Case Summary Golden Bear International in Mexico: Tepoztlán Golf Course A
In 1994 a Mexican development company, Grupo KS, planned to build the first golf academy, an 18-hole Jack Nicklaus Signature golf course in Mexico. With $500-million budget and designed by Jack Nicklaus' course management company, Golden Bear International, which provided technical recommendation which relied on the host country partners to collect information expertise on culture, legal issues, etc. The project received government and local community support, and it also faced the local community’s oppositions.
Golden Bear intended to carry out a long term vertical integration which included forming joint ventures with international partners to own and operate Jack Nicklaus Signature Golf Courses worldwide that rather than just selling consulting services. Besides Golden Bear International, Grupo KS’s project also depended on GTE data services, which had planned to build a multimillion dollar data services facility on the site. For the desirability as a vacation resort, the location proposed for the project located less than 50 miles south of Mexico City, and immediately northwest of the main pueblo of the municipality of Tepoztlán.
The corporate partner for the proposed EI Tepoztteco project included Grupo KS, the main development and investment partner, GTE Data Systems and Golden Bear International. Grupo KS was backed by prominent Mexican business people and by state and federal PRI politicians in Cuernavaca and Mexico City. The role of Golden Bear International is important for two reasons: the prestige attributed to Nicklaus courses would attract residential and recreational facilities; the location of the course that Golden Bear design was expert environmentally friendly course.
The project received strong state government support and local support. Some governor viewed the project as a potential development pole for the state, some viewed it as a model of...
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