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Cold Cut Processing Equipment in Mexico: A Strategic Entry Report, 2000

Published by: Icon Group International, Inc.

Published: Oct. 11, 2000 - 141 Pages


Table of Contents


1 Introduction & Methodology
1.1 What does this report cover?
1.2 Evaluating Mexico
1.3 Latent Demand and Accessibility in Mexico

2 Cold Cut Processing Equipment
2.1 Latent Demand and Accessibility: Background
2.2 Latent Demand: Aspects of Interest
2.2.1 Market Profile
2.2.2 Statistical Data
2.2.3 Best Sales Prospects
2.3 Accessibility: The Structure of Competition
2.3.1 Marketing Strategy
2.3.2 Local Production
2.3.3 Third Country Imports
2.3.4 U.S. Presence
2.3.5 End-User Analysis
2.4 Accessibility: Key Factors
2.4.1 Import Climate
2.4.2 Distribution Practices
2.4.3 Financing
2.4.4 Trade Promotions Opportunities
2.5 Key contacts
2.5.1 Distributors of Food Processing and Packaging Equipment
2.5.2 Publications
2.5.3 Chambers, Associations and Other Organizations

3 The Economics Of Latent Demand In Mexico
3.1 Executive Summary
3.2 Economic Issues in Mexico
3.2.1 Economic Dynamics
3.2.2 Dynamic Markets
3.2.3 Government Intervention Risks
3.2.4 Trade Deficit Risks
3.2.5 Infrastructure Situation

4 Export Accessibility In Mexico
4.1 Executive Summary
4.2 Exporting to Mexico
4.2.1 Trade & Project Financing
4.2.2 Financing Availability
4.2.3 Advance Payment
4.2.4 Letters of Credit
4.2.5 Documentary Collections
4.2.6 Open Account
4.2.7 Standby Letters of Credit
4.2.8 Small Business Administration
4.2.9 Local Sources of Customer Financing
4.2.10 Commercial Banks
4.2.11 Development Banks
4.2.12 Pure Project Financing
4.2.13 Inter-American Development Bank
4.2.14 Tariffs and Fees
4.2.15 Licenses Required for Imports
4.2.16 Export Controls
4.2.17 Documentation
4.2.18 Local Standards
4.2.19 NOM Certification Requirements

5 Direct Investment Accessibility In Mexico
5.1 Executive Summary: Infrastructure
5.2 Executive Summary: Natural Resources
5.3 Executive Summary: Industry
5.4 Direct Investment in Mexico
5.4.1 Currency Conversion and Transfer Policies
5.4.2 Expropriation Risks
5.4.3 Dispute Settlement Risks
5.4.4 Fiscal Incentives
5.4.5 Incentives for Special Industries
5.4.6 Export Incentives
5.4.7 Private Ownership Risks
5.4.8 Protecting Property
5.4.9 Regulatory Corruption Risks
5.4.10 Capital Market Risks
5.4.11 Securities
5.4.12 Political Violence Risks
5.4.13 Corruption Risks
5.4.14 Key Bilateral Investment Agreements
5.4.15 The Local Labor Market
5.4.16 Foreign Trade Zone/Free Ports

6 Marketing & Distribution In Mexico
6.1 Executive Summary
6.2 Marketing and Distribution in Mexico
6.2.1 Distribution Channel Options
6.2.2 Franchising Activities
6.2.3 Pricing
6.2.4 Government Procurement
6.2.5 Legal Points
6.2.6 Direct Sales
6.2.7 Types of Business Incorporation
6.2.8 Advertising Options
6.2.9 Demographics
6.2.10 Central Region
6.2.11 Western Region
6.2.12 Northwestern Region
6.2.13 Sonora
6.2.14 Baja California Sur
6.2.15 Northeastern Region
6.2.16 Texas Border Region
6.2.17 Intellectual Property Risks

7 Human Resource Assessment In Mexico
7.1 Executive Summary
7.2 Human Resources in Mexico
7.2.1 Unionization in Mexico
7.2.2 Collective Bargaining in Mexico
7.2.3 Workweek and Minimum Wages in Mexico
7.2.4 Forced Labor in Mexico
7.2.5 Working Ages and Child Labor in Mexico

8 Political Risk Assessment In Mexico
8.1 Executive Summary: Government
8.2 Executive Summary: Military Organization
8.3 Democracy in Mexico
8.4 Political Issues in Mexico
8.4.1 Political System, Elections, Parties
8.4.2 Politics and the Business Environment

9 Legal Risk Assessment In Mexico
9.1 Executive Summary
9.2 Legal Issues in Mexico
9.2.1 Privacy, Search and Seizure
9.2.2 Trial Justice in Mexico
9.2.3 Excessive Punishment in Mexico

10 Cultural And Demographic Risks In Mexico
10.1 Executive Summary
10.2 Cultural Issues in Mexico
10.2.1 Racial, Ethnic and Discrimination Issues in Mexico
10.2.2 Women's Rights and Gender Issues in Mexico
10.2.3 Religion in Mexico
10.2.4 Fundamental Human Rights in Mexico

11 Historical Background
11.1 Business Travel
11.1.1 Language
11.1.2 Climate
11.1.3 Health
11.1.4 Communications
11.2 Local Business Customs
11.2.1 Security
11.2.2 Mexican Holidays

Abstract

This report puts executives and strategic planners on the fast track. The first chapter describes the study's methodology. The second chapter gives an overview of how to strategically access the market, mid-term forecasts of latent demand and accessibility benchmarks. The remaining nine chapters are not industry specific, but instead discuss economic fundamentals, marketing & distribution options, export and direct investment options, and full risk assessments (political, cultural, legal, human resources). Combined, the information provided in this market study is a "one-stop" shop for the strategic planner. Ample statistical benchmarks and comparative graphs are given.

Excerpt: The primary audience for this report is managers involved with the highest levels of the strategic planning process, and consultants who help their clients with this task. The user will not only benefit from the hundreds of hours that went into the methodology and its application, but also from its alternative perspective on strategic planning in Mexico. This report helps executives evaluate strategic investment and entry alternatives in Mexico. In order to evaluate Mexico, Icon Group International, Inc. draws on a methodology developed by Professor Philip Parker at INSEAD in Fontainebleau, France. The methodology decomposes a country's strategic potential along two key dimensions: (1) latent demand, and (2) accessibility. A country may have very high latent demand, yet have low accessibility, making it a less attractive market than many smaller potential countries having higher levels of accessibility. This report provides a strategic profile of Mexico along these lines. Throughout the discussion, literally hundreds of statistics on Mexico are benchmarked against regional and global averages. The reader can thus quickly understand where Mexico fits into the regional and global perspective. The report first investigates the economic fundamentals affecting Mexico. These fundamentals are the source for Mexico's latent demand. Then, the subsequent chapters detail Mexico's accessibility. This evaluation covers a number of entry alternatives, including export strategies, and local direct investment strategies. If a firm decides to have a local presence in Mexico, this requires a strategic understanding of local business conditions. The conditions investigated in this report include local marketing (advertising, distribution, pricing issues) and entry strategies (opening an office, joint venturing, etc.), as well as human resources management (labor laws, costs, regulations). Because local presence can increase exposure, the report next assesses a number of factors affecting business risks in Mexico (again, benchmarked against regional and global averages). These include: political risks, legal risks, cultural/demographic risks. Risks can only be evaluated within a historical context; history, alas, often repeats itself. The final chapters summarize Mexico's economic, political and social history. In doing so, the reader has a full appreciation of history's role in shaping Mexico's current potential.



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