global business for executives - uci emba final deliverable
TRANSCRIPT
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CLARK CONSTRUCTION - GHANA EXPANSION PROJECT
CLARK CONSTRUCTION - GHANA EXPANSION PROJECT 2016
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PROJECT SELECTION
Why this project?
Clark background – role as Construction Manager
Goal – maximize planned year-over-year growth
Primary Clients – US/Ghanaian Government and private corporations
Adaptation strategy
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Maplecroft Index - Political Risk, Freedoms and Social Gains
Social gains
Polit
ical
free
dom
s
GHANA
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WHY GHANA NOW?
Language – English speaking country
Stable democracy – since 1992 there have been six peaceful presidential transitions
International Interest – Ghana’s approval of a $600MM EXIM loan from the United States to help upgrade its infrastructure
Law – Ghana has a legal structure that upholds its contracts
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WHY GHANA NOW?
Growing Economy – expected to grow 6%
Construction Sector of Total GDP – currently at 12.8% and expected to grow to 14% by 2017
Growth Factor Causes – discovery of oil which is driving an increase in private investments and infrastructure throughout the country
Recently publicized infrastructure challenges that has made infrastructure and construction a politically charged issue
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FINANCE
Cost to Start – initial cash outlay $150,000 USD
Tax Rate – corporate tax rate at 25%
Currency Fluctuation – mitigate against currency fluctuations
Pay – expatriates paid in USD and obtain contracts in USD
Banking System – Government requires offshore and local accounts
Our Key To Success Will Be A Deep Cultural Understanding
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COUNTRY CULTURE
Former British colony – advanced pre-colonial society (Akan ethnic group)
Collectivism – communal-oriented society
Matrilineal Heritage – role of women in society and business
Compulsory Educational System – highest enrollment rate of children in Africa (95%) | University enrollment capacity of 300,000 spots
Human Relations – harmony and respect amongst ethnic groups| Result: educated and cooperative workforce
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CORPORATE CULTURE
Age & Hierarchy – Modify Clark’s young leadership approach (25-32 years old) to accommodate Ghana’s preference for management 40+ years of age
Safety – Clark’s primary core value | Example: OSHA strong US workforce enforcement vs. minimal enforcement in Ghana
Safety Costs & Benefits – Increased cost for Ghana (but less than US) | Opportunity to raise country standards and provide a lasting impact
Foreign Corrupt Practices Act – appoint a Construction Manager to oversee the hiring of consultants for all arms-length business dealings
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COMMUNICATION
Indirect communication – Clark Project Leads must encourage and elicit feedback
Relationship building – on ground 12-24 months in advance of project start
Honorific / Professional Titles – management titles carry significant weight and must be carefully considered
Never use the left hand
Never embarrass or show disrespect
“Feree Ne Animguasee Dee Fanyinam Owuo”
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Benevolent country, attentive and hospitable native populationWestern conveniences (e.g. sports, food, etc.)
Established Expat Community
Health Benefits – healthcare provided to both Ghanaians and expatriates
CONSIDERATIONS
Energy crisis— Provide generators
LIVING ENVIRONMENT
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International Interest – US policy interest (example of EXIM loan)Similar Legal System – contracts are enforcedConstruction Sector of Total GDP – currently at 12.8% and expected to grow to 14% by 2017Understanding of the cultural elements that are critical for success
Potential of helping “…cement Ghana’s position as one of the most dynamic economies in (the) sub-Saharan Africa.”
WHY GHANA NOW?
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Thank you!
ME DA SE | THANK YOU