Reference no: EM133049142

Subject- Principles of Management Topic: Bechtel Company Assesses Risk in Deciding to help Rebuild Iraq

Scenario- Over a century old, Bechtel Company is one of the most premier construction companies in the world. Recently, Bechtel management made that decisions to pursue the foreign business opportunity to participate in the rebuilding of Iraq. Massive destruction existed in the country due to the 2003 war between the United States and its allies and Iraq. Because of the soundness of its proposal, Bechtel was selected through the Iraq Infrastructure Reconstruction program, a post-war U.S. agency, to help design and reconstruct much of Iraq's infrastructure. Bechtel's construction activities will include designing and building seaports, airports, and municipal water and sanitation services.

To begin its work, Bechtel will move many employees into Iraq. As many as 125 employees are expected to move into portable living quarters that are being specially constructed. The living quarters are being trucked in from Saudi, Arabia and Kuwait. From a temporary command center in the Sheraton Kuwait Hotel. Bechtel management began planning and implementing its projects.

In Bechtel's situation, management attached an acceptable probability of success to completing its projects in Iraq. This success, however, cannot be guaranteed, especially in a possible post-war environment of suspicion and resistance. In time. all will know if this decision by Bechtel management was sound.

Question- Review Bechtel Company Assesses Risk in Deciding to Help Rebuild Iraq. Assume that you were the manager in charge of making the decisions at Bechtel. List five factors in this situation that would have made it difficult to determine the outcome or success of performing business activities in Iraq. What role would these factors have played in your making the decision to go to Iraq? Based on your management instincts, do you think you would have decided to go to Iraq ? Why?