Global Business Strategy Plan2

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  • Most Global businesses focus on selling to the world’s wealthiest 14% of the world’s population; the developed world. But these markets are oversaturated, over competitive, and aging. What about the other 86/%? This 86% represents the future of global commerce. The 86% presents rich opportunities for construction management services that have imagination and creativity. By adapting to different cultures, rugged environments and demanding price performance targets our company can develop innovative concepts for construction management in developing markets. One such opportunity exists in Iraq.
  • Global Business Strategy Plan2

    1. 1. Global Business Strategy Plan Rebuilding Iraq and the Implementation of the Modern Construction Service Business Model into International Markets Created and Presented by Michael A. Vargas
    2. 2. Map and Flag of Iraq
    3. 3. Executive Summary <ul><li>Implement our existing business model into Iraq for financial opportunities which will provide instant returns with regards to an underserved market. </li></ul><ul><li>Current environment in Iraq has created opportunities for the construction sector to rebuild infrastructure and other basic structures. </li></ul>
    4. 4. Executive Summary <ul><li>Coordinating and furnishing all expatriate and local labor, materials, equipment, tools, transportation, supplies, and other incidentals. </li></ul><ul><li>Performance of all tasks necessary for the successful completion of a construction project. </li></ul>
    5. 5. Components to Consider Prior to Implementation <ul><li>Country Factors </li></ul><ul><li>Competition and Market Opportunity </li></ul><ul><li>SWOT Analysis </li></ul><ul><li>Business Objectives </li></ul><ul><li>Strategic Thrust </li></ul><ul><li>Tactics </li></ul><ul><li>Measurement of Results </li></ul>
    6. 6. Country Factors: Economic <ul><li>Parliamentary Democracy -a political system in which the legislature (parliament) selects the government - a prime minister, premier, or chancellor along with the cabinet ministers - according to party strength as expressed in elections. </li></ul>
    7. 8. Country Factors: Economic continued <ul><li>Iraq's economy is dominated by the oil sector. </li></ul><ul><li>Despite political uncertainty, Iraq is making some progress in building the institutions needed to implement economic policy. </li></ul>
    8. 10. Country Factors: Economic continued <ul><li>The Iraqi Central Bank has been successful in controlling inflation through appreciation of the dinar. </li></ul><ul><li>Looting, insurgent attacks, and sabotage have undermined economy rebuilding efforts. </li></ul>
    9. 11. Country Factors: Major cultural issues: <ul><li>Language: Arabic, Kurdish, Assyrian, Armenian </li></ul><ul><li>Religion: Muslim 97%, Christian or other 3% </li></ul><ul><li>Literacy: 74.1% </li></ul><ul><li>Political: Insurgency against the Government of Iraq and Coalition forces is primarily concentrated in Baghdad and in areas north, northeast, and west of the capital. </li></ul>
    10. 12. Country Factors: Cultural <ul><li>Geert Hofstede Cultural Dimensions </li></ul><ul><li>Large Power Distance (PDI) (80) </li></ul><ul><li>Uncertainty Avoidance (UAI) (68) </li></ul><ul><li>The Masculinity index, the third highest Hofstede Dimension is 52 </li></ul><ul><li>The lowest Hofstede Dimension for Iraq is the Individualism (IDV) ranking at 38 </li></ul><ul><li>Long-Term Orientation-long-term commitment to the member 'group' . </li></ul>
    11. 13. Market Opportunity <ul><li>Overall construction contracts in the projected amount of $100 billion (US). </li></ul><ul><li>Construction Management opportunities for our company in the range of billions of those funds. </li></ul>
    12. 15. Competition <ul><li>Design-Build Contractors already working in Iraq </li></ul><ul><li>Parsons Delaware </li></ul><ul><li>Lucent Technologies </li></ul><ul><li>Washington International </li></ul><ul><li>Perini </li></ul><ul><li>FluorAMEC </li></ul>
    13. 16. SWOT Analysis <ul><li>Strengths </li></ul><ul><ul><li>Existing need for service </li></ul></ul><ul><ul><li>US and international participation in rebuilding </li></ul></ul><ul><li>Weakness </li></ul><ul><ul><li>Instability of government </li></ul></ul><ul><ul><li>Stability of currency </li></ul></ul>
    14. 18. Business Objectives <ul><li>Identifying a need and satisfying that need. </li></ul><ul><li>Piggybacking and aligning with existing construction managements services. </li></ul><ul><li>Serving as a consulting firm </li></ul><ul><li>Gain of market share </li></ul>
    15. 19. Business Objectives <ul><li>Understand Export/Import regulations </li></ul><ul><li>Understand land ownership laws </li></ul><ul><li>Understand local resources procurement </li></ul><ul><li>Understand financing and entitlement processes </li></ul>
    16. 21. Strategic Thrust <ul><li>Align ourselves with proven business models </li></ul><ul><li>ID prospective projects </li></ul><ul><li>Relate projects to mission statements </li></ul><ul><li>Evaluate resources required for projects </li></ul>
    17. 22. Strategic Thrust <ul><li>Research owner </li></ul><ul><li>Determine if project is special operations or regular </li></ul><ul><li>Visit project site </li></ul><ul><li>Determine composition of project task force </li></ul><ul><li>ID specific project requirements </li></ul>
    18. 23. Strategic Thrust <ul><li>Develop project schedule </li></ul><ul><li>Formulate estimated costs of pre-construction services </li></ul><ul><li>Create proposal and presentation of same </li></ul><ul><li>Negotiate terms of contract </li></ul><ul><li>Perform project </li></ul><ul><li>Grow one project at a time </li></ul>
    19. 24. Human Resources Management <ul><li>Refine expatriate relocation systems </li></ul><ul><li>Understanding local culture </li></ul><ul><li>Varying combinations of global and local knowledge access and communication are crucial </li></ul>
    20. 26. Financial Risks <ul><li>Instability of government </li></ul><ul><li>Unknown factors related to business relationships </li></ul><ul><li>New financing </li></ul>
    21. 27. Pricing <ul><li>Based on competitive bidding process and profit margins </li></ul><ul><li>Require significant down payments </li></ul><ul><li>Self-financing </li></ul>
    22. 29. Major Issues to combat <ul><li>Time differences between home office and job site </li></ul><ul><li>Establishing technology networks </li></ul><ul><li>Cultural divide </li></ul><ul><li>Security issues </li></ul>
    23. 30. Key Distribution Roles <ul><li>Project manger </li></ul><ul><li>Operations manager </li></ul><ul><li>Marketing manager </li></ul><ul><li>Chief estimator </li></ul>
    24. 31. Measurement of Results <ul><li>Bottom-line </li></ul><ul><li>New skill set creation </li></ul><ul><li>Relationships </li></ul><ul><li>Satisfaction </li></ul>
    25. 32. Conclusion and Q & A

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