East Timor Procurement Case

East Timor – Country Brief:

East Timor is one of the poorest countries in the Asia-Pacific region. The economic performance since independence has been fragile. The nation continues to face a range of long-term development challenges that will impact on the achievement of broad-based economic growth including labour force incapacity, weak public governance and inadequate infrastructure. Political instability has undermined Government efforts to promote private sector investment as a basis for long-term development. East Timor's economic challenges are compounded by profound infrastructure deficits, notably in the areas of transportation, telecommunication and electricity. Most projects are withstanding and challenge many problems as a result of politic disciplines environment and social life requirements.

Project Description:

The Sandford Company is one of the largest hotels and leisure chain in the world has been awarded one of his projects to the Freemantle Construction Company in Timor Country. The Sandford Company decided to sign the contract work with Freemantle Company which is leadership of the highly successful firm in construction. Based on contract of work, Freemantle has to work as partnership shareholder with Sandford Company. As the Sandford company business starts to look at a wide range of potential development, Freemantle Company tends to be on the conservative venture side as result of Timor situation as well as global economic downturn.

Strategy of project study:

Sandford Company has always looking for new investment opportunities and ways to expand their existing field of interests around the world. Despite of the happy reports announced of the merger between the two companies in this project, Freemantle feels in reality, the dominant partner "Sandford" and would probably have launched a takeover bid in market if Freemantle had not taken the initiative to approach them with the merger idea. In order to prevent unfit of work profession in Timor environment and keep the reputation of company, Freemantle entrepreneur has to approach the work environment in a competitive strategy and develop their domestic resources to challenge moving criteria of company to international work.

The effect of competitive strategy of entrepreneur in business plan is the most important factor in making decision. The strategic manager of Freemantle has to develop their competitive strategies based on available resources of organization. Achieving high performance strategy based on Kay (1993), each strategy must be supported with appropriate resources and understand the relations between strategies and internal resources.

The competitive analysis is a statement of the business strategy and the purpose of competitive analysis is to determine the strengths and weaknesses of environment