The Macro Environment of Mexico and How to Staff the Operation

Chairman 

The Macro Environment of the Country 

Economic Environment 

Mexico is the fifteenth biggest economy in the globe and the second largest Latin American economy after Brazil (Baxter-Southworth, 2011). The Mexican economy continues to grow at an average yearly rate of growth of around 2.4 percent. Mexico is situated at around 230N and 1020W in the southern region of North America. The country is bounded towards the northern part by the U.S.A, towards the east by the Gulf of Mexico, towards the south and the west by the Pacific Ocean, and towards the south-east by the Caribbean Sea, Guatemala, and Belize. Mexico is also part of NAFTA, and it also has treaties with Japan and European Union. Mexico’s labor force is educated and inexpensive and has a large populace of 112 million (Baxter-Southworth, 2011). Mexico’s economy is stable, and inflation is low. The Mexican peso has strengthened over the years; it is currently 2.3 percent high relative to the U.S dollar. The Mexican peso is currently the best-performing main currency relative to the greenback. 

Legal Environment 

The Federal Republic of Mexico is made up of a Federal District, the Federal Government, and thirty-one state governments. Mexico’s Federal government is categorized into three primary branches: The judicial, legislative, and executive branches. The principal sources of law in Mexico are constitution, regulation, legislation, and custom (Gillespi & Hennessey, 2011). The Mexican Federal legislation is codified in five primary codes: The commercial code, civil code, criminal procedures code, criminal code, and civil procedures code. Mexico’s federal district and state civil codes are significantly similar to the federal civil code since its legal structure is found on civil law. 

Social-Cultural Environment 

A country’s social-cultural environment significantly influences supply and demand. Spanish is Mexico’s official language (Moreno & Ros, 2009). According to Moreno and Ros (2009), Mexico's socio-cultural environment places significant emphasis on relationships. In Mexico, a commercial agreement amid businesspersons often extends beyond the contract. Oral agreements should also be honored on an equal platform as written agreements. Respect and trust are intrinsic in a healthy business relationship. Mexicans tend to stand at significantly closer proximity than in the U.S. Mexicans are also more open to physical contact than Americans. In various business scenarios, hugging among women and men patting on colleagues' backs is common. Additionally, it is acceptable for men to kiss their counterparts on the cheek. Mexicans have a less strict perspective on time, and they place significant emphasis on family and religion. A proper business protocol ought to be observed during business interactions in Mexico. Mexicans place significant emphasis on the use of professional titles when addressing each other in a business setting. One should address one's business associates with their respective titles followed by their surname. 

Political environment 

Mexico is a federal republic established on presidential democracy. The President is the head of the country’s executive power. He heads the Government and State and is the Armed Force’s Supreme Commander. The Congress of the Union often assumes the country’s legislative power. The Congress of the Union is partitioned into two primary chambers: The Senate of the Republic and Chamber of Deputies (Moreno & Ros, 2009). Additionally, the country has a multi-party system. 

Demographic 

Mexico is the eleventh most populated nation globally with a populace of above 124 million individuals in 2017. Mexico is the most populated Spanish-speaking nation and the third most populated nation in the Americas after Brazil, and the U.S. Mexico city is the country’s most populous city with a populace of approximately 8.9 million (Gillepsi & Hennesey, 2011). Further, according to Gillepsi and Hennesey (2011), around fifty percent of the people reside in the fifty-five large metropolitan regions of the nation. Roughly 78.4 percent of the country's populace live in the urban areas, and 21.16 percent reside in rural areas. And lastly, the most significant technological reform in Mexico is the advancement in telecommunication systems. 

The Kind of Leadership would Work in this Country 

Participative leadership is the most effective form of leadership that the chairman will use in Mexico; this is a managerial style which invites employee inputs on all organizational decisions. Participatory leadership is associated with a significant level of acceptance with regards to the company’s decisions and policies. Under a participative form of leadership, employees readily accept the implemented policies and decisions which were reached through a consensus. Participative leadership has also been associated with significant increases in employee morale (Baxter-Southworth, 2011). The element of creativity is also fostered through participative leadership in the sense that this leadership style empowers a company’s workers to utilize their creativity to create more productive work procedures and enhance the company's efficiency. Participative leadership fosters an increased level of employee retention by increasing the degree of autonomy amid employees and the levels of job satisfaction. 

