CONSTRUCTO is having trouble with the compliance and overall performance with its Vietnamese host nation teams. Review the case document to recall the issues the management team is having in Vietnam. The way the Vietnam Division is set up might be contributing to these problems. Prepare a report for the COO of the company on recommended changes to the division's organizational design and controls.

First, analyze CONSTRUCTO Vietnam's organizational chart and prepare an improved structure that will enhance team control, communication, compliance, and performance.

Map the organizational chart for CONSTRUCTO's international operations based on the case briefing. Who reports to whom? How are the operations organized?

Identify the management issues or challenges reported in the case that might be a direct result or perhaps influenced by this organizational structure. Identify at least 2 management issues/problems presented in the case and explain their link to the organization's current structure.

Propose a new organizational chart for CONSTRUCTO Vietnam that better aligns the business unit's operations and explain why this new design is superior to the original - specifically in how it will address the problems identified in step #2 above - OR explain why CONSTRUCTO should keep its current organizational chart.

Next, examine CONSTRUCTO Vietnam's organizational controls.

Provide a brief summary of the host nation staff compliance and performance problems in your own words.

Describe your recommended approach to corrective action as largely an improvement of the business environment, communication of instructions, or closer tracking of performance. Why do you feel this type of control system implementation is likely to turn the situation around? NOTE: you may choose to approach the problem by selected more than one focus or solutions from multiple levels of control systems. Explain why this combination is the correct response to the issues presented in the case.

Review the management control systems described in the lesson and select three (3) that you believe will effectively improve team compliance and performance.

For each control system selected, provide a short description of how CONSTRUCTO's Vietnam management team should implement it. For example, if you selected the application of an external standard, what standard should be adopted and what steps are broadly needed to implement that standard. This will ensure your recommendations are actionable and carefully considered.