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Comprehensive Strategic Knowledge

The owners of XYZ Construction, Inc. are concerned about the economic and legal
factors that could impact the organization, particularly as the company transitions from
being privately owned to public ownership with their IPO in a few months. They would
like you put develop a discussion for them that describes, discusses, and analyzes
essential economic and legal factors for their horizontal construction company.
Include comments on:
1. Macroeconomic factors that influence the operations of the company
2. Microeconomic considerations relative to the company
3. Legal considerations relative to equipment leases and econtracts
4. Employment and labor law influences as the company grows both domestically
and internationally

Solution Preview

Macroeconomic factors that influences the operations of XYZ Company:

As XYZ construction Inc transitions from being a privately held company to a public, there are a number of macroeconomic factors that would influence the operations of the horizontal construction company. Some of the macroeconomic factors that would impact the company include competitiveness in the industry, national recession or inflation, meeting financial qualifications set by various exchanges, meeting Security Exchange Commission (SEC) requirements, financial reporting issues, and the situation of the economy regarding IPOs from construction companies. The construction industry both globally and in the United States are very competitive with the industry though enjoying high income can be susceptible to high bankruptcy rates. The industry though composes of a large number of independent contractors and suppliers thereby making prices in the industry affordable (Thornton, 2011; Wasserman, 2011).

National recessions or inflation also can influence the operations of XYZ Construction Company as construction industry more often reacts to changes in the external economic pressures such as tight money. Factors such as inflation or changes in disposable income of prospective buyers may impact the demand for houses, or other heavy major construction works. Corporate governance requirements of exchange markets such as New York Stock Exchange (NYSE) and NASDAQ also influences the operations of the company towards its ...

Solution Summary

Comprehensive strategic knowledge is examined. The macroeconomics factors that influence the operations of the company is examined.

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