Vice-Chairman 

How to Staff the Operation in Mexico 

To adequately staff the operation, the Vice-Chairman will first initiate the workforce planning process, commonly referred to as human resource planning. An effective human resources planning procedure incorporates the assessment of the number of skilled personnel required to assume various vacant positions in the company, and the number of employees initially recruited by the organization. The second phase is the recruitment process; this is the procedure of searching for potential employees and motivating them to apply for vacancies in the company. The process will incorporate the evaluation of the various sources of skilled labor supply, their suitability, selecting the appropriate advertisement platforms, and inviting applications from potential candidates for different jobs in the organization. Thirdly, I will initiate the candidate selection phase. Selection is the procedure that involves the rejection of unsuitable candidates and the choice of suitable candidates for the advertised job positions. Fourthly, I will carefully place and induct the successful candidates. After completing the selection procedure, the selected candidates will be posted in their respective job positions. The placement process often goes hand-in-hand with the induction process. The induction process gives employees a general view of the company, allows employees to familiarize themselves with essential aspects of the business, and ensures that the employees receive full support for their constructive purposes (OECD, 2017). Lastly, I will initiate the training and development strategy; this is a systematic process of imparting technical skills and knowledge for particular jobs, and it allows employees to perform their respective job duties effectively. 

Selection of a Manager 

The initial process in selecting a manager for the business will involve discovering the need for a manager in the organization. Secondly, I will carry out a job analysis procedure by creating a comprehensive job description. Thirdly, I will attempt to attract potential candidates for the position by advertising the vacant managerial position in the organization through various advertisement platforms. Fourthly, the company's HR department will screen candidates by using the recruitment management systems. The recruitment management systems often screen employees by comparing the applicants' CV against the established job descriptions and employee specifications. Fifthly, the HR department will interview candidates using structured interviews. Other selection methods such as psychometric tests, and behavioral interviewing will be employed. Sixthly, the successful candidates will be selected and appointed appropriately. The appointment process will incorporate activities such as the selection of candidates, making verbal appointment offers, medical test analysis, sending letters of appointment to successful candidates, and the signing of the employment contract. The final stage is the induction and training phase (Baxter-Southworth, 2011). 

Secretary 

Opportunities and Strengths of Doing Business in Mexico 

One of the primary advantages of doing business in Mexico is the huge cost savings the nation provides to business. Mexico has a highly skilled and dependable human labor that is approximately eighty percent cheaper than the U.S labor costs. Additionally, companies located in Mexico have significant access to affordable modern infrastructure. Secondly, Mexico is located close to high-demand markets, and thus, manufacturers located in Mexico have the opportunity to export commodities at relatively low prices and with much ease (OECD, 2017). 

Additionally, locating the company in Mexico will provide significant access to a wide consumer pool. Thirdly, the demographics that define the Federal Republic of Mexico's workforce and society enhances the accessibility of labor for manufacturing companies. The Mexican populace has a median age of approximately twenty-six years compared to thirty-seven in the U.S and aggregate labor force of approximately forty-seven million individuals. Although labor in Mexico is significantly cheap, the economy is typified by a skilled and qualified workforce. Fourthly, Mexico has a diversified market. The country opened its borders to trade following the sanctioning of the NAFTA treaty, thereby, welcoming various businesses. Lastly, the access to the Mexican market is not that difficult due to the ease of entry; its strategic location also triggers numerous advantages of establishing a business in the region (OECD, 2017). 

Some of the Legal Issues to deal with as a Company in Mexico 

In Mexico, the process of registering property is an arduous and significantly lengthy task; this process may be double the period taken to register properties in OECD nations (twenty-two days). Additionally, securing the Zoning Certificate and a good standing certificate with the region's water service may also take a considerable amount of time. Secondly, the protection of investor property is still a controversial issue in Mexico. However, NAFTA has attempted to rectify the past problems associated with investor protection. Thirdly, Mexico's tax payment process is extremely tedious. The process may take over 240 business hours annually, albeit there are only six tax payments to be initiated. According to Financial Complexity Index carried out by TMF Group, Mexico ranked fifteenth overall in tax compliance and accounting complexities (Grillespi & Hennessey, 2011). 

