The Legal Environment of Business



The Legal Environment of Business

XYZ Construction Inc.

Intense competition in the local and international markets has led the companies to the conclusion that to survive and be successful in aggressive environments it is not enough to improve their operations and integrate their functions internally. The XYZ Construction Inc. are concerned about the economic and legal factors that could affect the organization, particularly as the company transitions in a few months from private to public ownership with their IPO. Following are the economic and legal factors for their horizontal construction company.

Economic Factors

The factor of the economy is so closely and strongly related to the smooth and profitable functioning of the facility management industry, but the worrisome thing about it is that this factor is out of the control of an organization providing facility management services. Business of the facility management industry is dependent on inflation, wealth, availability of credit and other macro-economic factors. The current recessionary period all over the globe has affected the spending on the development of buildings and infrastructure to a substantial scale. Due to economic recession there is a dearth of availability of jobs. In this situation, the industry of facility management appears as an opportunity. People need jobs and this industry needs people to serve so, if both serve for each other then it would create a positive impact (Ashworth, 2005).

The western construction market is booming due to the project needs in the developing and developed countries. The unique aspect of this industry creates collaboration among different cultures. This coordination and matrix structure not only bring people from various cultural backgrounds and beliefs but also create interpersonal and cultural conflicts among them. Therefore, for the effective continuation of the projects, the managers need to be sensitive about these potential problems which ...