Currie Road Construction Case Analysis

2429 words 10 pages
Executive Summary
In December 2008, Martin Cook, president of Currie Road Construction Limited, a B.C. based firm, had to decide soon on the company’s expansion plan due to the anticipated economic stimulus spending in both B.C. and Texas in the coming year. The two primary alternatives are either to enter the U.S. construction industry, particularly the Texas market, or to continue the company operations within Canada.
Currie owns 2.7% of the B.C. market and due to fierce competition, it is extremely difficult to gain market share. On the other hand, Texas has a bigger market with less competition. Texas Department of Transportation is approving road construction projects that worth more than $4.5 billion. With Currie’s experience and
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with Costal Asphalt Limited integrated as well as a few other companies backward and forward integrated; the proper next step would be how to expand its business to achieve a greater return.
With the collapse of global credit and equity markets and the economic recession in 2008, the anticipated stimulus implementation in both Canada and US made it the most crucial point for Cook to decide the future of Currie. The following criteria need to be considered for selecting solutions to address the above-mentioned issues.
First is the resources requirement such as equipment, and managers who are experienced with the industry market and the labor market. Second is the market condition, such as market competition, anticipated infrastructure spending, and government support. Third is the potential profit returned – how big and how fast. Fourth is the opportunity for future growth and expansion. The last consideration is the potential risk associated with the solution.
There are a few potential alternative solutions to address the company’s issues.
Status Quo: Continue Running Currie within Canada
Currie is a profitable company with clear directions. Since Cook took over Currie, he has transformed the company in various areas. Currie now has a lean and effective management team with well-established operations. Currie also has new equipment and specialized technologies that make it a leader in the pavement maintenance market in B.C.. Moreover,