XYZ Construction, Inc. and Asian Business Expansion

XYZ Construction, Inc. and Asian Business Expansion

Length: 994 words (2.8 double-spaced pages)

Rating: Excellent

Open Document

Essay Preview

More ↓
When investigating the possibility of doing business in Asia the owners of XYZ Construction Inc. must look at both the social and ethical issues that might arise along the way. The moral challenge for businesses in the United States it hard enough when balancing profit interests against the needs of workers, customers, governments and special interest groups. The moral challenge is even more severe for multinational companies who need to live up to moral potentials both in the US and in host foreign countries. In developed countries, the moral prospects of the host country are as stringent as in the US. With third world host countries, though, the moral expectations are frequently more lax and multinationals are enticed to lower their standards when circumstances allow (SKS 7000-Executive Concepts in Business Strategy, 2011).
Australia, Singapore, and India all have corporate governance regulatory systems that are based on corporation legislation that presents for mandatory minimum standards dealing with matters such as directors' duties, members' remedies, and shareholder rights at meetings, and default rules for company foundations. These obligatory rules may be compulsory by civil actions brought by injured parties and criminal proceedings brought by the respective regulators. These minimum obligatory requirements cannot successfully deal with issues relating to matters such as board role, structure, and make up. These purposeful matters are dealt with by codes of globally documented corporate governance best practice sanctioned by a variety of stock exchanges and directed at listed companies. This comprises an appearance of self-regulation because it is not compulsory for companies to follow the best practice principles. The universal approach is to necessitate listed companies to reveal in their annual reports the corporate governance practices they have agreed to throughout the relevant year. The listing rules set out comprehensive endorsed practices, and companies are required to state the degree to which they have taken on these practices. Those companies that go away from the suggested practices are required to make clear why they have done so (Kimber & Lipton, 2005).
The underlying principle behind this approach is to make sure that the market is knowledgeable about a company's corporate governance practices. At the same time, there is also acknowledgment that suitable practice may differ from company to company. In particular, smaller listed companies frequently find it hard to meet the terms of requirements such as foundation of several board committees where they have comparatively small boards (Kimber & Lipton, 2005).

How to Cite this Page

MLA Citation:
"XYZ Construction, Inc. and Asian Business Expansion." 123HelpMe.com. 04 Apr 2020
    <https://www.123helpme.com/view.asp?id=223188>.

Need Writing Help?

Get feedback on grammar, clarity, concision and logic instantly.

Check your paper »

Analysis Of Xyz Construction Inc. Essay

- XYZ Construction Inc. is headquartered in Denver, Colorado; the company has 16 field offices spread throughout 11 States. There are 2,300 year round employees with a surge of 4,500 employees during the peak construction periods. XYZ Construction Inc. began in the late 1950’s as a privately owned family business. Recently, the family would like to move the company into the public sector within a 12 month period. XYZ Construction, Inc. performs horizontal construction with specialties in: Roads Bridges Airfields (Klinger, 2012)....   [tags: Ethics, Business ethics, Ethical code]

Research Papers
1577 words (4.5 pages)

Essay on Business Ethics and the Global Dimensions of Business

- Business Ethics and the Global Dimensions of Business This inclusive analysis was developed after an initial consultation with the C.E.O. of XYZ Construction, Inc. where the implications of expanding the construction company into Asia were discussed. The issues to be examined are the varied aspects of implementing a global business expansion. Time wise there is market potential for this opportune endeavor. However there are potential difficulties and risk that need to be considered before an international expansion is implemented....   [tags: Business Ethics ]

Research Papers
1404 words (4 pages)

Legal Environment of Business: Business Environment for XYZ Construction Inc.

- ... Both federal and state governments have enacted statutes that regulate contracts. Many of these laws are intended to protect consumers, debtors, and others from unfair contracts. Today, under this modern law of contracts, there is substantial government regulation of the right to contract. Examples: Federal labor laws protect the rights of workers to unionize and negotiate collective bargaining agreements with their employers. Consumer protection laws protect consumers from certain unscrupulous contracts....   [tags: horizontal construction industry, employees]

Research Papers
1811 words (5.2 pages)

Asian Business Essay examples

- 1. “To get rich and glorious” quote was said by Deng Xiao Ping, member of the communist party in China. They got richer, faster than any people ever had. The economy is now 10 times larger than it was then; it grew 300% just in the last 10 years. Incomes rose every year. People in China are becoming millionaires there than anywhere else on earth (Time Asia.) 2. Techno-nationalism is expressive and strict categories for understanding the impact of technology on society and vice versa. They reflect the fundamental assumptions made by analysts of the place of technology in the world, and denote ideologies, rather than technological policies or realities....   [tags: Asian Business]

Research Papers
1838 words (5.3 pages)

The IPO of XYZ Construction Inc. Essay

- XYZ Construction Inc. like many other organizations has outgrown its geographical boundaries and as a result the leadership team plans on expanding its horizontal construction nationally and internationally. du Plessis (2009) suggested that globalization and internationalization challenges are now demanding that organizational managers fine-tune or draft new policies and procedures to stay competitive in the global markets. As such, the leadership within XYZ Construction Inc. has also decided to transition from a private to a public ownership construct and launch its initial public offering (IPO)....   [tags: Corporate Strategy]

