ASSIGNMENT ON COUNTRY

“MEXICO’’

PREPARED BY: MANSI, MAYUR, MEGHAL [MBA SEM 4]

INTRODUCTION:

Mexico officially known as the United Mexican States. It is a federal constitutional republic
in North America. It is bordered on the north by the United States.

Mexico is the fifth-largest country in the Americas by total area and the 14th largest
independent nation in the world.

Mexico is a federation comprising thirty-one states and a Federal District, the capital city.

After rapid economic, social and technological growth beginning in the 1990s, Mexico is
now both one of the world's largest economies and one of the fastest growing economies in
the world, with a stable growth rate of 7.6%.

Mexico is considered a newly industrialized country and an emerging power. It has the 13th
largest nominal GDP and the 11th largest by purchasing power parity.

Mexico boasts a long tradition in the arts, renowned cuisine, and culture, and it ranks fifth in
the world and first in the Americas on the list of UNESCO World Heritage Sites.

SWOT ANALYSIS:
Strengths:
Mexico City has a lot of qualities that makes it a leader in tourism.
Mexico City’s strengths include the cultural resources that it can offer to its tourist. For
example the opportunity to meet an ancient culture that has its own language (Nahuatl).
It also offers the availability of great museums like the Metropolitan Museum of Natural
History. This museum is the biggest attraction in Mexico city because it holds some of the
most valuable artifacts from ancient times.
Weaknesses:
Mexico City although is able to offer a lot of great cultural activities, it is not able to offer the
security that tourists are looking for.
Mexico has a high crime rate that not only scares the tourists but the locals too. Another issue
with Mexico City is its drug wars that are happening in the north of Mexico.
Another issue that has recently been brought out to the public is that a lot of the drug lords
are kidnapping people off the streets just to get money. This issue is of a big concern since it
has an impact on the tourism community that wants to go to Mexico.
Another issue that Mexico city faces is its lack of economic balance. This problem has been
going on for quite a while and now the middle class is almost gone meaning that the
difference is either between high class or low class therefore making it hard for tourists and
locals to find jobs and to deliver a service.

Opportunities:
Mexico City is able to deliver a lot of tourism activities because of its location. Mexico city
since its located right in the middle of all major tourist attractions, it has lots of opportunities
to create tours and activities for tourists that will help grow the economy.
Mexico since it has a lot of culture ranging form thousands of years ago till now is able to
offer a wide range of interests for different target markets.
Since México City is located within driving distances from major tourist attractions it can
deliver a well thought out plan that will enhance its cultural activities and its environmental
opportunities, therefore being able to deliver many options for all kinds of tourist ranging
from backpackers to honeymooners.

Threats:
Here the competitor has new, innovative substitute product or services.
There are new regulations and new trade barriers have increased.

CULTURAL FACTORS:

Mexico has changed rapidly during the 20th century. In many ways, contemporary
life in its cities has become similar to that in neighboring United States and Europe.

Mexican villagers follow the older way of life more than the city people do.

Language: Mexico is the most populous Spanish-speaking country in the world. The
overwhelming majority of Mexicans today speak Spanish; however, the government
recognizes 62 indigenous Amerindian languages as national languages.

Art: Mexico is known for its folk art traditions, mostly derived from the indigenous and
Spanish crafts. Certain artistic characteristics were repeated throughout the region, namely a
preference for angular, linear patterns, and three-dimensional ceramics. Notable handicrafts
include clay pottery, colorfully embroidered cotton garments, cotton or wool shawls and
outer garments, and colorful baskets and rugs are seen everywhere.

Architecture: With twenty-nine sites, Mexico has more sites on the UNESCO World
Heritage list than any other country in the Americas, most of which pertain to the country's
architectural history. Mesoamerican architecture in Mexico is best known for its public,
ceremonial and urban monumental buildings and structures, several of which are the largest
monuments in the world.

Literature: The literature of Mexico has its antecedents in the literatures of the indigenous
settlements of Mesoamerica.

National holidays: Municipal president giving the "grito" of "Viva Mexico" at the
commencement of Independence Day festivities in 2008.Mexicans celebrate their
independence from Spain on September 15, and other holidays with colorful festivals known
as "Fiestas".

Cuisine: Mexican cuisine is known for its blending of Indigenous and European cultures.
Traditionally the main Mexican ingredients consisted of maize, beans, chicken, pork,
beef, potatoes, tomatoes, peppers, chilies, Habenero peppers, Naga Jolokia peppers
(Ghost chili) (the hottest/spiciest pepper in the world), onions, nuts, avocados and
guavas. Popular beverages include water flavored with a variety of fruit juices.

