The paper "Construction Company's Entry into a New Country's Construction Industry" is an outstanding example of a marketing assignment. The construction industry is being annoyed continuously by risks and frequently it has been showing poor outcomes. There are a large number of risk management techniques easy to get to assist in improving this, but generally, these are based on equipped study techniques developed in the 1960s, and for the most part, have unsuccessful to meet the needs of project managers. This research proposal ruses a common language for unfolding risks and other problem related to establishing a new company in a different culture.
Other issues regarding costs, loans, safety issues and some drawbacks are also taken into consideration. Introduction: Task 1:While setting up a new construction into an entirely different cultural set up requires financial aid. This financial assistance can be obtained through loans or borrowing. Long term Finance: A capital can be required for five to ten years in order to set up a new company. Particularly this type of loan is mainly issued for construction industries; therefore, the risks to the loaner are high due to the time period. Short term Finance: The construction company will need a short term capital to control the sudden cash flow problems.
The tangible substance needs to be bought, industrial labor to be employed, manpower and sub-contractors need to be given payment and similar payment to be received from the Employer (Howes & Tah, 2003). But loans are not easy to incur. Many of the banks are reluctant to lend long term to newly established companies. In many cases, they request the borrower to provide a proportion of finance from internal resources. Short Term Loans: Short term loans can easily be obtained from individuals, banks, and other financial institutions.
They are needed for the preparation of working capital, carry an official rate of interest upon the entire quantity of money and can not be recalled before the due date. The new firm can get short term loan are obtained from commercial banks (Howes & Tah, 2003). Task 2: safety features cannot be ignored at any cost. The construction risks should be carefully examined before starting a new company under the following categories: Technical Risks: A detailed blueprint of the construction company should be prepared. The site where a company is to be established should be carefully examined and assure that the place is suitable. Assure availability of materials, manpower and other sources. All kind of specifications should be mentioned without any ambiguity Logistical Risks Accessibility of assets, funds, materials, capital construction equipment including spare parts, fuel and labor. Accessibility of sufficient transportation facilities. Construction Risks The inconsistent ratio of the quantity and quality of resourceful nesses. Weather and seasonal difference should be kept in mind. Industrial relations of both countries. Financial Risks General and progressive increase in prices. Availability and fluctuation in foreign exchange. Delay in Payment. Returning of funds. Local taxes. Political Risks Controls on the presence and employment of exiled staff. Traditions and import constraints and functions. Hardships in casting away of plant and equipment. Continual and persistent demands on the use of local firms and agents.
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