1. -PRINCE YEAKEHSON
NOVEMBER 30, 2013

2. 
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Business integration and evaluation are managerial leadership roles played by higher level management to
ensure that priority objectives are well planned, implemented and result matched against the organizational
short and long time goals. These can not be done in the absent of middle level managers and employees
involvement . Their inputs are vital to the smooth operation of the organization (Albacete-Sáez, C.A, et al,
2011). In other words, resources must be employed in line with the organizational strategic objectives ,
monitored and outcomes evaluated to meet goals of the company.
Given that the XYZ Construction Inc. is completely readied to diversify in the areas of horizontal and
vertical constructions contract works and expand globally, this paper is meant to provide the final strategic
direction for this initial public offering (IPO). In other words, this paper will endeavor to delve into the
natty-gritty of the follow issues :
a) Marketing
b) Workforce and Operational Management
c) Organizational Structure
d) International Operations
e) Financial and Accounting Management
f) Compliance and Legal Considerations
g) Internal Control and Evaluation
h) Information Technology
i) Leadership
Conclusion and references will follow next.

3. 
Marketing is a marriage between “local and international
strategies” which analyzes the elementary concept of
“planning, implementing and evaluating” the methods
designed to pull consumers toward a product or service
Svensson, G.,( 2002).

4. 
Marketing, especially service marketing for a company like the XYZ
construction Inc. involves establishing global subsidiaries or branches and
involving partners with like minds and maintaining a culture of identical
construction style or design. Zeithaml, V. A.; et al (1985) defined service
marketing as giving a reduced price to clients or the consuming public.
They opined that , service is not a physical commodity that can get rotten
or depreciated. Service is an abstract commodity whose best means of
marketing is given a consumer a reduced price as no amount of publicity
can drive consumers without offering a reasonable or reduced price.

5. 
According to Abrhiem, T. H. (2012),a well-planned strategy for marketing
can put a firm in a better position ahead of its rivals. One marketing
strategy he suggested is dividing the market into areas of attention
(segments- See pictorial on the right). The strategy for marketing must
focus on customer needs. Distribution means or channels and target
customers must be part of the process of a strategic plan. Marketing is a
firm’s strategic approach to meet market demand and it must be in line with
the overall organizational “defined mission”

6. Marketing plan must be characterized by defined focus to
enhance smooth implementation. Kinard & Capella (2006)
defined
marketing as meeting customer satisfaction and
building a well lasting relationship with consumers; consumers
are likely to recommend service providers and this chain is
referred to as marketing. Therefore marketing plan must be
tied
to
consumers’
“preferences,
perceptions
and
expectations”.

7. 
In this regard and to conclude, the management of the XYZ Construction
Inc. needs to make the following outline when preparing a marketing plan:
1. what the firm hopes to achieve, 2. how the firm can achieve that which it
wants to achieve, 2. what group of consumers it wishes to target and how
to target them, 3. How to compete and to gain competitive advantage; 4.
How to meet market demand or in other words what design expertise it has
or wants to market and how to hook consumers to it. 5. How to implement
and evaluate the plan which squarely fall in the managerial control decision
making (Jacobson, M. D., 2003).
http://www.aistrupconsulting.com/Images/BusinessPlan.jpg
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http://www.strongthinking.com/step-back-evaluate-2014-marketing-plan/

8. 
Employment of qualified and competent employees who are willing to do
the job will mean a lot to the organiztion.Service sectors should recruit
qualified workforce,; that is, persons who have requisite qualifications for
particular jobs and not just any persons who want a job. This will enable
employees to perform better because they got the job that matched their
skills. This will minimize employee turn over and leads to productivity. In
other words, recruitment process of workforce for service companies like the
XYZ Construction Inc. must focus on how employees will contribute
towards the growth of the organization and not liability on the company
(June, S, et al, 2013).

