Currie Road Construction
Currie Road Construction Ltd (A)
Executive Summary
Martin Cook, President of Currie Road Construction Ltd has to decide on expansion plan immediately due to anticipated stimulus spending in both Texas and BC, Canada. The company has market share of 2.7% in BC, Canada. Competition in BC is stiff and it is impossible to increase market share. On the other hand, competition is less in Houston, Texas and Currie Road Construction has higher probability of securing sizeable amount of road construction Houston, Texas.
Mr. Cook has proposed organization structure for Houston division under the leadership of Mr. Brad Carlyle. Brad Carlyle and Martin Cook had done business together in the past. Brad Carlyle has important contacts within both government and construction industry of Houston. Martin Cook is also confident about the leadership potential of Brad Carlyle.
Currie Road Construction Ltd should setup office in Houston, Texas because Texas Road department will be investing about $ 4.5 billion in road construction, competition is less as compared to the competition in BC, availability of fully integrated job costing/receivable/ledger cost reporting and accounting system, availability of equipment during winters of BC, Canada and due to high unemployment in Houston hiring of blue collar employees will be easy.
After setting up business in Houston, Martin Cook can expand its operation in the surrounding regions of the Houston and in other parts of US. This will help Currie Road construction to reduce its long term debts and interest payment which are due to the banks. Currie Road Construction have already decided to buy new equipment for Houston division in order to improve revenue margins and thus avoid breakdowns of the equipment.
Introduction
Martin Cook, President of Currie Road Construction Ltd wants to expand his business either by setting up division in Houston, Texas or expand current company’s profile in his home country.
Executive Summary
Martin Cook, President of Currie Road Construction Ltd has to decide on expansion plan immediately due to anticipated stimulus spending in both Texas and BC, Canada. The company has market share of 2.7% in BC, Canada. Competition in BC is stiff and it is impossible to increase market share. On the other hand, competition is less in Houston, Texas and Currie Road Construction has higher probability of securing sizeable amount of road construction Houston, Texas.
Mr. Cook has proposed organization structure for Houston division under the leadership of Mr. Brad Carlyle. Brad Carlyle and Martin Cook had done business together in the past. Brad Carlyle has important contacts within both government and construction industry of Houston. Martin Cook is also confident about the leadership potential of Brad Carlyle.
Currie Road Construction Ltd should setup office in Houston, Texas because Texas Road department will be investing about $ 4.5 billion in road construction, competition is less as compared to the competition in BC, availability of fully integrated job costing/receivable/ledger cost reporting and accounting system, availability of equipment during winters of BC, Canada and due to high unemployment in Houston hiring of blue collar employees will be easy.
After setting up business in Houston, Martin Cook can expand its operation in the surrounding regions of the Houston and in other parts of US. This will help Currie Road construction to reduce its long term debts and interest payment which are due to the banks. Currie Road Construction have already decided to buy new equipment for Houston division in order to improve revenue margins and thus avoid breakdowns of the equipment.
Introduction
Martin Cook, President of Currie Road Construction Ltd wants to expand his business either by setting up division in Houston, Texas or expand current company’s profile in his home country.