and all
operations are performing as expected. This routine will monitor the transition
department-wide and allow management to oversee any existing complications. Weekly
meetings between the management team and all employees will be mandatory. The
purpose of these meetings is to illustrate the expectation of five star service. They will
also serve as educational forums, keeping employees in check and encouraging them to
work more creatively, as all members of the Mission Hills team must, in their
presentation, represent their company.
Organizational Structure
Organizational structure establishes the hierarchy of who has authority and who

reports to who in an organization; it determines how the roles and responsibilities are
designated throughout a company and how information flows between the different levels
of management. At the new facility in the United States a hierarchy will need to be
established similar to that of Mission Hills in China.
Leadership is central to Mission Hill's success. In order to mimic the original
organizational structure of Mission Hills, management must be led boldly, by some one
similar to Chu. This leader will oversee and ultimately handle all staff and company
operations which include the instruction and training of all employees. Employee training
will include role-play and introduction to a professional code of conduct. Further
employee training will be left up to the discretion of the leader.
A team must be hired under select standards to manage the development and
implementation of the course in the states. These individuals will be brought onto staff to,
essentially, implement Chu's plan effectively and smoothly. However, their work with
Mission Hills will not be finished once the plan is in action; this team will stand as the
highest branch in management among those that work on site in the USA.
Management
In implementing this strategic decision, the main concern involves Mission Hill's
ability to cater to the expansion of the company into the USA with the delivery and
permanence of the already established service standards. Doing so would require the
creative and effective transfer of skills and experience from the Mission Hills staff in
China to the Mission Hills staff in the USA. The reliability and differentiation of current
members of the Mission Hills staff answer to this concern with confidence.
Mission Hills is known for their boldness in management. Through the dedication

and resilience of the Chus, top-level management has been both the focus and the
product since day one. In acquiring the type of management necessary for the new course
in the United States, qualities and intangibles belonging to the individuals currently
providing quality management at the Mission Hills resorts must be evaluated and sought
after. If the key to success at Mission Hills in China is found in the management
department, perhaps the USA's key might be found in the same place. Leadership,
organization, distribution of resources, and control remain among the management
department's finest qualities. Whenever expressed, these qualities will be helpful and
necessary to a smooth transition.
Together, the Chu's consistently exemplify leadership among their co-workers,
consumers, and others within their organization. Young Chu has excelled, specifically,
due to his particular attention to detail and sharp focus on customer service. Chu was
aware that membership at Mission Hills was thought of as a mark of success and that
guests, who were often entertaining business clients, preferred to be greeted by name.
And so, they were. This is what separates Mission Hills from the competition. This
establishes the gap between the fourth and the fifth star. Small efforts that make big
differences must be given focus in the search for the leader chosen to govern the
company in the USA. Chu has worked to develop a clientele who feel appreciated as
members of the resort and the Mission Hills community. Chu will continue working on
the development of a clientele of similar nature within the USA.
Chu and the senior management team worked to ensure that the Mission Hills
team could help employees deliver exceptional service and continue to do so through
expansion of the company. Chu would be hesitant to allow his company such rapid

expansion if the quality and execution of his plans were to be compromised in result. In
order to adhere to the company's current expectations, Chu and Mission Hill's Human
Resources department created and implemented specific control methods including the
launch of a series of role-play training for both new and existing officers, as well as
supervisors. The purpose of this training is to encourage initiative, creativity and patience
among situations in which they are required. This control method allows for the
employees to be well accustomed to not only meeting members needs but anticipating
their requests. This method will be practiced in the Mission Hills USA.
Another control method is consisted of staffing Chu's facility. Both Chus, father
and son, will be involved in and focused on this procedure because of its requirement for
a clear and professional representation of Mission Hills. Employees must be skilled in
handling customer affairs, a balance of assertive and courteous. It is preferred and, in
some cases, expected that the employees are bilingual. This intention is most important
during this transition because it is the first step toward worldwide expansion. The Chus
must be actively involved in the hiring process in order to establish the same philosophies
and expectations within each individual team member in the United States as those
working at the resorts in China.
All of the company's strengths, the boldness they have incorporated within their
management will be transferred to the new facility in the United States so that it might
mirror the quality, culture, environment and, hopefully, success of the current
establishments. The Chus have worked to create and build their company in China and in
order to recreate it in the USA, the transfer must be made, with their involvement, clearly
and directly.