9. 
If employees are satisfied with management policies to be unbiased for
training, performance evaluation and reward, pay system, etc., team work will
surface ( as seen in the photographs on the right) and employees will develop
a sense of responsibility to push towards the goal of the organization. The
authors concluded that senior level managerial policy can have either a positive
or negative impact on employees and that can either lead to high or low
productivity. In short, management has the incredible power to turn the work
environment- a happy family life - where job security will give the workforce a
feel and a sense of ownership of the corporation (Malik, N.A et al, 2013).
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http://www.usan.com/articles/workforce-management-wfm-software-is-critical-to-your-call-center-operation/#.UqoAUbCA05s

10. 
Noor, A. N.M, et al (2013), asserted that the organizational environment in terms of
“culture, attitudes of employees, dedication of responsibilities/task to employees” by
middle managers, and management role in running a smooth atmosphere at the work
environment will increase productivity. Their research further revealed that management
must create a working environment where employees feel a part of or create a sense of
ownership and the job place as their second home. Further, they believed at today’s work
place, employees are of diverse background and management ability to recognize that
trigger effect to motivate and treat every employee equally, absence biasness or
favoritism, productivity will increase and absenteeism from work will reduce
considerably.
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http://www.hongkiat.com/blog/positive-working-environment/
http://www.omnitrans.org/blog/tag/hospitality-lane-construction-san-bernardino/

11. 
Therefore, I suggest that the XYZ construction Inc.
management ensures that hiring, pay system and human
capacity development criteria be the same for all employees
at the same grade levels irrespective of diverse background
to avoid strike actions that would delay productivity.
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http://news.mitrefinch.co.uk/article.aspx?art_id=801533603
http://www.sunnewsnetwork.ca/sunnews/politics/archives/2013/09/20130912-145856.html
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http://worldlinksgpa.com/training/train2.php

12. 
Organizational structure is defined as the process with which tasks are assigned to meet the
goals of the organization. Management needs to be flexible to accommodate new variables in
its leadership structure to meet its short and long time goals especially if the company should
go global (Huang, X ,2011). Huang also believe that share leadership is the learning curve
most organizations are pursing now and I think XYZ Construction Inc. can not be an
exception if it wants to get ahead of its rivals. The most important trend companies are taking
now is allowing the culture of a country to drive the change in the organization leadership
structure. In fact, the growing phenomena of modern technology has created a compelling
need for organization strategy to fit in this sphere by reassigning or recreating technological
functional tasks to be reflected in its leadership structure. Organization must accept the
changing reality of our time and adapt accordingly with these transformations.

13. 
The leadership must be flexible to align with the change and the modified
organizational structures must be filled with “competent workforce” to fully utilize
the emerging technology. In other words, the emerging technology must fit in the
organizational strategy. The organizational structure by its look must give a big
picture of the company’s strengths, weaknesses and its readiness to exploit
opportunities, and combat any threats (SWOT). This is known as SWOT Analysis.
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http://project-management.com/why-you-should-do-a-swot-analysis-for-project-management/

14. 
Emerging technology possesses a superior influence or power over the
company’s leadership structure .To implement the company strategy, the
organizational structure/ leadership must take in account the competitive
market and how it can outsmart its rivals, and that drive should determine
the kind of advanced technology to employ in the industry(P arthasarthy &
Sethi, 1992).
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http://www.yifancrusher.com/gallary/

15. 
Regarding international operation for XYZ Construction Inc. I can see a
huge learning curve. According to Elango & Pattnaik (2007), firms must first
learn to gain idea about international markets before transferring/ opening a
branch office or establishing a subsidiary there. Firms must recognize trade
barriers (antitrust laws) and national cultures of foreign nations as to their
likes and dislikes. Firms must initially enter a foreign market with “low
price” and to make inquiries about the rules and regulations governing such
markets and I think XYZ Construction Inc. needs to properly network
sufficiently before taken the first step.

16. 
Another issue of concern is, who should implement the organizational
strategy on the global market to achieve the level of international
presence or significance? Top level management should guide and
direct the processes of the implementations of the company strategies
thus observing the principles of flexibility to change the formula that
does not seem to work to achieve the goal of the company.
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SKS7000 (2011, p. 1197). Executive Concepts in Business Strategy. Pearson Learning Solutions

17. 
Also employing the requisite technology and having
competent workforce (managers and employees) can result
into success. The XYZ Company management must develop
the pressure and compete with resistance to gain
considerable “market share”. The operation should include
spending on “research and development” (Prasad, S., 2001).

