-PRINCE YEAKEHSON NOVEMBER 30, 2013

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.

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).

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.

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”

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”.

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

http://www.strongthinking.com/step-back-evaluate-2014-marketing-plan/

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).

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).

http://www.usan.com/articles/workforce-management-wfm-software-is-critical-to-your-call-center-operation/#.UqoAUbCA05s

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.

http://www.hongkiat.com/blog/positive-working-environment/

http://www.omnitrans.org/blog/tag/hospitality-lane-construction-san-bernardino/

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.

http://news.mitrefinch.co.uk/article.aspx?art_id=801533603

http://www.sunnewsnetwork.ca/sunnews/politics/archives/2013/09/20130912-145856.html

http://worldlinksgpa.com/training/train2.php

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.

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.

http://project-management.com/why-you-should-do-a-swot-analysis-for-project-management/

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).

http://www.yifancrusher.com/gallary/

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.

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.

SKS7000 (2011, p. 1197). Executive Concepts in Business Strategy. Pearson Learning Solutions

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).

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.

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.

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).

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.

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.

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

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.

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.

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.

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.

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.

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 life-

work 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.

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).

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.

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.

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THANKS!