Business Operation in Mexico Assignment PDF
Added on 2021-02-05
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Strengths1) The Lease or Rental household appliances and furniture business will be more effective and sustainable in a country like Mexico as there is no proper unconventional credit system. 2) Coe’s is a known business entity in Mexico and also many of the employees and customersincluded are Mexican, hence there will be more outlook of expansion in Mexico. 3) In case of expansion to mexico, the language barrier will not be an issue as many of the employees for eg Aubrey knows spanish which is the national language of mexico so interacting with the employees wouldn’t hinder the business operations4) Coe’s payment policy gives an edge to expand in a third world country such as Mexico, where if in case the customers could not afford to pay the more rent, they can return those goods without any penalty imposed.5) Coe’s serves different varieties of products at different price and by expanding in a populated country like Mexico can be favourable as requirements are wide.Weakness1) Here Probably it was only Stan who was curious and intrigued about the decision to expand it to mexico whilst the CFO, Carl was relctant about it and this was due to failure of their venture at Puerto Rico in the past.2) The inventory holding cost of Coe’s will be high3) There is a substantial cost associated with trading borders in Mexico which is higher compared to South America and mediterrenian countries.4) Setting up a new business or expanding in a third world country like Mexico can be risky due to factors such as high crime rates, corruption and other decent factors such as low wages.Opportunities1) The Coe’s not only have an advantage of having almost no competitiors but also skim the cream of being a first mover in that territory.2) The labour and real estate costs in Mexico is much lower than any other country which helps it to achieve cost benefits3) The demand for lease furniture in Mexico is rising and also according to the mexican culture, any business which dealt with consumer goods and furniture are profitable creating an opportunity for Coe’s to explore
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