18. 
Financial accounting is the recoding of all purchases, paying employees and preparing the
annual financial statement for the company. In contrast, management accounting focuses on
how to implement the plans of the organization, by planning the cost associated with those
activities for example: refurbishing or building an annex to the company facility and making
forecast decisions to make sure the plan fits in the annual budget (Cook, A.,1995). The extent to
which management is able to plan and prepare the budget to meet both short and long time goals
of the organization shows how knowledgeable and effective the management control system of
the organization would be.

19. 
In fact, there are regulatory requirements for compliance by both accountants here under
discussion. According to Alles & Datar, (2004), “Sarbanes-Oxley Act's section 404”
requires financial managers to make accurate financial reports . The research revealed that
this act came in to being because of the numerous financial misappropriations and misleading
reporting by big firms in the United States. So, Section 404 of the Sarbanes-Oxley Act sets
the conventional financial reporting standards to avoid any more future scandals in this arena.
The act compels top management to ensure that the principle of accounting- where asset
equals liability plus owners’ equity (A=L+OE) is adhere to. In other words, according to
them, the act reinforced the “generally accepted accounting principle (GAAP)”. This method
of reporting which is quick to point to errors, if the book fails to balance, will make financial
managers to be very meticulous with their recordings and reporting.

20. 
The approach also calls for independent auditors to audit the books of firms which is intended
to give accurate and credible financial positions of companies. The research also revealed that
incentives to executives be reported as earnings for tax purposes especially if they exceeded
certain amounts outline in IRS regulations. The authors assert that accounting is meant for
financial managers to be disciplined and financial statement is a graphic picture of that
discipline portrayed for the company on the books. The authors also mentioned another
accounting reporting method call the “International Financial Reporting Standards (IFRS)”
wildly use in the EU and other parts of the world. But they were however quick to point out
that one is not better than the other. What matters is the sincerity of the financial reporting
agent. Therefore , XYZ Construction Inc. must be cognizant of this regulation while going
ahead with its initial public offering (IPO).

21. 
There are lots of legal requirements and compliance issues out there besetting businesses and
XYZ Company needs to be in the know. One is, the “Foreign Corrupt Practices Act (FCPA)”. A
study conducted by McKenzie, John F. (2013), focus on difficulties businesses engaged in
exports and imports are faced with regarding compliance issue posed by the Foreign Corrupt
Practices Act (FCPA) and other international trade regulations. The FCPA forbids certain acts like
bribery and corruption. The author research revealed that although businesses are aware that the
FCPA exits, but prevailing conditions unfolding on the international/global markets regarding
transactions of goods and services are compelling violations of the provisions of the act. The
reasons are that most regulators at the international markets are paid little or nothing by their
governments and they sometimes become very adamant or make clearance issues difficult. Most
of them request for extra money in addition to the legal requirements before giving approval.
Although the author thinks the act is unreasonable in these cases, he warns businesses and
foreign officials engaged in international trade to take cognizant of the FCPA.

22. 
Another area of concern is labor issues. Kohl, J., et al (2004), in their research
work, they listed over 25 websites -links to State and Federal human resource
regulatory requirements regarding “compensation plan”, training resources,
recruitment procedures, what constitutes deliberate or illegal dismissal, how to
accommodate and maintain a diversity workforce, understanding what constitutes
legal hours and overtime wages, “gender equality and discrimination laws” and
guidance regarding how to adhere to these requirements/ statutes. The benefits for
employees and incentives for managers, observing labor union formations and
limitation and collective bargaining by the employees are regulated and these
websites are designed to provide sufficient training and guidance to HR personnel
regarding Federal and State statutes. The research also revealed a website that
provides guidance for health and safety regulations for employees (e.g. “The
Occupational Safety and Health Administration (OSHA)” website provides
guidance regulations for such issues). They listed several website providers to be
the sources for HR guidance in making hiring and firing decisions, wage rate
determinations, health and safety and labor union issues, etc. It s good read article
you must read.

23. 
http://www.mc.vanderbilt.edu/root/vumc.php?site=DCCI#

24. 
Regarding internal control and evaluation, the “Sarbanes-Oxley Act of
2002” is the guide to avoid fraud and risking the credibility of the company.
Orchard & Butterfield (2009) studied on the internal control of construction
company revealed the following “business circle to be cardinal focus for
financial managers and auditing firms to avoid falling short of the Act.

