Case Description: You are employed by MA2NS, an affiliation of the Islamic Development Bank. https://www.isdb.org/
Your charges is to develop a country assessment for MA2NS Industries, a Saudi firm, who is looking at potentially building manufacturing facilities in country X: (select an underdeveloped African country). You have been tasked to research and write a country scan report. Include the following in the report.
1: Political and Economic Situation
1. Political
a) What is the political structure in the country, and what political risks would MA2NS experience if it chose to pursue technology projects.?
b) What mitigation strategies should MA2NS adopt to manage the risks identified in question 1a,
should it choose to enter the construction market in the country ?
2. Economic
a) What is the economic situation in the country and what economic risks would MA2NS assume if it chose to pursue projects?
b) What mitigation strategies should MA2NS adopt to manage the risks identified in question 2a,
should it choose to enter the construction market in each of these countries?
c) From a political and economic risk perspective, do you recommend MA2NS to pursue projects in the country? Why or why not?
2: Cultural Differences
1. What cultural differences exist when compared to the cultural practices in Saudi Arabia?
2. How the cultural differences identified in question 1 affect business practices in the country?
3. What strategies should MA2NS adopt to adapt its construction strategy and project management approach to conform to the cultural expectations?
4. What strategies should MA2NS adopt to ensure that expatriate project managers conform to the cultural expectations?
5. How will cultural behaviors influence the productivity of a local work force?
3: Planning & Design
1. What geographic factors affect the execution of construction projects Country X?
2. What is your assessment of the transportation infrastructure in Country X?
3. What is your assessment of the communications infrastructure in Country X?
4. What is your assessment of the utilities (water, power, sewer) infrastructure in Country X?
5. What is the development and design permitting process in Country X?
6. What is the availability of services (housing, international hospital & schools, cultural) to accommodate expatriate workers from the KSA in Country X?
4: Financial & Contracting Strategy
1. Business Entity
a. Can MA2NS operate open an office and operate a warehouse facility in the country? Summarize the process for a Saudi company in establishing and office? What risk or issues MA2NS may encounter and what are the alternatives?
b. Can MA2NS own land and a building in the country? What risks or issues MA2NS may encounter and what are the alternatives?
2. Contracts
a. What is the current design and construction market in the country?
b. What is the availability of experienced architects and designers in the country? Does the potential pool of design firms have international experience designing for a KSA firm? How are design firms typically contracted in the country?
c. What is the availability of experienced general contractors and subcontractors in the country? Does the potential pool of contractors have international experience constructing for a KSA firm? How are contractors typically contracted in the country?
d. What contracting strategy is typically employed in the country? (such as DBB, DB, EPC)
3. Financial
a. What is currency exchange rate risk for MA2NS in the country?
b. What are the country taxes and the percentage amount that would be applied to the design and construction costs of the project for the country?
c. If MA2NS was to contract and pay for construction through their KSA office in Saudi Riyal what are the financial risks?
d. If MA2NS was to contract and pay through their local in-country office in local currency what are the financial risks?
4. Business Strategy Recommendations
a. If the facility MA2NS was building was very unique to their operations based on a unique defines KSA manufacturing process, based on Questions 1, 2 and 3 what is the financial and contracting strategy would you recommend to MA2NS for this business case for the country?
b. If the facility MA2NS was building was a simple warehouse for parts and a local services office would your financial and contracting strategy differ from 4a? If so, what is you strategy for this business case?
5. Construction Risk & Opportunities
1. Labor
c. What is the availability of skilled construction labor?
d. How is the labor force hired for a construction project? If imported or transported from other regions within the country, are there any labor restrictions and housing issues?
e. Are there any labor work restrictions?
f. Are there productivity issues?
g. How are construction methods and schedule impacted by Labor issues?
2. Construction Equipment
a. What is the availability of construction equipment availability and the availability of repair parts?
b. Discuss how construction methods are impacted and discuss risks to MA2NS
3. Construction Building Materials
a. What is the availability of construction materials?
b. What restrictions, if any, are placed on the importation of construction building material. Discuss risk to MA2NS.
4. Quality. MA2NS quality expectations are extremely high and expect the building facilities to be commissioned and maintained to standards. What construction quality issues may be encountered in country X that MA2NS might encounter?
5. Safety. MA2NS safety expectations is an accident-free project.
c. What is the construction safety climate in the country compared to the KSA?
d. Are there any government laws, restriction, or government reporting of safety incidents
