Amcor's Entry Strategy in Mexico

This assignment outlines Amcor Limited's comprehensive business plan for entering the Mexican market. It details a cost reduction strategy encompassing production, distribution, manpower, materials, and marketing. The document emphasizes an implementation and control plan involving market research, supplier selection, production quality checks, competitor analysis, distributor partnerships, and employee recruitment. A robust communication plan is presented, focusing on promotional activities, budgeting, pricing strategies, product testing, feedback mechanisms, and performance reporting. Finally, the assignment addresses a contingency plan to navigate unforeseen business challenges in Mexico, including supplier diversification, production flexibility, workforce readiness, financial contingency measures, effective product launches, and an exit strategy.

Table explanation
Cost reduction strategy
The cost reduction strategy that Amcor Limited needs to follow to strengthen its profitability
in Mexican market must cover various areas including production, distribution, manpower,
material and marketing. It could enhance its technological base and enhance its production
capacity. The distributors with widest networking models must be preferred by the concern so
that the packing solutions can cover maximum Mexican market. Highly skilled labor force
must be employed. Innovative and smart marketing strategies need to be adopted by the
business so that it can make its mark in the foreign nation.
Implementation and Control Plan
The table highlights various elements that must be considered by Amcor Limited while
conducting its business operations in Mexico. It must take into account the external business
environment and devise its implementation and control strategy. In the initial six months, it
must conduct the market survey and research the findings to understand the competitive
intensity and market demand. Then it needs to design its production plan and select the best
available local manufacturers, and supplier. It must select them on the basis of their service
quality. Then the production sampling must be analyzed to check whether it meets pre-
determined packaging quality standards or not. The marketing plan must involve competitor
analysis so that their strategies can be observed. While devising the distribution plan, the
most suitable local distributors must be selected so that the packaging business can reach the
majority of the Mexican manufacturing firms. The concern needs to carefully focus on its
recruitment and training function so that within the specific period the labor can act as an
asset for the concern. The plan has been highlighted in tabular form.
Communication Plan
Operating in the international business environment can be a challenge if an effective
communication plan is not developed by a new business player. Amcor Limited must include
a solid promotional plan including event sponsorship planning, presence on social media, and
sales promotion activities so that the target audience can be aware of its business offerings.
Based on the plan, it must devise its budgeting model so that the financial requirements can
be planned as per the business model. The pricing of the packaging solution must be carefully
designed since it has a vital impact on business profits. It must be in accordance with the
Mexican market. Thorough testing must be conducted before launching the product so that
core business objectives are met. The consideration of feedback is crucial in the process since
it can be used to fix existing gaps. Ultimately the business performance must be highlighted
in the annual report of Amcor Limited. These aspects are covered in the below table.
Monitoring of action plan
The effective monitoring of business action plan is crucial while starting business operations
in the international environment. Amcor Limited must ascertain the macro-elements and
micro-elements in the setting so that it can devise and alter its business strategy accordingly.

Market survey and analysis forms the foundation of the process. The local manufacturers and
suppliers must be selected based on pre-determined business criteria. The sample must be
produced and analyzed carefully. The market analysis and competitor analysis is vital during
this stage to fix the business objective. Most effective local distributors must be selected and
the internal employee base must be carefully recruited based on their skills and expertise. The
marketing plan with effective communication model, budgeting structure, and pricing model
has been highlighted below. The pricing and feedback model must be carefully included in
the plan so that best business model can be designed. The table covers all the areas that
Amcor Limited must focus on to strengthen its action plan.
Contingency plan
A contingency plan has been designed to face uncertain business conditions in Mexico. The
business must have contact with a number of local manufacturers so that they can support the
business process during urgent situations. The thorough assessment of local suppliers is vital
so that the top three or five suppliers can be used by the packaging concern. The production
sampling process must be carefully done so that the best operation designs can be used by the
concern to strengthen business objective. Similarly, the local recruitment and training model
must be carefully structured so that the highly skilled workers can operator in the
organization. The business must be in touch with additional personnel so that they can come
in handy during business need. The budgeting plan must include all sorts of business
contingency so that it does not suffer due to the shortfall of cash. Effective product launching
strategies must be planned so that the business message can effectively reach the Mexican
market. An exit strategy needs to be designed so that business does not face resistance from
any party while leaving the foreign market. The table highlights Amcor Limited’s
contingency business model.