25. 
The “business circle” for attention include the following: 1. “The
Expenditure Cycle, 2. The Fixed Assets Cycle, 3. The Inventory
Management Cycle. 4. The Payroll and Personnel Cycle, 5. The
Billings Cycle, 6. The Treasury Cycle and 6. The Estimating, Job
Cost and Revenue Recognition Cycle”. The research revealed that
independent auditors need to set an objective evaluation standards
(OES) to be matched with the auditing company internal control
measures. The OES must be used as a benchmark to balance the
book by juxtaposing it with the hard facts on the auditing company’s
book.

26. 
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In other words, a standard should be set whereby account payable will
reflect that this equipment was received on account and if paid for, then
there must be a corresponding debit since a credit balance shows a liability
to its suppliers, etc. Each business circle is important or worth appropriate
recordings and must be recorded in line with section 404 of the “The
Sarbanes-Oxley Act of 2002”. Gupta, P. P. (2008) research revealed that
financial managers need to be custodians of people’s money “but not to
take people’s money to be theirs”. Risk assessment, monitoring and
evaluations are necessary to be incompliance with the Act. The Security
and Exchange Commission enforces the Sarbanes-Oxley Act of 2002.

27. 
We live in a dynamic global environment which is characterized by
emerging information technology. Managers
have to align the
“organization culture and strategy” to reap the best out of it. Organizations
need to employ a continued strategy aimed to gaining or getting ahead of
its rivals in the competitive global market (Spratt, T ,2007). According to
Shao & Shu., (2004), increase in output on our global market is caused by
these “information and computing technology”. They discovered that the
reason organizations within countries and workforces are improving fast
as jobs are getting easier and effective is due to IT.

28. 
To ensure high productivity, the XYZ Company must ensure that employees be
involved in any installation process of the technology and cross trainings or job
rotations must be a priority. This is intended to prevent indispensability of any
employees in the invent of turn over. The XYZ company must also ensure that
the vendors or suppliers are involved in the training process to ensure that the
technology installed , addresses or serves the objective for which it was purchased .
In view thereof, the XYZ Construction Company needs to set a standard to evaluate
resources it will spend on IT to ensure the investment was not a waste.

29. 
Leadership for organization which is sometimes referred to as quality
management
is the act of directing, monitoring and evaluating
responsibilities and results. According to Albacete-Sáez, et al , (2011), most
effective leadership derived from “quality management”. Their research
further revealed that most organizations have stood out tall due to 1. an
effective quality management to meet the demands of their clients or the
consuming public, 2. The ability of the manager to create- a family work lifework environment for all employees irrespective of diverse backgrounds, 3.
The ability of the managers to attract and recruit the right and competent
staff, and 4. The ability for management to employ the right technology and
motivate employees.

30. 
Management is to prevent failures of many corporate
undertakings through a well-designed “strategic quality
management” procedure like relating to middle level
managers to meet deadlines of priority actions. Top
management must employ organizational culture and
orientate all employees to follow. Management should be
creative and open to suggestions from middle level managers
and employees. Management must conduct periodic
evaluation of performance of the organization to recognize
strength, weaknesses, opportunities and threats (SWOT).

31. 
The photograph on the lower right demonstrates a leadership style
of most organizations while the photo graph on the lower left
demonstrates managerial leadership role which requires dedication
of responsibilities to middle level managers and other variables.
The pictorial in the middle below and the one on left below are task
oriented leadership styles, and these are the kinds of leadership
roles XYZ Company needs to employ for its expansion move. A
leader, as demonstrated in the middle pictorial, must be competent,
flexible, have courage, vision, innovative, patience, ethical, etc.

32. 
From the analyses above, I am sure the XYZ Construction Inc. is all set
with its expansion decision. But wait a minute; there is one more advice I
have for management. Management needs to plan well, implement well
and evaluate any resource spent. More to that , expansion should take a
different trend. Relationship marketing management, should be key to this
expansion. The diversification into vertical construction and leaping on the
global market must be characterized by some level of “merger or
acquisitions” of firms that can buttress its international expansion efforts
(Matejka, K, (1995). Another reminder is, management needs to recruit
competent and qualified diversity workforce and not to disregard legal
requirements that would jeopardize its organization longevity. In short,
management has to play a great penguin and pivotal leadership role to
ensure a sense of responsibility at the company.

33. 
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35. THANKS!