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Proposed Mexican Business Essay

A business plan is very important guide that directs the management of the business or organization towards achieving its goals. Analysis of the market in which a business is venturing is very essential. This gives a clear picture of the entire market that the business is getting into. This paper will look at the economic, demographic and socio-economic details of each major state in Mexico.

This paper will further go ahead to explain both the foreign and the foreign and the domestic banks that are operating in Mexico. This paper also includes detailed ideas about recruitment of employees in Mexico. Finally it gives extensive information about the American companies that are operating in Mexico.

Mexico is known to be a constitutional republic federally based in North America. It is bordered on the northern side by United States. The North Pacific Ocean borders this republic on the south and the western sides. Mexico is highly referred to as the United Mexico States. The Caribbean Sea is very visible on the southeast part of Mexico. It consists of many states which are thirty one in number. Mexico City is known to be one of the most populated cities in the world. (Crandall, 2004)

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Mexico as earlier on illustrated has got approximately thirty one states. They include Sonora, Baja California, Chihuahua, Coahuila, Nuevo Leon, Tomaulipas, Durango, Baja California Sur, Chiapas, Guerrero, Jalisco, Nayarit, SLP, Oaxaca, Campeche and Vera Cruz among others. These Mexican states are also divided into different municipalities. In the year 1900, the population in Mexico was approximately 13.6 million.

 The demographics of Mexican states are as follows. Michoacan state is known to have the lowest population growth. Quintana Roo has the highest population growth rate. These two states are the least populated. Baja California has Sur and Baja California has the highest migration rate. Below are the demographics by city and state.

Rank   Core City       State        Pop          Rank    Core City       State      Pop

1          Mexico City    DF       19,231,829      11        Queretaro        QT       918,100

2          Guadalajara     JA       4,095,853        12        Merida            YU      897,740

3          Monterrey       NL       3,664,331        13        Mexicali          BC       855,962

4          Puebla                         PB        2,109,049       14       Aguascalientes AC      805,666

5          Toluca             ME      1,610,786        15        Tampico          TM      803,196

6          Tijuana            BC       1,483,992        16        Culiacan          SI        793,730

7          Leon                GT       1,425,210       17        Cuernavaca     MO     787,556

8          Juarez              CH      1,313,338        18        Acapulco         GR      786,830

9          Torreon           CO      1,110,890        19        Chihuahua       CH      784,882

10        San Luis Potosi SL     957,753           20        Morelia           MI       735,624

The economy in this nation is firmly established. It is known to be the world’s 12th largest in line with its economy. This is according to GDP and PPP. This nation has an economy that is highly diversified. The infrastructure is quite developed in terms of telecommunications, airports, distribution of gas, railroads and seaports among other sectors. (Denizer, 1997)

The socio-economics data reveals that the population in this nation that is in extreme poverty has tremendously decreased from twenty four point one percent to approximately sixteen point nine percent. This is according to the World Bank. It is however very evident that there are huge disparities in the incomes of the poor and the wealthy in the nation.

There are also remarkable differences between the south and the northern areas of Mexico. These differences still exist amongst the urban and the rural areas. The contrasts are quite sharp in relation to human development and income levels. These issues still remain to be quite problematic in Mexico.

Poverty has been reduced in Mexico through the increase in the middle class purchasing power. The inflation in Mexico is as low as 3.3%. This has resulted in middle class people in this nation having a credit consumption that is quite high. There is great stability in the nation in terms of monetary terms.

 Through remittances from citizens in Mexico, poverty has been greatly alleviated. The infrastructure in Mexico is quite developed and this makes it very easy to carry out business in this republic. This is in terms of the road network. Chiapas State in Mexico is very developed in terms of the infrastructure.

There are both foreign and domestic banks in Mexico. Research shows that Mexico allowed foreign banks to open up branches therein. This was made easy through foreign acquisitions of the various domestic banks in Mexico. It is very clear that foreign banks in Mexico are more profitable when compared to the domestic banks in Mexico.

 This shows that foreign banks have had positive impacts on the entire banking sector. Citibank is one of the foreign banks that started operating in Mexico in the year 1994. This bank is U.S based. This was through the North American Free Trade Agreement (NAFTA). (Houghton, 1999)

Other foreign banks that are operating in Mexico include Scotiabank, HSBC, Banco Santander and BBVA. Banco Santander is based in Spain, Scotiabank is in Canada, and HSBC is in U.K while BBVA is in Spain. Among the domestic banks include Banco de Azteca. The other prominent domestic bank that is operating in Mexico is called Barnote. It is highly known even among the locals for its excellent services.]

