Managing Global Expansion - 1920 Words

This paper examines some of the economic and legal factors that can affect a company as it transitions from a private to a publically owned company. This paper, consisting of four sections; describes, discusses, and analyzes the major concerns that the owners of XYZ Construction, Incorporated have on expansion and economics. Section one covers the macroeconomic factors that influence the operations of the company. Section two focuses on the microeconomic factors that XYZ Construction, Inc. should consider in the domestic and global markets. Section three dissects the legal considerations that are relative to equipment leases and electronic contracts. Finally, section four will examine the employment and labor considerations that†¦show more content†¦Companies use factors of production such as labor, capital, natural resources, and entrepreneur-ship to produce products and services (Executive, 2011). This is important because the profit margin for XYZ Construction, Inc. will be determined by the income that remains after it pays wages (to its employees), interest (on loans), and rent (for facilities). If XYZ Construction, Inc. examines the wage portion of the profit margin calculation, they will see that the minimum wage has a significant impact on the company’s bottom-line. Ingram (2011) says that businesses that employee a large total of unskilled labor will experience significant increases in wage payouts. According to Ingram (2011) the minimum wage grew from five dollars and eighty-five cents to seven dollars and twenty-five cents between 2007 and 2009. XYZ Construction, Inc. will have to understand that increases like this are not negotiable and funding must be allocated in the event of a government increase in the minimum wage. It is important that companies understand this type of hiring practice because it leads to reduced profit margins and increased expenses (Ingram, 2011). Section Three - Legal Considerations for Equipment Leases and Electronic Contracts Equipment leases are a part of a billion-dollar industry, which covers personal property, consumer leases, automobiles, aircrafts, industrial machinery, and equipment (Executive, 2011). The aforementioned typesShow MoreRelatedManaging Global Expansion7295 Words   |  30 PagesManaging Global Expansion: A Conceptual Framework. Business Horizons | March 01, 2000 | Gupta, Anil K.; Govindarajan, Vijay | COPYRIGHT 1989 JAI Press, Inc. (Hide copyright information)Copyright [pic] There are at least five reasons why the need to become global has ceased to be a discretionary option and become a strategic imperative for virtually any medium-sized to large corporation. 1. The Growth Imperative. 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