Marketing
Marketing of the new facility in the United States will require an extensive effort
from skilled Mission Hills teams. This effort will be driven by a number of prerequisites.
Mission Hills marketing team must partner with local and nationwide magazines, radios,
and advertisements to establish the companys name among new grounds. The team must
present a series of television commercials, which highlights Mission Hills 12 facilities in
China. These commercials will introduce the company that is Mission Hills and its
expansion to the United States and express Mission Hills reason for doing so; and it will
accentuate the originality and affordability of the product that sets it apart from its
competitors.
The new facility will work to mirror the marketing strategies utilized by Mission
Hills in China. Mission Hills marketing department has gained both respect and trust
throughout the company because of its consistent participation in the promotion and
development of golf within China. Mission Hills has hosted and staffed numerous clinics
for junior golfers to attend. These clinics are held to train golfers how to develop, express
and improve their game. The company also hosts an annual Golfathon, which entertains
approximately 5,000 players, all of which are covered by media. In the past, Mission
Hills has partnered with high-end foreign firms such as Lexus, Audi, Lenovo, Cisco and
Nike in order to promote the companys product (Ivey, p. 8). The resulting publicity from
these promotional efforts have led to an increase in demand for Mission Hills
memberships and real estate. This same creative marketing strategy must be implemented
into the new facility in the United States.

A unique feature of Mission Hills marketing strategy is one of simplicity and

significance: word of mouth. The Mission Hills team has marketed their product through
the point of recognition and to one of familiarity. The marketing department is fluent with
consumer-to-consumer recommendations, referrals, oral traditions and stories. This is the
kind of consumer environment the Chus have created; one that is exemplified more as a
culture which trickles throughout all of Chinas golf industry. It is crucial that this
practice be translated and implemented in the United States facility.
Legal
Before Mission Hills expansion can begin, its legal transition into America must
be analyzed and approved through the United States Citizenship and Immigration
Services. This process will include the completion of L-1 Classification, I-129 and
Petition for a Nonimmigrant Worker. Mission Hills will need to compile a team of legal
intellectuals who will be held responsible for overcoming complications dealing with
international tax law, visas and bank accounts. Together, these individuals will oversee
the companys transition in its entirety, all operations, and intervene if/when necessary.
Once set in place, the new facility will hold to particular standards that must be
met and maintained. Greens will need updating, distance between holes must remain
consistent and the grass will require daily attention. Signs and other means of notification
and instruction must be placed appropriately around the course. This signage, which will
include messages like caution and no trespassing, will protect clientele from risks
and Mission Hills from lawsuits. Mission Hills legal team will be held responsible for
upholding these standards.
7 Ss

In order to carry through with this implementation into the United States we need
to take a look at the 7 Ss: structure, strategy, systems, style, skills, staff, and
superordinate goals; most specifically systems (Framework, p. 309). The Systems at
the new facility need to be a main focus of the implementation phase. Systems take a
look at such things as budgeting, marketing, hiring and training. These are the things that
make the organization go on a day by day, year by year basis. It is crucial at the new
facility to make all of these things an emphasis for the organization. Budgeting needs to
be paid attention to as every penny must be valued and accounted for due to the extensive
investments required to open a new facility. Marketing will be done through utilizing
different types of media, television, and any other type of advertisements. The new
facility will utilize partnerships with professional golfers who reflect positively on the
organization; this partnership will allow for further marketing efforts to be even greater
with big time names associating with the brand. Hiring needs to be an emphasis in this
process as the new employees are a direct reflection of the resorts in China. Chu will be
directly involved with this process searching for employees with the right attitude, work
ethic, and ability to speak English and a second language. Training of these employees is
also important; how they are trained is how they will perform. Programs need to be in
place to consistently manage and develop the staff members to be the best they can be in
representing the organization.
Finances
By 1997, the Chus began to increase the scale of operations, aiming for Mission
Hills to become the worlds largest golf and resort destination. The Chus self-financed
the expansion of Mission Hills from two to twelve courses. With the guidance of the