Additionally, Mexico ranked first in bookkeeping complexity (approximately eighty-four percent). Fourthly, there are significant complexities encountered in the enforcement of contracts; it takes around three-hundred and fifty days to enforce a business contract. Moreover, there are thirty-eight procedures that ought to be followed systematically in contract enforcement. Fifthly, one is likely to experience significant difficulties in securing credit in the country compared to many developed countries in the world. Lastly, According to a study conducted by the World Bank, the country ranks ninety-second globally with regards to the ease of receiving electricity; this demonstrates the complexities involved in the process (OECD, 2017). The procedure for receiving electricity is an operation taxed with bureaucracy. Companies ought to submit their relevant applications, acquire certificates and proper inspections from the CFC before a contractor can initiate the installation process. 

Treasurer 

Management of conflict in Negotiations 

I would initiate a conflict resolution strategy to manage conflicts during negotiations effectively. The initial phase in the conflict resolution process the actual cause of the disagreement; this phase involves identifying the center of the conflict. The goal of this stage is to get both parties to consent upon the basis of the disagreement. The second phase involves establishing a common objective for both conflicting parties. During this stage, both parties often agree on the desired sequel of the conflict. The third phase involves discussing the approaches to be employed to meet the established goal; this involves aspects such as communicating, listening and brainstorming together. The fourth stage involves evaluating the barriers to achieving a common goal. During this phase, the two parties often identify the cause of the conflict and the hindrances in resolving the situation (Deutsch, Goleman, & Marcus, 2006). Comprehending the possible issues allows individuals to identify solutions and initiate plans to solve the issue proactively. The fifth stage involves agreeing on the most effective way to solve the conflict. The phase often commences with identifying sustainable solutions amid both parties. Each party involved in the conflict is then allocated a duty in upholding the suggested solution (Deutsch, Goleman, & Marcus, 2006). 

Five Stages of Negotiation and how to prepare for them at this International Level 

The five phases of the negotiation process are the planning and preparation phase, delineation of ground rules, justification and clarification, bargaining and problem-solving, and closure and execution phase. To effectively prepare for the phases of negotiation, I will gather sufficient information. One ought to learn adequately and comprehend about the issue at hand and determine the required information. Secondly, I will leverage various evaluation strategies. Assessing one’s leverage and his counterpart’s outset leverage is significant since there are numerous approaches one may implement to improve one's leverage or diminish one's counterpart’s leverage (Benoliel, 2014). Thirdly, I will critically assess and understand the people involved in the negotiation process. Familiarizing oneself with one’s counterparts in the negotiation process is critical. One needs to understand their objectives, responsibilities, and the issues they are likely to raise during the negotiation procedure will enhance one’s capacity to handle the situation effectively during the process. Fourthly, I will attempt to build a rapport with my counterparts during the preliminary stages, before the bargaining phase; this will allow me to ascertain my opponent's capacity to be cooperative. Fifthly, I will familiarize myself with my objectives before the bargaining process. The clarity of goals is critical because one needs to decide in advance elements one is willing to concede to one's counterpart and one's primary priorities. All justifications and arguments should be ready. Lastly, from my previous interactions, I will be able to anticipate the possible type of negotiation, decide on the approaches to be employed during the negotiation process and plan effectively (Benoliel, 2014). 

References 

Baxter-Southworth, H. (2011). Influence across boundaries: How to succeed in a global business environment (1st Ed.). Arnold, MD: Third Bridge. 

Benoliel, M. (2014 ). Negotiation excellence: Successful deal making (2nd Ed.). Hackensack, NJ: World Scientific. 

Deutsch, M., Coleman, P. T., & Marcus, E. C. (2006). The handbook of conflict resolution: Theory and practice . San Francisco, CA: Jossey-Bass. 

Gillespie, K., & Hennessey, H. D. (2011 ). Global marketing . Mason, OH: Cengage South-Western. 

Moreno-Brid, J. C., & Ros, J. (2009). Development and growth in the Mexican economy: A historical perspective . New York: Oxford University Press. 

O. E. C. D. (2017). OECD Economic Surveys . Paris OECD Publishing.