Recruitment is a very essential part of organizational management. This is due to the fact that this process enables an organization to get qualified professionals that are quite competent in carrying out the tasks assigned to them. Critical analysis of the entire business sector shows the way it carries out this important task.

Looking at most of the organizations in Mexico, they carry out recruitment process through advertising of the vacant posts. Many organizations advertise in their Company websites, they also place advertisements in newspapers and sometimes over the radio. The management clearly indicates the desired qualifications of potential employees. Interested candidates then send their particulars (these are the cover letter and C.V) to the organization either by post or by electronic media. The application letters and C.Vs are then analyzed and the qualified candidates are then short listed.

These are then communicated to such that they attend an oral or written interview depending on the organization. Some organizations use both methods. Some organizations carry out one and others two interviews with the potential candidates. Those who pass the interviews are either communicated to trough post or through telephone.

The qualified candidates are then incorporated into the organization where they go through training or induction in relation to their work or job profile. All these normally result in organizations having qualified employees. This process is carried out by the management team in organizations in Mexico without favoritism.

There are different American Companies that are operating in Mexico. Most of these Companies are very successful. Amongst the American Companies that are successfully operating in Mexico include Diners Club, Master Card and American Express Bank. These Companies are well known in the Mexican Republic and their profit margins are very high. Research shows that there are very many factors that have made American Companies operating in Mexico to be successful. (Houghton, 1999)

 One of the major factors that have made these Companies to be successful is the NAFTA initiative. Through this it has become very easy for the American based Companies to start up branches in Mexico. The management in these Companies is very sound. This is bearing in mind that these organizations have been in existence for some time.

There are various strategies that the American companies that are based in Mexico use. These strategies include marketing both through online and offline means. The online means that are highly used by these successful Companies include the use of internet advertising.

Before these organizations or Companies start up their branches in Mexico, they normally carry out adequate research. This is in relation to the competitor companies in the market and their prices. Through this they then strategize by carrying out product differentiation and this enables them to have a place in the market.

Among the strategies that that American Companies that are based in Mexico employ include PESTLE analysis and SWOT analysis. In the PESTLE analysis they consider the political, Economic, Social, Technical and legal factors that would affect the business. With this information at hand, the Companies succeed very easily.

Another strategy that is incorporated is ensuring that most of the employees in the Companies are citizens of Mexico. Through this, they find favor with the people and therefore market penetration becomes easy since the people identify with the organizations. The Companies are known to get involved in corporate social responsibilities in Mexico. (Robert, 2006)

This gives the Company better standing in the Mexican Republic and therefore enhances their overall success. Most of the American based Companies that are operating in Mexico normally use their manufactured products to test the market before they open up branches in Mexico. This becomes very easy for the Companies to gain more customers in the long run. (Krauze, 1998)

In conclusion, a business plan clearly gives a business the required guidelines. Mexico is a republic that is found in North America. There are approximately thirty one states in Mexico. The demographics of this nation reveal that the urban states are highly populated compared to the rural towns. The economy of Mexico is very stable and well established. In fact it is known to be the 12th wealthy nation worldwide. The socio-economics of this nation shows that there are high disparities between the rich and the poor.

The infrastructure on the other hand is very well developed. This is in terms of telecommunications, road network and information technology network. There are both domestic and foreign banks in Mexico. The foreign banks include Scotia bank, HSBC, Banco Santander and BBVA.

Domestic banks include Banco de Azteca and Barnote. Successful American Companies operating in Mexico include American Express, Diners Club and Master Card. They ensure that they carry out extensive marketing analysis before opening branches in Mexico. This enables them to succeed.


Crandall, R. (2004): Mexico’s Domestic Economy; Policy Options and Choices; Mexico’s Democracy at Work; New York; Lynne Reinner Publishers

Denizer, C. (1997): The Effects of Financial Liberalization and New Bank Entry on Market Structure and Competition in Turkey; New York; Melbourne Press

 Houghton, M. (1999): Mexico in Perspective; 3rd edition; New York; McGraw Hill

 Krauze, E. (1998): Mexico: Biography of Power; Modern Mexico; 1996- 2007; New York; Melbourne Press

Robert, C. (2006): Foreign Bank Entry; Experience; Implications for Developing Economies; New York; Free Press

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