Music: The foundation of Mexican music comes from its indigenous sounds and heritage.
The original inhabitants of the land, used drums, flutes, maracas, sea shells and voices
to make music and dances. This ancient music is still played in some parts of Mexico.
Mexican society enjoys a vast array of music genres, showing the diversity of Mexican
culture.

Cinema: The history of Mexican cinema dates to the beginning of the 20th century, when
several enthusiasts of the new medium documented historical events – most particularly
the Mexican Revolution. The Golden Age of Mexican cinemais the name given to the
period between 1935 and 1959 where the quality and economic success of the cinema
of Mexico reached its peak.

Sport: The traditional national sport of Mexico is Charreria, which consists of a series of
equestrian events. The national horse of Mexico, used in Charreria, is the Azteca.
Bullfighting, a tradition brought from Spain, is also popular. Mexico has the largest
venue for bullfighting in the world. Mexico is also known for its boxing tradition,
having produced world champions.
POPULATION DEMOGRAPHICS:

Population 112,322,757
Male population 54 858 298
Female population 57 464 459
Population growth 1.82%
Birth rate 19/1,000
Mortality rate 4.9/1,000
Infant mortality rate 18.1/1,000
Life expectancy 75.6 years

Mexico is the most populous Spanish-speaking country in the world. Throughout most of the
twentieth century Mexico's population was characterized by rapid growth.

Average annual population growth over the last five years was less than 1%; the demographic
transition is still in progress, populous country in Latin America.

Approximately 50% of the population lives in one of the 55 large metropolitan areas in the
country.

The following demographic statistics are from the CIA World Factbook, unless otherwise
indicated.

Age structure

0-14 years: 29.1% (male 16,544,223/female 15,861,141)

15-64 years: 64.6% (male 34,734,571/female 37,129,793)
65 years and over: 6.2% (male 3,130,518/female 3,811,543) (2010 est.)

Sex ratio

at birth: 1.05 male(s)/female

under 15 years: 1.04 male(s)/female
15-64 years: 0.94 male(s)/female
65 years and over: 0.82 male(s)/female
total population: 0.96 male(s)/female (2010 est.)

Literacy

Definition: age 15 and over can read and write total population: 86.1% male: 86.9% female:
85.3% (2005 Census)
MAIN RELIGIONS:

Mexico has no official religion, and the Constitution of 1917 imposed limitations on the
church.

The government does provide financial contributions to the church, and the church
participates in public education.

However, Christmas is a national holiday and every year during Easter and Christmas all
schools in Mexico, public and private, send their students on vacation.

Christianity: Roman Catholics are 89% of the total population, 47% percent of whom attend
church services weekly, one of the lowest of the developing world. In absolute terms,
Mexico has the world's second largest number of Catholics after Brazil.

OTHERS: Protestantism, Orthodoxy, Islam, Judaism, Buddhism.

POLITICAL AND LEGAL ENVIRONMENT:

President: Felipe Calderón (2006) [National Action Party]

Government: Federal republic

Political Parties: Since legislative and executive heads are elected, the concept of political
parties is very present in Mexico. Although there are several (more than 15) political parties,
the two front runners are the "PRI" and "PAN parties.

Government System:

The Federal government of Mexico and the governments of each of the states of Mexico
maintain and function with a division of power and authority on a three branch (sector)
system: Executive, Legislative and Judicial.

Executive:

The executive branch of the government is the administrative branch, which charged with the
administration of the government. The Federal level has a President and ministers of
government (also known as Secretaries of government). The President also has the
authority/responsibility of approving the laws passed by the congress (legislative)

Legislative:

The legislative branch of government is the law making branch, which is charged with the
review and determination of when and where laws are necessary. This branch receives
assistance from the Executive branch by its proposal of laws and at times by its rejection of
laws passed by the legislative branch.
The legislative body is composed of a chamber of deputies (similar to that of the House of
Representatives in the US) and a chamber of senators (similar to that of the senate in the US).
The proposals of law must pass both chambers before being brought to the President for his
ratification.

Judicial [Courts]:

There are Federal level courts and State level courts. The Federal level Courts resolve issues
foreseen under federal laws and the State level courts (for each state) resolve issues foreseen
under state level laws.