Research Papers
1815 words (5.2 pages)

XYZ Construction Inc Essay

- This assignment requires the development of a marketing flyer plan for which outlines the key offerings at XYZ Construction INC. This flyer will be habituated to edify potential customers on the accommodations offered by the firm. A marketing plan can be simple; it just has to be consistent (Schulaka, 2011). XYZ Construction Inc. performs horizontal construction work, including roads, airfields, and bridges. The company’s headquarters is in Denver, Colorado, and has 16 field offices in 11 states....   [tags: development assignement, marketing]

Research Papers
1657 words (4.7 pages)

Topics that XYZ Construction, Inc. Should Engross Before Expanding Into the Global Market

- This paper will examine multiple topics that XYZ Construction, Incorporated should engross before expanding into the global market. In particular, the owners believe that Canada, Asia, and Mexico have niche markets for the company and are front-runners for market expansion. Furthermore, the owners believe that expansion into these markets will ultimately help increase their initial public offering (IPO) number. This paper will examine the issues present in the global market as it relates to ethics and social responsibility....   [tags: Business Analysis ]

Research Papers
2226 words (6.4 pages)

Review of Business Ethics and Global Business Assignment Essay

- Introduction Ethical aspects of businesses here in the United States have had many implications in recent years. From the Martha Stewart being found guilty for insider trading, to Bernie Madoff’s pyramid scandal, leaving many retirees working throughout their retirement because the man they trusted spent their hard earned money on a frivolous lifestyle filled with yachts and houses bigger than many of us have ever seen. Then there is Enron who left a path of destruction greater than hurricane Katrina....   [tags: martha stewart, enron, retirement]

Research Papers
1608 words (4.6 pages)

Construction In Construction And Construction Essay

- Introduction As we realize that Construction is the way toward developing a building or framework. Construction is a general term meaning the art and science to form objects, systems, or organizations and comes from Latin constructionem (from com- "together" and struere "to pile up") and Old French construction. Construction differs from manufacturing in that manufacturing typically involves mass production of similar items without designated purchaser, while construction typically takes place on location for a known client....   [tags: Construction, Steel frame, Civil engineering]

Research Papers
1694 words (4.8 pages)

Asian Immigration And Asian Immigrants Essay

- Asian immigrants have faced many obstacles transitioning to life in America. One major obstacle Asian immigrants came face to face with was receiving an education. Asians are known to place high value on learning and education, but many things stood in their way and hindered them from even receiving an education. Between Asian immigrants and Americans lie a language barrier, which is often seen as a set back. An example of this is Lac Su since he had to serve as a translator for his parents, which in turn affected his school work....   [tags: Asian American, United States, Philippines]

Research Papers
937 words (2.7 pages)


An ethic of corporate governance in Asia is seen by experts as being extensive. This extensive ethic symbolizes a mid position between a shareholder approach and a stakeholder approach to corporate governance. It is not a trade-off between the two approaches, but rather an amalgamation between shareholder and stakeholder interests. Part of the justification for the lesser importance of shareholder concerns is that numerous enterprises in Asia are either state-owned or small and medium enterprises where shareholder concerns are less distinguished. Relaxed external corporate governance by way of societal norms, practices and values are frequently more significant than the formal external corporate governance systems of laws and regulations. These societal norms, practices and values often appear in a relationship-based form of corporate governance. As a result internal corporate governance plays an important role in the sense that boards and managements of companies adhere to these societal norms in corporate decisions and actions. An additional reason for the significance of internal corporate governance is that corporate governance principles in Asia frequently take the form of voluntary corporate governance codes that are applied in companies in a self-regulatory and voluntary ways (Rossouw, 2009).
China, as the largest market and perhaps the most attractive market in Asia, is currently entering into global partnership with a wide range of foreign associates. When wanting to be one of these foreign associates is it important to look at the culturally based value systems that exist there. Culturally founded values systems are usually made up of four dimensions: power distance, individualism/collectivism, masculinity/femininity, and uncertainty avoidance. China and the United States differ greatly with regard to their economic systems, political systems, social values, and laws, in spite of the considerable changes that have occurred in China over the last few years. In terms of power distance, China is considered to be very centralized although it has shown some tendency toward decentralized power while the US is somewhat decentralized. Second, the US ranks first in individualism while China is low in individualism and leans more toward strong collectivism. Third, the US places a higher value than China on masculinity, which indicates that USA is medium masculinity while China is medium femininity. Fourth, China ranks higher in uncertainty avoidance than the US, which shows that the Chinese are moderately risk-avoiding while Americans are quite risk-taking. Last, the US has a short-term course planned while China has a long-term course planned for the future (Pan & Zhang, 2004).
It is very apparent that the values and ways of doing business are very different in Asia than they are here. Before deciding to expand their operations into Asia the owners of XYZ Construction Inc. must look at all of these things and decide if they will be able to alter their style of business to fit into this culture and environment. This is the big question that any business that is thinking of expanding into the global business world must consider before leaping head first into the global business world.





Return to 123HelpMe.com