We were given the task to create a business plan for a new pepper company in Grenada that would facilitate its expansion into the Mexican pepper sauce manufacturers' market.
2. COUNTRY ANALYSIS AND DETERMINATION
OF MARKET POTENTIAL
Do not bring assets and people into Mexico
unless they are essential.
According to the World Bank, Mexico ranks 12th
in the world in regards to GDP and is firmly
established.
The heart of most Mexican dishes constitutes
three main products, which includes corn,
beans and hot pepper (Chiles).
(Everyculture.com, 2013)
4. Pepper industry
It is significant element of the Mexican
Economy
Pepper is the number one spice in the world
with a volume of supplies around 400,000 tones
per year.
Chili pepper ranked fifth in commodity cash
receipt in New Mexico in 2006.
5. Political & Legal Environment
Policies introduced by the government can
impact legal transactions with which we
operate in.
Grenada, as a member of the commonwealth,
share one supreme court, known as the Eastern
Caribbean Supreme Court, which is headed by
a Chief justice, and directs the laws of each
member state.
6. Political and Legal Environment
Mexico’s government operates on three branches,
executive, Judicial and Legislative.
The head of the Executive branch is the President, who
is elected by direct popular votes, and he serves a sixyear term, but cannot be reelected.
Grenada’s government is a constitutional monarchy
with a Governor general representing the Queen.
Both Grenada and Mexico can be affected by the
political climate, and our company can face risk in
both countries.
7. Political and Legal Environment
The West Indian pepper Company is monitoring
how different political parties have different
policies to direct their local economies to fiscal
success.
Both Mexico and Grenada also experience
labor related taxes .
The legal system in both countries thrive to
protect businesses, employees and customers.
8. Social, Cultural & Behavioral
Environment
Enjoy social conversations.
Analysis of the social,
behavioral environment.
cultural
Cultural issues in management.
Lifestyle.
and
9. Mexican Etiquette
To ensure that there is minimum uncertainty in
our business dealing with our Mexican counter
part, translations will be done clearly and
precisely
At every meeting with Mexicans, we would
attempt to embrace each other.
Enjoy social conversations.
Dinning habits.
10. Mexican culture
Negotiations generally takes long.
Mexican intermediary.
“Time is not money” in Mexico.
"North Americans live to work, but Mexicans
work to live!" (Noruega.org.mx, 2013).
13. Sufficient Buying power
Mexico’s economic freedom score is 67.0,
making its economy the 50th freest in the 2013
index.
The Mexican economy has shown a moderate
degree of resilience in the face of a
challenging global economic environment.
14. Use of Technology
Internet use in Mexico has grown in recent
years from 2.7% in 2000 to an increase of 29.4 %
in 2010.
Convergence, Broadband and
Internet(skype,email, live- conferencing)
Online orders & online bank transfers.
Telecommunications Market & Mobile
Telecommunications Market. (whatsApp,BBM).
16. Market Entry
We will be exporting and contract
manufacturing for companies in Mexico.
Our company will export in large bulks to
“Valentina Company”, “HERDEZ COMPANY”
and “CHOLULA COMPANY”.
17. Market Entry
The market-entry technique that offers the
lowest level of risk and the least market control
is indirect export.
contract manufacturing; the firm’s product is
produced in the foreign market by local
producer under contract with the firm.
Transactions done through an intermediary
agent in Mexico.
22. References
Doingbusiness.org (2013). Ranking of economies - Doing Business - World
Bank Group. [online] Retrieved from:
http://www.doingbusiness.org/rankings/ [Accessed: 22 Nov 2013].
Geert-hofstede.com (2013). Mexico - Geert Hofstede. [online] Retrieved
from: http://geert-hofstede.com/mexico.html [Accessed: 22 Nov 2013].
Lubin, G. (2013). The Lewis Model Explains Every Culture In The World.
[online] Retrieved from: http://www.businessinsider.com/the-lewismodel-2013-9 [Accessed: 22 Nov 2013].