Laws:

The legal system is Mexico provides for Federal Laws and State laws. There is a Federal
Constitution and a state constitution for each of the states of Mexico. Laws and regulations
are created by: (1) decisions made in the legislative branch of government, by decrees of the
President and by jurisprudence created by the federal court, and (2) in the case of federal
legislation, by 5 consecutive decisions resolved in the same manner by the Supreme Court
regarding the same issue.

MULTINATIONAL CORPORATIONS:

Wal-Mart:

Industry Retailing
Products Discount Stores
Supercenters

Wal-Mart, the biggest corporation in the United States, is the biggest private employer in
Mexico. Wal-Mart's power is changing Mexico in the same way it changed the economic
landscape of the United States, and with the same formula: cut prices relentlessly, pump up
productivity, pay low wages, ban unions, give suppliers the tightest possible profit margins
and sell everything under the sun for less than the guy next door."

It came to this country in 1991 & doing more business (closing in on $11 billion a year) than
the entire tourism industry. Wal-Mart sells $6 billion worth of food a year, more than anyone
else in Mexico. In fact, it sells more of almost everything than almost anyone. Economists
say its price cuts actually drive down the inflation rate.

Its sales represent about 2 percent of Mexico's gross domestic product, almost the same as in
the United States. Analysts say it now controls almost 30 percent of all supermarket food
sales in Mexico and about 6 percent of all retail sales, also about the same as in the United
States.
Philips:

Industry Electronics

Products electronics, domestic, lighting,

medical, medical technology

Philips also used to sell major household appliances (white goods) under the name Philips.
After selling the Major Domestic Appliances division to Whirlpool Corporation it changed
via Philips Whirlpool and Whirlpool Philips to Whirlpool only. Whirlpool bought a 53%
stake in Philips' major appliance operations to form Whirlpool International.

Philips Mexicana SA de CV corporate office is based in Mexico City.

Philips Mexicana is just one outpost in the Royal Philips Electronics Empire. Philips
Mexicana represents the manufacturing, import and export, and distribution operations of
Royal Philips in Mexico. Operating through about a dozen plants in the country, it makes
components and products specializing in consumer electronics, small appliances, lighting
equipment, and electronic medical equipment There are several manufacturing plants in
Mexico.

Philips Domestic Appliances used to be manufactured in a large factory in Industrial Vallejo

sector of Mexico City but was closed in 2003–2004.

Bacardi & company ltd:

Products Rum, Vodka, Gin, Whiskey,

Tequila

Bacardi had architects Ludwig Mies Van Der Rohe and Felix Candela design office buildings
and a bottling plant for them in Mexico City during the 1950s. The building complex was
added to the tentative list of UNESCO's World Heritage Site list on 20 November 2001.

Patron Spirits has switched distribution of its products in Mexico to Bacardi. Patron, which
had previously handled distribution in Mexico itself, will now focus on high-end restaurants,
bars, clubs, hotels and premium retail locations in Mexico's key markets
Taco bell:

Industry Fast Food Products Tacos, burritos, and other Tex-Mex

cuisine-related fast food

Taco Bell is an American restaurant chain based in Irvine, California. A subsidiary of Yum!
Brands, Inc., it specializes in Mexican-style food and quick service.

Taco Bell serves tacos, burritos, quesadillas, nachos, other specialty items, and a variety of
"Value Menu" items.
Taco Bell has attempted to enter the Mexican market twice. After a highly-publicized launch
in Mexico City in 1992, all the restaurants were closed two years later. In September 2007,
Taco Bell returned to Monterrey, this time promoting itself as selling American food, but
closed in January 2010 due to low patronage.

RECRUITMENT POLICY OF MNCS:

Job openings are posted in the City Hall and are usually advertised in the local newspapers.
All jobseekers are required to apply separately for each post and they need to specify the
position or the post clearly.

Equal opportunity must be given to all and the employer must not discriminate on the basis
of age, sex, national origin, race, disability etc. Job applications can be picked up from City
Hall. They are available from Monday-Friday at 8.00am to 5.00 pm.

Other than this, the candidates must be fluent in English and Spanish. Signing of a contract is
a must between the employer and the employee.

**Termination Policies:

Employment can be terminated due to end of contractual period, long days of absence
without notice or valid reason, negligence or misconduct in office etc. A prior notice should
be given to the employees but no specific time limit is specified for the notice. If the worker
does not accept the notice, the employer must inform the Conciliation and Arbitration board
within 5 days and they will then take action. If the employer dismisses the employee, in
certain cases he is entitled to get compensation.