Martinez Construction Essay

1841 Words8 Pages
[pic] Academy of Economic Studies Bucharest Martinez Construction Company in Germany Table of contents: General presentation of the case study Identification of the problem, causes and negative effects Identification of the alternative solutions Selecting the optimal solution Implementing the optimal solution General presentation of the case study The case study presents the internationalization of a Spanish construction company. Martinez Construction Company was founded in 1940 in Eastern Spain and it was well known for its services of high quality, services that secured the company with growing profits for decades. However, due to the dependence of local economic conditions the number of contracts declined, situation in which the actual president, Diego Martinez had to take a decision regarding the future of the company. The continuity and the growth of the family business depended on expansion into the international markets. The first, natural choice seemed Germany. A lot of German tourists liked Spain and many German companies had businesses in Spain. He believed that after the collapse of the communism in Germany, the company could have access to new markets, cheaper labor and raw materials. In order to gain more information Martinez Construction representatives contacted banks, foreign consulates and other institutions. For advice they relied on accountants, lawyers and consultants. They took into account several options like a Greenfield operation, for which the company didn’t have enough resources, an alliance with a German company, but this would not allow them to impose as a serious competitor on German market and to buy an existing company from Treuhandanstalt, which was the best solution. After the collapse of the
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