global business for executives - uci emba final deliverable
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CLARK CONSTRUCTION - GHANA EXPANSION PROJECT
CLARK CONSTRUCTION - GHANA EXPANSION PROJECT 2016
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
Maplecroft Index - Political Risk, Freedoms and Social Gains
Social gains
Polit
ical
free
dom
s
GHANA
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
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
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
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
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
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”
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
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?
Thank you!
ME DA SE | THANK YOU