Chus, implementing a new facility in the United States will be done with ease. This is
possible because of the experience and knowledge acquired from the Chus over the
years, but also in part due to the fact that building golf courses in the United States is
cheaper than in China; this is because of the expenses needed with importing equipment,
tools and expertise into China.
In a recent report by the Professional Golfers Association (PGA), the U.S. golf
industry was valued at $75 billion employing 2.2 million people working for golf
courses, golf equipment manufacturers, golf education and training services, and in golf
media (PGA, p. 3). Typically, golf courses in the United States are located on the
outskirts of a town where sufficient land is available to put at least 18 holes over 150
acres. Premium courses, often what professional golfers or members-only play on, are
located close to bodies of water or on hilly terrain. Building a golf course in the states
requires well-suited land, typically costing between $2,000 and $10,000 per acre (PGA,
p. 3). In the United States, an average 18-hole public golf course generates around
$992,000 in revenues alone from golf off of fees ranging from $15 to $150 for 18 holes
(PGA, p. 4).
The average price to build a golf course in the United States amounts to a build
total of around $2,218,000 (PGA, p. 3). A mimalist course runs for around $521,000,
while an upscale course runs for about $5,824,000 to build (PGA, p. 3). This includes all
of the construction items involved in the process. Construction costs for the golf courses
in Shenzhen and Dongguan, however, were slightly different; a regular 18-hole course at
Shenzhen and Dongguan was $15.7 million per course, and a smaller par 3 course cost

$7.8 million to build. These figures provide that it will be more financially feasible to
create a course in the United States than it is in China altogether.
Strategy Review and Evaluation
Throughout the implementation of this strategic decision, the company must pay
focused attention to the evaluation of its plans. Strategy evaluation fills in the blanks;
gives us answers in determining the appropriateness of the companys objectives, major
plans and policies. The results obtained from the strategy will either confirm or refute all
of the chosen decisions initial assumptions. Strategy review and evaluation are crucial
not only to encourage growth within the company, but also to encourage the sustenance
of growth within the company. I have deemed this decision possible and reasonable
because it fits Rumelts criteria outlined in his article Evaluating Business Strategy. The
criteria includes consistency, consonance, advantage and feasibility. Rumelt claims that
these are the key functions necessary for the businesss survival.
Consistency within the company is obvious; its goals and policies coincide.
Mission Hills teams work together toward a common goal: worldwide service and
worldwide success.
Consonance, according to Rumelt, means the strategy must represent an adaptive
response to the external environment and to the critical changes occurring within it. The
United States free market economy is one of the worlds most prized. With a brand
accompanied by its service as unique and quality as Mission Hills, the Chus will find
value in the participation in Americas market.
This strategy is feasible because the same guidelines, values and practices that
brought success to Mission Hills in China will be implemented once more. Differences in

implementation will be found in (but not limited to) areas of geographic location,
consumer culture and legal matters. These differences will not pose as threats to the
prosperity of Mission Hills.
According to Rumelt, having a competitive advantage comes with the creation of
it in the area of activity in the external environment. In the case of Mission Hills, the
company will create a worldwide competitive advantage within the golf industry by
establishing locations on two different continents. The new facility in the United States
will be held responsible for the maintenance of this advantage. If implemented in a
fashion mirrored to that of Chinas facility, the new location will prosper with the same
benefits. With the spread of superior skills and knowledge will come the spread of a
superior company. With a successful transfer of Chus experience, knowledge and
guidance will come a successful transfer of Mission Hills. In order to determine whether
or not Mission Hills competitive advantage is being maintained, set control methods
must be evaluated. This evaluation can be measured by keeping a record of memberships.
Every six months a hand-picked team will review and record the number of recently (six
months prior) purchased or renewed memberships. These numbers will be compared to
the prior. From there, The Team will analyze its companys progression or decline and act
accordingly. The Team will be held responsible for keeping the organizations priorities in
order. If The Team finds weaknesses in any part of the facility or its nature, it will work to
strengthen those weaknesses in a timely manner. The Team will also be held responsible
for making investments, no matter how extensive, which are found necessary for the
development of the new facility and its profit.

References
Mark, K. (2012). Mission Hills: Leading the China Golf Industry. Richard Ivey School of
Business, W12791.
Waternman, R. (1980). The 7-S Framework. Dealing With Structure and Systems.
Rumelt, R. (1998). Evaluating Business Strategy. Readings in the Strategy Process, 3rd
edition.