Martinez Construction

1975 Words8 Pages
MARTINEZ CONSTRUCTION COMPANY IN GERMANY Juan Sanchez glanced out the window of the Boeing jetliner and admired the countryside below. The overcast skies failed to dampen his enthusiasm for the challenges and opportunities he and his company now faced. Two generations of local services had done little to prepare Martinez Construction for the coming days. Nevertheless, Juan remained confident that once the spirit of cooperation and trust was established, the new German operation would be a success. Martinez Construction Company Martinez Construction is a well-established construction company in Eastern Spain. Founded in Barcelona in the mid-1940s, its reputation and quality of service ensured growing profits for decades. However, a…show more content…
There were hopes that many investors would take advantage of the new markets opening up. However, little thought was given to the immensity of the job. No guidelines were issued, which later led to charges of dubious deals, and limited funds were made available to run the agency. Therefore, any firm wishing to purchase an existing facility in East Germany had no choice in the matter – they had to deal with the THA. The primary job of the THA was to sell the companies and to match existing companies with buyers. However, this proved to be an almost impossible task because the THA had insufficient or no information about the financial positions of the companies it was supposed to sell. In some cases, it could not ascertain what companies were to be sold. The firms wishing to purchase properties through the THA were initially evaluated on the basis of financial soundness. Second, they were evaluated on potential employment opportunity. Next, they were measured according to the cost of restructuring to the buyer. The speed of the sale was, however, the most important issue to the THA. The sooner the THA finished its work, the sooner the economy would improve. Price was the main aspect of the sales negotiations. Other facets of the negotiations involved guaranteeing jobs for present employees and arranging for the upgrade and improvement of the companies. This meant the investment of a great deal of time and money by the buyer because many of the firms had fallen into
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